{"id":14359,"date":"2023-07-10T22:28:19","date_gmt":"2023-07-10T22:28:19","guid":{"rendered":"https:\/\/careerinlaw.net\/uk\/?p=14359"},"modified":"2023-11-23T09:46:12","modified_gmt":"2023-11-23T14:46:12","slug":"case-summary-pankhania-v-hackney-lbc-2002-ewhc-2441-ch","status":"publish","type":"post","link":"https:\/\/careerinlaw.net\/uk\/case-summary-pankhania-v-hackney-lbc-2002-ewhc-2441-ch","title":{"rendered":"Case Summary: Pankhania v Hackney LBC [2002] EWHC 2441 (Ch)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-legal-principles-and-key-points\"><strong>Legal Principles and Key Points<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In the case of Pankhania v Hackney LBC [2002] EWHC 2441 (Ch), there was a clear misrepresentation because NCP was a business tenancy.<\/li>\n\n\n\n<li>This contract law case is related to auctions and misrepresentation.<\/li>\n\n\n\n<li>Previous rulings aren&#8217;t binding and a misrepresentation of law is actionable according to Kleinwort Benson Ltd v Lincoln City Council [1999] 2 A.C. 349.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Facts of the Case<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>D sold a commercial property used as a car park to C. The documents during the auction only suggested a licence in relation to the land existed.<\/li>\n\n\n\n<li>C claimed damages from D for not bringing up the possibility that a business tenancy agreement existed.<\/li>\n\n\n\n<li>The first representation related to the car park and the second related to the planning permissions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Issues<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Were the purchases made by relying on the false representations?<\/li>\n\n\n\n<li>Should damages be awarded under s 2(2) of the Misrepresentation Act 1967?<\/li>\n\n\n\n<li>Were the occupiers tenants or contractual licensees?<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Held by High Court<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>D liable to damages on car park representations but fail on planning representations \u2013 C was induced to buy after reasonably relying upon the representation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Rex Tedd QC<\/strong><\/h2>\n\n\n\n<p>Exclusive possession<\/p><div id=\"caree-1579715930\" class=\"caree-within-the-content caree-entity-placement\" style=\"margin-left: auto;margin-right: auto;text-align: center;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1.png\" alt=\"\"  srcset=\"https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1.png 448w, https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1-300x250.png 300w\" sizes=\"(max-width: 448px) 100vw, 448px\" width=\"448\" height=\"373\"  style=\"display: inline-block;\" \/><\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The term of exclusive possession excluding the freeholder gives rise to business efficacy as per The Moorcock [1889] 14 PD 64.<\/li>\n\n\n\n<li>The commercial property was occupied according to Street v Mountford [1985] A.C. 809.<\/li>\n\n\n\n<li>\u201cIf a tenancy existed, it would be for the&nbsp;vendors&nbsp;to obtain vacant possession&nbsp;before&nbsp;sale, the inference being that sale of the property subject to a protected tenancy would be unattractive, the obvious reason being that potential purchasers would be deferred.\u201d [33]<\/li>\n<\/ul>\n\n\n\n<p>Misrepresentation<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The misrepresentation on the car park of NCP is actionable.<\/li>\n\n\n\n<li>\u201cThere is nothing to indicate that the representor regarded the legal effect of the documents as doubtful, or that they constituted, or might constitute a protected tenancy nor that it was for the reader to make his own enquiries, rather than rely on the representations.\u201d [40]<\/li>\n\n\n\n<li>The vendors made deliberate false statements to C causing C to suffer a loss.<\/li>\n\n\n\n<li>\u201cThe representations in the planning guidelines and catalogue are not retrospectively falsified by her actions.\u201d [99]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Legal Principles and Key Points Facts of the Case Issues Held by High Court Rex Tedd QC Exclusive possession Misrepresentation<\/p>\n","protected":false},"author":7,"featured_media":13103,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-14359","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-case-summaries","8":"entry"},"yoast_head":"<!-- This site is optimized 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