LAWCOMM 442 - Personal Property LN.docx-...
LAWCOMM_442_-_Personal_Property_LN.docx-Don Lye 171346040 LAWPUBL 442: PERSONAL
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LAWCOMM 442 - Personal Property LN.docx-Don Lye 17...
LAWCOMM_442_-_Personal_Property_LN.docx-Don Lye 171346040 LAWPUBL 442: PERSONAL
LAWCOMM 442 - Personal Property LN....
LAWCOMM_442_-_Personal_Property_LN.docx-Don Lye 171346040 LAWPUBL 442: PERSONAL
Page 16
Don Lye
prevent the chattel, once fixed, becoming in law part of the land and as such owned by
the owner of the land so long as it remains fixed.”
UK position is identical to NZ.
Elitestone Ltd v Morris
[1997] 2 All ER 513 (HL)
Land on which a number of bungalows were located.
Owner of the land wanted to develop it but occupants of bungalows had protection under the
relevant legislation.
Owner argues that the legislation protection does not extend to occupants because the
bungalows rested by their own weight and were chattels.
Lord Lloyd of Berwick
Holds that the bungalows were part of the realty.
“The nature of the structure is such that it could not be taken down and re-erected
elsewhere. It could only be removed by a process of demolition. This, as will appear later,
is a factor of great importance in the present case.”
“If a structure can only be enjoyed in situ, and is such that it cannot be removed in
whole or in sections to another site, there is at least a strong inference that the
purpose of placing the structure on the original site was that it should form part of
the realty at that site, and therefore cease to be a chattel.”
Problems with the fixture language.
“It will be noticed that in framing the issue for decision I have avoided the use of the
word ‘fixture.’ There are two reasons for this. The first is that ‘fixture,’ though a
hallowed term in this branch of the law, does not always bear the same meaning in
law as it does in everyday life. In ordinary language one thinks of a fixture as being
something fixed to a building.”
“There is another reason. The term fixture is apt to be a source of misunderstanding
owing to the existence of the category of so called ‘tenants' fixtures’ (a term used
to cover both trade fixtures and ornamental fixtures), which are fixtures in the full
sense of the word (and therefore part of the realty) but which may nevertheless be
removed by the tenant in the course of or at the end of his tenancy. Such fixtures
are sometimes confused with chattels which have never become fixtures at all.”
s 266, PLA 2007
“the question in the present appeal is whether, when the bungalow was built, it became
part and parcel of the land itself.”
“The materials out of which the bungalow was constructed, that is to say, the
timber frame walls, the feather boarding, the suspended timber floors, the
chipboard ceilings, and so on, were all, of course, chattels when they were brought
onto the site. Did they cease to be chattels when they were built into the composite
structure? The answer to the question, as Blackburn J. pointed out in
Holland v.
(1872) L.R. 7 C.P. 328, depends on the circumstances of each case, but
mainly on two factors, the degree of annexation to the land, and the object of the
The degree of annexation.
“The importance of the degree of annexation will vary from object to object.”
Purpose of annexation.

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