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You are here: BAILII >> Databases >> United Kingdom House of Lords Decisions >> Sovmots Investments Ltd v Secretary of State for the Environment [1977] UKHL 3 (28 April 1977) URL: http://www.bailii.org/uk/cases/UKHL/1977/3.html Cite as: [1979] AC 144, [1977] UKHL 3, [1977] 2 All ER 385, [1977] 2 WLR 951, [1977] QB 411 |
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Die Jovis, 28° Aprilis 1977
Parliamentary
Archives,
HL/PO/JU/4/3/1312
HOUSE OF LORDS
SOVMOTS
INVESTMENTS LIMITED
(APPELLANTS)
v
SECRETARY OF STATE FOR THE ENVIRONMENT AND OTHERS
(RESPONDENTS)
BROMPTON
SECURITIES LIMITED
(APPELLANTS)
v
SECRETARY OF STATE FOR THE ENVIRONMENT AND OTHERS
(RESPONDENTS)
[Conjoined Appeals]
Lord Wilberforce
Lord Edmund-Davies
Lord
Fraser of Tullybelton
Lord Russell of Killowen
Lord Keith of
Kinkel
Lord Wilberforce
my lords,
In these
conjoined appeals, the appellants (1) Sovmots Investments
Ltd.
("Sovmots ") and (2) Brompton Securities Ltd. ("
Brompton ") are seeking
to have quashed a compulsory purchase
order made by the London Borough
of Camden ("Camden")
and confirmed by the Secretary of State for the
Environment. At
first instance, Forbes J., on 1st August 1975, quashed the
order,
but his decision was reversed by the Court of Appeal on 21st July
1976.
The full
title of the order is the London Borough of Camden (Centre
Point
Residential Accommodation) Compulsory Purchase Order 1972.
It was made
on 12th September 1972, under Part V of the Housing
Act 1957, in particular
under sections 96 and 97.
Centre
Point is a remarkable, elaborate and expensive complex of
buildings
at St. Giles Circus, London, W.C. The site freeholders
are the Greater
London Council, and Sovmots are lessees for 150
years from 29th September
1960. The present litigation, and the
difficulties in its resolution, arise
directly out of the unique
character of this development.
Centre
Point was completed in the winter of 1966/7, but with
minor
exceptions, which at the date of the order did not include
the residential
section, has never been occupied. There is a
considerable housing shortage
in Camden, so it is not surprising
that in 1972 the Council decided compul-
sorily to acquire the
residential section in order to provide housing
accommodation for
people on its housing list.
Centre
Point consist of three main parts. First, on the west side, there
is
a very high tower block meant for office use. Second, there is
a low Bridge
Block running west to east, joining the other two
parts: this is intended for
shops and showrooms. Third, on the
east side, running from north to south,
there is the Earnshaw
Wing. This is of unusual construction. The lower
part consists of
a basement car park and four floors intended for shops,
showrooms
and offices. This part has a flat roof, called a " podium ".
From
the podium there rise columns, or stilts, architecturally
keyed in with the lower
part, which support a massive block of
distinct architectural design containing
36 two-storey maisonettes
in six floors. Each maisonette is reached from a
corridor running
from south to north through the middle of the block on
alternate
floors. Access to the upper floor of each maisonette is by
an
internal staircase. It is these maisonettes which are the
subject of the
compulsory purchase order.
The
structure of the Earnshaw Wing and of the maisonette block
is
elaborate and can only be adequately described with the help of
plans and
photographs. These were available to your Lordships.
Your Lordships
2
found it
useful to visit the site and inspect it in some detail. The
following
features are particularly relevant for the purposes of
these appeals. Access
to the maisonette block is provided by lifts
and staircases. There are two
passenger lifts at the south end
from an entrance hall on the ground floor
of the Earnshaw Wing:
these serve only the maisonettes via the corridors.
There is also
a goods lift from the ground floor to the podium which also
serves
the shops. There is a staircase alongside the passenger lifts: this
also
provides access for showroom and office floors in the lower
part. There is
another staircase at the north end of the Earnshaw
Wing: this is in two parts.
The upper part provides exits, really
for emergency use, at alternate floor
levels from the masonettes'
corridors. At the other (alternate) levels it is
possible to
escape from the maisonettes on to the staircase through
hatches.
Below podium level, this staircase provides access to the
floors from
mezzanine level downwards and emerges on to the
street. There is a con-
nection between the two parts of this
staircase by a one-way door which
allows access from the
maisonettes, but is supposed to deny access to them.
Also
at the north end of the maisonettes there is a small rubbish chute
to
which the maisonettes have access: this terminates in a
receptacle in an
enclosed chamber on the podium. This receptacle
is said to be capable of
being wheeled across the podium to the
goods lift at the south end.
There are
common services available for the Earnshaw block which are to
a
great extent combined and not capable of separation as between the
upper
and lower part. Electricity is controlled from an intake
room in the basement
where there are five switch-geared supplies,
four for the maisonettes, the fifth
for the general services
provided in the wing, viz., lifts, ventilation, lighting
and power
to stairs, corridors, car parks and showroom and shops areas.
Water
is supplied to the maisonettes by extensions of the mains
supplying
the lower part of the building. Soil and surface water
from the maisonettes
runs from drains in the block into drains for
the lower part and thence to
inspection chambers below the block.
Overflow pipes from the maisonettes
discharge on to the podium
roof. It is obvious, on examination, and it was
so found by the
inspector, that the Earnshaw Wing, and indeed the whole of
Centre
Point, was designed as one complex unit suitable for a single
office
user with a need of showroom space. The maisonettes seem to
have been an
after-thought, and indeed an embarrassment, but they
were " part of the
" planning permision package ".
The idea was that they should be pieds-a-
terre for the offices'
directors and executives.
This
combination of units turned out difficult, indeed so far
impossible,
to let as a whole. So on 23rd November 1973, i.e.,
after the making of the
order, Sovmots entered into an underlease
of the maisonettes to Brompton.
This underlease was for 45 years
from 29th September 1973. It included,
in addition to the
maisonettes themselves, the southern staircase and entrance
hall,
also the northern staircase above podium level. As would be
expected
it contained a number of detailed provisions, covenants
and reservations.
In particular it contained a grant of easements,
or rights, as to the passage of
water, soil, electricity and gas,
as to the use of the goods lift, and as to the
use of the northern
staircase below podium level, with corresponding reserva-
tions
for the benefit of Sovmots and their tenants in the rest of the
block.
Brompton have in turn sublet maisonettes to tenants at high
rents.
The
appropriate notices and advertisements, having been given and
made,
Sovmots and Brompton objected to the compulsory purchase
order and a pub-
lic inquiry was ordered by the Secretary of
State. This was held by Mr. Peter
Boydell, Q.C., as inspector,
assisted by Mr. W. J. N. Oswald, F.R.I.C.S. The
inspector produced
his report on 28th March 1974, a document of admirable
clarity and
comprehensiveness, and it dealt fully and fairly with the
objections,
in fact and in law. The recommendation was that the
order be confirmed
with certain modifications, and this was
accepted by the Secretary of State.
The material modification
related to the description of the property. I set out
in parallel
the original description as it appeared in the order and the
modified
description as confirmed. There were corresponding differences
in
the maps.
3
Original Order 36 Residential maisonettes on the 3rd, 4th, 5th, 6th, 7th and 8th floors forming part of and adjacent to the east side of the property known as Centre Point, London, W.C.l. Together with such parts of the building which are necessary for access thereto and the maintenance thereof.
|
Order as confirmed 36 Residential maisonettes on the 3rd, 4th, 5th, 6th, 7th and 8th floors of the part of and adjacent to the east side of the property known as Centre Point, London, W.C.I., together with, (i) the corridors giving access to the said maisonettes, (ii) the entrance hall, staircase and lifts at the south end and (iii) the staircase above podium level at the north end. |
There was
an argument based upon the original terms of this description and
its
modification by the Secretary of State to the effect that the first
was
uncertain and the second ultra vires. However I take
the view, on a fair
reading, that the original order contemplated
acquisition of certain—then
unspecified—physical
parts, which parts were then specified under the
numbering
(i)—(iii) in the confirming order. Neither description, in
my
view, contemplated in terms the acquisition of rights.
