Charles Terence Estates Ltd v Cornwall Council & Anor [2011] EWHC 2542 (QB) (07 October 2011)

Charles Terence Estates Ltd v Cornwall Council & Anor [2011] EWHC 2542 (QB) (07 October 2011)

The leases were not void for common mistake as there was no common assumption regarding the Housing Revenue Account, nor was eligibility for housing benefit a sufficiently fundamental matter to vitiate the contracts. The councils' public law errors, including any ultra vires acts or procedural defects, do not render the leases unenforceable in private law against a counterparty acting in good faith. The contracts are enforceable and CTE is entitled to the unpaid rents.

Citation
[2011] EWHC 2542
Parties
Claimant/first Part 20 Defendant: Charles Terence Estates Ltd; Defendant/part 20 Claimant: The Cornwall Council; Second Part 20 Defendant: Providers of Accommodation and Support Ltd
Jurisdiction
England and Wales
Judgment Date
07 October 2011
Procedural Posture
High Court Civil Claim (queen's Bench Division) / Judgment After Trial
Outcome
Claim allowed
Legal Topics
Ultra Vires, Common Mistake, Public Authority Contracts, Housing Law, Enforceability of Leases, Restitution
Contract Law Public Law Local Government Law Ultra Vires Common Mistake Public Authority Contracts Housing Law Enforceability of Leases +1 more

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Parties

Charles Terence Estates Ltd

Claimant/first Part 20 Defendant

The Cornwall Council

Defendant/part 20 Claimant

Providers of Accommodation and Support Ltd

Second Part 20 Defendant

Procedural Posture

High Court Civil Claim (queen's Bench Division) / Judgment After Trial

Legal Issues

  1. 1 Whether the leases between CTE and the councils are void for common mistake
  2. 2 Whether the leases and funding agreements are unenforceable due to public law flaws (including ultra vires)
  3. 3 Whether the councils can invoke their own public law errors to resist private law claims for unpaid rent

Ratio Decidendi

The leases were not void for common mistake as there was no common assumption regarding the Housing Revenue Account, nor was eligibility for housing benefit a sufficiently fundamental matter to vitiate the contracts. The councils' public law errors, including any ultra vires acts or procedural defects, do not render the leases unenforceable in private law against a counterparty acting in good faith. The contracts are enforceable and CTE is entitled to the unpaid rents.

Court Disposition

Claim allowed

Orders

  • Cornwall Council to pay CTE the unpaid rents under the leases
  • Any counterclaims or defences based on mistake or public law error dismissed