Parliamentary
Archives,
HL/PO/JU/18/251
Mayor
etc. of the London Borough of Hammersmith and Fulham
(Respondents)
v. Monk (A.P.) (Appellant)
JUDGMENT
Die Jovis 5° Decembris 1991
Upon Report from the Appellate Committee to
whom was
referred the Cause Mayor etc. of the London Borough
of
Hammersmith and Fulham against 'Monk (A.P.), That the
Committee
had heard Counsel as well on Monday the 28th as on
Tuesday the
29th and Wednesday the 30th days of October last,
upon the
Petition and Appeal of Kenneth John Monk of 35 Niton
Street,
London SW6, praying that the matter of the Order set
forth in the
Schedule thereto, namely an Order of Her
Majesty's Court of Appeal
of the 12th day of October 1990,
might be reviewed before Her
Majesty the Queen in Her Court of
Parliament and that the said
Order might be reversed, varied
or altered or that the Petitioners
might have such other
relief in the premises as to Her Majesty the
Queen in Her
Court of Parliament might seem meet; as upon the case
of the
Mayor and Burgesses of the London Borough of Hammersmith
and
Fulham lodged in answer to the said Appeal; and
due
consideration had this day of what was offered on either
side
in this Cause:
It is Ordered and Adjudged, by
the Lords Spiritual and
Temporal in the Court of Parliament of Her
Majesty the Queen
assembled, That the said Order of Her Majesty's
Court of
Appeal of the 12th day of October 1990 complained of in
the
said Appeal be, and the same is hereby, Affirmed and
that the
said Petition and Appeal be, and the same is hereby,
dismissed
this House: And it is further Ordered, That the
costs of the
respondents in this House be paid out of the Legal
Aid Fund in
accordance with section 18 of the Legal Aid Act 1988,
such
order to be suspended for four weeks to allow the Legal
Aid
Board to object if they wish: And it is also further
Ordered,
That the costs of the appellant be taxed in
accordance with
the Legal Aid Act 1988.
Cler: Parliamentor:
Judgment: 5 December 1991
HOUSE OF LORDS
MAYOR ETC. OF THE LONDON BOROUGH OF HAMMERSMITH
AND FULHAM
(RESPONDENTS)
v.
MONK
(A.P.)
(APPELLANT)
Lord
Bridge of Harwich
Lord Brandon of Oakbrook
Lord Ackner
Lord
Jauncey of Tullichettle
Lord Browne-Wilkinson
LORD BRIDGE OF HARWICH
My Lords,
The issue in
this appeal is whether a periodic tenancy held
by two or more
tenants jointly can be brought to an end by a
notice to quit by
one of the joint tenants without the consent of
the others. It
arises for determination in the following
circumstances. The
appellant, Mr. Monk, and Mrs. Powell were
granted by the
respondent local authority a weekly tenancy of a
flat at 35 Niton
Street, London S.W.6 where they co-habited. The
tenancy was
terminable by four weeks' notice to expire on a
Monday. In 1988
Mr. Monk and Mrs. Powell fell out and Mrs.
Powell left the flat.
She consulted the respondent, who agreed to
re-house her if she
would terminate the tenancy of the flat by
giving an appropriate
notice, which she did. The notice was given
without Mr. Monk's
knowledge or consent but the respondent
immediately notified him
that the tenancy had been determined
and in due course brought
proceedings in the West London County
Court to recover possession.
Judge Roger Cooke held that Mrs.
Powell's notice to quit was
ineffective to determine the tenancy
and dismissed the claim. The
Court of Appeal (Slade, Nicholls and
Bingham L.JJ.) (1990) 61 P. &
C.R. 414 allowed the respondent's
appeal
and made an order for possession. Mr. Monk now appeals
by leave of
your Lordships' House.
In a previous
decision of the Court of Appeal, Greenwich
London Borough
Council v. McGrady (1982) 46 P. & C.R. 223, it
was
held that a notice to quit given by one of
two joint tenants
without the consent of
the other was effective to determine the
periodic tenancy to which
it related. Much of the argument
before the Court of Appeal in the
present case was directed to
the question whether the court was
free to reach a conclusion at
variance with McGrady on the
grounds: (1) that an earlier decision
of the Court of Appeal,
Howson v. Buxton (1928) 97 L.J.K.B. 749,
was, as the judge
had held, binding authority to the opposite
effect; or (2) that,
in any event, the decision in McGrady was
given per
incuriam. The judgment of Slade L.J., with which
Bingham L.J.
agreed, examined these issues very thoroughly and
reached the
conclusion that Howson v. Buxton was not authority
for the
proposition sought to be derived from it and that McGrady
was
binding on the court. Nicholls L.J. approached the issue
more
radically and held, both on
principle and in reliance on a long line
of authority prior to the
decision in McGrady, that a joint periodic,
tenancy could
be determined by a notice to quit given by one joint
tenant.
