The High Court has granted an interim injunction against the eviction of a commercial tenant from a warehouse. The case involving the tenant Design Features Limited was heard by Justice Humphreys.
The tenant had notified the landlord that it would be unable to meet its rent obligations under its lease this month as a result of the Covid-19 pandemic. Consequently, the landlord took steps to deny the tenant access to the warehouse. The tenant made an application on an ex parte basis seeking an injunction on the grounds that the denial of access amounted to an unlawful eviction in breach of its lease and was prohibited by the bar on evictions implemented by the Emergency Measures in the Public Interest (Covid-19) Act 2020.
This case brings some greater clarity to the effect of the Emergency Measures in the Public Interest (Covid-19) Act 2020 on commercial leases. It was believed that the objective of that Act was only to give certain reliefs to residential tenancies, however as noted in our earlier news update, a late amendment was introduced which prohibits the eviction of all tenancies which on a literal interpretation would extend to commercial leases. This High Court case would appear to accept that the literal wider interpretation should be adopted which is of welcome relief to commercial tenants.
There does still remain some uncertainty about the duration of this bar on evictions as the particular clause applies during the operation of the Emergency Measures in the Public Interest (Covid-19) Act 2020 and not solely during the emergency period (as that term is defined in the Act). That emergency period under the Act applies for an initial 3 month period. Arguably, therefore, this bar on the evictions of all tenancies (including commercial tenancies) will now continue potentially longer than that initial 3 month emergency period so long as that Act has not been revoked. It is unlikely that it was intended to introduce what is potentially such a far reaching interference with the enforcement of private leases. We await further clarity on whether an amendment will be introduced to shorten the duration of this interference.