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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Derhalli v Derhalli [2019] EWHC 3286 (Ch) (18 November 2019) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2019/3286.html Cite as: [2019] EWHC 3286 (Ch) |
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BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES
CHANCERY APPEALS (ChD)
7 Rolls Buildings Fetter Lane, London EC4A 1NL |
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B e f o r e :
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KERIM RICHARD DERHALLI | Claimant/Respondent | |
- and - | ||
JAYNE RICHARDSON DERHALLI | Defendant/Appellant |
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MR N. DYER QC and MR N. DUCKWORTH (instructed by Charles Russell Speechlys LLP) appeared on behalf of the Defendant/Appellant.
Hearing date: 18 November 2019
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Crown Copyright ©
MR JUSTICE FANCOURT:
"(f) Upon its true and proper interpretation the purpose and effect of the Consent Order was and is to permit the Defendant to occupy the property until the sale thereof, alternatively so as to reasonably permit completion of any such with vacant possession therefore, but in any event not earlier.
(g) Pending such a time the Defendant was and remains subject to a duty to pay for the outgoings upon the Property, but is not otherwise obliged to make any payments to the Claimant in respect of her use and occupation."
Those were the paragraphs in the defence and the preliminary issue was whether or not those assertions were justified as a matter of the interpretation of the consent order.
"Upon its true construction the meaning and effect of the Consent Order is that on and from the date thereof the Defendant occupied St Mary's Place as a gratuitous licensee terminable on reasonable notice where-after she would be a trespasser liable to pay damages for use and occupation thereof until delivering vacant possession thereof, the court thereby rejecting the Defendant's construction thereof as pleaded in paragraphs 4(f) and (g) of said Defence."
The order of 3 May 2019 then recorded that there was no issue as to the reasonableness of the duration of the notice to vacate and, on that basis, ordered assessment of damages for use and occupation for the period from 21 April 2017 to 26 March 2019, to be listed for determination by a District Judge in due course. Judge Gerald gave further directions in relation to that anticipated hearing.
"a. On its true and proper construction the purpose and effect of the Consent Order was to permit the Defendant to occupy [the home] until the sale thereof.
b. Accordingly, the answer to [issue (f) of the preliminary issues] is 'yes'.
c. The answer to [issue (g) of the preliminary issues] is 'yes'."
"12. The parties agree that the terms set out in this order (including the recitals, agreements, undertaking and the orders of the court) are accepted in full and final satisfaction of –
a. all claims for income;
b. all claims for capital, that is payments of lump sums, transfers of property and variations of settlements;
c. all claims in respect of each other's pensions;
d. all claims in respect of the contents of their properties and personal belongings including but not limited to furniture, artwork, jewellery and motor vehicles with the precise allocation of those chattels to be agreed or determined in accordance with paragraph 13 below;
e. all claims in respect of legal costs including those of the divorce/dissolution proceedings;
f. all claims against each other's estate on death; and
g. all other claims of any nature which one may have against the other as a result of their relationship, howsoever arising, either in England and Wales or in any other jurisdiction.
13. The parties agree that the chattels in Stonelands, St Mary's Place, St Raphael's Lodge, and 5B Cliveden Place (or the replacement rental property) which belong to the applicant or the respondent, shall be divided on the following basis:
…
g. And further, it is agreed that on the occasion of the valuer attending:
(1) Stonelands – the applicant or her solicitor (not both) may be in attendance;
(2) St Raphael's Lodge and St Mary's Place – the respondent or his solicitor (not both) may be in attendance.
14. The parties agree that they will each retain the assets in their respective sole names and that neither of them has any legal or equitable interest in the property or assets currently in the sole name or possession of the other, and neither of them has any liability for the debts of the other, except as provided for in this order. In particular, it is agreed that the respondent shall retain Stonelands.
20. The parties agree that with effect from 7 June 2016 the Respondent will be responsible for paying the outgoings on Stonelands.
21. The parties agree that with effect from 7 June 2016 the applicant will discharge the outgoings on St Mary's Place and St Raphael's Lodge. To the extent that the respondent makes any such payments on the applicant's behalf after 7 June and before the transfer of the standing orders and direct debits in relation to St Mary's Place and St Raphael's Lodge (which the respondent will arrange to be transferred to the applicant's sole bank account as soon as practicable) then such payments will be netted off against the lump sum payable in accordance with paragraph 36(b) below.
23. The parties agree that (save as provided in paragraph 13g(2) above) the respondent shall provide the applicant with at least 24 hours' advance notice of an intention to attend St Mary's Place and will endeavour to accommodate the applicant by going there at a convenient time for her.
