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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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<strong>on</strong> <strong>the</strong> l<strong>and</strong>lord’s breach <strong>of</strong> repairing obligati<strong>on</strong>s. 57 The reas<strong>on</strong>ingseems to have been based <strong>on</strong> Rules <strong>of</strong> Court requiring a defendant tolodge m<strong>on</strong>ey in court at <strong>the</strong> time <strong>of</strong> entering <strong>the</strong> defence. 58 Yet, as hasvery recently been pointed out in Engl<strong>and</strong>, this restricti<strong>on</strong> may causec<strong>on</strong>siderable hardship. If <strong>the</strong> tenant is sufficiently well <strong>of</strong>f to be ableto afford to carry out <strong>the</strong> repairs which <strong>the</strong> l<strong>and</strong>lord should carry out,<strong>the</strong> costs <strong>and</strong> expenses incurred can be produced as a liquidatedamount up<strong>on</strong> which to a base a set-<strong>of</strong>f. 59 A tenant who cannot affordto do so, is apparently left to suffer <strong>and</strong> cannot raise a claim indamages as a set-<strong>of</strong>f. The English Court <strong>of</strong> Appeal decided that thisdistincti<strong>on</strong> should be abolished <strong>and</strong> that an unliquidated sum, such asa claim in damages, should equally be <strong>the</strong> subject <strong>of</strong> a set-<strong>of</strong>f. 60 TheCommissi<strong>on</strong> takes <strong>the</strong> same view. The Commissi<strong>on</strong> provisi<strong>on</strong>allyrecommends that <strong>the</strong> tenant’s right <strong>of</strong> set-<strong>of</strong>f should apply to bothliquidated <strong>and</strong> unliquidated damages. A tenant who wishes to avail <strong>of</strong>set-<strong>of</strong>f should be obliged to substantiate <strong>the</strong> claim in <strong>the</strong> l<strong>and</strong>lord’sproceedings in order to avoid unnecessary delays.G Distress8.18 The ancient feudal remedy <strong>of</strong> distress, ie <strong>the</strong> l<strong>and</strong>lord’s rightto distrain <strong>the</strong> tenant’s goods, for arrears <strong>of</strong> rent was abolished inrespect <strong>of</strong> any premises let solely as a dwelling by secti<strong>on</strong> 19 <strong>of</strong> <strong>the</strong>Housing (Miscellaneous Provisi<strong>on</strong>s) Act 1992. 61 It remains available5758596061MacCausl<strong>and</strong> <strong>and</strong> Kimmitt v Carroll <strong>and</strong> Dooling (1938) 72 ILTR 158.See also Butcher v Ruth (1887) 22 LR Ir 380; Martin v Brady (1934) 68ILTR 136.Per Maguire P in <strong>the</strong> MacCausl<strong>and</strong> case op cit at 149, cited, with approval,by Kinlen J in Riordan v Carroll [1996] 2 ILRM 263, 275. Maguire P wasreferring to Order 7 rule 6 <strong>of</strong> <strong>the</strong> Circuit Court Rules 1930; later replacedby Order 12 rule 7 <strong>of</strong> <strong>the</strong> Circuit Court Rules 1950. Order 15 rule 7 <strong>of</strong> <strong>the</strong>Circuit Court Rules 2001 now refers to a defendant setting-<strong>of</strong>f orcounterclaiming against claims “whe<strong>the</strong>r such set-<strong>of</strong>f or counterclaim is aclaim in damages or not”.Note that secti<strong>on</strong> 87 <strong>of</strong> <strong>the</strong> <strong>L<strong>and</strong>lord</strong> <strong>and</strong> <strong>Tenant</strong> (Amendment) Act 1980gives express recogniti<strong>on</strong> <strong>of</strong> a set-<strong>of</strong>f in respect <strong>of</strong> repairs carried out by atenant <strong>on</strong> failure by <strong>the</strong> l<strong>and</strong>lord. See <str<strong>on</strong>g>C<strong>on</strong>sultati<strong>on</strong></str<strong>on</strong>g> <str<strong>on</strong>g>Paper</str<strong>on</strong>g> <strong>on</strong> BusinessTenancies (LRC CP21–2003) paragraph 4.55. Note also secti<strong>on</strong> 61 <strong>of</strong> <strong>the</strong>1980 Act (set-<strong>of</strong>f <strong>of</strong> compensati<strong>on</strong> against rent).Muscat v Smith [2003] 40 EG 148.See Wylie op cit paragraph 12.14.121

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