The tenant overpaid rent, including a payment in May 1997 on advice that the payment would be recoverable following litigation establishing that it was an overpayment. The court later held that the payments in question were indeed overpayments. The plaintiff then sought repayment of the sums overpaid (including the payment made in May 1997), on the basis that they were made under a mistake of fact, and were therefore recoverable; alternatively, that even if they were made under a mistake of law, it would be right to order repayment.
Held: All the overpayments were recoverable, including the payment made in May 1997, as having been made under a mistake of fact. Where a right to rectify a lease existed, and the tenant assigned the lease, the assignee took as a purchaser for value, and was not bound on that ground, but the right to rectify was also an overriding interest to which he was subject. Rectification is better described as an equitable rather than a discretionary remedy, and is subject therefore to the defences in equity.
Judges:
Neuberger J
Citations:
Times 14-Sep-1998, [1999] 1 EGLR 119, [1999] 1 WLR 1249
Statutes:
Land Registration Act 1925 70(1)(g), Limitation Act 1980 32(1)(c)
Jurisdiction:
England and Wales
Citing:
See Also – Nurdin and Peacock Plc v D B Ramsden and Co Ltd ChD 18-Feb-1999
A mistake of law was sufficient to ground an order for the repayment of money paid under that mistake. It was not necessary for there to be a mistaken belief of a liability to do so, provided the mistake was the cause of the overpayment. . .
Cited by:
See also – Nurdin and Peacock Plc v D B Ramsden and Co Ltd ChD 18-Feb-1999
A mistake of law was sufficient to ground an order for the repayment of money paid under that mistake. It was not necessary for there to be a mistaken belief of a liability to do so, provided the mistake was the cause of the overpayment. . .
Cited – Taylor v Rive Droite Music Ltd ChD 6-Jul-2004
The claimant music producer and songwriter had entered into a publishers agreement with the defendant, agreeing to work for it. He now sought to be free to work for another company. The factual background was unclear, and the contract documentation . .
Cited – Inland Revenue and Another v Deutsche Morgan Grenfell Group Plc CA 4-Feb-2005
The company sought repayment of excess advance corporation tax payments made under a mistake of law. The question was the extent of the effect of the ruling in Klienwort Benson, in particular whether it covered sums paid as taxation, and how the law . .
Lists of cited by and citing cases may be incomplete.
Registered Land, Equity
Updated: 08 April 2022; Ref: scu.79753