The Law of Real Property

advertisement

The Law of Real Property

Fixtures

Proposition

A poor man with no home and land, who finds a house spot to rent, on which he builds a wooden house for him and his family, who improves upon the house, securing it from the ravages of nature prone to Caribbean, could never contemplate leaving his life’s possessions to his landlord.

One must sympathise wit h any judge who is not personally familiar with the facts of life in the Caribbean; however, it is a matter of everyday occurrence that such houses are removed, whole or in part, to a new location. Thus it is suggested that realty demands the chattel house to be regarded as such, a chattel.

Policy

Fixtures and chattels was a concept that served to determine the difference between realty and personalty at a time when realty went to the heir at law, and personalty went to the personal representative. This was to avoid destruction involved in severing the chattel to the land.

Various tests for determining chattel from fixtures:

Fixtures is chattels which are so affixed to the land or to a building on the land, that it becomes a part of the land; chattels thus lose the character of chattels and pass with the land.

MAXIM at law, quicquid plantatur solo solo cedit – whatever grows in the soil is a part thereof, and thereby becomes the property of the owner of the soil.

The question whether a chattel has been affixed to the land can become exceedingly difficult to answer, thus it is a question of law for the judge to decide. However, a decision in one case is no sure guidance through another. The decision turns upon the particular circumstances of each case, as well as the degree of annexation and object of annexation.

Other tests have been evolved, such as one pointed out in the American case of Teaff v.

Hewitt (1853) 1 Ohio St. 511.

In this case the court said:

“The united application of the following requisites will be found the safest criterion of a fixture:

1.

Actual annexation to the realty or something appurtenant thereto

2.

Appropriation to the use or purpose of that part of the realty with which it is connected

3.

The intention of the party making the annexation, to make the article a permanent accession to the freehold, this intention being inferred from:

(a) the nature of the article affixed

(b) the relation and situation of the party making the annexation

(c) the structure and mode of annexation

(d) the purpose or use for which the annexation has been made

In our Commonwealth Caribbean jurisdiction, Wooding CJ laid down his own formulation in Mitchell v. Cowie (1964) 7 WIR 118 @121 as follows:

1.

A house may be a chattel or a fixture depending upon whether it was intended to form part of the land on which it stands. The intention is to be determined objectively rather than subjectively, i.e. according to the application of the following rules set out here under.

2.

A primary consideration in distinguishing a chattel from a fixture is whether or not the house is affixed to the land.

3.

If a house is not affixed to the land, but simply rests on its own weight, it will be held a chattel, unless it appears from the relevant facts and circumstances that it was intended to form part of the land, the onus rests on the person who alleges that it is not a chattel.

4.

If the house is affixed to the land, however slight, it will be held to form part of the land unless it be made from the relevant circumstances that it was intended to be or continue as a chattel, the onus for doing so rests on the person alleging that it is a chattel.

5.

As regards a house affixed to land by a tenant thereof, a circumstance of primary importance is the object and purpose of annexation.

6.

To ascertain the object or purpose of the annexation, regard must be had to whether the affixation of the house to the land is temporary and for the use as a chattel, or is permanent and intended to be for the better enjoyment of the land. But for this purpose it must at all time be borne in mind that the intention or right of the tenant to remove the house from the land on the cesser of his interest as tenant with the result that no improvement will accrue to the landlord’s reversionary interest does not make the affixation temporary. The critical consideration, therefore, is whether the tenant in affixing his house to the land has manifested a purpose to attach it thereto so that it becomes and remains a part thereof co-terminously with his interest.

Sampson Owusu concludes that:

The controlling and guiding principle for determining this issue is the intention with which the object is affixed to the realty and that the other factors

(a) degree of annexation

(b) mode of annexation

(c) purpose of annexation

(d) relation to the land of the party making the annexation

(e) damage to the land and chattel on removal

(f) custom and usage are used to ascertain the intention.

Relation of the Land to the Party making Annexation

Where one attaches his chattel to his own land, it is easier to conceive that he expected to have intended to make it part of his land. The degree of attachment would be of little consequence.

A fortiori : Does a short tenancy or a tenancy that can be determined at short notice make finding an intention to be come a fixture more difficult to infer?

In Mitchell v. Cowie Fraser J stated:

“I do not think that the duration of the tenancy, providing it is certain, has any influence on the status of the building.”

