Less well known is the confusion that has long surrounded the calculation of the number of successions that remain available to a tenant’s family. This is largely due to the decision of the Court in Sanders v Ralph (1993) 2 EGLR 1. In that case the judge suggested that ‘succession events’ that had occurred before the introduction of the 1976 Act might be taken into account when calculating the number of successions remaining.
This approach meant that in the case of a family who had occupied a holding for a number of generations before enactment of the 1976 Act, the Landlord might even be able to argue that no successions remained; even though no post-1976 ‘succession events’ had arisen. It is a decision that has been much criticised by legal commentators; not least because no real guidance was given by the Court about when pre-1976 ‘succession events’ should or should not serve to reduce the number of successions remaining available.
This issue has now been resolved by the High Court in the recent case of Kemp v Fisher (2009) EWHC 3657. The High Court concluded that the 1976 Act could not have been intended to have the retrospective effect suggested in Sanders and Ralph. Consequently, only ‘succession events’ occurring on or after 14 November 1976 will now be taken into account in calculating the available number of successions.
This might at first glance be considered to be a victory for the Agricultural Holdings Act tenant. However, the certainty that this decision now provides should be of benefit to tenants and landlords alike, by removing the additional and not inconsiderable cost of arguing a technical point, with uncertain consequences.
Please contact
Paul Rice for more information about Agricultural Holdings Act or Farm Business Tenancies or other forms of occupational agreement.
