ON APPEAL FROM THE HIGH COURT (QUEEN'S BENCH DIVISION)
THE HON MRS JUSTICE PATTERSON
Strand, London, WC2A 2LL |
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B e f o r e :
and
LORD JUSTICE HICKINBOTTOM
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DUNNETT INVESTMENTS LIMITED |
Appellant |
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- and - |
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(1) THE SECRETARY OF STATE FOR COMMUNITIES AND LOCAL GOVERNMENT (2) EAST DORSET DISTRICT COUNCIL |
Respondents |
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for the Appellant
Sasha Blackmore (instructed by Government Legal Department) for the First Respondent
The Second Respondent neither appeared nor was represented
Hearing date: 16 March 2017
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Crown Copyright ©
Lord Justice Hickinbottom:
Introduction
"1. This use of this building shall be for purposes falling within Class B1 (Business) as defined in the Town and Country Planning (Use Classes) Order 1987, and for no other purpose whatsoever, without express planning consent from the Local Planning Authority first being obtained.
2. In order that the Council may be satisfied about the details of proposal due to the particular character and location of this proposal."
The Secretary of State contends that this condition excludes the right to change the use of the relevant land under the Town and Country Planning (General Permitted Development) Order 1995 (SI 1995 No 418) as amended ("the GPDO"). The Appellant contends that it does not.
"6. The buildings shall be first used by [the applicant] for carrying on of their undertaking of the design, manufacture and marketing of precision electronic automatic test equipment.
7. This permission shall enure for the benefit of the applicant for the five years from the date hereof and thereafter it shall enure for the benefit of the applicant or of a company or person engaged in the design, manufacture and marketing of precision electronic automatic test equipment only provided that in the event of the applicant being liquidated whether voluntary or otherwise, or otherwise ceasing trade within the said five years of the date hereof then this permission shall enure for the benefit of a company or person engaged in the design, manufacture and marketing of precision electronic automatic test equipment.
8. Notwithstanding the provision of the Town and County Planning General Development Orders 1977 to 1981 there shall be no direct means of vehicular or pedestrian access to the development hereby permitted from Brickyard Lane, other than the maintenance only access shown on the plan hereby approved provided to serve the public utilities proposed to be in the south-east corner of the development.
…
10. Notwithstanding the provisions of the Town and Country Planning General Development Orders 1977 to 1981 the level of land hatched green on the approved plan shall be lowered so that the land and anything on it shall not be more than 0.600m above the level of the carriageway; and the resultant visibility splays shall be kept free of all obstructions at all times."
"To enable the Local Planning Authority to exercise proper control over the development and because the site is in an area where new industrial development would not normally be permitted."
The reason for the imposition of conditions 8 and 10 was that they were "in the interests of highway safety".
"This permission should be read in conjunction with the planning permission dated the 1 March 1982 for the erection of the building…, including the planning conditions which remain in full force and effect with the exception of Condition No 7 which has been varied by planning consent hereby permitted."
After the informative, under the heading "Notes to the Applicant: Appeals to the Secretary of State", the right of appeal to the Secretary of State under section 78 was confirmed, and the procedure for appealing set out.
"It is considered that this condition restricts the use of the building to B1 and for no other use whatsoever, and removes permitted development rights to change to any other use that may ordinarily be undertaken under the [GPDO]".
It is common ground that, although that letter purported to refuse the application for prior approval, it did not properly do so – so that the Council never properly responded to that application – but that letter made clear that the Council did not consider that the proposal fell within the GPDO at all, because rights under the GPDO had been excluded by the condition.
"This condition and reason shows a clear intention to limit the scope of the planning permission to only the use permitted (Class B1), and that this was done to satisfy the Council regarding the details of the proposal on account of its particular character and location.
It is the Council's view that the use of the [Site] remains restricted by this condition to Use Class B1…. It consequently prevents a change of use to the proposed C3 (dwellings) use without express planning permission.
A planning application is therefore required for the proposed use, and the application for a Certificate of Lawful Development/Use must fail, as any works to implement the proposal would be unlawful."
