Despite entertainment retailer HMV's share price taking a bit of a battering over the last twelve months the High Court offered it no sliver lining as Warren J refused to grant it permission to appeal against the arbitration award made by John Male QC in July 2010, in respect of the rent review for its former store in Friar Street, Reading which closed in February.
HMV claimed that the rent, which fell to be calculated as 57.69% of the notional value of hypothetical similar premises in the prime retail location of Broad Street, should be reduced on the basis of an assumption that the imaginary premises were, like its premises, deficient with regard to its fire escape provision.
However, the adjudicator backed the argument put forward by landlord Propinvest Friar Limited Partnership that the fire escape qualities of the hypothetical premises were to be identified by the terms of the lease, not the actual qualities of the Friar Street premises, which has only one fire escape.
The judge ruled: "This is a case where the parties had chosen to appoint a highly respected and knowledgeable arbitrator to decide a very narrow point in a much wider dispute. In those circumstances, the court would be reluctant to allow the matter to proceed in any event."
The court heard that HMV's rent for the premises is £191,500 pa, subject to review.
Photo by Beverly & Pack via Flickr.
Asking the court to overturn an arbirtators aware in general is an uphill battle in most cases.