R v Rent Officer for the London Borough of Camden, ex parte Felix
(Before Mr Justice HUTCHISON)
Rent Act 1977 — Applications by landlord of four properties for judicial review refused — Applications to rent officer to register fair rents signed by some but not all joint tenants — Whether Turley v Panton principle applicable — Landlord’s allegations of non-receipt of copies of applications and invitations to consultations — Effect of lengthy delay by landlord in applying for judicial review — Judge’s discretion — Applications ‘singularly lacking in merit’ but raised questions as to rent officer’s jurisdiction — It should be explained that the relevant agreements purported to grant non-exclusive licences, not tenancies, and issues had been raised elsewhere as to their status, but for the purpose of the present applications for judicial review it had been agreed that the transactions should be assumed to create tenancies
In the first
of the four cases the application to the rent officer had been signed by two
out of the three joint tenants, the third having moved out — The judge held
that in this case it was proper to infer from the evidence that the two who
signed were authorised to apply on behalf of the third as well as themselves —
He preferred, however, to rest his decision on the alternative ground that the
evidence justified the conclusion that the arrangement made with the landlord
was the grant of a joint tenancy to the three, to be followed on the departure
of one by a joint tenancy of the other two — The challenge to the rent
officer’s jurisdiction accordingly failed
In the second
case the application to the rent officer was signed by one only of the five
joint tenants — The landlord admittedly received notice of this application and
an invitation to attend a consultation, but he did not attend — All five
tenants attended and the rent officer took the opportunity of obtaining
signatures to the application from the other four joint tenants — He then sent
out a further letter to the landlord, enclosing a copy of the amended
application, and issued an invitation to the fresh consultation — That letter,
addressed to the landlord’s proper address, was returned, with a note that it
had not been ‘called for’ — The landlord evidently did not take business-like
steps to ensure receipt of mail — The rent officer proceeded to determine a
fair rent — This was challenged by the landlord on the grounds that the first
application was invalid as made by one out of five joint tenants and that the
rent officer’s determination was a nullity as the landlord had not received the
amended application or the notice of the second consultation — As the judge
found clear evidence that the first application was made with the full
authority of all five joint tenants, it was unnecessary to consider the effect
of the non-receipt of the amended application and invitation to a second
consultation — Here again the landlord’s challenge failed
Rent Act 1977 — Applications by landlord of four properties for judicial review refused — Applications to rent officer to register fair rents signed by some but not all joint tenants — Whether Turley v Panton principle applicable — Landlord’s allegations of non-receipt of copies of applications and invitations to consultations — Effect of lengthy delay by landlord in applying for judicial review — Judge’s discretion — Applications ‘singularly lacking in merit’ but raised questions as to rent officer’s jurisdiction — It should be explained that the relevant agreements purported to grant non-exclusive licences, not tenancies, and issues had been raised elsewhere as to their status, but for the purpose of the present applications for judicial review it had been agreed that the transactions should be assumed to create tenancies
In the first
of the four cases the application to the rent officer had been signed by two
out of the three joint tenants, the third having moved out — The judge held
that in this case it was proper to infer from the evidence that the two who
signed were authorised to apply on behalf of the third as well as themselves —
He preferred, however, to rest his decision on the alternative ground that the
evidence justified the conclusion that the arrangement made with the landlord
was the grant of a joint tenancy to the three, to be followed on the departure
of one by a joint tenancy of the other two — The challenge to the rent
officer’s jurisdiction accordingly failed
In the second
case the application to the rent officer was signed by one only of the five
joint tenants — The landlord admittedly received notice of this application and
an invitation to attend a consultation, but he did not attend — All five
tenants attended and the rent officer took the opportunity of obtaining
signatures to the application from the other four joint tenants — He then sent
out a further letter to the landlord, enclosing a copy of the amended
application, and issued an invitation to the fresh consultation — That letter,
addressed to the landlord’s proper address, was returned, with a note that it
had not been ‘called for’ — The landlord evidently did not take business-like
steps to ensure receipt of mail — The rent officer proceeded to determine a
fair rent — This was challenged by the landlord on the grounds that the first
application was invalid as made by one out of five joint tenants and that the
rent officer’s determination was a nullity as the landlord had not received the
amended application or the notice of the second consultation — As the judge
found clear evidence that the first application was made with the full
authority of all five joint tenants, it was unnecessary to consider the effect
of the non-receipt of the amended application and invitation to a second
consultation — Here again the landlord’s challenge failed
The third
question concerned two other properties of the landlord — The applications here
were made by all the tenants and the main points were the effect of lengthy
delay by the landlord in applying for judicial review and whether the judge
should exercise his discretion under Ord 53 of the RSC notwithstanding the
delay — The applications were made more than eight months after the rent
officer’s determinations as compared with the three months mentioned in Ord 53
— The reasons for the delay were partly the ill-health of the landlord’s
solicitor and partly the failure of the latter’s managing clerk — After
considering all the circumstances the judge refused to exercise his discretion
to extend the period — In so deciding, he took note, among other matters
submitted on behalf of the landlord as grounds for relief, of the non-receipt
(due in fact to the landlord’s failure to provide for the proper delivery of
mail) of a notice under para 3 of Schedule 11 to the Rent Act 1977 in regard to
a consultation — The judge pointed out that the landlord had other remedies
apart from judicial review; he could have asked the rent officer to reopen the
case (R v Kensington and Chelsea Rent Tribunal, ex parte MacFarlane) or arranged for
a reference to a rent assessment committee — Once more the landlord’s challenge
failed
In the result
all the applications were dismissed
The following
cases are referred to in this report.
