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Page 1 ⇓
P216/19
OUTER HOUSE, COURT OF SESSION
[2020] CSOH 16
OPINION OF LADY CARMICHAEL
In the petition of
MARK GUILD & ANOTHER
for Judicial Review
Petitioners
Petitioners: Burnet; Burness Paull LLP
Respondent: J Findlay QC; Morton Fraser
13 February 2020
Background
[1] The petitioners seek reduction of a decision of the respondent, Angus Council, to
demolish Lochside Leisure Centre, Craig O’Loch, Forfar (“the leisure centre”). The first
petitioner is a property developer who was permitted to organise an inspection and survey
of the leisure centre to assess its potential for future use. The second petitioner made an
offer to purchase the leisure centre.
[2] On 1 May 2018 the Policy and Resources Committee of the respondent considered a
report reference number 151/18 from his head of infrastructure. The report recommended
that the leisure centre be declared surplus to requirements and be demolished and the land
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2
reinstated. The report narrated that the leisure centre was no longer used following the
completion of another facility in February 2017. It included the following:
“The building had previously suffered subsidence with ongoing settlement and
whilst a number of potential opportunities have been explored the building will
ultimately need to be demolished … The building has suffered from some vandalism
since its closure and the potential to be used as a library decant has been explored
and discounted, allowing the building to be declared surplus … At this time the
proposal following demolition would be to return the areas to grass including some
realignment of the paths around the building. Any alternative uses will be reported
to the committee as appropriate… The availability of the property has been
circulated to all directorates with no alternative uses or interest being shown.”
The committee resolved to approve the recommendation to demolish the leisure centre.
[3] The first petitioner expressed concern to the respondent that it had not appreciated
the potential for continued use of the leisure centre. The chief executive of the respondent
commissioned an ad hoc review of report 151/18, with a view to reviewing the processes and
evidence that led to the recommendation and other associated matters. The chief executive
found that the evidence available was consistent with the decision-making. She was critical
of the audit trail in relation to the decision-making. She said that she would have
recommended obtaining an independent structural review, but noted that one had by the
time of her recommendations, been instructed.
[4] The respondent permitted the petitioners and others to inspect the leisure centre
with a view to making a proposal for its continued use. Various investigations followed. A
structural engineer instructed by the first petitioner carried out a non-disruptive inspection
on 4 September 2018 (“the first Millard report”). A structural engineer instructed by
chartered surveyors engaged by the respondent carried out a non-disruptive inspection on
15 October 2018. A roofing contractor carried out an inspection for the first petitioner on
16 November 2018. Each of these inspections resulted in a report. The petitioners founded
on parts of those reports in their submissions. The first petitioner’s structural engineer
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reviewed papers relating to structural inspections of the leisure centre from 1998, 2001, 2008
and 2018 and provided a further report in December in relation to his review (“the second
Millard report”).
[5] On 20 November 2018 the respondent’s Scrutiny and Audit Committee considered a
report by the respondent’s chief executive, and was provided with a copy of the internal
audit report. The minutes of the meeting record that the committee agreed to note the
contents of the internal audit review regarding the leisure centre. On 17 January 2019 the
respondent sent a letter to the petitioners and others who had expressed an interest in the
leisure centre. It included the following:
“Angus is aware that you have made contact regarding the surplus building that was
previously used as Lochside Leisure Centre.
Angus Council’s formal position, as agreed by the elected members, is that Lochside
Leisure Centre is to be demolished and the Council are in the final stages of assessing
the tenders for demolition. This process will conclude shortly and the Council
intends to formally commit to that demolition contract.
A number of parties have contacted the Council in recent days to express/ note an
interest in the building.
While Angus Council is not actively seeking offers for the building, an interested
party was previously offered the opportunity to view and assess the building and
was provided with information on the condition and running costs of the surplus
asset. As such, the Council acknowledges it has a duty to treat all parties equally and
demonstrate it has done so. Attached to this email are the relevant documents to
assist any interested party.
Accordingly, Angus Council are contacting known interested parties to make them
aware that only those parties who contacted the council previously will be given an
opportunity to inspect the building on a date and time to be confirmed shortly.
Thereafter, interested parties will have up to Noon on 30th January to submit a formal
written offer for the building, …”
[6] On 22 January 2019 the first respondent wrote a letter which was circulated to all
councillors, enclosing both Millard reports.
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4
[7] The respondent provided access to the leisure centre to the petitioners and other
parties on 23 January 2019. On 30 January 2019 the second petitioner offered to purchase the
leisure centre. On 7 February 2019 there was a meeting of the full council of the respondent.
At that meeting the respondent considered a report by its head of infrastructure in relation
to the leisure centre (“report 48/19”). It contained recommendations that the Council:
“(i) confirms that [the leisure centre] is demolished with the Common Good land
lying beneath reinstated to extend the park.
(ii) agrees that the modular building previously used as changing rooms is offered
for sale subject to removal by prospective purchasers.”
[8] Report 48/19 had not appeared on the publicly available agenda for the meeting. It
was added as an urgent item. The minutes of the meeting include this passage:
“In accordance with the provisions of Standing Order 11(2)(ii) the Provost ruled that
Report no 48/19 (including addendum) and exempt Report 49/19 were to be
considered as matters of urgency, in order that the Council could come to a decision
timeously.”
[9] Report 48/19 contained five options:
Option 1 - do nothing; leave the building as it is currently
Option 2 - demolish
Option 3 - sale via the current offer
Option 4 - sale through marketing
Option 5 - community asset transfer
It contained also the following passages:
“5.5 Given the submitted offer for the building, it is appropriate for the council to
consider the merits of such an offer alongside the steps to progress the disposal of
the building and the common good land.
