Sainsbury's Supermarkets Ltd v Olympia Homes Ltd & Ors

Sainsbury's Supermarkets Ltd v Olympia Homes Ltd & Ors

Olympia acquired only an equitable interest in the gas board site due to the cancellation of Mr Hughes’ application for first registration, and the option in the deed of novation created an equitable interest binding successors. The Land Registry made a mistake in registering Olympia as proprietor free from Sainsbury’s interest. Rectification is justified as Olympia acquired the land on the assumption it would be subject to Sainsbury’s rights, and not to rectify would confer an unjust windfall.

Parties
Claimant: Sainsbury’s Supermarkets Ltd; First Defendant: Olympia Homes Limited; Second Defendant: Transco PLC; Third Defendant: Westpac Banking Corporation; Fourth Defendant: National Westminster Bank PLC; Fifth Defendant: Alan Hughes
Jurisdiction
England and Wales
Judgment Date
17 June 2005
Procedural Posture
Civil / Judgment
Outcome
Rectification granted
Legal Topics
Rectification of Register, Equitable Interests, Land Charges, Options to Purchase, Constructive Trust, Estoppel
Property Law Equity Land Registration Rectification of Register Equitable Interests Land Charges Options to Purchase Constructive Trust +1 more

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Parties

Sainsbury’s Supermarkets Ltd

Claimant

Olympia Homes Limited

First Defendant

Transco PLC

Second Defendant

Westpac Banking Corporation

Third Defendant

National Westminster Bank PLC

Fourth Defendant

Alan Hughes

Fifth Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether Sainsbury’s option under the deed of novation created an equitable interest in land
  2. 2 Whether Olympia acquired a legal or equitable estate
  3. 3 Whether the Land Registry made a mistake in registering Olympia as proprietor free from Sainsbury’s interest

Ratio Decidendi

Olympia acquired only an equitable interest in the gas board site due to the cancellation of Mr Hughes’ application for first registration, and the option in the deed of novation created an equitable interest binding successors. The Land Registry made a mistake in registering Olympia as proprietor free from Sainsbury’s interest. Rectification is justified as Olympia acquired the land on the assumption it would be subject to Sainsbury’s rights, and not to rectify would confer an unjust windfall.

Court Disposition

Rectification granted

Orders

  • Register to be rectified to record Sainsbury’s rights under the deed of novation as an enforceable estate contract
  • Precise form of order and further relief to be determined after further argument