Glasgow’s Rogano restaurant was unable to reopen after flooding and an electrical fire damaged its premises, prompting a legal dispute between its tenant and landlord.
asserted
flooding → reopen → tenant
The case reached the UK Supreme Court after Forthwell Limited sought to recover profits lost by Lynnet Leisure (Rogano) Limited, the company that operated the restaurant.
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that → reach → restaurant
According to the UK Supreme Court (17 September 2026), the court dismissed Forthwell’s appeal over its claim for the subsidiary’s lost profits.
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court → accord → profits
It rejected the proposed legal exception under Scots law that would have allowed Forthwell to recover losses suffered by Lynnet.
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Forthwell → reject → Lynnet
The court confirmed that the narrow Albazero exception remains part of Scots law, and left open whether the broader ‘performance interest’ ground applies.
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ground → confirm → law
However, the appeal did not resolve the separate dispute over the landlord’s repair obligations.
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appeal → resolve → obligations
Court rejected Forthwell’s argument over lost restaurant profits
Forthwell was the tenant of the Glasgow premises, while Pontegadea UK Limited was the landlord.
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Limited → reject → premises
Forthwell had allowed its wholly owned subsidiary, Lynnet Leisure (Rogano) Limited, to occupy the premises and operate the Rogano Restaurant and Bar.
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subsidiary → allow → Restaurant
Forthwell argued it should be able to recover Lynnet’s lost profits and then account to Lynnet for them.
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it → argue → them
The court rejected the legal exception Forthwell relied on and dismissed its appeal.
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Forthwell → reject → appeal
It held that the proposed exception did not form part of Scots law.
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exception → hold → law
Flooding and fire damage sparked a dispute over Rogano
The Rogano had closed during the Covid-19 restrictions and could not reopen after its premises were damaged by flooding on 9 and 14 December 2020 and 10 January 2021.
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premises → spark → December
A fire broke out after the first flood, leaving the electrical installations unsafe.
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fire → break → installations
Water continued to enter the building, which was also left without heating.
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which → continue → heating
Forthwell argued that the landlord had failed to meet its obligations to repair the premises and maintain the building’s common areas.
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landlord → argue → areas
Under the lease, the landlord was required to rebuild any part damaged by an insured risk, including flooding.
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landlord → require → flooding
However, the two parties disagreed over the extent of the repairs needed and who was responsible for certain work.
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who → disagree → work
The repairs have not been carried out, and the restaurant has not been able to reopen.
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restaurant → carry → ?
Lease dispute raised questions over lost restaurant profits
Forthwell acquired the tenant’s interest in the lease in August 2013 and granted Lynnet a licence to occupy the premises.
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Forthwell → raise → premises
Lynnet operated the restaurant under that licence, but the lease was between Forthwell and Pontegadea legally.
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lease → operate → Forthwell
Forthwell sought an order requiring the landlord to carry out repairs or pay damages to cover their cost.
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Forthwell → seek → cost
Forthwell sought damages for Lynnet’s past and anticipated future lost profits.
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Forthwell → seek → past
Pontegadea argued that Forthwell could not recover losses suffered by Lynnet because the subsidiary was not a party to the lease.
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subsidiary → argue → lease
Repair responsibilities remain unresolved after the court decision
The Supreme Court held that the exception proposed by Forthwell was too broad and its limits were unclear.
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limits → remain → Forthwell
The general rule is that a party can recover damages for losses it has itself suffered, subject to exceptions.
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it → recover → exceptions
The court said the proposed approach could impose liability for losses involving a third party whose involvement was not contemplated when the contract was made.
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contract → say → party
It also noted that existing legal routes may allow third parties to claim in some cases.
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parties → note → cases
The court found no convincing basis for creating the additional exception sought by Forthwell.
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court → find → Forthwell
It upheld the earlier decision rejecting the lost-profit claim.
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It → uphold → claim
The parties told the court on the morning of the hearing that they had settled their dispute.
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they → tell → dispute
Forthwell applied to withdraw its appeal, but the court refused, because the case raised a point of law of general public importance on which authoritative guidance was desirable.
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guidance → apply → which
The separate questions about the landlord’s repair duties and the remedies sought were not determined by this appeal.
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questions → seek → appeal
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