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Andrew Flagg advises freehold property owners

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Andrew Flagg, dispute resolution partner at Stephen Rimmer LLP has delivered another successful outcome for his clients.

Andrew (and instructed counsel Simon Lane of Pump Court Chambers) represented the owners of a freehold property in a case which involves important points of law for both insolvency and property practitioners.  The case against PME Cake which was heard at the High Court at the end of July.

Andrew’s clients leased a property which they owned to PME Harrow, with PME Cake acting as guarantor. When PME Harrow left, Andrew’s clients subsequently brought a claim  for breaches of covenant and associated costs against PME Harrow which was settled at the end of last year at mediation by agreement (with PME agreeing to pay £300,000 to Andrew’s clients).

As PME Harrow failed to make payment, a formal demand was issued to PME Cake as guarantor of the obligations. When no payment was made by PME Cake a statutory demand was issued against them.

PME Cake argued that they were no longer liable as the agreement superseded any breach of covenant liability and released them from their obligation. The Court dismissed PME’s application, maintaining that they were still liable to pay the sums owed.

The full case report can be found here

Andrew Flagg is an experienced dispute resolution partner, advising both individuals and businesses in a variety of matters, including debt recovery, contractual disputes, property litigation, landlord and tenant disputes and TOLATA claims and can be contacted on

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