Hill Dickinson’s Real Estate Litigation team secures significant reduction of repair liability for national food retailer

For national food retailers, access to large warehouse facilities is essential to keeping shelves stocked and customers satisfied. Such retailers have extensive property portfolios across the country which need to be carefully managed. However, given many of these premises are rented, these retailers inevitably encounter challenges including disputes with landlords.

Our expert real estate team is one of the legal industry’s largest and most respected real estate practices. We offer both deep technical expertise and practical, straightforward legal advice to help resolve and mitigate landlord-tenant disputes efficiently.

Since 2005, we’ve been advising a leading national food retailer on a wide range of legal matters, including real estate. Our longstanding work has not only supported their strategic goals but also helped them to successfully avoid a multimillion-pound claim from the landlord of a rented warehouse, safeguarding financial risk.

Minimising financial damage

Our real estate practice has delivered a range of services to the client for over 20 years, developing a deeply trusted relationship that has evolved from close collaboration and successful outcomes. In one notable matter, the client faced a complex £2.8 million dilapidation claim from the landlord of one of the warehouses it rented.

At the end of its tenancy agreement, the landlord alleged that the property had been left in a state of disrepair, and therefore would need to undergo significant work to bring it back to a suitable condition. This claim posed a significant financial risk for the client.

In response, our real estate team moved quickly to understand the extent of the landlord’s claim and to devise a strategy with the client to understand which outcome was the most desirable and, therefore, which course of action we should take. We carefully analysed the circumstances, which provided a slightly unusual case due to the nature by which the warehouse was being occupied.

From here, we engaged a specialist team, including a barrister and a surveyor, to investigate all aspects of the case. Over the course of six months, this team worked closely to develop a robust defence.

A collaborative approach

Partnering with external experts, the barrister provided legal insight into the unique nature of the client’s occupation of the premises, while the surveyor delivered a detailed assessment of the property’s valuation and condition. Together with our legal team, they presented compelling evidence to the landlord, demonstrating that the claim was substantially overstated.

As a result of this coordinated effort, the claim was successfully reduced from £2.8 million to £80,000. The matter was resolved on this basis, achieving a highly positive outcome for the client and avoiding a sizable liability. The collaborative approach between our real estate team, the wider team engaged on the case and the client meant that everyone was closely aligned and able to achieve the client’s aspirations.