OUTER HOUSE, COURT OF SESSION
[2006] CSOH 196
|
A390/05
|
OPINION OF LORD
GLENNIE
in the cause
ABERDEEN
CITY COUNCIL
Pursuer;
against
ALOK WANCHOO
Defender:
ญญญญญญญญญญญญญญญญญ________________
|
Act:
Smith; Brodies
LLP
Alt:
Robertson;
Drummond Miller, WS for Anderson Bain, Aberdeen
19
December 2006
Introduction
[1] The
pursuer is the Aberdeen City Council. It
is the successor in title to the Aberdeen District Council. I shall refer to them collectively as "the
council". The council is the heritable
proprietor of subjects in Aberdeen
("the site") to the south west of the junction of Shiprow and Shore Brae. The defender is the owner and occupier of
warehouse premises adjoining the site.
The main issue between the parties in this action is whether the
defender has a servitude right of access over the site.
The
Site
[2] The site is shown on a plan
annexed to a lease dated 16 and 29 December
1980 between the council and Robert Duthie & Sons Limited
("Duthies"). It covers an area of about
455 square metres and is presently used by members of the public for parking
their cars. The plan is aligned on an
approximately north-west/south-east axis, the top of the plan being
north-west. The site forms part of a
tongue of land emerging from the left of the plan, bounded to the top by
Shiprow, to the bottom by Trinity Quay and to the right by Shore Brae. To the left (south-west) of the site, still
on this tongue of land, are a number of buildings including "The Moorings"
public house, a tattoo bar and a garage building. To the left of these buildings is a large
six-floor brick built building which extends across the whole width of the
tongue of land, from Shiprow to Trinity Quay.
The bottom three floors of this building comprise a warehouse which
interconnects with the garage building.
The buildings generally are known as the Trinity Buildings. The land occupied by the Trinity
Buildings and the site slopes down
from Shiprow to Trinity Quay to the extent that the bottom floor of the
warehouse, at ground level on Trinity Quay is not seen from Shiprow, while the
floor above that is seen from Shiprow as though it were a semi-basement. A building on the lower part of the site was
demolished in 1974.
Background
- Duthies' use of the site
[3] There was little
controversy as to the background to the present dispute. Much of it is set out in a very full and
helpful Joint Minute, tendered during the proof, and in various documents
lodged in process, the authenticity of which was the subject of agreement in
the Joint Minute. I heard evidence about
the background facts from two witnesses for the pursuer and one for the
defender. The pursuer called a
Mr Barlow, who has recently retired but was employed by the council since
1992 in the management of its assets.
Although he could not give first hand evidence on many of the relevant
events, apart from a rent review in 1994, he was familiar with the file and was
able to put the correspondence and minutes into some kind of context. It also called a Mr Beck, a chartered
surveyor, who has been involved in the management of the council's operational
and investment portfolios since 1990.
His responsibilities include responsibility for the site. He also spoke to the file of documents with
which he had had to make himself familiar when he was appointed to his post; and he also was
personally involved in rent reviews after 1990.
The defender called Mr Alan Duthie, who was managing director of
Duthies from 1975 and had been involved in the company in other capacities
since about 1962. He was able to speak
with first hand knowledge of the relevant background, though it is fair to say
that his detailed recollection of events occurring many years before was
understandably hazy. The defender
himself also gave evidence as to his acquisition of the premises from Duthies
and his subsequent use of the site. In
addition a Ms Bhatia and Mr McKimmie spoke to their
knowledge of recent use of the site.
[4] From
about 1963 the warehouse and garage building were owned and occupied by Duthies
and used by them for a wholesale grocery and catering supply business. At that time there was no direct access of
any sort to the Trinity Buildings from the site. Nonetheless, between 1965 and 1968 Duthies
took an assignation of a lease of part of the site and used it as a staff car
park. When the lease came to an end, the
council allowed the Douglas Hotel
to use the site as a car park for guests.
[5] There
were at that time two means of vehicular access to the warehouse: one by an entrance directly into the
warehouse from Trinity Quay; and the other by an entrance from Shiprow into the
garage building and thence into the warehouse.
The Shiprow entrance was not high enough for longer or high-sided
vehicles, and therefore became less easy as vehicles became larger over the
years. These larger vehicles had to park
in Shiprow to unload through that entrance; and since Shiprow is relatively
narrow, that caused blockages to traffic there.
In about 1975 a dual carriageway was built along Trinity Quay, which
substantially restricted vehicular access to the warehouse from there or, at
any rate, made such access unacceptable from the point of view of the
council.
[6] In
1974 and 1975 consideration was given within the council to the possibility of
negotiating access through the site for those who, up until then, had had
access to their premises from Trinity Quay.
This would have the advantage of taking heavy traffic away from the new
dual carriageway. Discussions took place
between the council and, variously, both Duthies and the proprietors of The
Moorings. In February 1976, Duthies
applied for planning permission and building warrant for alterations to their
premises to enable access to be taken through the site. Drawing D/21 sent to the pursuer on 1 March 1976 shows the proposed
alterations. The roof of the garage
building was to be raised;
and its gable end, which abutted the site, was to be opened up,
with large sliding doors opening onto the site.
