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You are here: BAILII >> Databases >> United Kingdom Supreme Court >> Berrisford v Mexfield Housing Co-operative Ltd (Rev 1) [2011] UKSC 52 (9 November 2011) URL: http://www.bailii.org/uk/cases/UKSC/2011/52.html Cite as: [2011] 3 WLR 1091, [2012] 1 All ER 1393, [2012] HLR 15, [2012] 1 P & CR 8, [2011] 46 EG 105, [2011] 3 EGLR 115, [2012] PTSR 69, [2011] NPC 115, [2011] UKSC 52, [2012] L & TR 7, [2012] 1 AC 955 |
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Michaelmas Term
[2011] UKSC 52
On appeal from: [2010] EWCA Civ 811
JUDGMENT
Berrisford (FC) (Appellant) v Mexfield Housing Co-operative Limited (Respondent)
before
JUDGMENT GIVEN ON
9 November 2011
Heard on 5 and 6 October 2011
Appellant Mark Wonnacott (Instructed by Mary Ward Legal Centre) |
Respondent Jonathan Gaunt QC Kerry Bretherton Laura Tweedy (Instructed by Rickerbys LLP) |
LORD NEUBERGER
The factual background
"[Mexfield] shall let and [Ms Berrisford] shall take the [premises] from 13 December 1993 and thereafter from month to month until determined as provided in this Agreement."
"5. This Agreement shall be determinable by [Ms Berrisford] giving [Mexfield] one month's notice in writing.
6. This Agreement may be brought to an end by [Mexfield] by the exercise of the right of re-entry specified in this clause but ONLY in the following circumstances:
a) If the rent reserved hereby or any part thereof shall at any time be in arrear and unpaid for 21 days
b) If [Ms Berrisford] shall at any time fail or neglect to perform or observe any of the [terms of] this Agreement which are to be performed and observed by [her]
c) If [Ms Berrisford] shall cease to be a member of [Mexfield]
d) If a resolution is passed under [Mexfield's] Rules regarding a proposal to dissolve [Mexfield]
THEN in each case it shall be lawful for [Mexfield] to re-enter upon the premises and peaceably to hold and enjoy the premises thenceforth and so that the rights to occupy the premises shall absolutely end and determine as if this Agreement had not been made ."
Ms Berrisford's primary claim that she has a subsisting tenancy
The argument in summary
(i) The Agreement purports to be the grant to Ms Berrisford of a tenancy for a term determinable by her on one month's notice under clause 5, or by Mexfield through exercising its rights under clause 6, and in no other way;
(ii) Subject to the points in sub-paragraphs (iii) and (iv), such an arrangement cannot constitute a valid tenancy in law;
(iii) Before 1926, the arrangement would have been a term for the life of the tenant, subject to the determination rights under clauses 5 and 6 before her death;
(iv) By virtue of section 149(6) of the Law of Property Act 1925 ("the 1925 Act"), such a term is now a tenancy for 90 years, subject to the landlord's right to determine on the tenant's death, and to the rights under clauses 5 and 6;
(v) As Ms Berrisford has not served notice under clause 5, and Mexfield is not relying on clause 6, Mexfield is not entitled to possession, as the 90-year tenancy created by the Agreement still subsists.
Can the landlord determine the Agreement by giving one month's notice?
Is such an arrangement capable of being a tenancy as a matter of law?
Would such a tenancy have been treated as a tenancy for life before 1926?
"[I]f an abbot make a lease to a man, to have and to hold to him during the time that he is abbot the lessee hath an estate for the term of his owne life: but this is on condition that if the abbot resign, or be deposed, that then it shall be lawful for his successor to enter."
Is the agreement converted into a 90-year term by section 149(6)?
"Any lease . . . at a rent . . . for life . . . or any contract therefor, made before or after the commencement of this Act, . . . shall take effect as a lease . . . or contract therefor, for a term of 90 years determinable after the death . . . of the original lessee . . . by at least one month's notice in writing given to determine the same on one of the quarter days applicable to the tenancy "
Is Ms Berrisford accordingly entitled to retain possession?
Ms Berrisford's alternative case in contract
"[Counsel] argued that the agreement could be construed as an agreement to grant a licence. In my opinion, it is impossible to construe it in that sense. The intention was to create a tenancy and nothing else. The law says that it is bad as a tenancy. The court is not then justified in treating the contract as something different from what the parties intended . That would be setting up a new bargain which neither of the parties ever intended to enter into."
So, too, in Prudential [1992] 2 AC 386, it appears that Lord Templeman treated as void a fetter for an indefinite period on the right of the landlord under a periodic tenancy to serve a notice to quit.
Conclusion
LORD HOPE
LORD WALKER
LADY HALE
"If the parties to a periodic tenancy know where they stand, in the sense that the contract between them is sufficiently certain, then that should be enough. If a landlord, in this case a fully mutual housing association, decides that its tenants should be entitled to remain in possession unless and until they fall into arrears with their rent or break other provisions contained in the tenancy agreement, it is difficult to see what policy objectives are being furthered in denying the tenant the rights that the agreement seeks to create."
Quite so.
LORD MANCE
"is authority for the proposition that a 'lease' or 'tenancy' is a contractually binding agreement, not referable to any other relationship between the parties, by which one person gives another the right to exclusive occupation of land for a fixed or renewable period or periods of time, usually in return for a periodic payment in money. An agreement having these characteristics creates a relationship of landlord and tenant to which the common law or statute may then attach various incidents".
See Bruton v London & Quadrant Housing Trust [2000] 1 AC 406, 413E, per Lord Hoffmann. Only in "special circumstances" (not here relevant) will an agreement having these characteristics not involve a tenancy: see Street v Mountford, p 822B and Bruton, pp 410E, 411C-412B, 414-B-G and 417A-B.
LORD CLARKE
LORD DYSON
"Where land is given to a widow during her widowhood, or to a man until he shall become bankrupt, or for any other definite period of time of uncertain duration, a freehold estate is conferred, as in the case of a gift for life. Such estates are regarded in law as determinable life estates " (emphasis added).