Maloney v Filtons Ltd & Anor

Maloney v Filtons Ltd & Anor

The lease was a sham or void; the true relationship was that of managing agent, not tenant; defendants must account to receivers for rents collected, and are not entitled to continue managing the property due to breaches and lack of trust.

Parties
Claimant: George Maloney; Claimant: Bruce Mackay; Claimant: Graham Bushby; Claimant: Matthew Haw; Defendant: Filtons Limited; Defendant: Filtons Leasing (London) Ltd
Jurisdiction
England and Wales
Judgment Date
24 May 2012
Procedural Posture
Civil / Final Judgment After Expedited Trial
Outcome
Lease declared void/sham; defendants found to be managing agents only; agency terminated; defendants must account to receivers; defendants not entitled to continue management; entitlement to 5% commission on lettings achieved by receivers until 31st October 2012, subject to costs deductions.
Legal Topics
Sham Transactions, Management Agreements, Letting Agency, Estoppel, Lease Validity, Accounting for Rent, Specific Performance
Property Law Equity Agency Law Sham Transactions Management Agreements Letting Agency Estoppel Lease Validity +2 more

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Parties

George Maloney

Claimant

Bruce Mackay

Claimant

Graham Bushby

Claimant

Matthew Haw

Claimant

Filtons Limited

Defendant

Filtons Leasing (London) Ltd

Defendant

Procedural Posture

Civil / Final Judgment After Expedited Trial

Legal Issues

  1. 1 Whether the lease between Ashwood Enterprises and Filtons Leasing (London) Ltd is valid or a sham
  2. 2 Nature of the relationship between Filtons and the McFeely Brothers (owners)
  3. 3 Defendants' entitlement to remain in possession or manage the property

Ratio Decidendi

The lease was a sham or void; the true relationship was that of managing agent, not tenant; defendants must account to receivers for rents collected, and are not entitled to continue managing the property due to breaches and lack of trust.

Court Disposition

Lease declared void/sham; defendants found to be managing agents only; agency terminated; defendants must account to receivers; defendants not entitled to continue management; entitlement to 5% commission on lettings achieved by receivers until 31st October 2012, subject to costs deductions.

Orders

  • Defendants to repay £120,000 improperly paid to Thomas McFeely to receivers.
  • Defendants to account for all rents collected since receivership to receivers.