Baker v MacIver and another
(Before Lord Justice DILLON and Mr Justice HOLLINGS)
Rent Act 1977 — Case 9 in Schedule 15 to the Act — Issue as to greater hardship — Appeal by tenant from decision of county court judge — Judge held that tenant had not discharged the onus which rested on him of proving greater hardship — Judge misdirected himself — The factors of greater hardship, particularly the financial factor and the availability of105 alternative accommodation, were all on the side of the tenant — Although the question of greater hardship was pre-eminently one for the county court judge, the present was a case where the Court of Appeal was entitled and bound to interfere
The landlord,
respondent to the present appeal, let a dwelling-house, Pleasant View, to the
tenant, the appellant, on a monthly tenancy, protected under the Rent Act 1977
— The tenant had entered into a ‘gentleman’s agreement’ with the landlord
before the tenancy began that he would give up possession on three months’
notice if the landlord required the house — At the time of the letting the
landlord was employed as a farm manager and occupied, as a tenant protected
under the Rent (Agriculture) Act 1976, a house known as Pilstone Farmhouse —
Unfortunately, the landlord later became redundant, his employer’s son taking
over the management of the estate, and the landlord was given notice to quit
Pilstone Farmhouse — As a consequence the landlord gave the tenant notice to
quit Pleasant View — The landlord’s employer was not ungenerous — Apart from a
small redundancy payment, the landlord was offered £20,000 for giving up his tenancy
and alternative accommodation in the shape of a cottage, which would be
protected, a short distance from the employer’s own house — The landlord,
however, preferred to seek to recover his own house, one reason being that to
move so near the house of his ex-employer and the latter’s son would tend to
keep alive the feelings of distress at his redundancy
The county
court judge, in proceedings for possession by the plaintiff landlord, decided
all three essential matters in the plaintiff’s favour, namely that it was
reasonable for a possession order to be made, that the premises were reasonably
required by the plaintiff for himself and that the tenant had not discharged
the onus of proof that there would be greater hardship on him if the order were
made — The judge gave considerable attention to the question of greater
hardship, which was the main issue in the subsequent appeal — He set out a
number of tests in the course of which he said that, in regard to stress, there
was nothing to choose between the parties and that the fact that the tenant
would have to move was not in itself evidence of hardship — In the end he came
down in favour of the plaintiff and made an order for possession — The
defendant tenant appealed
Rent Act 1977 — Case 9 in Schedule 15 to the Act — Issue as to greater hardship — Appeal by tenant from decision of county court judge — Judge held that tenant had not discharged the onus which rested on him of proving greater hardship — Judge misdirected himself — The factors of greater hardship, particularly the financial factor and the availability of105 alternative accommodation, were all on the side of the tenant — Although the question of greater hardship was pre-eminently one for the county court judge, the present was a case where the Court of Appeal was entitled and bound to interfere
The landlord,
respondent to the present appeal, let a dwelling-house, Pleasant View, to the
tenant, the appellant, on a monthly tenancy, protected under the Rent Act 1977
— The tenant had entered into a ‘gentleman’s agreement’ with the landlord
before the tenancy began that he would give up possession on three months’
notice if the landlord required the house — At the time of the letting the
landlord was employed as a farm manager and occupied, as a tenant protected
under the Rent (Agriculture) Act 1976, a house known as Pilstone Farmhouse —
Unfortunately, the landlord later became redundant, his employer’s son taking
over the management of the estate, and the landlord was given notice to quit
Pilstone Farmhouse — As a consequence the landlord gave the tenant notice to
quit Pleasant View — The landlord’s employer was not ungenerous — Apart from a
small redundancy payment, the landlord was offered £20,000 for giving up his tenancy
and alternative accommodation in the shape of a cottage, which would be
protected, a short distance from the employer’s own house — The landlord,
however, preferred to seek to recover his own house, one reason being that to
move so near the house of his ex-employer and the latter’s son would tend to