The new doors and the heightened roof would allow vehicles of all sizes,
taking access across the site, to reverse into the garage building and the
warehouse to load and unload. Steel supports
were needed for raising the roof. The
drawing shows that one of the columns for this structure was to be positioned
in the then existing opening from the garage building into Shiprow, so that,
when the work had been carried out, the Shiprow access would be closed even to
small vehicles.
[7] A
letter dated 8 March 1976 from the Department of City Architect to the Estates
Officer at the Department of Law and Administration shows clearly that the
council recognised that the work involved "the closing up of an existing door
in the warehouse giving access to Shiprow, and the formation of a new door with
access across [the site] to Shore Brae".
Consideration was given, at this time, to the idea of Duthies and The
Moorings jointly taking a lease of the site for purposes of access to their
respective premises. There were
discussions between different departments within the council and between those
departments and Duthies. The council was
concerned that the plans should not be approved unless a right of access to the
proposed new doors - clearly meaning access across the site - was first secured
by Duthies. At one point (as shown by an
internal letter from the Director of Planning and Building Control dated 2 July 1976) the council had a concern
that "the present proposals are unsupported by any assurance regarding
[Duthies'] intention to discontinue vehicle goods handling at the pend on the
Trinity Quay frontage ...". Ultimately, according to Mr Duthie's
evidence which I accept, there was a meeting between Duthies and several
officers of the town council at which it was agreed in principle that Duthies
would construct a new entrance facing Shore Brae and would get access to this
new entrance across the site. It is not
clear precisely when this meeting occurred, but I am satisfied that it took
place at latest before or at the beginning of negotiations for the lease. It may have been considerably earlier.
[8] Matters
dragged on intermittently over the next two years. On 9 May
1978 the council's Director of Planning and Building Control sought
instructions from the Property and Development Committee. His Memorandum dated 9 May 1978 summarises the position as he
then perceived it to be. I set out the
relevant parts of it below:
"1.1 For some considerable time Mr A Duthie, Director, Robert
Duthie and Sons Ltd., "Trinity House", Trinity Quay, has been seeking an
improved vehicular access to the firm's premises.
1.2 The two present vehicular accesses are
located (a) on Trinity Quay - serving the lower levels of the premises - and
(b) on Shiprow - serving the upper levels - and it is proposed to replace the
latter access with a new access from Shore Brae [i.e. across the site].
1.3 The existing arrangements are not
satisfactory in that (a) the Trinity Quay access requires a reversing manoeuvre
by all vehicles to that part of the premises ... or kerb-side goods handling; and
(b) the Shiprow access, on the south side of the street, at its narrowest
point, is suitable for small vehicles only, with large or articulated vehicles
having insufficient space for manoeuvre into the premises and consequently
during fairly frequent periods, on-street goods handling virtually closes the
street to other vehicular traffic.
1.4 The alterations now proposed are (a) the
building-up of the present doorway on the side of the Shiprow premises ...; (b) the formation of a new doorway in the
gable of that building with frontage to Shore Brae; and (c) the leasing from the Council of
sufficient land required to provide (i) a suitable vehicular access from Shore
Brae to the reconstructed premises - the land so required being a part of the
vacant area lying on the west side of the Shore Brae between Shiprow and
Trinity Quay, which is partly laid out as car-park meantime, and partly
derelict; and (ii) a limited amount of staff car-parking space.
1.5 While implementation of the above
proposals would permit some re-arrangement of stock storage/goods handling
within the premises, which would in turn enable more vehicles to use the Shore
Brae access and eliminate the present problem on Shiprow, Mr Duthie has
indicated that it would still be necessary to retain in use the Trinity Quay
access; although
this use would be reduced in volume and could perhaps be restricted to small
delivery vehicles only.
1.6 Mr Duthie
was requested, therefore, to consider a more extensive internal re-arrangement
of the premises including the provision of a hoist or other such facility, with
a view to the desirable closure of the Trinity Quay access and the handling of
all goods being confined to the proposed Shore Brae access, but he now advises
that this is not a practical suggestion."
The Committee met to consider the
matters raised in this Memorandum on 28 June 1978. Noting inter
alia that the suggestion of a lease over the site was "for the purposes of
forming a new access to [Duthies'] adjoining premises and providing car
parking", the Committee resolved to recommend that the existing tenancy of the
site be terminated, that the application to lease be approved in principle and
that it be remitted to the pursuer's Director of Law and Administration to
endeavour to negotiate terms of the lease.
[9] The
public house ceased to be interested in the proposal sometime in the second
half of 1978. Negotiations thereafter
continued with Duthies alone. The
Estates Officer wrote to Duthies on 18 October
1978 proposing a five year lease, with a condition that the site
was to be used "for the parking of vehicles and for no other purpose
whatsoever". Duthies' response in their
letter of 25 October was that the proposed lease was acceptable but in
view of the money which they would require to spend to enable the site to be
used for parking and to comply with the pursuer's requirements to build a
boundary wall, put in an entrance barrier, etc, a period of twenty five years
would be more reasonable. This was
agreed (with rent reviews every five years) in November 1978. This proposed lease was put before the
Property and Development Committee at their meeting on 15 January 1979. They recommended approval of a twenty five
year lease
"on terms and conditions which shall provide inter alia that the ground will be used
for the parking of vehicles and for no other purpose".
