Newman & Ors v Clarke & Anor

Newman & Ors v Clarke & Anor

Because Mr. Clarke became a tenant under the lease before he became a trustee and his statutory right under the Leasehold Reform Act 1967 derives from the lease, an exception to the rule against self-dealing applies; the claimants have no real prospect of success and summary judgment is appropriate.

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
Civil / 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

Civil / Summary Judgment Application

Legal Issues

  1. 1 Whether the rule against self-dealing precludes a trustee from exercising statutory rights acquired before trusteeship
  2. 2 Whether trustees must act unanimously in the context of statutory enfranchisement
  3. 3 Whether an exception to the rule against self-dealing applies where rights pre-exist trusteeship

Ratio Decidendi

Because Mr. Clarke became a tenant under the lease before he became a trustee and his statutory right under the Leasehold Reform Act 1967 derives from the lease, an exception to the rule against self-dealing applies; the claimants have no real prospect of success and summary judgment is appropriate.

Court Disposition

Claim summarily dismissed

Orders

  • Summary judgment for the defendants
  • No permission to amend Particulars of Claim