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De Rothschild and Eranda Herds Ltd v Secretary of State for Transport and another

Compulsory purchase — Highways Act 1980 and Acquisition of Land Act 1981 — Appeal from dismissal by Mann J of application by appellant landowners and occupiers to quash compulsory purchase order — Before considering the merits of the appeal the court stated their view of the principles applicable to the determination of a challenge to the validity of a compulsory purchase order — Such a challenge should be based on the well-known grounds stated in Associated Provincial Picture Houses Ltd v Wednesbury Corporation and in Ashbridge Investments Ltd v Minister of Housing and Local Government — The court rejected a submission by the appellants that five special rules bearing on the onus of proof and the need for the acquiring authority to demonstrate the necessity for the acquisition had to be applied by courts considering such a challenge — It was better to avoid any reference to the onus of proof, which was more appropriate to a lis inter partes than to a public inquiry in which not only the cases put forward by the parties but also the public interest had to be taken into account — However, the draconian nature of a compulsory purchase order renders it more vulnerable to a successful challenge on Wednesbury/Ashbridge grounds unless sufficient reasons are adduced affirmatively to justify it on its merits — The Secretary of State must be satisfied that the order is justified on its merits before he can properly confirm it

The dispute
concerned the proposals of the Bedfordshire County Council for a bypass road to
relieve traffic through the town of Leighton Linslade — Appellants had put
forward four alternative schemes involving part of their land, which they were
prepared to sell at a valuation for the purpose of the bypass — The present
appeal turned on the manner in which the Secretary of State in his decision
letter had, in supporting the recommendations of his inspector, rejected the
appellants’ case — The critical sentence in the letter read ‘From the evidence
the Secretary of State does not believe that any of the suggested alternatives
has sufficient advantages or benefits which would justify its adoption in place
of the scheme as proposed by the County Council’ — This sentence was attacked
by the appellants as embodying a test which involved an error of law — They
submitted that the question was not whether the appellants’ alternatives had
advantages or benefits when compared with the county council’s proposals, but
whether the benefits of the latter so outweighed those of the former that there
was a compelling or decisive case for compulsory acquisition, any reasonable
doubt being resolved in favour of the appellants — The court accepted that if
the Secretary of State had decided the matter on the ground that the appellants
had not shown that any of their schemes were better than the council’s scheme,
his decision would be impeachable on Wednesbury grounds — However, on a fair reading
of the letter as a whole the Secretary of State was not making his decision on
that ground; he was endorsing the inspector’s conclusion that the council had
shown unequivocally that the rate proposed in the order was the best in the
public interest — ‘It could not be right to analyse and pick to pieces each
sentence of the Secretary of State’s letter as if each sentence were a
subsection in a taxing statute’ — Appeal dismissed

The following
cases are referred to in this report.

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