keep alive the feelings of distress at his redundancy
The county
court judge, in proceedings for possession by the plaintiff landlord, decided
all three essential matters in the plaintiff’s favour, namely that it was
reasonable for a possession order to be made, that the premises were reasonably
required by the plaintiff for himself and that the tenant had not discharged
the onus of proof that there would be greater hardship on him if the order were
made — The judge gave considerable attention to the question of greater
hardship, which was the main issue in the subsequent appeal — He set out a
number of tests in the course of which he said that, in regard to stress, there
was nothing to choose between the parties and that the fact that the tenant
would have to move was not in itself evidence of hardship — In the end he came
down in favour of the plaintiff and made an order for possession — The
defendant tenant appealed
The appeal
turned on the judge’s finding as to greater hardship and the Court of Appeal
referred to a number of authorities about the way in which the court should
approach a county court judge’s decision in possession cases, particularly
where the issue was one of greater hardship — It was clear that this was
pre-eminently a question for the judge and some recent cases indicated that to
justify interference with his finding the appellant must virtually show that
the decision was perverse, eg Hodges v Blee — The court in the present case did not
find their task easy — In their view the most relevant matters before the judge
were the respective financial positions of the parties and the availability of
alternative accommodation — Under both heads there was great disparity and it
was the tenant, the appellant, who would suffer the greater hardship — As
regards accommodation, the landlord, the present respondent, was offered
accommodation fully protected under the 1976 Act, whereas such accommodation as
was available to the appellant was of limited security — The respective
financial positions of the appellant and respondent were also wholly out of
balance
It was
clearly the view of both members of the Court of Appeal that the judge had
arrived at a finding on greater hardship which was the opposite of that
supported by the evidence — The judge had misdirected himself in drawing up
‘the statutory balance sheet’ — The court was entitled and bound to interfere
and the appeal must be allowed
The following
cases are referred to in this report.
Chandler v Strevett [1947] 1 All ER 164, CA
Coplans v King [1947] 2 All ER 393, CA
Darnell v Millward [1951] 1 All ER 88, CA
Hodges v Blee (1987) 20 HLR 32; [1987] 1 EGLR 119; 283 EG 1215, CA
Sims v Wilson [1946] 2 All ER 261; 62 TLR 485, CA
Smith v Penny [1947] KB 230; [1946] 2 All ER 672; (1946) 62 TLR
750, CA
This was an
appeal by both defendants (although referred to in the singular in the
judgment) Iain Ronald Steele MacIver and Glenys Alveira MacIver, from the
decision of Judge Glyn Morgan, at Chepstow County Court, in favour of the claim
by the plaintiff, Thomas Trevor Baker, to possession of the dwelling-house
known as Pleasant View, The Steps, St Briavels, Gloucestershire.
Charles
Parsley (instructed by Edwards Geldard Piesse, agents for Edwards Geldard
Williams & Tweedy, of Monmouth, Gwent) appeared on behalf of the
appellants; Edward Cole (instructed by Jacklyn Dawson & Meyrick Williams,
of Newport, Gwent) represented the respondent.
Giving the
first judgment at the invitation of Dillon LJ, HOLLINGS J said: This is an
appeal from an order made by His Honour Judge Morgan on October 10 1989 whereby
he made an order for possession against the defendant, Mr MacIver, of a
dwelling-house known as Pleasant View, The Steps, St Briavels in
Gloucestershire. He made a further order that possession should be given later
on January 1.
The plaintiff,
Mr Baker, occupied a house known as Pilstone Farmhouse, Llandogo in Monmouth.
Mr Baker had inherited Pleasant View in about 1958 and had let it to the
defendant in November 1974. The rent to begin with was £50 per month, rising
eventually to £80. The judge found that before the defendant became a tenant,
he had agreed on a ‘gentleman’s agreement’ basis that he would leave at three
months’ notice if the plaintiff ever requested the use of the house.
The plaintiff
was at the time of the letting in regular employment as a farm manager for
General Hopkinson of the Bigsweir Estate in St Briavels. He occupied Pilstone
Farmhouse, owned by his employers, rent and rate free. He and his wife are
still there, he having been in the employment of General Hopkinson for upwards
of 25 years.
