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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 >> Regency Villas Title Ltd & Ors v Diamond Resorts (Europe) Ltd & Anor [2017] EWCA Civ 238 (04 April 2017) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2017/238.html Cite as: [2017] 2 P &CR DG8, [2017] WLR(D) 237, [2017] Ch 516, [2017] 3 WLR 644, [2017] EWCA Civ 238 |
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Royal Courts of Justice Strand, London, WC2A 2LL Date: 4 April 2017 |
ON APPEAL FROM THE HIGH COURT OF JUSTICE
CHANCERY DIVISION
BIRMINGHAM DISTRICT REGISTRY
HH JUDGE PURLE QC, SITTING AS A DEPUTY JUDGE OF THE HIGH COURT
CASE No: A30BM219
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE KITCHIN
and
LORD JUSTICE FLOYD
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Regency Villas Title Limited George Edwards Victor Roberts The Estate of William Malcolm Ratcliffe deceased Brian Andrews (Claimants (2) to (5) suing on their own behalf and on behalf of the Regency Villas Owners' Club) |
Claimants/ Respondents |
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- and - |
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(1) Diamond Resorts (Europe) Limited (2) Diamond Resorts Broome Park Golf Limited |
Defendants/Appellants |
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Mr John Randall QC and Mr Marc Brown (instructed by Shakespeare Martineau LLP) for the Claimants/Respondents
Hearing dates: 7th and 8th March 2017
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Crown Copyright ©
Sir Geoffrey Vos, Chancellor of the High Court (delivering the judgment of the Court):
Introduction
HHJ Purle QC's judgment
"The land has the benefit of the following rights granted by a Transfer of the land in this title dated 11 November 1981 made between (1) [Gulf] (Transferor) and (2) Elham House Developments Limited (Transferee):-
"TOGETHER WITH firstly the right of way for the Transferee its successor in title its lessees and the occupiers from time to time of the property at all times with or without vehicles for all purposes in connection with the use and enjoyment of the property over and along the driveways and roadways (hereafter called "the roadways") shown coloured blue on the plan attached hereto.
AND Secondly all the right to the full and free passage of gas water soil electricity and any other services from and to the property in and through any pipes drains wires cables or other conducting media now in under or over the Transferee's [sic] adjoining land or constructed within 80 years of the date hereof.
AND thirdly the right for the Transferee its successors in title its lessees and the occupiers from time to time of the property to use the swimming pool, golf course, squash courts, tennis courts, the ground and basement floor of Broome Park Mansion House, gardens and any other sporting or recreational facilities (hereafter called "the facilities") on the Transferor's adjoining estate".
i) That there must be a dominant tenement and a servient tenement;ii) That the easement must accommodate the dominant tenement;
iii) That the dominant and servient owners must be different persons;
iv) That a right over land cannot amount to an easement unless it is capable of being the subject-matter of a grant.
i) Whether the rights are expressed in language which is too wide and vague;ii) Whether such rights would amount to rights of joint occupation or substantially deprive the park owners of proprietorship or legal possession;
iii) Whether such rights would constitute mere rights of recreation, possessing no quality of utility or benefit.
"62. … That would with respect depend upon the terms of the grant, though I can see that in the purely domestic context the court might lean towards a construction that the rights were personal. In any event, the example given by Lord Scott has no application to the present case.
63. I reject the suggestion that the rights in this case are as a matter of construction to be construed as merely personal to the parties to the 1981 Transfer. They form part of a group of rights the first two of which (rights of way and of passage) are clearly easements. Further, the rights are expressed to benefit successors and occupiers from time to time: compare Ellenborough Park at page 167. Moreover, construing the rights as purely personal would produce the unexpected consequence referred to in paragraph 29 of this judgment [that the rights would have fallen away after 24 hours on the facts of the transaction].
64. Unlike the example given by Lord Scott in Moncrieff, I am not concerned with neighbours in the purely domestic context but with a grant made by a developer for a number of timeshare owners who are able to act (as was contemplated at the time) collectively through [the Regency Villa Owners' Club]. Thus, I do not see why the Claimants could not provide their own water supply (adapting Lord Scott's example) if they needed to fill the pool, if necessary from a tanker. I see no compelling reason to construe these rights as personal, and very good reason for construing them as easements".
