Disposition

J A Pye (Oxford) Ltd and another v Graham and another ([2002] 3 All ER 865 H of L)

The claimant owned agricultural land which, under an agreement which expired on 31 August 1984, he permitted a neighbouring farmer to use for grazing and grass-cutting. After the expiry of the agreement the farmer, for the next 14 years, farmed the land all year round without the owner’s permission, using it in any way he thought best and treating it as part of his farm. When the owner of the land commenced proceedings to recover it, he was met with the defence that his action was barred by s15 of the Limitation Act 1980, which provides that no action to recover land can be brought after the expiration of 12 years from the date on which the right of action accrued. By virtue of paragraph 1 of Schedule 1 of the Act, the right of action was treated as having accrued on the date on which the person, who, having been in possession of the land, had been ‘dispossessed’ while entitled to it. The question to be decided was whether, at any time between 31 August 1984 and 30 April 1986, the owner had been ‘dispossessed of the land’. The trial judge thought he had been so dispossessed, but the Court of Appeal held he had not because the farmer had lacked the intention of possessing the land to the exclusion of the owner. The House of Lords agreed with the trial judge, holding that the necessary intent was one to possess, not own; the intention being to exclude the paper owner only so far as was reasonably possible. There was therefore no inconsistency between a squatter being willing to pay the paper owner if asked and his being in possession in the meantime. The farmer had plainly been in factual possession before 20 April 1986 and he had manifestly intended to assert his possession against the owner when he had remained in factual possession after the expiry of the permission.