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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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management <strong>of</strong> <strong>the</strong> said Railway arch (which is an integralpart <strong>of</strong> <strong>the</strong> stati<strong>on</strong> <strong>and</strong> <strong>the</strong> railway undertaking <strong>and</strong>necessarily <strong>and</strong> essentially required in c<strong>on</strong>necti<strong>on</strong> with <strong>the</strong>operati<strong>on</strong> <strong>the</strong>re<strong>of</strong>) should use <strong>the</strong> airspace <strong>of</strong> <strong>the</strong> saidRailway arch to good purpose <strong>and</strong> not allow same to remainidle without pr<strong>of</strong>it or return.”An illustrati<strong>on</strong> <strong>of</strong> <strong>the</strong> uncertainty which has now been introduced into<strong>the</strong> law is <strong>the</strong> c<strong>on</strong>trasting approach <strong>of</strong> <strong>the</strong> courts in <strong>the</strong> two cases.1.29 In <strong>the</strong> Kenny Homes case Costello P took <strong>the</strong> view that <strong>the</strong>provisi<strong>on</strong>s <strong>of</strong> <strong>the</strong> agreements “could not have been in clearer terms”as indicating an intenti<strong>on</strong> <strong>on</strong> <strong>the</strong> part <strong>of</strong> <strong>the</strong> parties not to create atenancy <strong>and</strong>, notwithst<strong>and</strong>ing <strong>the</strong> l<strong>on</strong>g period <strong>of</strong> occupati<strong>on</strong> <strong>of</strong> <strong>the</strong>premises, ruled that <strong>the</strong> occupiers did not have <strong>on</strong>e. His decisi<strong>on</strong> wasupheld by <strong>the</strong> Supreme Court, in which Lynch J, giving <strong>the</strong> judgment<strong>of</strong> <strong>the</strong> Court, described <strong>the</strong> agreements as “crystal” clear. On <strong>the</strong>o<strong>the</strong>r h<strong>and</strong>, in <strong>the</strong> Smith case Peart J 124 ruled that a tenancy had beencreated, notwithst<strong>and</strong>ing his c<strong>on</strong>cluding remarks after a review <strong>of</strong> <strong>the</strong>evidence:-“I have set out <strong>the</strong> evidence in some detail from my notesfor <strong>the</strong> purpose <strong>of</strong> dem<strong>on</strong>strating that <strong>the</strong>re is no disputewhatsoever <strong>on</strong> <strong>the</strong> facts that <strong>the</strong> agreement entered intobetween <strong>the</strong> parties was known to be, <strong>and</strong> accepted by <strong>the</strong>applicant to be, a licence agreement <strong>and</strong> that it was notintended that any tenancy rights should arise. It is clearfrom <strong>the</strong> evidence <strong>and</strong> from <strong>the</strong> documents produced inevidence that this is <strong>the</strong> case. In fact <strong>the</strong>re is no dispute <strong>on</strong><strong>the</strong> facts. What has to be decided is, in <strong>the</strong> main, a legalissue.”Peart J also recorded that <strong>the</strong> occupier <strong>of</strong> <strong>the</strong> shop was an experiencedbusiness man who had engaged his own solicitors firm to negotiate<strong>the</strong> terms <strong>of</strong> <strong>the</strong> agreement <strong>on</strong> his behalf. He made it clear in hisevidence that he had always understood that all he was getting was alicence. Indeed, when later during <strong>the</strong> course <strong>of</strong> his occupati<strong>on</strong> he124A curious feature <strong>of</strong> Peart J’s judgment is that, although reference is madeto earlier Irish cases <strong>and</strong> English cases like Street v Mountford, no menti<strong>on</strong>is made <strong>of</strong> <strong>the</strong> Kenny Homes case (notwithst<strong>and</strong>ing its status as a decisi<strong>on</strong><strong>of</strong> <strong>the</strong> Supreme Court).28

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