The department complained that the defendants had entered into a transaction with their farm at an undervalue so as to defeat its claim for recovery of sums due. The transaction used the grant of a tenancy by the first chargee.
Held: The farmers’ appeal as to the farm transaction failed: ‘beyond argument that DEFRA was a ‘victim’ of the ‘transaction’ in the instant case. The fact that the sale by NatWest, looked at in isolation, caused no loss is not to the point. The point is that the ‘transaction’ was not the sale by NatWest, but the arrangement between KF and Miss Hawkins to use that sale as a necessary step in the process of transferring the intended benefit to Miss Hawkins. ‘ The transaction was to be set aside. As to the counterclaim in which damages were sought for trespass in the steps taken to dispose of carcasses of animal slaughtered for foot and mouth. There was no express statutory power to take the steps undertaken, in particular to bury the carcasses. The result was a permanent interference with the land: ‘authority to interfere permanently with private property rights is to be limited to the circumstances identified in section 34(4) and not to be extended to the more general power of disposal conferred by section 34(2). ‘ The European Groundwater Directive could not be used to justify such action, since there was no sufficient breach of the Directive. The Departments appeal on the counterclaims failed.
Judges:
Lord Justice Waller Lord Justice Jonathan Parker Mr Justice Moses
Citations:
[2005] EWCA Civ 1513, Times 22-Dec-2005
Links:
Statutes:
Insolvency Act 1986 423, Animal Health Act 1981, Diseases of Animals (Seizure Order) 1993 (1993 No 1685, Foot-and-Mouth Disease Order 1983
Jurisdiction:
England and Wales
Citing:
Appeal from – Department for Environment, Food and Rural Affairs v Feakins and Another ChD 26-Nov-2004
The farmer complained that the department had, during the foot and mouth outbreak destroyed animals which did not belong to the owner of the land. The department said that the farmer had disposed of his land at an undervalue to defeat his creditors. . .
Cited – Re Brabon 2001
The debtor had contracted to sell his land to a third party developer, Silver. Between contract and completion, the debtor was made bankrupt. His wife, who already held legal charges over part of the land, took a transfer of a charge over the . .
Cited – National Westminster Bank plc v Jones and Others CA 24-Oct-2001
The respondent farmers charged the farm by way of an agricultural floating charge to the claimants. On coming into difficulties, they set up a limited company and granted a tenancy in its favour and transferred assets to it. The bank obtained . .
Cited – In re M C Bacon Ltd ChD 1990
A liquidator claimed that the costs of an unsuccessful attempt to set a floating charge aside should be paid out of the assets subject to the charge in priority to the claims of the charge holder.
Held: The rule was a complete statement of the . .
Cited – Phillips (Liquidator of A J Bekhor and Co) and Another v Brewin Dolphin Bell Lawrie Limited and Another CA 17-Mar-1999
When considering whether a breach went to the root of a contract, an associated contract could be split off, even though it would not be split off for insolvency purposes when asking whether a transaction was at an undervalue. . .
Cited – Agricultural Mortgage Corporation Plc v Woodward and Another CA 30-May-1994
A tenancy granted by an insolvent farmer to his wife was set aside because of additional benefits which were granted. The tenancy was held to have been granted at an undervalue, even though the court was unable precisely to measure the value of the . .
Cited – Chohan v Saggar and Another CA 27-Dec-1993
The word ‘and’ in sections 423(2)(a) and 423(2)(b) is to be read conjunctively not disjunctively. Section 238(3) is to be interpreted as requiring restoration of the former position ‘as far as possible’ or ‘as far as practicable’, and that . .
Cited – Phillips (Liquidator of A J Bekhor and Co ) and Another v Brewin Dolphin Bell Lawrie HL 18-Jan-2001
The company sold its business to the respondent for one pound, but the respondent agreed to sublease computer equipment for an amount equivalent to the value of the company. The company defaulted, and the computer equipment was recovered. The . .
Cited – Regina v Richmond Upon Thames London Borough Council, ex parte McCarthy and Stone (Developments) Ltd HL 14-Nov-1991
A Local Authority was not able to impose charge for inquiries as to speculative developments and similar proposals, or for consultations, and pre-planning advice. There was no statutory authority for such a charge, and it was therefore unlawful and . .
Cited – Dixon and Another, Regina (on the application of ) v Secretary of State for the Environment, Food and Rural Affairs QBD 10-Apr-2002
The applicants were farmers. Their cattle were destroyed after contracting foot and mouth disease. Their land was used for the burning of the carcasses of their animals, and of animals from neighbouring farms. They were compensated inter alia for . .
