Reforming dilapidations disputes

Prompted by the Law Commission’s announcement of a scoping project into the maintenance, repair, and upgrading of leased commercial buildings, this paper explores the sorry state of the law on terminal dilapidations claims. It provides an overview of the existing law on damages in this area under Section 18(1) of the Landlord and Tenant Act 19271 and the underlying common law. It identifies a number of flaws in the current regime, both from the perspective of principled coherence and that of commercial pragmatism, not least in light of the huge cost and delay involved in many of these cases. The paper makes the case for the radical proposal of repealing Section 18(1) entirely and allowing the modern law of common law damages to fill the gaps, as it has in closely related areas. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.