Newman & Ors v Clarke & Anor [2016] EWHC 2959 (Ch) (18 November 2016)

Newman & Ors v Clarke & Anor [2016] EWHC 2959 (Ch) (18 November 2016)

Because Mr. Clarke's right to acquire the freehold interest under the Leasehold Reform Act 1967 derives from a lease predating his appointment as trustee, an exception to the rule against self-dealing applies. The claimants have no real prospect of success on the self-dealing issue, warranting summary dismissal.

Citation
[2016] EWHC 2959 (Ch)
Parties
Claimant: Deborah Verne Newman; Claimant: Brooke Leverne Newman; Claimant: Billy Clarke Newman; Defendant: William Edwin Clarke; Defendant: Paula Louise Marks
Jurisdiction
England and Wales
Judgment Date
18 November 2016
Procedural Posture
Chancery Division Civil Claim / Summary Judgment Application
Outcome
Claim summarily dismissed
Legal Topics
Rule Against Self Dealing, Trustee Duties, Leasehold Enfranchisement, Summary Judgment, Amendment of Pleadings
Trusts Property Law Rule Against Self Dealing Trustee Duties Leasehold Enfranchisement Summary Judgment Amendment of Pleadings

Case Brief

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Parties

Deborah Verne Newman

Claimant

Brooke Leverne Newman

Claimant

Billy Clarke Newman

Claimant

William Edwin Clarke

Defendant

Paula Louise Marks

Defendant

Procedural Posture

Chancery Division Civil Claim / Summary Judgment Application

Legal Issues

  1. 1 Whether Mr. Clarke breached the rule against self-dealing by seeking to acquire the freehold interest in the property as trustee and tenant
  2. 2 Whether trustees must act unanimously in the context of the Leasehold Reform Act 1967
  3. 3 Whether an exception to the rule against self-dealing applies when rights pre-exist trusteeship

Ratio Decidendi

Because Mr. Clarke's right to acquire the freehold interest under the Leasehold Reform Act 1967 derives from a lease predating his appointment as trustee, an exception to the rule against self-dealing applies. The claimants have no real prospect of success on the self-dealing issue, warranting summary dismissal.

Court Disposition

Claim summarily dismissed

Orders

  • Summary judgment for Defendants
  • No permission to amend Particulars of Claim