In August 1979 a lease was finally
agreed in those terms with entry to be given on 15 November 1979.
[10] The lease was lodged in process. It was eventually signed on 16 and 29 December 1980,
notwithstanding that entry was taken on the agreed date of 15 November 1979. Clause THIRD of the Lease provides:
"The subjects shall be
used, during the currency of the Lease, solely for the parking of vehicles by
the Tenants, their employees and customers and other parties authorised by the
Tenants; and it is hereby declared that
the subjects shall be used for no other purpose unless with the prior approval
in writing of the Council."
Nothing in the lease touched upon
the question of access across the site to the garage building and warehouse.
[11] The alteration to the garage building to raise the roof and
create a new vehicular access opening onto the site was carried out in or about
1981. The work was carried out
substantially in accordance with the Drawing to which I have referred, though
there may have been a slight alteration to the design and precise position of
the steel supports. Thereafter Duthies
took access across the site from Shore Brae to the warehouse and garage
building on a regular and open basis. In
his evidence for the pursuer, Mr Barlow sought to suggest that Duthies had
not used the site contrary to the terms of clause THIRD "in a material
way". He described the use made of the
site as being parking of lorries and loading and
unloading them on the site. When asked
whether Duthies' lorries had since 1981 driven across
the site and into the garage building through the new doors, he said that he
had never seen that happening, nor had he even seen the doors open. Since, during the course of his evidence, he
had not previously appeared to feel constrained by his lack of first hand
knowledge of the facts to which he spoke, I found his reticence on this point
surprising. However, at a later stage in
his evidence, Mr Barlow said that his understanding was that Duthies were
in fact driving vehicles across the site, through the new doors and into the
warehouse. Mr Duthie confirmed that
this was the case and that the council must have been aware of it. I accept this evidence. As the council knew, the heightening of the
garage building, and the creation of an opening and large sliding doors in the
gable end of it, could have been for no other purpose. Mr Beck accepted this in his evidence.
[12] The lease provided for rent reviews every five years. The first was in 1984. In the correspondence between Duthies and the
pursuer, Duthies made the point that they had incurred significant expenditure
in respect of the site, not only by re-surfacing it and erecting railings
around it, but also in raising the roof of the building, making a new entrance
and fitting new doors. This expenditure,
they argued, should be taken into account in fixing the rent. The correspondence is of some interest in
understanding the position of the parties.
Duthies' letter of 8 August was in these terms:
"It is unfortunate that my
main argument, namely access to our building, has been ignored.
Some
considerable time ago we wrote to the Roads Department as we were concerned
about access to our building via Trinity Quay once the dual carriageway was
built. Despite several letters we
received no reply and received no advance warning of the construction of the
dual carriageway. This posed
considerable problems as our access via Trinity Quay was considerably
curtailed.
At this time the
Department of Law and Administration were concerned as they felt we might be
able to press a claim for compensation for reduction of access. This was not our intention - we wished to
gain access to our building by some means.
At this stage
the Roads Department and Police were also concerned as we
were, quite legally, having to unload vehicles in the Shiprow, which
effectively closed this street to traffic.
In order to
resolve these problems it was finally agreed that we would be allowed access to
our building through [the site]. I must
stress that the important factor was access to our building NOT car
parking. Indeed, the owner of 'The
Moorings' was originally to rent the lower part of the site, the 'The Moorings'
changed hands shortly afterwards.
In order that
high vehicles could gain access to our building and thereby doing away with the
necessity of the parking in the Shiprow, it was necessary for us to raise the
roof of our garage, make a new entrance and fit new doors. This naturally was an expensive alteration.
We also had to
convert what was a weed infested site by erecting railings, re-surfacing and so
on. This, also,
involved considerable expense. ...
To sum up - We
have been involved in substantial expenditure to resolve problems not of our
making, affecting the Police, Roads Department and the Department of Law and
Administration. It seems to me most
unfair that we should now be saddled with a large increase in rent."
The council's Director of Estates
responded as follows:
"While I
appreciate your stating that your (sic) mainly concerned with access to your
building and not car parking, I would point out that the ground in question is
clearly being used as a car park and indeed the lease which you signed for the
ground clearly states in Clause Third that the ground is to be used for car
parking facilities and for no other purpose.
Indeed, if car parking is not your main concern, you need not have taken
up the lease for the whole area of ground.
However, as you
do hold a lease for this whole area of ground for car parking purposes, I am
obliged to charge a rental in line with the full market value of the site. ..."
He then indicated that the rent
that he was proposing was slightly below full market value in recognition of
the expenditure Duthies had incurred on resurfacing and the erection of
railings (though not, it is to be noted, their expenditure on the work in
raising the roof of the garage building and creating an access into it from the
site). In response to that, Duthies'
emphasised the amount spent on the alterations to the garage building, which,
they said,
"cost
considerably more than the alterations to the car park and surely proves the
point that the value of [the site] to us is in improving our access".
The Director of Estates in his
reply (on 25 September 1984)
said that he did
"appreciate
the basis of your argument as regards your access requirement and your attempt
to alleviate traffic congestion in the area.
However, although it appears that the question of traffic congestion
prompted your application to lease the ground, negotiations were based solely
on the condition that the ground was to be used for car parking purposes only."
