News
Landlord’s Intention Must Be Long TermWhen a tenant’s lease is governed by the Landlord and Tenant Act 1954, the landlord has limited grounds for refusing to renew the lease. One possible ground is that the landlord wishes to make use of the premises for its own business purposes.
In a recent case, a tenant who had applied for a new lease had his application opposed. The landlord argued that he wished to use the premises in order to run a retail news agency. He offered to give an undertaking that he would not use the premises for any other business purpose for a period of two years.
The tenant believed that the landlord wished to have possession of the premises so that he could sell them, even though the property was not on the market and no prospective buyer was in place.
The legislation does not specify for how long a landlord must intend to occupy premises for the purposes of his business in order to be able to oppose the renewal of a lease. However, the Court of Appeal considered that if the landlord’s intention was to sell the property within five years, he did not intend to occupy it for a long enough period to satisfy the ‘for the purposes of his own business’ condition.
The undertaking offered by the landlord merely prevented him from running any other type of business and was limited to two years. It did not require the landlord to trade and the landlord had closed an adjacent business he owned.
On the balance of the facts before it, the Court ruled that there was sufficient ground for doubting the landlord’s intention to use the property for his own business purposes and the application to refuse a new lease to the tenant therefore failed.
Landlords who wish to obtain possession of leases covered by the Act can expect the courts to adopt the five-year time period referred to above as a rule of thumb for determining whether or not they have successfully made out the case that they require the premises for the purposes of their own business.
Philip can be contacted for advice on 01603 693595 or email pn@clapham-collinge.co.uk
Case Note
Patel and another v Keles and another [2009] EWCA Civ 1187.
Created on: 01 September 2010
Massive Litigation Shake-Up Proposed
Lord Justice Jackson’s eagerly awaited final report outlining proposed changes to the British system of civil litigation has been published and promises a massive shake-up of the current system, which is considered to impose excessive costs on losers in litigation.
Among the changes proposed are:
• The end of the ‘loser pays’ principle in British law. A winning defendant’s costs will normally no longer be payable by the claimant in those instances in which the claimant is normally an individual and the defendant an organisation;
• The end of the current system of ‘no win, no fee’ agreements by making lawyers’ success fees and the costs of ‘after the event’ insurance premiums paid irrecoverable from the losing party. No win, no fee was widely regarded as a panacea when introduced, but in reality has proved problematic; and
• Allowing lawyers to charge contingency fees, by which they receive a percentage of the judgment sum and take the risk of not being paid if the case is not won. In effect, this will replace no win, no fee and should act as a brake on pursuing weak cases.
The current pre-action protocols are to be retained and judges are to be encouraged to become more involved with cases to assist in controlling costs.
Kristian can be contacted on 01603 693560 or email kj@clapham-collinge.co.uk
The 584-page report can be found at http://www.judiciary.gov.uk/about_judiciary/cost-review/jan2010/final-report-140110.pdf.
Note
The Review of Civil Litigation Costs: Final Report can be found at http://www.judiciary.gov.uk/about_judiciary/cost-review/jan2010/final-report-140110.pdf.
Created on: 01 September 2010
‘It’s Been in the Family For Years’ is No Argument
The argument put forward by a farmer that he should retain the family farm after his divorce, because it had been in his family for generations and his wife was aware that it was the family tradition for it to be handed down from generation to generation, was given short shrift in the family court recently.
The farmer had wanted the value of the farm to be ‘ring-fenced’ and left out of the calculations for dividing the couple’s assets on divorce. However, the judge ruled that there was no legal authority for a division of assets on that basis.
The farmer’s ex-wife was awarded the family home, a lump sum of £1.5 million and annual maintenance payments of £44,000.
The financial arrangements on divorce can lead to long and bitter negotiations in some cases. We can help you ensure that you achieve an equitable settlement if your marriage or civil partnership breaks down.
Laura can be contacted for further advice on 01603 593590 or email lag@clapham-collinge.co.uk
Created on: 01 September 2010
Clapham & Collinge Recruit for Further Growth
We are pleased to announce that we have expanded our strength and expertise by the appointment of three new members of staff.
Rosemary Farman qualified as a solicitor in 1986, since when she has worked in both private practice and local government. She is married to a barrister and with two teenage children, spends much of her free time driving around the country for sporting fixtures and is also a Governor of Norwich High School for Girls. Rosemary brings extensive experience in both residential and commercial conveyancing, counting one of the highlights of her career the transference of 12,500 council houses to a Housing Association before the 1992 General Election.
Melanie Pilmer joined the practice in June 2010. She is a specialist in family law, cohabitation, matrimonial and cases involving children, and is secretary of Norfolk Resolution, an organisation of family lawyers committed to the constructive resolution of family disputes. Melanie is also frequently called upon to act for business owners who are divorcing. Her spare time is devoted to running, music and her classic camper van.
Kiri Nichols is a Legal Executive based in Sheringham. She qualified as a Fellow of the Institute of Legal Executives in 2006 and has previously worked for law firms in London and Hertfordshire. She has relocated to Norfolk after her recent marriage. Having worked in Private Client departments for over ten years, she deals will all aspects of Private Client work such as will and inheritance tax planning, powers of attorney, probate administrations and trust administrations.
Tammy Parnell, Partner welcomes them saying: “The services we provide both to individual and commercial clients are wide-ranging, and these appointments will add to our strengths. Not only that, as local solicitors, it is important to Clapham & Collinge, that its staff members play a part in the local communities it serves, and these three new members of staff all fulfil this criteria. Clapham & Collinge is establishing a significant reputation in Norfolk, and Rosemary, Melanie and Kiri will be making a considerable contribution to our future growth and success.”
All of our legal experts are available for appointments at both our Sheringham and Norwich offices.
Clapham & Collinge are contactable for advice on 01263 823398 or Norwich 01603 693500. Alternatively you can email sherinfo@clapham-collinge.co.uk or info@clapham-collinge.co.uk
Created on: 01 September 2010