Hewitt v Leicester Corporation [1969] 1 WLR 855; (1969) 67 LGR 436;
20 P&CR 629; [1969] EGD 340; 210 EG 459; sub nom Hewitt v Leicester
City Council [1969] 2 All ER 802, CA
Lloyd v Sadler [1978] QB 774; [1978] 2 WLR 721; [1978] 2 All ER
529, CA (1978) 35 P&CR 78; [1978] EGD 291; 246 EG 479, [1978] 1 EGLR 76, CA
Maltglade
Ltd v St Albans Rural District Council
[1972] 1 WLR 1230; [1972] 3 All ER 129; (1972) 70 LGR 490; 24 P&CR 32;
[1972] EGD 802; 224 EG 37, DC
R v Chief Constable of Merseyside Police, ex parte Calveley
[1986] QB 424; [1986] 2 WLR 144; [1986] 1 All ER 257, CA
R v Kensington and Chelsea Rent Tribunal, ex parte McFarlane
[1974] 1 WLR 1486; [1974] 3 All ER 390; (1974) 29 P&CR 13; [1974] EGD 317;
232 EG 585, DC
R v London County Quarter Sessions Appeals Committee, ex parte
Rossi [1956] 1 QB 682; [1956] 2 WLR 800; [1956] 1 All ER 670, CA
R v Stratford-on-Avon District Council, ex parte Jackson
[1985] 1 WLR 1319; [1985] 3 All ER 769; (1985) 84 LGR 287, CA
Regis
Property Co Ltd v Camden Rent Officer [1967]
EGD 752; (1967) 204 EG 912, DC
Turley v Panton (1975) 29 P&CR 397; 236 EG 197, [1975] 2 EGLR
75, DC
These were
applications for judicial review by Charles Felix of determinations by rent
officers relating to the following properties in north-west London of which he
was the landlord: Flat 6, 64 Parliament Hill; Flat 42A Dartmouth Park Road; 64
Parliament Hill and Flat 5, 67 Parliament Hill, NW3.
R J Moshi
(instructed by Collyer-Bristow) appeared on behalf of the applicant; G F Pulman
(instructed by the Treasury Solicitor) represented the rent officer; Andrew
Arden (instructed by Camden Community Law Centre) represented the tenants.
Giving
judgment, HUTCHISON J said: I have to determine two applications for judicial
review by a landlord of residential property in north-west London, Mr Felix, by
which he challenges the validity of the determination by rent officers of the
London Borough of Camden of fair rents in respect of four of his properties.
Some of the applications were made outside the time allowed by Ord 53, and
counsel on behalf of the tenants and the council invite me to decline on that
ground to entertain them. All the applications are, moreover, as it seems to
me, singularly lacking in merit; but, while that is material to the question of
whether I should allow the applications to proceed despite the delay and to the
exercise of my discretion as to whether to grant relief, it is of course of no
materiality to the question whether the rent officer’s determinations were
invalid for want of jurisdiction.
There are in
effect four separate cases comprised in these two applications, and while each
requires separate consideration and, to an extent, gives rise to distinct
arguments, there is a good deal of similarity between them. In particular, the
form of agreement in each case is identical and purports to grant not a tenancy
but a licence. However, for the purposes of these applications it has been
agreed between the parties that I should proceed on the assumption that each
transaction created a tenancy.