In comparison, Georges, JA in

O’Brien Loans Ltd. v. Missick (1977) 1

B’mas LR 49

stated:

“In cases where for example a yearly tenant attaches a wooden house to column anchored to the ground, there would seem to be no reason why the degree of annexation should result in the house ceasing to be a chattel and becoming a tenant’s fixture. On the other hand, the owner of a fee simple or of a long lease who erects such a structure on his land would reasonably be held to have intended to improve the land unless there is compelling evidence to the contrary.

Degree of Annexation

Wooding CJ, in the CA case of Mitchell v. Cowie , relied on Turner v. Cameron to uphold the decision of the trial court that the house in Mitchell was a fixture and not a chattel. However, the degree of annexation of the railway lines in Turner on which Wooding CJ relied on, bears no analogy to the construction of chattel houses generally. Wooding CJ’s decision should therefore not be accepted as having that a chattel house is a fixture.

The analogy with the army huts in Billing v. Pill which was also cited and discussed in Mitchell’s case bears more resemblance with chattel houses than the railway lines in Turner.

In Billing v. Pill the huts were erected to provide temporary sleeping accommodation for the army personnel dispatched to man gun replacements during the war. Since the huts could be removed without doing any damage at all to the freehold, they were not annexed to form any part of the realty and thus remained chattels.

Wooding CJ’s holding after he analyzed the case of Turner v. Cameron is open to doubt, for it can be argued that if a tenant erects a structure on the land of another person, he does so not for the enjoyment of the land of which he is a tenant, but for the accommodation the chattel provides.

Undoubtedly the nature of the house in Mitchell’s case makes it completely different from what is ordinarily considered a chattel house:

“The house was built of hollow clay blocks, plastered and stood on concrete pillars and covered with galvanized sheets. Such a house could not be removed without being disintegrated and could not have intended to be dislocated without losing its identity.”

This affords a solid ground on which

Mitchell’s case

can be distinguished.

Wooding CJ’s analysis and application of the principles leave the impression that a chattel house is a fixture. Wooding CJ relied on the view in Turner v. Cameron that the:

“critical consideration is whether the tenant, in affixing his house to the land, has manifested a purpose to attach it thereto so that it becomes and remains part thereof co-terminously with his interest as tenant.”

This cannot be a right principle to base the case of Mitchell v. Cowie . If a tenant for a one year term or less, places a structure on the land of his landlord, and so secures it to withstand the forces of nature during the year of his tenancy, it would not be logical to impute to the tenant an intention to make the structure a permanent asset to the landlord. This view on which Wooding CJ based his decision from Turner v. Cameron , where the term of the lease was 87 years. Such an intention can be ascribed to a tenant of a long lease, but a monthly tenant as in

Mitchell’s case

can hardly have that intention.

-Although in Mitchell the court held the chattel house was a fixture, Wooding CJ accepted that:

“There still exist in this country wooden houses-not very many and certainly not nearly so many as may be seen in some of the neighboring West Indian islandswhich rest by their own weight upon stone or brick foundations. The stones or bricks are so put together as to form a base wall, in some instances let into the ground but more often themselves resting by their own weight on the ground. In either case, they would be like the wooden barn in Wansborough v. Malon in which the wood comprised the entire barn notwithstanding it was placed on stone caps which were let into the ground it was not itself in any way affixed thereto but was supported thereon by mere pressure, that to remove it would therefore in no way disturb the freehold, and accordingly that it was found and remained a chattel.”

Owusu comments that:

The degree of annexation of the railways, and the possibility of damage to the land by removal of the railways in Turner v. Cameron make the facts completely different from the nature and situation of a chattel house. These features of

Turner’s

case are not different from the nature of the house in

Mitchell’s

case. They are however, not similar to the situation and the nature of what is ordinarily conceived as a chattel house.

However, in Reid v. Smith (1905) 3 CLR 656 one of the issues was whether an ordinary dwelling-house, erected upon, but not fastened to the soil, remains a chattel or becomes part of the freehold. The High Court of Australia, reversing the Supreme Court of

Queensland held that it became part of the land “treating the answer almost as a matter of common sense.” In Reid v. Smith , the house in that case was made of wood, and rested by its own weight on brick piers. The house was not attached to the brick piers in any way. It was separated by iron plates placed on top of the piers, in order to prevent an invasion of white ants.

