Re Citro

Re Citro [1991] Ch 142 is an English land law case, concerning co-ownership of land, and an order for possession on bankruptcy of one of a number of co-owners.

Facts

Domenico and Carmine Citro went bankrupt, their remaining assets a half share in their family homes. Domenico had separated from his wife, and she was living in their house with three children, youngest 12 years old, 24, Dryfield Road, Burnt Oak, Edgware, Middlesex. Carmine lived at home with three children, youngest 10 at 109, Bell Lane, Hendon, London NW4. The debts owed exceed the value of the interest in their homes. The trustees in bankruptcy applied for declarations and for orders for sale under LPA 1925 s 30 (now TLATA 1996 s 14).

Judgment

High Court

Hoffmann J made orders for possession and sale but considering the circumstances of the two wives and their children, and because a half share left for the wives would not be enough to buy accommodation elsewhere, and the problems of education in the area, the sale was postponed until each of the youngest children became 16.

Court of Appeal

Nourse LJ allowed the lenders’ appeal, whose interests would usually prevail. Financial hardship is not an exceptional circumstance. ‘Exceptional’ means beyond the normal ‘melancholy consequences’ of bankruptcy so hardship, eviction, relocation do not qualify as exceptional circumstances. The circumstances must be special, not just unusual.

Bingham LJ concurred, regretfully, because he said prior cases pointed this way and it was important to avoid arbitrariness. Still, he said submissions on a moratorium were to be invited.

Waller LJ dissented.

See also

• English trusts law
• English land law
• English property law

References