The convenient
course, it seems to me, will be for me to deal first and in detail with the
facts and the arguments relating to the first of the premises in question, Flat
6, 64 Parliament Hill, NW3. I shall then be able to deal somewhat more briefly
with the other three properties.
Flat 6, 64
Parliament Hill
By what purport
to be three licences dated July 30 1985 Mr Felix granted non-exclusive possession
of the premises to each of three people, Miss Thomas, Mr Dow and Mr Mortimer,
‘in common with the Licensor and such other licensees or invitees as the
Licensor may from time to time permit to use the rooms’. The grant was in
consideration of each of the three persons I have mentioned paying £151.66 per
month. There was a term precluding the licensor from permitting more than two
other persons (himself apart) to use the rooms. It was common ground at the
hearing that the effect of the concession already mentioned, on the issue of
whether this agreement constituted a licence or a tenancy, was that these three
agreements fell to be treated as though they created in favour of the three
grantees a single joint tenancy at a monthly rent of £454.98.
There is
uncontradicted evidence from the three tenants as to how they came to enter
into this tenancy and, since for reasons which I shall explain that evidence
suffices to dispose of the only point taken by the landlord in support of his
attack on the validity of the rent officer’s determination of the fair rent of
the premises, I must mention it in a little detail.
Mr Dow and
Miss Thomas heard of the flat through a colleague of Mr Dow, who shared it with
his girlfriend and Mr Mortimer. All three of them wanted to move: two more or
less at once and Mr Mortimer as soon as he could find somewhere suitable. Mr
Dow and Miss Thomas knew of a friend whom they thought might wish to take Mr
Mortimer’s place — in the event he did not — and so were interested. Mr Dow got
in touch with Mr Felix and went to meet him. Mr Felix told him that the rent
was £455 per month, agreed that Mr Dow and Miss Thomas could rent the flat as
soon as the others moved out and suggested that Mr Dow contact him again with a
view to a further meeting at the end of July.
Towards the
end of July Mr Mortimer told Mr Dow and Miss Thomas that he had still not found
anywhere to live and would like to stay until he did. They were agreeable. Mr
Dow telephoned Mr Felix and told him that Mr Mortimer wished to stay for a
short time until he had found somewhere else to live and that he and Miss
Thomas were agreeable to this. Mr Felix said that this was all right and a
meeting was arranged for the last Saturday in August. All three attended. Mr
Mortimer gives some particularly important evidence, saying this:
In so far as
the facts and matters deposed to in paragraphs 3 to 8 of Adrian Dow’s affidavit
are within my own knowledge, I confirm them to be true. At the meeting with the
Applicant in July, when the agreements were signed, I confirm that the
Applicant was aware that I would be staying in the flat only temporarily for a
couple of months with Adrian Dow and Tamsin Thomas, and that I would be moving
out once I had found other accommodation, and that Adrian and Tamsin would
remain in the flat thereafter.
In November
1985 Mr Mortimer found somewhere and moved out. Mr Dow and Miss Thomas refunded
to him his deposit (equal to a month’s rent) and thereafter assumed liability
for the entire rent.
By an
application dated November 26 1985 Miss Thomas and Mr Dow sought determination
of a fair rent. They completed the application form in their names, describing
themselves as joint tenants and stating that the current rent was £454.98 per
month. The rent officer served on Mr Felix appropriate notification of the
application, enclosing a copy, and invited Mr Felix to a consultation in the
ordinary way. Mr Felix, though admittedly he received that notification and
invitation, did not respond or attend the consultation. On April 10 1986 the
rent officer determined the rent at £230 per month and notified Mr Felix of
this decision. The application for judicial review is dated July 10 1986. The
sole point taken (apart from the licence/tenancy point, with which I am not
concerned) was that as the application was made by only two of three joint
tenants, the determination was made in excess of jurisdiction and was,
therefore, a nullity.
The relevant
statutory provision is section 67(1) of the Rent Act 1977, which provides as
follows:
An
application for the registration of a rent for a dwelling-house may be made to
the rent officer by the landlord or the tenant, or jointly by the landlord and
the tenant, under a regulated tenancy of the dwelling-house.
