The Secretary of State for Defence v Spencer & Ors

The Secretary of State for Defence v Spencer & Ors

A tenant can rely on equitable set-off of unliquidated claims for damages to invalidate a Notice to Pay (and thus a Notice to Quit) under Case D of the Agricultural Holdings Act 1986, provided the set-off is properly asserted, quantified, and made in good faith. The Recorder's limiting criteria are justified and consistent with legal authority.

Parties
Claimant: The Secretary of State for Defence; Defendant: Cyril Spencer; Defendant: David Spencer; Defendant: Peter Faulkner
Jurisdiction
England and Wales
Judgment Date
27 June 2019
Procedural Posture
Civil Appeal / Judgment on Appeal and Cross Appeal
Outcome
appeal and cross-appeal dismissed
Legal Topics
Equitable Set Off, Statutory Notices to Quit, Interpretation of 'rent Due', Agricultural Holdings Act 1986, Arbitration in Tenancy Disputes
Landlord and Tenant Agricultural Law Equitable Set Off Statutory Notices to Quit Interpretation of 'rent Due' Agricultural Holdings Act 1986 Arbitration in Tenancy Disputes

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Parties

The Secretary of State for Defence

Claimant

Cyril Spencer

Defendant

David Spencer

Defendant

Peter Faulkner

Defendant

Procedural Posture

Civil Appeal / Judgment on Appeal and Cross Appeal

Legal Issues

  1. 1 Whether equitable set-off can be applied to the statutory procedure under Case D in Schedule 3 to the Agricultural Holdings Act 1986
  2. 2 Whether the Recorder was correct to impose limiting criteria on the availability of equitable set-off

Ratio Decidendi

A tenant can rely on equitable set-off of unliquidated claims for damages to invalidate a Notice to Pay (and thus a Notice to Quit) under Case D of the Agricultural Holdings Act 1986, provided the set-off is properly asserted, quantified, and made in good faith. The Recorder's limiting criteria are justified and consistent with legal authority.

Court Disposition

appeal and cross-appeal dismissed