[13] There were further rent reviews at five yearly intervals
thereafter. At the 1989 rent review
Duthies re-iterated the points they had made in 1984. I did not have evidence of the pursuer's
response but I can safely assume that it was much the same. I suspect that similar exchanges took place
at later reviews, but I do not have the correspondence relating to these
reviews.
The
defender's use of the site
[14] Many years later, Duthies
decided to move from the Trinity Buildings.
In July 2002 they offered to purchase the council's interest in the site
or to surrender the unexpired portion of the lease. In fact they did neither. Instead they sold the warehouse and garage
building to the defender and, with effect from 30 May 2003, assigned the lease of the site to the
defender with the council's consent. The
defender lives in Abu Dhabi in the United
Arab Emirates. He carries on a property management business
in Aberdeen and acquired the warehouse and garage building from Duthies with a
view to letting out space for relatively short periods to tradesmen, retailers,
wholesalers and others needing temporary storage facilities. Since he has occupied the premises, vehicular
access has continued on a frequent and regular basis across the subjects and
into the warehouse. This was challenged
faintly by the pursuers but I accept the defender's evidence on this; and I
accept also the evidence to similar effect given by Ms Bhatia and
Mr McKimmie, both of whom used and continue to use the warehouse for
storage in connection with their very different businesses.
[15] When he took an assignation of the lease of the site, the
defender erected a "pay and display" machine and permitted members of the
public to park upon purchase of a ticket from the machine. I was told by the defender, and I accept,
that the lower part of the site was used, without payment, by residents or
persons working elsewhere in the buildings.
The upper part of the site has room for about six cars to park. Cars tended to be left there for the day,
rather than there being a large number of cars passing through each day, each
parking for a short period.
[16] The lease terminated on 28 November 2004.
Just before it expired, the pursuer wrote to the defender's agents
asking if the defender wished to renew the tenancy of the car park area or, if
not, whether he intended to stop taking access.
The agents replied on behalf of the defender saying that they were
taking instructions but they did "not think he has any further interest in the
car park beyond the prescribed servitude right". The defender has not renewed the lease. On 22
June 2004 the pursuer served on the defender a Notice of Removal
under s.37 of the Sheriff Courts (Scotland)
Act 1907 requiring him to remove from the site on 28 November 2004.
This Notice was clearly referable to the expiry of the lease. The present action was brought in August or
September 2005. Pending the outcome of
this action the pursuer has not sought to stop him taking access across the
site. There are certain disputed matters
surrounding the use of the site after termination of the lease, but I shall
return to these at a later stage in this Opinion.
The
pursuer's case
[17] The pursuer's first two
Conclusions were (1) "for declarator that the defender has no servitude right
of access" across the site and (2) "for declarator that the defender's lease
over the sight was validly terminated at Martinmas 2004, and that the defender
had thereafter and has no right, title or interest to be on [the site], and
that the pursuer is entitled to enter upon possession of [the site], and to
dispone thereof at its pleasure."
Mr Smith, who appeared for the pursuer, put forward five
propositions in support of this part of his case.
(i) First, he submitted that the burden of
proof rested with the defender. It was
for him to prove the existence of the servitude right, not for the pursuer to
disprove it.
(ii) Second, under reference to Cusine and
Paisley, Servitude and Rights of Way, at para.10.20, and to Hamilton v McIntosh Donald Ltd. 1994 SC 304 at 322D, he submitted that to
establish a servitude right by positive prescription, the defender's use must
not only be open and peaceable and without interruption - which was not in
dispute in this case - but it must also be unequivocally referable to the right
claimed rather to some other factor such as lease, contract or licence.
(iii) Third, he submitted that the use relied
upon must be taken "as of right", and not simply allowed by tolerance or
contract or licence. He referred me to
Cusine and Paisley (op.
cit.) at paras 10.15 and 10.19, to Nationwide
Building Society v Walter D Allan
Ltd. (unreported 4 August 2004,
Lady Smith) at paras.[30] and [31] and to Grierson v The School Board of Sandsting and Aithsting (1882) 9 R 437.
(iv) Fourth, he
submitted that the use in this case was not unequivocally referable to the
claimed servitude right but was attributable either to the lease or to an
assurance given to Mr Duthie. As to
the former, it was arguable, he submitted, that, notwithstanding the terms of
Clause THIRD thereof, the incidental rights conferred by the lease included
some vehicular access to the warehouse through the site. As to the latter, he submitted that Duthies
took access across the site on the back of an assurance given by the council in
the course of negotiations for the lease which was superseded by the conclusion
of the lease with Duthies. Subject to
any question of personal bar, which might have operated in favour of Duthies,
the council could at any time have refused to permit further access across the
site. The pursuer was entitled now to
refuse access to the defender.
(v) Fifth, he submitted that the possession
in this case was not taken or maintained as of right. There was no clear assertion by Duthies that
they were taking access as of right.
They thought they were enjoying the right of access by virtue of having
entered into the lease. This was the
position taken by Mr Duthie in the rent review in 1984 and there was no
indication that he changed his position thereafter. There was no evidence that, when he sold the
warehouse and garage building to the defender, he told the defender that there
was a servitude right of access over the site. The defender was shown the large doors and
simply assumed that the access was across the site. The defender then took an assignation of the
lease of the site. It may be that
Duthies thought the assignation of the lease to the defender was necessary to
give the defender a right of access across the site. An alternative view was that Duthies were
allowed access across the site in derogation of the restriction in Clause THIRD
of the lease. Such a
derogation would stand or fall with the lease.