However, in
January 1989 the plaintiff was made redundant. As the learned judge found, this
was much to his distress and shock. He was given notice to quit Pilstone
Farmhouse. As a consequence the plaintiff served notice on the defendant in
respect of Pleasant View.
It is common
ground that at that time both the plaintiff Mr Baker and the defendant Mr
MacIver were protected tenants under the Rent Acts; in the case of the
plaintiff under the Rent (Agriculture) Act 1976 and in the case of the
defendant under the Rent Act 1977.
When he was
made redundant the plaintiff received from General Hopkinson a redundancy
payment of some £3,854 and he was made an offer by the general to give up his
protected tenancy on payment of £20,000, with £5,000 commission if he showed
round a prospective purchaser, though none had, at the time of the judgment,
appeared. Pilstone Farmhouse was put on the market for £310,000.
General
Hopkinson has offered the plaintiff other accommodation which he owns in the
form of a cottage, Bigsweir Cottage, which is very close to, indeed some 20
yards from, Bigsweir House, where the general lives. That offer is of a
protected tenancy under one or other of the Rent Acts.
The plaintiff,
as I have said, was distressed by the fact of having been made redundant. His
redundancy arose out of the fact that the general’s son had taken over the
running of the estate which had hitherto employed the plaintiff as the farm
manager. As the learned judge found, this was a source of stress and pain. The
plaintiff claimed before the learned judge that it would be too distressing for
him to move to Bigsweir Cottage, which was so close to where the general and
his son lived.
The plaintiff,
in order to succeed in obtaining possession, has to establish an appropriate
ground of possession under the Rent Act 1977. That is in this case a
discretionary ground which is to be found in Case 9 of Schedule 15 to the 1977
Act, that the house occupied by the defendant is reasonably required by the
plaintiff for him as a residence for himself.
An exception
is provided by Schedule 15 Part III, in that:
A court shall
not make an order for possession . . . by reason only [of this ground] if the
court is satisfied that, having regard to all the circumstances of the case,
including . . . whether other accommodation is available for the
landlord or the tenant (my emphasis), greater hardship would be caused by
granting the order than by refusing to grant it.
The onus of
proof therefore of such hardship is upon the tenant.
By his
judgment the learned judge considered the pre-requisites for his discretion to
grant possession in favour of the plaintiff landlord. He found as the first
requisite that it was reasonable for an order for possession to be made, the
onus of proof being upon the plaintiff. Second, he found that the premises were
reasonably required by the plaintiff for himself, and again the onus of proof
was upon the plaintiff. Third, he found in respect of greater hardship that the
tenant had not discharged the onus of proof upon him that there would be
greater hardship on him if the order were made. I should add that the claim for
possession was also based on breach of covenant to pay rent under Case 1 of
Schedule 15 to the Act. It is common ground that the rent was in arrears, but
it was also common ground that if an order for possession were based on that
ground only, it would not be appropriate to make more than a suspended order
for possession. The court has been told that the arrears which were adjudged
due in the form of mesne profits, at the same time as the judgment for
possession, have since been discharged. The appeal therefore concerns the
application of the requirements of Case 9 only.
As I have
said, His Honour Judge Morgan decided all three questions in respect of Case 9
in favour of the plaintiff and accordingly granted an immediate order for
possession, with an appropriate order with regard to rent.
The judge
plainly considered that this was a difficult case. He reserved and wrote his
judgment and the court has a copy. At pp 3 and 4 he held that the plaintiff had
established that Pleasant View was reasonably required as a dwelling-house for
himself and his wife. He referred to the plaintiff now having ceased employment
and to his need for capital for a business which he has started as a dealer in
livestock. In considering the requirement that the premises should be
reasonably required, he also took into account the fact that if the plaintiff
moved into Bigsweir Cottage, which had been offered to him, he would be so
close to General Hopkinson that he would be caused distress, which arose from
the circumstances of his dismissal after so long in the general’s employment.