Your Lordships
are not technically bound by any previous
decision and before
examining the relevant authorities I think it
helpful to consider
whether the application of first principles
suggests the answer to
the question at issue. For a large part of
this century there have
been many categories of tenancy of
property occupied
for agricultural, residential and commercial
purposes
where the legislature has intervened to confer upon
tenants
extra-contractual rights entitling them to continue in
occupation
without the consent of the landlord, either after the
expiry
of a contractual lease for a fixed term or after notice to
quit
given by the landlord to determine a contractual periodic
tenancy.
It is primarily in relation to joint tenancies in these
categories
that the question whether or not notice to quit given by
one or
the joint tenants can determine the tenancy is of
practical
importance, particularly where, as in the instant case,
the effect
of the determination will be to deprive the other joint
tenant of
statutory protection. This may appear an untoward result
and may
consequently provoke a certain reluctance to hold that the
law can
permit one of two joint tenants unilaterally to deprive
his co-
tenant of "rights" which both are equally
entitled to enjoy. But
the statutory consequences are in truth of
no relevance to the
question which your Lordships have to decide.
That question is
whether, at common law, a contractual periodic
tenancy granted to
two or more joint tenants is incapable of
termination by a tenant's
notice to quit unless it is served with
the concurrence of all the
joint tenants. That is the proposition
which the appellant must
establish in order to succeed.
As a matter of
principle I see no reason why this question
should receive any
different answer in the context of the
contractual relationship of
landlord and tenant than that which it
would receive in any other
contractual context. If A and B
contract with C on terms which are
to continue in operation for
one year in the first place and
thereafter from year to year unless
determined by notice at the
end of the first or any subsequent
year, neither A nor B has bound
himself contractually for longer
than one year. To hold that A
could not determine the contract
at the end of any year without
the concurrence of B and vice
versa would pre-suppose that each
had assumed a potentially
irrevocable contractual obligation for
the duration of their joint
lives, which, whatever the nature of
the contractual obligations
undertaken,
would be such an improbable intention to
impute to
the parties that nothing less than the clearest express
contractual
language would suffice to
manifest it. Hence, in any ordinary
agreement for an initial term
which is to continue for successive
terms unless determined by
notice, the obvious inference is that
the agreement is intended to
continue beyond the initial term only
if and so long as all
parties to the agreement are willing that it
should
do so. In a common law situation, where parties are free
to
contract as they wish and are bound only so far as they have
agreed
to be bound, this leads to the only sensible result.
- 2 -
Thus the
application of ordinary contractual principles leads
me to expect
that a periodic tenancy granted to two or more joint
tenants must
be terminable at common law by an appropriate
notice to quit given
by any one of them whether or not the others
are prepared to
concur. But I turn now to the authorities to see
whether there is
any principle of the English Law of real
property
and peculiar to the contractual relationship of landlord
and tenant
which refutes that
expectation or whether the authorities confirm
it. A useful
starting point is the following passage from
Blackstone's
Commentaries, Book II, Chapter 9, pp. 145-147, which
explains
clearly how the law developed the concept of a yearly
tenancy from
the earlier concept of a tenancy at will which gave
The tenant no
security of tenure:
"The second species of
estates not freehold are estates at
will. An estate at will is
where lands and tenements are
let by one man to another, to have
and to hold at the will
of the lessor; and the tenant by force of
this lease obtains
possession. Such tenant hath no certain
indefeasible estate,
nothing that can be assigned by him to any
other; for that
the lessor may determine his will, and put him out
whenever
he pleases. But every estate at will is at the will of
both
parties, landlord and tenant, so that either of them
may
determine his will, and quit his connextions with the other
at
his own pleasure. Yet this must be understood with
some
restriction. For, if the tenant at will sows his land,
and the
landlord before the corn is ripe, or before it is
reaped, puts him
out, yet the tenant shall have the
emblements, and free ingress,
egress, and regress, to cut
and carry away the profits. And this
for the same reason,
upon which all the cases of emblements turn;
viz. the point
of uncertainty: since the tenant could not possibly
know
when his landlord would determine his will, and
therefore
could make no provision against it; and having sown
the
land, which is for the good of the public, upon a
reasonable
presumption, the law will not suffer him to be a loser
by it.