Mr Moshi, on
behalf of Mr Felix, contends that ‘the tenant’ means, in a case such as the
present, all the joint tenants and that, since Mr Mortimer was a joint tenant
and was not a party to the application, there was a failure to comply with the
statutory provisions and that accordingly there was no valid application before
the rent officer. He relies on the decision of the Divisional Court in Turley
v Panton (1975) 29 P&CR 397, where it was held, in relation to the
provisions of the Rent Act 1968 (which are differently worded but to the same
effect), that an application by one of four joint tenants was not an
application which the rent tribunal could entertain and that accordingly the
rent tribunal’s decision was a nullity.
Mr Arden, who
appears for all the tenant respondents, and Mr Pulman, for the rent officer,
accept that this case establishes that the application must, ordinarily at
least, be made by all joint tenants and that the ratio of the decision is that
the tenants must act together, it being inconceivable that it can have been contemplated
that one tenant might apply for registration of a rent, to be followed by
another and another and so on. They point out, however, that Turley’s
case was one where clearly the applicants were not acting together. They
advance a number of arguments.
First, it is
said that there is no reason why one or more tenants should not make the
application on their own behalf and as agents for all the other tenants. The
unnamed principals will then be bound by the determination and the possibility
of multiple applications does not exist. Accordingly, if, as they contend is
the case, it is legitimate to infer that Mr Dow and Miss Thomas were clothed
with authority to make the application on Mr Mortimer’s behalf as well as their
own, the application was a proper one, the absence of his name from the
application form being a breach not of a mandatory requirement of the statute
but merely of the directory requirements embodied in the prescribed form. The
application was made on behalf of all the tenants, even if only two of
the three were named in the form. They argue that, in the circumstances
disclosed by the evidence I have quoted above, it is to be inferred that Mr
Mortimer had on his departure impliedly authorised them to do all necessary or
proper acts in connection with the tenancy on his behalf. They cite the
proposition to be found in Article 8 in Bowstead on Agency, 15th ed, to
the following effect:
Agreement
between principal and agent may be implied in a case where each has conducted
himself towards the other in such a way that it is reasonable for the other to
infer from that conduct consent to the agency relationship.
There is a
degree of artificiality about all this. When Mr Mortimer departed he believed,
the evidence leads one to infer, that his fellow tenants and the landlord all
assented to his doing so on the basis that he should thenceforth cease to be a
tenant and the relationship should continue to subsist between Mr Dow and Miss
Thomas on the one hand and Mr Felix on the other alone. Not envisaging any
continued liability, he cannot have contemplated the necessity to authorise
them to do anything on his behalf. Mr Moshi, disputing the notion of agency,
argued along these lines. However, I cannot escape the conclusion that, had Mr
Mortimer been alive to the fact that he remained a tenant, primarily liable
under the agreement — if he did: the respondents’ second and main argument is
that he did not — he would certainly have assented to the proposition that Mr
Dow and Miss Thomas were authorised to act on his behalf in all matters
relating to the tenancy. I think I am entitled to take judicial notice of the
fact that, in London at least, flat sharing is extremely common and that fairly
frequent comings and goings are by no means unusual and must often take place
without the formalities appropriate to the surrender by one joint tenant and a
regrant to those remaining. In such situations, if the fortuitous departure of
one of the tenants, perhaps in circumstances where he cannot be traced, is to
prevent those remaining having recourse to the rent officer, it would be
regrettable. These reflections make me the more ready to accept the
respondents’ argument on implied agency and to hold that it would be proper to
infer that Mr Dow and Miss Thomas were making this application on Mr Mortimer’s
behalf as well as their own. However, there are other grounds which, like
counsel for the respondents who advanced them, I prefer for saying that the
applicant’s challenge to the rent officer’s jurisdiction fails.
Counsel’s
second argument, developed, as was the first, by Mr Arden and adopted by Mr
Pulman, was that the evidence properly interpreted leads to the conclusion that
from the outset the arrangement was one involving a grant to Dow, Thomas and
Mortimer to be followed, upon Mortimer’s departure, by a joint tenancy enjoyed
by Dow and Thomas alone. It seems to me that this contention is well founded. I
do not see how one can reasonably construe the evidence of the tenants, Mr
Mortimer in particular, save on the basis that they and the landlord were
agreeing that Mr Mortimer might remain temporarily as a tenant, would shortly
be moving out and that thereafter the other two would be the tenants. There is
nothing to prevent parties reaching such an agreement, and I hold that they did
so in this case. Accordingly, at the time the application was made the only
joint tenants were Miss Thomas and Mr Dow.