He took into account the fact that Pleasant View was owned by the plaintiff and
he rejected any suggestion that he wanted possession of that house in order to
sell it.
The judge then
turned to the issue of greater hardship, and here his judgment sets out a
number of tests. He considered first the financial position of the parties. He
found that the financial position of the plaintiff was considerably more
advantageous than that of the defendant. He referred to the payments promised
by the general. He referred to investments of some £10,000 which were held by
the plaintiff. The plaintiff also had a building society account for £5,000. He
also found that the plaintiff had expectations in respect of half the estate of
his 80-year-old father. He also found that the plaintiff’s present income was
‘not very great’ and that his wife had no capital or investments to speak of.
Turning to the
defendant, the judge found that he was now only in part-time employment,
earning £40 a week, and that his employment potential was limited. However, Mr
MacIver’s wife was in regular employment earning £7,000 a year. But neither the
defendant nor his wife had any savings or investments.
He then turned
to the efforts made by the defendant to find accommodation. This has been the
subject-matter of submissions by both counsel in this appeal. He found that the
defendant had made very little effort to find accommodation, but he also found
that suitable accommodation was not readily available and that the defendant
would have low priority. He had evidence from a surveyor called on behalf of
the plaintiff that accommodation does from time to time become available,
although at a rent much in excess of what the defendant was currently paying
but a rent which the defendant ‘could just about afford’. He said that he did
not accept that the situation was quite so hopeless as had been contended. He
accepted the evidence of Mr G F Foxwell FRICS FAAV, the plaintiff’s surveyor,
that in the relevant area, so far as the defendant was concerned, property does
from time to time become available.
He then went
on to consider the physical and mental health of the parties. He referred to
the fact that the plaintiff said it would be stressful if he lived at Bigsweir
Cottage. He referred to the fact that the defendant had conquered his addiction
to alcohol much to his credit, though there was a suggestion that if an order
for possession were made it might possibly cause a relapse. He felt unable to
give that suggestion much weight. The judge made this finding, which has been
the subject-matter of considerable submissions in this appeal:
In my
judgment there is nothing to choose between stress to either party if order
were or not made.
But he went on
immediately to say:
I am rightly
reminded by [counsel] that the fact that the tenant will have to move is not of
itself evidence of hardship and that there must be some other factor.
He then
considered the position of the respective wives, and there is no finding of
significance there. He went on to consider the effects of making or refusing an
order for possession. He bore in mind that the plaintiff had a protected
tenancy available, though he would be paying rent for Bigsweir Cottage which
may exceed the rent he would receive for Pleasant View and, as was the fact,
the plaintiff would be paying rent indefinitely when he could occupy his own
house. But so far as the defendant was concerned he would have no accommodation
to go to immediately and little or no chance of finding council accommodation
in the immediate future. There was some chance of obtaining rented
accommodation within 10 miles of Monmouth, but at a rent far in excess of what
he was presently paying. He found it was more difficult for the defendant to
find other accommodation in the vicinity of Monmouth, if an order for
possession was made, than for the plaintiff to obtain other accommodation in
the area suitable to carry on his business if an order was not made. The
plaintiff’s evidence, which was accepted by the learned judge, was that he
would wish to move into Pleasant View with a view to more easily carrying on
his business there.
The judge then
considered certain other factors which he had been urged by the plaintiff to
take into account and he came to this conclusion so far as proof of greater
hardship was concerned:
Having regard
to the foregoing matters and to all the circumstances of the case, I am of the
view that whichever way the case is decided, hardship will be caused to one
party or the other. Burden of proving greater hardship is on the defendant. I
hold that he has failed to establish on the balance of probability that greater
hardship would be caused by granting this order than by my refusing to grant
it.
He then went
on to deal with the question whether it was reasonable to make the order. He
decided that it was and there is no argument as to that. This appeal turns upon
the learned judge’s finding as to greater hardship.