Degree of Annexation

By this test a chattel will rank as a fixture if it is let into or united to the land or affixed to some object which is physically attached to the land. The soil should have been excavated so that it could receive the article which is then cemented. A veranda attached to a house is therefore a fixture – Buckland v. Butterfield.

The general rule is that a chattel is not deemed to be a fixtures unless it is actually fastened or connected to the land or building. Mere juxtaposition or the laying of an article, however heavy, does not prima facie make it a fixture. If a superstructure can be removed without losing its identity, it will not be regarded as a fixture.

Examples: -

A Dutch barn, consisting of a roof resting upon wooden uprights, the uprights being made to lie upon brick columns let into the ground – Elwes v. Maw (1802) 3 East 38 @ 35.

A printing machine weighing several tons, standing on the floor and secured by its own weight – Hulme v. Brigham [1943] 1 AER 204

If the superstructure can be removed without losing its identity, it would retain its chattel character and will not rank as a fixture – H.E. Dibble v. Moore.

Nevertheless the degree of annexation is not a decisive test. Per Blackburn J in Holland v. Hodgson (1872) LR 7 CP 328 @ 335

“Perhaps the rule is, that

(1) articles not otherwise attached to the land than by their own weight are not to be considered as part of the land, unless the circumstances are such as to

show that they were intended to be part of the land, the onus of showing that they were so intended lies on those asserting that the object has ceased to be a chattel, and that on the contrary,

(2) an article which is affixed to the land even slightly is to be considered as part of the land, unless circumstances show that it was intended all along to continue as chattel, the onus lying on those who contend that it is a chattel.”

This dictum of Blackburn J has often been cited with a firm approval by the Courts of

Appeal in this region, but a hard look at the chattel house cases shows that the Courts of

Appeal have been merely paying lip service to the intention criterion as disclosed by

Blackburn J ‘s dictum.

Thus, the second consideration.

Purpose of Annexation

In Elitestone Ltd. v. Morris , in the judgment of Lord Lloyd he differentiates between the tests used for determining fixtures to a house and a house itself. He stated:

“These tests are less useful when one is considering the house itself. In the case of the house the answer is as much a matter of common sense as precise analysis.

A house which is constructed in such a way so as to be removable, whether as a unit or in sections, may well remain a chattel, even though it is connected temporarily to main services such as water and electricity. But a house which is constructed in such a way that it cannot be removed at all, save by destruction, cannot have intended to remain as a chattel. It must have been intended to form part of the realty.”

Object of Annexation

The test here is to ascertain whether the chattel has been fixed for its use as a chattel, or for the more convenient use of the land or building. Blackburn J in Holland v. Hodgson gave the following example:

“Blocks of stone placed one on top of another without any mortar or cement for the purpose of forming a dry stone wall would become part of the land, though the same stones, if deposited in a builder’s yard and for convenience sake stacked on the top of each other in the form of a wall, would remain chattels.

On the other hand, chattels may become annexed to or placed on the land in circumstances which show an obvious intention to benefit the use of the land, and if this is so they become fixtures.

Caribbean Statutory Provisions

Belize Landlord and Tenant Ordinance s.13

The doctrine of the common law quicquid plantatur solo solo cedit, shall have no application in the Territory to tenant’s fixtures of any kind, and all such fixtures affixed to a tenement by a tenant and any building erected by him there on for which he is not so affixed or erected in pursuance of some obligation in that behalf or instead of some fixture or building belonging to the landlord shall be the property of and be removable by the tenant before or after the termination of the tenancy.

Similarly in Guyana Landlord and Tenants Act s.15

and Trinidad & Tobago Landlord and Tenant Act 1981 s.27

The provision vests in the tenant the right to remove any such fixture which he has annexed to the land subject to the following conditions:

(a) payment of all rent and performance of all obligations due to the landlord

(b) repair of any damage caused to the land on removal of the fixture by the tenant

(c) service of one month’s notice on the landlord of intention to remove the fixture

(d) the landlord has the right to pay a fair value for and to keep the fixture by electing to purchase on the receipt of notice of the tenant’s intention to remove it.

NB: Condition (d) has the effect of depriving the tenant of his common law rights.

Under the common law a tenant can remove any fixture used for trade or ornamental purposes and statute also allowed a tenant the right to remove fixtures used for agricultural purposes without any reference to the landlord and the landlord did not have the right to demand against the will of the tenant to buy him out of his property which was used for trade, ornamental or agricultural purposes.