In the
circumstances, I do not feel that I need explore or express a concluded view
upon the alternative argument that Mr Arden advanced, to the effect that there
had been an implied surrender and regrant by operation of law; nor the further
argument, based on the decision of the Court of Appeal in Lloyd v Sadler
[1978] 2 All ER 529 (which decided that where one of two protected joint
tenants ceased to occupy, the other was nevertheless entitled to be regarded as
the protected tenant with a right to a statutory tenancy on termination of the
contractual term) to the effect that the strict rules applicable to joint
tenants cannot have been intended by the legislature to apply to cases such as
the present.
If I am wrong
in accepting the validity of the two contentions advanced by the respondents
upon which I have expressed an opinion, there remains the question of
discretion. As to that, and despite my view that the landlord’s arguments are
wholly without merit, I should not have felt able to refuse relief as a matter
of discretion had I concluded that he was otherwise entitled to it. If the rent
officer did not have jurisdiction, it would not be right to refuse as a matter
of discretion to quash his decision.
Flat 42A,
Dartmouth Park Road
I turn now to
the other premises comprised in the application dated July 10 1986: Flat 42A,
Dartmouth Park Road. I can deal with these quite briefly. The forms of
agreement, variously dated September 23, 24 and 25 1985, but all entered into
at the same time, were similar to those already considered. The five joint
tenants were Miss Wilde, Mr Curry, Mr Rock, Miss Bowyer and Miss
Mardel-Ferreira. The rent was £156 per month each, a total of £780 per month.
On January 12 1986 application was made on the prescribed form for registration
of a fair rent. The relevant parts of the application were completed as
follows:
Q Name of tenant? A Hilary Wilde. Q Does the tenant share any accommodation with
another tenant? A Yes the flat is shared between 5 people.
Q What repairs are the responsibility of
the tenant? A Breakages for which we were directly
responsible. Q Give details of the other
terms of the tenancy? A Our landlord has constantly avoided giving us
our tenancy agreements therefore this is a little difficult to answer. Q What is the rent now? A £156
per month. Q Does this include any
rates? A
We don’t pay rates separately.
The application
was signed by Hilary Wilde as tenant.
The rent
officer notified Mr Felix of this application and sent a copy of it to him. It
was admittedly received, as was a letter of February 19 1986 fixing a
consultation for February 27. Mr Felix did not, however, attend the
consultation, but all the tenants did. The rent officer took the opportunity to
get the other four to add their names and signatures to the form, and sent a
further letter, dated February 28 1986 but despatched by recorded delivery on
March 3, to Mr Felix enclosing a copy of the amended form and proposing a
consultation for March 17. That letter was returned on March 26 annotated to
the effect that it had not been called for. It seems that, despite his
extensive property interests, Mr Felix does not maintain an address at which
his business mail is delivered in the normal way.
The second
preliminary hearing took place on March 17. Mr Felix, of course, did not attend,
though the tenants did. On April 3 there was an inspection, of which notice was
sent to Mr Felix on March 17, but he did not attend. On April 16 1986 the rent
officer determined the fair rent at £368 per month and Mr Felix was notified of
this decision.
Two points are
taken by the landlord. First, it is said that the application which was served
on him was made by only one of five joint tenants and that accordingly it did
not comply with the statute and any determination based on that application was
a nullity. Second, it is said that neither the amended application nor the
notice of the meeting of March 17 was ever received and that accordingly the
rent officer’s determination was a nullity for that reason. Reliance is placed
on the decision of the Divisional Court in Regis Property Co Ltd v Camden
Rent Officer [1967] EGD 752.
In my view,
however, it is unnecessary to rehearse or decide upon the validity of any of
the arguments based upon the non-receipt of the amended notice and the
invitation to a consultation on March 17 because a reference to the evidence of
the respondents, again uncontradicted, clearly shows that Miss Wilde was
authorised by the other four tenants to make the application, and that in
completing133
and signing the unamended form she was acting as their agent — something which
the contents of the form also tend to confirm. In his affidavit Mr Curry says:
In about
November/December 1985 Hilary, Andrea, Stephen, Lucinda and I discussed between
us whether we should apply to register a fair rent in respect of the flat.
Eventually we decided that we should and it was agreed that Hilary would
complete the necessary paperwork.
