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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 >> Joyce v Epsom and Ewell Borough Council [2012] EWCA Civ 1398 (30 October 2012) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2012/1398.html Cite as: [2012] EWCA Civ 1398 |
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ON APPEAL FROM GUILDFORD COUNTY COURT
HHJ REID QC
0EP01027
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE DAVIS
and
LORD JUSTICE TREACY
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MARTIN JOYCE |
Appellant |
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- and - |
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EPSOM AND EWELL BOROUGH COUNCIL |
Respondent |
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ROBIN GREEN (instructed by Epson and Ewell Borough Council) for the Respondent.
Hearing date: 17th October 2012
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Crown Copyright ©
Lord Justice Davis :
Introduction
Background facts
"This will undoubtedly affect the resale value of our property in the future. I therefore would like to acquire and will undertake to maintain some of the land which 107/109 East Street currently sits on. This will enable myself to put a garage at the end of the land to take advantage of the rear access. The acquisition of this minor amount of land will assist to offset the devaluation that will be caused to our property by the proposed development."
"The issue of a new service road to be provided at the rear of the houses fronting on to East Street has been raised by some residents. However the development as currently proposed does not make provision for this facility and the failure to provide such access is not considered to be of such a material consideration as to render the scheme unacceptable."
In the result the Planning Committee decided to proceed. As to access, it was resolved that be left for further finalisation "following the signing of a s.106 Agreement and Highways Works Agreement" and subject to conditions. It is recorded, however, that the Planning Committee agreed that officers should "look again" at some issues. This included a requirement that officers "liaise with residents of no. 111/113 East Street before the Council meeting to establish whether they would be in favour of rear access to their premises off the road around the petrol station [Kiln Lane]".
"(xi) Agree that on the disposal of the freehold title by Sainsbury's to the Council of the land at 103-109 East Street the Council shall be entitled to dispose of a section of this land to the owner of no. 111 East Street as shall be agreed between the parties hereto to achieve a reasonable space separation between the buildings at no. 111 East Street and the development PROVIDED ALWAYS that the transfer of the said piece of land contain a provision that the transferee shall enter into a Deed of Covenant with Sainsbury's providing that no development shall take place on the land transferred other than the erection of a boundary fence of not more than two metres for the benefit of the land."
(In the event, no such transfer has ever been executed. There was no evidence that Mr Holborn was aware of this Agreement and was never asked to enter into any Deed of Covenant.) Clause 1(xii) provided for the construction of a rear access over the land which approximates to the current site of the road.
The Judgment
"….If an officious bystander had asked 'Why is that road being built?' it is inconceivable that the Council would have responded 'In case at some future time the owner of 111 or 113 approaches us and asks us to sell them a right of way over it'."
"73. The classic requirements for the equity to arise are that: (i) The owner of the land (here the Council) has induced, encouraged or allowed another (here Mr Holborn) to believe that he has or will enjoy some right or benefit over the owner's property (here access to his rear land over the road). (ii) In reliance on this belief the other has acted to his detriment to the knowledge of the owner; and (iii) the owner has acted unconscionably in denying the other the expected right or benefit."
"78. The fact that in his letter of 7 October 1991 opposing the proposed development, written more than a year before the s.106 agreement, Mr Holborn stated that he would like to acquire some of the land on which 107/109 East Street stood which 'will enable myself to put a garage at the end of the land to take advantage of the rear access' did not put the Council on notice of the subsequent erection of the garage in breach of what was envisaged by the s.106 agreement. There is simply no evidence that the Council was ever made aware that Mr Holborn was erecting a garage at the rear of his property. Similarly there is no evidence that the Council was ever made aware of the laying down of any hard standing from the double gates to the garage."
"81. As to whether the Council has acted unconscionably in denying the expected right or benefit, there is no evidence as to what Mr Holborn expected beyond being able to access his back garden over the road. Mr Joyce wants something very different, a right of way for all purposes, so that he can try to obtain planning permission to redevelop the site taking advantage of a rear access over the road. Neither Mr Holborn nor Mr Joyce has, so far as the evidence goes, been prevented from using the road to obtain access. The unconscionability alleged is that the Council will not grant the right of way Mr Joyce would like.
82. In my judgment when these various elements are considered Mr Joyce has failed to make out his case in proprietary estoppel. He has established that Mr Holborn was induced to believe he would be able to gain access to the rear of his property over the road. He has established that Mr Holborn did some works in the expectation of being able to use the rear access. He has failed to establish that Mr Holborn's works were done to the knowledge of the Council. There is no evidence he is being prevented from using the road or that the Council proposes to do so. What it is refusing to do is to execute a deed of grant of an easement in favour of Mr Joyce save on specified terms. In those circumstances he has failed to establish that the Council has acted unconscionably in refusing to grant the right he seeks."
Submissions
i) The judge's finding as to lack of knowledge on the part of the Council was not justified on the evidence; and in any event, in the circumstances, it did not bear on the proper outcome of the present claim for proprietary estoppel.
ii) If necessary, there was yet further detriment, if only in that Mr Holborn desisted from his objections to the supermarket proposals in the light of the assurance as to the rear access road.
iii) The judge failed to consider unconscionability "in the round"; and in particular failed to apply the flexible approach indicated in cases such as Taylors Fashions Limited v Liverpool Victoria Trustees Co. Limited [1982] QB 133 and Gillett v Holt [2001] Ch 210. The correct question for the judge to have asked himself, submitted Mr Burns, in effect came to this: would it have been unconscionable for the Council, having encouraged Mr Holborn to think that he was getting a free right of way, to wait until he acted to his detriment in reliance on that encouragement and then resile by demanding money for the formal grant of the right? The answer, he submitted, has to be "yes".
iv) The judge was simply not justified in his assessment of unconscionability, in purportedly relying on the proposition that there was no evidence that the Council was preventing Mr Joyce from using the road or proposed to do so.
Discussion and disposition
Remedy
Conclusion
LORD JUSTICE TREACY
MASTER OF THE ROLLS