Swift 1st Ltd v The Chief Land Registrar [2015] EWCA Civ 330 (01 April 2015)

Swift 1st Ltd v The Chief Land Registrar [2015] EWCA Civ 330 (01 April 2015)

The Court held that paragraph 1(2)(b) of Schedule 8 LRA 2002 applies to deem loss suffered by the registered proprietor of a charge under a forged disposition, even where the registered proprietor of the property was in actual occupation and had an overriding interest. The decision in Malory Enterprises Ltd v Cheshire Homes (UK) Ltd regarding beneficial ownership was decided per incuriam and is not binding. The alteration of the register in this case amounted to rectification, entitling Swift to indemnity.

Citation
[2015] EWCA Civ 330
Parties
Respondent/claimant: Swift 1st Limited; Appellant/defendant: The Chief Land Registrar
Jurisdiction
England and Wales
Judgment Date
01 April 2015
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Indemnity for Rectification, Forged Dispositions, Overriding Interests, Rectification of Register
Property Law Land Registration Indemnity for Rectification Forged Dispositions Overriding Interests Rectification of Register

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Parties

Swift 1st Limited

Respondent/claimant

The Chief Land Registrar

Appellant/defendant

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Is the proprietor of a registered charge under a forged disposition entitled to indemnity under Schedule 8 to the Land Registration Act 2002 when the registered proprietor and rightful owner was in actual occupation?
  2. 2 Does paragraph 1(2)(b) of Schedule 8 neutralise the Chowood principle in cases of forged dispositions?
  3. 3 Was Malory Enterprises Ltd v Cheshire Homes (UK) Ltd decided per incuriam regarding beneficial ownership?

Ratio Decidendi

The Court held that paragraph 1(2)(b) of Schedule 8 LRA 2002 applies to deem loss suffered by the registered proprietor of a charge under a forged disposition, even where the registered proprietor of the property was in actual occupation and had an overriding interest. The decision in Malory Enterprises Ltd v Cheshire Homes (UK) Ltd regarding beneficial ownership was decided per incuriam and is not binding. The alteration of the register in this case amounted to rectification, entitling Swift to indemnity.

Court Disposition

Appeal dismissed

Orders

  • Registrar to pay Swift 1st Limited £90,658.99 as indemnity under Schedule 8 LRA 2002