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IN
THE SUPREME COURT OF JUDICATURE
IN
THE COURT OF APPEAL (CIVIL DIVISION
)
Royal
Courts of Justice
Tuesday
l7th March l998
B
e f o r e
LORD
JUSTICE STUART-SMITH
LORD
JUSTICE MORRITT
LORD
JUSTICE WALLER
ON
APPEAL FROM LAMBETH COUNTY COURT
CCRTF
97/0539
(HIS
HONOUR JUDGE COX
)
KHAZANCHI
AND ANOTHER
Appellants
v.
FAIRCHARM
INVESTMENTS LTD AND OTHERS
Respondents
MR
KENNETH HAMER
(instructed by Messrs Desor & Co, Hayes, Middlesex) appeared on behalf of
the Appellants (Plaintiffs)
MR
ANDREW WESTWOOD
(instructed by Messrs Bude Nathan Iwanier, London NWll OQN) appeared on behalf
of the Respondents (Defendants).
ON
APPEAL FROM THE HIGH COURT OF JUSTICE
CHANI
96/0255
(HIS
HONOUR JUDGE ROGER COOKE
)
Sitting
as a High Court Judge
MCLEOD Appellant
v
BUTTERWICK Respondent
THE
APPELLANT
(Plaintiff) appeared in person.
MR
MICHAEL TILLETT QC
(instructed by Messrs Burchell & Rushton, London EC4 lLL) appeared on
behalf of the Respondent (Defendant).
(Handed
down transcript of
Smith
Bernal Reporting Limited, l80 Fleet Street
London
EC4A 2HD Tel: 0l7l 42l 4040
Official
Shorthand Writers to the Court)
J
U D G M E N T
(As
approved by the court)
©Crown
Copyright
LORD
JUSTICE MORRITT:
l.
These appeals raise a common question of some general importance as to the
powers of a bailiff distraining for rent or a sheriff executing a writ of fieri
facias forcibly to re-enter the premises in which the relevant goods are kept
for the purpose of removing them. It is not in dispute that entry for the
purpose of effecting the initial seizure may only be made with the consent of
the occupant or other person in possession of the premises. The question is
whether in any and, if so, what circumstances the bailiff or the sheriff in
walking possession of the goods is entitled forcibly and without the consent of
the occupant or other person in possession of the premises to re-enter in order
to remove the goods for the purposes of sale.
2.
In
Khazanchi
v Faircharm Investments Ltd
the premises were occupied by the tenants for the purposes of their business.
The bailiff, seeking to distrain on behalf of the landlord in respect of
arrears of rent, had entered the demised premises with the consent of the
tenants. At his request the tenants entered into a walking possession
agreement which entitled the bailiff to remove the goods at any time after the
specified date for payment. The arrears of rent were not paid by the due date
and the bailiff attended at the demised premises for the purpose of removing
the goods. The premises were locked and there was no one inside. The bailiff,
with the assistance of a locksmith and removal men, removed the lock, removed
the goods and resecured the premises on his departure with a new lock leaving a
key to the new lock with a caretaker. In proceedings brought by the tenants
His Honour Judge Cox decided that the bailiffs were entitled to act as they had
and dismissed the tenants claim for damages.
3.
In
McLeod
v Butterwick
the sheriff entered the home of Miss McLeod with her consent for the purpose of
executing a writ of fi. fa. He did not then remove any goods. Miss McLeod
refused to enter into a walking possession agreement. Interpleader proceedings
followed. Very shortly after they were concluded the sheriff, without prior
notice, returned to Miss McLeod’s home for the purpose of removing the
goods for sale. Miss McLeod was out at work and there was no one in her home.
The sheriff, with the assistance of a locksmith and removal men, removed the
lock and the goods and resecured the premises on his departure leaving a key to
the new lock for Miss McLeod to collect on her return. Miss McLeod sued the
sheriff for damages and an injunction. Her application for an interlocutory
injunction to restrain the sheriff from selling her goods or entering her home
without her consent was refused by His Honour Judge Cooke on the ground,
amongst others, that the sheriff was entitled to act as he had.
4.
Though there are similarities between the position of a bailiff and a sheriff
their respective legal rights and obligations are not the same. Thus it is
necessary to consider the two cases separately. Equally it is helpful to test
the apparent position of the one against that of the other. For that reason I
propose to consider the position of the bailiff and the sheriff separately, but
in respect of the common question I have identified, before considering the
other questions which arise in and the outcome of each appeal.
Distress
for Rent
5.
Though the remedy of distress is available for liabilities other than rent I
confine my comments to the remedy as incident to a demise of land for the
recovery of rent. The process consists of three stages, namely, entry into the
premises, seizure of the goods and securing or impounding the goods.
Originally goods so seized might only be impounded in the local pound to which
the distrainor was obliged to take them. Further, the goods there impounded
might only be detained until the outstanding rent was paid.
6.
Distress for Rent Act l689 s.l amended the law so as to entitle the distrainor
to sell the goods so impounded and to recoup the arrears of rent out of the
proceeds of sale. Originally the goods had to be appraised before sale but
this requirement was abolished by Law of Distress Amendment Act l888 s.5.
7.
Distress for Rent Act l737 s.l0 amended the law by enabling goods to be
impounded and indeed sold in the premises where they were at the time of
seizure. The earlier part of the section provides:
“..it
shall and may be lawful to and for any person or persons lawfully taking any
distress for any kind of rent, to impound or otherwise secure the distress so
made, of whatever nature or kind soever it may be at such place or in such part
of the premisses chargeable with the rent as shall be most fit and convenient
for the impounding and securing such distress, and to appraise, sell and
dispose of the same upon the premisses in like manner and under the like
directions and restraints to all intents and purposes as any person taking a
distress for rent may now do off the premisses...”
8.
The section contains no express provision as to the right of the distrainor to
return to those premises for the purpose of removing the goods for sale
elsewhere but provides, in a later passage, that:
“it
shall and may be lawful to and for any person or persons whatsoever to come and
go to and from such place or part of the said premisses where any distress for
rent shall be impounded and secured as aforesaid, in order to view, appraise,
and buy, and also in order to carry off or remove the same on account of the
purchaser thereof..”
That
section may be contrasted with s.7 which authorises a landlord seeking to levy
a distress and those authorised by him in the daytime to break open and enter a
house or other building in which he suspects that there are goods on which he
is entitled to distrain but which have been fraudulently concealed from him.
In the case of a dwelling-house the power might only be exercised after the
landlord had sworn before a justice as to the reasonable ground for his
suspicion.
9.
It is also necessary to notice s.l9 Distress for Rent Act l737. The purpose
of the section was to prevent an irregularity during the course of the distress
giving rise to a trespass ab initio with the consequence that the distrainor
was liable for the value of the goods without a set-off on account of the
arrears of rent. The section is convoluted but the material parts provide:
“And
whereas it hath sometimes happened that upon a distress for rent justly due,
the directions made in [Distress for Rent Act l689], have not been strictly
pursued, but through the mistake or inadvertency of the landlord...or
bailiff...some irregularity or tortious act hath been afterwards done in the
disposition of the distress so seized...for which irregularity or tortious act
the party distraining hath been deemed a trespasser ab initio, and in an action
brought against him as such, the plaintiff hath been entitled to recover, and
has actually recovered the full value of the rent for which such distress was
taken....be it enacted...that...where any distress shall be made...and any
irregularity or unlawful act shall be afterwards done by the
party..distraining...the distress itself shall not be therefore deemed to be
unlawful, nor the party..making it be deemed a trespasser ab initio; but the
party..aggrieved by such unlawful act or irregularity shall or may recover full
satisfaction for the special damage he...shall have sustained thereby, and no
more, in an action for trespass or on the case, at the election of the
plaintiff:..[and his full costs of suit]”
l0.
Law of Distress Amendment Act l888 abolished the need for appraisement before
sale of the goods distrained and provided that a bailiff levying a distress
must be certified by a county court judge. By s. 8 the Lord Chancellor was
given power to make rules for regulating the security to be required of
bailiffs, the fees etc incidental to a distress and for carrying into effect
the objects of the act. Further amendments dealing with the certification of
bailiffs, the position of lodgers and sub-tenants were made by Law of Distress
Amendment Acts l895 and l908.
ll.