We are, in
these appeals, not concerned in any way with the financial
or
sociological merits of the proposed compulsory acquisition. On
the other
hand, the courts have power on legal grounds to quash a
compulsory pur-
chase order—indeed they must do so if a
proper case is made out.
Three
reasons were put forward by Sovmots why the order should be
quashed,
namely:
1.. That a
local authority cannot be authorised by the Minister under
the
Housing Act 1957 to acquire compulsorily a horizontally-divided
part
of a building (or " stratum ") excluding the underlying
soil on
which the building stands.
2.. That a
local authority cannot be authorised by the Minister not
only to
acquire a corporeal hereditament but also to compel the grant
for
the benefit of such hereditament of new rights over lands or
buildings
not authorised to be acquired.
3. That a
local authority cannot be authorised by a compulsory
purchase
order to compel the grant of such new rights if there is
no
description or mention of them in such order.
The first
of these reasons was rejected both by Forbes J. and by the Court
of
Appeal and was ultimately not pursued in this House. Reasons (2)
and
(3) were accepted by Forbes J. but rejected by the Court of
Appeal. Two
further reasons for quashing the order were given on
behalf of Brompton,
one of which related to the description of the
property I have already referred
to. The second related to an
agreement between Camden and the Greater
London Council and in the
view which I take of the appeals does not arise
for decision.
I come
therefore to deal with the second objection put forward by
Sovmots.
The relevance of this objection to the validity of the
order arises under the
Acquisition of Land (Authorisation
Procedure) Act 1946 which in turn is
incorporated by the Housing
Act 1957, section 97 and Schedule 7. Under
paragraph 15 of
Schedule 1 to the Act of 1946 an order may be quashed by
the High
Court (inter alia) if the court is satisfied that the
authorisation
granted by the compulsory purchase order is not
empowered to be granted
under the Act, or under the Housing Act
1957.
It is
common ground between the appellants and the respondents that
if
Camden cannot under the compulsory purchase order acquire the
ancillary
rights over the appellants' property which are necessary
if the maisonettes,
when severed in ownership from the rest of
Centre Point, are to be used as
dwellings, then the Secretary of
State could not confirm the order and it must
be quashed. So the
question is whether these ancillary rights can be acquired.
4
I start
with the proposition that an acquiring authority cannot, under a
mere
power to acquire land, and in the absence of a special provision
in
the relevant " special" or general Act, require an
owner of land to grant to
it rights over his land which did not
exist at the time of the purported
acquisition. The proposition
is, I think, correctly stated in Halsbury's Laws
of England, 4th
Ed., Vol. 8, paragraph 56, as follows:
"
There is no power to create and take an interest in land such as a
"
lease without acquiring the freehold or other interests unless
specific
" power to do so is given in the special Act; nor is
there power to
" create and purchase an easement without
purchasing the land unless
" special provision is made or in
either case the owner agrees."
This
proposition simply states a consequence of the process of
compulsory
acquisition. Parliament can authorise an authority to
take the land of
private persons; but if it wishes to confer on an
anthority power to require
an owner to create, in its favour,
limited interests or rights, less than the
owner's interest (for
which of course less compensation might be paid) it
must do so in
specific terms. Parliament has done this in certain cases
(for
example in the Water Act 1948, section 11) and it is argued that,
by
implication, it has done so in the Housing Act 1957. I shall
deal with that
argument. But without specific power this cannot be
done.
The main
argument before the inspector and in the courts below was that
in
this case and under the compulsory purchase order as made no
specific
power to require the creation of ancillary rights was
necessary because these
would pass to the acquiring authority
under either, or both, of the first rule
in Wheeldon v. Burrows
(1879) 12 Ch.D.31 ("the Rule") or of section 62
of
the Law of Property Act 1925. Under the Rule (I apologise for
the
reminder but the expression of the rule is important) "
on the grant by the
" owner of a tenement or part of that
tenement as it is then used and enjoyed,
" there will
pass to the grantee all those continuous and apparent easements
"
(by which, of course, I mean quasi easements), or, in other words all
those
" easements which are necessary to the reasonable
enjoyment of the pro-
" perty granted, and which have been
and are at the time of the grant used
" by the owners of
the entirety for the benefit of the part granted " (I.c. p.
49,
per Thesiger L.J., my emphasis). Under section 62 a conveyance of
land
operates to convey with the land all ways, watercourses,
liberties, privileges,
easements, rights, and advantages
whatsoever, appertaining or reputed to
appertain to the land, or
any part thereof, or, at the time of conveyance,
demised, occupied
or enjoyed with, or reputed or known as part or parcel
or
appurtenant to the land or any part thereof.
My Lords,
there are very comprehensive expressions here, but it does not
take
much analysis to see that they have no relevance to the situation
under
consideration.
The Rule
is a rule of intention, based on the proposition that a man may
not
derogate from his grant. He cannot grant or agree to grant land and
at
the same time deny to his grantee what is at the time of the
grant obviously
necessary for its reasonable enjoyment. To apply
this Rule to a case where
a public authority is taking from an
owner his land without his will is to
stand the Rule on its head:
it means substituting for the intention of a
reasonable voluntary
grantor the unilateral opposed, intention of the acquirer.
Moreover,
and this point is revelant to a later argument, the words I
have
underlined show that for the Rule to apply there must be
actual, and apparent,
use and enjoyment at the time of the grant.
But no such use or enjoyment
had, at Centre Point, taken place at
all.
Equally,
section 62 does not fit this case. The reason is that when land
is
under one ownership one cannot speak in any intelligible sense
of rights,
or priviliges, or easements being exercised over one
part for the benefit of
another. Whatever the owner does, he does
as owner and, until a separation
occurs, of ownership or at least
of occupation, the condition for the existence
of rights, etc.,
does not exist—see Bolton v. Bolton (1879) 11
Ch.D. 969,
5
970 per
Fry J. and Long v. Gowlett [1923] 2 Ch. 177, 189, 198,
in my opinion
a correct decision.
A
separation of ownership, in a case like the present, will arise on
con-
veyance of one of the parts (e.g. the maisonettes), but this
separation
cannot be projected back to the stage of the cumpulsory
purchase order so
as, by anticipation to bring into existence
rights not existing in fact.
My Lords,
I have thought it necessary to deal with these arguments in
spite
of their virtual abandonment in this House, for two reasons.
First
they were the foundation of the inspector's recommendation,
and some of
his findings as I shall show, are clearly based on his
view as to the validity
of the arguments. And, secondly, I have
little doubt that the contentions
which were presented to your
Lordships are, in reality, but a thinly disguised
or gently
refurbished version of them. To see this it is only necessary
to
quote two passages from the judgment of the Court of Appeal,
([1976] 3
W.L.R. 597) which the respondents seek to uphold:
"Although
no question of common intention arises, one must
"
construe the compulsory purchase order and ascertain the intention
"
of the acquiring authority. Camden must have intended to acquire
"
the rights here in question, without which it would be impossible
for
" the maisonettes to be used as houses. The description
of the physical
" property which they are empowered to take
therefore includes by
" necessary implication all ancillary
rights necessary for its use for the
" purpose for which it
is being acquired—that is, as houses." (p. 613).
