PARK ROYAL COACHWORKS, LTD., AND H. YAGER INVESTMENT TRUST, LTD. v. PARK ROYAL STADIUM, LTD.

(1937) 57 Ll.L.Rep. 137

KING'S BENCH DIVISION.

Before Mr. Justice Finlay.

Fire insurance-Increase in premiums- Liability-First plaintiffs (coachworks) lessees of land from second plaintiffs- Insurance of first plaintiffs' premises- Intimation by insurance company that the basic rate would be 15s., with reduction to 7s. 6d. if premises sprinklered- Lease by second plaintiffs to defendants of land for stadium - Erection by defendants of grandstand overhanging first plaintiffs' premises-Additional fire hazard- First plaintiffs informed by insurance company that unless the grandstand was sprinklered, the basic rate would be increased to one guinea-Covenant by defendants under their lease that they "will also refund to the coachworks on demand any additional insurance premium or expense which the coachworks may have to pay or be liable for by reason of the erection of the stand or stands projecting over the land . . . . or otherwise in connection with the lessees' occupation and use of the premises demised"-Liability for additional premiums.