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England and Wales Court of Appeal (Civil Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Manchester City Council v Finn [2002] EWCA Civ 1998 (19 December 2002) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2002/1998.html Cite as: [2003] HLR 41, [2002] EWCA Civ 1998 |
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COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM THE MANCHESTER COUNTY COURT
(His Honour Judge Holman)
Strand London WC2 Thursday, 19th December 2002 |
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B e f o r e :
and
LADY JUSTICE ARDEN
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MANCHESTER CITY COUNCIL | Claimant/Respondent | |
-v- | ||
JOLEEN FINN | Defendant/Appellant |
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Smith Bernal Reporting Limited
190 Fleet Street London EC4A 2AG
Tel: 020 7421 4040 Fax: 020 7831 8838
(Official Shorthand Writers to the Court)
Mr Andrew Arden QC and Mr Jonathan Manning (instructed by the Chief Executive's Office, Manchester City Council) appeared on behalf of the Respondent Claimant.
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Crown Copyright ©
LORD JUSTICE WARD: I will ask Lady Justice Arden to give the first judgment.
LADY JUSTICE ARDEN:
"79Secure tenancies
(1)A tenancy under which a dwelling-house is let as a separate dwelling is a secure tenancy at any time when the conditions described in sections 80 and 81 as the landlord condition and the tenant condition are satisfied.
80The landlord condition
(1)The landlord condition is that the interest of the landlord belongs to one of the following authorities or bodies -
a local authority,
a new town corporation,
a housing action trust,
an urban development corporation,
...
the Relevant Authority,
a housing trust which is a charity, or
a housing association or housing co-operative to which this section applies.
81The tenant condition
The tenant condition is that the tenant is an individual and occupies the dwelling-house as his only or principal home; or, where the tenancy is a joint tenancy, that each of the joint tenants is an individual and at least one of them occupies the dwelling-house as his only or principal home.
82Security of tenure
(1)A secure tenancy which is either -
(a)a weekly or other periodic tenancy, or
(b)a tenancy for a term certain but subject to termination by the landlord,
cannot be brought to an end by the landlord except by obtaining an order of the court for the possession of the dwelling-house or an order under subsection (3).
(2)Where the landlord obtains an order for the possession of the dwelling-house, the tenancy ends on the date on which the tenant is to give up possession in pursuance of the order.
83Proceedings for possession or termination: notice requirements
(1)The court shall not entertain proceedings for the possession of a dwelling-house let under a secure tenancy or proceedings for the termination of a secure tenancy unless -
(a)the landlord has served a notice on the tenant complying with the provisions of this section, or
(b)the court considers it just and equitable to dispense with the requirement of such a notice.
(2)A notice under this section shall -
(a)be in a form prescribed by regulations made by the Secretary of State,
(b)specify the ground on which the court will be asked to make an order for the possession of the dwelling-house or for the termination of the tenancy, and
(c)give particulars of that ground.
84Grounds and orders for possession
(1)The court shall not make an order for the possession of a dwelling-house let under a secure tenancy except on one or more of the grounds set out in Schedule 2.
(2)The court shall not make an order for possession -
(a)on the grounds set out in Part 1 of that Schedule (grounds 1 to 8), unless it considers it reasonable to make the order,
(b)on the grounds set out in Part II of that Schedule (grounds 9 to 11), unless it is satisfied that suitable accommodation will be available for the tenant when the order takes effect,
(c)on the grounds set out in Part III of that Schedule (grounds 12 to 16), unless it both considers it reasonable to make the order and is satisfied that suitable accommodation will be available for the tenant when the order takes effect;
and Part IV of that Schedule has effect for determining whether suitable accommodation will be available for a tenant.
(3)Where a notice under section 83 has been served on the tenant, the court shall not make such an order on any of those grounds above unless the ground is specified in the notice; but the grounds so specified may be altered or added to with the leave of the court.
85Extended discretion of court in certain proceedings for possession
(1)Where proceedings are brought for possession of a dwelling-house let under a secure tenancy on any of the grounds set out in Part I or Part III of Schedule 2 (grounds 1 to 8 and 12 to 16: cases in which the court must be satisfied that it is reasonable to make a possession order), the court may adjourn the proceedings for such period or periods as it thinks fit.
(2)On the making of an order for possession of such a dwelling-house on any of those grounds, or at any time before the execution of the order, the court may -
(a)stay or suspend the execution of the order, or
(b)postpone the date of possession,
for such period or periods as the court thinks fit.
(3)On such an adjournment, stay, suspension or postponement the court -
(a)shall impose conditions with respect to the payment by the tenant of arrears of rent (if any) and rent or payments in respect of occupation after the termination of the tenancy (mesne profits), unless it considers that to do so would cause exceptional hardship to the tenant or would otherwise be unreasonable, and
(b)may impose such other conditions as it thinks fit."
"2.On 23 February 2000 the Claimant obtained a possession order against the Defendant over 12 Finishing Walk, Miles Platting, Manchester. There were arrears of rent of over £1,860. The terms of the order required the Defendant to give possession on March 22 unless she paid the current rent plus £2.60 per week off the arrears. The Defendant has complied with this order.
3.In November 2000 the police executed a search warrant at the house and recovered stolen property to a value of some £28,000. In due course the Defendant was made the subject of a 3 year Probation Order for handling stolen goods, and her partner, Paul Upton, was sentenced to 5 years imprisonment.
4.The terms of the tenancy agreement require the tenant and anyone living at the house not to use it for any illegal activity. The Claimant interviewed the Defendant about these events in June 2001 and she was sent a letter afterwards, which among other matters confirmed that she was in breach of her obligations as a tenant.