But it is otherwise, and upon reason equally good, where
the
tenant himself determines the will; for in this case
the
landlord shall have the profits of the land.
" . . .
"The law
is however careful, that no sudden determination
of the will by
one party shall tend to the manifest and
unforeseen prejudice of
the other. This appears in the case
of emblements
before-mentioned; and, by a parity of reason,
the lessee after the
determination of the lessor's will, shall
have reasonable
ingress and egress to fetch away his goods
and utensils.
And, if rent be payable quarterly or half-
yearly, and the lessee
determines the will, the rent shall be
paid to the end of the
current quarter or half-year. And,
upon the same principle, courts
of law have of late years
leant as much as possible against
construing demises, where
no certain term is mentioned, to be
tenancies at will; but
have rather held them to be tenancies from
year to year so
long as both parties please, especially where
an annual rent
is reserved: in which case they will not suffer
either party
to determine the tenancy even at the end of the
year,
without reasonable notice to the
other."
- 3 -
I have added
emphasis to the phrase "from year to
year so long as
both parties please" because in its Latin
version "de anno in annum
quamdiu ambabus partibus placuerit"
this same phrase is used
repeatedly in a passage from Bacon's
Abridgment, 7th edition,
which has always been treated as of the
highest authority, as apt
to describe the essential
characteristics of a yearly tenancy.
Hence, from the
earliest times a yearly tenancy has been an
estate which continued
only so long as it was the will of both
parties that it should
continue, albeit that either party could only
signify his
unwillingness that the tenancy should continue beyond
the end of
any year by giving the appropriate advance notice to
that effect.
Applying this principle to the case of a yearly
tenancy where
either the lessor's or the lessee's interest is held
jointly by
two or more parties, logic seems to me to dictate the
conclusion
that the will of all the
joint parties is necessary to the
continuance of the interest.
In Doe d. Aslin v.
Summersett (1830) 1 B. & Ad. 135, the
freehold interest in
land let on a yearly tenancy was vested jointly
in four executors
of a will to whom the land had been jointly
devised. Three only of
the executors gave notice to the tenant to
quit. It was held by
the Court of King's Bench that the notice
was effective to
determine the tenancy. Delivering the judgment,
Lord Tenterden
C.J. said at pp. 140-141:
"Upon a
joint demise by joint-tenants upon a tenancy from
year to year,
the true character of the tenancy is this, not
that the tenant
holds of each the share of each so long as
he and each
shall please, but that he holds the whole of all
so
long as he and all shall please: and as soon as any one
of
the joint-tenants gives a notice to quit, he effectually
puts an
end to that tenancy: the tenant has
a right upon
such a notice to give up the whole, and unless
he comes to
a new arrangement with the other joint-tenants as to
their
shares, he is compellable so to do. The hardship upon
the
tenant, if he were not entitled to treat a notice from one
as
putting an end to the tenancy as to the whole, is
obvious; for
however willing a man might be to be sole
tenant of an estate, it
is not very likely he should be
willing to hold undivided shares
of it: and if upon such a
notice the
tenant is entitled to treat it as putting an end to
the tenancy as
to the whole, the other joint-tenants must
have the same right. It
cannot be optional on one side, and
on one side
only."
Now it was
rightly pointed out in argument that part
of the
reasoning in this passage was
dictated by considerations derived
from the incidents
of joint land tenure at law which were swept
away by
the reforming legislation of 1925. But this can in no way
detract
from the validity of the proposition emphasised in the
judgment
that the yearly tenant of a property let to
him by joint
freeholders "holds the
whole of all so long as he and
all shall
please." This by itself is a sufficient and
independent ground for
the conclusion of the court that notice to
quit by any one joint
freeholder was effective to determine the
tenancy. Precisely the
same reasoning would apply to the operation
of a notice to quit by
one of two or more joint yearly tenants.
- 4 -
Summersett's
case was followed in Doe d. Kindersley v.
Hughes (1840) 7
M. & W. 139 and Alford v.Vickery (1842) Car. &
M.
