{"id":5431,"date":"2018-10-12T12:38:31","date_gmt":"2018-10-12T12:38:31","guid":{"rendered":""},"modified":"2021-10-28T11:23:41","modified_gmt":"2021-10-28T11:23:41","slug":"ashburn-anstalt-v-arnold","status":"publish","type":"post","link":"https:\/\/www.lawteacher.net\/cases\/ashburn-anstalt-v-arnold.php","title":{"rendered":"Ashburn Anstalt v Arnold"},"content":{"rendered":"

Legal Case Summary<\/h2>\n

Ashburn Anstalt v Arnold [1989] Ch. 1<\/strong><\/p>\n

LAND LAW \u2013 LEASE\/LICENSE DISTINCTION<\/p>\n

Facts<\/h3>\n

The defendant was the successor-in-title to a company which persuaded the claimant to sell his lease to the company in exchange for a promise that he would continue occupying the property rent-free until the defendant gave him one quarter\u2019s notice to leave. No end-date was given. The defendant sought possession of the property without notice.<\/p>\n

Issue<\/h3>\n

The case of Street v Mountford<\/em><\/strong><\/a> held that a lease requires an exclusive grant of possession for a certain period of time and the payment of rent.<\/p>\n

The claimant argued that it had a valid lease over the property, binding the defendant by virtue of the \u2018actual occupation\u2019 overriding-interest provisions of Land Registration Act 1925. In the alternative, it argued that if the interest was a mere license, it should be a binding license or constructive trust.<\/p>\n

Decision \/ Outcome<\/h3>\n

The Court of Appeal held that the claimant had a binding lease.<\/p>\n

The court held that the \u2018period of time certain\u2019 requirement would be satisfied if the lease terminated on a sufficiently certain event (such as after the expiry of notice). However, this case has been overruled on this point by the House of Lords in Prudential Assurance v London Residuary Body<\/em><\/strong><\/a>, and is therefore likely wrongly decided.<\/p>\n

The court\u2019s second holding, that rent is not necessary for the creation of a tenancy, has yet to be overruled despite conflicting with the requirements of Street v Mountford<\/em><\/strong>.<\/p>\n

The court also held that if a lease had not existed, the license would not have bound the defendant, as licenses do not bind third parties. A constructive trust required it to be unconscionable to deny the claimant occupation, and the mere fact that the defendant knew about the license was insufficient to give rise to unconscionability.<\/p>\n","protected":false},"excerpt":{"rendered":"

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