Before I turn
to consider his decision in that regard, I refer to some of the authorities to
which counsel have referred this court with regard to the way in which the
Court of Appeal should approach a decision made by a learned judge in possession
cases, particularly where the issue is one of greater hardship.
In Coplans
v King [1947] 2 All ER 393, in his judgment at p 394, Lord Greene MR
referred to a passage in the judgment in Chandler v Strevett
[1947] 1 All ER 164 in which Scott LJ asked this question:
Did
Parliament intend to leave that very difficult task [the task of estimating
comparative hardship to either side] in its entirety and finally to the county
court judge to the exclusion of the Court of Appeal and even of the House of
Lords?
Lord Greene
continued:
With the
greatest possible deference, I should have thought that that was the very thing
that Parliament did intend in view of the class of persons that the statute was
intended to benefit. The idea that the pressure of comparative hardship could
be litigated up to the House of Lords appears again, with the greatest
deference, to be one which, I should have thought, would clearly be contrary to
the intention of Parliament. Of course, if in a case there is evidence of
hardship on one side and none on the other, the county court judge can come to
only one conclusion, and if he finds hardship where the facts are not
sufficient to constitute hardship in law — for example, something trivial . . .
he makes an error in law, but, once there is evidence which in law can amount
to hardship on two sides, Parliament has deliberately made the county court
judge the conclusive judge of the fact which is the greater hardship.
That principle
has been emphasised in a number of cases, in particular in the case of Hodges
v Blee in (1987) 20 HLR 32*. This was another case dealing with greater
hardship, in which Stocker LJ gave the judgment. At p 35 he said:
[Counsel],
who has ably and succinctly put the basis of his appeal before us, was
constrained in the end to concede that, in accordance with the relevant
authorities, he had to show, in order to succeed upon this appeal, that no
reasonable judge could have reached the conclusion which this learned judge
reached or that the judge failed to take into account relevant factors or drew
improper conclusions from facts which were put in evidence before him. It may
perhaps be an over-simplification to say that his argument really involves the
proposition that he has to demonstrate that the learned judge’s conclusion can
be said to be perverse.
*Editor’s
note: Also reported at [1987] 2 EGLR 119.
He then went
on to consider the case of Coplans v King. Later in his judgment
he reiterated the difficulty of upsetting a judge below, saying that if the
judge had correctly concluded that there was hardship on both sides, the task
of persuading a court to upset that decision is hard, unless he had made some
error of law or had drawn the wrong conclusions from the facts proved in
evidence before him. He said:
They really
amount to the proposition that it has to be established that the judge’s
conclusion was one which no reasonable judge could have reached having regard
to all the evidence.
I proceed to
consider the learned judge’s judgment in the light of those observations.
Mr Parsley has
referred the court to the case of Chandler v Strevett, which was
referred to in Coplans v King. That is a case which emphasises
what I have underlined in an earlier part of my judgment, that is the words of
the relevant section which refer to the factors to be taken into account, as
including specifically the availability of other accommodation. At p 168,
having referred to cases brought on the ground of alternative accommodation
being available, Somervell LJ said:
This is not
so under para (h) of sched I, but, under that paragraph, in having regard to
all the circumstances of the case the court is expressly enjoined, in deciding
on the issue of greater hardship, to have regard to the question whether other
accommodation is available for the tenant or the landlord. These words and the
general principles of the Acts make it clear, to my mind, that alternative
accommodation, though not a condition under para (h), is normally the most
important of the circumstances to which regard must be had.
The learned
judge goes on to deal with the particular facts of that case and concludes by
saying:
On the
evidence, the landlord and those with him had a flat in which they could
continue to live whereas the tenant and his large family of children had
nowhere to go. There seems to me, therefore, to be only one possible answer on
the issue of greater hardship, and that is one in favour of the tenant. I agree
that the appeal should be allowed.