5.6 The council has policy guidance on the Common Good Funds … The Local
Government (Scotland) Act 1994 s15(4) requires the Council to have regard to the
interests of the inhabitants of the areas to which the Common Good formerly related
when administering the Common Good Funds. The council is to ensure the long
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5
term sustainability of the common good fund, retention of the ownership best meets
our aspiration to ensure the community has full access to this part of the country
park for future generations. Any disposal or Community Asset Transfer will lead to
period of delays whilst the statutory processes for consultation and possible court
approval are complied with. During which period the building will incur
maintenance costs and the demolition contract cannot be awarded and no access will
be available to this area of land.
5.7 The provisions of Section 104 (disposal and use of common good property:
consultation) of the Community Empowerment Act 2015 came into force on 27 June
2018. Section 104 requires that, before taking any decision to dispose of, or change
the use of common good property, the council must publish details about the
proposal and notify certain bodies and invite those bodies to make representations in
respect of the proposal.
5.8 The decision to demolish the building pre-dates this legislation. Accordingly,
legal advice is that there is no requirement to consult on the demolition of the
building including the reinstatement of the ground and landscaping as part of the
country park.
5.9 If Members are minded to dispose of, or change the use of the Common Good
land on which the Leisure Centre is built, other than by demolition, the requirement
to consult now applies. […]
5.10 In addition there is the strong possibility that any disposal of the common good
land would require court approval in accordance with section 75 of the Local
Government (Sc) Act 1973 … For the purposes of assessing the financial implications
in this report it has been assumed that court approval will be required.”
[10] Report 48/19 went on to detail various financial considerations, including ongoing
running costs of £4,000 per month for the leisure centre, mostly by way of non-domestic
rates and insurance. That figure excluded costs arising from vandalism or other necessary
emergency repairs. It narrated that sale of the building via the current offer would bring a
capital receipt to the common good account in respect of the land, and the general fund
capital account in respect of the building. It included estimated legal costs and costs of
officer time associated with sale arising from the need to apply to the court in respect of a
sale. It narrated that costs might be incurred in respect of a sale which did not then proceed.
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[11] Paragraph 8.1 of report 48/19 is in the following terms:
“Option 2 is recommended as per Report No 151/18 and confirmed in Report No
362/18 for the reasons explained within the report. The council is to ensure the long
term sustainability of the common good fund and it is felt that Option 2 best meets
our aspiration to ensure the community has full access to this part of the country
park for future generations. Any disposal or Community Asset Transfer will lead to
a period of delays whilst the statutory processes for consultation and possible court
approval are complied with. During which period, the building will incur
maintenance costs and the demolition contract cannot be awarded and no access will
be available to this area of land.”
[12] The first petitioner avers that he became aware, because of a response to a specific
inquiry by him, that the respondent was to consider the future of the leisure centre at the
meeting of 7 February. The first petitioner avers that he made representations orally and in
writing at the meeting. A copy of his speaking note has been produced. The second
petitioner avers that he was abroad and unaware of the matter. The respondent admits that
the first respondent made oral representations, but not that he made written representations.
[13] The respondent’s members voted by a majority of 13 to 8 to accept the
recommendation that the leisure centre be demolished.
[14] The respondent’s position is that the leisure centre building does not appear on its
common good account and is not common good property. The land on which it stands is,
however, common good property. Although the petitioner placed a call on the respondent
to state why the building was not on the common good account, the petitioner did not at the
substantive hearing dispute the respondent’s position about this matter.
[15] The respondent did not move that I should sustain its first plea in law, one of
time-bar.
Joint statement of issues
[16] Parties lodged a joint statement of issues. The issues were formulated as follows:
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(1) Whether the decision was made in accordance with the procedure
requirements of the respondent’s own Standing Orders. If not, did the petitioners
suffer any prejudice as a result.
(2) Whether the decision made by the respondent required to be made under and
within the statutory requirements of section 104 of the Community Empowerment
(Scotland) Act 2015 (“the 2015 Act”).
(3) Whether the decision made by the respondent required to made under and was
within the statutory requirements of section 15(4) of the Local Government
(Scotland) Act 1994 (“the 1994 Act”).
(4) Whether the decision made by the respondent required to be made under and
was within the statutory requirements of sections 74 and 75 of the Local Government
(Scotland) Act 1973 (“the 1973 Act”).
(5) Whether the respondent took into account irrelevant considerations or failed to
take into account relevant material considerations.
(6) Whether the respondent required to give proper, adequate and intelligible
reasons for its decision and, if so, whether it did.
(7) Whether in all the circumstances the respondent’s decision was unlawful.
Summary of submissions
Petitioners
[17] The respondent failed to follow its own Standing Orders. It had not placed the item
concerning the leisure centre on the agenda, and it had not recorded in the minutes of the
meeting the special circumstances on the basis of which the provost had concluded that the
matter required urgent consideration. The respondent was entitled to consider something as
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a matter of urgency. There must be a record made in the minutes of the explanation as to
why the decision to do so had been taken. The reference to timeousness in the minute was
not an adequate explanation. The tenders for demolition would still have been valid at the
time of the respondent’s next scheduled meeting on 21 March. The urgency could not arise
from the circumstance that an offer had been made. The respondent had set a deadline of
30 January for offers, more than a week before 7 February. It was not sufficient to provide
reasons in the pleadings, as the respondent had done. The decision was in any event
unreasonable, as, even on the reasons disclosed in the pleadings, there was no urgency.
[18] The second petitioner was unable to attend the meeting at short notice. If he had
attended he would have made representations. He would have asked for the decision to be
postponed with an opportunity for the public to participate or to clarify any concerns the
respondent had about his offer. The respondent had a duty under section 15(4) of the
1994 Act to have regard to the interests of the inhabitants of the area to which the common
good formerly related when taking decisions in relation to common good land.
[19] The respondent had failed to comply with its duties under section 104 of the
2015 Act. That provision imposed a duty to consult where the respondent was considering
disposing or changing the use of any property that was held as common good land. The
respondent had misdirected itself in law by taking the view that it did not require to consult
because a decision to demolish had been taken before the 2015 Act came into force. At the
meeting on 7 February 2019 the respondent was considering whether or not to dispose of or
change the use of common good land, and the 2015 Act applied.
