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England and Wales Court of Appeal (Civil Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Stafford Flowers v Linstone Chine Management Company Ltd [2017] EWCA Civ 202 (29 March 2017) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2017/202.html Cite as: [2017] EWCA Civ 202 |
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ON APPEAL FROM
Upper Tribunal (Lands Chamber)
Mr P R Francis FRICS
[2015] UKUT 82 (LC)
Strand, London, WC2A 2LL |
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B e f o r e :
and
LORD JUSTICE SALES
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Stafford Flowers |
Appellant |
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- and - |
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Linstone Chine Management Company Limited |
Respondent |
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Stephen Jones (instructed by Scott Bailey) for the Respondent
Hearing date : 15 March 2017
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Crown Copyright ©
Lady Justice Arden :
Issue on this appeal
History of the covenant and the planning restrictions affecting the property
not to use the land or the bungalow other than as a holiday bungalow for leisure purposes only and not to occupy or allow the bungalow to be occupied during the periods from 15 November to 19 December and from 4 January to 14 February in any year.
30. In addition to the Lawful Development Certificate Appeal there has been other correspondence concerning this matter. At various times the Claimants have sent letters to the Isle of Wight Council identifying "livers in" and asking the Council to take appropriate action. There have been responses from the Council and letters from the Council to "livers in". There have been Notices served by the Council on "livers in" alleging breach or breaches of Planning Conditions. There have been questionnaires served and responses sought. In some cases responses were not sent in and fines were levied but not enforced. The history of this is set out conveniently and compactly in the Claimants chronology together with appropriate references and it is not necessary for me to refer to it further other than to say to date it appears that the Council has not taken enforcement action through to its logical conclusion. There is a letter at (A315) dated 20 November 2009 from the Council attaching its current policy on enforcement and it is clear from that and the evidence before me that the Isle of Wight Council attaches a low priority to enforcement action at [the Chine Estate and the neighbouring Brambles Chine Estate]. That is the probable explanation for its seeming inactivity. Indeed, the most recent application for Lawful Development Certificates seem to be in response to enforcement notices served (C41) and (A326).
31. Thus I conclude (a) that any occupation by any of the defendants during the out of season period would not only be prima facie a breach of covenant but also a breach of the condition attached to the Planning Permission under which the chalets were erected (b) it is unlikely that further enforcement action will be taken in the foreseeable future and that (c) any such notice will trigger a further application for Lawful Development Certificates.
84 (1) The Upper Tribunal shall (without prejudice to any concurrent jurisdiction of the court) have power from time to time, on the application of any person interested in any freehold land affected by any restriction arising under covenant or otherwise as to the user thereof or the building thereon, by order wholly or partially to discharge or modify any such restriction ... on being satisfied—
(a) that by reason of changes in the character of the property or the neighbourhood or other circumstances of the case which the Upper Tribunal may deem material, the restriction ought to be deemed obsolete; or
(aa) that in a case falling within subsection (1A) below the continued existence thereof would impede some reasonable user of the land for public or private purposes ... or, as the case may be, would unless modified so impede such user; or …
(c) that the proposed discharge or modification will not injure the persons entitled to the benefit of the restriction:
and an order discharging or modifying a restriction under this subsection may direct the applicant to pay to any person entitled to the benefit of the restriction such sum by way of consideration as the Tribunal may think it just to award …
(1A) Subsection (1) (aa) above authorises the discharge or modification of a restriction by reference to its impeding some reasonable user of land in any case in which the Upper Tribunal is satisfied that the restriction, in impeding that user, either—
(a) does not secure to persons entitled to the benefit of it any practical benefits of substantial value or advantage to them; …
and that money will be an adequate compensation for the loss or disadvantage (if any) which any such person will suffer from the discharge or modification.
(1B) In determining whether a case is one falling within subsection (1A) above, and in determining whether (in any such case or otherwise) a restriction ought to be discharged or modified, the Upper Tribunal shall take into account the development plan and any declared or ascertainable pattern for the grant or refusal of planning permissions in the relevant areas, as well as the period at which and context in which the restriction was created or imposed and any other material circumstances. …
"Livers In"
As you are aware the Court case against the livers in is still on going. We won the case to enforce the Restrictive Covenant but now the defendants have applied to the Court to have a cost determined for the buyout of the covenant. We were due to return to Court on the 4 July.
In the meantime the defendant, Mr. Flowers, has also submitted an application to the Upper Tribunal (Lands Chamber) to have the Covenant restrictions discharged. The application is only for their property but it is the opinion of our solicitor that, if this application is successful, it would mean that the covenant would no longer be enforceable on any of the bungalows on the site as similar applications would be approved by the Upper Tribunal.
UT's reasons for rejecting the application
84. In my judgment, retention of the overnight restriction is the anchor by which the nature of the site can continue to be maintained, and will ensure that it does not eventually become a housing estate for full time occupation for which it is undoubtedly most unsuited.
that the restriction would become unenforceable in respect of the other properties on Chine Estate was unfounded. It was, it was suggested, notable that [the respondent] had not advanced any argument in respect of the thin end of the wedge issue other than the expression of those concerns. The fact was that only a limited number of the units were in a similar position to the applicant (in planning terms) and therefore it would be most unlikely that the situation would ever arise where all of the units took steps to have the restriction on overnight occupancy removed. Thus, it could not be argued that the ability to avoid that potential scenario was a practical benefit of substantial value or advantage.