In my
judgment, the most relevant matters which were before the learned judge were
the respective financial positions of the parties and whether other
accommodation was available to them and the nature of that accommodation. But
there were other matters which the learned judge referred to and which he put
under the heading of the ‘Effect on the physical and mental health of the
parties’. I have quoted from that part of his judgment. For my part, the difficulty
that I have found in his judgment in that respect is that when dealing with the
effect on the parties, that is the stress that would be caused to the plaintiff
on the one hand and the defendant on the other, to which I have referred,
having discounted in the case of the defendant the factor of having to move, he
then decided that the stress was equal between the parties. He then said,
having referred to the considerations which I have read: ‘Having regard to the
foregoing matters and to all the circumstances of the case, I am of the view
that whichever way the case is decided, hardship will be caused to one party or
the other.’
I have not
found this an easy case. I fully appreciate that the decision of the learned
judge below is not lightly to be upset. I have studied his judgment with care.
But for my part I am driven to the conclusion that, in coming to the decision
in respect of hardship which he did, he did not take into account the great
disparity which there was between the plaintiff’s and the defendant’s ability
to find other accommodation. Having discounted the mere fact of moving and
having found that stress was equal, nevertheless there was stress to be found
in moving to alternative accommodation and that stress was not just the stress
of moving which would be caused by an order for possession in any event but the
stress caused by the difficulty to the defendant of finding alternative
accommodation and, as one authority has indicated is relevant, other
accommodation which was protected under the Rent Act. It is a factor which can
be taken into account that alternative accommodation would not have the same
statutory protection as the existing tenancy had. It is a fact of this case
that, as evidenced by Mr Foxwell, the plaintiff’s surveyor, such accommodation
as was available for the defendant was of a shorthold nature, ie of limited
security. So far as the plaintiff was concerned, the offer which was made by
General Hopkinson was one of accommodation which was in all respects fully
protected under the 1976 Act.
Also the
financial situation of the parties was wholly out of balance. It is true that
the plaintiff required, as the judge accepted, the money which had been offered
by General Hopkinson for the purpose of setting up the business of a dealer in
cattle, but so far as that business was concerned there was no finding that he
could not carry on that business if he moved to Bigsweir Cottage.
In my
judgment, the learned judge, in having regard to the effect upon each party,
failed to pay any real regard to that imbalance between the situation of the
plaintiff and the defendant. That imbalance, in my judgment, is to be found in
the contrast between what the learned judge says in his judgment about the
stress being equal and his decision that, notwithstanding all the other
factors, the tenant had not discharged the onus of greater hardship. The
evidence, in my judgment, does indicate, and should have been accepted by the
learned judge as indicating, that there was by far a greater hardship on the
tenant than upon the plaintiff and in those circumstances he ought to have
refused to make the order.
In those
circumstances I would allow the appeal.
Agreeing, DILLON
LJ said: The judge had before him three issues for decision. First, was it
reasonable for the landlord to acquire possession? Second, what is colloquially known as greater
hardship, that is to say the issue that arises under the provision in Schedule
15 to the Act that
A court shall
not make an order for possession of a dwelling-house by reason only that the
circumstances of the case fall within Case 9 in Part I of this Schedule if the
court is satisfied that, having regard to all the circumstances of the case,
including the question whether other accommodation is available for the
landlord or the tenant, greater hardship would be caused by granting the order
than by refusing to grant it.
And, third, was
it reasonable in all the circumstances to make the order?
I do not have
any difficulty in finding on the facts of this case that it was reasonable for
the plaintiff landlord to want possession. Moreover, if granting a possession
order would not cause greater hardship than refusing to grant it, it would be
reasonable to grant it. So that the crux of this case is greater hardship.
It is
abundantly clear on the authorities that greater hardship is pre-eminently a
matter for the county court judge. I refer to the judgment of Lord Greene MR in
Coplans v King [1947] 2 All ER 393 at p 394. It is a task that
was referred to by Stocker LJ in the recent case of Hodges v Blee
[1987] 2 EGLR 119 at p 120 as ‘the familiar and usually very difficult task
imposed upon a county court judge of deciding where the balance of hardship
lay’. It is therefore necessary for the tenant on this appeal to show that the
judge has misdirected himself or that he has based his judgment on some finding
of fact of which there was no evidence: so it was put by Somervell LJ in Smith
v Penny [1946] 2 All ER 672 at p 673F. See also Darnell v Millwood
[1951] 1 All ER 88 at p 90 B-C in the judgment of Sir Raymond Evershed MR.
