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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Betterment Properties (Weymouth) Ltd v James Carthy & Company Ltd [2010] EWCA Civ 1401 (15 December 2010) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2010/1401.html Cite as: [2010] EWCA Civ 1401 |
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ON APPEAL FROM THE HIGH COURT OF JUSTICE
CHANCERY DIVISION
BRISTOL DISTRICT REGISTRY
His Honour Judge McCahill QC
Case No: 8WY00372
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE RIMER
and
LADY JUSTICE BLACK
____________________
BETTERMENT PROPERTIES (WEYMOUTH) LIMITED |
Appellant |
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- and - |
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JAMES CARTHY & COMPANY LIMITED |
Respondent |
____________________
Mr Guy Adams (instructed by Bond Pearce LLP) for the Respondent
Hearing date: 26 October 2010
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Crown Copyright ©
Lord Justice Rimer :
Introduction
JCC's land
BPL's land
Dukes Way
'38. – (1) Subject to subsection (2) below, where any person is liable under a special enactment or by reason of tenure, enclosure or prescription to maintain a highway, the Minister, in the case of a trunk road, or a local highway authority, in any other case, may agree with that person to undertake the maintenance of that highway; and where an agreement is made under this subsection the highway to which the agreement relates shall, on such date as may be specified in the agreement, become for the purposes of this Act a highway maintainable at the public expense and the liability of that person to maintain the highway shall be extinguished. ...
(3) Subject to the following provisions of this section, a local highway authority may agree with any person to undertake the maintenance of –
(a) a private carriage or occupation road which that person is willing, and has the necessary power, to dedicate as a highway; or
(b) a way which is to be constructed by that person, or by a highway authority on his behalf, and which he proposes to dedicate as a highway;
and where an agreement is made under this subsection the road or way to which the agreement relates shall, on such date as may be specified in the agreement, become for the purposes of this Act a highway maintainable at the public expense. …'
The terms of the June 1981 agreement
'(2) [Wickens] is seised in fee simple in possession (registered as proprietor with an absolute freehold title under Title No. DN 80448) of certain land situate at Gamberlake Axminster within the said County and which is shown on the plan annexed hereto and thereon edged red
(3) [Wickens] proposes to develop the said land for residential purposes and to construct (a) street(s) (hereinafter called "the Street") on the parts of the said land coloured brown on the said plan with highway drains in the positions shown by blue lines on the said plan grassed areas to be adopted pursuant to this Agreement shown coloured green on the said plan and street lamps in the positions indicated by red crosses within red circles on the said plan
(4) [Wickens] proposes to dedicate the street to the public as a highway after the construction and completion thereof in accordance with the provisions hereinafter contained
(5) The Council in consideration of the covenants by [Wickens] hereinafter contained has agreed with [Wickens] on the terms and conditions hereinafter appearing to undertake the maintenance of the street so that it should become a highway maintainable at the public expense'
'5. (a) Subject to the provisions of sub-clause (b) of this clause [Wickens] shall by notice in writing to the Council on completion of the works dedicate the street to the public as a highway and if the works shall have been completed in accordance with the provisions herein contained to the reasonable satisfaction of the Engineer he shall issue his certificate on behalf of the Council to that effect and the street shall thereupon become a highway not maintainable at the public expense
(b) [Wickens] may by notice in writing to and with the consent of the Council upon completion of any portion of the works dedicate the street or part of a street comprising that portion of the works to the public as a highway and if that portion of the works shall have been completed in accordance with the provisions herein contained to the reasonable satisfaction of the Engineer he may issue his certificate on behalf of the Council to that effect and the street or part of a street comprised in that portion of the works referred to in the said certificate shall thereupon become a highway not maintainable at public expense
6. (a) If during a period of twelve months after the date of a certificate of the Engineer referred to in Clause 5 hereof any defect or damage shall arise or become manifest in the works referred to in that certificate the same shall be made good by and at the expense of [Wickens] to the reasonable satisfaction of the Engineer who shall issue a certificate to that effect provided that if [Wickens] shall fail to make good any such defect or damage the Council may itself or by its Agents or Contractors carry out all work made necessary by any such defect or damage and [Wickens] shall pay to the Council the cost thereof as determined by the Engineer whose decision shall be final
(b) On the date of the expiry of the period of twelve months from the date of the issue of the Engineer's certificate referred to in Clause 5 hereof or if there shall be defects or damage during the period referred to in sub-clause (a) of this Clause on such later date that the Engineer's certificate shall be issued that such defects or damage have been made good and PROVIDED that any sewers constructed in the street (other than highway drains before referred to taking solely highway drainage) shall have been adopted by the appropriate authority the street or part of a street comprised in that portion of the works referred to in the said certificate shall become a highway (or highways as the case may be) maintainable at public expense'
Dedication
'I have recently heard from the Area Engineer who has advised me that the works, which are the subject of the above Section 38 agreement, were satisfactorily completed and inspected on the 28th October 1982.
The defects liability period is due to expire 12 months after this date, we would therefore have no objection to a reduction of the Bond to the sum of £3,800 for the remainder of the defects liability period.
I have asked your solicitors to inform the Bondsman.'
'… the County Engineer and Planning Officer have informed me that the defects liability period has expired and all defects have been made good. The Bond may now be cancelled and I have informed the Bondsman the Federated Insurance Company Limited of this.'
The background to the agreement
'The layout of the proposed development shall be so designed that it shall not prevent future vehicular and pedestrian access to the land to the east (OS 6387) and to the north west (OS 4693) if and when development occurs on this land.'
The 'land to the east' was the land now owned by BPL. During a consultation process following the grant of outline permission, the Council responded to concerns by the planning authority (East Devon District Council) about detailed approval by writing on 20 December 1979 that:
'From a highway point of view, I consider it most essential that this estate road is continued to the extremities of the site because obviously this would form an insoluble ransom strip at a future date.'
The judge remarked that this reflected the spirit of condition 9.
'Devon County Council are going to insist that we should take the road construction right up to our eastern boundary.'
The response of the solicitors on 15 January 1980 was that it was 'very difficult from the Conveyance plan to distinguish the exact boundary line.'
The judge's findings as to the red line
The parties' cases at the trial and the judge's conclusions
The appeal
Lady Justice Black :
Lord Justice Wilson :