95…I have considerable sympathy with [Mr Hawkins'] concerns and do not accept Mr Cottle's argument that only a few (a maximum of 20) owners would follow suit. Whilst in the short term that might well be the case, I find I am altogether more persuaded by Mr Jones's arguments on the thin end of the wedge situation.
96. …
97…On the facts and merits of this particular case I am entirely satisfied that the ability of the company to impede the applicant's proposed full time use of his property constitutes a practical benefit of substantial value or advantage for all the reasons that Mr Jones set out in his closing submissions, and which it is not necessary to repeat at length here.
98 Suffice to say that despite all of Mr Cottle's arguments I am certain that, as I said above, whilst there would be unlikely to be an instant effect upon the overall character of the site, the implications of there potentially being a large number of people wanting to follow the applicant's lead are severe. I am mindful of the fact that although the applicant garnered a reasonable level of support, there was a significant majority of those who voted (116 for and 51 against) in favour of the company lodging a formal objection. Whilst that was not a majority of the total number of Members who were entitled to vote, it was significant proportion and was certainly not indicative of there being a major desire amongst owners for change.
99 Although it is clear that the Company may have difficulty in raising the required level of funding, to be in a position to move forward with its plans for tidying up the area formerly occupied by the leisure facilities, and undertake a further scheme of development (to which Mr Hawkins said similar restrictive covenants would be applied), I am satisfied that the steps he referred to in planning and designing such a scheme seem appropriate. I accept his evidence on the potential pitfalls and problems that could well arise if the application succeeds and determine therefore that the application under ground (aa) must fail.
submissions on this appeal
Appellant's submissions
These decisions [decisions applying in Jamaica] have accepted that cases may arise in which it is very difficult to say that the particular thing that the applicant wishes to do will of itself cause anyone any harm; but that harm may still come to the persons entitled to the benefit of the restriction if it were to become generally allowable to do similar things.
Respondent's submissions
Discussion
The position of the Tribunal is clear. Any application under section 84(1) must be determined upon the facts and merits of the particular case, and the Tribunal is unable to bind itself to a particular course of action in the future in a case which is not before it… It is however legitimate in considering a particular application to have regard to the scheme of covenants as a whole and to assess the importance to the beneficiaries of maintaining the integrity of the scheme. The Tribunal has frequently adopted this approach…
Insofar as this application would have the effect if granted of opening a breach in a carefully maintained and outstandingly successful scheme of development, to grant the application would in my view deprive the objectors of a substantial practical benefit, namely the assurance of the integrity of the building scheme. Furthermore I see the force of the argument that erection of this house could materially alter the context in which possible future applications would be considered.
Thin edge of the wedge
[25] The appellants said that, in considering the possible effects of future development, the tribunal applied the wrong test. As it is put in their skeleton argument:
The Tribunal should have assessed the importance to the appellants of maintaining the integrity of the building scheme (in terms of density, character and tranquillity). The Tribunal should further have considered whether the grant of the application, by opening a breach in a carefully maintained and successful scheme of development, would deprive the objectors of the substantial practical benefit of the assurance of the integrity of the scheme, and whether it could materially alter the context in which future applications would be considered.
In submission, Mr Guy Fetherstonhaugh QC referred to the "ratchet effect" that would result from a modification, in that any new proposal would be considered in the context where a modification had already been allowed. It was necessary, therefore, to look at the totality of the effects of the existing proposal and any future proposals, both in general and in relation to their specific effects.
[26] It is not in dispute that one material issue (often described as the thin end of the wedge point) may be the extent to which a proposed development, relatively innocuous in itself, may open the way to further developments that taken together will undermine the efficacy of the protection afforded by the covenants….
[27] In the present case, the tribunal clearly had this point in mind. The summary of the objectors' case referred to the argument that they would lose "the assurance of the integrity of a well-maintained and successful building scheme". The tribunal addressed the point in [25[iii]]. It was thought "extremely unlikely" that the proposed modification would lead to more than the possibility of one further unit in the close. The tribunal evidently took the view that the larger plots of no 3 and no 4 represented a special case within the close, because of their relative size and their position away from the main part of the close.
[28] I find it hard to see in what way it is said that the tribunal applied "the wrong test". He clearly took this issue into account; how he did so was a matter, not of law, but of professional judgment on the facts. His consideration could be only in general terms, since the specific effects would depend upon the nature of the particular proposal in the future, which in turn would be subject to detailed control by the planning authority and the tribunal. Furthermore, as Mr George Newsom said, the effects of the first modification might not be all one way. For example, it might be that, in the future, in resisting further development behind no 3, the objectors' case might be strengthened by the support of the occupant of a new house at the rear of no 4.
[29] To summarise, the thin end of the wedge argument is relevant, but the issues that it raises are ones of fact, not law. The tribunal considered the issue in this case. I find it impossible to say that his conclusion was irrational, so as to give rise to any possible challenge under the limited grounds available in this court.
Lord Justice Sales