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LAND USE ACT DID NOT CONVERT A TENANT INTO AN OWNER

Dictum

It was not the aim of the Land Use Act to convert a tenant into an owner merely by the fact that such tenant was in occupation of his landlord’s land before the inception of the Act.

— Oputa JSC. Onwuka & Ors. V. Ediala & Anor. (SC.18/1987, 20 January 1989)

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DISTINCTION BETWEEN A HOLDER & OCCUPIER IN LAND LAW

The essential distinction which could be made between a “holder” and an “Occupier” as defined, is that whereas the former is a person entitled in law to a right of occupancy, the latter is not a person so entitled. The legal effect of the distinction is that an “occupier” will necessarily hold of a “holder” who would at the commencement of the Land Use Act be entitled to a customary right of occupancy. Hence, the fact that the “occupier” is in possession, and the “holder” is not, does not alter the true legal status of the parties.

– Karibe-Whyte, JSC. Abioye v. Yakubu (1991) – SC.169/1987

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POOR DRAFTING OF THE LAND USE ACT

This case has once more highlighted the unnecessary difficulties created by lack of precision and inelegant drafting of statutes. The Land Use Act as a major legislation affecting the fortunes of every Nigerian leaves a lot to be desired in its drafting. The Land Use Act is an existing law and, as I declared in another forum earlier on last year, has come to stay with us. Laudable as the intention of the Act declared in the provisions of section 1 is, it is my opinion that it cannot be realised as long as the administrative provisions which deprive all Nigerians of the use and benefit of the land vested in the Military Governor remains. It is for Nigerians through their representatives (elected and non elected) to give detailed examinations to these provisions and make the necessary amendments to enable the Act achieve its laudable purpose.

– Obaseki, JSC. Savannah v. Ajilo (1989)

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RENT INCLUDE THE IMPROVEMENTS MADE ON THE PREMISES

✓ Ponsford v. H.M.S. Aerosols (supra). Here there was lease dated August 19, 1968 of factory premises in Barking for 21 years and the revision of rent was to be referred to a surveyor under an arbitration clause where the parties disagree on the revised rent. In 1969, the premises were burnt down and rebuilt out of the proceeds of insurance. The licence for the improvements which were in fact made was contained in a document dated November 14, 1969, where in clause 1 it provided: “The landlords hereby grant unto the tenants licence to execute in and upon the demised premises the several alterations and works indicated in the plan annexed …. It is hereby agreed and declared that all the lessee’s covenants and conditions contained in the lease which are now applicable to the premises demised thereby shall continue to be applicable to the same when and as altered and shall extend to all additions which may be made thereto in the course of such alterations.” The lease of August 19, 1968 indicated, inter alia, that the rent would be assessed “as reasonable rent for the demised premises”. The trial judge. held that a reasonable rent for the premises should be assessed without taking account of the improvements made by the defendants. The plaintiffs appealed on the ground that the judge was wrong in his construction of the rent review clause. On appeal, the Court of Appeal, by a majority of 2:1, reversed the judgment of the trial court and held that the revised rent would include the improvements made on the demised premises.

✓ Cuff v. J. & F. Stone Proper Ltd. (supra) provided that improvement on the land should not be wholly disregarded. Cuffs case is different from the case before us in the sense that the improvements on the land had been made prior to the execution of the lease. Accordingly the improvement, unless expressly excluded, must be taken into account in computing the revised rent. In the instant case there was not improvement on the bare land at the time of the lease, and the subsequent improvement did not form part of the demised premises. Without doubt, the improvements in the Cuff case formed part of the demised premises.

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COURT JURISDICTION IN CUSTOMARY RIGHT OF OCCUPANCY GRANTED BY LOCAL GOVERNMENT

Olaleye-Ote & Anor v. Babalola (2012) LPELR-9275(SC), where it was stated that, “The Land Use Act vested jurisdiction in proceedings relating to Customary Right of Occupancy granted by a Local Government on: ‘An Area Court or Customary Court or other Court of equivalent jurisdiction in a State without classification. The State Law imposed classification with jurisdiction of each grade of Court based on the value or annual rental value of the land, this modifying the jurisdiction conferred by the Federal Law.’ In my humble view, the Federal Legislature effectively covered the field in relation to the jurisdiction of the relevant Courts over proceedings in matters of customary right of occupancy granted by a Local Government. The State Law conferring jurisdiction according to Grade and value of the land in litigation is in conflict with S.41 of the Land Use Act, a Federal legislation.”

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COMPENSATION FOR REVOCATION UNDER THE LAND USE ACT

Compensation under sub-section (1) of section 28 of the Act would be as respects:- (a) the land for an amount equal to the rent if any paid by the occupier during the year in which the right of occupancy was revoked, i.e. 1979; (b) buildings, installation or improvements thereon for the amount of the replacement cost of the building, installation or improvement, that is to say, such cost as may be assessed on the basis of the prescribed method of assessment as determined by the appropriate officer less any depreciation together with interest at the bank rate of delayed payment of compensation and in respect of any improvement in the nature of reclamation works being such cost thereof as may be substantiated by documentary evidence and proof to the satisfaction of the appropriate officer; (c) crops on land apart from any building, installation or improvement thereon, for an amount equal to the value as prescribed and determined by the appropriate officer.

— Obaseki, JSC. Foreign Finance Corp. v Lagos State Devt. & Pty. Corp. & Ors. (1991) – SC. 9/1988

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DAMAGE TO CROP GROWING ON LAND

It is a misconception to regard damage for crops growing on land as not belonging to a claim for trespass to land. Quic quid plantatur solo, solo cedit.

– Obaseki, JSC. Ekpan v. Agunu (1986)

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