However, the provision extends the rights of the tenant to fixtures used for residential purposes.

Barbados Property Act 1979 s.163

(1) Any chattel, engine, machinery, fencing or other fixture, or any building erected on or fixed to the demised premises by the lessee at his sole expense, for any purpose of residence, trade, manufacture or agriculture, or for ornament or for the domestic convenience of the lessee in the occupation of the demised premises, but not so erected or affixed in accordance with any obligation or in violation of any agreement in that behalf, may be removed by the lessee at any time during the continuance of the lease.

The right conferred by section (1) is not exercisable where the removal of the building or other fixtures would cause irreparable damage to the demised premises, so long as the said right is exercisable the fixture or building remains the property of the lessee.

(4) Upon application by the lessor, the court may make an order vesting in the lessor the building or other fixture, provided reasonable compensation for the loss of the said building or fixture be paid to the lessee.

(5) The lessor is entitled to reasonable compensation for any damage caused to the demised premises by a removal of a building or other fixture under this section.

The Law of Real Property

Fixtures

Fixtures and chattels was a concept that served to determine the difference between realty and personalty at a time when realty descended to the heir at law and personalty on the personal representative. It was to avoid destruction involved in the severance of the chattels from the land.

The maxim at law, quicquid plantatur solo, solo cedit –whatever grows in the soil becomes a part thereof. Thus, chattels which are so affixed to the land as to become part of the land loses the character of chattel and pass with the ownership of the land. Thus, it can be gleaned that chattels are of a temporary nature, while fixtures remain permanent.

Exceptions to the rule of fixture was seen in Poole’s case where it was stated that a tenant can remove a fixture if it is ornamental, or for agricultural and trade purposes.

The controversy surrounding chattel houses is whether they are fixtures in the sense that they become part of the land. In the case of Holland v. Hodgson the dictum of Blackburn

J has often cited in establishing the rule with regards to fixtures and chattels. In this case

Blackburn J states that, “perhaps the rule is that articles attached to the land than by their own weight are not considered part of the land unless the circumstances show that they were intended to be part of the land, the onus of showing such an intention lies on the person(s) asserting that they have ceased to be chattels, and on the contrary, articles affixed to the land even slightly is to be considered as part of the land, unless the circumstances show that it was intended all along to continue as chattel, the onus lying on those who contend that it is a chattel.

Cheshire and Burn also suggest that the decision in differentiating a chattel from a fixture may rely on the degree of annexation and object of annexation. Under degree of annexation the general rule is that a chattel is not deemed to be a fixture unless it is actually fastened or connected to the land or building. Mere juxtaposition or lying of an article, however heavy, does not prima facie make it a fixture.

If the superstructure can be removed without losing its identity, it will not be regarded as a fixture, per H.E. Dibble v. Moore. For example, a veranda attached to the house is a fixture, per Buckland v. Butterfield. Thus, under the object of annexation, the test here is to ascertain whether the chattel has been fixed for its use as a chattel or for the more convenient use of the land or building. A comparatively durable method of affixation will not render a chattel a fixture, if the method of annexation is necessary for its proper enjoyment as a chattel. This test was demonstrated in the case of Leigh v. Taylor where tapestry nailed to the wall together will moulding was held necessary for the adornment and proper enjoyment of them as tapestry, rather than for the improvement of the land.

The principle in Leigh v. Taylor was adopted in the case of Berkley v. Poulett where a vendor screwed pictures, while still in their frames, into the recesses of the paneling of a dining room.

In the Commonwealth Caribbean, the locus classicus is the formulation laid down by

Wooding CJ in Mitchell v. Cowie. Wooding CJ stated that although a house may be a chattel depending upon whether it was intended to be part of the land on which it stands.

This intention is to be discerned objectively rather than subjectively. The American case of Teaff v. Hewitt also listed several tests such as the nature of the article fixed, the relation and situation of the party making the annexation, the structure and mode of the annexation, and the purpose for which the annexation was made.