280, both cases in which the validity of a notice to determine
a
yearly tenancy given to the tenant without the concurrence of
one
or more of the joint landlords was affirmed. It is interesting
that
throughout the 19th century there is no reported case in the
books
where the effect of a notice to quit given by one of two or
more
joint holders of the tenant's interest under a yearly or
other
periodic tenancy was ever called in question. I do not
however
find this surprising. The law
was probably regarded as settled
after Summersett's case,
but, in any event, before the advent of
statutory protection of
tenants' rights of occupation, in the case
of a notice to quit
given by one of two or more joint periodic
tenants the parties
would in most cases have had little incentive
to litigate. If the
landlord was content that the other tenants
should remain, there
would have been nothing to litigate about. If
the landlord wished
to recover possession, he could do so by giving
his own notice to
quit.
In this century the English cases
directly in point are
Howson v. Buxton (1928) 97 L.J.K.B.
749, Leek and Moorlands
Building Society v. Clark [1952] 2
Q.B. 788 and Greenwich London
Borough Council v. McGrady
(1932) 46 P. &. C.R. 223. I will
defer consideration of Howson
v. Buxton until later. In Leek and
Moorlands Building
Society v. Clark the point directly in issue was
whether one
of two joint lessees could validly surrender the lease
before the
full period of the lease had run without the
concurrence of the
other joint lessee. Delivering the reserved
judgment of the court
in favour of the defendant lessees Somervell
L.J. said at pp.
792-793:
"Counsel
for the plaintiffs sought to rely on Doe d. Aslin v.
Summersett
as supporting a submission that Mr. Ellison, by
what he did, had
brought the joint tenancy to an end. That
case was dealing with a
lessee from year to year of land
which he held from two joint
lessors. A notice to quit was
served signed by one only of the
joint lessors. It was
argued that the other lessor had adopted the
notice, but
Lord Tenterden, who delivered the judgment of the
Court of
King's Bench, held that without any such adoption a
notice
to quit by one of the joint
lessors, who were joint tenants,
put an end to the tenancy as to
both.
"The ratio
of the decision is, we think, to be found in the
following
sentence: 'Upon a joint demise by joint tenants' -
that is, the
lessors in that case - 'upon a tenancy from year
to year, the true
character of the tenancy is this, not that
the tenant holds of
each the share of each so long as he
and
each shall please, but that he holds the whole of all so
long as
he and all shall please, and as soon as any one of
the joint
tenants' that is, the lessors in that case - 'gives
a notice to
quit, he effectively puts an end to that
tenancy.' It is to be
noted that Lord Tenterden was dealing
with a notice to quit
in respect of a periodic tenancy. He
was not dealing with a right
to determine a lease for say
21 years at the end, say, of the
seventh or fourteenth year.
Nor was he dealing with surrender.
- 5 -
"There is,
we think, force in the submission made on behalf
of the
plaintiffs, that in the case of a periodic tenancy
Lord
Tenterden's principle would apply when there were
joint
lessees. A periodic tenancy continues from period to
period unless
the notice agreed or implied by law is given.
But if one of two
joint lessees who 'hold the whole' wishes
it not to continue
beyond the end of a period, it might well
be held that it did not
continue into a new period. That
would happen only if all, that
is, the joint lessees, shall
please.
''If one
considers a lease to joint lessees for a term certain
with
a right of renewal, it would be obvious, we
think, that
both must join in requiring
a renewal. A periodic tenancy
renews itself unless either side
brings it to an end. But if
one of two or more
joint lessees does not desire it to
continue, .we
would have thought that it was in accordance
with
Lord Tenterden's principle, and with common sense,
that he should
be able to make that effective."
The judgment adds at pp. 794-795:
"Even
if we are wrong in what we have said with regard to
a right to
determine within the period of the lease as
distinct from a right
to terminate a periodic tenancy, we
would have thought
it plain that one of two joint lessees
cannot, in the absence of
express words or authority,
surrender the rights held jointly. If
property or rights are
held jointly, prima facie a transfer must
be by or under the
authority of all interested. The answer
suggested to this is
the principle laid
down in Doe d. Aslin v. Summersett.
That case, for reasons
which we have given, is not in our
view an exception to the rule
we have just stated. It is an
illustration, in a highly technical
field, of the general
principle that if
a joint enterprise is due to terminate on
a
particular day, all concerned must agree if it is to be
renewed
or continued beyond that day. To use Lord
Tenterden's phrase, it
will only be continued if 'all shall
please."'
In the
Greenwich case the point at issue was precisely the
same as
in the present appeal. After citing the judgment of the
court
in the Leek & Moorlands Building Society v. Clark. Sir
John
Donaldson M.R. said, at p. 224:
"In my judgment, it is clear
law that, if there is to be a
surrender of a joint tenancy - that
is, a surrender before its
natural termination - then all must
agree to the surrender,
if there is to be a renewal, which is the
position at the end
of each period of a periodic tenancy, then
again all must
concur. In this case. Mrs. McGrady made it quite
clear by
her notice to quit that she was not content to renew
the
joint tenancy on and after June 15, 1981. That left
Mr.