[20] The respondent had failed to comply with its duty under section 74 of the 1973 Act
not to dispose of land for a consideration that is less than the best that can reasonably be
obtained (“best value”). The decision of the respondent was not supported by reasons that
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were adequate in law, and was unreasonable so far as best value considerations were
concerned. The respondent had not taken any steps - such as placing the leisure centre on
the open market for sale - to ascertain what a purchaser might pay for it. Demolition was a
costly option, and other options would not involve similar expenditure. The failure to place
the property on the open market and ascertain the “best price” was also characterised as a
failure to take into account material considerations.
[21] The respondent proceeded on an error of fact. Report 48/19 was misleading. It
included this statement, at paragraph 4.2:
“The difference of opinions is in terms of the serviceable life of the building; with
uncertainty over the foundations [sic] stability, and with ongoing maintenance and,
revenue costs. With over 20 years of inspections of the building until shortly before
its closure, problems have persisted, and can be foreseen as ongoing, to a point that,
the building is no longer serviceable.”
That statement mischaracterised the content of the expert reports on the condition of the
building, and there was no proper basis for it. Insofar as the decision was based on the
proposition that the leisure centre was or would become no longer serviceable, it was
flawed. If the decision to treat the matter as urgent was based on that proposition, it, also,
was flawed. Insofar as the respondent relied on a “Survey of Foundation Settlement” dated
October 2010 it acted unreasonably. It should not have relied on it without instructing a
more detailed report. The respondent had failed to monitor the progression of cracks in the
leisure centre since October 2010.
[22] The petitioners argued, finally, that the respondent had failed to take into account
the first petitioner’s representations. He had asked for the decision to be delayed
“to fully take account of the updated information on the condition of the leisure
centre and the potential future uses for it, and to consult with the public in relation to
those possibilities.”
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Respondent
[23] The special circumstances leading to consideration of report 48/19 were contained in
the minutes of the meeting. Even if there had been a breach of the requirements in the
standing orders, the petitioners had failed to demonstrate that they had suffered prejudice
as a result. The second petitioner had sent the Millard reports to the elected members of the
respondent. The first petitioner had attended the meeting and made representations.
[24] The reasons for the decision to add the item to the agenda were as set out in the
respondents answer 3:
“… [report 48/19] was added as an urgent item due to the timing of the receipt of the
offer for the leisure centre … and the need to progress with the demolition contract
in advance of the summer season if the building was to be demolished and offer not
accepted so as to avoid impact on other uses nearby and due to public interest in the
future of the leisure centre as demonstrated by interest by the press. The respondent
is incurring costs and expenses in relation to the vacant leisure centre in the order of
£4,000 per month and will continue to do so until it is demolished. Further as noted
in [report 48/19] officers had procured tenders for the demolition of the building.
Tenders were received on 11 January 2019 and remained open for acceptance until
11 April 2019. The decision to proceed with the consideration of [report 48/19] at the
7 February 2019 meeting was duly taken by the Provost in accordance with the
respondent’s standing orders and is duly minuted, which minutes have been
approved. If it had not been considered at that meeting it would not have been
brought before the Council until 21st March 2019.”
[25] The provost had made the decision, and so the substance of the standing order had
been complied with. The provost had formed an opinion, and that had been recorded. This
was not a “failure to give reasons” case. It fell to be distinguished from cases in which
reasons required to be given for a substantive decision, explaining the outcome of the
deliberations of a public authority. What was alleged was a procedural failure or
irregularity, and there could be no remedy unless prejudice were established. In any event,
the reference to timeousness could be understood in a context in which a decision to
demolish had been taken some months previously. It was clear from the reports regarding
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the leisure centre that a decision required to be taken quickly or timeously. The respondent
needed to decide quickly whether or not to change tack. It was correct to say, as the
petitioners did, that the tenders for demolition would have remained valid until after the
next meeting of the respondent. That might have been a reasonable basis for declining to
consider the business, but the provost had been entitled to take a different view. If I were
against the respondent in relation to any requirement to give reasons for the urgent
consideration of the business, then I had a discretion as to whether to reduce the decision of
the respondent. This was not a situation in which reasons were being manufactured ex post
facto.
[26] Counsel submitted that at the meeting on 7 February 2019 the respondent was
determining whether or not to “change course”. The only decision made on 7 February 2019
was one not to interfere with the decision of 1 May 2018. There had been no challenge to the
decision of 1 May 2018. The respondent had obtained tenders for the demolition work,
which had now expired.
[27] The respondent had before it a further report, report 49/19, relating to the offer to
purchase the leisure centre, but merely noted its contents. Report 49/19 related that if
members were minded to pursue sale rather than demolition, the leisure centre ought to
have been marketed for sale. That did not arise, however, as the respondent had confirmed
the decision to demolish.
[28] The provisions of the 2015 Act did not apply because the respondent did not decide
to dispose of or change the use of any common good property. The first task for the
respondent was to consider whether it even wanted to contemplate the loss of part of the
country park for future generations. If it did not, it had no need to engage with the
restrictions on the sale of land on which the petitioners relied. The respondent had no
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obligation to consider selling the land. The building was not held on the common good
account: report 48/19, paragraph 3.2. It was the land that was held on the common good
account. This was reflected in paragraph 6.4.2 of the report - sale of the building would
bring in a capital receipt to the Forfar Common Good account (land) and General Fund
capital account (building). The land was held by the council for the common good, but the
building was not. There was no change of use of the land. The land had been used for
community purposes and would remain in community use after the building had been
demolished. Where common good land was being retained, section 104 of the 2015 Act was
not engaged.
[29] There had been no breach of section 74 of the 1973 Act. The respondent did not
dispose of any land. In any event, the value of the land required to be considered not only
in financial terms, but by reference to the benefit of retaining the land within the common
good land managed by the respondent. There was no requirement when retaining common
good land to ascertain what value might be obtained if it were to be sold.
