Andrew Francis considers the recent judgment of the Supreme Court in Sara & Hossein Asset Holdings Limited v Blacks Outdoor Retail Limited [2023] UKSC 2 (“Sara & Hossein”) in which, by a majority, the Court found in favour of the landlord when interpreting a clause in a lease which provided for the landlord’s certification of the service charge sum payable by the tenant. The judgment is another example of the application of the modern principles to be applied when construing legal agreements, which have been in place for nearly eight years since the judgment of the Supreme Court in Arnold v Britton [2015] AC 1619.  To that extent, the judgment might be thought to be unexceptional. However, its significance rests upon the importance of not only discovering the true meaning and effect of the clause being examined, but also ensuring that any conclusion is consistent with the other terms of the document (in this case, two leases) so that they all fit and work together satisfactorily.  It is the latter part of the task of interpretation of agreements which can sometimes be overlooked.

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