Jonathan Upton considers how the court distinguishes a sham agreement
In Brumwell v Powys CC [2011] EWCA Civ 1613 the Court of Appeal considered the overlapping issues of sham agreements and management agreements in proceedings for the grant of a new tenancy under Pt II of the Landlord and Tenant Act 1954 (the 1954 Act). These issues arise with surprising frequency in the 1954 Act renewal cases, and practitioners must be aware of them in order to properly advise their clients.
Brumwell
The appellant (B) issued proceedings under the 1954 Act for the grant of a new tenancy of the Wyeside Camping and Caravan Park, Llangurig Road, Rhayader, Powys (the park). The park has been used as a site for touring and static caravans and as a camping ground since the 1960s. This business was carried on initially by the Radnorshire District Council and then, following local government reorganisation in 1996, by its successor, Powys County Council (the council). B first came to the park in 1995 to perform cleaning and caretaking duties.
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