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Commercial Lease - no permission to run business

  • 29-12-2010 1:13am
    #1
    Registered Users, Registered Users 2 Posts: 26


    Well guys,
    if any of you can help with problem that just arised and is annoying!
    This year I signed 3y commercial lease for premises with clause what I can do and what kind of business I can run from there. Just to be sure I went to Planning Department in CoCo and received OK to run one of the options on my lease. Guess what! Shortly before Christmas my Landlord showed me a warning letter from CoCo that unauthorised development "may have been, is being or may be carried out" at my premises.
    I know! I run this business and I have it on my lease. I even got OK from CoCo so what the heck are they up to!?
    Went back to Planning CoCo and ask them what is going on, reply was short.
    NO PERMISION!
    Thing is, the very same business was ran on this address for last 3ys before me so why they just woke up now and realised that this is unauthorised developement and why for G sake people in Planning 1st said yes - continue to do so as the previous people!?

    Questions are...

    can I sue my Landlord and ask for breach of contract as there is stated that i can run this type of business?

    can I sue him for refund of any improvements I have made to premises (there was a lot)

    I have 3y business plan and lease can I sue him for money I could earn?

    OR WHAT CAN I DO!?

    Would be gratefull for any relevant info
    Thank You


Comments

  • Registered Users, Registered Users 2 Posts: 1,169 ✭✭✭dats_right


    I take it you didn't instruct a solicitor at the time of entering the lease? The solicitor would have advised you re planning matters prior to entering agreement. Anyway, even if you did not at the time you should speak to one now who can advise you on your options.

    I am not offering legal advice on your specific circumstances, more of a general observation really but, it is the tenant's responsibility to ensure that the appropriate planning permissions are in place in order to allow them carry out that particular type of business. The user clause in the lease does not mean that planning is in order for that type of user. Normally a prospective tenant would insist on sight of all planning permissions, notices, etc before entering the lease so that they could satisfy themselves that they will not be breaching planning laws by operating a premises with a particular type of user. If you did not check the planning position prior to entering the lease then that unfortunately is your problem and not the landlord's.

    Most leases of this sort will also have a clause whereby the tenant indemnifies the landlord in respect of any breaches of plannng etc. Failure to comply with an Enfircement Notice is a criminal offence and is liable for fines and/or imprisonment. Although it may be possible to apply for permission to the Council fo change of user at this stage. If granted the Council will probably withdraw their enforcement proceedings and you can trade happily from the premises, if not, then in addition tobeing unable to operate the premises as that user you will in all likelihood continue to be liable to pay rents and outgoings on the premises for the duration of the lease.


  • Registered Users, Registered Users 2 Posts: 26 Wshoku


    Sound dramatic for me but there is nothing I can do at the moment.

    Thanks for your reply and clear message.

    I appeal from WARNING LETTER in writing and made necessary arragements to talk to Planning Inspector in CoCo
    Hope worst case scenario wont happen and after meeting next week they will grant permission to run business. But how long does it takes to get such a paper!?
    There is also other option and I think I would be the best for me in case of Enforcement Notice. Simply I just stop paying rent and I will be forced to leave by landlord not by CoCo without fine etc.
    There is only one question I can't get answer. Why I received OK from CoCo when ask them before entering lease!!??

    Thank you again for advice.


  • Registered Users, Registered Users 2 Posts: 666 ✭✭✭pigeonbutler


    Wshoku wrote: »
    Sound dramatic for me but there is nothing I can do at the moment.

    Thanks for your reply and clear message.

    I appeal from WARNING LETTER in writing and made necessary arragements to talk to Planning Inspector in CoCo
    Hope worst case scenario wont happen and after meeting next week they will grant permission to run business. But how long does it takes to get such a paper!?
    There is also other option and I think I would be the best for me in case of Enforcement Notice. Simply I just stop paying rent and I will be forced to leave by landlord not by CoCo without fine etc.
    There is only one question I can't get answer. Why I received OK from CoCo when ask them before entering lease!!??

    Thank you again for advice.

    Did you get that correspondence from the Council in writing giving you the OK for your chosen type of development? If so you have may have an argument of "legitimate expectation". I'm not familiar with planning law though so seek legal advice (from a solicitor not some eejit on the internet like myself) :D.


  • Registered Users, Registered Users 2 Posts: 26 Wshoku


    Nothing in writing just empty words as I can see now!


  • Registered Users, Registered Users 2 Posts: 6,769 ✭✭✭nuac


    dats right is right. There are standard pre-lease enquiries which your solicitor would have made for you.

    You would only have an action against the landlord if you received misrepresentations in the replies.


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  • Registered Users, Registered Users 2 Posts: 26 Wshoku


    Yeah, sure misrepresentations was when he said I can run my business and to make me sure he enclosed such a business on my lease. I required to view documentation but he couldn't find it so I went to Planning etc.
    Lease was prepared and signed by letting agent and he also assured me there are several planning permissions including the one I was interested me.
    Is not his responsibility to check such a permission when asked to do so?


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