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Muscat v Smith

Series: Estates Gazette ; [2003] 40 EG 148-155(8) | Estates Gazette ; [2003] 30 EG 144 (CS)(1)Publication details: 2003Subject(s): Online resources: Summary: [2003] EWCA Civil 962, 10 July 2003. Appellant (M), a statutory tenant, had withheld rent because of lengthy, disruptive remedial work undertaken by the respondent landlord's (S) predecessor in title. On purchasing the freehold, S commenced possession proceedings against M because of rent arrears. M claimed an equitable set-off in respect of the arrears. The judge held that S was only liable to M for damages after purchasing the freehold and that M had no right of set-off against S for breaches of covenant by S's predecessor and had invalidated any possible right of set-off because of his delay in asserting it. As M could not pay off his arrears, a possession order was reasonable. M appealed. "Held" appeal allowed. The reasoning that, since the tenant had endured years of disrepair under the predecessor landlord without taking legal action, it would be unfair to allow his claim against the present landlord, was untenable. M did have an equitable set-off against the rent arrears that S had inherited. If M intended to rely on equitable set-off, he should await a claim for arrears and plead his damage in answer to it. The claim and counterclaim would be remitted to the County Court. View judgment at www.bailii.org.
Holdings
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Law report London Journal article ABS67087 (Browse shelf(Opens below)) 1 Available 123766-1001

[2003] EWCA Civil 962, 10 July 2003. Appellant (M), a statutory tenant, had withheld rent because of lengthy, disruptive remedial work undertaken by the respondent landlord's (S) predecessor in title. On purchasing the freehold, S commenced possession proceedings against M because of rent arrears. M claimed an equitable set-off in respect of the arrears. The judge held that S was only liable to M for damages after purchasing the freehold and that M had no right of set-off against S for breaches of covenant by S's predecessor and had invalidated any possible right of set-off because of his delay in asserting it. As M could not pay off his arrears, a possession order was reasonable. M appealed. "Held" appeal allowed. The reasoning that, since the tenant had endured years of disrepair under the predecessor landlord without taking legal action, it would be unfair to allow his claim against the present landlord, was untenable. M did have an equitable set-off against the rent arrears that S had inherited. If M intended to rely on equitable set-off, he should await a claim for arrears and plead his damage in answer to it. The claim and counterclaim would be remitted to the County Court. View judgment at www.bailii.org.