In those circumstances Mr Smith
argued that the pursuer's case that the defender had no servitude right of
access was made out and declarator should be granted in terms of the first
Conclusion.
The
defender's case
[18] The defender counterclaimed
for declarator that he did have a servitude right
over the subjects. For the defender,
Mr Robertson accepted that the onus of proof was on his client. He pointed out that the requisite possession
(or use) began in 1981, when the work on creating the opening in the gable end
of the garage building was completed, and continued for at least twenty years
until Duthies continued their business until 2002. Since then the defender had continued using
the access across the site. He submitted
that the use was open and peaceable and for over twenty years the council had
done nothing to stop it. He accepted
that the use had to be "as of right", but this meant no more than that the use
was not attributable to some other basis such as permission or tolerance or
licence. The suggestion that the use was
attributable to the lease was untenable standing the clear terms of Clause
THIRD. The lease did not allow the site
to be used for any access at all to or from the garage building; but even if
some access incidental to parking were allowed, the frequency and regularity of
the access in fact exercised by Duthies fell well outside the ambit of any such
incidental right. Turning to the
question of tolerance, Mr Robertson submitted that tolerance was to be
contrasted with a legal right. In this
case, Duthies acquired a legal right to exercise the right of access across the
site. That right arose by implication
from the whole circumstances before the lease was negotiated. It was not necessary to look for a precisely
concluded agreement - the whole point of prescription was to perfect an
inchoate right. A
servitude can be created by an oral agreement followed by use. He referred to M'Gregor v The Crieff
Co-Operative Society 1915 SC (HL) 93, 103-4 for the meaning to be given to
"as of right". The test of what was
being asserted, and the response to it, was objective. He submitted that use which could not be
prevented, or which could not be prevented save on notice, because of personal
bar was use "as of right" capable of being made permanent by prescription. He contrasted this with "tolerance" (as the
expression is used in this field of the law), where toleration of the
possession or use is capable of being withdrawn at any time.
[19] Mr Robertson submitted that the council gave Duthies an
assurance that they could have access across the site to their warehouse. They did so not only because it suited
Duthies' business but more particularly to solve the council's own road and
traffic problems. The assurance was not
intended as a short term or temporary arrangement. The arrangements of which the assurance was a
part involved Duthies in making extensive alterations to their building in
opening up an access from the site and closing the Shiprow access, against the
background of they having lost their access off
Trinity Quay. In those circumstances, it
could not reasonably be inferred that the council had in mind the grant of a
right of access terminable at will.
Mr Duthie was clear that he thought he was entitled to take access. Initially he appeared not to have taken on
board the terms of Clause THIRD, and he may have thought that the right of
access was in his lease, but this did not matter. His private understanding was
irrelevant. The property might have
changed hands on many occasions, and the subjective understanding of only one
out of a number of persons making continued use of an access route across the
site could not affect the question. If
he was wrong on this point, the fact was that in the rent review of 1984 the
council had made it clear that access was not conferred by the lease. This was sufficient to disabuse
Mr Duthie of any idea that the right of access was founded upon the
lease. More than twenty years had passed
since then. He urged me to disregard the
brief interruption of use of the right of access in the transitional period
between Duthies ceasing business and the defender starting up. Any change in the business was bound to lead
to a short interruption, but this will not necessarily interrupt prescription. It was a question of fact in the whole circumstances
whether there had been a continuous period of twenty years use sufficient to
found a right by prescription. He
referred me in this connection to Cusine and Paisley (op. cit.) at para.10.13. There was, in any case, no evidence that all
use had stopped during this transitional period. Further, Mr Robertson invited me to
reject the notion that the assurances about access could be seen as a derogation from the lease, so that they fell when the
lease came to an end. The assurances had
been given before the lease, not by way of derogation from its terms.
Further
submissions
[20] At the end of parties'
submissions, I asked for some further assistance on the question whether a
right of servitude requires a grant. In
para.[35] of her Opinion in Nationwide Building Society v
Walter D Allan Ltd. Lady Smith said, founding upon what was said by Lord
Young in Grierson: "Servitudes emanate from grants. They are given, not taken." Mr Robertson indicated that he did not
accept this as correct. In Scots law, he
said, a public right of way made good by prescription was not founded upon the
fiction of a presumed grant: Mann v Brodie (1885) 12 R (HL) 52, per Lord
Watson at p.57. There was no reason why
Lord Watson's comments should not apply to servitudes: Cusine and Paisley
(op. cit.) at para.10.13. He submitted that in considering the
acquisition of a prescriptive right - such as an a non domino title - there is no
requirement that a party has acted in good faith. This is inconsistent with any requirement of
a grant, even a fictional grant.
Mr Smith responded by saying that the very concept of an a non domino
title showed the necessity for a grant of some sort. Understandably, since neither party saw this
issue as central to their case, counsel had not come fully prepared to argue
the point. After the conclusion of the
proof, counsel helpfully sent me a Joint Note of Authorities on the point, with
photocopies of the cases referred to.