McGrady without any tenancy at all, although it was
faintly
argued by Mr. Osman that on, as he put it, the
severance
of a joint tenancy the joint tenant who did not concur
was
left with a sole tenancy. That cannot be the law, and
no
authority has been cited in support of it.
- 6 -
"The only
point that remains is whether Mr. McGrady is
entitled to the
protection of the Act of 1980 on the ground
that what 'was
a secure contractual tenancy has been
brought to an end. The short
answer to that is that the
Act of 1980 operates to give security
where landlords give
notice to quit; it
does not give security where tenants give
notice to quit."
In the instant case it has not
been suggested either that the
notice to quit given by Mrs. Powell
could have had the effect of
"severing" the joint
tenancy and leaving Mr. Monk in possession as
sole tenant or that,
if Mrs. Powell's notice was effective, Mr.
Monk was entitled to
any statutory protection.
To this
formidable body of English authority which supports
the conclusion
reached by the Court of Appeal there must be
added the decision of
the Court of Session in Smith v. Grayton
Estates Ltd. 1960
S.C. 249 which shows that Scottish law, although
using different
terminology, applies essentially the same principle
to give the
same answer to the same question. The issue in the
case was
whether a tenancy continuing from year to year after
the expiry of
a fixed term by virtue of the Agricultural Holdings
(Scotland) Act
1949 was determined by notice given by one of two
joint tenants.
Lord President Clyde said, at pp. 354-355:
"In
considering this matter, it is of importance to realise
that in
the present case the tenants were occupying under
tacit
relocation, in other words, that the tenancy was being
prolonged
from year to year beyond the stipulated term in
the lease, but
that otherwise the conditions in the lease
continued to operate -
see Rankine, Law of Leases, p. 601;
Cowe v. Millar,
reported only in Connell on The Agricultural
Holdings (Scotland)
Act 1923, p. 346, per Lord President
Clyde at p. 355. The
question comes to be whether, in that
situation, a timeous notice
by one of the two joint tenants
is invalid to bring the tenancy to
an end. The argument for
the appellant was that a valid notice
must be from both the
joint tenants, and this notice, not being a
joint one,
consequently is bad.
'"But, is
I see it, this argument overlooks the meaning and
effect of tacit
relocation. Tacit relocation is not an
indefinite prolongation of
a lease. It is the prolongation
each
year of the tenancy for a further one year, if the
actings of the
parties to the lease show that they are
consenting to this
prolongation. For, as in all contracts, a
tacit relocation or
reletting must be based on consent. In
the case of tacit
relocation the law implies that consent if
all the
parties are silent in the matter. Hence, where
there are joint
tenants, tacit consent by both of them is
necessary to secure the
prolongation and to enable tacit
relocation to operate. Silence by
both is necessary to
presume that both the tenants wish the
tenancy to continue
for another year. On the other hand, if both
are not silent,
and if one gives due notice of termination, the
consent
necessary for tacit relocation to operate is demonstrably
not
present, and tacit relocation will not operate beyond the
date
of termination in the notice. Clearly, in the present
case, there
is not such tacit consent, and, in my view, a
- 7 -
notice by one of the two joint
tenants is enough to exclude
the further operation of tacit
relocation.
Lord Sorn, at p. 356, is to the like effect.
These then are
the principles and the authorities which the
appellant seeks to
controvert. In the light of the careful analysis
in the judgment
of Slade L.J. of Howson v. Buxton. which I
gratefully adopt
and need not repeat, it is now rightly accepted
that the case
affords no greater support for the appellant than can
be derived
from the obiter dictum of Scrutun L.J. who said with
reference to
a notice to determine a yearly tenancy, at
p. 752:
"I personally take the view
that one joint tenant cannot give
a notice to terminate the
tenancy unless he does so with
the authority of the other joint
tenant . . ."
"Despite the eminence of the
author of this observation, I do not
feel able to give any weight
to it in the absence of any indication
of the reasoning on which
it is based.
There are three principal strands
in the argument advanced
for the appellant. "First, reliance
is placed on the judgment in
Candy v. Jubber (1865) 9 B. &
S. 15, for the proposition that a
tenancy from year to year,
however long it continues, is a single
term, not a series of
separate lettings. The case arose out of an
action for damages by
a plaintiff who had been injured by a
defective iron grating which
was out of repair so as to amount to
a nuisance. The property was
occupied by a yearly tenant but the
claim was brought against the
reversioner, who was held liable by
the Court of Queen's Bench.