[30] The respondent was under no obligation to place the site on the open market,
bearing in mind that the site was common good land and its significance as part of the wider
common good land around Forfar Loch. There was no obligation to market property to see
what price might be achieved, in the knowledge that it was not going to be sold.
[31] The complaint about error of fact was without substance. Examination of the content
of a number of passages in the reports about the condition of the building disclosed that
report 48/19 represented the position fairly and accurately.
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Decision
Standing orders
[32] Clause 11(2) of the respondent’s standing orders states:
“Except as otherwise prescribed by statute, no item of business shall be considered at
a meeting of the Council unless either:-
(i) a copy of the agenda including the item has been open in advance to
inspection by members of the public in terms of the 1973 Act; or
(ii) by reason of special circumstances which shall be recorded in the minutes
of the meeting, the Provost is of the opinion that the item should be
considered at the meeting as a matter of urgency.”
I was not referred to section 50B(4) of the 1973 Act, but note that it is in similar terms:
“An item of business may not be considered at a meeting of a local authority unless
either—
(a) a copy of the agenda including the item (or a copy of the item) is open to
inspection by members of the public in pursuance of subsection (1) above for
at least three clear days before the meeting or, where the meeting is convened
at shorter notice, from the time the meeting is convened; or
(b) by reason of special circumstances, which shall be specified in the
minutes, the convener of the meeting is of the opinion that the item should be
considered at the meeting as a matter of urgency.”
A very similar provision appears at section 100B(4) of the Local Government Act 1972.
[33] Although the statement of issues identifies a separate argument under reference to
section 15(4) of the 1994 Act, the petitioner referred to this provision only in relation to the
paragraph of the petition regarding failure to comply with the standing orders.
Section 15(4) requires that a local authority to which property held for the common good
was transferred from a previously existing local authority shall administer that property
having regard for the interests of the inhabitants of the area to which the common good
related prior to 16 May 1975. I understood the reference to be intended to emphasise the
need for the respondent to take those interests into account in administering the common
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good, and the potential prejudice to members of the public in not having notice of the
agenda item.
[34] The requirement in the standing orders that the special circumstances be recorded is
a requirement to give reasons. It requires that the circumstances informing the opinion of
the provost be recorded. It is a safeguard against arbitrary departures from the normal
prescribed procedures. The reasons must be comprehensible. Those prescribed procedures
are there to secure the aim that members of the public have notice of the respondent’s
business. They are there to secure transparency. They afford members of the public the
opportunity to make representations to their elected representatives. The requirement that
the reasons for a departure from those procedures be recorded has the purpose of securing
public confidence in the integrity and transparency of local authority decision making.
[35] I asked parties for submissions as to whether giving adequate reasons for the
decision to consider the business as a matter of urgency was a condition of the lawfulness of
the decision of the provost, under reference to Chief Constable, Lothian and Borders Police v
Lothian and Borders Police Board 2005 SLT 315. I drew that reported case to their attention. I
use the word decision, because the provost’s opinion is a decision by him or her that special
circumstances exist such as to permit departure from the normal requirements. For the
decision to be lawful, there must be special circumstances. Those must be recorded in a way
that allows members of the public to understand what the circumstances were that merited a
departure from the rules that normally secure their right to have advance notice of the
business of council meetings by means of inspection of the agenda. Neither party
considered that the present case was directly analogous to Chief Constable, Lothian and Borders
Police.
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[36] The decision in this case, unlike that in Chief Constable, Lothian and Borders Police, and
those in many of the cases cited by Lord Reed in his opinion, does not relate to the
substantive merits of a dispute, but to a decision to proceed with urgency and outside the
normal and prescribed timeframe. It is, however, relevant to consider the purpose of the
provision, and the interests that it seeks to protect. As I have already mentioned, the interest
protected by the need to give reasons is an important one. Any derogation from the normal
procedure requires justification, and it is prescribed that that justification, by way of special
circumstances, requires to be recorded, and recorded in a particular way. I consider that the
giving of adequate reasons by way of recording in the minutes the special circumstances
justifying treating an item of business as urgent is a condition of the lawfulness of the
decision to proceed.
[37] Whether reasons are adequate must be assessed to the approach in Wordie Property
Co Ltd v Secretary of State for Scotland 1984 SLT 345, at 348. A decision must leave the
informed reader and the court in no real and substantial doubt as to what the reasons for it
were and what the material considerations were which were taken into account in reaching
it. The reference to the informed reader means that in some cases reasons expressed very
summarily will be adequate and comprehensible by reference to other available information,
and in particular information that was before the decision maker.
[38] I accept that there is nothing in the minutes themselves to explain what was meant
by “timeously”, or by reference to what date, circumstances or event timeousness was being
assessed. Report 48/19, however, does refer to a number of the circumstances now
mentioned by the respondent in answer 3. The dates of receipt and expiry of the tenders
appear at paragraph 5.1. The ongoing costs of running the building appear at
paragraph 6.4.1. The timing of any offer would have been clear to all concerned, given the
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deadline imposed by the respondent. A copy of the letter imposing the deadline was an
appendix to the report. The need to progress with the demolition contract in advance of the
summer season so as to avoid impact on other uses, and press interest are not considerations
narrated in the report.
[39] There is a danger that reasons provided subsequent to the decision, particularly in
the context of proceedings for judicial review, will be influenced by the existence and nature
of those proceedings. They may be entirely inadmissible in situations in which the giving
of reasons is a condition of the lawfulness of the decision: Chief Constable, Lothian and Borders
Police, paragraph 70. In assessing the adequacy of the reasons given for proceeding
urgently, I therefore disregard those considerations now narrated in answer 3, but not
disclosed in the report or associated papers. Having regard only to the circumstances
disclosed in report 48/19, I consider that the informed reader, looking at the report and the
minutes together, would be able to discern that timeousness was being assessed by reference
to the dates of expiry of the tenders, the timing of the offer, and the ongoing running costs of
the leisure centre. I do not consider that there has been a failure to give reasons such as to
vitiate the decision to proceed urgently.
