London county council v allen 1914 3 kb 642 city

London County Council v Allen [1914] 3 KB 642 City Permanent Building Society v Miller 1952] Ch 840
Chhokar v Chhokar [1984] FLR 313 Smith and Snipes Hall Farm Ltd [1949] 2 KB 500
Rhone v Stephens [1994] 2 AC 310 Morrells of Oxford Ltd v Oxford UFC [2001] Ch 459
Re Dolphin’s Conveyance [1970] Ch 654 Wrotham Park Ltd v Parkside Homes Ltd [1974] 1 WLR 798
Derogation from grant
The obligation not to derogate from grant is automatically implied into leases. It embodies the general legal principle
that if one party agrees to give a benefit to another party those parties should not do anything that substantially deprives the
other of the benefit. This covenant is typically relied upon by tenants to prevent landlords from doing something that renders the
property materially less fit for the purposes for which the lease was granted and prevents the tenant from enjoying the property
Relevant factors to assess in relation to this covenant are: the term of the lease; the purposes contemplated by the
parties at the time of grant and the circumstances that resulted in its grant. Usually a breach of this covenant occurs outside of
the property demised to the tenant. For instance, where a landlord has either taken positive steps or has granted rights to a
third party that render the property unfit for the purpose for which it was granted, the landlord has derogated from its grant.
It should be noted that derogation from grant does not offer the tenant protection for uses the landlord had not
contemplated when the lease was granted or from actions that have an adverse economic effect on the tenant but do not
physically affect the use of the property. The obligation not to derogate from grant cannot be excluded or limited by the inclusion
of an express quiet enjoyment covenant (set out below).
An example of derogation from grant is demonstrated in Chartered Trust plc v Davies [1997] 2 EGLR 83 , a landlord
let a unit in a "high class" development to a pawnbroker. The clientele of the pawnbroker caused a nuisance to another tenant
in the development. The landlord was held to have derogated from its grant.
Quiet Enjoyment
A large body of case law has been generated in considering the landlord’s obligations in relation to the covenant to
give the tenant quiet enjoyment. A summary of the current position has been provided in the recent High Court decision
in Shebelle Enterprises v Hampstead Garden Suburb Trust Ltd [2013] EWHC 948 (Ch); [2013] PLSCS 78. The claim in this
case, though unsuccessful, demonstrates that breach of quiet enjoyment remains a fundamental issue that can be raised when
the benefit of the demised property is impeded.
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LPA- Definition: freehold, leasehold
LRA- Procedural aspects - Time period involved in sale or lease (Case law heavy) - Common law)
What is Quiet Enjoyment?