The defendant appealed to the Court
of Exchequer Chamber on the
ground that it was not alleged that
the defendant knew of the
nuisance, nor that it had existed prior
to the commencement of the
yearly tenancy. The argument is
reported at 5 B. & S. 485.
Judgment was reserved, but before it
was delivered the case was
settled and Erle C.J. announced:
"It will not be necessary to
deliver the judgment we have
prepared."
The undelivered Judgment in the
defendant's favour is nevertheless
reported at 9 B. & S. 15
and has always been regarded as
authoritative. The passage relied
on reads:
"There
frequently is an actual demise from year to year so
long as both
parties please. The nature of this tenancy
is
discussed in 4 Bac. Arb. tit. Leases and Terms for Years,
pp.
838, 839. 7th Ed., and this article has always been
deemed to be
the highest authority being said to be the
work of Chief Baron
Gilbert. It seems clear that the
learned author considered that
the true nature of such a
tenancy is that it is a lease for two
years certain, and that
every year after it is a springing
interest arising upon the
first contract and parcel of it, so that
if the lessee
occupies for a number of years, these years, by
computation
from time past, makes an entire lease for so many
years,
and after the commencement of each new year it becomes
an
entire lease certain for the years past and also for the
years
entered on, and that it is not a reletting at the
- 8 -
commencement of the third and
subsequent years. We think
this is the true nature of a tenancy
from year to year
created by express words, and that there is not
in
contemplation of law a recommencing or reletting at
the
beginning of each year".
It must follow from this
principle, Mr. Reid submits, that the
determination of a periodic
tenancy by notice is in all respects
analogous to the
determination of a lease for a fixed term in the
exercise of a
break clause, which in the case of joint lessees
clearly requires
the concurrence of all. But reference to the
passage from Bacon's
Abridgment, 7th Ed., at p. 839 on which the
reasoning is founded
shows that this analogy is not valid. The
relevant passage reads:
"A parol
lease was made de anno in annum, quamdiu
ambabus partibus
placuerit; it was adjudged that this was
but a lease for a year
certain, and that every year after it
was
a springing interest, arising upon the first contract and
parcel
of it; so that if the lessee had occupied eight or ten
years, or
'more, these years, by computation from the time
past, made an
entire lease for so many years; and if
rent
was in arrear for part of one of those years, and part
of
another, the lessor might distrain and avow as for so much
rent
arrear upon one entire lease, and need not avow as for
several
rents due upon several leases, accounting each year
a new lease.
It was also adjudged, that after the
commencement of each new
year, this was become an entire
lease certain for the years past,
and also for the year so
entered upon: so that neither party could
determine their
wills till that year was run out, according to the
opinion of
the two judges in the last case. And this seems no
way
impeached by the statute of frauds
and perjuries, which
enacts, that no parol lease for above three
years shall be
accounted to have any other force or effect than of
a lease
only at will: for at first, this being a lease certain
only for
one year, and each accruing year after being a
springing
interest for that year, it is not a lease for any three
years
to come, though by a computation backwards, when five or
six
or more years are past, this may be said a
parol lease
for so many years: but with this the statute has
nothing to
do, out only looks forward to parol leases for above
three
years to come."'
Thus the fact
that the law regards a tenancy from year to
year
which has continued
for a number of years, considered
retrospectively, as a
single term in no way affects the principle
that
continuation beyond the end of each
year depends on the will
of the parties that it should
continue or that, considered
prospectively, the
tenancy continues no further than the parties
have
already impliedly agreed upon
by their omission to serve
notice to quit.
The second
submission for the appellant is that, whatever
the law may have
been before the enactment of the Law
of
Property Act 1925, the effect of that statute, whereby a
legal
estate in land vested in joint tenants is held on trust for
sale for
the parties beneficially entitled, coupled with the
principle that
trustees must act unanimously in dealing with trust
property, is to
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reverse the
decision in Summersett's case and to prevent one of
two
joint tenants determining a periodic tenancy without the
concurrence
of the other. It is unnecessary to consider the
position
where the parties beneficially entitled are different from
those
who hold the legal interest. But where, as here, two joint
tenants
of a periodic tenancy hold both the legal and the
beneficial
interest, the existence of a trust for sale can make no
difference
to the principles applicable to the termination of the
tenancy. At
any given moment the extent of the interest to
which the trust
relates extends no further than the end of the
period of the
tenancy which will next expire on a date for which
it is still
possible to give notice to quit. If before 1925 the
implied
consent of both joint tenants, signified by the omission to
give
notice to quit, was necessary to extend the tenancy from one
period
to the next, precisely the same applies since 1925 to the
extension
by the joint
trustee beneficiaries of the periodic tenancy
which is the subject
of the trust.
