Decision Making and Contracts

September 20th, 2013 by James Goudie KC in Decision making and Contracts

R (Nash) v Barnet LBC [2013] EWCA Civ 1004 (“Nash”) concerned whether a decision and an impending decision by Barnet Council to outsource a high proportion of its functions and services to private-sector organisations was lawful.  The judicial review challenge was brought by a local resident.  There were three grounds of challenge: non-compliance with “best value” consultation obligations; breach of the PSED; and breach of fiduciary duty to council tax payers.  A procurement challenge was not pursued. 

The challenge failed at a rolled-up hearing: [2013] EWHC 1067 (Admin), (2013) LGR 515.  The Court of Appeal dismissed the Claimant’s appeal. 

The first question was whether the claim was in time.  The Claimant sought to rely on the House of Lords decision in R (Burkett) v Hammersmith & Fulham LBC [2002] 1 WLR 1593 (“Burkett”), where outline planning permission had been preceded by a resolution approving the award subject to certain conditions, and the resolution was subject to, amongst other things, completion of a Section 106 agreement; and where property rights were affected. 

The Court of Appeal said (para 45) that the Council “was entitled to emphasize the general importance of compliance with the time limits set for judicial review proceedings, given the various public interests generally involved in public law cases”. 

The essence of the argument on behalf of the Claimant was that even if she could have raised her challenge at an earlier stage, there was no obligation on her to do so, that Burkett permitted her to raise the legal challenge at the time of the final decision to do the act, that all the Council had decided to do in 2010/2011 was to initiate a procurement process, and thereafter move on from time to time to the next stage of the process, and that the Council had not committed to awarding any contract, let alone any particular contract, until its December 2012 decision. 

The Court of Appeal, however, ruled that Burkett, properly analysed, “simply will not bear so open-ended an application”.  They agreed with the first instance Judge as follows:- 

“I do not believe that Burkett is authority for the proposition that in every situation in which a public-law decision is made at the end of a process which involves one or more previous decisions – what I will refer to as “staged decision-making” – time will run from the date of the latest decision, notwithstanding that a challenge on identical grounds could have been made to an earlier decision in the series. In my judgment it is necessary in such a case to analyse carefully the nature of the latest decision and its relationship to the earlier decision(s). I believe the true position to be as follows. If the earlier decision is no more than a preliminary, or provisional, foreshadowing of the later decision, Burkett does indeed apply so that the later, “final”, decision falls to be treated as a new decision, the grounds for challenging which “first arise” only when it is made. But if the earlier and later decisions are distinct, each addressing what are substantially different stages in a process, then it is necessary to decide which decision is in truth being challenged; if it is the earlier, then the making of the second decision does not set time running afresh. I accept that the distinction may in particular cases be subtle, but it is in my view nonetheless real and important.” 

Burkett was concerned with a merely provisional decision.  In Nash the Council was not provisionally resolving to enter any outsourcing contract at all.  What the Council was doing was actually deciding to enter into a procurement process by way of competitive dialogue.  That process then, and in accordance with the Public Contracts Regulations (“the PCR”) 2006, proceeded in stages.  Thus, in contrast with the initial resolution in Burkett, work was lawfully and foreseeably done and money was expended precisely because of such decisions.  The decisions thus had and were intended to have legal effect: not, of course, in terms of sanctioning a binding contract in terms of authorising and causing the initiation of the procurement process, with attendant inevitable heavy expenditure and significant use of time and resources.  Without such decisions, those things could not and would not have been done.  Those decisions are thus properly to be regarded as substantive.  They are not to be regarded as contingent or provisional, even though there was no guarantee at all that any outsourcing contract or contracts might ultimately result.  A failure to comply with the procedure at any stage inevitably undermines the integrity of all that follows. Accordingly, the right of action is complete immediately and cannot be improved by allowing the procedure to continue to a conclusion. Where there has been a failure to comply with the proper procedure the later award of the contract does not constitute a separate breach of duty; it is merely the final step in what has already become a flawed process. The approach adopted in Burkett can simply be transposed to a procurement challenge whether under the PCR or by way of judicial review. 

