Malory Enterprises Ltd v Cheshire Homes (UK) Ltd [2002]

1. Facts

• The property in question was a block of flats that had become derelict and unsaleable.

• The building was being used for temporary storage.

• The claimant, Malory Enterprises, established that someone was in actual occupation (AO) of the property.

• To maintain security and prevent intruders, a fence was erected around the plot, which contributed to the claim of AO.

2. Outcome

• The court confirmed that actual occupation had been established despite the property's derelict condition and its use for storage.

• Lady Arden noted that the evidence on the site clearly indicated someone lived there, affirming the claim of AO.

3. Impact and Analysis

• Actual Occupation: The case demonstrates that actual occupation can be established even in unconventional circumstances, such as when a property is derelict and used for purposes other than residential living.

• Evidence of Occupation: The erection of a fence and other site evidence played a crucial role in proving AO, showing that physical presence and measures taken to secure the property can be indicative of occupation.

• Significance of Site Evidence: Lady Arden’s observation highlights the importance of on-site evidence in determining AO, emphasizing that indicators of occupancy, even in temporary or unusual situations, can substantiate claims of actual occupation.