Lying tenant ordered to pay more than £90,000 after subletting commercial premises illegally
A tenant, who was found by a judge to have sublet commercial premises illegally and to have lied to his subtenant about his entitlement to do so has been ordered to pay more than £90,000 in compensation.
The case involved a commercial property in London, with the dispute arising between Mr Choi, the claimant, and Mr Park, the defendant, after Mr Choi entered into an agreement to rent the premises from Mr Park and undertook renovation work.
The pair were subsequently evicted after the owner of the property became aware of the illegal sublet.
The court found that Mr Park had made false representations and had purposefully failed to reveal to Mr Choi that he was not entitled to sublet the premises.
Mr Choi had been unaware that the landlord’s consent was required but had had not been obtained before the subletting agreement was signed, nor had he been aware that the subletting agreement was unlawful as a result.
The court ruled that Mr Choi suffered a financial loss as a consequence of misrepresentation by Mr Park.
Because in cases of false representation, a defendant must make full reparations for any losses a claimant incurs, Mr Park was ordered to repay premium and rental payments totalling £91,532.52 to Mr Choi.
If you believe that you have entered into a contract because of misrepresentation, contact our expert team at Mander Hadley for help and advice today.
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