[2007] EWCA Civ 1091, [2007] PLSCS 222, 7 November 2007. The local authority (S) appealed against a decision that it was liable to the respondent (D) for acting in bad faith. D had claimed right to buy from S in 2001 and served a notice to this effect, but his claim progressed with significant delays. A dispute continued regarding the plan and position of D's flat and whether parking rights should be attached. S claimed there was no action for it to take as D had denied access to confirm the plans. D served notice for subsequent rent payments to count towards the purchase price, and on receipt of an unsatisfactory lease he responded with notices of delay. The court held that although D had not submitted a notice of delay at his earliest opportunity, he could be held as having done so and S's behaviour amounted to misfeasance. S appealed. "Held": S had been entitled to serve notice that it had no action to take when D denied them access. D was not entitled to be treated as serving a notice of delay when he had not done so, though his eventual notice was valid. His period of rent offset purchase price was reduced. The evidence did not support bad faith on the part of S. Appeal allowed in part.