The authorities referred to, in addition to those mentioned in this paragraph,
were: Gordon, Scottish Land Law, 2nd
ed at para.24-42 and n.93; Erskine,
Institutes II.9.3; Stair, Institutions
II.12.9, II.12.11; Macnab v Munro Ferguson (1890)
17 R 397; and Carstairs v Spence 1924 SC 380 per Lord Blackburn at 394-5.
Discussion
[21] The defender's case is
founded upon s.3(2) of the Prescription and Limitation (Scotland)
Act 1973 which provides that
"If a positive servitude
over land has been possessed for a continuous period of twenty years openly,
peaceably and without judicial interruption, then, as from the expiration of
that period, the existence of the servitude as so possessed shall be exempt
from challenge."
There is no dispute that access was
taken across the site into the garage building from 1981, when the work of
putting large sliding doors into the gable end of the garage building adjoining
the site was completed, thereby closing off access to the garage building from
Shiprow. Access continued to be taken
across the site at least until Duthies stopped carrying on business from the
site in 2002. That is a period in excess
of twenty years.
[22] There is an issue, with which I shall deal later in this
Opinion, as to whether the prescriptive period should start to run from the
rent review of August/September 1984; and whether the use of the access
continued for an uninterrupted period of twenty years after that time. Should this be relevant, I should say that,
in my opinion, it did continue for an uninterrupted period of twenty years
after September 1984. It is not clear
precisely when the defender acquired the premises from Duthies but I infer that
it was probably at about the same time as he took an assignation of the lease
of the site at the end of May 2003. The
defender's evidence, which I accept, was that, since acquiring the premises
from Duthies, he and others using the warehouse for storage have continued to
take vehicular access across the site and into the garage building. There is a gap of about a year - from mid-2002
to mid-2003 - between the time Duthies stopped carrying on business at the site
and the time when the defender moved in.
There was no evidence as to what, if any, traffic accessed the warehouse
across the site during that period.
There is likely to have been some access taken during this period by
persons interested in purchasing Duthies' premises, but I assume there would
not have been regular access by lorries or other
delivery vehicles. A brief interruption
of the otherwise regular exercise of the access does not necessarily prevent the
whole period up to the beginning of these proceedings in about August/September
2005 counting as a single continuous period of use for the purposes of
prescription. It is a question of fact
whether or not it has this effect: see Cusine & Paisley at p.342. In the present case I consider that it does
not. Any change of ownership of the
warehouse has the potential to interrupt the taking of access across the site. The council was aware of the proposed sale by
Duthies. It knew that the site provided
the only vehicular access - for large vehicles at least - to the warehouse and
that any purchaser of the warehouse would require to use
such access. It must, therefore, have
anticipated that the use of the site for access to the warehouse would resume
as soon as the new owner of the warehouse took possession. It could be said that, in offering the
premises for sale with only the one means of access for large vehicles, Duthies
were continuing to exercise their right of access across the site during the
whole period up to the conclusion of the sale to the defender. In the whole circumstances, I consider that
the brief interruption should be seen as no more than an inevitable incident of
the change of ownership and not such as to interrupt the running of the prescriptive
period.
[23] There was no dispute that the access was taken openly and
peaceably. But Mr Smith argued that
the use of the site for access was not unequivocally referable to the right
claimed; and, further, that the access across the site was not taken "as of
right". In this case,
and I suspect in many cases, these points merge into one. They require an analysis of the circumstances
in which Duthies came to take access across the site and persisted in it
thereafter.
[24] Putting the matter at its simplest, the evidence shows that
Duthies originally had two entrances into the warehouse, one from Trinity Quay
and one from Shiprow (through the garage building). The development of the dual carriageway along
Trinity Quay meant that the use of the entrance there became restricted,
particularly for large vehicles. The use
of the Shiprow entrance gave rise to problems both for Duthies and the
council. The difficulty for Duthies was
that the entrance was not big enough to take large vehicles. I do not know whether this difficulty could
have been overcome by raising the roof of the garage building and increasing
the height of the doors opening onto Shiprow; this was not explored in evidence
before me. The difficulty for the
council was that the process of loading and unloading lorries
at the Shiprow entrance effectively blocked the road for up to three quarters
of an hour at a time. Lurking in the
background seems to have been a concern on the part of the council as to their
potential legal liability if, in one way or another, they stopped or restricted
Duthies' access to the warehouse. The
solution was to open up a new means of access through the site. It is not clear from the evidence which party
was the first to raise this possibility, but the raising of it seems to have
been triggered by the proposal to turn Trinity Quay into a dual
carriageway. By the time of Duthies'
application for planning permission and building warrant in February 1976, the
work required to create such a right of access had been worked out in detail
(and, indeed, there were only minor alterations to the plans thereafter). It may well have been at about this time
that the agreement was reached in principle (at the meeting to which I have
referred) that Duthies could take access across the site. I cannot see why they would have progressed the matter so far without such agreement. Clearly they would not have carried out the
considerable work in raising the roof of the garage building and installing the
large double doors in the gable end of that building unless they had received
an assurance that they could take access across the site. It matters not that the assurance or
agreement in principle was not reduced to writing. It would have been sufficient to entitle
Duthies to succeed in a plea of personal bar in answer to any attempt by the
council to prevent them using the access across the site. To that extent, it is clear that the access
taken by Duthies was taken "as of right" and not simply by tolerance on the
part of the council. I would go
further. If it were necessary to
consider whether the servitude had been exercised for a period of twenty years
from 1984, I would hold that the defender also used the access across the site
"as of right". Although the defender was
not directly a party to the assurance given by the council, in permitting
Duthies to incur expense in opening up the new entrance gates on the strength
of the assurance that they could have access across the site, the council must
have known that that the council's assurance would be passed on, albeit
tacitly, to anyone interested in purchasing the warehouse premises from
Duthies. Mr Smith pointed to the
fact that there was no evidence of Mr Duthie having told the defender in
so many words that there was a right of access across the site. This, to my mind, is wholly beside the
point. The position of the new entrance
to the warehouse, and the absence of any other useful entrance, itself conveys
a representation to any purchaser that there is a right of access across the
site; and, since the new entrance was, as the council knew, opened up on this
basis, and since the former entrances were, to all intents and purposes,
removed by the council, that implied representation can be taken as having come
from, or having been made with the acquiescence of, the council. Had the point arisen before this litigation
started, I consider that the defender too would have been entitled successfully
to plead personal bar in answer to any attempt by the council to stop him taking
access across the site. To that extent,
he also used the access "as of right" and not by tolerance.
