The effect for Guardianship Companies of Global 100 Limited v Laleva

The Court of Appeal recently delivered its landmark judgment in Global 100 Limited v Maria Laleva, a case concerning property guardianship companies and their rights to obtain possession of premises occupied by property guardians.

The facts in Global 100 Limited v Maria Laleva

Global 100 Limited ("Global 100") entered into an arrangement which allowed them to grant temporary, non-exclusive licences to people whom they selected to be property guardians. Global 100 granted an agreement described as a temporary licence agreement to Laleva (and others).

But when Global 100 sought to retake possession, Laleva resisted; Global 100 issued possession proceedings  which Laleva defended on the basis that:

• She was a tenant as the "factual reality" was her temporary licence agreement was an assured shorthold tenancy.
• Alternatively, the temporary licence agreement was a sham.
• Global 100 had no sufficient interest in the land to bring a claim for possession.

Global 100 obtained possession at first instance, on a summary judgment basis, as the claim was "not genuinely disputed on grounds which appear to be substantial". The decision was later reversed and the claim was ultimately appealed to the Court of Appeal.

Commentary

The Court of Appeal agreed that Laleva's arguments had no real prospects of success and whilst Global 100 did have sufficient interest to bring proceedings, Laleva would be estopped from arguing otherwise in any event. Accordingly, the court had been correct to grant possession on the basis of an unsubstantiated defence and the possession order was reinstated.

This case provides further clarity to the ever-evolving law on property guardianship occupation and will be relied on by guardianship companies seeking to progress possession claims quickly on a summary judgment basis.

Howard Kennedy has considerable experience in advising property guardianship companies and if you require any further information please contact Hollie Jordan-Wright with any queries.

If you wish to find out more about this case and property guardian service agreements, register your interest for our upcoming seminar The effect for Guardianship Companies of G100 Limited v Laleva with Howard Kennedy's Hollie Jordan-Wright and Nicholas Grundy QC of Five Paper Chambers on 8 March 2022 at 10:00 here.