University of East London Higher Education Corporation v London Borough of Barking & Dagenham & Ors

University of East London Higher Education Corporation v London Borough of Barking & Dagenham & Ors

The restrictive covenants are valid and subsisting, the benefit is vested in LBBD and LBR as statutory successors to the LCC, and the burden falls on UEL. UEL may sell the Barking Campus free from the restrictive covenants, but must first offer it to LBBD and LBR under the pre-emption covenant, with the purchase price determined free from the restrictive covenants. Unity of seisin did not extinguish the covenants due to different statutory purposes.

Parties
Claimant: University of East London Higher Education Corporation; First Defendant: London Borough of Barking and Dagenham; Second Defendant: London Borough of Redbridge; Third Defendants: Persons Unknown Owning or Occupying Property Forming Part of the Becontree Estate, East London
Jurisdiction
England and Wales
Judgment Date
09 December 2004
Procedural Posture
Civil / Judgment
Outcome
Covenants valid and subsisting; benefit vested in LBBD and LBR; burden on UEL; UEL may sell subject to pre-emption clause.
Legal Topics
Restrictive Covenants, Statutory Vesting, Pre Emption Rights, Unity of Seisin, Annexation of Benefit, Statutory Assignment
Property Law Local Government Law Education Law Restrictive Covenants Statutory Vesting Pre Emption Rights Unity of Seisin Annexation of Benefit +1 more

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Parties

University of East London Higher Education Corporation

Claimant

London Borough of Barking and Dagenham

First Defendant

London Borough of Redbridge

Second Defendant

Persons Unknown Owning or Occupying Property Forming Part of the Becontree Estate, East London

Third Defendants

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether restrictive covenants bind successors in title to the Barking Campus
  2. 2 Whether the benefit of the covenants is vested in successors to the LCC
  3. 3 Whether tenants and private owners on the Becontree Estate can enforce the covenants

Ratio Decidendi

The restrictive covenants are valid and subsisting, the benefit is vested in LBBD and LBR as statutory successors to the LCC, and the burden falls on UEL. UEL may sell the Barking Campus free from the restrictive covenants, but must first offer it to LBBD and LBR under the pre-emption covenant, with the purchase price determined free from the restrictive covenants. Unity of seisin did not extinguish the covenants due to different statutory purposes.

Court Disposition

Covenants valid and subsisting; benefit vested in LBBD and LBR; burden on UEL; UEL may sell subject to pre-emption clause.

Orders

  • UEL, LBBD, and LBR to use every effort to settle outstanding monetary issues by agreement, mediation, or alternative dispute resolution.
  • UEL may sell Barking Campus for full market value free from restrictive covenants, subject to triggering pre-emption clause.