The Grounds
The Legal Background
"Planning permission may be granted—
(a) by a development order…;
(b) by the local planning authority (or, in the cases provided in this Part, by the Secretary of State) on application to the authority in accordance with a development order;
…"
"(1) The Secretary of State shall by order (in this Act referred to as a 'development order') provide for the granting of planning permission.
(2) A development order may either—
(a) itself grant planning permission for development specified in the order or for development of any Class specified; or
(b) in respect of development for which planning permission is not granted by the order itself, provide for the granting of planning permission by the local planning authority (or, in the cases provided in the following provisions, by the Secretary of State) on application to the authority in accordance with the provisions of the order."
"(2A) Without prejudice to the generality of subsection (1), where planning permission is granted by a development order for development consisting of a change in the use of land in England, the order may require the approval of the local planning authority, or of the Secretary of State, to be obtained—
(a) …
(b) with respect to matters that relate to the new use and are specified in the order."
"3.—(1) … [P]lanning permission is hereby granted for the Classes of development described as permitted development in Schedule 2.
(2) Any permission granted by paragraph (1) is subject to any relevant exception, limitation or condition specified in Schedule 2.
…
(4) Nothing in this Order permits development contrary to any condition imposed by any planning permission granted or deemed to be granted under Part III of the [1990] Act otherwise than by this Order."
"Development consisting of a change of use of a building and any land within its curtilage to a use falling within Class C3 (dwelling houses) of the Schedule to the Use Classes Order from a use falling within Class B1(a) (offices) of that Schedule."
"Class J is permitted subject to the condition that before beginning the development, the developer shall apply to the local planning authority for a determination as to whether the prior approval of the authority will be required as to—
(a) transport and highways impacts of the development:
(b) contamination risks on the site; and
(c) flooding risks on the site
and the provisions of paragraph N shall apply in relation to any such application."
An applicant may appeal a refusal of prior approval to the Secretary of State (section 78(1)(b)).
"(1) The following provisions apply where under this Part a developer is required to make an application to a local planning authority for a determination as to whether the prior approval of the authority will be required.
…
(8) The local planning authority shall, when determining an application—
…;
(b) have regard to the National Planning Policy Framework… as if the application were a planning application;
…
(9) The development shall not be begun before the occurrence of one of the following—
(a) the receipt by the applicant from the local planning authority of a written notice of their determination that such prior approval is not required;
(b) the receipt by the applicant from the local planning authority of a written notice giving their prior approval; or
(c) the expiry of 56 days following the date on which the application was received by the local planning authority without the authority notifying the applicant as to whether prior approval is given or refused."
"A development order may make provision as to applications for planning permission made to a local planning authority."
The Town and Country Planning (Development Management Procedure) (England) Order 2015 (SI 2015 No 595), made under sections 59 and 62, is the development order which generally sets out the procedure for obtaining planning permission by way of application to the local planning authority.
"(1) If any person wishes to ascertain whether—
(a) any proposed use of buildings or other land; or
(b) any operations proposed to be carried out in, on, over or under land,
would be lawful, he may make an application for the purpose to the local planning authority specifying the land and describing the use or operations in question.
(2) If, on an application under this section, the local planning authority are provided with information satisfying them that the use or operations described in the application would be lawful if instituted or begun at the time of the application, they shall issue a certificate to that effect; and in any other case they shall refuse the application."
The issue of a certificate of lawfulness means that no application for planning permission will be necessary in respect of the proposed use or operations. A refusal of a certificate may be appealed to the Secretary of State (section 195(1)).
"… [W]here a building or other land is used for a purpose of any class specified in the Schedule, the use of that building or that land for any other purpose of the same class shall not be taken to involve development of the land."
In other words, where there is a change of use, but the use still falls within the same UCO class, planning permission is not required, not because it is "development" which is permitted by order (as in the GPDO) but because it is deemed not to be "development" at all.