All the others
in terms assert the truth of this evidence. In my view, one could not have a
clearer case of agency, and the fact that the form did not include an explicit
reference to Miss Wilde’s acting as agent for the other four, if it is a matter
for criticism at all, certainly does not go to jurisdiction. Clearly the
application was made by all the joint tenants, and of that application,
and of the meeting provoked by it, Mr Felix received notice. That is enough to
dispose of the case in relation to 42A Dartmouth Park Road.
64
Parliament Hill and Flat 5, 67 Parliament Hill, NW3
It is
convenient to deal with both these properties together because they give rise
to precisely the same problems. No question of parties arises, as in each case
the applications were made, explicitly, by all the tenants. They were,
moreover, made and determined on the same date. The questions which do arise
for consideration are:
1 Are the claims barred by delay? If not
2 Was there service of notice of the
applications and, if not, does this mean that the rent officer’s determination
of a fair rent was a nullity or otherwise invalid?
3 Even if there were service of notice of the
applications, was there a failure to serve notice of a consultation and, if so,
what is the effect of such failure?
4 Discretion.
Order 53
requires application for judicial review to:
be made
promptly and in any event within three months from the date when grounds for
the application first arose unless the court considers that there is good
reason for extending the period within which the application shall be made.
The
determinations of fair rent in each case were made on July 30 1986 and promptly
sent to the applicant, who actually opened them on August 5: he had been away.
His case is that this was the first he knew of any applications for
registration and he at once instructed his solicitors to take the necessary steps
to have the determinations quashed. The applications were not made until April
9 1987, whereas they should have been made at the latest by October 30 1986. Mr
Pulman advanced forceful and telling arguments as to why the excuses put
forward for this excessive lapse of time were invalid and the matter deserves
careful analysis.
The grounds of
application assert that the reasons for the failure to make the application
within three months are set out in the affidavit of the applicant’s then
solicitor, Mr Shapiro. He confirms that, in relation to these properties, he
was instructed on August 6 1986, and says that he formed the view that the
determinations should be quashed. He spoke to counsel the following day and
instructed his managing clerk to issue an application for judicial review as
soon as possible. At the time Mr Shapiro was in rather poor health and had to
rely heavily on his managing clerk. He says that the latter assured him that
the applications had been issued and that it was not until December 3 1986 that
he discovered that they had not. The managing clerk had left his employment in
September 1986.
On December 31
Mr Shapiro’s health was such that he ceased practice on his own account and
transferred all his cases to Messrs Collyer-Bristow, whom he joined as a
consultant. Exhibited to his affidavit are medical certificates confirming his
account of his ill-health and the events of August 7.
Mr Pulman
points out that there is no explanation whatsoever for the delay between
January 1 and April 9 — in itself a period exceeding three months. The failure
of the clerk to issue the proceedings had been known since December 3. Even in
relation to the earlier period, Mr Pulman submits, the excuse put forward is
not particularly impressive: allowing that Mr Shapiro was ill, the managing
clerk, in whose competence he obviously reposed trust, and as to whom there is
no reason (apart from this particular failure) to assume incompetence, was in
serious breach of duty.
Mr Pulman
argues that in the circumstances the application is made so far out of time
that relief should be refused on that ground alone. There is, he submits, no
good reason for any of the delay from January 1 to April 9 1987. Cases such as
the present, he argues, are pre-eminently cases where the applications should
be made promptly. A decision of a rent officer, once taken, is acted and relied
upon by various people, not least the tenants who believe that their obligation
is only to pay the reduced rent. If the decision is quashed, the longer the delay
has been and the more adverse are the consequences for the tenant.
Mr Pulman
referred me to R v Stratford-on-Avon District Council, ex parte
Jackson [1985] 1 WLR 1319, in which the Court of Appeal considered delay in
cases where judicial review was sought. He relied on the judgment of Ackner LJ,
as he then was. At p 1322 H the learned lord justice said:
The essential
requirement of the rule is that the application must be made ‘promptly’. The
fact that an application has been made within three months from the date when
the grounds for the application first arose does not necessarily mean that it
has been made promptly.