Finally, it is
said that all positive dealings with a joint
tenancy require the
concurrence of all joint tenants if they are to
be effective.
Thus, a single joint tenant cannot exercise a break
clause in a
lease, surrender the term, make a disclaimer, exercise
an option
to renew the term or apply for relief from forfeiture.
All these
positive acts which joint tenants must concur in
performing are
said to afford analogies with the service of notice
to determine a
periodic tenancy which is likewise a
positive act.
But this is to confuse the form with the substance.
The action of
giving notice to determine a periodic tenancy is in
form positive;
but both on authority and on the principle so aptly
summed up in
the pithy Scottish phrase "tacit relocation"
the substance of the
matter is that it is by his omission to give
notice of termination
that each party signifies the necessary
positive assent to the
extension of the term for a further period.
For all these reasons I agree with
the Court of Appeal that,
unless the terms of the tenancy
agreement otherwise provide,
notice to quit given by one joint
tenant without the concurrence
of any other joint tenant is
effective to determine a periodic
tenancy.
An alternative
ground advanced in support of the appeal
relied on the particular
terms of the tenancy agreement entered
into by Mr. Monk and Mrs.
Powell with the respondent as requiring
notice to quit to be given
by both joint tenants in order to
determine the tenancy. I agree
entirely with the reasons given by
Slade and Nicholls L.JJ. for
rejecting this contention.
I would accordingly dismiss the appeal.
LORD BRANDON OF OAKBROOK
My Lords,
I have had the advantage of
reading in draft the speech of
my noble and learned friend, Lord
Bridge of Harwich. I agree
with it and for the reasons which he
gives I would dismiss the
appeal.
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LORD ACKNER
My Lords,
I have had the
advantage of reading in draft the speech of
my noble and learned
friend. Lord Bridge of Harwich. I agree
with it and for the
reasons which he gives I, too, would
dismiss
this appeal.
LORD JAUNCEY OF TULLICHETTLE
My Lords,
I have had the
advantage of reading in draft the speech of
my noble and learned
friend, Lord Bridge of Harwich. I agree
with it and for the
reasons which he gives I, too, would dismiss
this appeal.
LORD BROWNE-WILKINSON
My Lords,
There are two
instinctive reactions to this case which lead
to diametrically
opposite conclusions. The first is that the flat in
question was
the joint home of Mr. Monk and Mrs. Powell: it
therefore cannot be
right that one of them unilaterally can join
the landlords to put
an end to the other's rights in the home.
The second is that Mr.
Monk and Mrs. Powell undertook joint
liabilities as tenants for
the purpose of providing themselves with
a joint home and that,
once the desire to live together has ended,
it is impossible to
require that the one who quits the home should
continue
indefinitely to be liable for the discharge of the
obligations
to the landlord under the tenancy agreement.
These two
instinctive reactions are mirrored in the legal
analysis of the
position. In certain cases a contract between two
persons can, by
itself, give rise to a property interest in one of
them. The
contract between a landlord and a tenant is a classic
example. The
contract of tenancy confers on the tenant a legal
estate
in the land such legal estate gives rise to rights and
duties
incapable of being
founded in contract alone. The revulsion
against
Mrs. Powell being able unilateraly to terminate Mr. Monk's
rights
in his home is property based: Mr. Monk's
property rights in
the home cannot be destroyed without his
consent. The other
reaction is contract based: Mrs. Powell cannot
be held to a
tenancy contract which is dependant for its
continuance on the
will of the tenant.
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The speech of my noble and learned
friend Lord Bridge of
Harwich traces the development of the
periodic tenancy from a
tenancy at will. He demonstrates that a
periodic tenancy is
rounded on the continuing will of both
landlord and tenant that the
tenancy shall persist. Once either
the landlord or the tenant
indicates, by appropriate notice, that
he no longer wishes to
continue, the tenancy comes to an end. The
problem is to
determine who is "the landlord" or "the
tenant" when there are
joint lessors or joint lessees.
