Shebelle Enterprises Ltd v The Hampstead Garden Suburb Trust Ltd
2014
COURT OF APPEAL (CRIMINAL DIVISION)
United Kingdom
CORAM
- LADY JUSTICE ARDEN
- LORD JUSTICE MCCOMBE
Areas of Law
- Property and Real Estate Law
- Contract Law
- Civil Procedure
2014
COURT OF APPEAL (CRIMINAL DIVISION)
United Kingdom
CORAM
AI Generated Summary
Shebelle sought to prevent the Trust from consenting to a development fearing damage to their property, alleging breach of the covenant for quiet enjoyment. The court held that the Trust's actions, based on a statutory scheme for public good, did not breach the covenant. The court also ruled that later legislation can be considered when interpreting existing agreements.
Judgment
Lord Justice Kitchin:
Introduction
This is an appeal against the judgment of Henderson J dated 22 April 2013 and his consequential order whereby he dismissed the application of the appellant company (“Shebelle”) for an interim injunction to restrain the respondent charity (“the Trust”) from granting consent for a development of a property in the Hampstead Garden Suburb (“the Suburb”) and whereby, upon the cross application of the Trust, he dismissed Shebelle’s claim in its entirety.
Shebelle owns a neighbouring property under the terms of a lease from the Trust which contains a covenant for quiet enjoyment. It fears that the development will cause substantial damage to its property and contends that by granting consent for the development the Trust will be acting in breach of that covenant. In broad outline, the Trust responds that its powers of control over the contested development are derived from a statutory scheme and that their proper exercise for the public good cannot constitute a breach of the covenant. The judge agreed with the Trust and, for reasons I shall explain in this judgment, I believe he was right to have done so.
The background
The Suburb is recognised across the world as a fine example of English twentieth century domestic architecture and planning. It extends over 800 acres and contains some 5,000 properties.
The Suburb was originally developed through the vehicle of the Hampstead Garden Suburb Trust Ltd (“the Old Trust”) but, with the coming into force of the Leasehold Reform Act 1967 (“the 1967 Act”), the Old Trust was wound up and, in 1968, the Trust, a company limited by guarantee and registered as a charity, was incorporated in its place. The Trust has members who must be Suburb residents and its principal object is:
“To do all things possible in order to maintain and preserve the present character and amenities of [the Suburb] … and without prejudice to the generality of the foregoing to provide therein for persons of all classes houses with gardens or situate in the near neighbourhood of gardens and open spaces.”
The Trust is governed by a Council which is made up of four trustees who are elected from Trust members who have been resident in the Suburb for at least three years, and four other trustees, one appointed by each of the Royal Institute of British Architects, the Royal Town Planning Institute, the Law Society and the Victorian Society.
In 1974 the Trust sought and obtained the approval of the High