European Medicines Agency (EMA) left feeling frustrated

21 Feb 2019

The court has decided in the landlord’s favour and rejected the European Medicines Agency’s argument that its Canary Wharf lease had been frustrated by Brexit. As previously discussed here, the EMA had argued that by being forced to relocate to an EU located HQ as a result of Brexit (Amsterdam being the lucky venue chosen), it could not perform the terms of the lease and the lease should therefore automatically cease. 

The EMA must therefore honour the terms of their lease. With the landlord stating in court that a decision against them would mean they immediately lost £264m, we can only imagine the celebrations at the landlord’s offices (and the anxious faces at the EMA). Unless the EMA can agree a surrender with the landlord, it must now find an assignee or sub-tenant willing to take on the property. Given that it had argued in court the building had been specifically designed for its purposes, this may prove to be a difficult task.

In truth this was a speculative argument raised by the EMA, frustration is a rarely used means of getting out of a lease or contractual obligation and for very good reason – parties have to go into a lease or contract in the expectation that its terms will be honoured and not terminated by external factors. 

With such a substantial liability on the line an appeal seems likely.

Further reading

IP in pole position in 2021

Blog
12/01/2021
Victoria Watt takes a look at a hat trick of car-related cases that concluded last autumn that place IP firmly in the headlights
Read more Read

Happy New Year for leasehold property owners

Blog, Legal Updates
07/01/2021
Lawrence Morley looks at government reforms that will make it easier and cheaper for leaseholders to buy  their homes
Read more Read

Mission accomplished! DMH Stallard completes charity trek to and from the North Pole in aid of St Catherine’s Hospice

Blog, News & PR
24/12/2020
DMH Stallard completes Christmas charity trek from the North Pole to St Catherine's and back, raising money for a fantastic cause.
Read more Read

(Supply) chain reaction

Blog, News & PR
23/12/2020
It’s no time to shy away from chasing debt when it’s your cashflow under pressure. Kelly Mills provides the focus.
Read more Read
  • Brighton Office

    1 Jubilee Street

    Brighton

    East Sussex

    BN1 1GE

  • Gatwick Office

    Griffin House

    135 High Street

    Crawley

    West Sussex

    RH10 1DQ

  • Guildford Office

    Wonersh House

    The Guildway

    Old Portsmouth Road

    Guildford

    Surrey

    GU3 1LR

  • Horsham Office

    Ridgeland House

    15 Carfax

    Horsham

    West Sussex

    RH12 1DY

  • London Office

    6 New Street Square

    New Fetter Lane

    London

    EC4A 3BF

  • Get in touch