The Court of Appeal further observed that there was “nothing in fairness or certainty” such as to justify the Claimant not issuing proceedings until after the final decision.  The prior decisions had been made at public meetings, had been published and were widely known.  On the contrary, considerations of fairness and certainty “all weigh strongly in favour of the Council”.  The Court of Appeal added:-

“It is inconceivable that the Council (or the potential tenderers) would have gone down the very costly and time-consuming process of procurement and competitive dialogue had it been envisaged that a challenge on the grounds of lack of consultation on the whole strategy of outsourcing might at the very end of the day be made. That is quite different from the inherent and understood risk that the procurement process might not ultimately result in any concluded procurement contract.

 

Housing

August 5th, 2013 by Christopher Knight in Housing

Article 8 ECHR Cases

The courts continue to clarify the position following the decisions of the Supreme Court in Manchester City Council v Pinnock [2010] UKSC 45; [2011] 2 AC 104 and Hounslow London Borough Council v Powell [2011] UKSC 8; [2011] 2 AC 18 on the application of Article 8 ECHR to defend possession proceedings.

For a recent, standard, application of the cases see: Secretary of State for Transport v Blake (unrep., ChD, 31 July 2013).

In R (CN) v Lewisham London Borough Council [2013] EWCA Civ 804 the Court had to reconsider the line of authority which held that section 3 of the Protection from Eviction Act 1977 did not apply to temporary accommodation provided by a local authority to avoid homelessness and that Article 8 required no different approach: Mohammed v Manek (1995) 27 HLR 439; Desnousse v Newham London Borough Council [2006] EWCA Civ 547; [2006] QB 831. The Court held that they remained good law and binding authority. Neither case was inconsistent with Patel v Pirabakaran [2006] EWCA Civ 685; [2006] 1 WLR 3112 (about the application of the 1977 Act to mixed residential and business lettings), nor was Pinnock authority for requiring proceedings in all cases before evictions, or Powell an extension to temporary accommodation. The courts could assess proportionality on judicial review; that was sufficient protection for Article 8 and Parliament had a wide margin of appreciation in the area. Possession proceedings were not required before a person could be evicted from temporary accommodation held under licence by sections 188 or 190(2) of the 1996 Act.

The European Court of Human Rights has again applied the Article 8 right to a home in the context of proceedings between private parties. In Brezic v Croatia (App. No. 7177/10) the applicant had been the possessor of a flat in a building owned by a privatised enterprise. The company brought possession proceedings, successfully, and the national courts did not consider the issue of proportionality of granting possession. The Court found a breach of Article 8 as the flat was her home and the grant of possession was an interference with it. Because there had been no consideration of proportionality the interference could not be held to be necessary and there was a breach of Article 8.

In Malik v Fassenfelt [2013] EWCA Civ 798 the claimant sought a possession order against persons said to be squatting on his land. The County Court accepted the argument of the defendants that Article 8 applied, even though the case was an entirely private one, but held that the order was proportionate. On appeal, the claimant did not pursue the Article 8 issue, and so a majority of the Court of Appeal (Toulson and Lloyd LJJ) assumed that Article 8 was engaged but upheld the order for possession as proportionate and that only in exceptional circumstances would eviction of squatters be disproportionate. By contrast, Ward LJ expressly considered the Article 8 issue, and held that it did apply to cases involving private landlords, so that the rule in McPhail v Persons Unknown [1973] Ch 447 that there was no jurisdiction to extend time to a trespasser, could no longer apply.

Homelessness

A reviewing officer was lawfully entitled to conclude that a heroin addict with depression who had previously been imprisoned was not vulnerable within the meaning of section 189(1)(c) of the 1996 Act, article 5(3) of the Homelessness (Priority Need for Accommodation) England Order 2002 or R v Camden London Borough Council ex p Pereira (1999) 31 HLR 317, such as to require priority need for housing: Johnson v Solihull Metropolitan Borough Council (unrep., CA, 6 June 2013).

