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Consultation Paper on the General Law of the Landlord and Tenant

Consultation Paper on the General Law of the Landlord and Tenant

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It cannot be invoked in o<strong>the</strong>r proceedings, such as an acti<strong>on</strong> <strong>of</strong>ejectment for n<strong>on</strong>-payment <strong>of</strong> rent, 51 or in o<strong>the</strong>r ejectment acti<strong>on</strong>s. 52 Itis difficult to square this with <strong>the</strong> wide wording <strong>of</strong> <strong>the</strong> secti<strong>on</strong> 53 <strong>and</strong><strong>the</strong> problem is increased by <strong>the</strong> Irish courts’ c<strong>on</strong>flicting views as towhe<strong>the</strong>r a tenant can claim a right <strong>of</strong> set-<strong>of</strong>f in such cases at comm<strong>on</strong>law. 54 This matter ought to be resolved by clearer legislati<strong>on</strong>. TheCommissi<strong>on</strong> provisi<strong>on</strong>ally recommends that <strong>the</strong> tenant’s right <strong>of</strong> set<strong>of</strong>funder secti<strong>on</strong> 48 ought to apply to all proceedings which al<strong>and</strong>lord may bring against <strong>the</strong> tenant in respect <strong>of</strong> breach <strong>of</strong>obligati<strong>on</strong>s by <strong>the</strong> tenant.8.17 A sec<strong>on</strong>d ambiguity is that secti<strong>on</strong> 48 refers to <strong>the</strong> tenant’sright <strong>of</strong> set-<strong>of</strong>f 55 in respect <strong>of</strong> “all just debts” due by <strong>the</strong> l<strong>and</strong>lord to<strong>the</strong> tenant. Notwithst<strong>and</strong>ing this very wide language it has been heldthat it does not apply to debts wholly unc<strong>on</strong>nected with <strong>the</strong> particulartenancy. 56 The Commissi<strong>on</strong>’s view is that this is an appropriaterestricti<strong>on</strong> <strong>on</strong> <strong>the</strong> right, but <strong>the</strong>re is ano<strong>the</strong>r restricti<strong>on</strong> which <strong>the</strong> Irishcourts have adhered to which is <strong>of</strong> more doubtful justificati<strong>on</strong>. It hasl<strong>on</strong>g been held that <strong>the</strong> tenant can <strong>on</strong>ly set-<strong>of</strong>f a liquidated sum, asopposed to an unliquidated sum, such as a claim for damages based515253545556“All claims <strong>and</strong> dem<strong>and</strong>s by any l<strong>and</strong>lord against his tenant in respect <strong>of</strong>rent shall be subject to deducti<strong>on</strong> or set-<strong>of</strong>f in respect <strong>of</strong> all just debtsdue by <strong>the</strong> l<strong>and</strong>lord to <strong>the</strong> tenant.”Dalt<strong>on</strong> v Barlow (1867) 1 ILT 490.See Riordan v Carroll [1996] 2 ILRM 263, 275-6 (per Kinlen J).It has been doubted whe<strong>the</strong>r <strong>the</strong> courts’ interpretati<strong>on</strong> accords with <strong>the</strong>legislative intent: see Dowling “Set-<strong>of</strong>f against Rent” (1988) 39 NI LQ 258at 266-7.Cf Whitt<strong>on</strong> v Hanl<strong>on</strong> (1885) 16 LR Ir 117 <strong>and</strong> Wils<strong>on</strong> v Burne (1889) 24LR Ir 14. The English courts seem to have taken a broader view: see BICCplc v Burnley Corporati<strong>on</strong> [1985] 1 All ER 417; Eller v GrovecrestInvestments Ltd [1994] 4 All ER 845.The secti<strong>on</strong> also refers to a right <strong>of</strong> “deducti<strong>on</strong>”, but this is probablysuperfluous <strong>and</strong> <strong>the</strong>re is no difference between <strong>the</strong> two rights. Bothinvolve a defence raised to <strong>the</strong> l<strong>and</strong>lord’s acti<strong>on</strong> <strong>and</strong> should bedistinguished from a counterclaim, which is in substance a separate acti<strong>on</strong>by <strong>the</strong> tenant: see Doyle “Set-<strong>of</strong>f <strong>and</strong> Counterclaim – Deciphering <strong>the</strong> IrishRules” (1989) 83 Gazette <strong>of</strong> Incorporated <strong>Law</strong> Society <strong>of</strong> Irel<strong>and</strong> 367;Wylie op cit paragraph 12.09.Mullarkey v D<strong>on</strong>ohoe (1885) 16 LR Ir 365.120

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