All that is
well-established law strongly underlined by the judgment of Stocker LJ in Hodges
v Blee, which I have already mentioned. Stocker LJ referred to the
alternative possibility of showing that the order was perverse and a conclusion
that no reasonable judge could properly have reached.
The real
question in this case, as I see it, is not one of perversity, but of
misdirection. The main point on the landlord’s side was stressed as having to
live, if he could not get possession of Pleasant View, in close proximity to
General Hopkinson after the abrupt termination of his long employment with the
general, the termination of which was naturally a great shock to the plaintiff
and caused him serious stress. But time passes and the general appears to have
acted generously over the compensation payable to the plaintiff as redundancy
money and the offer of £20,000 or £25,000 if he gives up the farmhouse and in
making a secure tenancy available to him, under the Rent (Agriculture) Act
1976, in Bigsweir Cottage. That there would be stress, however, was not
disputed. There would equally be stress to the defendant if a possession order
were made.
There are also
further factors. The plaintiff is in a much better financial position than the
defendants and, most important, there are the difficulties which the defendants
are likely to face in getting other accommodation.
The judge set
out to summarise these various factors in his judgment. He sets out, under the
general heading ‘Greater hardship under Case 9’ six separate subheads. One is
the financial position of106
the parties. He says, correctly, that ‘the position of the plaintiff is
considerably more advantageous than that of the defendant. Plaintiff will have
payment of £20,000 from the General. Has investments of over £10,000. Has
£5,000 in [a building society account]. Has some expectations in the estate of
his elderly father.’ The plaintiff’s
present income is not very great; he has only just started in a new business.
Then he sets out that the defendant has no capital, no investments and no
savings. He earns only £40 a week in part-time employment. He has limited
employment potential. He refers to the income of Mrs Maclver and her absence of
savings or investments.
Then the judge
comes to what he calls the ‘Efforts made by Defendant to find accommodation’, a
section which really also sums up the difficulties. He says that the defendant
has made very little effort to find accommodation, but he finds that suitable
accommodation is not readily available. There is a sparsity of council
accommodation in the parishes nominated by the defendant and the defendant
would be of low priority. He accepted evidence that accommodation does from
time to time become available, but at a rent much in excess of what the
defendant was currently paying, though a rent which the defendant could just
about afford. He picks that up under heading (v) — the ‘Effects of making or
refusing order for possession’. He sets out, correctly, that the plaintiff has
a protected tenancy available; he would be deprived of the use of his only home
for the foreseeable future and he would be paying rent for Bigsweir Cottage
which may exceed the rent he would receive for Pleasant View; the plaintiff
would be paying rent indefinitely, when he could occupy his own house. It
appears that the rent that the defendant has in fact been paying for Pleasant
View is likely to have been considerably less than a fair rent for that
property.
On the other
hand, he says this about the defendant. The defendant would have no
accommodation to go to immediately, little or no chance of council
accommodation in the immediate future, some chance of obtaining rented
accommodation within 10 miles of Monmouth, but rent far in excess of what he is
presently paying in rent and unlikely to obtain a protected tenancy. There was
little or no chance of purchasing accommodation through lack of capital. It was
more difficult, said the judge, for the defendant to obtain other accommodation
in the vicinity of Monmouth if an order for possession is made than for the
plaintiff to obtain other accommodation in an area suitable to carry on his
business if the order is not made. That was in section (v).