Section 204(2A) of the 1996 Act requires there to be good reasons for delay in bringing an appeal against a refusal of housing outside of the 21 day time limit. Lewis J confirmed that good reasons is an issue of fact, and that the power to extend time was linked to the reasons for the delay, not the merits per se, was not a breach of Article 6 ECHR: Peake v Hackney London Borough Council (unrep., QBD, 11 July 2013).

However, the court should not strike out a section 204 appeal as being out of time at a directions hearing when the claimant had not had any notice that such an application would be need and was not prepared to answer it: Dawkins v Central Bedfordshire Council (unrep., QBD, 4 July 2013). In addition, the factual basis of the refusal to extend time was mistaken. The case was remitted for reconsideration.

A more procedural point was raised in Johnson v Lord Mayor & Citizens of Westminster [2013] EWCA Civ 773, in which the Court of Appeal held that it did not have jurisdiction to entertain an application for an order that a local authority provide temporary accommodation pending an application for permission to appeal to the Court of Appeal against a County Court decision that he was intentionally homeless. Judicial review was the appropriate route.

Possession

Where a possession order is sought against a secure tenant, there must be suitable alternative accommodation available for the tenant when the order takes effect: section 84(2)(c) of the Housing Act 1985. When granting an order for possession the court is not required to specify an exact property; it was permissible to set out the essential characteristics of what would be suitable and to make the order conditional upon such a property being found: Holt v Reading Borough Council [2013] EWCA Civ 641. The Court indicated that a conditional order should include liberty to apply, a time limit and provision for if no suitable accommodation is found. In cases where a tenant is particularly vulnerable or unrepresented, a conditional order may not be appropriate.

For an example of an agreement which created a secure tenancy which prevented the successful bringing of possession proceedings, see: Francis v Brent Housing Partnership Ltd [2013] EWCA Civ 912.

Housing Benefit

In R (MA) v Secretary of State for Work and Pensions [2013] EWHC 2213 (Admin) the Divisional Court declined to quash the elements of the Housing Benefit (Amendment) Regulations 2012 which imposed a reduction in eligible rent of 14% where there is one excess bedroom and 25% where there are two or more, in order to save £500m from the housing benefit budget. The Court accepted that disabled recipients of housing benefit engaged Article 14 ECHR, an instance of Thlimmenos discrimination. The relevant test at the proportionality stage was whether the measure was manifestly without reasonable foundation. There was an absence of a precise class of persons (those who need extra bedroom space by reason of disability), which could be identified in practical and objective terms and sufficiently differentiated from other groups equally in need of extra space but for other reasons. The provision of extra funding for discretionary housing payments and advice and guidance on its use could not be said to be a disproportionate approach to the difficulties which those persons faced. The measure was not manifestly without reasonable foundation. Unusually, the Court also considered that the substance of the public sector equality duty challenge was wrapped up with the justification argument, and both grounds failed as a consequence. The Court indicated that it was unacceptable that Regulations had not been brought in to remedy the illegality found in Burnip v Birmingham City Council [2012] EWCA Civ 629; [2013] PTSR 11, but on assurance that Regulations were being considered no further order was made.

The Court of Appeal has dismissed the appeal in R (Zacchaeus 2000 Trust) v Secretary of State for Work and Pensions (unrep., CA, 31 July 2013). The case concerned a challenge to the Rent Officers (Housing Benefit Functions) (Amendment) Order 2012 on the grounds that it was ultra vires the legislative housing and benefits regime, and was in breach of section 149 of the Equality Act 2010 (the public sector equality duty). The 2012 Order froze housing benefit rates since 2 April 2012 for a year, and imposed uprating by CPI from April 2013. Sullivan LJ dismissed the appeal on both grounds and upheld the judgment of Underhill J below. Elisabeth Laing QC and Christopher Knight acted pro bono for the Trust, instructed Leigh Day & Co.