"
The maisonettes were being acquired for the purpose of being
"
used as houses. There is a finding of fact that these ancillary
rights
" are necessary to enable them to be used for that
purpose. Camden
" must therefore have intended to acquire
these ' rights ' with the houses,
" and on the true
construction of the compulsory purchase order they
" are
included by necessary implication in the description of
the
"' houses' themselves" (p. 614).
Before I
deal with the argument based on " necessary implication ".
I
should describe in more detail the " ancillary rights"
in question. There
was produced before the Inspector a
document—marked CBC2A—in which
Camden gave its
description of these rights. I quote the relevant part.
"
Note of Ancillary Rights and Obligations for
Inclusion in the
" Conveyance
" A.
The London Borough of Camden will acquire the following
"
rights pursuant to the first rule Wheeldon-v.-Burrows (1879 12
Ch.D.31
" and section 62(2) of the Law of Properly Act 1925.
" (1)
A right (in case of emergency only and for no other purpose
"
whatsoever) for the Council, their tenants and occupiers of
"
the acquired premises to use the staircase below podium
"
level at the north end of the demised premises.
" (2)
A right in common with the owners and occupiers of the
"
remaider of the building to use the goods lift (when operating*
"
for the purpose only of removing rubbish from the acquired
"
premises and for no other purpose whatsoever.
" (3)
A right of support from the building below podium level and
"
from the columns supporting the residential block.
" (4)
A right of free passage or running of water, soil, electricity,
"
gas, and other services through the pipes, wires, and cables
"
serving the acquired premises.
" (5)
A right of access by means of the outside of the building for
"
purposes of window cleaning, maintenance, and repair.
" (6) All other such rights as are within the said rule and section."
There are
several points to notice about this. First, the document formed
no
part of the compulsory purchase order so has no status in law.
Secondly
it is non-exhaustive (see paragraph 6) and indeed learned
counsel for Camden
described the items as " illustrations ":
one, possibly important, other right
6
not
specifically mentioned, was a right of access to the electricity
meter room.
Third, the list is headed with a reference to Wheeldon
v. Burrows, and to
section 62 of the Law of Property
Act 1925, so confirming that what we
have is an attempt to gain by
a new phrase of " necessary implication "
exactly what
Camden cannot get under either of these rules. Fourthly, it
is
obvious from the list, and also from the factual situation of the
maisonette
block, that just what rights the occupiers of the
maisonettes should have over
the retained portion of the building
must be a matter of discussion and
negotiation, and in no way
comes under a heading of " necessity ". That
word might
indeed cover access to the block, but this is provided for
by
acquisition of the lifts and staircases: other exits and
entrances can be
provided through several permutations; it might
cover drains, but the
situation as regards these is not simply one
of an easement of pipes, since
below podium level the same pipes
and mains have to serve the needs of
both parts of the wing; it
might cover support, but the precise obligations
of the subjacent
owner as regards the elaborate structure of " stilts "
and
cement blocks, most evidently need description. A confirmation
of this is
provided by the underlease of the maisonettes from
Sovmots to Brompton
dated 23rd November 1973. This, as one would
expect, contains an extensive
body of reservations and covenants
consequent on the separation or occupa-
tion. It resembles—and
probably inspired—the document CBC 2A but is
not identical
with it; it clearly represents the result of careful
negotiation
between landlord and tenant. And this is surely the
reality of the matter.
Centre Point was designed as a combined
unit: it was not constructed for
separation into parts. If
separation is carried out, there is no evident,
apparent, and
still less necessary list of rights which, without specification,
or
in the nature of things, attach to a separated part. And if
these rights cannot
(for the reasons I have given) arise under the
Rule or under section 62,
a fortiori, in my opinion, they
cannot arise as necessary. Or, to put in another
way, Camden while
professedly contending for necessities is really adopting a
standard
of reasonable enjoyment and convenience which must be custom-
made
for this structure.
This
argument, from necessary implication overlaps with two other
argu-
ments, based on definitions appearing in the legislation.
1. What is
authorised to be acquired is "land". By the
combined
operation of the Compulsory Purchase Act 1965 section
1(3), the Acquisi-
tion of Land (Authorisatiion Procedure) Act
1946 section 8(1), and the
Housing Act 1957 section 189(1), land
is defined as including "any
" right over land ".
In my opinion this is a carefully spelt out definition
within
which the acquiring authority is confined. There is no room
here
for extension by way of " necessary implication " whatever
that
expression is supposed to mean. If what is authorised to be
acquired
cannot be used for the purpose for which its acquisition
is intended, un-
less by agreement, and if agreement is not
forthcoming, I know of no
doctrine by which, under some rule of
implication, the power of acqui-
sition can be extended beyond the
satutory definition. I accept, of
course, as authority amply
demonstrates, that statutory powers can,
indeed should, be
construed in accordance with Parliament's intention,
so as to
include what may fairly be regarded as incidental to or
conse-
quential upon what has been authorised—this is the
well known principle
of Ashbury Railway Carriage & Iron Co.
v. Riche L.R. 7 HL 653 :
for a recent application see Loweth
v. Minister of Housing & Local
Government (1970) 22 P. &
C. R. 125. But it is one thing to say that
an express power to
acquire land may be valid, if fairly within the
statutory purpose:
It is quite another to say that under a power to ac-
quire land
there follow with the land some other interests not mentioned
in
the authority to acquire. Expropriation cannot take place by
implica-
tion or through intention: it is authorised or not
authorised. And to see
which, it is necessary to construe the
authority. So is acquisition author-
ised under these words? In my
opinion, clearly not. A power to
acquire a right over land cannot
authorise compulsion of an
owner of land not being acquired to
grant new rights over that land;
for the latter quite different
words would be needed. Parliament has
7
tried its
hand at them in the Local Government (Miscellaneous Provi-
sions)
Act 1976, section 13—the contrast with the words relevant
here
is clear.
2. The
Housing Act 1957 contains specific provision for the acqui-
sition
of houses (section 96). I am willing to accept, for the purpose
of
this argument, that there is power compulsorily to acquire "
houses " as
defined in the Act—as well as to acquire "
land ". Section 189(1)
contains this:
"
'house' includes (a) any yard, garden, outhouses and appurten-
"
ances belonging thereto or usually enjoyed therewith ",
and
it is said that these words carry the ancillary rights. But I
cannot
agree. These words are a clear echo of those used in the
first rule in
Wheeldon v. Burrows and in section 62
(u.s.). " No doubt," said Fry LJ.
" the word '
appurtenances' is not apt for the creation of a new right,
"
and the word ' appurtenant' is not apt to describe a right which
had
" never previously existed ". But, he continued, "
appurtenant" had
long been held " to admit of a
secondary meaning and as equivalent in
" that case to '
usually occupied' ". Thomas v. Owen, 20 QBD 225,
231-2. The draftsman might have had this passage in mind. The
words
are totally inadequate to create or define or to pass a
complex of an-
cillary right which at the time of the order had no
definition and, with
only some possible exceptions, no existence.
So, by
whichever route the respondents attempt to go, I find that they
fail
in the contention that the compulsory purchase order secures
them the rights
which they require. I must mention, in conclusion,
two arguments.
As the
second quotation I have made from the judgment of the
Court of
Appeal shows, that court took the view that the necessity of
the
ancillary rights claimed was established by a winding of fact
of the
inspector. I do not so read his report. He accepted
the argument put
before him that the rights could pass to the
purchaser under the Rule
and under section 62 (u.s.). He
accepted that the rights had not been
exercised. He considered
that one could look " to the common inten-
tion of the
parties " and that when the relation of
vendor-purchaser
between the parties exists they must be deemed
to have intended that
those rights would pass. In any event
they would pass under section 62
so long as the right words were
put into the notice to treat. It was in
this context, which (as
is really now accepted) was not maintainable in
law, that he
wrote " it is obvious that the rights claimed are necessary
"
for the reasonable enjoyment of the maisonettes". I do not
regard
this finding as going beyond the estiblishment of a set of
facts which, in
his opinion, might bring in the Rule and secton
62.
