JA Pye (Oxford) Ltd v Graham

Adverse possession requires factual possession and an intention to possess, not an intention to own, and a squatter's willingness to pay for use does not defeat the claim.

Citation
[2002] UKHL 30, [2003] 1 AC 419
Court
House of Lords
Year
2002
Subject
Land Law
Topic
Adverse possession

Facts

The Grahams farmed land next to fields owned by Pye, a property company, which had let them use the fields for grazing under a grazing agreement. When the agreement ended in 1983, Pye refused to grant a new one, because it hoped to obtain planning permission for development, and told the Grahams to leave. The Grahams stayed on and continued to farm the fields for more than 12 years, without paying. They had said that they would be willing to pay for a licence if asked. They then applied to be registered as owners of the land, which was worth millions of pounds.

Legal principle

The House of Lords held that the Grahams had acquired title by adverse possession. Lord Browne-Wilkinson said that there are two elements: a sufficient degree of physical custody and control, which is factual possession, and an intention to exercise such custody and control on one's own behalf and for one's own benefit, which is intention to possess. It is not necessary to have an intention to own the land, or to exclude the owner in all circumstances. The Grahams' willingness to pay if asked did not prevent them from having an intention to possess. The owner's future plans for the land were irrelevant. The House expressed disquiet about the result, which had been changed for registered land by the Land Registration Act 2002.

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This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.

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