Schedule 5, paragraph 14(1)(e) of the Housing Benefit Regulations 2006 excludes from account sums paid under agreements made after the occurrence of an injury. The Court of Appeal held in Lloyd v Lewisham London Borough Council [2013] EWCA Civ 923 that this did not include payments made under agreements concluded prior to the occurrence of the injury, such as payment to compensate for loss of income. Such an approach was the only rational interpretation and avoided double recovery.

Legislation

The new First-tier Tribunal (Property Chamber) has come into existence as of 1 July 2013, when it took over the jurisdictions of the Residential Property Tribunal, the Leasehold Valuation Tribunal, the Rent Tribunal, the Rent Assessment Committee, the Agricultural Land Tribunal and the Adjudicator to the Land Registry. To support the new Chamber, a new set of Rules have been issued: the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 (SI 2013/1169). They are broadly similar to the Rules of the other First-tier Chambers.

Fee levels have also been set for both the Property Chamber, and the Lands Chamber in the Upper Tribunal: First-tier Tribunal (Property Chamber) Fees Order 2013 (SI 2013/1179) and the Upper Tribunal (Lands Chamber) Fees (Amendment) Order 2013 (SI 2013/1199).

From 2014 the Local Housing Allowance will be recalculated in January of each year, uprated at the lower of the rent at the 30th percentile of listed rents or the previous year’s LHA increased by 1%: Rent Officers (Housing Benefit and Universal Credit Functions) (Amendment) Order 20123 (SI 2013/1544).

Following the accession of Croatia to the EU on 1 July 2013 – and the five year period within which Member States may restrict access to state support – a Croatian is only eligible for housing allocation or homelessness assistance if he is a worker and registered as such under a worker registration scheme: Allocation of Housing and Homelessness (Elgibility) (England) (Amendment) Regulations 2013 (SI 2013/1467).

 

Highways

July 31st, 2013 by James Goudie KC in Environment, Highways and Leisure

In Vernon Knight Associates v Cornwall Council [2013] EWCA Civ 950 the Council unsuccessfully appealed against a decision that it was liable for damage caused by floodwater escaping from one of the roads in the County when drains it had installed in the road had become blocked.  The road was known to be a high flood risk.  The Council’s system to prevent such blockages was adequate.  However, the Council’s contractor on two occasions did not follow his normal practice.  This caused the flooding. There was no adequate explanation for the failure to attend the road during exceptionally heavy rainfall.

Jackson LJ, having reviewed the authorities in relation to the liability of land owners for non-feasance in respect of natural nuisance, extracted the following principles (para 49):

“(i)        A landowner owes a measured duty in both negligence and nuisance to take reasonable steps to prevent natural occurrences on his land from causing damage to neighbouring properties. 

(ii)         In determining the content of the measured duty, the court must consider what is fair, just and reasonable as between the two neighbouring landowners. It must have regard to all the circumstances, including the extent of the foreseeable risk, the available preventive measures, the costs of such measures and the resources of both parties.

(iii)        Where the defendant is a public authority with substantial resources, the court must take into account the competing demands on those resources and the public purposes for which they are held. It may not be fair, just or reasonable to require a public authority to expend those resources on infrastructure works in order to protect a few individuals against a modest risk of property damage.”

The Council submitted it was only an adjoining owner by reason of its position as a highway authority.  Bearing in mind the many demands upon the Council’s resources, the Court should not impose unduly onerous requirements.  As to this factor, Jackson LJ said (para 57):  “… it is correct that the council is a highway authority with a large network of roads to maintain and the principal duty of preserving the safety of road users. On the other hand, precisely the same measures were needed both to protect motorists against flooded roads and to prevent flood damage occurring to adjacent properties. These measures were to check and clear the drains.

Jackson LJ said (para 58) that the point made about resources is an important one and cannot be lightly dismissed, but concluded (para 59) that, even after making due allowance for the pressures on local authorities, the duty on the Council did require it to keep the drains functioning properly.  Moreover (para 61) the availability of insurance was not a factor of any great relevance.  At para 63 Jackson LJ said:

Whilst I accept that there are limits on what can be expected from local authorities in relation to flood prevention, I do not accept that the judge applied too high a standard of care in the present case. He properly took into account all the relevant circumstances. Although he was carrying out a multifactorial assessment, he properly highlighted those factors which were particularly significant. I therefore reject the council’s first and principal ground of appeal.