[25] The pursuer's strongest argument stems from the fact of the
lease entered into between the council and Duthies in 1979. Despite the restrictive terms of clause THIRD
thereof, Mr Smith argued that the council and Duthies should be regarded
as operating under or by reference to the lease as far as access to the
warehouse was concerned. He put the
argument in two different ways. His
first argument was that the lease gave Duthies rights of access across the site
incidental to the rights of parking conveyed by the lease. The line between exercising such an
incidental right and using the site for unrestricted access was not easy to
draw. The council could be forgiven for
not observing that Duthies' use of the site for access over the whole period
exceeded that which the lease allowed them.
His second argument was that the council's agreement that Duthies could
take access across the site could be viewed as a derogation from the terms of
clause THIRD of the lease or, I suppose, a waiver of the right to rely on the
use restriction in that clause. Any such
derogation or waiver was effective only so long as the lease continued. The right, if any, created thereby was, at
its longest, co-terminus with the lease.
When the lease was not renewed in November 2004, any permission to use
the site for access contrary to the terms of clause THIRD came to an end. The arguments are alternative to each other,
since the latter involves the council knowing that access was being taken
contrary to the terms of clause THIRD whilst the former assumes that the
council had no such knowledge.
[26] I consider that both arguments must fail. As to the first, it cannot seriously be
argued that the council did not appreciate the extent of the access taken by
Duthies. It is no doubt true that
representatives of the council were not on site on a regular basis to observe lorries reversing across the site into the large doors of
the garage building. But they did not
need to be. They knew that the only
purpose of Duthies having carried out the work to the garage building was to
enable lorries to cross the site to enter the
building. They also knew that the former
entrances to the warehouse were no longer possible or practicable. They must therefore have known that the site
provided the only access to the warehouse for large vehicles. Anyhow they must have been aware that the
access across the site was being used.
So I reject the first argument.
[27] I also reject the second argument. I am satisfied on the evidence that the
assurances given to Duthies about access were given before the lease was
negotiated. Although the building work
was not completed until 1981, I am satisfied that Duthies had committed
themselves to the new access arrangements well before that. Accordingly, simply in terms of timing, I
find that permission was given to use the site for purposes of access well
before the lease was entered into. That
permission cannot sensibly be viewed as a derogation
from a restriction in a lease which did not then exist. But the matter does not stop there. Not only does clause THIRD of the lease make
it clear that the lease is "solely for the parking of vehicles", but this was
insisted upon for some time before the lease was finalised, both at Committee
meetings within the council and in correspondence with Duthies. After the lease was entered into, in the rent
review discussions in 1984 the council maintained its insistence that in terms
of the lease the site was to be used "for car parking facilities and for no
other purpose". All this is inconsistent
with the idea that the council were allowing Duthies to take access across the
site in terms of the lease and as a derogation from
the restrictions in clause THIRD.
[28] There is one matter in particular which shows clearly, to my
mind, that from the start both parties regarded the question of access and the
question of the lease as distinct. When
the detailed terms of the lease were first put forward by the council in their
letter of 18 October 1978,
they proposed a period of five years only.
It is difficult to conceive that Duthies would have incurred that
expenditure and blocked up the Shiprow access if they were only to be given the
new access route for five years. Given
that the previous means of access to the warehouse from Trinity Quay and
Shiprow were effectively closed to the sort of vehicles required to load and
unload, any finite term for access arrangements would threaten the long
term use of the warehouse; but a period of access as short as five years would
be wholly inadequate in light of the expenditure on raising the roof and
opening up the gable end on which, as both parties knew, Duthies were to
embark. Yet when Duthies responded to
the council to say that five years was too short, and proposing twenty five
years, they justified this not by reference to the expenditure on the garage
building to enable access to be taken but by reference to the expenditure needed
to make the site suitable for a car park.
Such an exchange is inconsistent with either party at that time thinking
that the lease was the vehicle for allowing Duthies to have access across the
site.
