CHANCERY DIVISION
London, WC2A 2LL |
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B e f o r e :
(sitting as a deputy judge of the High Court)
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(1) CGIS CITY PLAZA SHARES 1 LIMITED (2) CGIS CITY PLAZA SHARES 2 LIMITED |
Claimants |
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- and - |
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BRITEL FUND TRUSTEES LIMITED |
Defendant |
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Mr Michael Barnes QC (instructed by Nabarro LLP) for the Defendant
Hearing dates: 8 and 9 May 2012
JUDGMENT
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Crown Copyright ©
Mr William Trower QC:
Introduction
The Issues
The Factual Background
"TOGETHER WITH the warehouse and office premises erected thereon and known as numbers 20 21 22 Cannon Street and Temple Courts numbers 55/59 Temple Row Birmingham aforesaid AND TOGETHER WITH (a) the right for the Bank and its successors in title for all purposes in connection with the land and premises hereby conveyed to pass and repass over [the green land] to Temple Row aforesaid at all times until [the green land] shall be incorporated in the Public Highway and (b) full right and liberty for the Bank and its successors in title to build up to the extreme boundaries of the land hereby conveyed and of the land coloured blue on the said plan (hereinafter called "the blue land") the fee simple of which is already vested in the Bank to any height notwithstanding that any such building may interfere with light or air now or at any time hereinafter enjoyed by the buildings for the time being erected on any adjoining adjacent or neighbouring land owned by or vested in the Corporation "
"EXCEPTAND RESERVING unto the Corporation and the Successors in Title to the Corporation for the benefit of the adjoining land of the Corporation shown coloured green on the plan annexed hereto or such part or parts thereof as are capable of benefiting thereby (1) the right of lateral support from the land hereby conveyed for any building or buildings hereafter erected on the said land coloured green and (2) full right and liberty to build up to the extreme boundary of such adjoining land to any height notwithstanding that such buildings may interfere with the light or air now or at any time hereafter enjoyed by the buildings for the time being erected on the land hereby conveyed to the intent that all light or air at any time enjoyed by the land hereby conveyed or any buildings at any time thereon from or over the said adjoining land or any other part or parts thereof shall be deemed to be enjoyed by the leave or licence of the Corporation or their Successors in Title as the case may be".
a. on the upper ground floor level, an existing circular window was formed into a larger oblong window and a new three-light window was inserted;
b. on the first floor level, three new three-light windows were inserted; and
c. on the second floor level, three new three-light windows and a new single-light window were inserted in replacement of eight smaller windows.
a. the parties are agreed that a small square window on the upper ground floor, an oblong window on the first floor and all 62 of the windows on the third to ninth floors of the north-east façade were unaffected and enjoy prescriptive rights to light;
b. the parties are agreed that a new three-light window on the upper ground floor and the three new three-light windows on the first floor of the north-east façade are completely new apertures and do not enjoy prescriptive rights to light; and
c. there is a dispute about the extent to which, if at all, the oblong window on the upper ground floor and the four windows on the second floor of the north-east façade enjoy prescriptive rights to light.
Application of the 1832 Act
"When the access and use of light to and for any dwelling house, workshop, or other building shall have been actually enjoyed therewith for the full period of twenty years without interruption, the right thereto shall be deemed absolute and indefeasible, any local usage or custom to the contrary notwithstanding, unless it shall appear that the same was enjoyed by some consent or agreement expressly made or given for that purpose by deed of writing"
"... provisions designed to authorise the servient owner at a future date to carry out works or build as he pleases unrestricted by any easement of light in favour of the dominant land and notwithstanding any resultant injury to the light enjoyed... may be construed as consents or agreements permitting the enjoyment of light during the interim period and accordingly (as provided in section 3) preclude any easement arising by prescription under the Act. ''
"I consider that the phrase ''expressly made or given for that purpose " can be satisfied by an express provision in the relevant document that, on it's true construction according to normal principles, has the effect of rendering the enjoyment of light permissive or consensual, or capable of being terminated or interfered with by the adjoining owner, and is therefore inconsistent with the enjoyment becoming absolute and indefeasible after 20 years. "
"The right granted, namely a right to build notwithstanding light interference was a right which existed only in relation to "any adjoining adjacent or neighbouring land owned by or vested in the Corporation The said words do not allow interference with light once such adjoining land is vested in a third party successor and ceases to be vested in the Corporation. "
The Construction Arguments
"A covenant relating to any land of a covenantor or capable of being bound by him, shall, unless a contrary intention is expressed, be deemed to be made by the covenantor on behalf of himself his successors in title and the persons deriving title under him or them, and, subject as aforesaid, shall have effect as if such successors and other persons were expressed. "
"Every obligation which, on a proper construction of a deed, is imposed upon one of the parties thereto amounts to an express covenant by him to perform that obligation, provided the language shows an intention that there should be an agreement between the covenantor and the covenantee to do or not to do the particular thing referred to."
"My tentative view, therefore, coinciding, I think, with the judge's, is that section 79, where it applies, and subject always to any contrary intention, extends the number of persons whose acts or omissions are within the reach of the covenant in the sense of making equitable remedies available, provided that the other conditions for equity's intervention are satisfied. Where a restrictive covenant is expressed in the active voice, and section 79 applies, its normal effect is not to turn "A covenants with X that A will not build" into "A and B covenant with X that A will not build". Rather it is that "A (on behalf of himself and B) covenants with X that A (or, as the circumstances may require, B) will not build". "
"[21] The language used by the parties will often have more than one potential meaning. I would accept the submission made on behalf of the Appellants that the exercise of construction is essentially one unitary exercise in which the court must consider the language used and ascertain what a reasonable person, that is a person who has all the background knowledge which would reasonably have been available to the parties in the situation in which they were at the time of the contract, would have understood the parties to have meant. In doing so, the court must have regard to all the relevant surrounding circumstances. If there are two possible constructions, the court is entitled to prefer the construction which is consistent with business common sense and to reject the other. "
"[30] In my opinion Longmore LJ has there neatly summarised the correct approach to the problem. That approach is now supported by a significant body of authority. As stated in a little more detail in para 21 above, it is in essence that, where a term of a contract is open to more than one interpretation, it is generally appropriate to adopt the interpretation which is most consistent with business common sense. "
The Alterations Issue
"In my opinion the question to be considered is this, whether the alteration is of such a nature as to preclude the Plaintiff from alleging that he is using through the new apertures in the new wall the same cone of light, or a substantial part of that cone of light, which went to the old building. If that is established, although the right must be claimed in respect of a building, it may be claimed in respect of any building which is substantially enjoying a part, or the whole, of the light which went through the old aperture. "
"Mr. Barber endeavoured to persuade us that no right could be enjoyed after the lapse of twenty years if there had been any fluctuation in the measure of the access and use of the light during the twenty years. I cannot myself see that the statute warrants any such view. I should have thought that if there has been a use, for ten years out of the twenty, of a small window, which is enlarged during the remaining ten years of the twenty to double its size, the only right acquired in the twenty years was the right to have arrive for the use of your house the minimum portion of the pencils of light which had passed through this smaller structure; because you could not be said to have enjoyed the larger amount of light for twenty years when you had enjoyed it for ten years only - and I should pause for some time before coming to the conclusion that a man after using the smaller access of light for twenty years through the windows had lost his right to all access whatsoever merely because at some time during that period he had fruitlessly attempted to acquire an enjoyment of more. ... What the person who has acquired the right is entitled to is not the window but the free access of such an amount of light as has passed through that window. "
Conclusion