 

Highways

July 22nd, 2013 by James Goudie KC in Environment, Highways and Leisure

R (Attfield) v Barnet LBC [2013] EWHC 2089 (Admin) is a judicial review of the Council’s decision to increase the charges for residents’ parking permits and visitor vouchers in Controlled Parking Zones in its area.  The claim succeeded before Lang J.  She held that the increase in charges, pursuant to s45(2)(b) of the Road Traffic Regulation Act 1984 (“the RTRA”) was unlawful, because its purpose was to generate a surplus on the Special Parking Account, maintained under Section 55 of the RTRA, beyond the monies needed to operate the parking scheme, to fund other transport expenditure, such as road repair and concessionary fares.  She rejected the Council’s argument that it was entitled to exercise its powers under s45 (such amount as the authority may prescribe) for the purpose of raising a surplus to use for any transport functions, provided that they come within the scope of s122 of the RTRA.  Lang J said, at para 59:

“The purpose of section 122 is to impose a duty on local authorities to exercise their functions under the Act in accordance with the objects set out therein. It is necessarily couched in general terms because it applies to a remarkably broad range of functions in the RTRA 1984, e.g. traffic schemes, pedestrian crossings, school crossings, street playgrounds, speed limits, bollards, traffic wardens, removal and immobilisation of vehicles, as well as different types of parking facilities. I do not consider that section 122 was intended to authorise a local authority to raise a levy on parking permit holders, pursuant to section 45(2)(b), to fund any project which met the objects set out in section 122. Such an intention is not expressly stated, nor can it properly be implied. The RTRA 1984 is not a revenue-raising or taxing statute.

Lang J concluded that the amount of the charge is limited to the amount the authority considers appropriate for the purposes of parking regulation, not for other transport purposes.  She observed, however (para 57):

“… the authority has a discretion to set charges to reflect its parking policies.  It is not restricted to levying a charge only to cover the base cost of running the schemes.”

 

Leisure

July 5th, 2013 by James Goudie KC in Environment, Highways and Leisure

What is a local authority entitled to take into account when deciding whether or not to renew a sex establishment licence for a lap dancing club?  That was the issue before the Court in Thompson v Oxford City Council [2013] EWHC 1819 (Admin).  Haddon-Cave J held that the fact that the character of an area was in the process of changing was a relevant consideration when deciding upon the appropriateness or otherwise of such a licence in accordance with Schedule 3 to the Local Government (Miscellaneous Provisions) Act 1982, as amended by Section 27 of the Policing and Crime Act 2009.

At paragraph 50 of his Judgment he summarised the general principles to be derived from the authorities regarding the licensing of sex establishments as follows:-

(1)        Local authorities are granted a very wide statutory discretion to decide whether or not a licence should be granted;

(2)        Local authorities can take into account “any strong body of feeling in the locality” which objects to the existence of a sex shop there, although this does not include moral objections to its activities;

(3)        The legislation expressly contemplates that the circumstances in which a licence has been granted or renewed may change and there can be no expectation of annual renewal;

(4)        Local authorities have “a very broad power to make an evaluative judgment” whether the grant of a licence would be inappropriate having regard to “the character of the relevant locality”: this imports “a significant evaluative power” at two levels: first, in assessing whether the grant or renewal of the licence would be “inappropriate” (a very broad and general concept); and, secondly, in assessing the character of the relevant locality, which, again, involves questions of fact and degree and local knowledge which import, at that level also, a broad power of evaluative judgment to be exercised by the local authority;

(5)        There is no radical conceptual divide between “the character of the relevant locality” and “the use to which any premises in the vicinity are put”: the former is a concept calling for “a compendious and general evaluative judgment to be made by the authority”, having regard to a range of factors which may be relevant to that question, including not least the use to which properties within the relevant locality happen to be put, the latter simply provides an additional ground for refusal if, eg, it cannot be said that it would be inappropriate to grant a licence given the general character of the locality, but the use of particular premises within the vicinity does give cause for concern viz eg a church, or primary school;

(6)        The considerations were intended by Parliament to be considerations for the local authority’s own evaluative judgment, subject only to the Court’s supervisory jurisdiction on a claim by way of judicial review.