The Meaning of the Condition: The Appellant's Case
The Meaning of the Condition: Authorities
"As will have become apparent,… and in agreement with Lord Hodge JSC, I do not consider it is right to regard the process of interpreting a planning permission as differing materially from that appropriate to other legal documents."
Lord Mance JSC, referring to the construction of commercial documents, also emphasised that the same general approach applies (see [42]-[44]).
"There is no reason in my view to exclude implication as a technique of interpretation, where justified in accordance with the familiar, albeit restrictive, principles applied to other legal documents. In this respect planning permissions are not in a special category".
"33. Whether words are to be implied into a document depends on the interpretation of the words which the author or authors have used. The first question therefore is how to interpret the express words….
34. When the court is concerned with the interpretation of words in a condition in a public document such as a section 36 consent, it asks itself what a reasonable reader would understand the words to mean when reading the condition in the context of the other conditions and of the consent as a whole. This is an objective exercise in which the court will have regard to the natural and ordinary meaning of the relevant words, the overall purpose of the consent, any other conditions which cast light on the purpose of the relevant words, and common sense.…
35. Interpretation is not the same thing as the implication of terms. Interpretation of the words of a document is the precursor of implication. It forms the context in which the law may have to imply terms into a document, where the court concludes from its interpretation of the words used in the document that it must have been the intended that the document would have a certain effect, although the words to give it that effect are absent… While the court will, understandably, exercise great restraint in implying terms into public documents which have criminal sanctions, I see no principled reason for excluding implication altogether."
This approach thus requires an open-textured approach to the objective exercise of construction of planning conditions, with due regard to the natural and ordinary meaning of the relevant words, but also consideration of the context (including purpose) and common sense.
"42. … I would not encourage advocates or courts to adopt a too rigid or sequential an approach to the processes of consideration of the express terms and of consideration of the possibility of an implication. Without derogating from the requirement to construe any contract as a whole, particular provisions of a contract may I think give rise to a necessary implication, which, once recognised, will itself throw light on the scope and meaning of other express provisions of the contract.
43. This applies whether one is concerned, as in this case, with a public document in the interpretation of which there is, as Lord Hodge JSC notes in [33], limited scope for the use of extrinsic material or with, for example, a commercial contract, where the overall aim is to give effect to the parties' assumed intentions, objectively assessed against the background of their wider relationship and the circumstances of which both must be taken to have been aware.
44. In the light of the above at least, it appears to me helpful to recognise that, in a broad sense as Lords Neuberger and Lord Clarke of Stone-cum-Ebony JSC recognise in [Marks and Spencer plc v BNP Paribas Securities Trust Company (Jersey) Limited [2015] UKSC 72; [2016] AC 742] at [26] and [76], the processes of consideration of express terms and of the possibility that an implication exists are all part of an overall, and potentially iterative, process of objective construction of the contract as a whole."
"These are good reasons for a relatively cautious approach…. But such considerations arise from the legal framework within which planning permissions are granted. They do not require the adoption of a completely different approach to their interpretation."
i) It is rightly common ground that a planning condition on a planning consent can exclude the application of the GPDO (see Dunoon Developments v Secretary of State for the Environment and Poole Borough Council (1993) 65 P&CR 101 ("Dunoon Developments")).
ii) Exclusion may be express or implied. However, because a grant of planning permission for a stated use is a grant of permission for only that use, a grant for a particular use cannot in itself exclude the application of the GPDO. To do that, something more is required (see, e.g., Dunoon Developments at [107] per Sir Donald Nicholls VC).
iii) In Carpet Décor (Guilford) Limited v Secretary of State for the Environment (1981) 261 EG 56, Sir Douglas Frank QC sitting as a Deputy High Court Judge said that, because in the absence of such a condition the GPDO has effect by operation of law, the condition should be in "unequivocal terms". Although "unequivocal" was used by Mr Katkowski in his written argument, during the course of debate he accepted that that term was now less appropriate, given the modern trend away from myopic focus upon the words without proper reference to their full context. However, he submitted (and I accept) that, to exclude the application of the GPDO, the words used in the relevant condition, taken in their full context, must clearly evince an intention on the part of the local planning authority to make such an exclusion.
