Scottish & NEWCAstle Plc v Raguz

Scottish & NEWCAstle Plc v Raguz

The implied covenant under s.24(1)(b) Land Registration Act 1925 is a contract of indemnity, not guarantee, and is not discharged by assignor's conduct. Raguz is liable for rent and VAT as covered by statutory notices, and payment by assignor was sufficiently established. The costs order was within the judge's discretion.

Parties
Respondent: Scottish & Newcastle PLC; Appellant: Raguz
Jurisdiction
England and Wales
Judgment Date
24 July 2003
Procedural Posture
Civil Appeal / Judgment on Appeal From Summary Judgment and Costs Order
Outcome
appeal dismissed
Legal Topics
Leasehold Assignment, Indemnity Vs Guarantee, Summary Judgment, Costs Allocation, VAT Liability on Rent
Property Law Contract Law Civil Procedure Leasehold Assignment Indemnity Vs Guarantee Summary Judgment Costs Allocation VAT Liability on Rent

Case Brief

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Parties

Scottish & Newcastle PLC

Respondent

Raguz

Appellant

Procedural Posture

Civil Appeal / Judgment on Appeal From Summary Judgment and Costs Order

Legal Issues

  1. 1 Whether the covenant implied by s.24(1)(b) Land Registration Act 1925 is a contract of indemnity or guarantee
  2. 2 Extent of liability under the implied covenant, including defaults caused or prolonged by assignor
  3. 3 Liability for VAT on rent under the implied covenant

Ratio Decidendi

The implied covenant under s.24(1)(b) Land Registration Act 1925 is a contract of indemnity, not guarantee, and is not discharged by assignor's conduct. Raguz is liable for rent and VAT as covered by statutory notices, and payment by assignor was sufficiently established. The costs order was within the judge's discretion.

Court Disposition

appeal dismissed

Orders

  • Declaration of liability to indemnify for £31,764.08
  • Judgment for payment of £31,764.08 plus interest at 6.5% from 5 July 2001