In section
(iii) he deals with the ‘Effect on physical and mental health of parties’. He
says this: the plaintiff says it would be stressful if living at Bigsweir; the
defendant was an alcoholic. It is much to his credit he seems to have conquered
his addiction. There was a suggestion by his doctor that if the order for
possession were made, that might possibly cause a relapse. He gave such weight
as he felt able to this suggestion but he did not feel able to give it much
weight. He said in his judgment there was nothing to choose between stress to
either party if the order were or were not made. He adds: ‘I am rightly
reminded by Mr Prys Lewis [counsel for the plaintiff] that the fact that tenant
will have to move is not of itself evidence of hardship and that there must be
some other factor’.
I read in that
context the judge’s statement ‘nothing to choose between stress to either party
if the order were or were not made’ as balancing the stress elements under the
general heading ‘Effects on physical and mental health of parties’. It is not
dealing with the difficulties of finding accommodation.
In para (iv)
the judge deals with the ‘Position of others affected by order’. He refers to
the effects of the order on Mrs Baker or Mrs MacIver and stresses the
importance to Mrs MacIver of being in reasonable reach of Monmouth to enable
her to continue in her present employment. But, apart from that, he reaches the
conclusion that the effect on the wives is neutral.
Under subhead
(vi) he sets out certain minor factors which the plaintiff urged him to take
into account but which I need not mention. He then summed up the situation,
saying on p 7:
Having regard
to the foregoing matters and to all the circumstances of the case, I am of the
view that whichever way the case is decided, hardship will be caused to one
party or the other. Burden of proving greater hardship is on defendant. I hold
that he has failed to establish on the balance of probability that greater
hardship would be caused by granting this order than by my refusing to grant
it.
As I see it,
in relation to that summary, the great factor of hardship on the plaintiff was
the stress to which he would be exposed living close to General Hopkinson in
otherwise suitable accommodation which was available to him. That the judge has
cancelled out under subhead (iii) against the stress to the defendant and so
the effect on the physical and mental health of the parties is neutral. If that
be correct the position is left that the factors of greater hardship are all
one way in favour of the tenant, in that the landlord has much more means and
has secure accommodation available to him at Bigsweir Cottage, while the
tenant’s position is far from promising. He will be faced with hardship in
finding alternative accommodation.
It seems to
me, therefore, that the learned judge has misdirected himself as to his own
findings in reaching his ultimate conclusion that the tenant has failed to
establish on the balance of probability that greater hardship would be caused
by granting this order than by refusing to grant it.
The
alternative interpretation of the judge’s judgment is that the judge has read
too widely the factor, which he mentioned under subhead (iii) just below his
references to stress, ‘that the fact that [the] tenant will have to move is not
of itself evidence of hardship’. That appears to have been taken from a passage
in Hill & Redman’s Law of Landlord and Tenant, 18th ed, vol 2 para C
1694, where it is said:
If there is
no evidence of hardship to the tenant at all, the question of greater hardship
does not arise. The simple fact that the tenant will have to move is not
evidence of hardship. There must be some extraneous factor.
But it is
clear from, for instance, the judgment of Bucknill LJ in Chandler v Strevett
[1947] 1 All ER 164 at p 167B that it is a relevant factor to take into
account that the landlord has alternative accommodation and the tenant has no
alternative accommodation, and it is also a relevant factor to take into
account, as appears from the judgment of Morton LJ in Sims v Wilson [1946]
2 All ER 261 at p 265A, that
the fact that
any other accommodation available to the tenant would not be protected by the
Rent Restrictions Acts is a matter which he would be entitled to take into
consideration along with all the other circumstances of the case, but the judge
would not be right in thinking that unless accommodation protected by the Rent
Restrictions Acts is provided he would be precluded to make an order for
possession.
To my mind,
there is a close parallel between this case and the approach adopted by
Somervell LJ in particular, and also Bucknill LJ in Chandler v Strevett.
In this case the factors are all one way, once the judge has held that there is
an equal balance in the matter of stress. They all point to the hardship on the
tenant being the greater. Therefore, as in Chandler v Strevett,
this court is entitled and bound to interfere with the judge’s decision and I
agree with Hollings J that this appeal must be allowed.
The appeal
was allowed with costs; costs below to be on scale 2. Legal aid taxation
ordered.