Outer House case considering an agricultural lease of Rockside Farm at Bruichladdich on Islay. The tenants were Rockside Farming Company (of which Mr and Mrs French were directors). The farm had been owned by one owner but, following the grant of the lease, part of the farm (776.5ha) was sold to Crewpace. The remaining part (14.5ha) was sold to Mr and Mrs French with the result that both Crewpace and Mr and Mrs French became landlords under a single lease.
Mr and Mrs French let part of the land to which they had title to a distillery and sold two further parts. Crewpace argued that Mr and Mrs French should have sought their consent before doing so. They therefore sought declarator that the Frenchs had unlawfully interfered with their interest as “joint landlords”, payment of recompense (for unjustified enrichment) and an interdict preventing Mr and Mrs French from resuming or selling any further parts of the leased subjects without their consent.
Essentially Crewpace’s argument was that their interest in the lease was “common property” and held by them and Mr and Mrs French as “joint landlords”. As such Crewpace claimed to have an interest in the whole subjects similar to that of a pro indiviso owner with regard to management, control and disposal of the land.
Temporary Judge Morag Wise QC preferred Mr and Mrs French’s arguments to the effect that there is no landlord’s interest separate from the right of ownership finding that a landlord’s right is inextricably linked with its title and dismissed the action.
The full judgement is available from Scottish Courts here.
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