SUMMARY OF HL BOLTON(ENGINEERING) LTD V. TJ GRAHAM & SONS LTD

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HL BOLTON(ENGINEERING) LTD V. TJ GRAHAM & SONS LTD

The landlord asserted that a tenancy should not be renewed and claimed to have held the freehold for more than 5 years.

Held: The Landlord had only become the reversioner to the lease after accepting a surrender of the head lease. The Act referred to the landlord having purchased his interest. That had not happened, and he was entitled to rely upon ground 30(1)(g). The court considered the nature of a company. Lord Denning LJ said: ‘A company may in many ways be likened to a human body. It has a brain and nerve centre which controls what it does. It also has hands which hold the tools and act in accordance with directions from the centre. Some of the people in the company are mere servants and agents who are nothing more than hands to do the work and cannot be said to represent the mind or will. Others are directors and managers who represent the directing mind and will of the company, and control what it does. The state of mind of these managers is the state of mind of the company and is treated by the law as such. So you will find that in cases where the law requires personal fault as a condition of liability in tort, the fault of the manager will be the personal fault of the company.

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