Sovmots Investments Ltd and Brompton Securities Ltd v Secretary of State for the Environment and others
(Before Lord WILBERFORCE, Lord EDMUND-DAVIES, Lord FRASER OF TULLYBELTON, Lord RUSSELL OF KILLOWEN and Lord KEITH OF KINKEL)
Compulsory purchase of 36 maisonettes in Centre Point–Question whether acquiring authority was entitled to acquire rights in respect of other parts of Centre Point without which the maisonettes could not be used for housing accommodation–No authorisation in present case either at common law or by statute for acquisition of such ancillary rights–Court of Appeal’s decision reversed by majority of four to one–Compulsory purchase order quashed
These were
combined appeals by Sovmots Investments Ltd and Brompton Securities Ltd from
the decision of the Court of Appeal, who had reversed the decision of Forbes J,
quashing a compulsory purchase order made by the London Borough of Camden in
respect of 36 maisonettes forming part of the complex known as Centre Point, St
Giles Circus, London WC1.
K F Goodfellow
QC and Brian Knight (instructed by Goodman, Derrick & Co) appeared on
behalf of Sovmots Investments Ltd; A B Dawson QC and John Furber (instructed by
Cowan, Lipson & Rumney) appeared for Brompton Securities Ltd; N C H
Browne-Wilkinson QC, Harry Woolf and Andrew Morritt (instructed by the Treasury
Solicitor) represented the Department of the Environment; and David Widdicombe
QC and Guy Roots (instructed by B H Wilson, Town Clerk, Camden) represented the
London Borough of Camden.
Compulsory purchase of 36 maisonettes in Centre Point–Question whether acquiring authority was entitled to acquire rights in respect of other parts of Centre Point without which the maisonettes could not be used for housing accommodation–No authorisation in present case either at common law or by statute for acquisition of such ancillary rights–Court of Appeal’s decision reversed by majority of four to one–Compulsory purchase order quashed
These were
combined appeals by Sovmots Investments Ltd and Brompton Securities Ltd from
the decision of the Court of Appeal, who had reversed the decision of Forbes J,
quashing a compulsory purchase order made by the London Borough of Camden in
respect of 36 maisonettes forming part of the complex known as Centre Point, St
Giles Circus, London WC1.
K F Goodfellow
QC and Brian Knight (instructed by Goodman, Derrick & Co) appeared on
behalf of Sovmots Investments Ltd; A B Dawson QC and John Furber (instructed by
Cowan, Lipson & Rumney) appeared for Brompton Securities Ltd; N C H
Browne-Wilkinson QC, Harry Woolf and Andrew Morritt (instructed by the Treasury
Solicitor) represented the Department of the Environment; and David Widdicombe
QC and Guy Roots (instructed by B H Wilson, Town Clerk, Camden) represented the
London Borough of Camden.
In his speech,
LORD WILBERFORCE said: 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 August 1
1975 quashed the order, but his decision was reversed by the Court of Appeal on
July 21 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 September 12 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 WC. The site freeholders are the Greater London Council, and
Sovmots are lessees for 150 years from September 29 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 1966-67, 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 compulsorily to acquire the residential section in order to
provide housing accommodation for people on its housing list. Centre Point
consists 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 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 maisonettes’ 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 connection 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 surface23
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 permission 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 November 23 1973,
ie after the making of the order, Sovmots entered into an underlease of the
maisonettes to Brompton. This underlease was for 45 years from September 29
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 reservations 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 public inquiry was
ordered by the Secretary of State. This was held by Mr Peter Boydell QC, as
inspector, assisted by Mr W J N Oswald FRICS. The inspector produced his report
on March 28 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.
Original Order
Order as confirmed
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 WC1. Together
with such parts of the building which are necessary for access thereto and the
maintenance thereof.
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 WC1, 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 purchase 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.
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 authority 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 ChD31 ("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 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" (loc cit p 49 per
Thesiger LJ, 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
relevant to a later argument, the words I have italicised 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
privileges, 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 ChD
968, 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 conveyance of one of the parts (eg the maisonettes), but
this separation cannot be projected back to the stage of the compulsory
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 WLR 597) which the respondents
seek to uphold:
1. 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).
2. 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 CBC 2A–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
in Wheeldon v Burrows (1879 12 ChD 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
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 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 "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 November 23 1973. This, as one would expect, contains
an extensive body of reservations and covenants consequent on the separation or
occupation. 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 rights24
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 it
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 arguments, 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 Acquisition of Land (Authorisation 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, unless by agreement, and if agreement is not
forthcoming, I know of no doctrine by which, under some rule of implication,
the power of acquisition can be extended beyond the statutory 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 consequential upon what
has been authorised–this is the well-known principle of Ashbury Railway
Carriage & Iron Co v Riche (1875) LR 7 HL 653: for a recent
application see Loweth v Minister of Housing and Local Government
(1970) 22 P & CR 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 acquire land there follow with the land
some other interests not mentioned in the authority to acquire. Expropriation
cannot take place by implication or through intention: it is authorised or not
authorised. And to see which, it is necessary to construe the authority. So is
acquisition authorised 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 tried its hand at them in the Local Government (Miscellaneous
Provisions) Act 1976, section 13–the contrast with the words relevant here is
clear.
2. The Housing
Act 1957 contains specific provision for the acquisition 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 appurtenances 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. "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 (1887) 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 ancillary rights 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.
1. 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 finding 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. He accepted that the rights had
not been exercised. He considered that one could look "to the common
intention 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 establishment of a set of facts which,
in his opinion, might bring in the rule and section 62.
2. 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 opinion,
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 (eg, 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.
Agreeing, LORD
EDMUND-DAVIES said: It appears that Camden erred in three respects in making
the CPO. 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
permission 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 8 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 property and25
those which follow when parties have agreed the terms upon which the title to
landed property is conveyed. . . .
The appellants
have throughout 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 CBC 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 CPO, 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 CBC 2A rights on a wholly different basis. . . .
I hold that
Camden was not empowered to acquire under Part V of the Housing Act 1957 any of
the rights set out in CBC 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 CPO was invalid. It should here be
added, though parenthetically, that the inspector nowhere reported that the CBC
2A rights were in themselves sufficient for the statutory purpose. Indeed, it
emerged that Camden would need yet further important rights not covered by the
CPO, 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 a
dissenting speech, LORD RUSSELL OF KILLOWEN said: . . . On the whole, 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–ie 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 determinable 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. . . .
I would
dismiss these appeals.
Agreeing with
Lord Wilberforce and Lord Edmund-Davies, LORD KEITH OF KINKEL said: . . . 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. . . .
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
Parliament 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 problem raised by horizontal severance of part of a building in
single ownership. . . .
LORD FRASER OF
TULLYBELTON expressed agreement with the speech of Lord Keith.
The appeal
was allowed, the respondents to pay the appellants’ costs in the Court of
Appeal and the House.