[40] I do not consider that the decision was unreasonable. While it might have been open
to a decision maker reasonably to conclude that matters could be deferred until the meeting
of 21 March, I consider that it was reasonably open to the provost, having regard to the
matters I have already referred to as being disclosed in the report to decide that the item of
business ought to be dealt with urgently.
[41] If I had decided that the decision to proceed urgently was unlawful because of a
failure to give reasons, I would not have considered that the question of prejudice was
relevant, given my view that adequate reasons are a condition of the lawfulness of the
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17
decision. If, contrary to that analysis, prejudice is relevant to this chapter of submissions,
my conclusion is that the petitioners have not identified any prejudice to them. They have
not identified what additional material might have been put before the respondent so as to
cause the respondent’s decision to be different, had more notice been given of the meeting.
Both Millard reports were with the elected representatives by reason of the first petitioner’s
letter dated 22 January 2019. It included a plea for more time to be taken to consult. The
speaking note which the first petitioner used when he made oral representations on
7 February 2019 canvasses quite fully the issues relating to the state of information about the
condition of the leisure centre which feature in this petition. It contains a complaint about
the lack of notice of the meeting. It contains a further request for more time to consult. It
refers to the desirability of the respondent’s accepting the second petitioner’s offer. Putting
matters another way, if the decision to deal with report 48/19 falls to be treated as a failure to
observe procedural requirements properly, no material has been presented to demonstrate
that there was a real possibility that the decision as to whether to demolish or to take a
different course would have been different had that failure not occurred.
Section 104 of the Community Empowerment Act 2015
[42] Section 104 is in the following terms:
“(1) Subsection (2) applies where a local authority is considering—
(a) disposing of any property which is held by the authority as part of the
common good, or
(b) changing the use to which any such property is put.
(2) Before taking any decision to dispose of, or change the use of, such property the
local authority must publish details about the proposed disposal or, as the case may
be, the use to which the authority proposes to put the property.
(3) The details may be published in such a way as the local authority may determine.
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18
(4) On publishing details about its proposals under subsection (2), the local authority
must—
(a) notify the bodies mentioned in subsection (5) of the publication, and
(b) invite those bodies to make representations in respect of the proposals.
(5) The bodies are—
(a) where the local authority is Aberdeen City Council, Dundee City Council,
the City of Edinburgh Council or Glasgow City Council, any community
council established for the local authority's area,
(b) where the local authority is any other council, any community council
whose area consists of or includes the area, or part of the area, to which the
property mentioned in subsection (1) related prior to 16 May 1975, and
(c) any community body that is known by the authority to have an interest in
the property.
(6) In deciding whether or not to dispose of any property held by a local authority as
part of the common good, or to change the use to which any such property is put, the
authority must have regard to—
(a) any representations made under subsection (4)(b) by a body mentioned in
subsection (5), and
(b) any representations made by other persons in respect of its proposals
published under subsection (2).”
[43] The argument for the petitioners was that the respondent was considering disposing
of the property, or, alternatively, changing its use. That was apparent from the various
options set out in report 48/19. Two of the options - those involving sale - obviously
involved disposal of the property. Demolition involved a change of use.
[44] Although the language of subsection (1) refers to a local authority “considering”
disposing of property or changing its use, a reading of the whole section, and in particular
subsection (2), makes it clear that what is prohibited is a decision to dispose or change the
use of property without publication of the proposal and the opportunity for representations.
The intention appears to be to prevent a decision to dispose of property or change its use
without first allowing community councils and other interested community bodies an
opportunity to learn of the disposal, and to allow them and others to make representations.
The section does not require publication and opportunities for representations before
Page 19 ⇓
19
making a decision not to dispose or change the use of property. It is not engaged where a
council is not acting or proposing to act in a way which would alter the status quo.
[45] I deal first with the question of disposal. By its decision of 7 February 2019 to
demolish the building, the respondent was not deciding to dispose of common good
property. The respondent determined not to sell, and there was no decision to dispose of
the land by sale. The common good property in this case is the land, and not the building.
Demolition of the building will not result in disposal of the land.
[46] I was referred to Waddell and others v Stewartry District Council 1977 SLT (Notes) 35.
That case related to the demolition of the town hall in Gatehouse of Fleet. There appears to
have been no dispute in that case that the town hall formed part of the common good. The
defenders would not have been entitled to alienate or dispose of it without the authority of
the court, in terms of section 75(2) of the Local Government (Scotland) Act 1973. The
Lord Ordinary required to determine whether the demolition should be regarded as a
disposal for the purposes of a motion for recall of an interim interdict. The following
passage of his Opinion appears at page 36 of the report:
“Prima facie, to dispose of land is to make it over to someone else. Whether or not
that involves a transfer of ownership as well as possession and control will depend
on the context in which the transaction takes place. It is clear from the authorities to
which I have referred that property of this nature is extra commercium. It could not
be sold, without the authority of the court, because that would be to deprive the
community of something which, as a community, they were entitled to have. It
follows that it could not be alienated by donating it and as the same result would
follow so far as the community is concerned, it would seem logical that its
demolition, for example for road widening purposes, would likewise be an ultra
vires act. In Crawford v. Magistrates of Paisley (1870) 8 M. 693, opinions were expressed
that a steeple formed part of the inalienable property of the burgh which the
magistrates were not entitled to take down without judicial authority, except on the
ground of absolute necessity. At p. 696 Lord President Inglis said: ‘It must be
observed that this steeple is not only the public property of the burgh, but it is
inalienable property. They could not sell it, and most unquestionably they could just
as little pull it down without judicial authority, unless the immediate risk was so
imminent as to entitle them, for the safety of the community, to do so’ . Likewise,
Page 20 ⇓
20
Lord Deas, at p. 697, expressed himself thus ‘As your Lordship has observed, this
steeple was part of the inalienable property of the burgh, which they could not sell,
and could not take down, except on necessity’. I have accordingly come to the view
that in this context what constitutes alienation must be liberally construed and would
include any action which effectively deprives the community of something which, by
custom or dedication by direct grant, they are entitled to have. If an authority cannot
deprive the community of the use of property which is inalienable by disposing of it
in the ordinary commercial sense of the term, or by making a gift of it, it would only
be in accordance with the underlying principle that they could not deprive the
community of its use by destroying it, except in the highly special circumstance of
imminent danger to the public. In the context of the deed itself, the object of the grant
being the declared purpose of providing a town hall, I consider that a similarly wide
construction falls to be placed on the words ‘dispose of’, and these words would
accordingly comprehend the action contemplated by the defenders.