The
learned inspector, in this followed by the Court of Appeal,
held
that the rights, though not enjoyed or exercised, existed " in
a latent
" form ". But this, with respect, is either
a contradiction in terms, or a
very great, and indeterminate,
extension of both Rule and section. Each
is based on enjoyment
and exercise: neither is warrant for an emergence
—Athene-like—of
rights fully defined, on a unilateral act by the
acquiring
authority.
In my
opininon, therefore, since the Minister when confirming the order
did
so upon a hypothesis, as to the ancillary rights, which turns out not
to
be well founded, the order must be quashed.
I
therefore find it unnecessary to decide whether, if there is power
under
the Housing Act 1957, to require new rights to be created,
such new rights
must be specified in the compulsory purchase
order. While I incline to
think that in the interest of fairness
and justice they should be, I wish to
cast no doubt upon what I
understand is accepted procedure, namely, that
such existing legal
rights (e.g., easements) as go with land being acquired or
are on
the title to that land need not be so specified.
I
would allow the appeal and restore the order of Forbes J. quashing
the
order. The respondents must pay the costs of the appellants in
this House
and in the Court of Appeal.
8
Lord Edmund-Davies
MY LORDS,
These
conjoined appeals relate to applications by the appellants to
quash
The London Borough of Camden (Centre Point Residential
Accommodation)
Compulsory Purchase Order 1972, made by the Council
of the London
Borough of Camden (" Camden ") on
September 12th 1972, and confirmed,
after modification, on August
30th 1974 by the Secretary of State for the
Environment. The
applications were made under paragraph 15(1) of the
First Schedule
to the Acquisition of Land (Authorisation Procedure) Act
1946,
which was incorporated into the Housing Act 1957 by section 97(1)
and
Schedule 7 thereto.
The first
appellants (" Sovmots ") hold a lease for 150 years from
Septem-
ber 29th 1960 of the Centre Point site granted to them by
the Greater London
Council, and the second appellants ("
Brompton") an underlease for 45
years from September 29th
1973 of the residential portion of the vast build-
ing erected by
Sovmots on the site and completed in November 1966. Each
asserted
that " the authorisation granted by the compulsory purchase
order
" is not empowered to be granted ", and applied
for the order to be quashed.
Forbes J. acceded to their
applications, but the Court of Appeal rejected
them. They now
appeal to your Lordships' House for the judgment of
Forbes J. to
be restored.
If Camden
was not empowered to make the compulsory purchase order
("
the C.P.O."), it is common ground that the Secretary of State
had no
right to confirm it, either in its original form or as
modified by him in
the light of the report rendered after a
lengthy public inquiry presided
over by Mr. Boydell. Q.C., and
that it must be quashed. It follows that
Mr. Browne-Wilkinson was
right in stressing that the primary question for
determination now
is whether the appellants have established that the
Secretary of
State was wrong in law when he proceeded to confirm the
C.P.O. "
My Lords,
it appears that Camden erred in three respects in making
the
C.P.O. First, they paid insufficient attention to the legal
problems
inherent in the compulsory acquisition of a unique type
of property. This
was far from being an ordinary compulsory
purchase project. Camden
were not contemplating the acquisition of
houses or a block of flats or
of some independently occupied flats
in a block, but of 36 maisonettes
within the outer shell of a
gigantic building whose internal construction
was elaborately
interlocked, and regarding which the inspector reported
(para.
135):
"
Centre Point was conceived as a complex suitable for a single
"
office user with a need of showroom space. It seems clear that
"
from the outset there were misgivings about the maisonettes. They
"
were an embarrassment, but they were part of the planning permis-
"
sion package. The idea therefore developed, and was fostered, that
"
they should be pieds-a-terre for the offices' directors and
executives ".
The second
point of importance which Camden seemingly failed to regard
as
legally significant is that, even up to the last day of the inquiry
(February
8th 1974), Brompton, who had become underlessees of the
maisonettes in
the preceding November, had not let any of them and
that the whole of
the vast Centre Point building had throughout
remained unoccupied. The
third error was the authority's failure
to appreciate the basic difference
between the consequences
flowing from the compulsory acquisition of pro-
perty and those
which follow when parties have agreed the terms upon
which the
title to landed property is conveyed.
The unique
and interlocking structure of Centre Point has been described
by
my noble and learned friend on the Woolsack and need not now
be
repeated. The legal implications of the fact that the entire
premises were
unoccupied will emerge later. But what must not be
deferred is consideration
of the legal consequences flowing from
the making of a C.P.Q. in such
9
circumstances.
It was exemplified by the manner in which Camden through-
out
dealt with the second of the five questions (conveniently set
out by
Browne L.J. at [1976] 3 W.L.R. 605G) which have been
canvassed. Although
Forbes J. described is as a " subsidiary
contention" ([1976] 2 W.L.R. 78B),
it became the primary
question in your Lordships' House, and rightly so, for,
if
answered in a manner adverse to the respondents' submissions, it
is
conclusive of the proper outcome of these appeals. The Court of
Appeal
found it " the most difficult question in this case "
(ibid, 609F), but it can at
least be simply stated, viz.
was Camden empowered to acquire, in addition
to the 36
maisonettes, rights over and in respect of other parts of
Centre
Point without which the maisonettes could not be used as
housing accom-
modation? If that question demands a negative
answer, the C.P.O. must be
quashed, for the only power conferred
on a local authority by section 92(1)
of the Housing Act 1957 to
acquire "houses" is in order to "provide
housing
accommodation ".
It is as
clear as it can be that for a long time Camden were under
the
delusion that the question had to be answered in the
affirmative because the
acquisition of such physical parts
of Centre Point as were specified in the
C.P.O. would
automatically carry with it rights over other parts certainly
no
less than those passing under a conveyance voluntarily entered
into
between vendor and purchaser. Thus it was that, doubts having
arisen during
Mr. Boydell's inquiry as to what rights Camden were
contending for, at
some stage after they had closed their case
Camden produced document
C.B.C. 2A, which must be set out in full:
" A.
The London Borough of Camden will acquire the following
"
rights pursuant to the first rule Wheeldon v. Burrows
(1879) 12 Ch.
" D. 31 and section 62(2) of the Law of
Property Act 1925.
" (1)
A right (in case of emergency only and for no other purpose
"
whatsoever) for the Council, their tenants and occupiers of the
"
acquired premises to use the staircase below podium level
"
at the north end of the demised premises.
" (2)
A right in common with the owners and occupiers of the
"
remainder of the building to use the goods lift (when operat-
"
ing) for the purpose only of removing rubbish from the
"
acquired premises and for no other purpose whatsoever.
" (3)
A right of support from the building below podium level and
"
from the columns supporting the residential block.
" (4)
A right of free passage or running of water, soil, electricity,
"gas,
and other services through the pipes, wires, and cables
"
serving the acquired premises.
" (5)
A right of access by means of the outside of the building
"
for purposes of window cleaning, maintenance, and repair.
" (6) All other such rights as are within the said rule and section."
" B.
The London Borough of Camden will reserve in the conveyance
"
the following rights in favour of the tenants or occupiers of the
re-
mainder of the building:
" (1)
A right (in case of emergency only and for no other purpose
"
whatsoever) for the tenants and occupiers of the remainder of
"
the building to use the staircase at the south end of the build-
"
ing below podium level.
" (2) A right of shelter from the acquired premises.
" (3)
Such other rights as are within the second Rule in
" Wheeldon
v. Burrows and are not inconsistent with the pur-
"
poses of the acquisition, as may be agreed."
