Case Summary:

Title: Council of the City of Plymouth v AB Gigg (1997) 

Court of Appeal May 1997

The tenant who was on housing benefit was residing in private rented property whilst waiting on the council housing list.  A council house became available and the council insisted that the tenant move in immediately meaning that the current landlord would not receive his four weeks notice and thus four weeks rent would be outstanding from HB.

Held: It was held that where a tenant is on housing benefit and by moving home has incurred an unavoidable liability that the 'losing landlord' is entitled to payment of housing period for the notice period. 

However, Plymouth's counsel successfully argued that the determination of recoverable overpayment was a public law decision and did not give rise to private law rights and duties.1)The significance of this judgement is that any issue between a landlord and a local authority as to over - or -underpayment may be determined within the procedure of review and further review as provided for in regulation and, in the event of error of law, by resort to judicial review.2) This case also demonstrated that the wording of Reg 5(5)d (Housing Benefit Regs 1987) was flawed - the liability could not have been avoided at the time of the dual payment.  A liability to pay rent is in the legal sense not generally avoidable.  The regulations have subsequently been amended to clarify the wording.

LUJ Ref: Oct 97 pg23