Nurdin & Peacock Plc v DB Ramsden & Company Ltd [1999] EWHC 275 (Ch) (05 February 1999)

Nurdin & Peacock Plc v DB Ramsden & Company Ltd [1999] EWHC 275 (Ch) (05 February 1999)

The first five overpayments of rent by Nurdin & Peacock PLC were made under a mistake of fact (and/or law) and are recoverable in restitution, as there is no valid defence of change of position. The last four overpayments, made after litigation commenced and after correspondence indicating payment was made on the basis of recovery if successful, are recoverable pursuant to an agreement inferred from the parties' conduct and correspondence. Payments made after knowledge of the dispute and without mistake are not recoverable absent such agreement.

Citation
[1999] EWHC 275 (Ch)
Parties
Plaintiff (original Action) / Defendant (counterclaim): Nurdin & Peacock PLC; Defendant (original Action) / Plaintiff (counterclaim): D B Ramsden and Company Limited; Defendant (counterclaim): Roy Hall (Hull) Limited (formerly Linrock Limited)
Jurisdiction
England and Wales
Judgment Date
05 February 1999
Procedural Posture
Chancery Division Civil / Judgment After Trial of Preliminary Issues and Counterclaim
Outcome
Claim for repayment of overpaid rent succeeds in part; counterclaim for rectification dismissed.
Legal Topics
Overpayment of Rent, Mistake of Fact and Law, Restitution of Mistaken Payments, Rectification of Lease, Change of Position Defence
Property Law Restitution Contract Law Overpayment of Rent Mistake of Fact and Law Restitution of Mistaken Payments Rectification of Lease Change of Position Defence

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Parties

Nurdin & Peacock PLC

Plaintiff (original Action) / Defendant (counterclaim)

D B Ramsden and Company Limited

Defendant (original Action) / Plaintiff (counterclaim)

Roy Hall (Hull) Limited (formerly Linrock Limited)

Defendant (counterclaim)

Procedural Posture

Chancery Division Civil / Judgment After Trial of Preliminary Issues and Counterclaim

Legal Issues

  1. 1 Whether Nurdin & Peacock PLC is entitled to recover overpayments of rent made to D B Ramsden & Company Limited under a lease, on grounds of mistake (of fact or law), restitution, or agreement;
  2. 2 Whether the payments made after knowledge of the dispute are recoverable;
  3. 3 Whether the defence of change of position is available to the landlord;

Ratio Decidendi

The first five overpayments of rent by Nurdin & Peacock PLC were made under a mistake of fact (and/or law) and are recoverable in restitution, as there is no valid defence of change of position. The last four overpayments, made after litigation commenced and after correspondence indicating payment was made on the basis of recovery if successful, are recoverable pursuant to an agreement inferred from the parties' conduct and correspondence. Payments made after knowledge of the dispute and without mistake are not recoverable absent such agreement.

Court Disposition

Claim for repayment of overpaid rent succeeds in part; counterclaim for rectification dismissed.

Orders

  • DB Ramsden & Company Limited to repay Nurdin & Peacock PLC the overpaid rent for the relevant periods (first five and last four overpayments).
  • Interest to be paid on the sums to be repaid.