As to whether the same words where they appear in s. 75 of the 1973 Act fall to be
similarly construed I express no view. These provisions were not canvassed in
argument in any detail and notwithstanding the wide terms of s. 74 (1) it may well be
that in this statutory context disposal of land is envisaged only in a commercial
sense. The previous statutory provision, namely s. 171 of the 1947 Act, would seem
to relate to the selling and feuing of land but the group of sections in that Act relating
to the disposal of land generally is very different, and much more specific, than the
way in which this is treated in the 1973 Act.”
[47] The case falls to be distinguished from the present one, in that the court proceeded
on the basis that the building in respect of which demolition was proposed was property to
which section 75 of the 1973 Act applied: it was land forming part of the common good with
respect to which a question arose as to the council’s right to alienate it. The sense of the final
paragraph in the foregoing passage suggests that the reference to section 75 ought to be a
reference to section 74. The Lord Ordinary had been considering the construction of
“dispose of” in section 75(2), and then goes on to reserve his position as to whether the
expression has the same meaning in a different provision, which must be section 74, the
provision dealing with achieving the best consideration that could reasonably be obtained
on disposal. He expressed the provisional view that it might relate only to disposal in a
commercial sense rather than comprehending acts such as demolition.
Page 21 ⇓
21
[48] I require to deal with the question whether demolition of the leisure centre amounts
to a change of use for the purposes of section 104. The respondent submitted that the use of
the land remained a leisure and recreational use. It would be different if what were
proposed was that a leisure use were to be changed to, for example, an education use (as in
East Renfrewshire Council, petitioner [2014] CSOH 129 and Portobello Park Action Group
Association v City of Edinburgh Council 2013 SC 184), or a housing use. Before the leisure
centre was erected, the land had been used for leisure and recreational purposes. It had
continued to be used in that way after its erection, and would continue to be used in that
way when the leisure centre had been demolished.
[49] Whether a particular decision as to the use to which property is put amounts to a
change of use which will engage section 104 is a mixed question of fact and law which will
require to be considered on the basis of the facts and circumstances arising in any particular
case. I was not provided with any authority as to the construction that should be given to
the expression in the context of the 2015 Act. The approach of the respondent might suggest
that change of use might be regarded as broadly similar to appropriation of land held for
one function for the purposes of another function: 1973 Act, section 73(1).
[50] Changing the use of common good land in a park from a leisure use in order to build
a school on the land would seem likely to engage the provision. It seems likely that what
would under other legislation amount to an appropriation for a different function would
engage the provision. It must be doubtful whether Parliament intended that every type of
change of use - for example the substitution of a tennis court in a park with a basketball
court - would engage section 104. I accept the analysis proffered by the respondent. The
common good land is presently used for leisure purposes, and that will remain the case after
the building has been demolished.
Page 22 ⇓
22
[51] The petitioner in submissions laid some emphasis on paragraphs 5.7-5.9 of
report 48/19, quoted above. The advice is not in most of its substance wrong. I have
concluded that the decision to demolish did not engage section 104 in this case. Decisions to
sell would have done so. The underlying analysis is not, however, correct. The advice
proceeds on the basis that section 104 is not engaged because the “original” decision to
demolish was made before the 2015 Act came into force. That perhaps explains the
respondent’s insistence in these proceedings that there was no new decision, but a
non-departure from an earlier decision. Section 104 was not engaged. That was, however,
because the decision made on 7 February was not one to dispose of the property or change
its use, not because it represented adherence to an earlier decision. Paragraph 5.9 is
unhappily expressed. It could be construed as reflecting an understanding that demolition
did represent a change of use, and that the only reason why section 104 was not engaged
was the earlier decision to demolish. As I have explained, that is not how I have construed
section 104.
[52] No argument appears in the petition, nor was one made at the substantive hearing,
that the respondent’s decision was unlawful by reason of section 75 of the 1973 Act,
although such a contention is listed in the joint statement of issues. It is apparent from
paragraph 5.10 of report 48/19 that the respondent had not reached a concluded view as to
whether the land in question was alienable, or whether it was land to which section 75(2)
applied. The respondent clearly had in mind that a disposal of the land might well require
the approval of the court. For the reasons that I have already given, there is no disposal of
common good property by reason of the demolition of the leisure centre. In the
circumstances of this case no change of use of the common good property arises. If a
question as to whether the land could be alienated arose, then there could be no disposal
Page 23 ⇓
23
without the authority of the court under section 75(2). There is no provision in the 1973 Act
for a court to give authority for appropriation of inalienable common good property for
another purpose: East Renfrewshire Council; Portobello Park Action Group Association.
Section 73 and section 75(1) of the 1973 Act do not override the common law so far as
inalienable common good property is concerned: Portobello Park Action Group Association.
Error of fact/lack of factual basis
[53] The petitioner’s submission was that the content of report 48/19 was such that the
respondent proceeded to make a decision on the basis of factually incorrect information.
