Central London Property Trust Ltd v. High Trees House Ltd

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Central London Property Trust Ltd v. High Trees House Ltd
King's Bench Division
Date decided: 18 July 1946
Full case name: Central London Property Trust Ltd and High Trees House Ltd
Citations: [1947] K.B. 130; [1956] 1 All E.R. 256 (Note); 62 T.L.R. 557; [1947] L.J.R. 77; 175 L.T. 333
Judges sitting: Denning J.
Cases cited: Buttery v Pickard, (1946) 174 L.T. 144;
Fenner v Blake, [1900] 1 Q.B. 426 (QBD);

William Porter & Co Ltd, Re, [1937] 2 All E.R. 361 (Ch D)

Legislation cited: None
Case history
Prior actions: None
Subsequent actions: None
Keywords
Intention; Promises

Central London Property Trust Ltd v. High Trees House Ltd [1947] K.B. 130; [1956] 1 All E.R. 256 (Note); 62 T.L.R. 557; [1947] L.J.R. 77; 175 L.T. 333 – sometimes simply referred to as the High Trees – is a High Court case decided by Mr Justice Denning (later Lord Denning) that helped establish the doctrine of Promissory estoppel in contract law in England and Wales.

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[edit] Facts

In 1937 High Trees House Ltd. leased a block of flats for a rate £2500/year from Central London Property Trust Ltd.. Due to the war and the resultant heavy bombing of London occupancy rates were drastically lower than normal. In January of 1940, to ameliorate the situation High Trees House Ltd. made an agreement with Central London Property Trust Ltd. in writing to reduce rent by half. However, neither party stipulated the period for which this reduced rental was to apply. Over the next five years, High Trees paid the reduced rate while the flats began to fill and by 1945 the flats were full. Central London sued for payment of the full rental costs from June 1945 onwards (i.e. last 2 quarters of 1945).

[edit] Ruling

Based on previous judgments in Hughes v. Metropolitan Railway Co. and Birmingham and District Land Co. v. London & North Western Railway, Mr Justice Denning held that the full rent was payable from the time that the flats became fully occupied in mid-1945, but stated 'obiter' that if Central London had tried to claim for the full rent from 1940 onwards, they would not have been able to. This 'obiter' remark was not actually a binding precedent yet it essentially created the doctrine of promissory estoppel. This decision should be contrasted with Foakes v. Beer.

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