At paragraph 68 the Judge said:-

“…  licensing decision-makers are entitled to take into account both the present and future “character” of an area. There is no reason to limit the reference to “character” only to the present character of the area. Indeed, it would make no sense to do so in the context of prospective licences which were to be granted for 12 months in the future. Prospective licences required a prospective view. The fact that an area is developing and in a continued state of change is a relevant consideration to why renewal might be inappropriate.”

 

Planning Law Update

June 26th, 2013 by Heather Emmerson in Planning and Environmental

Delaney v Secretary of State for Communities and Local Government [2013] EWCA Civ 585

In this case the Court of Appeal addressed (i) whether it was a material factor in considering whether to grant temporary planning permission for a traveller site that the Council had, in breach of its statutory duty, failed to carry out an assessment of the accommodation needs of gypsies and travellers residing in its district and to prepare a strategy in respect of meeting that need;  and (ii) whether the Inspector determining the appeal had placed sufficient weight on the absence of such a strategy in consider whether to grant temporary planning permission.

Section 225 of the Housing Act 2004 requires every local authority when undertaking a review of its housing need under section 8 of the Housing Act 1985 to carry out an assessment of the accommodation needs of gypsies and travellers residing in their district. The Appellant, a person of traveller status who sought planning permission for a site in the Green Belt, argued that given the Council had failed to fulfil its statutory duty to review the accommodation needs of gypsies and travellers and prepare a strategy, this should be accorded substantial weight in considering whether to grant planning permission. It was argued that the Appellant should not be in a worse position because of the Council’s breach of statutory duty than if it had complied with it.

The Court of Appeal held that the Inspector had correctly taken into account the Council’s breach of duty and the consequences for the Appellant and had placed significant weight on the breach of statutory duty.  However, the Inspector had been entitled to hold that this matter did not outweigh other material considerations going against the grant of temporary planning permission in relation to a site in the green belt. The Court of Appeal concluded that the Inspector had weighed up the varying factors and clearly expressed his reasons as to why a further period of occupation of the site would perpetuate harm to the green belt for an unacceptable length of time and this was not outweighed by other material considerations.

 

Planning Law Update

June 26th, 2013 by Heather Emmerson in Planning and Environmental

Telford & Wrekin Borough Council (and others) v Secretary of State for Communities and Local Government (and others) [2013] EWHC 1638 (Admin)

This decision of the High Court addressed i) the correct interpretation of the sequential test policies contained in the National Planning Policy Framework (NPPF) and ii) the extent to which planning obligations agreed between a developer and local planning authority based on pooled costs met the test of necessity in regulation 122 of the CIL Regulations 2010.

A developer applied for planning permission to construct a food store at a site out of the town centre. Following non-determination of this application by the Council, planning permission was granted by an inspector on appeal. A rival developer had applied for planning permission to construct a food store on an alternative out of town site. The planning authority and rival developer challenged the grant of planning permission under section 288 of the Town and Country Planning Act 1990.

Interpretation of the sequential test

The principal ground of challenge was that the Inspector had erred in interpreting and applying the provisions of the NPPF relating to sequential assessment. Paragraphs 24 and 27 of the NPPF provide that local planning authorities should apply a sequential test to planning applications for main town centre uses that are not in an existing town centre and are not in accordance with an up to date local plan. The NPPF provides that preference is to be given to sites in the town centre over sites at the edge of town or out of town, and when considering edge of centre or out of centre proposals, preference should be given to sites that are well connected to the town centre. The Inspector concluded that neither of the competing sites (both of which were out of centre sites) had preference over the other and that customers in respect of both sites would be unlikely to walk into the town centre. The claimants argued that the application of the sequential test must always result in a finding that one site is sequentially superior to the other and the Inspector had erred in concluding that the sites were equivalent.