At some time following the enactment of the Law of Distress Act l737 a
practice grew up of an agreement, commonly called a walking possession
agreement, being entered into between the landlord or bailiff on the one hand
and the tenant on the other to regulate their relations after the initial entry
and impounding of the goods. It is apparent from the decision in
Lavell
v O’Leary
[l933] 2 KB 200 that at that period the form of agreement authorised the
bailiff to “re-enter the premises peaceably or by force, if required, at
any time”. Likewise in
Watson
v Murray
[l955] 2 QB l the walking possession agreement in use in January l952 by the
sheriff executing a writ of fi. fa. authorised the sheriff “to re-enter
my house and premises...at any time you may think proper..and if necessary to
use force for that purpose”. In January l954 the Distress for Rent Rules
l953 SI No. l702 made by the Lord Chancellor under s.8 Law of Distress
Amendment Act prescribed, for the first time, a form of walking possession
agreement which might be “used with such variations as circumstances may
require”. Rule l(2). The form so prescribed provided simply that
“you [the bailiff and the man in walking possession] may re-enter the
premises at any time while the distraint is in force”. Though the rules
and other parts of the walking possession agreement have been amended from time
to time no change has been made to the provision entitling the bailiff to
re-enter.
l2.
For completeness I should record that statutory restrictions on the exercise
of the remedy of distress exist in the case of premises let on a protected or
assured tenancy or subject to a statutory tenancy or if the tenant is a member
of the Armed Forces or insolvent or subject to an administration order. There
was no such restriction in this case because the premises were let for the
purposes of the tenants business and not as a dwelling-house.
l3.
It is in these circumstances that the tenants contend that the bailiff had no
right to re-enter their premises without their consent. They submit that the
walking possession agreement gave no such authority and no right to act as he
did was conferred on the bailiff by the common law. His Honour Judge Cox
disagreed. He said:
“Was
the bailiff entitled to break in on l7th February l992? If it was illegal, he
was not. I have resolved that point and it was not an illegal distress.
Granted that the original distress was not itself illegal, it is well settled
that a bailiff may enter and, having levied distress, subsequently return and
remove the goods and on the second occasion can in certain circumstances force
entry, particularly if the premises have been barred against him. That goes
back a long way. The problem is where the premises are simply locked, can
they be said to be barred against the bailiff when he returns? There is a
problem in that the occupiers may have gone out and locked the doors. I accept
that times have changes since the l9th century when these rules were first laid
down and it is now usual for people to lock the doors when they leave premises
unattended. This is a matter that was considered at some length by Judge Cooke
sitting in the Chancery Division in
McLeod
v Butterwick
[l996] l WLR 995. That decision, if it is a decision which I should follow,
resolves the point against the Plaintiffs. It is persuasive upon me but not
binding. Mr. Hamer says it is plainly wrong and pointed me to an analogy
against forced entry in aid of an Anton Piller order. It seems to me that an
Anton Piller is a very different situation indeed, just as other forms of
distress are different. In
McLeod
v Butterwick
the court was dealing with a writ of fi.fa., and there was no need for Form 7.
I have read Judge Cooke’s judgment with great care. Whilst he feels
driven to the conclusion he reaches that where the door is locked the bailiff
is entitled to assume that it is locked against him I find these reasons
compelling: but I do note that it may be thought to produce an anomalous
position in this day and age. I share Judge Cooke’s reservations but I
feel compelled to come to the same conclusion. The bailiff was entitled to
force entry.”
l4.
The tenants have renewed their submissions to this court. They submit that
the judge was wrong because on its true construction the walking possession
agreement did not authorise the bailiff to use force at any time and the common
law did not entitle him to do so in the circumstances of this case. In my
view it is convenient to consider the position at common law before seeking to
construe the walking possession agreement. As I have already indicated, it is
not disputed that in the case of distress for rent, whatever the nature of the
premises, the initial entry must be peaceable and with the consent of the
tenant. Once the initial entry has been achieved and the goods impounded then
they are in what is called “the custody of the law”.
Abingdon
RDC v O’Gorman
[l968] 2 QB 8ll, 8l9. If thereafter the distrainor were forcibly ejected or
having left the premises for a temporary purpose his return is deliberately
barred by the tenant then he may re-enter by force. This proposition is amply
established by a number of cases to which we were referred. In view of the
submissions made to us it is convenient at this stage to refer to them shortly
in chronological order.
l5.
The first is
Francome
v Pinche
(l766) Esp. 382. In that case the bailiff distraining the goods of a tenant
was forcibly ejected when preparing the inventory. After about an hour the
bailiff, having obtained reinforcements, returned and, having been refused
admittance, broke open the door. Wilmot J held that he was entitled to do so
because “this was a recontinuance of the first taking and so was
lawful”.
l6.
In
Russell
v Rider
(l834) 6 C & P 4l6. the Landlord put in a bailiff on 27th December. He
left in an agitated state on 29th December because, as the landlord supposed,
his liquor had been drugged. On 4th January agents of the landlords broke into
the premises under the same authority as previously held by the bailiff and
removed goods. Bosanquet J decided that they were not entitled to do so
because “possession had been left so far back”.
l7.
In
Eagleton
v Gutteridge
(l843) ll M & W 465 the defendant bailiff had entered the dwelling house of
the plaintiff under a warrant for distress for rent and was forcibly ejected by
the Plaintiff. The defendant thereupon forcibly re-entered and was sued for
trespass. Parke B held that the forcible re-entry was justifiable at common
law.
l8.
In
Brown
v Glenn
(l85l) QB 254 the defendant bailiff distrained horses of the plaintiff in the
stable by breaking open the locked door. Lord Campbell CJ, distinguishing the
case of the bailiff from that of the sheriff, held that the forcible entry was
not justified “for the fact of the stable door being locked does of
itself render this distress unlawful”.
l9.
In
Bannister
v Hyde
(l860) 2 E & E 627 a bailiff in close possession of a shop and
dwelling-house by way of distraint for rent left for a short time to get
himself some beer. During his absence the Plaintiff locked him out and refused
his requests to be let in again. Thereupon the bailiff broke down the back
door and re-entered. It was held, following
Eagleton
v Gutteridge
,
that the bailiff was entitled to use force to effect his re-entry for
“being forcibly kept out..amounted to the same thing as.. being forcibly
turned out”.
20.
In
Eldridge
v Stacey
(l863) l5 CBNS 458 a bailiff distraining goods in a dwelling-house for unpaid
rent was forcibly evicted. Three weeks later he re-entered by force. Erle CJ
considered that as he “was put out by force, he was justified in
resorting to force in order to regain possession”.
2l.
Finally in
American
Concentrated Must Corpn v Hendry
(l893) 68 LT 742 a landlord, by a bailiff, had sought to distrain goods in a
warehouse. The bailiff had entered by breaking down the door. This was held
By Bowen LJ to be unlawful. The Bailiff’s appeal was dismissed.
22.
The legal position is summarised in Halsbury’s Laws of England 4th Ed.
Vol.l3 para 306 in the following terms:
“Forcible
re-entry. After an entry has been made and not abandoned, but the distrainor
has been forcibly expelled or driven away by the tenant’s violence, he
may obtain the assistance of a peace officer and break open the outer door,
even after a considerable interval.
On
the same principle a forcible re-entry may be made where the man in possession
voluntarily goes away for a short period, and not with the intention of
abandoning the distress, and on his return finds the door locked. In such a
case he may break open the door. It is a question of fact in each case whether
there has been an abandonment.
To
the like effect are the passages in Eddy on the Law of Distress 3rd Ed. (l96l)
47; Hill and Redman’s Law of Landlord and Tenant para. l874 and
Woodfall’s Law of Landlord and Tenant para. 9.l28.
23.
The tenants relied on all these cases and textbook references for the
proposition that except in the limited circumstances of forcible ejection or
exclusion which would justify the use of force on the part of the bailiff in
retaking the goods he had already impounded there was no right of forcible
entry. They relied particularly on
Brown
v Glenn
(l85l) QB 254 and
American
Concentrated Must Corpn v Hendry
(l893) 68 LT 742. This was disputed by Mr Westwood in his excellent argument
on behalf of the Bailiff. He contended that once the goods had been impounded
following the initial entry, so that they were in the custody of the law, then,
so long as the distress had not been abandoned, the bailiff on his return
finding the door to be locked was entitled, without more, to force an entry.
He submitted that the authorities dealing with forcible expulsion or exclusion,
when properly understood, are only considering the impact of those
circumstances on the question of abandonment. He took us through the
authorities relied on by counsel for the tenants to indicate the way in which,
in his submission, they should be read as supporting his proposition as opposed
to that of the tenants. Both counsel accepted that, ultimately, this point
depended on how one should read the judgments in
Bannister
v Hyde
(l860) 2 E & E 627.
