London Borough Of Lambeth v Blackburn

Adverse possession requires factual possession and a present, manifested intention to possess land to the exclusion of everyone, including the paper owner. The intention is assessed principally from unequivocal acts apparent to the owner. A squatter need not intend to own the land, exclude the owner in every future circumstance, or remain indefinitely. An intention to remain for the time being until eviction is sufficient, provided it continues throughout the limitation period. A willingness to pay rent or negotiate a tenancy does not ordinarily negative the required intention, although its significance depends on context. Where factual possession is established, courts should not strain to reject animus possidendi.

The Council appealed from an order for possession made by His Honour Judge Cox in the Lambeth County Court on 19 February 2001. The defendant had occupied a council-owned flat since February 1988, replacing the Council’s padlock with his own lock and using the flat as his home.

The trial judge accepted that the defendant had factual possession for the relevant 12 years but held that he lacked the necessary intention to possess because he expected eviction, would have negotiated with the Council, and would have paid rent if permitted to remain. The central issue was whether he had the requisite animus possidendi under section 15(1) of the Limitation Act 1980.

1. Appeal allowed. The possession order was set aside and the Council’s claim was dismissed as time-barred. The Council held the flat on trust for the defendant under section 75 of the Land Registration Act 1925, and the defendant became entitled to registration as freehold owner. The Council was ordered to pay the defendant’s costs at first instance and on appeal.
2. The Court of Appeal refused permission for the Council to raise a new challenge to the extent of factual possession. The point had not been taken below, and the evidence might have been different had it been raised at trial.
3. Clarke LJ, with Laws LJ agreeing and Judge LJ concurring, held that adverse possession requires factual possession and the requisite intention to possess. The relevant intention is an intention, in the claimant’s own name and on his own behalf, to exclude the world at large, including the paper owner, so far as reasonably practicable and as the law allows. This approach followed Powell v McFarlane (1977) 38 P & CR 452 and Buckinghamshire County Council v Moran [1990] 1 Ch 623.
4. The intention must be manifested by unequivocal acts and is ordinarily inferred from those acts. Removing the Council’s lock, replacing it with a yale lock, moving into the flat and living there as a home together demonstrated an intention to exclude everyone, including the Council.
5. A squatter need not intend to own the land, exclude the owner in all future circumstances, or remain indefinitely. An intention to keep the owner out for the time being and until eviction is sufficient, provided factual possession and that intention continue for the full limitation period.
6. The defendant’s expectation of eviction and willingness to negotiate a tenancy or pay rent did not negative animus possidendi. Such evidence may be relevant in context. The court applied the principle in Ocean Estates Ltd v Norman Pinder [1969] 2 AC 19. Judge LJ explained that R v Secretary of State for the Environment, ex parte Davies (1990) 61 P & CR 487 concerned a different evidential and statutory context.

• Court of Appeal (Civil Division) — [2001] EWCA Civ 912: allowed the appeal, set aside the possession order, dismissed the Council’s claim, and made the trust and registration orders under section 75 of the Land Registration Act 1925. Permission to appeal to the House of Lords was refused.
• Lambeth County Court — order dated 19 February 2001: held that the claim was not statute-barred because factual possession had been established but the necessary intention to possess had not.