Smith v Muscat [2003] EWCA Civ 962 (10 July 2003)

Smith v Muscat [2003] EWCA Civ 962 (10 July 2003)

A tenant is entitled to set off against an assignee landlord's claim for assigned rent arrears any damages due for the assignor's breach of repairing obligations, as the debt vests in the assignee subject to all equities available against the assignor, including equitable set-off for unliquidated damages arising from the same tenancy.

Citation
[2003] EWCA Civ 962
Parties
Appellant/defendant: John Smith; Respondent/claimant: Joseph Samuel Muscat
Jurisdiction
England and Wales
Judgment Date
10 July 2003
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From Bromley County Court
Outcome
Appeal allowed
Legal Topics
Equitable Set Off, Assignment of Rent Arrears, Breach of Repairing Covenant, Statutory Tenancy, Remedies for Disrepair
Landlord and Tenant Property Law Equity Equitable Set Off Assignment of Rent Arrears Breach of Repairing Covenant Statutory Tenancy Remedies for Disrepair

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Parties

John Smith

Appellant/defendant

Joseph Samuel Muscat

Respondent/claimant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From Bromley County Court

Legal Issues

  1. 1 Whether a tenant may set off unliquidated damages for disrepair under a previous landlord against rent arrears claimed by an assignee landlord
  2. 2 Whether equitable set-off is available against an assignee landlord for breaches by a predecessor in title

Ratio Decidendi

A tenant is entitled to set off against an assignee landlord's claim for assigned rent arrears any damages due for the assignor's breach of repairing obligations, as the debt vests in the assignee subject to all equities available against the assignor, including equitable set-off for unliquidated damages arising from the same tenancy.

Court Disposition

Appeal allowed

Orders

  • Claim and counterclaim remitted to the County Court for trial in light of the Court of Appeal's judgment
  • Question of costs to be dealt with in writing and parties notified accordingly