In addressing this ground of challenge Mr Justice Turner referred to the Supreme Court’s decision in Tesco Stores v Dundee City Council [2012] UKSC 13 which held that it was a matter for the courts to determine the correct interpretation of planning policies, although planning policy was not to be interpreted as if it were a statute. He held that the application of the sequential test did not require a judgment to be reached that one site was sequentially superior to the other and it was open to a decision maker to find that one or more sites were sequentially equal. First, there was nothing in the NPPF or guidance which precluded this result. Secondly, a decision maker retained some flexibility under the policy and there was no reason to interpret the policy in a narrow and prescriptive sense. Thirdly, there were circumstances in which it would be artificial for a decision maker to be compelled to declare one site the victor. Sequential preference was not simply a question of which site was geographically closer to the town centre but required an assessment of all relevant factors including accessibility (see [27] – [32]). There was therefore no basis for impugning the interpretation of the NPPF, nor was there any basis for criticising the application of the policy to the facts of the case.

Pooled costs and planning obligations

A planning obligation had been agreed between the developer and planning authority relating to off-site highway works which would be required as a result of the proposed development. These costs had been calculated by the planning authority by considering the need for highway works generated by all the planning applications before it at that time and distributing these costs between the different developments on a pro rata basis (having regard to the need for modification at particular highway junctions). The costs were therefore calculated on the basis that all the developments would be completed. The Inspector considered that the pooled costs did not reflect reality, but rather proceeded on a false basis given that both food stores would not be developed. Mr Justice Turner held that whilst the method of apportioning pooled costs between proposed developments could in an appropriate case satisfy the requirements of Regulation 122(a), on the facts of this case the Inspector was entitled to find that pooled costs apportioned to the developers did not reflect the reality of future development and in these circumstances the Inspector was entitled to conclude that she could not be satisfied that the contributions were necessary within the meaning of Regulation 122(a).

Jonathan Moffett of 11KBW was instructed by the Secretary of State.

 

Highways

June 19th, 2013 by James Goudie KC in Environment, Highways and Leisure

In Cusack v Harow LBC [2013] UKSC 40 the Supreme Court has held, reversing the Court of Appeal, that the Council as highway authority was not required to pay compensation for the erection of barriers preventing a property owner accessing a public highway from his property.  The Council had power to proceed under Section 80, which does not provide for compensation, rather than Section 66(2) of the Highways Act 1980 (“HA 1980”), which does provide for compensation.  The Supreme Court observed that, albeit the owner of a property adjoining a highway has a common law right of access to the highway, without restriction, from any part of his or her property, that right has been greatly limited by statutory provisions and there is no general right to compensation when action is taken to restrict a property owner’s right of access to an adjoining highway.

Canons of statutory construction, including the principle that a specific statutory provision excludes the application of an inconsistent and more general statutory provision, have a valuable role to play as guidelines embodying logic or common sense.  However, the distinction between general and specific statutory provisions was of no assistance in this case because neither Section 66(2) nor Section 80 of HA 1980  could be regarded as more specific or less general then the other.  HA 1980 is a consolidating statute and is the result of a complex history extending over more than 130 years. It contains a variety of overlapping and sometimes inconsistent powers. The Council was entitled to rely on the clear wording of Section 80 in order to erect the barriers. It did not matter that the Council could use Section 66(2) to achieve the same objective. However, a highway authority’s use of Section 80 could be challenged if, for example, it circumvented the specific prohibitions of the use of the power conferred by Section 66(2).

