Neighbour disputes

This Overview summarises the key types of dispute arising as between neighbours, including claims in nuisance (noise, trees, and other complaints), boundary disputes, and access to neighbouring land.

Neighbour disputes may not be of high financial value, but they can be among the most acrimonious and difficult to resolve. The Court of Appeal has stressed that professional advisers have a duty to warn their clients at an early stage about the downside of ‘neighbour litigation’ even for a successful party. Apart from significant costs, ongoing relationships will be affected and the litigation may blight the properties and lives of those involved. If at all possible, disagreements about rights of way, boundaries and the like should be settled without resorting to court.

Nuisance

Nuisance claims are recognised in the following way:

  1. private nuisance—substantial interference with the ordinary use and enjoyment of land

  2. public nuisance—an unlawful act or omission, causing widespread harm

  3. ‘the rule in Rylands v Fletcher’ (‘non-natural’ activity on the defendant’s land resulting in something escaping and causing harm)

While the same action may amount to a private and public nuisance, an individual

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Insolvency, declarations of trust, loan agreements, artificial asset protection, sham transactions, transactions defrauding creditors, interspousal asset transfers, change of position defence and wife’s entitlement to share of husband’s assets (Sayers v Dixon)

Restructuring & Insolvency analysis: The court held that six declarations of trust (DoTs) executed by the transferor (Mr Dixon) in favour of his wife (Mrs Dixon) constituted transactions defrauding his creditors within the meaning of section 423 of the Insolvency Act 1986 (IA 1986) and that two of them, purporting to transfer all his future assets and income to Mrs Dixon, along with an accompanying loan agreement, were shams which were void and ineffective. It set aside the DoTs and ordered Mrs Dixon to restore the value of three transferred properties (which had been converted into £551,589 cash) to Mr Dixon’s trustees in bankruptcy (trustees) together with interest of £101,726. It also ordered an account to be taken of the funds that had been transferred to Mrs Dixon or on her behalf by Mr Dixon over the seven years between the date of the DoTs and his bankruptcy. The court dismissed Mrs Dixon’s defence of change of position to the trustees’ claim for restoration, finding that even if such a defence were generally available (which is unclear), she had not acted in good faith and could not rely on it. It also dismissed her defence that, having been married to Mr Dixon for many years, she was entitled to half his assets and/or an entitlement to a share of them by virtue of a right to be maintained. Written by Jonathan Lopian, barrister at New Square Chambers, who acted for the successful claimants.

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