Exercising trustees' powers to restrict beneficiaries' rights of occupation of doctors' surgery

Rodway v Landy, 4 April, 2001 (Court of Appeal).

The Court of Appeal ruled on an occupation dispute between two doctors in respect of the medical practice surgery that they jointly owned. The court held that the co-owners, as trustees of a trust of land, had power to restrict their rights as beneficiaries to occupy the property so that they would each occupy one part of the property only (section 13, Trusts of Land and Appointment of Trustees Act 1996).

It was not appropriate in this case, for the court to order a sale of the property because this would have constituted a sale of the goodwill of a medical practice, and as such would have been unlawful (section 54(1), National Health Service Act 1977).

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