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Monthly Update

November 2019

The November 2019 update is now available.

Topics this month:
  • Co-ownership: Proprietary estoppel and constructive trusts – Getting the pleadings right
  • Long leases: Qualifying Long-term Agreements – Date of commencement of agreement
  • Mortgages: Receivers – Entitlement to claim possession – Whether s 36 AJA 1970 available to mortgagor
  • Property litigation: Relief from sanctions – All the circumstances.
  • Solicitors Practice Points: Law Society – New guidance on VAT on disbursements.

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The next update will be in the middle of December.

Gary Webber
11 November 2019



Proprietary estoppel and constructive trusts – Getting the pleadings right

Kensington Mortgage Company Limited v Mallon
[2019] EWHC 2512 (Ch)

Dismissal of an appeal against a judge’s refusal in a successful possession case by a mortgage company against the occupiers to consider a point that was not pleaded in a statement of case and refusal of an application to amend being made at the first day of the trial.

Long leases

Qualifying Long-term Agreements – Date of commencement of agreement

Ghosh v Hanover Gate Mansions Ltd
[2019] UKUT 290 (LC)

A contract between a landlord and a managing agent was found to have come into existence when the performance of management services commenced, and not on the date of the landlord’s payment for the services provided. In the circumstances, the particular contract was a qualifying long-term agreement and the statutory consultation requirements under s20 of the Landlord and Tenant Act 1985 were applicable.


Receivers - Entitlement to claim possession - Whether s36 AJA 1970 available to mortgagor

Menon v Pask and Goode
[2019] EWHC 2611 (Ch)

Receivers appointed by a bank as mortgagee were entitled to sue for possession, notwithstanding that they acted as agents of the mortgagor, and in such a case it was still open to the mortgagor to rely on s36 Administration of Justice Act 1970.

Property Litigation

Relief from sanctions – All the circumstances – Landlord and tenant dispute

Michael v Lillitos
[2019] EWHC 2716 (QB)

The refusal to grant an Appellant relief from sanction, and the consequential striking out of his defence and counterclaim, was disproportionate. The breach was towards the bottom end of severity and the consequences upon the Appellant of the refusal to grant relief ought to have been given more weight.

Solicitors Practice Points

Guidance Note

The Law Society has issued new guidance on the treatment of VAT on disbursements. This guidance replaces the Practice Note on VAT on disbursements and takes account of the decisions in Brabners LLP v The Commissioners for her Majesty's Revenue & Customs [2017] UKFTT 0666 and the obiter comments of the Court of Appeal in the British Airways v J. Prosser [2019] EWCA Civ 547.

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