Although
Camden did not suggest that this document had any statutory
effect,
there can be no doubt that their case was largely based upon it,
and
that it was so treated by the Secretary of State. Furthermore,
although this
House was told that at some stage during the Court
of Appeal hearing both
10
respondents
abandoned reliance upon Wheeldon v. Burrows and section
62
of the Law of Property Act 1925, during the hearing before your
Lordships
considerable reliance nevertheless appeared to be still
placed upon them.
Nothing could be more impermissible. The line of
cases to which Wheeldon
v. Burrows belongs are all
illustrations of right resulting from the rule
against derogation
from grant, which Younger L.J. once described as "a
"
principle which merely embodies in a legal maxim a rule of common
"
honesty " (Harmer v. Jumbil (Nigeria) Tin Areas Ltd. [1921]
1 Ch. 200, at
225). Surprising though it may appear, it seems
necessary to stress that
Wheeldon v. Burrows posed
the question as to what rights impliedly pass
on a conveyance
between vendor and purchaser, and to quote once more the
classic
words of Thesiger L.J. (at p. 49):
"...
two propositions may be stated as what I may call the general
"
rules governing cases of this kind. The first of these rules is that
on
" the grant by the owner of a tenement of part of that
tenement as it is
" then used and enjoyed, there will pass to
the grantee all those con-
" tinuous and apparent easements
(by which, of course, I mean quasi
" easements), or,
in other words, all those easements which are necessary
" to
the reasonable enjoyment of the property granted, and which have
"
been and are at the time of the grant used by the owners of the
entirety
" for the benefit of the part granted. The second
proposition is that,
" if the grantor intends to reserve any
right over the tenement granted,
" it is his duty to reserve
it expressly in the grant."
The basis
of such propositions is, as Lord Parker of Waddington stressed
in
Pwllbach Colliery Co. Ltd. v. Woodman [1915] A.C. 634,
at 646, that,
" The law will readily imply the grant or
reservation of such easements as
" may be necessary to give
effect to the common intention of the parties to
" a grant of
real property ". But there is no common intention between
an
acquiring authority and the party whose property is
compulsorily taken from
him, and the very basis of implied grants
of easements is accordingly absent.
Furthermore, the implication,
where open to be made, extends only to " con-
" tinuous
and apparent easements... necessary to the reasonable enjoyment
"
of the property granted, and which have been and are at the time of
the grant
" used by the owners of the entirety ...",
whereas few of the rights claimed by
the respondents were "
apparent " and none of them had ever been " used ".
I
have to say that the inspector was therefore wrong in reporting
that,
"... one cannot read a compulsory purchase order as a
conveyance; but
" what is beyond doubt is that the ordinary
conveyancing rules apply to a
" conveyance subsequent to a
compulsory purchase order ... so the principle
" behind
Wheeldon v. Burrows . . . has full application to the
situation ".
The Court of Appeal, recognizing that no
question of common intention was
involved, thought it pertinent to
consider what was Camden's intention in
making the C.P.O.
(ante, at 6I3G), and concluded that " Camden must have
"
intended to acquire the rights here in question, without which it
would be
" impossible for the maisonettes to be used as
houses ". But, it being un-
challenged that Camden sought
thereby to provide housing accommodation,
it is immaterial to
explore what rights they had it in mind (and therefore
"
intended ") to acquire when they made the C.P.O.
Then what
of section 62 of the Law of Property Act 1925? The section
provides
that, unless a contrary intention appears in a conveyance of land,
it
will be deemed to include and convey with the land all "
easements, rights
" and advantages whatsover, appertaining to
or reputed to appertain to the
" land, or any part thereof,
or, at the time of conveyance . . . enjoyed with,
" or
reputed or known as part or parcel of or appurtenant to the land or
"
any part thereof". But the section cannot operate unless there
has been
some diversity of ownership or occupation of the
quasi-dominant and quasi-
servient tenements prior to the
conveyance ; Long. v. Gowlett [1923] 2 Ch.
177. It
is true that in Broomfield v. Williams [1897] 1
Ch. 602 the contrary
was held in the case of a claim to light,
but, as Megarry and Wade point
out (Real Property, 4th Ed..
838), " This easement is an exception to many
" rules ".
The inspector was thus in error in reporting, in the circumstances
11
of this
case, that, " at the conveyancing stage the normal
rules—including
" section 62—apply ".
The
respondents having ultimately recognised that they cannot rely
upon
either Wheeldon v. Burrows or section 62 for
the purpose of acquiring
the C.B.C. 2A rights (regarding which the
inspector reported that " Camden
" would have to acquire
them before occupation of the maisonettes could
" be enjoyed
") upon what other basis can they now be claimed? It
was
submitted that three different routes were available to
the respondents, and,
although at some points they overlap,
something must be said about each
of them: —
Route
1. Section 96 of the Housing Act 1957 empowers a local
authority
" (a) to acquire any land, including any
houses or buildings thereon, as a
" site for the erection of
houses '"', and section 189(1) provides that " ' land '
"
includes any right over land ". Therefore, submit the
respondents, Camden
is empowered to purchase compulsorily not only
the corporeal hereditaments
specified in the C.P.O. as modified
but also the incorporeal hereditaments
set out in C.B.C. 2A.
In my
judgment, this is not so. When the C.P.O. was made in respect
of
the maisonettes, there existed no " rights " over the rest
of Centre Point
and no underlease to Brompton. Although not
accepted by the Court of
Appeal (ante. pp. 610H to 611H), it is
established that, as Forbes J. said
(ante, at p. 84E),
" In
the absence of any peculiar powers, conferred by the special
"
Act, the Lands Clauses Consolidation Act 1845 does not empower
"
a statutory authority to acquire compulsorily ... a mere easement
"
over land; the whole land in solido must be acquired ....
There
" is nothing in [the section 189(1) definition of
'land'] which appears
" to me to require a departure from the
general rule . . .".
Nevertheless,
the Court of Appeal found " convincing " (p. 609H) the
reason
advanced to the contrary by the inspector that, by its
section 189(1) definition,
" Parliament's intention was
obviously that larger quantities of land beyond
" that
necesarily required should not be taken ". The appellants have
through-
out stressed that Camden were seeking both to create
new rights over the
rest of Centre Point and promptly to
acquire them. But the inspector found
that
"...
the rights which Camden seeks to acquire are not in reality new
"
rights created by the order for the first time. These were all
rights
" which in effect existed in a latent form to benefit
one part of the
" building vis-a-vis another part. Each of
the rights set out in Part A
" of C.B.C. 2A already existed
and could have been enjoyed ... by
" whomever the maisonettes
were occupied ".
If I may
be permitted to say so of an inspector whose report is a model
of
clarity and care, I find that as startling a proposition as Mr.
Boydell said
he found the contrary proposition. At the making of
the C.P.O., in truth
there existed stairs which could be climbed,
drainage pipes which could
be used, and lifts which could be made
operable. But there existed no
easements in favour of the empty
maisonettes, and not even quasi easements,
and yet it is said that
" rights over land " already existed in a latent form
and
could therefore be acquired. No authority for the proposition was
cited
and I do not think any exists; and the extent to which the
law has been
altered for the future in this respect by section 13
of the Local Government
(Miscellaneous Provisions) Act 1976, does
not call for present consideration.
In his reply Mr.
Browne-Wilkinson referred your Lordships to the decision
in Wong
v. Beaumont Property Trust Ltd. [1965] 1 QB 173, but
that
case related to an easement of necessity, and learned counsel
had been at
pains throughout to base his claim to C.B.C. 2A rights
on a wholly different
basis. In my judgment, Route 1 does not
avail the respondents.
Route
2. Section 189(1) of the Housing Act 1957 defines "house"
as
including "... (6) any part of a building which is
occupied or intended
" to be occupied as a separate dwelling
". It would therefore be surprising,
12
submitted
Mr. Browne-Wilkinson, if there were not also a power to
acquire
compulsorily over the rest of the building rights needed
for the part acquired
to be used as a separate dwelling.