24.
As I have already indicated the facts in that case were that a bailiff in
close possession of a shop and dwelling-house by way of distraint for rent left
for a short time to get himself some beer. During his absence the Plaintiff
locked him out and refused the bailiff’s requests to let him in again.
Thereupon the bailiff broke down the back door and re-entered. At trial the
judge had considered that the forcible re-entry was justified. During the
course of the argument counsel seeking to uphold the judge’s order
conceded that the distress had not been abandoned. He relied on the fact that
the bailiff had not been forcibly ejected but had gone of his own accord and
for his own purposes. The report indicates that during the course of argument
Crompton J intervened when shown the report of
Russell
v Rider
to the effect that, if there had been no abandonment, there would have been a
right to re-enter. It is true that this intervention suggests that Crompton J
considered that in
Russell
v Rider
if the distress had not been abandoned then the bailiff would have been
entitled to re-enter by force but it is not apparent whether that view depended
on treating the drugging of the bailiff’s liquor as equivalent to a
forcible exclusion or indeed remained his view at the conclusion of the argument.
25.
In his judgment Wightman J said, at page 63l:
“In
the present case there was no evidence of an abandonment, but the contrary.
The man quitted, for a short time, the house in which the goods were, but
clearly had no intention of abandoning them. On his return, he found the door
locked against him; that placed him in the same position as if he had been
forcibly ejected from the house, and therefore, as was held in
Eagleton
v Gutteridge
,
gave him the right to break open the outer door, if necessary, to regain
possession.”
The
use of the word “therefore” in the last sentence is inconsistent
with the submission for the bailiff. The other members of the court agreed
with Wightman J. Thus at page 632 Crompton J said:
“When
it was once admitted that there was no evidence of abandonment, the
plaintiff’s case was at an end. During the temporary absence of the man
in possession, the goods remained in the custody of the law; and, on his being
forcibly kept out, which amounted to the same thing as his being forcibly
turned out, he was justified, as was laid down in
Eagleton
v Gutteridge
,
in breaking open the door in the exercise of his right, not to retake (for he
had not abandoned), but to retain possession of the goods distrained.”
Blackburn
J, who had been the trial judge, added:
“I
directed the jury, first that, if he went out with the intention of returning,
the distress had not been abandoned in point of law; and I directed then,
secondly, that, in such case, he was justified in using force, if necessary,
for the purpose of re-entering. The counsel for the plaintiff, upon this,
elected to be nonsuited.
Eagleton
v Gutteridge
,
is a conclusive authority that the person in possession, if kept by force from
the actual possession of goods distrained and in his constructive possession,
has a right to use force for the purpose of re-entering upon such actual
possession.”
26.
In my view that case does not support the proposition for which Counsel for
the Bailiff contends. As counsel for the tenants submitted if there was a
right to re-enter by force in any circumstances so long only as the distress
had not been abandoned then the passages from the judgments I have quoted
referring to the justification for the use of force were wholly irrelevant.
The same is true of
Francome
v Pinche
(l766) Esp. 382,
Eagleton
v Gutteridge
(l843) ll M & W 465 and
Eldridge
v Stacey
(l863) l5 CBNS 458. In each case the references to the forcible ejection of
the bailiff would have been otiose if there were an unconditional right to
re-enter by force. In particular, the direction of the Lord Chief Justice to
the jury in
Eagleton
v Gutteridge
that if the jury were satisfied that the bailiff was forcibly turned out the
subsequent re-entry by force was justified would have been wrong. Likewise the
conclusion of Erle CJ in
Eldridge
v Stacey
that if the bailiff were put out by force he was justified in resorting to
force to regain possession would have been unnecessary. It would have been
sufficient for him to have said “unless indeed he had abandoned the
original distress” without the reference to the circumstances of being
put out by force.
27.
Accordingly I reject the principal submission for the bailiff to the effect
that after impounding he has at common law an unconditional right to re-enter
by force the premises where the goods are impounded. There is in my view no
authority to support it. Such a right would be inconsistent with the view that
those premises constitute the pound for there has never been any suggestion
that a landlord or his bailiff was entitled to break into the pound. Moreover
to recognise a right of forcible re-entry in all circumstances would be
inconsistent with the provisions of Law of Distress Act l737. As I have
already indicated s.7 conferred a right of forcible entry in the case of goods
fraudulently concealed but s.l0 made no similar provision when providing for
the first time that goods might be impounded on the tenant’s premises.
If it had been clearly established before that act was passed that there was a
right of forcible re-entry in all cases the omission might have been
explicable, but it was not, and, indeed, could not have been, for previously
the goods could not be impounded on private property. I do not doubt that,
subject to any question of duress, a tenant might lawfully agree that the
bailiff might re-enter by force.
Lavell
v O’Leary
[l933] 2 KB 200 is such a case. But in my view it is not a right conferred by
the common law in the absence of such an agreement.
28.
In
McLeod
v Butterwick
[l996] l WLR His Honour Judge Cooke was dealing with the case of a sheriff
executing a writ of fi. fa. not a bailiff levying a distress. But his decision
and the reasoning behind it was adopted by His Honour Judge Cox and applied to
the case of the bailiff levying a distress. Thus it is appropriate to consider
in this context what Judge Cooke held. He too considered
Bannister
v Hyde
(l860) 2 E & E 627 and the conclusions which might be drawn from it. He
said, at page l002B:
“It
seems to me that the authorities, particularly when one looks at
Bannister
v Hyde
,
go a good deal further than actual expulsion (in other words, removing from the
premises the person who is already there). They must, I think, extend to any
forcible prevention from the continuing of the execution. There is an
indication in some of the books that notice ought to be given first, and, as a
matter of practice, I am bound to think it ought to; but there is also an
indication on other authority - I need not quote it at length - that there
is no point in giving it if there is nobody there to give it to.
The
real question is: Does the principle extend - and there is no clear
authority on this - to cases where, in fact, the premises are locked, not
because the house owner is deliberately trying to exclude the bailiff or the
sheriff, but simply where, put neutrally, the householder has locked the house,
and in this particular case (as Mrs. McLeod tells me and I have no reason to
doubt her) she had locked it because she had gone to work. The difficulty with
qualifying the principle in such a case is this. From the point of view of the
sheriff’s officer, who is coming to execute his writ and coming to take,
physically, possession of that which he already has by operation of law, he
does not know why he is being kept out. All he knows, and can know, and
possibly can ever know (unless the circumstances are such as they were in
Bannister
v Hyde
)
is that he
is
being kept out. It seems to me to follow, as a matter of strict reasoning,
that whatever is the case, if he comes back to continue the possession which
started as walking possession by taking possession and the door is barred
against him he can break through it. That being so, he was right to do it in
this case too.
While
it seems to me that the intellectual purity of the argument is convincing and I
think I am bound to go down that road, (and I observe that it represents on
evidence what has been the accepted practice of sheriffs, at least in Greater
London, for a long period), I do view it in modern conditions with some degree
of disquiet. It is all very well in an earlier world where, as I put it in
argument, perhaps in the class of society where people had enough money for
anybody to bother with an execution it was most unusual to find a house to be
locked, bolted and barred, unless that (i.e. exclusion) was the intention -
not so today. People are frequently out and about their lawful business, both
sexes working, mothers out with their children, in circumstances that in the
l9th century would have seemed odd and unusual; today we take for granted. I
cannot help feeling that this practice is due for review, and I hope it will be
by somebody. But there it is.”
29.
In my view, this conclusion involves an extension of the principle and of the
existing authorities on the circumstances in which a bailiff may re-enter by
force which I am unable to accept. If no notice has been given by the bailiff
of his intention to re-enter and the only circumstance is that the outer door
is locked that is in my view insufficient to justify a forcible re-entry. The
justification for permitting force in response to cases of forcible expulsion
or forcible exclusion is that given by the Privy Council in
Aga
Kurboolie Mahomed v The Queen
(l843) Moo. P C 239. In that case a sheriff executing a writ in Calcutta
sought to arrest the appellant in his house. He entered through an open door
but was then expelled by force and the door shut and locked behind him. Having
obtained reinforcements the sheriff then, though under fire from within,
re-entered by force. On appeal to the Privy Council Lord Campbell giving their
advice held that the original entry through the open door was lawful, that the
appellant was guilty of trespass in expelling the sheriff and could not rely on
his own wrong to object to the subsequent forcible re-entry. The Privy Council
also concluded that in the circumstances a demand for re-entry was not required
as the appellant knew the purpose of the sheriff’s call. At page 246
Lord Campbell said:
“Their
lordships think that as they had once been lawfully in the house, and he knew
they were lawfully about to arrest him, and he unlawfully caused them to be
expelled for the purpose of preventing them from so doing, he cannot be
permitted to take advantage of his own wrong, by thus defeating the process of
the law; and that they had a right to place themselves in the position which
they occupied when his unlawful act began. Without an actual arrest, there was
no rescous or escape; but the proposition, that till an actual arrest had taken
place, the prosecutor might forcibly expel the officer and those acting in his
aid, and lock the outer door, so as to entitle himself to the protection of his
castle, cannot be supported. The outer door being open, they were entitled to
enter the house under civil process; and then being lawfully in the house, to
arrest him, he was guilty of a trespass by expelling them. The act of locking
the outer door was unlawful, and he could confer no privilege upon himself by
that unlawful act.
Again,
there is no doubt that, generally speaking, before an outer door can be broken
open, even to execute criminal process, there must be a demand of entry, and a
refusal. But to what extent? To inform the owners of the house of the purpose
for which entry is to be made, and to afford him the opportunity of opening the
door and personally admitting the parties who are to execute the process of the
law. Here the prosecutor, who had just expelled the Defendants from his house,
that they might not arrest him, full well knew the purpose for which they
returned, and he showed a determined resolution to oppose their admission.”
30.
If that case truly expresses the rationale for the circumstances in which a
forcible re-entry is justified then the mere fact that the door is locked
cannot suffice. It is no wrong for a tenant, without more, to lock the door to
the demised premises whether they be domestic or commercial. If he knows that
the bailiff is seeking to re-enter but locks or leaves the door locked to
exclude him then the tenant commits a wrong for he is wilfully obstructing the
right of the bailiff to possession of the goods. But if he does not know of
the bailiff’s intended re-entry at any particular time then to leave his
door locked and to absent himself about his normal affairs is his right. As
the Privy Council indicated if the person in possession knows the purpose of
the bailiff’s visit then there is no need to give further notice of it.
But that is no reason for concluding that where the tenant does not know of the
bailiff’s intention to re-enter at a particular time and leaves his door
locked the bailiff may break in.
3l.
It is objected that if notice is required then by giving it the bailiff will
provide the opportunity to the tenant to conceal his goods, thereby frustrating
the object of the re-entry. This is true but insufficient reason to reach a
different conclusion. It is common ground that the initial entry must be
effected peaceably, usually by consent. The tenant then has five days to pay
off the arrears. If the tenant has not used that opportunity to conceal his
goods then I see no compelling reason on that ground why the bailiff should not
be required to give notice of his re-entry.
32.
Then it is suggested by reference to
Semaynes
Case
(l604) 5 Co. Rep. 9la and
Lee
v Gansel
(l774) l Cowp. l, to which I shall refer in more detail in connection with the
execution of a writ of fi. fa., that the reason for not permitting forcible
re-entry is the risk of civil disturbance and the possibility of letting in
robbers. It is suggested that the latter reason is not a good one because of
the practice of the bailiffs to secure the premises with a new lock on leaving.
Whilst this may remove much of the force from the second reason it does not
affect the first, nor in my view can it provide a justification for a forcible
entry on the premises of another.
33.
For all these reasons I would conclude that a bailiff is not entitled to
re-enter by force except where, having gained entry peaceably, he was expelled
by force or he has been deliberately excluded by the tenant. What amounts to
deliberate exclusion must be recognised on a case by case basis. It will
include cases where the tenant knowing of the intended visit deliberately locks
the door and goes away or when invited to admit the bailiff refuses to do so.
But in my view it does not include the case of a tenant who has no knowledge of
an intended visit by the bailiff at any particular time and locks his premises
in the ordinary way and goes about his business as normal.
34.
It is necessary to construe the walking possession agreement against that
background of the common law. It is in the prescribed form and embodies an
agreement between the bailiff and the tenant that the former “may
re-enter the premises at any time while the distress is in force”. The
bailiff relies on the use of the unqualified words “at any time”.
He submits that they mean just that so that the right is not dependent on the
consent of the tenant or the presence of other circumstances sufficient to
justify a forcible re-entry. I do not accept that submission. It cannot have
been intended by the parties that the bailiff should be entitled, without
notice, to break in at any time of day or night. If such a power were intended
then it would require to be expressed in plain terms. That is certainly the
case if the power were conferred by a statute.
Grove
v Eastern Gas Board
[l952] l KB 77, 82. In my view it would not be right to attribute an intention
on the part of the tenant to confer such wide-ranging rights on the bailiff
without clear expression. I do not think that the use of the words “at
any time” is sufficient for they deal with time not method and must be
read against the background of being a prescribed form which superseded the
form previously in common use which expressly referred to the use of force.
Execution
of a writ of fieri facias
35.
A writ of fi. fa. is a command to the sheriff “that of the goods and
chattels and other property of [the judgment debtor] in your county authorised
by law to be seized in execution you cause to be made the sum of [the amount of
the judgment]...and that immediately after execution of this writ you pay [the
judgment creditor] in pursuance of [the judgment] the amount levied in respect
of the said sum”. The statutory authority of the sheriff to perform the
command is now contained in s.l38 Supreme Court Act l98l. That section, so far
as material provides as follows:
l38
(l) Subject to subsection (2), a writ of fieri facias or other writ of
execution against goods issued from the High Court shall bind the property in
the goods of the execution debtor as from the time when the writ is delivered
to the sheriff to be executed.
(2)
Such a writ shall not prejudice the title to any goods of the execution debtor
acquired by a person in good faith and for valuable consideration unless he
had, at the time when he acquired his title -
(a)
notice
that the writ or any other such writ by virtue of which the goods of the
execution debtor might be seized or attached had been delivered to and remained
unexecuted in the hands of the sheriff; or
(b)
notice
that an application for the issue of a warrant of execution against the goods
of the execution debtor had been made to the registrar of a county court and
that the warrant issued on the application either -
(i)
remained unexecuted in the hands of the registrar of the court from which it
was issued; or
(ii)
had been sent for execution to, and received by, the registrar of another
county court, and remained unexecuted in the hands of the registrar of that
court.
(3)
For the better manifestation of the time mentioned in subsection (l), it shall
be the duty of the sheriff (without fee) on receipt of any such writ as is
there mentioned to endorse on its back the hour, day, month and year when he
received it.
(3A)
Every sheriff or officer executing any writ of execution issued from the High
Court against the goods of any person may by virtue of it seize -
(a) any
of that person’s goods except -
(i)
such tools, books, vehicles and other items of equipment as are necessary to
that person for use personally by him in his employment, business or vocation;
(ii)
such clothing, bedding, furniture, household equipment and provisions as are
necessary for satisfying the basic domestic needs of that person and his
family; and
(b) any
money, banknotes, bills of exchange, promissory notes, bonds, specialties or
securities for money belonging to that person.
(4)
For the purposes of this section -
(a) “property”
means the general property in goods, and not merely a special property;"
Ss.
l38A and l38B provide for the sale of the goods so taken in execution. They
throw no light on the manner of entry permitted to the sheriff by law.
36.
It is not disputed that the sheriff in execution of a writ of fi.fa. may not
make a forcible entry into a dwelling-house unless and until he has completed
his seizure of the goods in consequence of the first entry. Halsbury’s
Laws of England 4th Ed. Vol.l7 paras 465 and 466. The rule is otherwise in the
case of commercial or business premises.
Hodder
v Williams
[l895] 2 QB 663. The origin of the rule may be traced at least as far back as
Semaynes
Case
(l604) 5 Co. Rep. 9la. The report is in the form of a number of resolutions
which, so far as material, are sufficiently recorded in the sidenote in these
terms:
“l. The
house of every one is his castle, and if thieves come to a man’s house to
rob or murder, and the owner or his servants kill any of the thieves in defence
of himself and his house, it is no felony and he shall lose nothing.
.......
4. Where
the door is open the sheriff may enter, and do execution at the suit of a
subject, and so also in such case may the lord, and distrain for his rent or
service. It is not lawful for the sheriff, on request made and denial, at the
suit of a common person, to break the defendant’s house,
scil.
To execute any process at the suit of a subject.
.......
6. If
the sheriff might break open the door to execute civil process, yet it must be
after request made.”
37.
Following the initial entry and seizure the rights of the sheriff are very
similar to those of the bailiff. He may remain in possession of them without
any physical presence. This is normally, but not necessarily, evidenced by a
walking possession agreement. Thus, unless he has abandoned the goods, which
is a question of fact, he may re-enter in order to remove the goods for the
purposes of sale. Halsbury’s Laws of England 4th Ed. Vol.l7 para. 49l.
As in the case of the bailiff distraining for rent the question is whether the
sheriff may forcibly re-enter and, if so, in what circumstances.
38.
We were referred to a number of cases on this issue too. It is convenient to
refer to them shortly and in chronological order before turning to the
submissions of the parties. The first after
Semaynes
Case
was
Lee
v Gansel
(l774) l Cowp. l. In that case an officer seeking to arrest General Gansel
peacefully entered the house from the street but then broke through an inner
door. It was held that he was entitled so to do. At page 6 Lord Mansfield
explained that the special position or privilege of a dwelling-house, not to be
extended by any equitable analogous interpretation, rested on policy for the
protection of a man and his family for:
“otherwise
the consequences would be fatal; for it would leave the family within, naked
and exposed to thieves and robbers. It is much better therefore, says the law,
that you should wait for another opportunity, than do an act of violence, which
may probably be attended with such dangerous consequences.”
Lord
Mansfield reiterated a passage in
Semaynes
Case
that:
“the
same strict doctrine....that breaking open the outer door was a trespass but
that taking away the goods was lawful.”
39.
In
Pugh
v Griffith
(l838) 7 Add. & E 827 the sheriff seeking to execute a writ of fi. fa.
entered lawfully into a room occupied by a tenant from year to year and thence
obtained access to the part of the house occupied by the plaintiff. There he
seized certain goods. On seeking to remove the goods he found that the only
exit available for that purpose was locked. He thereupon broke the lock and
left. Lord Denman CJ held that he was entitled to do so for there was
“nothing else to be done but to open it [sc.the door] himself”.
40.
I have already referred to
Aga
Kurboolie Mahomed v The Queen
(l843) Moo. P C 239. In
Hodder
v Williams
(l895) 73 LT 394 the sheriff sought to execute a writ of fi fa over goods in a
workshop. He requested entry and was refused. He then entered by force and
was sued for trespass by the judgment debtor. The Court of Appeal considered
that the forcible entry was justified. Kay LJ drew a distinction between that
case and one of distress for rent over goods in a dwelling-house.
4l.
In her very cogent submissions Miss McLeod pointed out that she had refused to
sign a walking possession agreement. She asked where is the authority entitling
the sheriff forcibly to re-enter her home? The response of Mr Tillett QC for
the sheriff was to refer to Mather on Sheriff and Execution Law 3rd Ed. (l935)
page 88. The passage relied on states:
“If
having obtained peaceable possession of a dwelling-house the Sheriff’s
officers be forcibly ejected, or be obliged to fly under threat of bodily
injury, they may forcibly re-enter, and in such cases the Sheriff can send as
many additional officers as he may deem necessary;... Again, where the Sheriff,
having obtained peaceable possession cannot carry away the seized effects or
execute the writ without breaking the lock etc of the outer door because of its
being locked & etc and neither the execution debtor nor anyone on his
behalf are on the premises to enable the Sheriff to request them to open such
door, he is justified in breaking it open.”
The
authorities cited as support for the statement in the last sentence are
Pugh
v Griffith
(l838) 7 Add. & E 827,
Eagleton
v Gutteridge
(l843) ll M & W 465,
Aga
Kurboolie Mahomed v The Queen
(l843) Moo. P C 239 and
Bannister
v Hyde
(l860) 2 E & E 627. Mr Tillett did not submit that any of those
authorities directly justified the proposition stated in the text. The most he
felt able to submit was that if a sheriff might use force to get the goods out,
as indicated in
Pugh
v Griffith
(l838) 7 Add. & E 827, why should he not do so for the purpose of getting in.
42.
I am unable to accept that submission. In
Pugh
v Griffith
the decision of Lord Denman CJ is all dependent on the facts that the sheriff
had achieved a lawful entry and seizure. At page 839 Lord Denman said:
“The
sheriff shows a lawful entry to the house, and a lawful seizure of the
goods...and it cannot be said that there were any other doors or any other mode
of getting the goods out. Then what was the sheriff to do? The goods could
not be kept for ever in the house; and neither the plaintiff, nor anybody else
was there so that he could request them to open the door, and there was nothing
else to be done but to open it himself....he appears to be justified as a
matter of necessity in order to get the goods out to execute the writ.”
There
is no authority to the effect that as a matter of necessity the sheriff is
entitled forcibly to re-enter. He may be justified in doing so where he has
been forcibly ejected or excluded, as indicated by the other cases cited in the
footnote, but that is not what is suggested.
43.
The statutory power conferred by s.l38 authorises the sheriff to seize the
goods. It contains no express power to make a forcible entry for that purpose
and I see no grounds for implying one. Nor does the common law recognise such
a power in respect of a dwelling-house. Accordingly in my view and for
substantially the same reasons a sheriff is entitled forcibly to re-enter a
dwelling-house in the same circumstances as a bailiff, disregarding the
statutory restrictions I referred to earlier, but not otherwise. I should
reiterate, in case it is not clear already, that this conclusion is confined to
re-entry to a dwelling-house. If and insofar as a sheriff may forcibly enter
premises other than a dwelling-house I see no reason why he may not re-enter
such premises in a similar fashion.
44.
It follows that in both appeals, because that concerning the sheriff also
concerns a dwelling-house and there is no question in either of them of the
bailiff or sheriff being expelled by force, the question is whether the bailiff
or sheriff on seeking to re-enter had been deliberately excluded by the tenants
or Miss McLeod respectively. In each case that is a question of fact to be
considered in the light of the individual circumstances. But in neither case
if they had no knowledge of an intended visit by the bailiff at any particular
time will it be enough that they had locked their premises in the ordinary way
and gone about their business as normal. I turn then to the facts of each
appeal and the other points which arise in respect of each of them.
Khazanchi
v Faircharm Investments Ltd
45. By
a lease dated l3th March l990 the first defendant, Faircharm Investments Ltd
(“the Landlord”), let to the plaintiffs, Mr Khazanchi and Mr Rattu
(“the Tenants”), premises at Suite B9, Hatton Square, l6/l6A
Baldwin Gardens, London, ECl (“the Premises”) for a term of five
years from lst February l990 in consideration of a annual rent of £l3,000
and further rents in respect of service charges and insurance. The Premises
were occupied by the Tenants for the purposes of their business as a music
recording studio.
46.
By January l992 the Tenants owed the Landlords £8,9l4-54 consisting of
£6,500 for rent, £l,593-75 by way of service charge, £3l8-39 in
respect of insurance and £502-40 for interest. On l0th January l992 the
Landlord instructed the third defendant, Cuthbert & Kingsley, the business
name of Mr Amey, a certified bailiff, (“the Bailiff”) to distrain
the goods, chattels and effects of the Tenants in the Premises for the sum of
£8,9l4-54 as rent due. On l7th January l992 the Bailiff attended at the
Premises, was admitted by the Tenants, seized goods specified in the Inventory
he made at the time and entered into a Walking Possession Agreement with the
Tenants.
47.
The
Notice of Seizure of Goods and Inventory duly completed by the Bailiff gave
formal notice to the Tenants that the Bailiff had seized the goods specified in
the Inventory and that such goods would be sold if the rent of £8,9l4-54
and the expenses of the seizure were not paid to the Bailiff at his office
within 5 days. The Inventory specifying the goods included as a single item
“all recording equipment”. The Walking Possession Agreement signed
by Mr Rattu on behalf of the Tenants was expressed to be made for the
convenience of the Tenants and in consideration of the Bailiff not removing the
goods from the Premises, delaying the sale of such goods and not leaving a man
in close possession of such goods. In return the Tenants agreed (inter alia)
that the Bailiff might “re-enter the premises at any time while the
distress is in force”, that the goods in respect of which the distress
was levied “are impounded on the premises” and that the Bailiff
might “remove and sell the goods at any time after 22nd January
l992” if the amounts due had not by then been paid.
48. The
sums due not having been paid, on l2th February l992 at about 4.45 pm, having,
as he claimed, tried unsuccessfully to contact the Tenants, the Bailiff
accompanied by a police officer and a locksmith attended at the Premises. The
door was locked. The premises were unoccupied as Mr Khazanchi was in
Birmingham and Mr Rattu was in Southall, in each case in the ordinary course of
their business. The Bailiff forced entry, removed the goods, changed the lock
and left the key to the new lock with the caretaker. The whole operation took
about 4 hours. On 26th February l992 the goods so removed were sold at auction
for the total sum (net of VAT) of £l2,3l5. On l6th March l992 the Tenants
sought to surrender the lease as they were unable to continue in business, the
recording equipment having been sold. This was refused and the lease was not
determined until 2lst July l992 when the Premises were relet to another tenant.
49. On
3rd September l992 these proceedings were commenced in the Uxbridge County
Court by the Tenants. They claimed that the distress was unlawful on two
grounds: first, because the Walking Possession Agreement entered into on l7th
January l992 was not in accordance with the Distress for Rent Rules and the
forms prescribed by Law of Distress Amendment Act l888; second, because the
Bailiff was not entitled forcibly to enter the Premises on l2th February l992
to remove their goods. In addition they alleged that there had been an
agreement made between themselves and Mr Sofier on behalf of the Landlords on
25th February l992 to the effect that the Bailiff would release the goods,
though subject to the distress until the outstanding sums had been paid in
full, if the Tenants, as they did, forthwith gave him a cheque for £l,800
and paid £2,000 on 5th March l992 and every two weeks thereafter until the
outstanding amount was paid in full. Further, the Tenants asserted that their
goods had been sold at a gross undervalue and claimed damages by reference to
their true value which they put at not less than £65,498. The Bailiff
admitted that there had been an agreement with the Tenants as alleged, save
that the sum of £l,800 was to be paid in cash, not by cheque. With that
exception all the material contentions were denied by both the Landlords and
the Bailiff; in addition the Landlords counterclaimed for unpaid rent, other
sums alleged to be due and damages for breach of covenant.
50.
The action was heard by His Honour Judge Cox on l0th to l2th March l997. He
heard oral evidence from, amongst others, both the Tenants, Mr Sofier, a
representative of the Landlords, and from the Bailiff. In his judgment given
on 24th March l997 the judge concluded that the Walking Possession Agreement
was valid. There is no appeal against that conclusion. He also decided,
following the judgment of His Honour Judge Cooke in the associated appeal
McLeod
v Butterwick
,
that the Bailiff was entitled to make a forcible entry to the Premises on his
return on l2th February l992. On the issue whether there had been an agreement
between the Tenants and Mr Sofier made on 25th February l992 the judge
concluded that there had not. On this question of fact, though he acquitted
any witness of deliberately telling lies, he found the evidence of the Tenants
entirely unconvincing when tested against other factors and decided, on a
balance of probability, that there had been no such agreement as the Tenants
alleged. With regard to the value of the goods seized the judge concluded that
he could not rely on the evidence of the Tenants for their estimate of value
was the price if new in l992 of goods and equipment in fact acquired in l985.
In those circumstances he accepted the value of the goods as being the price
paid for them at the auction on 26th February l992.
5l. On
this appeal the Tenants claimed that the judge was wrong in three respects.
First, it was contended that the judge was wrong in law to have concluded that
the Bailiff was entitled to make a forcible entry to the Premises on l2th
February l992. Secondly the Tenants submitted that the judge was wrong not to
find that the agreement they alleged had been concluded between the Tenants and
the Landlords, acting through Mr Sofier, on 25th February l992. Third they
suggest that the judge was wrong to conclude that the value of the goods was
that realised at auction or, in the absence of any second-hand market, other
than the price as new discounted for any element of betterment.
52.
I have already quoted the judge’s conclusion in respect of the first
issue and decided that as a matter of law where the premises are merely locked
and unattended that is insufficient to justify a forcible re-entry. But
counsel for the bailiff pointed out that at the trial it was never suggested
that the bailiff should have given notice of his proposed re-entry so that the
question of whether the bailiff had been deliberately kept out was never
examined. He relied on the facts that Mr Amey had telephoned the premises and
left a message on the answering machine on 29th January and 7th, l0th and l2th
February. But there was no evidence what those messages were, nor whether any
of them was received by either tenant. Counsel for the Bailiff did not ask for
a new trial or for leave to adduce fresh evidence. In those circumstances, in
my view, the proper decision for this court to arrive at is that the forcible
re-entry was unjustified as a matter of law. The Tenants clearly alleged that
the original entry was forcible and wrongful. By the various defences the
defendants relied on the fact that the Bailiff was executing a warrant for
distress. As a matter of law that defence was insufficient. In my view it was
for the Bailiff to plead and prove sufficient justification in law.
Accordingly the absence of any investigation at the trial of what the messages
were, whether either tenant received any of them or why the premises were
wholly unoccupied when the Bailiff called is no reason for refusing to conclude
that the re-entry was unjustified and so a trespass at law.
53.
The Tenants did not, in my view sensibly, pursue their contention that the
judge should have found that there was on 25th February an agreement between
them and the landlords during the course of the hearing. Accordingly the only
remaining issue is that of damage. In view of the judge’s findings this
was not an issue which arose before him. But he dealt with it in conjunction
with an allegation that the distress had been excessive in that the Bailiff had
seized goods to a value substantially greater than that which was required to
pay the rent in arrears. In this connection he had to consider the allegations
of the Tenants that the auction sale had not realised the true value of the
goods.
54.
The evidence for the Tenants on this issue was that of Mr Khazanchi to the
effect that he had used the recording equipment for about 5 to 6 years. He
said that some of the equipment could not be bought second hand and that he had
not intended to replace any of it in the near future. Originally he had valued
the equipment at £65,000. After he heard the evidence of Mr Jackson, the
expert witness for the Tenants, as to value he dropped his original estimate to
£50,000. The evidence of Mr Jackson was to the effect that there was
little or no second hand market for goods of this sort and that his estimate of
value was the product of his enquiries of others concerned in the business of
sound recording. The values he used were for similar goods when new as shown
in catalogues issued in l992. He himself had not seen the goods, did not know
their age or condition and had made no allowance for depreciation. The
judge’s conclusion was:
“I
can place little or no reliance on the valuation evidence. However when the
goods were sold at auction they reached a price of £l2,3l5. This is the
only hard evidence I have so far as the value of the goods is concerned. This
is evidence on which I can do no other than rely. Of course, it was a forced
sale. However it was still a sale at which persons were in competition with
each other, and therefore a realistic value was achieved and I must accept that
that was the value. That sum, as a matter of fact either only just covered the
distress or fell a little short of it. Therefore it would be wholly wrong to
suggest that the distress was excessive regarding the value of the goods, and
further any claim which the plaintiffs might have based on the distress being
unlawful rather than illegal fails on the basis that they have not showed they
suffered any loss. Any claim for damages by the plaintiffs fails.”
55.
For the Tenants it is claimed that the judge was wrong to accept the price
realised at auction as the best evidence of the value of the goods. They also
contend that the judge was wrong to have determined that the Tenants had failed
to prove that they had suffered any loss. I would reject both those
submissions. The price realised at auction is not necessarily the best
evidence of value at any particular date but if there is no evidence, and there
was none in this case, to the effect that the auction had not been properly
advertised or conducted it is evidence a judge is entitled to accept. But as
the judge had rejected the evidence of value given by Mr Khazanchi and Mr
Jackson for good reason in this case it was the only evidence of value before
the court. In those circumstances not only was the judge entitled to accept
the evidence of the prices realised at auction but, as he indicated, in
practice bound to do so for it was both credible and unchallenged. I propose
to consider the question of loss on the basis of the prices for the goods
realised at auction.
56.
The total realised was £l2,3l5 to which was added VAT on the hammer price
of £2,l55-l9. The auctioneer’s commission and charges for
advertising and porterage, before VAT, were £l,847-25 (VAT £323-27),
£325 (VAT £56-88) and porterage £l,000. The cheque sent by the
auctioneers to the bailiff was for £l0,9l7-79. The cost of the new locks
fitted on l2th February, inclusive of VAT, was £94-3l and was paid by the
Bailiff on 3rd March. The Bailiff deducted from the amount he had received
from the auctioneer his charges of £9l6-74, which included VAT, and sent a
cheque to the Landlords for £l0,00l-05. The rent for which the distress
had been levied amounted in all to £8,9l4-54.
57.
It was contended by counsel for the Tenants that on these figures it was shown
that the Tenants had sustained a loss because it was not shown that the
Landlords would account for the VAT on the hammer price. If that were so then
the gross proceeds, including VAT on the goods distrained, would have been
£l4,470-l9 and the total charges of the auctioneer and the bailiff
including VAT to be deducted therefrom was £4,469-l4. It is not clear
whether the price of the new lock was included in the charges of the bailiff or
was extra, but it does not matter. The surplus on this basis was
£l0,00l-05 or £9,906,74. This exceeds the amount of £8,9l4-54
for which the distress had been levied. I do not accept this submission.
There was no investigation at the trial of how the VAT element on the sums
realised and the charges paid was or should have been dealt with. The onus was
on the Tenants to establish their loss. If the Landlords were not registered
for VAT then the auctioneer and the bailiff should not have accounted to them
for the VAT on the hammer price; if they were I see no reason to infer that the
VAT would not have been properly accounted for. In my view it is clear that
VAT should be left out of account in respect of both the receipts and payments.
On this footing the amounts realised by the sale of the goods distrained was
£l2,3l5, the charges and expenses of the auctioneer were £3,l72.25
and those of the bailiff were about £750. Thus the net realisation was
£8392-75 or some £52l-79 less than the outstanding rent for which the
distress had been levied. Accordingly in my view the judge was right to
conclude that the Tenants had not established any loss arising from the sale of
the goods removed on l2th February.
58.
The Tenants claim that, nevertheless, they are entitled to damages under a
variety of heads and descriptions, namely, nominal damages for trespass,
damages for breach of the covenant for quiet enjoyment and/or wrongful
exclusion from the demised premises and damages for breach of the walking
possession agreement. These claims and that for damages for wrongful
interference with the goods were disputed by the Bailiff on the grounds that
recovery under any of the suggested heads would be contrary to the requirements
of s.l9 Distress for Rent Act l737.
59.
That section applies:
“where
any distress shall be made...and any irregularity or unlawful act shall be
afterwards done by the party..distraining..”
In
my view it is plain that the section applies, at least, to the stages of the
overall process of distress which follow the initial seizure and impounding.
Thus the section is applicable at the stage of re-entry with which this appeal
is concerned. In cases to which the section applies the consequences are
stated to be that:
“...the
distress itself shall not be therefore deemed to be unlawful, nor the
party..making it be deemed a trespasser ab initio; but the party..aggrieved by
such unlawful act or irregularity shall or may recover full satisfaction for
the special damage he...shall have sustained thereby, and no more, in an action
for trespass or on the case..”
60.
Thus the bailiff may not be treated as a trespasser ab initio because of some
intervening irregularity. And the claimant may only recover satisfaction for
the special damage sustained because of that irregularity. The only special
damage must be that arising from the wrongful re-entry. But on the facts of
this case the only damage which can be suggested, and it was not in fact
claimed, is the damage (if any) to the door. But the cost of the new lock,
£94-3l, was not charged to the Tenants because the proceeds of sale of the
goods, after deduction of the other costs and expenses for which the Tenants
were liable, were insufficient to cover it. Nor was there any suggestion of
any damage to the door for which the Tenants were liable or charged.
6l.
Further it is clear that even if it had not failed on the facts the claim for
unlawful interference with the Tenants’ goods would have been barred by
this section. There is no doubt that the Bailiff was entitled to possession
of the goods for he had impounded them and had the benefit of the Walking
Possession Agreement. As pointed out in
Lee
v Gansel
(l774) l Cowp. l in relation to the execution of a writ, though the entry may
have been wrongful the removal of the goods was not. It is only possible to
avoid this consequence if the bailiff is treated as a trespasser ab initio by
virtue of the unlawful re-entry. But that is precisely what the section
prohibits.
62.
In any event in my view the claim would have failed on the grounds of
causation. Even if, as I have held, the Bailiff was not entitled to re-enter
on l2th February in the way he did he was entitled to re-enter by force if he
was wrongly excluded. Had he given proper notice of his intention to re-enter
I have no doubt he would have been entitled to obtain the goods for the purpose
of the auction on 26th February. In that event he would have sold them in
precisely the same circumstances as those in which in fact he did. There is no
suggestion that the goods were damaged or depreciated by the manner or timing
of their removal. In my judgment no claim under this head is made out.
63.
I would also reject the claim for damages for breach of the Walking
Possession Agreement. The wrong for which damages is sought is the
Bailiff’s forcible re-entry of the demised premises without the consent
of the Tenants or justification in law. The fact that the Walking Possession
Agreement did not give the requisite consent does not mean that the wrong of
which complaint is made is for a breach of that contract rather than for the
trespass. In my view the Tenants cannot avoid the restriction in the section
by pleading their claim as a breach of contract.
64.
For similar reasons I would reject the claim for breach of the covenant for
quiet enjoyment. This covenant is contained in Clause 3(a) of the former lease
of the demised premises by force of Clause 3 of the Lease dated l3th March
l990. It was in the normal form whereby the landlord covenanted:
“that
the Tenants paying the rents hereby reserved and performing and observing the
covenants on their part herein contained shall peaceably hold and enjoy the
demised premises during the said term without any interruption by the Landlords
or any person rightfully claiming under or in trust for them.”
It
was established in
Dawson
v Dyer
(l833) 5 B & Ad 584 that the payment of the rent is not a condition
precedent to the performance of the covenant. But the unlawful act or
interruption complained of is still the forcible re-entry. The Tenants are
entitled to full satisfaction but no more for that wrong. They cannot avoid
the prohibition by pleading the wrong in an alternative form.
65.
In these circumstances, in my view, the Tenants have failed to make out any
special damage for the purposes of s.l9 Distress for Rent Act l737. It is
established that in those circumstances the bailiff cannot be liable for
nominal damages either.
Rogers
v Parker
(l856) l8 CB ll2, l25;
Lucas
v Tarleton
(l858) 3 H & N ll6.
66.
The overall result is that, though the judge was wrong in respect of the
lawfulness of the re-entry, on the facts of the case and applying the
provisions of s.l9 Distress for Rent Act l737 no recoverable damage has been
made out so that the action fails. In those circumstances in my view the
appeal should be dismissed because there is no reason to vary the order of the
judge.
McLeod
v Butterwick
67.
In l992 the plaintiff, Miss McLeod, brought proceedings in the County Court
against Wolsey Hall Oxford Ltd, Middlesex University and the Common
Professional Examination Board. She lost and by order made on 25th November
l993 her action was dismissed with costs on scale l. The costs of the Common
Professional Examination Board (“the judgment creditor”) were taxed
in the sum of £7,295-43, the certificate in that amount being issued on
l4th October l994. The action was transferred to the High Court on 5th January
l995 for the purpose of enforcement after which, on l7th January l995, the
judgment creditor issued a writ of fieri facias addressed to the Sheriff of
Greater London, the defendant Mr Butterwick (“the Sheriff”).
Though on 26th January l995 Middlesex University issued a further writ of fieri
facias in respect of their costs of the action which had been taxed at
£2,609-96 the certificate of taxation was set aside by the County Court on
lst August l995. In any event this action is based exclusively on the writ of
fi. fa. issued by the Judgment Creditor.
68. On
24th January l995 Mr Warby, one of the Sheriff’s officers, attended at
the premises of Miss McLeod at 96 Berkeley Avenue, Greenford, Middlesex. Mr
Warby was admitted by Miss McLeod and claims formally to have seized the goods
then in the premises. Miss McLeod refused to enter into a walking possession
agreement in respect of any of the goods so seized. She claimed to be entitled
to some of them in the name of Sally McLeod Associates; others were claimed by
third parties. The claims by third parties were admitted by the Judgment
Creditor but interpleader proceedings were commenced by the Sheriff in respect
of the claims by Sally McLeod Associates. The claim of Sally McLeod Associates
was barred by Master Prebble by order made on 27th November l995 and his order
was upheld on appeal by Mr Baker QC, sitting as a deputy judge of the Queens
Bench Division, on l3th December l995. The judgment creditor thereupon
instructed the Sheriff to proceed with the execution at any time after l8th
December l995.
69.
On l9th December l995 at about ll am Mr Warby attended at 96 Berkeley Avenue to
execute the writ of fieri facias. Miss McLeod was out at work. Mr Warby rang
the bell but there was no answer. Finding the door to be locked Mr Warby
called a locksmith, forced an entry and procured the locksmith to install new
locks so that the premises should be secure after his departure. At about
ll.45 am Miss McLeod, having been alerted by a neighbour, and a police
constable arrived. In due course and notwithstanding the protests of Miss
McLeod Mr Warby seized the goods to which, in accordance with the order in the
Interpleader proceedings, he considered that he was entitled and organised
their removal to the furniture van which he had arranged to be waiting outside.
70.
These events gave rise to a flurry of forensic activity. At about 2.30 pm on
the same day Miss McLeod obtained an order against the judgment
creditors’ solicitors from District Judge Price sitting in the Uxbridge
County Court forbidding the removal of her goods or the sale of such of them as
had been removed. Later that afternoon the District Judge’s order was
countermanded by a Master of the Queens Bench Division. On 2lst December l995
Sachs J refused the application of Miss McLeod to set aside the execution.
7l.
These proceedings were commenced by a writ issued by Miss McLeod in the
Chancery Division on 27th December l995. She seeks from the Sheriff damages
for trespass to her goods from what she alleges to have been an unlawful entry,
interference with and removal of her personal possessions. In addition she
applied by motion for an injunction to restrain the Sheriff from selling her
goods and from entering her house except pursuant to an order of a court of
competent jurisdiction. That is the application which came before His Honour
Judge Cooke on l3th February l996 and was dismissed by him. He also refused
leave to appeal but on 20th February l996 such leave was granted by Sir Thomas
Bingham MR.
72. There
were three issues before Judge Cooke; first, whether the Sheriff had taken
possession of the goods on his first visit on 24th January l995; second, if so
was he entitled by virtue of such possession to break into Miss McLeod’s
house on his second visit on l9th December l995; and third, even if he had not
been entitled to break in was he nevertheless entitled to sell the goods he
removed on that occasion. With regard to the first issue the judge observed
that Mr Baker QC had heard oral evidence on the appeal in the Interpleader
proceedings and had decided, as between Miss McLeod and the judgment creditor,
that the Sheriff had taken possession of the goods. He considered that, though
the issue was not res judicata as between Miss McLeod and the Sheriff he could
not treat her continuing assertion that the Sheriff had not taken possession as
a serious one requiring determination at a trial. After an extensive review of
the authorities the judge decided that the Sheriff was entitled to force an
entry on the occasion of his second visit and that the Sheriff was entitled to
sell the goods then removed whether his entry had been lawful or unlawful.
73.
By her appeal Miss McLeod seeks from this court the interlocutory relief she
sought from Judge Cooke, namely an injunction restraining the Sheriff from
selling the goods removed from her home on l9th December l995 and an injunction
restraining him from entering her home save pursuant to an order of a court of
competent jurisdiction made after hearing both parties. There has been no
trial and we are not concerned with whether she is entitled to any damages,
including the aggravated and exemplary damages she has claimed. In passing I
observe that we were not referred to any statutory provision applicable to a
sheriff comparable to s.l9 Distress for Rent Act l737.
74.
Before us Miss McLeod took the same points as she raised before Judge Cooke.
In addition she suggested that the writ of fi.fa. was invalid because it was
for an excessive amount. This point was based on the facts that there had been
costs orders in her favour, amounting to £803-04, as well as that made
against her. The writ was expressed to be for the sum of £7,295-43 and
costs of £4l-7l and interest at the rate of 8% pa. This represented the
full amount of the order for costs against her without allowing any set-off for
those in her favour. But in my view those facts do not indicate that the writ
of fi.fa. was invalid. The writ was in the usual form of a command to the
Sheriff to seize the goods of the debtor. The command is made for the purpose
of realising out of the goods so seized the amount specified in the writ. But
neither seizure nor sale pursuant to ss.l38, l38A and l38B Supreme Court Act
l98l is dependent on any particular amount being owed. If the amount is
overstated it does not invalidate the execution so long, at least, as there is
some judgment debt. In any event an undertaking had been given by the judgment
creditors solicitors to permit the set-off Miss McLeod claimed.
75.
Miss McLeod criticised the judge’s uncritical acceptance of the
Sheriff’s allegations of seizure and impounding on the occasion of his
first visit on 24th January l995. In her affidavit sworn on llth January l996
she had stated in unambiguous terms that there had been no indication of
seizure, merely a demand for payment of the judgment debt. She was not
cross-examined on that affidavit at the hearing of the interpleader proceedings
before Mr Baker. The oral evidence which Mr Baker accepted was the one-sided
version of the Sheriff’s officer. She submits with some force that the
so-called finding of Mr Baker was not made after hearing oral evidence on both
sides and is open to challenge by her. But the judge only found that on the
application before him he should be slow to regard this issue as a serious one
to be tried. He proceeded on the basis that the issue was likely to be decided
in all probability in the Sheriff’s favour. For my part I think that the
judge was in the circumstances entitled to take that approach. He was not
deciding the issue, merely weighing it for the purpose of exercising his
discretion.
76.
I pass then to the question whether the Sheriff’s re-entry on l9th
December l995 was lawful or not. I have already quoted the passage from the
judge’s judgment in which he concluded that point against Miss McLeod.
He did so on the footing that the door was locked and that was sufficient
justification for the forcible re-entry, notwithstanding that no notice had
been given to Miss McLeod of his intention to re-enter. For the reasons I have
already given I disagree with the judge’s conclusion. In my judgment the
Sheriff’s forcible re-entry on l9th December l995 was unlawful and a
trespass. It may be that it will be held at the trial that Miss McLeod is
entitled to damages on account of that trespass but it does not follow at this
stage that she is entitled to either of the injunctions she seeks.
77.
The judge held that in the absence of a walking possession agreement the
Sheriff does not have to remain in close possession to avoid abandoning
possession of the goods seized. He concluded that notwithstanding the interval
of ll months between the first entry and the second there had been no
abandonment because of the prosecution of the interpleader proceedings. In my
view he was right in respect of both matters. Thus at the time of the forcible
re-entry the Sheriff was in possession of the goods which, by virtue of ss.l38
to l38B Supreme Court Act l98l, he had been entitled to seize and was entitled
to sell. In these circumstances I do not see how an injunction to restrain
the sale of the goods so seized and now stored in a warehouse off Miss
McLeod’s premises could be justified. Miss McLeod has not paid the
judgment debt and, apparently, has no intention of doing so. As pointed out in
Lee
v Gansel
(l774) l Cowp.l, though the re-entry may have been wrongful the removal of the
goods was not. The statutory right to sell continues to subsist and I see no
reason to inhibit its exercise.
78.
The same point may be made with regard to the injunction sought to restrain
entry except pursuant to an order of the court. The Sheriff does have a right
to re-enter otherwise than pursuant to an order of the court, namely if removed
or excluded by force. But I have no reason to think that he threatens and
intends to re-enter the home of Miss McLeod otherwise than as permitted by law
as established by the decision of this court on these appeals. Though his
re-entry on l9th December l995 was unlawful and a trespass there is no reason
to think that it will be repeated unless an interlocutory injunction is
granted. It may well be that at the trial it will be appropriate, if the judge
thinks fit, to make a declaration as to the unlawfulness of the re-entry as
well as giving judgment for such damages as Miss McLeod may establish. But in
my judgment there is no good reason for granting the injunction sought at this
stage.
79.
It follows that, as in the case of
Khazanchi
v Faircharm Investments Ltd
,
though for different reasons, I see no reason to interfere with the order the
judge actually made. Accordingly, though I disagree with the judge’s
conclusion on the lawfulness of the re-entry, I would dismiss this appeal.
Conclusion
80.
In the event I would dismiss both appeals though, in each case, I have
concluded that the judge was wrong on the important point of principle. This
may appear to be an unsatisfactory result for in one sense it means that an
illegal act has been inflicted on the plaintiffs without any immediate means of
redress being afforded to them by the law. But this is the consequence of the
application to the facts of the provisions of s.l9 Distress for Rent Act l737
in the one case and the circumstances including the fact that there has not yet
been a trial in the other. However it should be noted that in cases such as
these there may be a sanction pursuant to s.l Criminal Damage Act l97l. In
other cases the provisions of s.6 Criminal Law Act may apply also.
LORD
JUSTICE WALLER: I agree.
LORD
JUSTICE STUART-SMITH: I also agree.
Order: Khazanchi:
Appeal dismissed; no order as to
costs
in appeal or below; application for
leave
to appeal to the House of Lords refused.
McLeod:
Appeal dismissed; no order for costs
here
or below; legal aid taxation for applicant.
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URL: http://www.bailii.org/ew/cases/EWCA/Civ/1998/471.html