Mr Burnet placed particular emphasis on the content of the two Millard reports. The first of
these included the following:
“There were very few structural defects observed externally during the inspection,
and any cracking noted appeared to be caused by thermal shrinkage and not by
progressive ground movement. The external walls appeared to be well detailed with
vertical movement joints noted at regular centres. Internally, the masonry walls
were exposed in a number of areas and no cracking or evidence of structural
movement was noted. In the areas where the masonry was concealed by finishes, the
finishes generally consisted of a brittle finish directly applied to the masonry. Any
cracking observed internally generally appeared to be cosmetic and not symptomatic
of ongoing structural movement. Due to the brittle nature of the finish it is thought
that any movement of the structure would be clearly visible.
The ground floor appeared to be significantly sloping in areas, particularly in the
areas adjacent to the sports hall. The floors appear to be sloping down towards the
sports hall and squash courts suggesting that separate parts of the structure have
settled at differing rates. In this area of the building it was noted that the floor was
finished in tiles. In a tiled floor finish any recent ground movement is generally
characterised by cracking and tiles becoming boss. No such defects were noted thus
suggesting that the ground movement is historical and not progressive.
In conclusion, it would appear the building does show evidence of structural
settlement; however, the defects noted are not symptomatic of ongoing or
progressive structural movement. The nature of the finishes in the building would
clearly present evidence of ongoing ground movement issues, this evidence was not
observed during the inspection.”
Page 24 ⇓
24
[54] The second Millard report contained a review of other structural survey reports, and
in particular one dated 26 July 2001, which it characterised in the following way:
“The findings from the survey were that there were three localised ‘soft spots’
located within the footprint of the building. The report also stated that ‘monitoring of
the building has revealed that ongoing building movement to be very slow’ and
‘settlement may have happened during construction and does not pose a threat to
the building’s fabric in the future.’”
[55] A structural survey report dated 9 July 1998 includes consideration, at
paragraphs 5.2.1 and 5.2.2 of differential settlement and subsidence, including explanations
as to why these might have occurred, connected to the construction techniques used when
the leisure centre was built, and in particular the use of stone column piles in landfill sites
without bottom feeding the stone into the bore. Another structural survey report, dated
26 July 2001, referred to the report of July 1998, and also to two earlier reports. The report of
26 July 2001 referred to “soft spot locations” in the sports hall store/polygym rear door, the
polygym front wall, and the sports hall corner next to the café. It included the following
passages:
“Although monitoring of the building has revealed the on-going building movement
to be very slow, remedial works including mini-piling should be instigated in this
area to prevent further deterioration of the building fabric (Report 3) in the medium
to short term.”
and
“Therefore this suggests the settlement may have happened during construction and
does not pose a threat to the building’s fabric in the future, however annual surveys
are recommended for walls in this area as large variations in ground water level may
lead to heavy cracking.”
Mr Findlay pointed out that the quotation in the second Millard report from the first of these
passages was incomplete.
[56] The report of 26 July 2001 included conclusions and recommendations in the
following terms:
Page 25 ⇓
25
“5.1 Increased Frequency of Building Maintenance Inspections – Focusing on ‘Soft
Spots’
The contour survey has revealed that the building is situated on three ‘soft spots’. It
is recommended that the frequency of the maintenance inspections be increased from
2 years to an annual inspection looking for cracking in the three areas as follows: …”
A further document, a ‘Structural Overview’ from July 2008 included the following:
”It is of the utmost importance to review the structural performance of this building
from its construction in 1977 since this is a key factor in identifying an appropriate
strategy for managing the future structural integrity of the building. Differential
foundation movement still continues resulting in increased distortion/damage of
structural elements inducing stresses for which they are not designed. Various
repairs have been undertaken over the years which have failed or are failing. The
existing foundation system can also be sensitive to external factors such as high
groundwater levels or drying out promoting local accelerated foundation movement.
The report prepared in 2001 by this Dept. recommended that the frequency of
structural inspections should be increased to an annual basis and this should be
implemented without delay. This is necessary since structural damage can be
expected to continue therefore it is crucial that vulnerable areas are identified and
monitored in a consistent and regular fashion as part of the overall future
management of this facility.
…
From the visual inspection undertaken on 25/6/2008 and although there is ongoing
foundation movement resulting in the failure off [sic] previous repairs, I do not feel
there is immediate concern from a structural point of view. It is imperative however,
that the structural defects within this building are carefully monitored on a
structured basis to ensure that no defects propagate to a stage where they may
become potentially dangerous and compromise the safety of the general public and
staff within the building.”
[57] A further report, entitled “Survey of Foundation Settlement” from October 2010
included the following
“The precise levelling points, installed in 2009 have been surveyed in August 2009
and again in June 2010.
The results of this survey, together with a key plan for the survey points, are
enclosed in this report.
Over this 9 month period the maximum settlement recorded is 4mm. This translates
to an annual settlement of over 5mm. The survey highlights the fact that the main
Page 26 ⇓
26
hall is settling at a faster rate than some of the other buildings. The results generally
tie-in with the observed slopes in the floor and changes in level, which have occurred
over the life of the building. The building seems to be settling at a similar rate to the
rate of settlement up to now. It is reasonable to predict that this settlement will
continue until the building becomes unserviceable.
Monitoring of the settlement will continue annually. It is advisable to carry out a
structural survey of the building, to establish that none of the roof or suspended floor
structural members are likely to collapse because of dislodged bearings. The
integrity of supporting walls should also be checked.”
[58] A letter from Morgan Consulting Civil and Structural Engineers, instructed by
Shepherd Chartered Surveyors on behalf of the respondent, and dated 19 October 2018,
included the following:
“From our limited inspection we saw no indication of recent dramatic movement.
Movements are not severe, but in places are significantly worse than normally
expected or considered acceptable. Conditions might be expected to continue similar
to existing for some years with some gradual ongoing movement and deterioration,
however no definite assurances would be given, and foundations and future
movement integrity and stability must be considered suspect. Inspection monitoring
is recommended to continue, to ensure safety is not compromised.”
[59] As mentioned above, the first petitioner wrote a letter dated 22 January 2019, which
had been circulated to all councillors, attaching the two Millard reports dated 7 September
and 17 December 2018. The letter represented that the leisure centre was fit for purpose and
with a lifespan of more than 30 years.