While it is
true that some — though in my judgment an inadequate — explanation is advanced
for the delay during the initial three months’ period, this passage serves to
emphasise that speed is of the essence and that the material question for me is
whether, having regard to the lapse of no less than nine months between the
decision and the making of the application, it has been shown that ‘good
reason’ exists for that delay, in particular for the period between December 6
1986 and April 9 1987. I seriously doubt whether the failure of the managing
clerk to carry out Mr Shapiro’s instructions constitutes ‘good reason’ —
professional advisers are employed not as a handicap to but as a means of
expediting and facilitating the conduct of proceedings. Even if it does, there
is no reason whatever, let alone good reason, advanced for the delay from
January 1. In the circumstances I do not consider that I ought to exercise the
discretion I am given by the rules to extend time and I refuse these two
applications on the ground that they have not been made promptly and that no
good reason exists for allowing them to be made in the face of what I consider
to be undue delay for which no good reason has been advanced.
In the
circumstances I can consider relatively briefly the grounds upon which reliance
is placed. What the evidence establishes is this: 1 The rent officer who dealt
with both applications was Mr J McWilliam Smith. They were both received on May
12 1986 and allocated to him. On June 5 he wrote to all parties, including Mr
Felix, sending copies of the applications and inviting their attendance at a
preliminary hearing, to enable him to consider whether he had jurisdiction, on
June 19. The letters to the applicant were addressed to him at his correct
address, 12 Reddington Road NW3, and were sent by recorded delivery. They were
not returned nor was any notification received to indicate that they had not
been delivered. In the course of the investigation in connection with the
preparation of this case, the applicant’s solicitors made inquiry of the Post
Office as to whether various letters — to some of which I shall refer in a
moment — had been delivered, but that inquiry did not extend to either of these
letters. In his affidavit the applicant says that the first intimation he
received of the applications was the notification of the registration of a fair
rent, thereby implicitly asserting that he did not receive these letters.
However, the fact that the Post Office did not return them, that no inquiry has
been made of them by the applicant and that the presumption is that they were
delivered, leads me to accept Mr Arden’s invitation to infer that they were
received. As his inactivity in relation to the other premises shows, there is
no reason to believe that Mr Felix’s natural reaction would have been to attend
the meeting of June 19, so in my view his failure to do so does not afford any
reason against drawing this inference.
2 There is a difference of recollection between
Mr Smith — who says no one attended the meeting on June 19 — and Mr Ewen [one
of the tenants] — who says that he alone, with Mr Smith, did so — but what is
undoubted is that neither Mr Felix nor any of the other tenants did. Mr Smith,
quite properly, decided he had jurisdiction.
3 By letters in standard form written on June
19 Mr Smith wrote to the parties inviting them to a consultation meeting on
July 4. Those to Mr Felix were again sent by recorded delivery and were
returned undelivered, marked ‘Not called for’, on June 28. Mr Smith says he was
not aware of any other addresses he could write to and it has to be remembered
that the address employed was the correct one. It is said, no doubt correctly,
that the chief rent officer for Camden was aware of the identity of solicitors
who had acted in the past for Mr Felix in relation to such matters, but there
were placed before me letters showing that attempts to serve in this way in the
past had met with the request to serve the client direct. Anyway, there is no
evidence that134
Mr Smith knew of the identity of the solicitors.
4 On July 4 Mr Smith proceeded to inspect the
premises and determine the fair rent, of which notification of the registration
was sent to Mr Felix and received by him, as already described, early in
August.
Mr Moshi
complains of the non-receipt of notice of the application, but that issue I
have determined adversely to him. Furthermore, even if I may not legitimately infer
that the letters of June 5 were received by Mr Felix, the position undoubtedly
is that so far as the rent officer was concerned he was at all material times,
and in particular on June 19 and July 4, entitled to assume that service had
been regular and effective.
Mr Moshi seeks
to rely, alternatively, on the admitted non-receipt, known to the rent officer,
of the letters of June 19; letters which, as he points out, contain notice of
matters required to be given to the landlord by the provisions of para 3 of
Schedule 11 to the Rent Act 1977. Basing himself on three cases, he asserts
that in the circumstances there was no effective service of those notices.
Those cases — R v County of London Quarter Sessions Appeals
Committee, ex parte Rossi [1956] 1 QB 682, Hewitt v Leicester
Corporation [1969] 1 WLR 855 and Maltglade Ltd v St Albans Rural
District Council [1972] 1 WLR 1230 — appear to me to support Mr Moshi’s
contention, their ratio being that, where notice has been returned showing that
the document in question has not been received by the addressee, this is in
effect proof of non-service and overrides any presumptions that might otherwise
be operative. It is difficult to see how it could be sensibly argued that Mr
Felix had notice of the hearing of July 4.