"use the golf course, squash courts, tennis courts, all common parts of the ground and basement floors of … Mansion House (including the swimming pool and leisure facilities therein), gardens, and any other sporting or recreational facilities thereon, whenever created, including the putting green and croquet lawn, without payment of any charge or fee for the exercise of those rights (other than for items of a consumable nature) subject to any reasonable provisions made for their regulation in the ordinary course …"
The parties' arguments
Ellenborough Park
"Although we are now anticipating to some extent the question which arises under the fourth of Dr Cheshire's conditions, it seems to us, as a matter of construction, that the use contemplated and granted was the use of the park as a garden, the proprietorship of which (and of the produce of which) remained vested in the vendors and their successors. The enjoyment contemplated was the enjoyment of the vendors' ornamental garden in its physical state as such - the right, that is to say, of walking on or over those parts provided for such purpose, that is, pathways and (subject to restrictions in the ordinary course in the interest of the grass) the lawns; to rest in or upon the seats or other places provided; and, if certain parts were set apart for particular recreations such as tennis or bowls, to use those parts for those purposes, subject again, in the ordinary course, to the provisions made for their regulation; but not to trample at will all over the park, to cut or pluck the flowers or shrubs, or to interfere in the laying out or upkeep of the park. Such use or enjoyment is, we think, a common and clearly understood conception, analogous to the use and enjoyment conferred upon members of the public, when they are open to the public, of parks or gardens such as St. James's Park, Kew Gardens or the Gardens of Lincoln's Inn Fields".
"In any case, if the proposition be well-founded, we do not think that the right to use a garden of the character with which we are concerned in this case can be called one of mere recreation and amusement, as those words were used by Baron Martin. No doubt a garden is a pleasure - on high authority, it is the purest of pleasures; but, in our judgment, it is not a right having no quality either of utility or benefit as those words should be understood. The right here in suit is, for reasons already given, one appurtenant to the surrounding houses as such, and constitutes a beneficial attribute of residence in a house as ordinarily understood. Its use for the purposes, not only of exercise and rest but also for such normal domestic purposes as were suggested in argument - for example, for taking out small children in prams or otherwise - is not fairly to be described as one of mere recreation or amusement, and is clearly beneficial to the premises to which it is attached. If Baron Martin's test is applied, the right in suit is, in point of utility, fairly analogous to a right of way passing over fields to, say, the railway station, which would be none the less a good right, even though it provided a longer route to the objective. We think therefore that the statement of Baron Martin must at least be confined to the exclusion of rights to indulge in such recreations as were in question in the case before him, horse racing or perhaps playing games, and has no application to the facts of the present case".
Construction of the grant
Can the easements for which the judge held exist in the face of the acknowledgement that there was no obligation on the defendants to maintain the facilities?
"(1) A grantor of a right of way ("the servient owner") is under no obligation to construct the way;(2) The grantee may enter the grantor's land for the purpose of making the grant of the right of way effective viz to construct a way which is suitable for the right granted to him ("the dominant owner"); see Newcomen v Coulson (1887) 5 Ch D 133, 143 per Jessel MR;
(3) Once the way exists, the servient owner is under no obligation to maintain or repair it …
(4) Similarly, the dominant owner has no obligation to maintain or repair the way, see Duncan v Louch (1845) 6 QB 904;
(5) The servient owner (who owns the land over which the way passes) can maintain and repair the way, if he chooses;
(6) The dominant owner (in whose interest it is that the way be kept in good repair) is entitled to maintain and repair the way and, if he wants the way to be kept in repair, must himself bear the cost: Taylor v Whitehead (1781) 2 Doug KB, per Lord Mansfield. He has a right to enter the servient owner's land for the purpose but only to do necessary work in a reasonable manner, see Liford's Case (1614) 11 Co Rep 46b, 52a (citing a case in the reign of Edward IV) and Jones v Pritchard [1908] 1 Ch 630, 638 per Parker J."
Was the judge right to allow an easement over future facilities or what the defendants describe as a "free-ranging easement that could expand over the years to cover sports and recreation not contemplated in 1981"?
Should the judge have unpacked the easements granted?
i) The formal Italianate gardens;ii) The 2 outdoor hard-surfaced tennis courts;
iii) The 3 squash courts;
iv) The putting green and croquet lawn;
v) The existing outdoor heated swimming pool;
vi) The 18-hole golf course;
vii) The reception, billiard room and TV room on the ground floor of the Mansion House;
viii) The restaurant, bar, gym, and sunbed and sauna area in the basement of the Mansion House; and
ix) The new indoor swimming pool that was built in the basement of the Mansion House in about 2005.
(i) The (Italianate) gardens
(ii) The 2 outdoor hard-surfaced tennis courts
(iii) The 3 squash courts
(iv) The putting green and croquet lawn
(v) The existing outdoor heated swimming pool
(vi) The 18-hole golf course
(vii) The reception, billiard room and TV room on the ground floor of the Mansion House
(viii) The restaurant, bar, gym, sunbed and sauna area in the basement of the Mansion House
(ix) The new indoor swimming pool that was built in the basement of the Mansion House in about 2005
The cheque
Summary of conclusions and the appropriate order
"use the existing golf course, squash courts, tennis courts, croquet lawn and putting green, and Italianate gardens, without payment of any charge or fee for the exercise of those rights (other than for items of a consumable nature or for services or for the use of any of the defendants' chattels) subject to any reasonable provisions made for their regulation in the ordinary course …"