Where one attaches his chattel to his own land, it is easy to conceive that he intends for it to become part of his land. The degree of attachment is of little consequence. Thus, where a person attaches his chattel to someone else’s land, the question of the relativity to the land by the person making the annexation arises. In Mitchell v. Cowie, Fraser J opined that the duration of tenancy, providing it is certain, has no influence on the status of the building. However, in the Bahamian case of O’Brien Loans Ltd. v. Missick,

Georges JA stated that in cases where a yearly tenant attaches a wooden house to column anchored in the ground there would seem no reason why the degree of annexation would result in the house ceasing to be a chattel and becoming a fixture.

However, where the owner of a long lease erects a similar structure on the land it would seem reasonable hold that he intended to improve the land, unless there is evidence to the contrary.

Wooding CJ, in the CA case of Mitchell v. Cowie , relied on Turner v. Cameron to uphold the decision of the trial court that the house in Mitchell was a fixture and not a chattel.

However, the degree of annexation of the railway lines in Turner on which Wooding CJ relied on, bears no analogy to the construction of chattel houses generally. Wooding CJ’s decision should therefore not be accepted as having that a chattel house is a fixture.

The analogy with the army huts in Billing v. Pill which was also cited and discussed in

Mitchell’s

case bears more resemblance with chattel houses than the railway lines in

Turner.

In Billing v. Pill the huts were erected to provide temporary sleeping accommodation for the army personnel dispatched to man gun replacements during the war. Since the huts could be removed without doing any damage at all to the freehold, they were not annexed to form any part of the realty and thus remained chattels.

Wooding CJ’s holding after he analyzed the case of Turner v. Cameron is open to doubt, for it can be argued that if a tenant erects a structure on the land of another person, he does so not for the enjoyment of the land of which he is a tenant, but for the accommodation the chattel provides.

Undoubtedly the nature of the house in Mitchell’s case makes it completely different from what is ordinarily considered a chattel house:

“The house was built of hollow clay blocks, plastered and stood on concrete pillars and covered with galvanized sheets. Such a house could not be removed without being disintegrated and could not have intended to be dislocated without losing its identity.”

This affords a solid ground on which Mitchell’s case can be distinguished.

Wooding CJ’s analysis and application of the principles leave the impression that a chattel house is a fixture. Wooding CJ relied on the view in Turner v. Cameron that the:

“critical consideration is whether the tenant, in affixing his house to the land, has manifested a purpose to attach it thereto so that it becomes and remains part thereof co-terminously with his interest as tenant.”

This cannot be a right principle to base the case of Mitchell v. Cowie . If a tenant for a one year term or less, places a structure on the land of his landlord, and so secures it to withstand the forces of nature during the year of his tenancy, it would not be logical to impute to the tenant an intention to make the structure a permanent asset to the landlord.

This view on which Wooding CJ based his decision from Turner v. Cameron , where the

term of the lease was 87 years. Such an intention can be ascribed to a tenant of a long lease, but a monthly tenant as in Mitchell’s case can hardly have that intention.

-Although in Mitchell the court held the chattel house was a fixture, Wooding CJ accepted that:

“There still exist in this country wooden houses-not very many and certainly not nearly so many as may be seen in some of the neighboring West Indian islandswhich rest by their own weight upon stone or brick foundations. The stones or bricks are so put together as to form a base wall, in some instances let into the ground but more often themselves resting by their own weight on the ground. In either case, they would be like the wooden barn in Wansborough v. Malon in which the wood comprised the entire barn notwithstanding it was placed on stone caps which were let into the ground it was not itself in any way affixed thereto but was supported thereon by mere pressure, that to remove it would therefore in no way disturb the freehold, and accordingly that it was found and remained a chattel.”

Owusu comments that:

The degree of annexation of the railways, and the possibility of damage to the land by removal of the railways in Turner v. Cameron make the facts completely different from the nature and situation of a chattel house. These features of

Turner’s

case are not different from the nature of the house in Mitchell’s case. They are however, not similar to the situation and the nature of what is ordinarily conceived as a chattel house.

However, in Reid v. Smith (1905) 3 CLR 656 one of the issues was whether an ordinary dwelling-house, erected upon, but not fastened to the soil, remains a chattel or becomes part of the freehold. The High Court of Australia, reversing the Supreme Court of

Queensland held that it became part of the land “treating the answer almost as a matter of common sense.” In

Reid v. Smith , the house in that case was made of wood, and rested by its own weight on brick piers. The house was not attached to the brick piers in any way. It was separated by iron plates placed on top of the piers, in order to prevent an invasion of white ants.

Download