In property
law, a transfer of land to two or more persons
jointly operates so
as to make them, vis a vis the outside
world,
one single owner. "Although
as between themselves joint tenants
have separate rights, as
against everyone else they are in the
position of a single owner":
Megarry and Wade. The Law of Real
Property. 5th ed., p.
417. The law would have developed
consistently with this principle
if it had been held that where a
periodic tenancy has been granted
by or to a number of persons
jointly, the relevant "will"
to discontinue the tenancy has to be
the will of all the joint
lessors or joint lessees who together
constitute the owner
of the reversion or the term as the case may
be.
At one stage
the law seems to have flirted with adopting
this approach. Thus in
Doe d. Whayman v. Chaplin (1310) 3 Taunt.
120 there
was a periodic tenancy and four persons were the joint
lessors.
Three only of the joint lessors gave notice to quit against
the
wishes of the fourth. It is reported that at one stage the
court
inclined to the view that in order to determine the tenancy
all
four lessors had to agree. However after further argument it
was
held that each of the three who had given notice to quit was
entitled
to put an end to the tenancy of his share and the three
who had
given notice to quit were therefore entitled to recover
three
parts of the land. As a result, the defendant apparently was
entitled
to stay on the land in right of his tenancy of one part as
tenant
in common with the three lessors who had given notice.
Although
the decision is difficult for a modern lawyer to
understand fully,
one thing is clear: the giving of notice to quit by
three out of
the four joint lessors was not sufficient to determine
the tenancy
of the whole land.
Despite this
flirtation, the law was in my judgment
determined in the opposite
sense by Doe d. Aslin v. Summersett
(1830) 1 3. & Ad.
135. The contractual, as opposed to the
property, approach
was adopted. Where there were joint lessors of
a periodic tenancy,
the continuing "will" had to be the will of all
the
lessors individually, not the conjoint will of all the
lessors
collectively. This decision created an exception to the
principles
of the law of joint ownership: see Megarry and Wade
(supra) pp.
421-422.
It was submitted that this House
should overrule
Summersett's case. But, as my noble and
learned friend Lord
Bridge of Harwich has demonstrated, the
decision was treated
throughout the 19th century as laying down
the law in relation to
the rights of joint lessors. It is not
suggested that the position of
joint lessees can be different.
Since 1925 the law as determined
in Summersett's case has
been applied to notices to quit given by
one of several joint
lessees. In my judgment no sufficient reason
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has been shown for changing the
basic law which has been
established for 160 years unless, as was
suggested, the 1925
legislation has altered the position.
Before 1925
property belonging to two or more persons
concurrently could be
held by them in undivided or divided shares
at law. The Law of
Property Act, 1925, changed this and requires
that, even in the
case of joint tenants, they hold the legal estate
as joint tenants
on trust for themselves as joint tenants in equity:
section 36(1).
It was suggested that the interposition of
this
statutory trust for sale has altered the position: since Mr.
Monk
and Mrs. Powell held the legal estate in the periodic tenancy
as
trustees and trustees must act unanimously, neither of
them
individually could give a valid
notice to quit.
In my view this
submission fails. The trust property in
question was a periodic
tenancy. As between the lessor and the
lessees the nature of the
contract of tenancy cannot have been
altered by the fact that the
lessees were trustees. The tenancy
came to an end when
one of the lessees gave notice to quit. It
may be that, as between
the lessees, the giving of the notice to
quit
was a breach of trust, theoretically giving rise to a claim by
Mr.
Monk against Mrs. Powell for breach of trust. Even this
seems to
me very dubious since the overreaching statutory trusts
for sale
imposed by the Law of Property Act, 1925, do not
normally alter
the beneficial rights inter se of the concurrent
owners: see Re
Warren [1932] 1 Ch. 42 per Maugham J. at p.
47;
Bull v. Bull [1955] 1 Q.B. 234. But even if, contrary
to my view,
the giving of the notice to quit by Mrs. Powell was a
breach of
trust by her, the notice to quit was not a nullity. It
was
effective as between the lessor and the lessees to terminate
the
tenancy. The fact that a trustee acts in breach of trust does
not
mean that he has no capacity to do the act he wrongly did.
The
breach of trust as between Mrs. Powell and Mr. Monk could
not
affect the lessors unless some case
could be mounted that the
lessors were parties to the breach, a
case which Mr. Reid, for Mr.
Monk, did not seek
to advance. Therefore in my judgment the
1925 legislation does not
affect this case.
For these
reasons and those given by my noble and
learned
friend Lord Bridge, I too would dismiss this appeal.
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