13.07.2015 Views

Consultation Paper on the General Law of the Landlord and Tenant

Consultation Paper on the General Law of the Landlord and Tenant

Consultation Paper on the General Law of the Landlord and Tenant

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

<strong>the</strong> premises occupied by <strong>the</strong> sub-tenant, should be repealed withoutreplacement.3.25 Linked with secti<strong>on</strong> 19 is secti<strong>on</strong> 20, which is also asomewhat odd provisi<strong>on</strong>. In essence it entitles <strong>the</strong> head-l<strong>and</strong>lord,where <strong>the</strong> head-tenant defaults in paying <strong>the</strong> head-rent, to require <strong>the</strong>sub-tenant to pay directly to <strong>the</strong> head-l<strong>and</strong>lord so much <strong>of</strong> <strong>the</strong> subrentas will discharge <strong>the</strong> arrears <strong>of</strong> head-rent. The receipt <strong>of</strong> <strong>the</strong>head-l<strong>and</strong>lord is a full discharge for <strong>the</strong> sub-tenant <strong>and</strong> <strong>the</strong> headl<strong>and</strong>lordhas all <strong>the</strong> usual remedies to enforce payment <strong>of</strong> <strong>the</strong> sub-rentdirectly. It may be questi<strong>on</strong>ed whe<strong>the</strong>r it is again appropriate that <strong>the</strong>head-l<strong>and</strong>lord can <strong>the</strong>reby unilaterally impose privity <strong>of</strong> c<strong>on</strong>tract <strong>on</strong><strong>the</strong> sub-tenant, when normally not even privity <strong>of</strong> estate existsbetween <strong>the</strong> head-l<strong>and</strong>lord <strong>and</strong> sub-tenant. 85 It is arguable that <strong>the</strong>head-l<strong>and</strong>lord should be required to pursue remedies against <strong>the</strong> headtenant<strong>and</strong> <strong>the</strong> positi<strong>on</strong> <strong>of</strong> <strong>the</strong> sub-tenant should be left to be dealtwith as a c<strong>on</strong>sequential matter, eg, by way <strong>of</strong> relief againstforfeiture. 86 It is also not clear from <strong>the</strong> secti<strong>on</strong> what <strong>the</strong>c<strong>on</strong>sequences <strong>of</strong> its applicati<strong>on</strong> are <strong>on</strong> <strong>the</strong> positi<strong>on</strong> <strong>of</strong> <strong>the</strong> head-tenant<strong>and</strong> <strong>on</strong> <strong>the</strong> relati<strong>on</strong>ship between <strong>the</strong> head-tenant <strong>and</strong> sub-tenant. Itwould appear that <strong>the</strong> head-tenant has no say in <strong>the</strong> secti<strong>on</strong>’sapplicati<strong>on</strong> by <strong>the</strong> head-l<strong>and</strong>lord. It would also appear that <strong>the</strong> subtenantis entitled to deduct any payments made to <strong>the</strong> head-l<strong>and</strong>lordfrom payments <strong>of</strong> sub-rent to <strong>the</strong> head-tenant. There is a suggesti<strong>on</strong>,however, that, a sub-tenant who fails to make such deducti<strong>on</strong>s, cannotrecover <strong>the</strong>m unless <strong>the</strong> head-tenant “adopts” <strong>the</strong> payments to <strong>the</strong>head-l<strong>and</strong>lord. 87 It is also not clear what time limit, if any, applies to<strong>the</strong> arrangement c<strong>on</strong>templated by secti<strong>on</strong> 20, o<strong>the</strong>r than, presumably,when <strong>the</strong> arrears <strong>of</strong> head-rent specified in <strong>the</strong> l<strong>and</strong>lord’s notice havebeen finally paid <strong>of</strong>f. Nor is it clear whe<strong>the</strong>r <strong>the</strong> head-tenant cansecure a stop <strong>on</strong> <strong>the</strong> arrangement by giving an undertaking to pay <strong>of</strong>f<strong>the</strong> arrears <strong>of</strong> head rent. Given <strong>the</strong> various uncertainties which existin respect <strong>of</strong> this provisi<strong>on</strong>, <strong>and</strong> its arguable inappropriatenessmenti<strong>on</strong>ed earlier, <strong>the</strong> Commissi<strong>on</strong> doubts whe<strong>the</strong>r it should beretained. The Commissi<strong>on</strong> provisi<strong>on</strong>ally recommends that secti<strong>on</strong> 20<strong>of</strong> Deasy’s Act, which entitles <strong>the</strong> head-l<strong>and</strong>lord, where <strong>the</strong> headtenantdefaults in paying <strong>the</strong> head-rent, to require <strong>the</strong> sub-tenant to858687See paragraph 3.22 above.See paragraph 3.24 above.See Ahearne v McSwiney (1874) IR 8 CL 570.70

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!