Smith v Muscat

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, because the debt vests in the assignee subject to all equities available against the assignor, including equitable set-off for unliquidated damages for disrepair.

Parties: Appellant/defendant: John Smith; Respondent/claimant: Joseph Samuel Muscat
Jurisdiction: England and Wales
Judgment Date: 10 July 2003
Procedural Posture: Civil Appeal / Appeal From Bromley County Court to Court of Appeal (civil Division)
Outcome: Appeal allowed
Legal Topics: Equitable Set Off, Assignment of Rent Arrears, Breach of Repairing Covenant, Statutory Tenancy, Remedies for Disrepair

Landlord and Tenant Law Equity Contract Law 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

Civil Appeal / Appeal From Bromley County Court to Court of Appeal (civil Division)

Legal Issues

1 Whether a tenant may set off unliquidated damages for disrepair by a previous landlord against rent arrears assigned to a new landlord
2 Whether equitable set-off is available against an assignee landlord for breaches by the assignor landlord
3 Whether delay or alternative remedies bar the set-off

Ratio Decidendi

Court Disposition

Appeal allowed

Orders

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