5.In August 2001 the police found 5 stolen microwaves at the house. On 30 October 2001 the Defendant pleaded guilty at the City Magistrates Court to a charge of handling and was sentenced to 3 months imprisonment suspended for 12 months.
6.In December 2001 the Claimant applied for the possession order to be varied on the grounds that the Defendant had broken the terms of her tenancy agreement and for possession to be given forthwith. The Claimant relied on Grounds 1 and 2 of Schedule 2 to the Housing Act 1985. The application was listed for hearing on 17 January 2002 but was then adjourned to 5 March 2002, when it came before District Judge Needham. He dismissed it and stated his reasons succinctly. I quote: `The court has no jurisdiction to entertain this application. It is functus officio having made the order for possession. No facts have arisen subsequent to that order for possession, which could give the court jurisdiction.' He concluded that Sheffield City Council v Hopkins was not authority for the proposition that he could amend the order for possession."
"... is it open to the court, where a tenant is complying with a suspended order for possession, to entertain an application either to revoke that order and substitute an immediate order for possession or to amend the terms of the suspension?" (see judgment, para 9)
"1.The court has decided that unless you make the payments as set out in paragraph 3 you must give the claimant possession of 12 Finishing Walk, Manchester M4 6GS on 22 March 2000.
2.You must also pay to the claimant £1,867.51 for unpaid rent, use and occupation of the property and £120.00 for the claimant's costs of making the application of possession.
3.You must pay the claimant the total amount of £1,987.51 by instalments of £2.60 per week in addition to the current rent. The current rent is £52.83 per week. The first payment of both these amounts must be made as and when current rent is due. When you have paid the total amount mentioned, the claimant will not be able to take any steps to evict you as a result of this order.
4.If you do not pay the money owed and costs by the dates given and the current rent, the claimant can ask the court bailiff to evict you and remove your goods to obtain payment. This is called `enforcing the order and money judgment'.
5.Payments should be made to the claimant at the place where you would normally pay your rent. If you need more information about making payments you should contact the claimant. The court cannot accept any payments."
That is on a standard form which is headed "Order for possession (possession suspended)", which is a shorthand and not necessarily wholly accurate way of describing the order.
"Under section 85(2) I have little doubt that the legislation did not seek to confine the discretion of the court to facts connected to the ground which was relied upon for initially seeking possession. Nor is the court restricted to the ground on which the order is made."
Lord Woolf then pointed out that the consequence of the tenant's argument in Hopkins was that the only remedy would be that the landlord would have to seek a new order for possession if the court were to suspend or stay the execution of the present order because it could not take into account the new material on which the local authority had sought to rely.
"(a)The discretion should be used to further the policy of Part IV of the Housing Act 1985, reinforced as it is by Article 8 of the European Convention on Human Rights and the Human Rights Act 1998. Accordingly, the courts should bear in mind that that policy is one which involves evicting the tenant from his or her home only after a serious breach of the tenant's obligations has been established, when it is reasonable to do so, and the tenant has been proved to have breached any condition of the order for suspension.
(b)The overriding principles contained in Part I of the Civil Procedure Rules, and in particular the need for applications to be dealt with in a summary and proportionate manner. These principles may mean that wider issues cannot be dealt with in the framework of an application to suspend the execution of a warrant and they have to be dealt with in some other way.
(c)The need for the tenant to have clear notice of the allegations being made, even though the position is one where what is being relied upon is not contained in the order for possession which was originally made."
"The whole scheme of [Part IV of the Housing Act 1985] is to afford protection to the secure tenant and that is achieved in section 85 by conferring on the court flexible powers to continue an existing secure tenancy, to revive a determined secure tenancy or to create a state of statutory limbo which will afford to a defaulting tenant an opportunity to have restored to him all the benefits of a secure tenancy when he has complied with stipulated conditions. Parliament cannot have intended to penalise a landlord who acted within the spirit of the Act by granting indulgences to defaulting tenants without going through time-wasting and expensive court proceedings. Furthermore, a tenant who has reached an agreement advantageous to himself is not thereby prevented from making an application to the court under section 85(2) or (4). In this case the judge found as a fact that neither party contemplated that the agreement of 5 February 1992 created a new tenancy and I can therefore see no reason why it should not be given the same effect as an order of the court in similar terms suspending execution of the order for possession of 29 January 1992. Such a result would accord entirely with the spirit of the relevant statutory provisions, would be consistent with the intention of the parties and would preserve all the respondent's rights under subsections (2), (3) and (4) of section 85."
"The first point to make about subsection (2) is that the court's power to vary its order may be exercised at any time before execution of the order for possession."
"The power to suspend an order for possession, where the case being made out is arrears of rent, and where the reasonableness ground that is relied upon is persistent failure to pay rent, should be directed, it seems to me, to the question of the payment of rent."
In this passage it seems to me that he was dealing with the question whether the tenant was taken by surprise and that, by "reliance", he was referring to the question as to whether or not the landlord could rely on matters which were not properly pleaded. The extraneous matters relied on in that case had not even been pleaded. I do not consider that this decision in any way demonstrates that the Hopkins decision was per incuriam.
LORD JUSTICE WARD:
"... the court's power to make an order postponing the date of possession is not restricted to exercise on the first application for an order for possession but may be exercised on the application of either party at any time prior to execution of that order ..."
I note that Lord Jauncey was contemplating there the power to make an order postponing the date of possession and indicating that it was not restricted to the exercise on the first application; but more of that anon.