Here again
one must revert to the fact that no part of the unique struc-
ture
which is Centre Point had ever been occupied by the time when
the
C.P.O. was made. When a flat in a partly occupied building is
acquired,
or if a C.P.O. relates to a block of flats, there is
probably no difficulty in
envisaging and ascertaining what rights
over other parts are necessary
for the proper enjoyment of the
part being acquired. But it is a wholly
different thing to say
that where, as here, no rights exist over other parts,
the
acquiring authority can, by the one act of including a C.P.O.,
create
them and ipso facto acquire them. In my judgment the
proposition is
unacceptable.
Route
3. Section 189(1) also provides that " ' house' includes—(a)
any
" yard, garden, outhouses and appurtenances belonging
there to or usually
" enjoyed therewith ". The
respondents submit that " appurtenances"
covers both
corporeal and incorporeal hereditaments; that an easement
can "
belong ", but not a quasi-easement; that the words "
usually enjoyed
therewith " are designed to cover quasi
easements; and that, accordingly,
when the C.P.O. was confirmed
Camden became entitled to all those " ancil-
lary rights "
over the rest of Centre Point itemised in C.B.C.2A.
In my
judgment, this submission is wrong in almost every particular.
A
right of way appurtenant to Blackacre will undoubtedly pass to
the
acquiring authority when a C.P.O. in respect of Blackacre is
confirmed.
But even if a quasi easement can be " appurtenant"
(a proposition which
Mr. Goodfellow challenged, and the accuracy
of which need not now be
determined), the " appurtenances "
here claimed, so far from being " usually
" enjoyed "
had never been enjoyed when the C.P.O. was made. Route
3
accordingly again does not avail the respondents.
For these
reasons, I hold that Camden was not empowered to acquire
under
Part V of the Housing Act 1957, any of the rights set out
in
C.B.C.2A. As they could acquire property solely in order to
provide
housing accommodation, and those rights having been found
necessary for
the maisonettes to be so used when they became
severed in ownership from
the rest of Centre Point, it follows
that the C.P.O. was invalid. It should
here be added, though
parenthetically, that the inspector nowhere
reported that the
C.B.C.2A rights were in themselves sufficient for the
statu-
tory purpose. Indeed, it emerged that Camden would need yet
further
important rights not covered by the C.P.O., such as a
right of access to
the electric meter in the Intake Room and
another to the drainage inspection
chamber, both of which are
located outside those physical parts of Centre
Point which are
comprised in the order.
In
strictness, no necessity to deal with the remaining questions
arises.
But it may be useful if I nevertheless reveal the
conclusion to which I have
come regarding the third question,
viz. Assuming that Camden had power to
acquire the rights
specified in their C.B.C.2A, must those rights be specified
in the
compulsory purchase order? None were specified, and your
Lordships
were told by learned counsel for Camden that even
C.B.C.2A was not
exhaustive and provided mere " illustrations
" of the rights which the authority
claimed passed on
confirmation. Surely nothing could be more unsatisfactory,
for the
ambit of expropriatory orders should not be open to debate, and it
is
noteworthy that section 13 of the 1976 Act (earlier referred to)
authorises
the compulsory acquisition only of " such new
rights over land as are
" specified in the order ". But
the question arising under the present law is
not whether they
ought to be specified, but whether they must be. The Court
of
Appeal answered the question in the negative, but I have to say
respect-
fully that I prefer and adopt the observations of Forbes
J. (ante, p. 100B)
that a compulsory purchase order—
"...
is a unilateral statement made by the acquiring authority of what
"
they desire to take from the landowner, not with his consent but
willy
" nilly. As such it should specify precisely what is
required beyond
13
" the
strictly legal easements (or profits) which are appurtenant to the
"
land described; and if it does not do so the acquiring authority
will
" be authorised to acquire nothing beyond the land
itself and such
" appurtenant rights ".
My Lords,
for these reasons I would allow these conjoined appeals and
I
concur in the order proposed by the noble and learned Lord on
the
Woolsack.
Lord Fraser of Tullybelton
MY LORDS,
I have had
the advantage of reading in draft the speech of my noble and
learned
friend, Lord Keith of Kinkel, and I agree so completely with
his
reasoning and his conclusions, that no useful purpose would be
served by
repeating them in different words.
I agree that the appeals should be allowed.
Lord Russell of Killowen
MY LORDS,
The
Housing Act enables the Authority to make a compulsory purchase
order
in respect of existing buildings for the purpose of providing
dwelling
accommodation therein. Insofar as there is attached to
the building the
subject of the order any legal easement over
other land the order will embrace
without mention any such
easement, whether its origin lies in express grant,
or in
prescription, or under Wheeldon v. Burrows, or by force
of section 62
of the Law of Property Act 1925. But this is not the
present question, which
is concerned with a situation where common
ownership of the building the
subject of the order and other
relevant land or building precludes the exist-
ence of any legal
easement in favour of the former over the latter.
The case
has been to some extent confused in its course by early reliance,
at
least by way of analogy, upon Wheeldon v. Burrows and/or
section 62 of
the Law of Property Act, a reliance which was
rightly not pursued in the
Court of Appeal nor in your Lordships'
House. In my opinion it was still
confused in this appeal by the
contents of document " C.B.C.2A ", to which
I will
return.
The
contention for the appellants that the Housing Act did not
authorise
the acquisition of a semi-detached house or of a flying
freehold (or as here
long leasehold) was abandoned. What is the
outcome of that? I take
first the question of a right of support
of the maisonette block by the subjacent
building—the legs,
podium and subjacent structure. There is no such legal
easement of
support that can last longer than Brompton's sub-lease: and it
is
I think convenient for that purpose to ignore that sub-lease. But it
is of
course plain that, as with any other flying freehold or long
leasehold such
as this, the maisonette block is wholly unfitted
for housing purposes without
such right of support. If the true
view of the Housing Act is that it author-
ises by necessary
implication the acquisition with the land or building to be
acquired
rights over other land or buildings of the owner of the former
which
rights are essential to the statutory housing purpose
of the compulsory
acquisition, then the right of support would be
acquired. At one stage in the
argument I received the impression
that counsel for the appellants was
inclined so to concede.
But if
that be right then, in any case of such a building, there seems
no
justification for excluding from the scope of a valid
compulsory purchase
order any other such right which is
truly essential to its use for the statutory
purpose--a sine
qua non. What rights are in the instant case to be regarded
14
as such is
not in fact for decision by your Lordships: and it is this
respect
that I venture to think that the document " CB.C.2A "
has led to confusion,
based as it is on matters reasonably
convenient for residential use of the
maisonette block—as
shown by the form of Brompton's sub-lease—and not
as a list
of matters sine quibus it could not be used for housing. If
called
upon to decide what rights in the instant case were thus
essential, I would
include use of the north-east staircase below
podium level through door X
as an emergency exit from the
maisonette block: for I would assume that
relevant fire
regulations would forbid use of the maisonette block as
housing
accommodation without that: if that assumption is wrong
then it is not
essential. I would include the right to use the
drainage system. I would
not include a right to use the rubbish
disposal system or the goods lift: it is
perfectly feasible to
dispose of rubbish from the maisonettes in bags and by
use of the
passenger lifts which are themselves being compulsorily
acquired.
Whether access to the electricity meter room is
essential I am not sure.
On the
whole, therefore, with all respect to those who hold a contrary
view
and who have expressed it so cogently, I am of opinion that there is
in
the Housing Act by necessary implication a power to acquire
with the
maisonette block and the passenger lifts and south
staircase and entrance
hall such rights over the remaining
property of Sovmots as are essential to
the use of the maisonette
block for housing purposes—i.e., without which it
cannot be
so used. In any given case what are those rights must be defined
by
the character of the building and the layout: they are objectively
deter-
minable and do not require to be set out in the compulsory
purchase order.