Cited – Colonial Sugar Refining Co Ltd v Melbourne Harbour Trust Commissioners PC 18-Jan-1927
An Act removing the right of appeal to the Privy Council was held not to affect an appeal in litigation pending when the Act was passed and decided after its passing, on the ground that (Lord Warrington) ‘[t]o deprive a suitor in pending litigation . .
Cited – Minister of Housing and Local Government v Hartnell HL 1965
The law ordinarily entitles a person whose land is taken for a highway to compensation unless the statutory intention to resume without compensation is expressed in clear and unambiguous terms. Lord Wilberforce described a use treated as established . .
Cited – Allen v Gulf Oil Refining Ltd HL 29-Jan-1980
An express statutory authority to construct an oil refinery carried with it the authority to refine. It was impossible to construct and operate the refinery upon the site without creating a nuisance. Lord Wilberforce said: ‘It is now well settled . .
Cited – Franz Grad v Finanzamt Traunstein. (Measures Adopted By An Institution ) ECJ 6-Oct-1970
Europa It would be incompatible with the binding effect attributed to decisions by article 189 to exclude in principle the possibility that persons affected may invoke the obligation imposed by a decision. . .
Cited – Brasserie du Pecheur v Bundesrepublik Deutschland; Regina v Secretary of State for Transport, ex parte Factortame and others (4) ECJ 5-Mar-1996
Member states may be liable to individuals for their failure to implement EU laws. The right of individuals to rely on directly applicable provisions of the EC Treaty before national courts is not sufficient in itself to ensure full and complete . .
Cited – Webb v EMO Air Cargo (UK) Ltd (No 1) HL 3-Mar-1993
Questions on pregnancy dismissals included unavailability at required time. The correct comparison under the Act of 1975 was between the pregnant woman and: ‘a hypothetical man who would also be unavailable at the critical time. The relevant . .
Cited – Marleasing SA v La Comercial Internacional de Alimentacion SA ECJ 13-Nov-1990
Sympathetic construction of national legislation
LMA OVIEDO sought a declaration that the contracts setting up Commercial International were void (a nullity) since they had been drawn up in order to defraud creditors. Commercial International relied on an EC . .
Cited – Burton v British Railways Board ECJ 16-Feb-1982
Europa The principle of equal treatment contained in article 5 of council directive 76/207 applies to the conditions of access to voluntary redundancy benefit paid by an employer to a worker wishing to leave his . .
Cited – Shelfer v City of London Electric Lighting Company, Meux’s Brewery Co v Same CA 1895
The plaintiff sought damages and an injunction for nuisance by noise and vibration which was causing structural injury to a public house.
Held: The court set out the rules for when a court should not grant an injunction for an infringement of . .
Cited – Jaggard v Sawyer and Another CA 18-Jul-1994
Recovery of damages after Refusal of Injunction
The plaintiff appealed against the award of damages instead of an injunction aftter the County court had found the defendant to have trespassed on his land by a new building making use of a private right of way.
Held: The appeal failed.
Cited – Wrotham Park Estate Ltd v Parkside Homes Ltd ChD 1974
55 houses had been built by the defendant, knowingly in breach of a restrictive covenant, imposed for the benefit of an estate, and in the face of objections by the claimant.
Held: The restrictive covenant not to develop other than in . .
Cited – Surrey County Council v Bredero Homes Ltd CA 7-Apr-1993
A local authority had sold surplus land to a developer and obtained a covenant that the developer would develop the land in accordance with an existing planning permission. The sole purpose of the local authority in imposing the covenant was to . .
Criticised – Anchor Brewhouse Developments -v Berkley House (Docklands) Developments 1987
A crane which passes its boom over private land without permission creates an actionable nuisance. Damages could not be awarded so as to remove the plaintiff’s right to bring actions for trespass in the future if the trespass continued: ‘I find some . .
Cited – Harrow London Borough Council v Donohue CA 1995
The plaintiff complained at the defendant’s garage, half of which had been built on the plaintiff’s land. The judge had awarded damages in lieu of a mandatory injunction for its removal. The Council appealed.
Held: Where a landowner had been . .
See Also – Feakins and Another v Department for Environment Food and Rural Affairs (Civ 1658) CA 9-Dec-2005
. .
See Also – Regina on the Application of Feakins v Secretary of State for Environment, Food and Rural Affairs CA 4-Nov-2003
The applicant farmer had substantial volumes of potentially contaminated carcasses on his land. The respondent derogated from the European regulations which would have arranged for the disposal of the carcasses. The respondent challenged the . .
Cited by:
See Also – Feakins and Another v Department for Environment Food and Rural Affairs (Civ 1658) CA 9-Dec-2005
. .
Lists of cited by and citing cases may be incomplete.
Insolvency, Agriculture
Updated: 07 September 2022; Ref: scu.235918