The Human Rights Act 1998 did not preclude the Council from relying on Section 80 because it involved no breach of the right to peaceful enjoyment of property under Article 1 of the First Protocol to the ECHR (“A1P1”).  The erection of the barriers would be a control of the use of property, not a deprivation of property. The case concerned land development and town planning, in relation to which the State enjoys a wide margin of appreciation. The issue of the proportionality of the interference with A1P1 rights requires a broad judgment as to where a fair balance lies between competing general and individual interests.  The mere fact that another statutory route was available to the Council and that it required the payment of compensation did not itself lead to the conclusion that the Council’s reliance on Section 80 was disproportionate. There is no general rule under A1P1 that, where the State seeks to control the use of property and could do so under two different provisions which have different consequences in terms of compensation, it is obliged to use the provision which carries some (or greater) compensation.

 

Leisure

June 18th, 2013 by James Goudie KC in Environment, Highways and Leisure

Section 15(4) of the Commons Act 2006 (“CA 2006”), in relation to registration of town and village greens (“TVG”), is compatible with the right to peaceful enjoyment of possessions pursuant to Article 1 of Protocol 1 to the ECHR (A1P1).  So the Court of Appeal has held in R (Newhaven Port and Properties Ltd) v SoS for DEFRA, East Sussex County Council and Newhaven Town Council [2013] EWCA Civ 673. The Port did not argue that the TVG scheme as a whole is incompatible with A1P1. It accepted that that argument was barred by Oxfordshire County Council v Oxford City Council [2006] 2 AC 674.  The challenge was to Section 15(4) of CA 2006, which applies (broadly) where (a) a significant number of the inhabitants of any locality indulged “as of right” in lawful sports and pastimes on the land for a period of at least 20 years, (b) they ceased to do so before the time of the application but before the commencement of Section 15, and (c) the application is made within the period of five years beginning with the cessation referred to in paragraph (b). By Section 15(1) any person may apply to the commons registration authority to register land to which Part 1 of CA 2006 applies in a case where subsection (2), (3) or (4) applies.

The Port argued that the effect of Section 15 (4) was to deprive it of the statutory defence by which it could have defeated any application which had been made before the Section came into force, namely by demonstrating that use had not continued until the date of the application. The Port argued that in so doing Section 15 (4) is incompatible with A1P1.  It was common ground that CA 2006 (and Section 15 (4) in particular) is an interference with the Port’s peaceful enjoyment of its possessions because it significantly restricts what activities the owner can carry out on the registered land. Thus A1P1 is engaged. It was also common ground that the jurisprudence of the European Court of Human Rights has established that A1P1 involves three distinct rules: the general principle of the peaceful enjoyment of possessions; a rule against deprivation of property, and right on the part of states to control the use of property in the general interest but subject to the striking of a fair balance between that interest and those of the property owner.  It was also common ground that registration of a TVG does not involve a deprivation of possessions, because legal title remains with the owner. This was, therefore, a case of control of use, falling within the second paragraph of A1P1. Lastly it was common ground that the interference had taken place subject to conditions provided for by law; in the sense that the law is clear and accessible. The key issues, therefore, were whether the contested legislation pursues a legitimate aim; and, if it does, whether the means by which it does so are reasonably proportionate to achieving that aim.

The Court of Appeal held that Section 15(4) does have a legitimate aim.  The key issue was that of proportionality.  The Court of Appeal held that the means by which Section 15(4) pursued the legitimate aim, including the period of grace being 5 years rather than a shorter period, are not manifestly without reasonable foundation.  It had been open to the Port to prevent the twenty years use as of right from coming into existence at all.  The Port’s bye-laws amounted to consent to the uses on which the local inhabitants relied.  If the Port had displayed the bye-laws on the quayside or the sea wall the whole problem would have been eliminated.  Moreover, all landowners have effectively been put on notice that those using their land for recreational purposes may well be asserting a public right to do so if their use of the land is more than trivial or sporadic. 

 

Litigation

June 11th, 2013 by James Goudie KC in Judicial Control, Liability and Litigation

The Civil Procedure (Amendment No.4) Rules 2013, SI 2013/1412 (L.14), in force from 1 July 2013, provide that planning judicial reviews must be brought within 6 weeks, procurement judicial reviews must be brought within the same time limits as in the Public Contracts Regulations, and that claims certified as totally without merit on the papers may not renew to an oral hearing.