Possession — Agreement to convey title — No conveyance — Purchaser bringing possession proceedings — Claim by trespasser that plaintiff had no title — Defendant paying rent — Whether tenancy by estoppel — Whether plaintiff had better title than defendant — Appeal by defendant dismissed
Before 1939, a number of plots were let for holiday homes at Reighton Gap, Filey, Yorkshire. The tenants built chalets on the plots. In or about December 1976, the defendant acquired two chalets, nos 38/39 Boatcliffe Road, from a Mr Irdale. The defendant paid a ground rent to the freeholder. In July 1981 the land was conveyed to Leisure Caravan Parks Ltd, and by two agreements of September 1982 the whole business undertaking of Leisure was sold to the plaintiff company; its freehold and leasehold properties were agreed to be conveyed. By a further agreement of March 1983, the plaintiff appointed Leisure Holidays Ltd to act as its agent and to manage its properties and business previously marketed under the name of “Leisure Caravan Parks Ltd”.
Until August 1983 the defendant paid her ground rent to Leisure Caravan Parks Ltd, but in September 1983 Leisure Holidays Ltd served notice to quit on the defendant. In 1987 the plaintiff brought proceedings claiming possession and mesne profits. Although the defendant contended before the Bridlington County Court that the plaintiff had not established a title to the plots, His Honour Judge Barker accepted that the defendant had always regarded herself as a tenant and that although the plaintiff may not have the freehold title vested in itself, it had a better title than the defendant. He ordered (June 19 1989) possession of the plots and mesne profits. The defendant appealed contending that the plaintiff did not have title to the land; the plaintiff cross-appealed as to the amount of the interest.
Held The appeal was dismissed and the cross-appeal allowed as to the interest.
Although it was doubtful whether the freehold title to the defendant’s plots had ever been conveyed to the plaintiff, the plaintiff did acquire from Leisure Caravan Parks Ltd by the 1982 agreement “the full benefit of and right to enforce all contracts”. The plaintiff therefore had a better title to possession of the plots than the defendant. The defendant had paid rent and accepted that she was a tenant; she might have been a tenant by estoppel and would not then be able to deny the title of the party she had paid rent to. However, she had paid her rent to Leisure Caravan and not to the plaintiff.
In relation to the claim for mesne profits, it was not material that the plaintiff had had no intention of making a profit out of letting the property; mesne profits should represent the value to the trespasser. The defendant was not entitled to a credit for the improvements she had made to the chalets; they were now fixtures. The amount of interest fixed by the county court was too low and must be increased.
Swordheath Properties Ltd v Tabet
[1979] 1 WLR 285 applied.
Bernard Weatherill (instructed by Harbottle & Lewis) appeared for the plaintiff; and Clive Smith (instructed by Catterall Pell & Moxon, of Wakefield) appeared for the respondent.
