Commons, town and village greens

Commons and Rights of common

The term ‘common land’ or ‘common’ usually refers to and includes all land that is subject to a ‘right of common’. A right of common is a right that one or more persons (‘commoners’) has to take the natural produce of that land, in common with each other and with the owner of the land. In most statutes, the term ‘common’ is defined more widely as including any land liable to be inclosed under the Inclosure Acts, and any town or village green. See Practice Note: Creation and registration of common land.

Halsbury's Laws of England defines a right of common as:

‘a right, which one or more persons may have, to take or use some portion of that which another man's soil naturally produces. Such part of that produce as the commoners do not lawfully take belongs to the owner of the soil. The right is in the nature of a profit à prendre, and so must be distinguished from an easement, which, although a right over another man's land, confers no right to participation in the produce of that land.’

Rights

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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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