[60] I consider that I should approach the content of report 48/19 in a similar way to that
in which a planning officer’s report should be approached. In No Kingsford Stadium Ltd v
Aberdeen City Council and others [2019] CSOH 19, Lord Tyre described that approach at
paragraph 12. The report should be construed in a practical, reasonably flexible and
commonsense way, in the knowledge that it is targeted at parties who are well aware of the
paragraph 11. The question for the court is whether, on a fair reading of the report as a
Page 27 ⇓
27
whole, the planning officer has materially misled the members on a matter bearing upon
their decision, and the error has gone uncorrected before the decision was made: Mansell v
Tonbridge and Malling Borough Council [2018] JPL 176 at 42 (CA).
[61] The author of paragraph 4.2 of report 48/19, quoted above, at paragraph 21 was
entitled to summarise the material for the elected members in the way that he did. He was
entitled to characterise the material as reflecting uncertainty regarding the stability of the
foundations, and to identify ongoing costs of maintenance. He was correct to state that
problems had persisted over a protracted period. He was entitled to characterise the
available information as indicating that persistent problems were foreseeable, and as
continuing in the future to a point that the building was no longer serviceable. That opinion
was expressed in the Survey of Foundation Settlement dated October 2010. He referred to a
difference of opinion regarding the serviceable life of the building, which clearly relates in
part to the opinion stated in the second Millard report, and repeated in the first petitioner’s
letter of 22 January 2019, that the building’s future lifespan could exceed 30 years. The
opinion of Millard was more optimistic than that of those providing surveys for the
respondent. It is notable that paragraph 4.1 of report 48/19 included quotation from the
second Millard report, including the passage regarding the building’s possible future
lifespan.
[62] Following the approach described in No Kingsford Stadium, there is nothing in the
way in which the information was put before the respondent in report 48/19 to support the
contention that the respondent made its decision on the basis of any error that is susceptible
to judicial review.
Page 28 ⇓
28
Duty to obtain best value
[63] Section 74 of the 1973 Act provides:
“(1) Subject to Part II of the Town and Country Planning (Scotland) Act 1959 and to
subsection (2) below, a local authority may dispose of land held by them in any
manner they wish.
(2) Except in accordance with regulations under subsection (2C) below,1 a local
authority shall not dispose of land under subsection (1) above for a consideration less
than the best that can reasonably be obtained.
(2A) Subsection (2) does not extend to a disposal where—
(a) the best consideration that can reasonably be obtained is less than the
threshold amount; or
(b) the difference between that consideration and the proposed consideration is
less than the marginal amount.
(2B) The Scottish Ministers shall, by regulations, fix the threshold amount and the
marginal amount for the purposes of subsection (2A) above.
(2C) The Scottish Ministers may, by regulations, provide as to the circumstances in
which and procedure by which local authorities may, under this section, dispose of
land for a consideration less than the best that can reasonably be obtained.
(2D) Those regulations may include provision—
(a) requiring a local authority proposing to dispose of land at less than the
best consideration that can reasonably be obtained to appraise and compare
the costs and other disbenefits and the benefits of the proposal;
(b) requiring the local authority, before deciding in favour of the proposal, to
be satisfied that so deciding would be reasonable; and
(c) setting out factors to which the local authority must have regard when
considering whether its decision would be reasonable.
(2E) References in this section to the best consideration that can reasonably be
obtained by a local authority are references to that consideration as assessed by a
suitably qualified valuer. …”
[64] This argument fails for much the same reason as does the argument relating to a
decision to dispose under section 104 of the 2015 Act. The duty arises when there is a
disposal. Section 74 does not impose a duty to decide to dispose of land in order to obtain a
consideration. It prohibits disposal for consideration less than the best that can reasonably
be achieved. I do not consider that “dispose” in this provision comprehends “demolish”,
Page 29 ⇓
29
but means alienating, for example by sale or donation. In Waddell “dispose” was given a
broad and purposive construction in the context of common good property which was the
inalienable property of the burgh, and the application of section 75. That is not the context
of section 74. In Waddell the Lord Ordinary, obiter, tentatively expressed a view to similar
effect.
[65] The petitioners sought also to formulate this branch of their argument as a failure to
give reasons as to why the best financial outcome or best consideration should not be
sought. They complain that the respondent had not put the leisure centre on the open
market in order to ascertain what price a purchaser might be prepared to offer, or whether a
third party might offer to lease it. The respondent was not, therefore, aware what the best
consideration that might reasonably be achieved was. The petitioners point out that
demolition was a costly option. It was therefore unreasonable or premature to decide to
demolish the leisure centre.
[66] In the first place, the petitioners did not provide any authority to support the
contention that before determining whether to retain common good land the respondent
required to ascertain what consideration might be achieved for it on disposal. Second, there
is still at common law no general duty to give reasons, and no argument was presented as to
why there was a duty to give reasons in this context. If there is such a duty, it is apparent
from the contents of report 48/19 what considerations were before the respondent at the
meeting of 7 February 2019 in relation to each of the options it was considering, including
the recommendation that it accepted by its decision. Those considerations included the
desirability of maintaining control over the land in question, retaining the land as common
good, and providing a further amenity area as part of the country park. Considerations also
included the delay, cost, and risk of failure associated with any exercise involving disposal
Page 30 ⇓
30
of the land, particularly given the prospect that an application to the court would be
required under section 75(2) of the 1973 Act. These were all matters which the respondent
was entitled to take into account.
Material considerations
[67] Similar contentions were presented as a failure to take into account material
considerations, which were said to be the information on the condition of the leisure centre,
the representations by the first petitioner asking for the decision to be delayed, the failure to
place the leisure centre on the open market, and the failure to take into account the best price
that might be achieved before deciding whether or not to demolish the leisure centre. The
formulation of those contentions in that way adds nothing to the submissions which I have
already considered and rejected.
Disposal
[68] I therefore refuse to grant the orders sought in the petition.
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