In any given case the acquisition of such rights
may be relevant to quantum
of compensation.
My voice
being a lone one in this matter I may be excused from elabora-
tion.
Similarly I may be excused, in considering that these appeals
should
be dismissed, from saying more than that I do not accept
either of the two
further points urged by the appellant Brompton,
that the compulsory pur-
chase order and the confirmation are
vitiated by the modifications made,
or by the withdrawal from
opposition of the G.L.C., on the assurance by
Camden that Notice
to Treat would not be served in respect of the freehold
interest.
I would dismiss these appeals.
Lord Keith of Kinkel
MY LORDS,
These
appeals are concerned with the validity of a compulsory
purchase
order which on 12th September 1972 was made by the first
respondents, the
London Borough of Camden (" Camden "),
for housing purposes, in respect
of 36 residential maisonettes on
the upper floors of the Earnshaw Wing
section of the Centre Point
development in central London. The freeholder
of the development
is the Greater London Council. The first appellants,
Sovmots
Investments Ltd. (" Sovmots ") are holders of a lease of
the site
for 150 years from 29th September 1960. The second
appellants, Brompton
Securities Ltd. (" Brompton ") have
a lease from Sovmots for the 36 maison-
ettes for a period of 45
years commencing on 29th September 1973.
Following
a public local inquiry, at which Sovmots and Brompton appeared
as
objectors, the second respondent, the Secretary of State for the
Environ-
ment, confirmed the compulsory purchase order on 30th
August 1974.
Sovmots and Brompton applied to the High Court to
quash the order and
were successful before Forbes J., but on
appeal by Camden and the Secretary
of State the Court of Appeal
(Megaw, Lawton and Browne LJJ.) restored
the latter's decision to
confirm the order.
Before
Forbes J. and in the Court of Appeal both Sovmots and Brompton
took
the point that upon a proper construction of the Housing Act 1957 a
15
local
authority could not validly be authorised by the Minister to
acquire
compulsorily a horizontally divided part of a building,
excluding the under-
lying soil upon which the building stands.
Both Forbes J. and the Court of
Appeal decided this point against
them, and before your Lordships' House
that decision was
acquiesced in. The argument for Sovmots was limited to
two
questions, both of which were decided in their favour by Forbes J.
but
against them by the Court of Appeal. Brompton supported the
argument
for Sovmots upon these two questions, and also argued two
further points, to
which I shall refer later.
The two questions argued by Sovmots were :
Whether
on a true construction of the Housing Act 1957 a local
authority
may be authorised by the Minister not only to acquire
compulsorily
a corporeal hereditament, but also to compel the grant for
the
benefit of such hereditament of new rights over lands or
buildings
not authorised to be acquired? and
If the
answer to question (1) be yes, whether a compulsory purchase
order
can authorise a local authority to compel the grant of such
new
rights, even though there is no description or mention of
them in
such order?
These
questions arise in the following way. In the course of the public
local
inquiry Camden appreciated that its purpose in promoting the
compulsory
purchase order for the 36 maisonettes, namely that of
providing housing
accommodation, could not be achieved unless it
could also acquire certain
new rights over other parts of Centre
Point, but they contended that the order
as made would enable them
to acquire such rights. They put in a document
C.B.C. 2A setting
out certain ancillary rights which they claimed they would,
in the
event of the compulsory purchase being completed, acquire under
the
first rule in Wheeldon v. Burrows (1879) 12 Ch D 31 and section 62(2)
of the Law or Property Act 1925. These
rights were (1) a right for the
tenants of the maisonettes to use
a certain staircases at the northern end of
the Earnshaw Wing,
below the level of the maisonettes, as a fire escape, (2)
a right
to use for the purpose of removing rubbish from the maisonettes
a
goods lift below the level of the maisonettes, (3) a right of
support for the
maisonettes from the building below them, (4) a
right of free passage for
water, soil, electricity, gas and other
services through the pipes, lines and
cables serving the
maisonettes, and (5) a right of access by means of the
outside of
the building for purposes of window cleaning, maintenance
and
repairs.
The
inspector who conducted the public local inquiry accepted in his
report
to the Secretary of State that these rights would
automatically be carried to
Camden in the event of the compulsory
purchase being completed, and on
that basis recommended that the
order be confirmed. In confirming the
order the Secretary of State
proceeded on the same basis, and in this House
it was expressly
conceded on his behalf that, if he was mistaken in the view
that
the rights would automatically be carried to Camden, then his
decision
to confirm the order was vitiated by an error in law and
that the order ought
to be quashed.
The answer
to the first question posed requires consideration of the
relevant
provisions of the Housing Act 1957. These are—
Section 92(1):
" A
local authority may provide housing accommodation— ... (c)
"
by acquiring houses . . .".
Section 96:
" A
local authority shall have power under this Part of this Act—
"
. . . (b) to acquire houses, or buildings which may be made
suitable
" as houses, together with any lands occupied with
the houses or buildings,
" or any estate or interest in
houses or in buildings which may be made
" suitable as houses
. . .".
16
Section 97(1):
"
Land for the purposes of this Part of this Act may be acquired
"
by a local authority by agreement, or they may be authorised to
pur-
" chase land compulsorily for those purposes by the
Minister; and the
" Seventh Schedule to this Act shall apply
in relation to a compulsory
" purchase under this section."
The
Seventh Schedule incorporates the Acquisition of Land
(Authorisation
Procedure) Act 1946, and paragraph 2 of the First
Schedule to that Act
provides:
" The
compulsory purchase order shall be in the prescribed form and
shall
describe by reference to a map the land to which it applies."
Under
section 8, "' land', in relation to compulsory purchase under
any
" enactment, includes anything falling within any
definition of the expression
" in that enactment ".
Section
189(1) of the 1957 Act includes the following definitions:
"
' house ' includes—
" (a)
any yard, garden, outhouses and appurtenances belonging
"
thereto or usually enjoyed therewith, and
" (b)
for the purposes of any provisions of this Act relating to the
"
provision of housing accommodation, any part of a building
"
which is occupied or intended to be occupied as a separate
"
dwelling ".
" ' land ' includes any right over land."
The
respondents advanced three reasons which, so they contended, led
to
the conclusion that on a proper construction of the relevant
provisions of the
1957 Act a local authority was empowered, in the
event of compulsory pur-
chase for housing purposes of part of a
building in single ownership, also
to create and acquire
compulsorily ancillary rights over other parts of the
building. In
the first place it was said that such a power was conferred
by
necessary implication, in respect that without it the purpose
of Part V of the
Act, namely the provision of housing
accommodation, would be frustrated
in any situation where a local
authority required to purchase compulsorily
for that purpose part
of a building in single ownership. Without such
ancillary rights
the part acquired could not be used at all, or at least could
not
be used reasonably conveniently, as housing accommodation. In
my
opinion this argument is unsound. The definition of "
house " in section
189(1) of the Act is a wide one, but it
does not expressly cover ancillary
rights such as are here sought
to be created and acquired. Where Parliament
intends to confer
power to create and acquire compulsorily new easements
over land
it says so expressly, as in section 11 of the Water Act 1968
and
section 55(2) of the Post Office Act 1969. Compulsory purchase
enactments
are to be strictly construed, and a particular power of
compulsory acquisition,
which is not expressly conferred, can be
conferred by implication only where
the statutory provisions would
otherwise lack sensible content. That is
not the position here.
The provisions of sections 96 and 97 of the 1957
Act provide ample
scope for a local authority to carry out its function of pro-
viding
housing accommodation through the purchase of land and houses
with-
out having to resort to the compulsory acquisition of parts
of buildings in
single ownership and of ancillary rights over the
other parts of such buildings.