However, I
feel impelled to reject Mr Moshi’s invitation to quash the decision of the rent
officer on the strength of that lack of notice.
My reasons for
refusing relief — delay, which I have already dealt with, apart — are twofold:
1 I accept as correct the submissions made by
counsel for the respondents that there were other and more appropriate remedies
to which the applicant could and should have resorted. The case of R v Kensington
and Chelsea Rent Tribunal, ex parte MacFarlane [1974] 1 WLR 1486 shows
that, in circumstances such as these, the rent officer has power to reopen the
matter at the request of the party who, through lack of notice, has not
attended; at any rate where he is satisfied that there is a good argument on
the merits for allowing the absent party to be heard. In these proceedings the
issue of licence or tenancy has not, because of the concession made, arisen,
but it is clear from the evidence that that is the real matter Mr Felix wished
to dispute. As to that, however, he had, so far as the rent officer knew and,
in fact, as I have held, notice of the meeting at which that issue was to be
determined. Had he wished to raise an argument on the quantum of rent, as he
asserts, he could and should have invited the rent officer to allow the matter
to be reopened, but he never did so. As what I shall say in relation to the
second reason will show, it is to be inferred, that this is because in truth he
had nothing to say on the issue of the amount of rent. I have in mind, in this
connection, the words of Glidewell LJ in R v Chief Constable of
Merseyside Police, ex parte Calveley [1986] 1 All ER 257, where he said at
p 267:
. . . where
an application is made for judicial review but an alternative remedy is
available, an applicant should normally be left to pursue that remedy. Judicial
review in such a case should only be granted in exceptional circumstances.
To the same
effect is the case of Ex parte Swati at p 717 in the same volume.
Mr Felix, as
the evidence shows, is not an amateur landlord — quite the contrary. I cannot
entertain any real doubt that, had he really wished to be heard on the issue of
the quantum of rent, the first thing that would have occurred to him would have
been to invite the rent officer to reopen the matter.
Furthermore,
there is provision in Schedule 11 as amended for a reference, in effect an
appeal, by a dissatisfied party to the rent assessment committee. It is true
that their determination operates only from the date it is made and, therefore,
such a reference may be thought not to afford so satisfactory an alternative
remedy as an invitation to the rent officer to reopen the matter. Perhaps it is
in connection with my second reason that the applicant’s failure to invoke this
right can be said to be more significant.
2 In any event, I consider that this is a case
where, even if a prima facie right to relief were established, I should refuse
it as a matter of discretion. As Mr Pulman pointed out, nowhere in the
applicant’s affidavits is it suggested that he would have wished to say
anything, or had anything to say, on the issue of the amount of rent: there is
merely the bare assertion that he was deprived of the opportunity to make
representations on that topic. There is no indication of what he would have
said, or anything going to the merits of the issue. Moreover, the fact that in
the case of those properties in respect of which he did receive notice he did
not appear lends support to the respondents’ contentions in this regard.
Mr Arden,
supported by Mr Pulman, invited me also to view the issue of discretion in a
rather wider context. If relief were granted in these proceedings, the tenants
— who on the basis of the rent officer’s determination would prima facie seem
to be tied to contractual rents far above the level of appropriate fair rents —
would have to mount fresh applications, the benefit of which would accrue to
them only when the rent officer determined them, but meanwhile they would have
to pay all the arrears at the contractual rate. Counsel invite me to say that
such an outcome is material to the question of how I should exercise my
discretion. They submit, moreover, that the whole conduct of the applicant
militates against the grant of relief, pointing to his failure in the other
cases to take the issue of parties, or attend the consultations of which he
admittedly received notice, or take proper and business-like steps to ensure
receipt of mail posted to what admittedly was his correct address, or approach
the rent officer to reopen the matter, or seek a reference to the rent
assessment committee, or make representations in these proceedings on the issue
of the level of rents. I consider that there is substance in these submissions
and that they can properly be relied on as additional grounds in support of an
exercise of discretion against the applicant.
Accordingly,
if contrary to my conclusions on the substantive issues, and that which I have
reached on the issue of delay, these were otherwise cases in which it would
have been open to me to grant the relief sought, I consider that I should as a
matter of discretion refuse it, and I would do so.
After a
discussion the judge took the course, somewhat unusual in this type of
proceedings, of awarding two sets of costs. The landlord was ordered to pay the
costs both of the rent officer and the tenants.