The Meaning of the Condition: Discussion and Conclusion on Ground 3
i) Mr Katkowski relied heavily upon the intention – ultimately that of Parliament, or at least the Secretary of State who is democratically-accountable – as exhibited in the GPDO that, generally, a change of use from office to residential should be permitted. However, as article 3(4) (quoted at paragraph 20 above) makes clear, that general intention is made expressly subject to the ability of planning authorities to exclude that right by imposing an appropriate condition. This amounts to no more than a submission that that general intention will only be replaced by a clearly worded condition that sufficiently evinces an intention to override it.ii) Looking first at the words used, I do not consider the construction of the condition either difficult or unclear. Read straightforwardly and as a whole, as Patterson J found (notably at [43]-[44]), the natural and ordinary meaning of the words used is that the condition allows planning permission for other uses but restricted to that obtained upon application from the Council as local planning authority, and excludes planning permission granted by the Secretary of State by means of the GPDO. In particular, with due respect to Mr Katkowski's submissions to the contrary, in my view, "express planning consent from the Local Planning Authority" cannot sensibly include planning permission granted by the Secretary of State through the GPDO. It means what it says, i.e. planning permission granted by the local planning authority.
iii) I was unimpressed by Mr Katkowski's submission that planning permission granted by the Secretary of State must be read in, because of the possibility that, where permission is refused by the planning authority to which application is made, the Secretary of State may grant permission on appeal; and, once that is read in, a restriction to a grant by the Secretary of State on appeal (as opposed to permission being granted directly by him through the GPDO) is unwarranted. First, appeal rights do not have to be read into the condition itself: they are automatic statutory rights, and in any event in this permission they were expressly spelled out (see paragraph 5 above). Second, in my view, it is clear that, in this condition, the focus is upon the source of the planning permission: and the intention of the condition is to include planning permission on the application to the local planning authority (whether or not appealed to the Secretary of State) and exclude permission granted by the Secretary of State through the GPDO.
iv) Indeed, in my view, the interpretation I favour does not require the reading in, or reading out, of any words. (Insofar as it does, then the addition of the words "or by the Secretary of State on appeal" is, in substance, a very modest addition compared with "or by the Secretary of State by any means".) On the other hand, the construction pressed by Mr Katkowski sensibly takes away all substance from the condition, leaving it entirely empty; the first part ("This use of this building shall be for purposes falling within Class B1 (Business) as defined in the Town and Country Planning (Use Classes) Order 1987…") merely reiterating the scope of the grant, no more than emphasised by the second part ("…and for no other purpose whatsoever…"), whilst the third part or tail ("… without express planning consent from the Local Planning Authority first being obtained") being empty because it includes all means of granting planning permission whether by the planning authority or the Secretary of State. The condition thus has no discernible purpose. It is a tenet of construction, falling within the umbrella of "sensible" interpretation as championed in Trump International, that it must have been the intention that a condition has some content and purpose. In context, this condition could not sensibly have been merely emphatic, which it would be if Mr Katkowski's submission were correct.
v) In reply, Mr Katkowski submitted that, on his interpretation, the condition would not be entirely empty, because it does require planning permission to be obtained from the someone authorised to grant it, whether the local planning authority or the Secretary of State by one means or another; and would therefore exclude reliance upon the UCO, which enables change of use within a single UCO class without permission, for the reasons given above (see paragraph 27). That submission has some force in so far as it seeks to find some substance in an otherwise empty condition. However, if the purpose was merely to exclude rights under the UCO, leaving those under the GPDO, the condition could more easily have said so; and it fails to overcome the problems Mr Katkowski's interpretation strikes in the reference to "express planning consent from the Local Planning Authority". In my view, the substance Mr Katkowski submits he found, late, in the condition is illusory or, at best, artificial.
