Fuller v Happy Shopper Markets Ltd & Anor [2001] EWHC Ch 702 (14 February 2001)

Fuller v Happy Shopper Markets Ltd & Anor [2001] EWHC Ch 702 (14 February 2001)

Damages for breach of the settlement agreement owed by N & P cannot be set off against rent due to HSM. Overpayments of rent made under mistake are immediately repayable and do not require demand. Legal set-off cannot be invoked to defeat distress, but equitable set-off can, and in this case, Mr Fuller is entitled to equitable set-off of overpayments against rent arrears.

Citation
[2001] EWHC Ch 702
Parties
Claimant: John Fuller; First Defendant: Happy Shopper Markets Ltd; Second Defendant: Nurdin & Peacock plc
Jurisdiction
England and Wales
Judgment Date
14 February 2001
Procedural Posture
Appeal / Preliminary Issues of Law Determined on Appeal From Master's Refusal of Summary Judgment
Outcome
Preliminary issues determined; damages for breach of settlement not available for set-off, but overpayments can be set off by way of equitable set-off against rent arrears.
Legal Topics
Distress for Rent, Set Off (legal and Equitable), Overpayment and Restitution, Construction of Settlement Agreements, Corporate Veil, Demand for Repayment
Landlord and Tenant Restitution Contract Law Distress for Rent Set Off (legal and Equitable) Overpayment and Restitution Construction of Settlement Agreements Corporate Veil +1 more

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Parties

John Fuller

Claimant

Happy Shopper Markets Ltd

First Defendant

Nurdin & Peacock plc

Second Defendant

Procedural Posture

Appeal / Preliminary Issues of Law Determined on Appeal From Master's Refusal of Summary Judgment

Legal Issues

  1. 1 Whether damages for breach of settlement agreement could be set off against rent due to landlord
  2. 2 Whether overpayments of rent made under mistake were immediately repayable or required demand
  3. 3 Whether legal set-off or equitable set-off could be invoked against landlord's remedy of distress

Ratio Decidendi

Damages for breach of the settlement agreement owed by N & P cannot be set off against rent due to HSM. Overpayments of rent made under mistake are immediately repayable and do not require demand. Legal set-off cannot be invoked to defeat distress, but equitable set-off can, and in this case, Mr Fuller is entitled to equitable set-off of overpayments against rent arrears.

Court Disposition

Preliminary issues determined; damages for breach of settlement not available for set-off, but overpayments can be set off by way of equitable set-off against rent arrears.

Orders

  • Damages for breach of settlement agreement to be ignored in rent account.
  • Overpayments of rent to be taken into account by way of equitable set-off against arrears.