It was said that without power to
acquire such ancillary rights, a local
authority could never
acquire compulsorily, for example, one of a pair of
semi-detached
houses in single ownership, because no right of support would
be
available from the adjoining house, failing agreement, and that this
would
be an unreasonable result. In a simple situation such as
that one it is
unlikely that agreement would not be reached, as
being for the mutual benefit
of both parties, and the practical
consequences would in any event not be
serious. What I regard as
more important is the prospect, in a complicated
case such as the
present one, of the compulsory acquisition of rights which,
according
to the respondents' argument, need not be specified in the
com-
pulsory purchase order. While it might not be too difficult
to ascertain what
17
easements
of necessity had been created and acquired, there would be
great
difficulty as regards rights necessary for the reasonably
comfortable enjoyment
of the part of the building acquired. It was
contended by the respondents
before Forbes J. and in the Court of
Appeal that such rights would be
acquired automatically on
completion of the compulsory purchase under the
first rule in
Wheeldon v. Burrows (1879) 12 Ch D 31 and section
62(2)
of the Law of Property Act 1925. But that contention was
plainly wrong
and has been abandoned. These rules, applicable to
voluntary conveyances
of land and to contracts for the sale of
land, have no place in compulsory
purchase. They are founded upon
the principle that a granter may not
derogate from his grant, for
which there is no room where the acquisition
is compulsory. In the
absence of these rules such " quasi-easements " would
not
pass even on the sale of land by agreement, and I can find no
grounds
whatever for implying similar rules into the compulsory
purchase provisions
of Part V of the 1957 Act.
In my
opinion Parliament, when it passed the 1957 Act, did not have in
view
the possibility of the acquisition by local authorities for
housing
purposes of part of a building in single ownership, and in
particular
of a horizontally divided part of such a building.
Horizontally
divided ownership of a building was extremely
uncommon in England and
Wales in 1957, being practically unknown,
so it was said, outside Lincoln's
Inn. It is a conception which
gives rise to a very complicated situation as
regards the mutual
rights and obligations of the several owners. It is,
however, a
conception familiar to the law of Scotland for centuries, and
the
difficulties have there been resolved, in a mass of case law,
on the basis
of rights of common property and common interest,
rather than by reference
to the law of servitudes. In section
184(1) of the Housing (Scotland) Act
1950, which corresponds to
section 189(1) of the 1957 Act, "house" is
defined as
including a " flat " which in turn is defined as premises "
forming
" part of a building from some other part of which it
is divided horizontally ".
The absence from the 1957 Act of
any similar reference indicates that Parlia-
ment in enacting it
did not have in contemplation the acquisition of such
premises by
a local authority for housing purposes, and although the
appellants
now accept that " part of a building " on a
proper construction includes a
flat, I think it is right to infer
that Parliament did not intend to deal with the
problems raised by
horizontal severance of part of a building in single
ownership.
Then it
was contended for the respondents that Camden was empowered
to
acquire the rights set out in document C.B.C. 2A as being, in
relation to
the 36 maisonettes, " appurtenances . . . usually
enjoyed therewith " within
the meaning of these words in the
definition of " house " in section 189(1)
of the 1957
Act. I have no doubt that these words are capable of
covering
incorporeal quasi-easements, and they will do so in a
situation where the
latter have been de facto enjoyed by
the occupier of the quasi-dominant
tenement, during a period when
the quasi-servient tenement has been in
separate occupation.
Authority for this is to be found in Thomas v. Owen
(1888)
20 Q.B.D. 225 and in Hansford v. Jago [1921] 1 Ch. 322. But
that is
not the situation here. The whole of Centre Point was in
single ownership
and occupation on the date when the compulsory
purchase order was made,
which I consider to be the relevant date
for the purpose of ascertaining
the ambit of Camden's powers of
compulsory acquisition. It does not help
the respondents that
after that date but before the date of the public local
inquiry
Sovmots let the 36 Maisonettes to Brompton, upon terms which
in-
cluded the grant of rights similar to those set out in
document C.B.C. 2A.
Camden is seeking to acquire the interest of
Sovmots in the maisonettes, not
only that of Brompton. What the
words "appurtenances usually enjoyed
with " certainly do
not cover, in my view, is incorporeal rights of the nature
of
easements in favour of one part of a single tenement over
another part, which
have never existed or been enjoyed otherwise
than in favour of or by the
owner of the single tenement as such
owner. I would regard that proposition
as self-evident, and
authority for it is to be found in Bolton v. Bolton
(1879)
11 Ch. D. 968 and in Long v. Gowlett [1923]
2 Ch. 177. It was argued for
18
the
respondents that " usually enjoyed" covered facilities for
which the
physical means of enjoyment existed before acquisition,
even though they
had never actualy been used. The Earnshaw Wing
had been designed, so
it was said, in such a way that the
occupiers of the maisonettes when there
came to be any, would
necesarily make use of the facilities in question.
This argument
found favour with the Court of Appeal, but its acceptance,
In my
view, involves taking an unavoidable liberty with the language of
the
definition. That language is incapable of supporting such a
construction,
and the argument must fail.
Finally,
it was contended for the respondents that the definition of "
land "
in section 189(1) of the Act, as including " any
right over land ", was apt to
empower a local authority to
create and acquire new rights over land. There
is, however, no
authority in favour of that being the proper construction, and
the
words in their natural meaning are confined, in my view, to existing
rights
over land. I have already remarked that in other instances
where Parliament
has intended to give power for the compulsory
creation and acquisition
of new rights over land, it has clearly
expressed that intention. Indeed,
It has recently by section 13(1)
of the Local Government (Miscellaneous
Provisions) Act 1976
expressly conferred upon any local authority, which
may be
authorised by a Minister to purchase land compulsorily, power also
to
create and acquire compulsorily new rights over land. I am
therefore
unable to accept the respondent's contention. But even
if it were right, the
respondents would, in my view, fail by
reason that the rights in question
have not been specified in the
compulsory purchase order. This is the subject
matter of the
second question raised in the argument for the appellants. It
was
maintained by them that, if a new right over land is "
land " within the
meaning of section 189(1) of the 1957 Act,
such as a local authority may
be authorised to acquire
compulsorily, then it is also " land " for the purposes
of
the Acquisition of Land (Authorisation Procedure) Act 1946, and as
such
must, by virtue of paragraph 2 of the First Schedule to that
Act, be described
in the compulsory purchase order. I regard this
as clearly correct. A new
right over land is in an entirely
different position from an existing easement
enjoyed in connection
with land. A new right which the local authority
intended to
create and acquire compulsorily could plainly not be acquired
if
the intention were not expressed. The final contention for the
respondents
must therefore also fail.
Two
further questions were, as I have mentioned, argued by Brompton
but
not by Sovmots. The first related to the effect of an
agreement entered into
between Camden and the Greater London
Council, whereby the former
undertook, in the event of the latter
not opposing the compulsory purchase
order, to refrain from
acquiring the freehold of the maisonettes, it being
contended that
the existence of this agreement vitiated the confirmation of
the
order by the Secretary of State. The second was concerned with
the
effect of a modification of the compulsory purchase order made
by the
Secretary of State upon his confirming it, it being
maintained that the
modification had brought within the order land
which it would not otherwise
have covered, without the consent of
interested persons and contrary to
paragraph 5 of the First
Schedule to the Acquisition of Land (Authorisation
Procedure) Act
1946.
In view of
the conclusion I have reached upon the main question arising
in
these appeals, it is unnecessary for me to deal in detail with these
two
subsidiary points. It is sufficient for me to say that I have
not been satisfied
that Forbes J. and the Court of Appeal went
wrong in decising them against
Brompton.
For these reasons I would allow the appeals.
310042 Dd 353191 140 4/77 StS