Most of us can agree that getting caught in a lie rarely results in a positive outcome. The recent case of McDonald’s Restaurants Ltd v Shirayama Shokusan Company Ltd [2024] EWHC 1133 (Ch) demonstrates that you might be caught out if evidence you give in one trial turns out to be hugely different in a second hearing. 

In the first trial, the Defendant (Shirayama Shokusan Company Ltd) had sought possession of their commercial premises by opposing the grant of a new tenancy for the business operating in the space, which was a McDonald’s at County Hall in London. They had given evidence that they had a definite plan to open a Zen Bento restaurant with indoor seating, even showing quotes from contractors and providing an undertaking to the court that this would happen.   

As soon as they were granted possession, directors of the Defendant company celebrated, and sent emails to a wide group, attempting to devise alternate plans for a ‘grab and go’ style eatery alongside several other ideas, making clear that the plans they shared were not as concrete as they had led the court to believe. They ultimately ended up opening several different establishments over a short period of time, but never the Zen Bento restaurant they based their possession claim on.  

At the second hearing, the Judge was not impressed with the Defendant’s evidence. He found that the Defendant company had misrepresented its intention for the premises at trial. The emails from the directors proved that was no fixed intention to open a Zen Bento restaurant with seating. 

The Defendant was therefore held liable to pay compensation to the Claimant (McDonald’s Restaurants Ltd) under the Landlord and Tenant Act 1954. However, a claim in the tort of deceit (when a misrepresentation is made with the express intention of defrauding a party, causing them a loss) was dismissed.   

It is a clear lesson that the statement of truth on a witness statement is important: If evidence given in a second trial doesn’t match previous evidence, it can lead to huge consequences. 

As a commercial landlord, it is important that you seek out the appropriate legal support relating to your property to avoid getting caught in a lengthy litigation dispute. Our experts at Jackson Lees are here to advise you. Call us today or make an enquiry.