Great Jackson Street Estates Limited v Manchester City Council
Decision date: 8 August 2023
Neutral citation: [2023] UKUT 189 (LC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
The lessee of 34 Great Jackson Street sought modification of eleven lease covenants under s.84(1) LPA 1925 to enable redevelopment into two residential towers. The Tribunal found no jurisdictional grounds: the covenants were not obsolete, the proposed residential use did not justify modification because the covenants secured substantial non-pecuniary development control, and modification would injure the landlord; it also declined to exercise discretion to intervene. The application was dismissed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
A covenant is not obsolete merely because neighbourhood use has changed if it still serves a useful purpose, including securing non-pecuniary control over development; in assessing "reasonable use" under ground (aa) the Tribunal evaluates the proposed land use against the development plan and recognises that practical deliverability and development control features of covenants can constitute substantial practical benefit to the landlord.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal criticised the applicant’s evidence as vague and inconsistent, noted that long-range valuation evidence (e.g. deferring values 60 years) is of limited utility, and observed a general reluctance to disrupt ongoing commercial negotiations between a local authority and a developer.