"Material Compliance" with Leases

What exactly is “material compliance” by a tenant with respect to the covenants in its lease?  The issue is gaining in importance in the U.K., where a tenant’s ability to get out of a lease may rest on whether it’s in “material compliance” or has “reasonably performed” at the time it tries to exit.  A recent High Court decision discusses the issue, Fitzroy House Epworth Street (No. 1) v. The Financial Times [2005] EWHC 2391 (TCC).  Caroline Potter of Cameron McKenna in London takes a look at the case  here.

[Frank Snyder]