24. The parties agree that the respondent shall have exclusive occupation of Stonelands and the applicant shall not return there save as provided in paragraph 13g(1) above and on one occasion, on a date to be agreed, to collect her chattels in accordance with paragraph 13 above.
25. In addition to paragraph 13g(2) above the parties agree that the respondent shall have access to St Raphael's Lodge on two occasions on dates to be agreed between the parties:
a. to inspect the parties' possessions and chattels which are situated there; and
b. to remove such of those possessions and chattels as it is agreed he shall retain.
26. The parties agree that the transactions and lump sums payable in accordance with paragraphs 36, 42 and 43 will not be adjusted for any reason including, but not limited to, any reduction or increase in asset values, exchange rate fluctuation, or further investment by the respondent in Marketspringpad Holdings or Invstr Ltd (save, for the avoidance of doubt, in relation to any netting off pursuant to paragraphs 17 or 21).
38. The applicant undertakes to the court and agrees with the respondent to remove the notices registered in her favour against:
a. St Mary's Place forthwith upon the respondent's reasonable request so as to effect a sale or within 7 days of the date of the payment to her of the lump sum referred to at paragraph 42(a) below; and
b. Stonelands within 7 days of the date of the payment to her of the lump sum referred to at paragraph 42(a) below.
41. St Mary's Place shall be sold forthwith on the open market at the best price reasonably obtainable and the following directions shall apply:
a. The parties shall have joint conduct of the sale.
b. The selling agent shall be jointly agreed between the parties.
c. On sale, the gross sale proceeds shall be applied to meet the following:
i. The selling agent's commission;
ii. The legal fees; and
iii. Any capital gains tax.
With the remaining balance being the net proceeds of sale which shall be paid to the respondent, to be held in accordance with the provisions detailed at paragraph 40 above.
42. The respondent shall pay to the applicant a series of lump sums (that, by agreement, are not variable under section 31 of the Matrimonial Causes Act 1973) as follows:
a. £5,829,300 on the date 14 days after the date of decree absolute or six weeks after the date of this order, whichever is the later, such payment to be made offshore to the applicant's nominated bank account.
b. £2,257,732 on the date 14 days after the completion of the sale of St Mary's Place in accordance with paragraph 41 above. Such payment to be made onshore or offshore as the respondent elects (subject to paragraph 29).
c. A sum equal to one half of the net sale proceeds of St Mary's Place (as defined at paragraph 41(c) above) on the date 14 days after the completion of the sale of St Mary's Place in accordance with paragraph 41 above. Such payment to be made onshore or offshore as the respondent elected (subject to paragraph 29)."
"It is the claimant's case that he was entitled to serve those notices requiring possession because the effect of the financial order was that he was the absolute beneficial owner of St Mary's Place [the home], the defendant occupying as gratuitous licensee determinable on reasonable notice so that at any time after the making of the financial order he was entitled to determine that licence save that, unless and until the decree absolute had been made, he would not be able to obtain possession by reason of the defendant's home rights under the relevant Family Law statutes."
At para.17, he summarised the appellant's case as follows:
"The defendant's case is that although there is no express provision within the financial order, as a matter of its proper construction she was entitled to remain in occupation of the property rent free until the sale and that her, as it were, right of occupation was not determinable so that she could not be removed."
"The effect of the financial order is that from its date onwards the defendant occupied St Mary's Place as a gratuitous licensee which licence was terminable on reasonable notice such that on expiry of that notice she would be constituted a trespasser and liable to pay for use and occupation of the property until she vacated it."
"By the defendant accepting and acknowledging that the claimant was the absolute beneficial owner of St Mary's Place, the legal consequence of that was that he had an unfettered right to occupation of it unless there was some contractual or other provision altering that otherwise unfettered right. In point of fact, at the time of the making of the financial order, the defendant was in consensual occupation of the property from which it follows as a matter of law that she was a gratuitous licensee which was determinable on reasonable notice. There is nothing in the financial order which expressly or impliedly purports to cut down the claimant's right of occupation or determination of the gratuitous licence."
That conclusion he reinforced by reference to para.38 of the consent order, which required the appellant to remove her home rights notices registered against the title to the property.
"The use of the phrase 'exclusive occupation' in relation to the property at St Mary's Place is not correct. It was never agreed. My client's wording accurately summarises the agreement reached and recorded at clause 21 of the Heads of Agreement."
Transcribed by Opus 2 International Limited Official Court Reporters and Audio Transcribers 5 New Street Square, London, EC4A 3BF Tel: 020 7831 5627 Fax: 020 7831 7737 [email protected] |