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Limitation of Actions Consultation - Law Commission

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limitation period is either sixty years from the date <strong>of</strong> accrual <strong>of</strong> the action, or<br />

thirty years from the date when the land ceased to be foreshore, whichever first<br />

expires.<br />

6.43 If section 17 <strong>of</strong> the 1980 Act is read literally, successful adverse possession <strong>of</strong><br />

unregistered land against the Crown extinguishes the whole <strong>of</strong> the Crown’s title so<br />

that the squatter would acquire a title to land which is allodial. 114<br />

Similarly, if this<br />

interpretation is correct, then, as regards registered land owned by the Crown, 115<br />

section 75(1) <strong>of</strong> the Land Registration Act 1925 might be construed so that the<br />

statutory trust in favour <strong>of</strong> the squatter was a trust <strong>of</strong> the whole <strong>of</strong> the Crown’s<br />

interest. But it is a fundamental principle <strong>of</strong> English land law that all land in<br />

England and Wales is held in fee from the Crown, 116<br />

and it seems certain that the<br />

1980 Act did not intend this principle to be disturbed, so that the effect <strong>of</strong> the<br />

expiry <strong>of</strong> the limitation period must be to extinguish the Crown’s title in so far as it<br />

is inconsistent with the creation <strong>of</strong> a fee simple in the squatter, but not otherwise.<br />

6.44 Where the right <strong>of</strong> action accrued to the Crown, or to the relevant corporation but<br />

the action is brought by a person claiming through it, the limitation period will<br />

expire either after the period during which the action could have been brought by<br />

the Crown or corporation, or twelve years after the action accrued to a person<br />

other than the Crown or corporation, whichever first expires.<br />

2. ACTIONS TO RECOVER RENT<br />

6.45 By section 19 <strong>of</strong> the 1980 Act, no action may be brought (or distress made) to<br />

recover arrears <strong>of</strong> rent, or damages in respect <strong>of</strong> arrears <strong>of</strong> rent, more than six<br />

years from the date on which the arrears became due. There is no extended<br />

limitation period if the lease is under seal and (as is invariably the case) contains a<br />

covenant to pay rent. 117<br />

If rent is already in arrears, a new cause <strong>of</strong> action will arise<br />

each time a new instalment <strong>of</strong> rent becomes due. 118<br />

So, for example, if in 1987 T<br />

stops paying rent to L, and L issues proceedings for the arrears in 1997, L will be<br />

able to recover rents due from 1991 to 1997: the other instalments will be statute<br />

barred. Where a landlord is seeking to recover arrears <strong>of</strong> rent from a guarantor<br />

who has given a guarantee in respect <strong>of</strong> the tenant’s performance <strong>of</strong> its covenants,<br />

the moneys sought will be classed as damages in respect <strong>of</strong> arrears <strong>of</strong> rent, and<br />

there will be a limitation period under section 19 <strong>of</strong> six years from the demand<br />

being made <strong>of</strong> the guarantor. 119<br />

114 That is, held independently <strong>of</strong> any ultimate lordship.<br />

115 Although land (eg foreshore) which has always been owned by the Crown, as opposed to<br />

passing into Crown ownership by transfer or escheat, is incapable <strong>of</strong> registration, because it<br />

is not, and has never been, “land <strong>of</strong> any tenure” within the Land Registration Act 1925, s<br />

3(viii). See Scmlla Properties Ltd v Gesso Properties (BVI) Ltd [1995] BCC 793, 798, per<br />

Stanley Burnton QC (sitting as a deputy judge <strong>of</strong> the Chancery Division).<br />

116 See, eg, R E Megarry and H W R Wade, The <strong>Law</strong> <strong>of</strong> Real Property (5th ed 1984), p 12; F<br />

Pollock and F W Maitland, The History <strong>of</strong> English <strong>Law</strong> (2nd ed 1968), vol 1, pp 232 - 237.<br />

117 See s 8(2).<br />

118 Archbold v Scully (1861) 9 HLC 360, 11 ER 769.<br />

119 Romain v Scuba TV Ltd [1996] 3 WLR 117. But under the Landlord and Tenant<br />

(Covenants) Act 1995, s 17(3) there is a time limit <strong>of</strong> six months within which the landlord<br />

107

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