vi) Both Mr Katkowski and Miss Blackmore, rightly, accepted that the condition should be read and construed as a whole, in its full context. However, each, to an extent, sought to interpret it by means of deconstructing it into constituent parts. Insofar as such exegesis is necessary and appropriate, in my judgment it supports the construction which I favour.
vii) The first part of the condition sets out the scope of the permission. I respectfully agree with Patterson J (at [60]), the second part ("…and for no other purpose whatsoever…") is not, as Mr Katkowski would have it, merely emphatic of the scope of the planning permission, but is rather a clear and specific exclusion of GPDO rights. Whilst, as I have described, each case depends upon its own facts, it is noteworthy that, in Dunoon Developments (at pages 105-6), in finding that the words "limited to" a particular purpose did not exclude GPDO rights, Farquharson LJ compared that phrase with "… and for no other purpose…" as considered in the earlier case of The City of London Corporation v Secretary of State for the Environment (1971) 23 P&CR 169, which he considered was far more emphatic and (he suggested) possibly sufficient to exclude the operation of the GPDO. In this case, we have a more emphatic phrase still, namely "… and for no other purpose whatsoever…". Further, although we are concerned with rights under the GPDO and not the UCO, the interpretation of that phrase to exclude the operation of the GPDO is at least consistent with R (Royal London Mutual Insurance Society) v Secretary of State for Communities and Local Government [2013] EWHC 3597 (Admin); [2014] JPL 458, in which Patterson J held that a condition which restricted use to "only" particular uses within Use Class A1 excluded the right to use the land for other Class A1 uses, because it effectively evinced an intention to identify acceptable uses within the class whilst prohibiting other unacceptable uses within that class unless and until the merits of such use had been tested by the planning authority upon an application for planning permission (see also The Rugby Football Union v The Secretary of state for Local Government, Transport and the Regions [2001] EWHC Admin 927; [2002] JPL 740, in which Ouseley J, at [56], found that the words "for no other use" had similar effect, on the basis that such words "have no other sensibly discernible purpose than to prevent some other use which might otherwise be permissible without planning permission"). The third part of the condition before this court makes it the more abundantly clear that automatic or direct GPDO rights are excluded, by requiring a planning application if such uses are to be pursued.
viii) Mr Katkowski submitted that, when the condition was imposed in 1995, it would not have occurred to anyone that the GPDO would later permit change of use from light industrial to residential use which, since 2013, it has. However, I do not consider that supports his case on this issue: in my view, the intent of the condition, clearly, was and is to proscribe all changes of use under the GPDO. I do not consider that conditions 8 and 10 in the original 1982 permission (see paragraphs 3 and 4 above) undermine that proposition. In my view, although I appreciate that those conditions were left unchanged in 1995, in making certain access and egress requirements "notwithstanding the provision of the [then current General Development Orders]" at a time when the use of the Site was very severely restricted, those conditions are not in any way inconsistent with the proposition that reliance upon GPDO rights was generally excluded by the condition found in the 1995 permission.
ix) Furthermore, the context in which the condition must be construed includes the planning history of the Site – which, importantly, shows that the Council was anxious to maintain close control over the planning use to which the Site was put – and, more importantly still, the reason for the condition as set out in its own paragraph 2. That confirms that it was imposed to enable the Council to maintain control over the use of the Site, by considering the merits of any proposal, in the light of its "particular character and location". In other words, as Patterson J put it (at [40]), "the sensitivity of the area to potentially unsympathetic uses was protected". That is inconsistent with reliance by an applicant upon rights under either the GPDO or the UCO. Again, I do not see any force in the submission that that clear reason is undermined by the reason expressed in the 1982 permission for the use then permitted, namely "to enable the [Council] to exercise proper control over the development and because the site is in an area where new industrial development would not normally be permitted" (emphasis added). The 1982 use was highly restricted, and the reason explained why a very narrow industrial use was being permitted. In my view, it does not undermine the clear words of the reason given for the more relaxed, but nevertheless considerably restricted, use permitted in 1995.
Grounds 1 and 2
Conclusion
Lord Justice Patten: