BAILII is celebrating 24 years of free online access to the law! Would you consider making a contribution?
No donation is too small. If every visitor before 31 December gives just £1, it will have a significant impact on BAILII's ability to continue providing free access to the law.
Thank you very much for your support!
[Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback] | ||
England and Wales Court of Appeal (Civil Division) Decisions |
||
You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> London Borough of Haringey v Ahmed & Anor [2017] EWCA Civ 1861 (21 November 2017) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2017/1861.html Cite as: [2018] 1 P &CR DG12, [2018] HLR 9, [2017] EWCA Civ 1861 |
[New search] [Printable RTF version] [Help]
ON APPEAL FROM THE CHANCERY DIVISION
HIS HONOUR JUDGE JARMAN QC
Strand, London, WC2A 2LL |
||
B e f o r e :
and
LORD JUSTICE HAMBLEN
____________________
The Mayor and Burgesses of the London Borough of Haringey |
Appellant |
|
- and - |
||
(1) Ms Hasna Khatun Ahmed (2) Ms Shaheeda Ahmed |
Respondents |
____________________
Martin Westgate QC and David Cowan (instructed by Miles & Partners) for the Second Respondent
Hearing date : 2 November 2017
____________________
Crown Copyright ©
Lord Justice Hamblen :
Introduction
Factual background
"6. ….. Mr Ahmed was already working in the UK and living with his mother prior to his marriage. He had a good command of the English language, unlike his wife. Upon marriage, she came to the UK from Bangladesh and lived with her new husband and mother in law. They lived first in Wales, where their first child was born, but when Mr Ahmed lost his job the family moved to Manchester, where the second child was born. The family moved to London where they lived in two or three different locations before moving to the property.
7. Each of these homes was rented and it was Mr Ahmed who dealt with the lettings because of his English language skills and because, said Ms Ahmed in her oral evidence given with the assistance of an interpreter, she trusted him. However, she also said that he and his mother never informed her of any of the accommodation decisions and she had no involvement in them.
8. In August 1986, when the family were living in a rented two room flat in north London, Mr Ahmed applied for rehousing. The application is not available, but a medical form in support is. The names of Mr Ahmed and his mother are written in at the top of the form. The first paragraph to be completed is titled "Details of persons included in this application," under which Mr Ahmed inserted his name in the box marked applicant, and in the column "relationship to applicant" he inserted the names of the rest of his family members with the relationship of each to him. Health issues were then written on the form relating to his mother including impaired mobility, to his older son, and to his wife who by then was pregnant, and reference was also made to the cramped living and sleeping conditions. Mr Ahmed then signed the form.
…..
10. The application was granted on the basis of homelessness….."
The judgment
The Grounds of Appeal
(1) The judge erred in law in finding that Mr and Ms Ahmed entered into possession of the Property in October 1988 as secure tenants pursuant to the first agreement;
(2) The judge erred in law (or in law and in fact) in holding on the basis of the primary facts found by him that Mr Ahmed had authority to execute the first agreement as agent for his wife;
(3) Alternatively, if ground 2 is rejected, the judge erred in law (or in law and fact) in holding that Mr Ahmed did not also act as agent for his wife in surrendering the first tenancy;
(4) The judge erred in law in failing to consider that the burden of establishing that Mr Ahmed acted as an agent for his wife, and the extent of his agency, rested with Ms Ahmed.
(1) If there was no agency, the first agreement was ratified by Ms Ahmed so that the second agreement took effect as a concurrent tenancy;
(2) Mr Ahmed did not surrender the first agreement when he signed the second agreement;
(3) It would be disproportionate to make a possession order.
Appeal grounds (1)(2) and (4)
"Agreement between principal and agent may be implied in a case where one party has conducted himself towards another in such a way that it is reasonable for that other to infer from that conduct assent to an agency relationship".
"(1) Agency is the fiduciary relationship which exists between two persons, one of whom expressly or impliedly manifests assent that the other should act on his behalf so as to affect his relations with third parties, and the other of whom similarly manifests assent so to act or so acts pursuant to the manifestation. The one on whose behalf the act or acts are to be done is called the principal. The one who is to act is called the agent. Any person other than the principal and the agent may be referred to as a third party.
(2) In respect of the acts to which the principal so assents, the agent is said to have authority to act; and this authority constitutes a power to affect the principal's legal relations with third parties.
(3) Where the agent's authority results from a manifestation of assent that he should represent or act for the principal expressly or impliedly made by the principal to the agent himself, the authority is called actual authority, express or implied. But the agent may also have authority resulting from such a manifestation made by the principal to a third party; such authority is called apparent authority.
(4) A person may have the same fiduciary relationship with a principal where he acts on behalf of that principal but has no authority to affect the principal's relations with third parties. Because of the fiduciary relationship such a person may also be called an agent."
"39. The parties were broadly agreed upon the relevant law in the light of the recent Supreme Court decisions of Henderson v Foxworth Investments Ltd [2014] UKSC 41; [2014] 1 WLR 2600 and McGraddie v McGraddie [2013] UKSC 58; [2013] 1 WLR 2477 the latter of which cited with approval Hamilton v Allied Domecq Plc [2006] SC 221, paragraph 85. In the latter case it was said:
"If findings of fact are unsupported by the evidence and are critical to the decision of the case, it may be incumbent on the appellate court to reverse the decision made at first instance."
In Henderson the Supreme Court (paragraph 62) also said:
"It does not matter, with whatever degree of certainty, that the appellate court considers that it would have reached a different conclusion. What matters is whether the decision under appeal is one that no reasonable judge could have reached."
We have also had regard to the last three reasons why appellate courts are warned not to interfere with findings of fact unless compelled to do so as enumerated by Lewison LJ in Fage UK Ltd v Chobani UK Ltd [2014] EWCA Civ 5:
"iv) In making his decisions the trial judge will have regard to the whole of the sea of evidence presented to him, whereas an appellate court will only be island hopping.
v) The atmosphere of the courtroom cannot, in any event, be recreated by reference to documents (including transcripts of evidence).
vi) Thus even if it were possible to duplicate the role of the trial judge, it cannot in practice be done."
40. There will be (and have been) rare cases where an appellate court is compelled to set aside findings of fact made by an experienced trial judge but we are far from convinced that that is the case here. None of the challenged findings can be said to be unsupported by the evidence and the decision is certainly not one that no reasonable judge could have reached…"
"11. Ms Ahmed says that she was unaware until much later of the application to rehouse, or of the first (or indeed the second) agreement and that she left it to her husband to deal with accommodation. Neither agreement was signed by her. She agreed in cross examination that he acted on her behalf in such matters at this time, although that changed later on. In her witness statement she gave details of controlling and abusive behaviour on the part of Mr Ahmed. She added in her oral evidence that "mother and son used to do everything together.
…..
15. The focus of oral submissions, as to whether the first agreement was effective to give Ms Ahmed a contractual right to a tenancy, was upon whether in signing it Mr Ahmed was acting as the agent for his wife. Mr Westgate also submits that the course of conduct, whereby Ms Ahmed left it to her husband to find accommodation for the family, gave rise to an implied agreement that it was reasonable for Mr Ahmed to infer assent by his wife to an agency relationship so as to enable him to sign the first agreement on her behalf (see Bowstead & Reynolds on Agency, 20th edition Article 8).
16. Mr Grundy does not dispute that as a principle, but submits that such inference is not reasonable where Ms Ahmed did not then know of any of her husband's dealings in respect of the property. However, in my judgment the course of conduct in Mr Ahmed securing a series of rented accommodation for the family beforehand with his wife accepting that he could act for her in doing so and trusting him is sufficient to give rise to an implied agency in the renting of the property. That in my judgment also meets Mr Grundy's point that she could not have had the necessary intention to enter into a legal agreement."
(1) She had had no involvement in finding accommodation for the family;
(2) She was unaware that Mr Ahmed had applied to the Council as homeless;
(3) She did not know that the Council had offered them a tenancy of the Property;
(4) She did not know about the appointment to sign the first agreement;
(5) She did not know about the appointment to sign the second agreement.
"Whenever he would do anything he wouldn't involve me, so he wouldn't tell me what was being done. He would never tell me anything….
Whatever he would do he would do of his own accord".
Respondent's Notice ground (2) – no surrender
"11. I turn to the law. It was common ground that the legal test for surrender by operation of law, is essentially accurately set out in Woodfall's Law of Landlord and Tenant. I am reading from an edition which appears to have a date of January 2007. Paragraph 17.018 says:
"There is no legal distinction between a surrender by operation of law and an implied surrender. The terms surrender by operation of law 'is applied to cases where the owner of a particular estate has been a party to some act the validity of which he is afterwards estopped from disputing, and which would not be valid if his particular estate had continued to exist …'"
12. There the law treats the doing of such an act as constituting a surrender. This principle does not depend on the actual intention of the parties but on estoppel. A surrender by operation of law does not depend on the intention of the parties; it takes place independently and, even in spite of intention, the foundation of the doctrine is estoppel.
13. Most critically for present purposes is para.17.020, headed "Act must be unequivocal":
"The conduct of the parties must unequivocally amount to an acceptance that the tenancy has ended. There must either be relinquishment of possession and its acceptance by the landlord, or other conduct consistent only with the cesser of the tenancy, and the circumstances must be such as to render it inequitable for the landlord or the tenant to dispute that the tenancy has ceased."
14. The judge, having made the finding of fact to which I have referred, said this at [78]:
"In my judgment, considering all the facts above, the acts of the Tatanaki family, which Artworld must be taken to have authorised, amount to much more than merely protecting the property or seeking to make the best of the Safaryans having departed, and go significantly beyond anything consistent with the continued existence [of] the tenancy."
The test she applied was to look for acts significantly beyond anything consistent with the continued existence of the tenancy.
15. Mr Driscoll was inclined to say that that was not quite right; that he preferred the formulation in Woodfall. To my mind, it makes no difference one way or the other. If the landlord has done something significantly beyond anything consistent with the continued existence of the tenancy, he will have done something which is unequivocal…."
Respondent's Notice ground 1 - ratification
"Where an act is done purportedly in the name or on behalf of another by a person who has no actual authority to do that act, the person in whose name or on whose behalf the act is done may, if the third party had believed the act to be authorised, by ratifying the act, make it as valid and effectual, subject to the provisions of Article 14 to 20, as if it had been originally done by his authority, whether the person doing the act was an agent exceeding his authority, or was a person having no authority to act for him at all."
"Ratification is not effective where to permit it would unfairly prejudice a third party, and in particular –
(1) Where it is essential to the validity of an act that it should be done within a certain time, the act cannot be ratified after the expiration of that time, to the prejudice of any third party;
(2) Ratification may not be recognised if it will affect proprietary rights in either real or personal property, including intellectual property rights, which have arisen in favour of the third party or others claiming through him since the act of the unauthorised agent;
(3) The ratification of a contract can only be relied on by the principal if effected within a time after the act ratified was done which is reasonable in all the circumstances."
"…. In my view the correct statements of principle are contained in the judgment of Cotton L.J. in Bolton Partners v. Lambert (1889) 41 ChD 295 , 306-307:
"The rule as to ratification by a principal of acts done by an assumed agent is that the ratification is thrown back to the date of the act done, and that the agent is put in the same position as if he had had authority to do the act at the same time the act was done by him. . . . The rule as to ratification is, of course, subject to some exceptions. An estate once vested cannot be divested, nor can an act lawful at the time of its performance be rendered unlawful by the application of the doctrine of ratification."
In this part of his judgment, as I read it, Cotton L.J. was giving examples of exceptions to the general principle of ratification rather than setting out an exhaustive list of exceptions. The Court of Appeal in that case treated the decision in Bird v. Brown, 4 Exch. 786 as an instance of the first exception, namely that ratification could not operate to divest ownership, in that case of goods, which had previously vested in the purchaser, the purchaser's ownership of the goods being rendered free of any qualification by the termination of the transit of the goods. Another exception is that in Walter v. James (1871) L.R. 6 Ex. 124. There the defendant was indebted to the plaintiff. The amount of the debt was disputed. S. who had acted as the defendant's attorney in the matter of the plaintiff's claim, but after his authority had been withdrawn by the defendant, paid the plaintiff £60 in discharge of the disputed claim. Later S. requested the plaintiff to repay him the £60 which the plaintiff did. The plaintiff then sued the defendant for debt. The defendant pleaded as to £60 of the alleged debt that that sum had been paid by S. and the defendant was then entitled to ratify that payment. The court consisting of Kelly C.B., Martin and Cleasby BB. decided that the plaintiff and S. had, prior to any purported ratification by the defendant, been entitled to cancel what they had done and that consequently the plea of payment was not proved. In the course of his judgment Kelly C.B. said, at p. 127:
"And now the question is, whether the defendant can by his plea of payment adopt and ratify the act of Southall, although before action that act had, by arrangement between the plaintiff and Southall, been undone."
Thus if the act which the putative principal later seeks to ratify has been undone or cancelled by the assumed agent there can be no effective ratification.
It follows in my view that where the putative principal seeks to ratify not a contract but an act done by an assumed agent - in this case the issuing of the writ - the first question is whether that act still existed at the moment of the purported ratification. In Walter v. James, L.R. 6 Ex. 124 it did not because the £60 had been repaid. In the present case the writ came into existence on 19 April 1988 and remains in existence unless and until it is struck out as being an abuse of process. It was still in existence in May 1991 when the liquidators purported to ratify it. I would conclude that ratification in this case has been effected, unless another exception established by the case law to the general principle applies.
The other exception which has to be considered in the present case is that indicated by Cotton L.J. in the passage cited by the words "an estate once vested cannot be divested." I would suggest that that exception ought to be stated in these terms: that the putative principal will not be allowed to ratify the acts of his assumed agent, if such ratification will affect adversely rights of property in either real or personal property including intellectual property, which have arisen in favour of the third party or others claiming through him since the unauthorised act of the assumed agent."
Respondent's Notice ground (3) - proportionality
"41. That leads on to the final ground, relating to Article 8 and the right to respect for a person's home. Article 8(2) provides so far as material:
"There shall be no interference by a public authority with the exercise of this right except such as is in accordance with the law and is necessary in a democratic society . . . for the protection of the rights and freedoms of others".
42. This ground is also undermined to some extent by my finding of a lack of assurance in 2006. In carrying out the required balance, it is accepted by Mr Westgate that ordinarily the right of the authority to recover possession at common law and to decide who should occupy its accommodation will provide a very strong case for the making of an order which would be proportionate, but that may be factors which tell the other way (see Manchester CC v Pinnock [2010] 3 WLR 1441; [2010] UKSC 45).
43. Such factors here are, he submits, the length of occupation, the alleged assurance in 2006, the disability of Ms Ahmed and the impact of eviction upon her. At the moment, she needs constant care by two of her children who so arrange their work patterns that one of them can be with her at all times. She is presently in receipt of Disability Living Allowance, at the higher rate in terms of care and mobility. Whilst the needs of others must be taken into account, it should not be the case that the needs of one family should trump the needs of this family.
44. I accept those submissions, but as Mr Grundy eloquently puts it, social housing does not mean a home for life. There may be a time in a person's life when it is needed more than others, for example when there are several young children in the family. Others now have a pressing need for a four-bedroom home just as the Ahmed family did in 1988. The family has been given sufficient security for the children to make their own way in the world, and this court, by dint of a proportionality argument should not in effect make the allocation which is a matter for the authority."
"17. …. the test which the courts must apply, whether described as proportionality or as deciding whether eviction is "necessary in a democratic society" is not, in my judgment, a bright line test. It is more in the nature of a value judgment. If a judge is required to apply a clear legal rule to a given set of facts, an appeal court can decide for itself whether that given set of facts measure up to the legal rule. But "the vaguer the standard and the greater the number of factors which the court has to weigh up in deciding whether or not the standards have been met, the more reluctant an appellate court will be to interfere with the trial judge's decision": Re Grayan Building Services Ltd [1995] Ch. 241 at 254 per Hoffmann L.J. In my judgement, this is the kind of decision in which an appeal court should be reluctant to reverse the value judgment of the trial judge.
18. The question of proportionality in relation to art.8 arises in many fields of law: immigration and the placement of children for adoption are two examples. In Re B (A Child) [2013] UKSC 33; [2013] 1 WLR 1911 Lord Neuberger (with whom Lords Wilson and Clarke agreed) said at [91]:
"That conclusion leaves open the standard which an appellate court should apply when determining whether the trial judge was entitled to reach his conclusion on proportionality, once the appellate court is satisfied that the conclusion was based on justifiable primary facts and assessments. In my view, an appellate court should not interfere with the trial judge's conclusion on proportionality in such a case, unless it decides that that conclusion was wrong."
…..
20. Accordingly in my judgement the question for this court is not whether we would have made the same decision as the recorder, but whether her decision was one that was open to her."
(1) The length and circumstances of Ms Ahmed's occupation, including that her lack of secure status arises because she did not become or remain a joint tenant through the actions of her then husband in respect of whom there was unchallenged evidence of abusive and controlling behaviour.
(2) The assurance that Ms Ahmed believed she had been given in 2006.
(3) Ms Ahmed's needs as a disabled person, and the impact of eviction from her home upon her.
"… ordinarily the right of the authority to recover possession … and to decide who should occupy its accommodation will provide a very strong case for the making of an order which would be proportionate, but that [there] may be factors which tell the other way".
Conclusion
Lord Justice Lewison :