Cenac & Ors v Schafer (Saint Lucia)

[2016] UKPC 25

Privy Council Appeal No 0044 of 2015

SIR KIM LEWISON:

1.                   Like many places in and around the Caribbean the law of Saint Lucia restricts the holding of land by aliens without a government licence. The principal issues on this appeal concern the legal effect of those restrictions on a transaction between US citizens.

2.                   In 1986 Mr and Mrs Cenac, who are both citizens of Saint Lucia, owned a parcel of land extending to about eight acres known as La Battery. It was registered in the Land Registry as Block 0031B, Parcel 20. By a deed of sale dated 29 August 1986 Mr and Mrs Cenac sold the land to Dr and Mrs Smith, who are US citizens. The deed recited that Dr and Mrs Smith were duly licenced to hold the land by virtue of a licence granted under the Aliens (Landholding Regulation) Act (No 10 of 1973). The licence had been granted by the Governor-General on 30 August 1985, and was made subject to the conditions in its Second Schedule which read:

“THE PROPERTY is to be used for the purpose of building a residence and developing agriculture - the building to be completed within three years of the date of issue of this licence.”

3.                   Dr and Mrs Smith were registered as proprietors of the land at the Land Registry on 27 July 1987. Although the Smiths began some construction work, they did not complete the building of a residence within the three years given by the licence. By letter dated 4 March 1991 Dr and Mrs Smith purported to sell the land to Mr Hedrick for US $150,000. They acknowledged receipt of US $75,000; and the balance was to be paid within 18 months. One half of the purchase price is much more than a conventional deposit. Mr Hedrick was also a US citizen; and although he held licences under the Aliens (Landholding Regulation) Act to hold other land in Saint Lucia, he did not have a licence to hold La Battery. Belle J, the trial judge, found that at some time in 1991 Mr Cenac and Mr Hedrick had lunch together in the course of which Mr Hedrick told Mr Cenac that Dr Smith had agreed to sell the land to him for US $150,000. On 20 March 1991 Mr Hedrick placed a caution on the register of title at the Land Registry. He made the final payment of the agreed purchase price in February 1994.

4.                   On 29 April 1994 Dr and Mrs Smith granted Mr Hedrick an irrevocable power…