R v Hackney LBC, ex parte Structadene Ltd
R v Hackney LBC, ex parte Structadene Ltd
- 2001
- Estates Gazette [2001] 12 EG 168-174(7) .
QBD 10 November 2000. The council (A) decided to sell some industrial units occupied by tenants at auction. Company (B) expressed an interest in buying these. On the day of the auction A informed B the land was to be sold to the tenants at a cost of £400,00. B put in a higher offer, but this was rejected. In court A conceded it had acted unlawfully by not taking adequate steps, set out in the Local Government Act 1972 S123, to obtain best value for the units. However, A also contended that its contract with the tenants could not be set aside, due to the rights afforded to third parties by s128(2) of the 1972 Act. "Held": Application allowed and the contract was declared invalid. S128(2) only applies once a transaction has been completed.
OPEN MARKET
LOCAL GOVERNMENT ACT 1972 S128(2)
LOCAL GOVERNMENT ACT 1972 S123
THIRD PARTY RIGHTS
R V HACKNEY LBC EX P STRUCTADENE LTD
BEST VALUE
FIDUCIARY DUTY
QBD 10 November 2000. The council (A) decided to sell some industrial units occupied by tenants at auction. Company (B) expressed an interest in buying these. On the day of the auction A informed B the land was to be sold to the tenants at a cost of £400,00. B put in a higher offer, but this was rejected. In court A conceded it had acted unlawfully by not taking adequate steps, set out in the Local Government Act 1972 S123, to obtain best value for the units. However, A also contended that its contract with the tenants could not be set aside, due to the rights afforded to third parties by s128(2) of the 1972 Act. "Held": Application allowed and the contract was declared invalid. S128(2) only applies once a transaction has been completed.
OPEN MARKET
LOCAL GOVERNMENT ACT 1972 S128(2)
LOCAL GOVERNMENT ACT 1972 S123
THIRD PARTY RIGHTS
R V HACKNEY LBC EX P STRUCTADENE LTD
BEST VALUE
FIDUCIARY DUTY