[29] In the rent review of 1984, Mr Duthie made reference to
access across the site. As I interpret
the correspondence, the point he was making was that he was not particularly
interested in paying a lot of money for the car park, because it was access to
the warehouse that Duthies wanted, not car parking space. The implication is that he only took the
lease of the car park in order to obtain rights of access. Mr Smith understandably made some play
of this, but I do not think that it is of any real significance. Taking his evidence as a whole, I do not think
that Mr Duthie regarded the lease as the thing that enabled him to obtain
access across the site. The exchanges
about the term of the lease are inconsistent with any such linkage. His attitude, put shortly, was that he
clearly had a right of access across the site because that was what the council
had agreed at the big meeting; and everything that had happened
thereafter had followed from the agreement at that meeting. However, even if Mr Duthie had,
mistakenly, thought that it was the lease which gave him access, he was
disabused of this by the council's response in the rent review
correspondence. They made it plain that
the lease was just for parking, and the rent review concluded on that basis. Accordingly, if there had been any force in
the point up until then, it is clear that from late 1984 at the latest any
lingering suggestion that access was being taken in terms of the lease was
removed. Thereafter, as I have found,
access was taken for a continuous period of twenty years.
[30] Accordingly, I reject the pursuer's arguments that the exercise
of the right of access was attributable either to the lease or to mere
tolerance on their part. I am satisfied,
on the whole of the evidence, that Duthies used the site as a means of access
openly and without force, asking no permission after the initial
discussions. I am satisfied also that
the council must have been aware that, having been party to the assurances and
being aware of the expenditure on the change of access into the warehouse, they
could not simply turn round and deny access across the site. In those circumstances I find that the access
taken by Duthies was taken "as of right", it was unequivocally referable to the
right claimed; and,
in terms of section 3 of the Act, amounted to the exercise of a positive
servitude over the site for a continuous period in excess of twenty years.
[31] On these findings the question whether a
right of servitude requires a grant does not require to be answered. I have found that there was a grant. I have also found use taken as of right by
Duthies, alternatively by Duthies and the defender, for a continuous period of
over twenty years nec vi, nec clam nec precario. On either view, therefore, the defender is
entitled to succeed. However, having had
the benefit of full citation of authority on this point, I should say that, had
I required to decide the point, I would have inclined
towards the view that there was no additional requirement on a person claiming
a servitude right to establish, directly or by inference, that there had been a
grant. It seems to me that, if Lord
Young's opinion in Grierson is to the
effect that there is such a requirement, it did not find favour with the
majority of the Second Division in that case.
Nor is it consistent with the speeches in the House of Lords in Mann v Brodie: see, in particular, per Lord Blackburn
at p.54 and Lord Watson at p.57.
Although that case was concerned with the establishment by prescription
of a public right of way, there can, in my opinion, be no relevant distinction
in this respect between such a case and the establishment of a servitude
right. However, since it is not
necessary to decide the point I say no more about it.
Other claims
[32] The other claims advanced by the pursuer in this action can be
dealt with more briefly. The lease
terminated on 28 November 2004. The pursuer averred that the defender
remained in unlawful occupation of the site until at least March 2005. The only evidence for this came from Mr
Barlow. He said that the defender's "pay
and display" ticket machine continued to operate until about February
2005. He said that parking receipts
continued to be issued to persons wishing to park on the site who put money
into the machine. He had become aware of
these matters, he said, from visiting the site and seeing parked cars
displaying tickets. There were discarded
tickets on the site. He spoke to four
tickets lodged in process by the pursuer which he said were "similar to" the
ones he had seen, though he could not say that they were actually tickets taken
from the site. They bore dates from late
January to mid-March 2005. All of this,
on his evidence, showed that the defender was continuing to use the site for
car parking after termination of the lease.
The pursuer claimed violent profits in the sum of ฃ8,000, representing
twice the previously agreed rental for one third of a year.
[33] I did not accept Mr Barlow's evidence as to the essential
parts of the pursuer's case. The
defender called as a witness a Mr McKimmie.
He said that, on the instructions of the defender, he disconnected the
electricity supply to the "pay and display" machine in September 2004. His evidence was supported by an invoice from
his building company dated 1 October
2004. It was not suggested
in cross-examination that he was untruthful in his evidence, or even that he
was mistaken. In any event, I accept his
evidence. The disconnection of the
machine involved disconnecting armoured cable leading from the main power
supply. I am satisfied that it was a
permanent disconnection. I do not accept
the suggestion, tentatively made, that the machine's battery might be
re-charged on a regular basis so that it could be used to issue tickets
notwithstanding the fact that it was disconnected. Nor was I persuaded that the parking tickets
lodged in process by the pursuer were tickets issued by the machine. If the machine was disconnected, of course,
they could not have been. But apart from
that, they bore no text identifying them as relating to this car park
site. The serial numbers on the tickets
suggested that they related to a site where there was a greater turnover of
vehicles parking each day. I find that
the pursuer has failed to make out its case on the evidence.
Disposal
[34] I shall therefore repel the pursuer's pleas in law in the
principal action and assoilzie the defender from the conclusions of the
Summons. I shall sustain the defender's
plea in law in the Counterclaim and grant declarator as counterclaimed by the
defender.