Hotgroup Plc v Royal Bank of Scotland Plc [2010] EWHC 1241

Hotgroup was RBS’s tenant of office premises pursuant to a 10 year lease. The lease contained a break clause entitling Hotgroup to terminate at the end of year five. The notices provision in the lease provided that notices were required to be served on RBS’s named managing agent, as well as RBS itself. Hotgroup sought to exercise the break option. It served notice on RBS within the required timeframe but failed to serve on the managing agent until after the latest date for service of notice. RBS challenged the validity of the notice.  

The court agreed with RBS. The words of the notices provision clearly stated that any notice must also be served on the managing agent. The notice was accordingly invalid because it had not been served on the managing agent in time and the lease would continue.