QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL |
||
B e f o r e :
____________________
ADRIAN JONES |
Appellant |
|
- and - |
||
(1) FRANK MURRELL (2) PENELOPE MAY MURRELL |
Respondents |
____________________
Nicholas Barnes (instructed by Henchleys) for the Respondents
Hearing date: 8 November 2016
____________________
Crown Copyright ©
Mrs Justice Lang :
"10.01 From my assessment of the Land Registry plans and the physical evidence on site, my Award is that the boundary between No 8 and No 10 Stanley Road is defined by the position of the previous timber marker post on the Stanley Road frontage, now indicated by the white line. The boundary runs from that point at a right-angle to the frontage to a point some 530 mm to the west of the west face of the rear wall pier so that the front and rear measurements of the plot are equal. The plot width is taken at 15.40 m but that should be re-checked by measurement from the white line to the wall of No. 6 Stanley Road. I have marked in red in Appendix 6, 7 & 8 the general boundary line to be fixed with site adjustments."
"31. The long and the short of it is that Mr Clarke was asked to produce a line. His conclusion did not take into account the 1965 conveyance because it was not before him and no one suggested that that itself vitiates the award. What has happened is that that the defendant now wishes to challenge the award on the ground that there is a mistake in ignoring the 1965 conveyance. However, both Mr Powell and Mr Clarke agreed that it did not change things, and Mr Powell's position statement subsequently is that that is what it says on the conveyance and issues are matters of law.
32. There is no evidence to say that there was a mistake being made by Mr Clarke. In fact, an explanation has been put forward by Mr Clarke, which suggests that an earlier title document is more relevant and that, somewhere along the line, 3 ft has gone missing. However, there is no evidence that the 3 ft belongs to the [Defendant[1]]. The long and the short of it is that, in my judgment again, this is not an appeal against Mr Clarke's award. It is not a question of whether Mr Clarke's award was wrong in its conclusion. The issue is whether or not he has carried out his instructions, which he has. There is therefore no ground for setting aside the award on that point."
"The expert's task was to reach a conclusion acting as a properly instructed demarcation surveyor. This exercise included considering and taking account of legal documents. The Claimant's title derives from the 1965 conveyance. The expert erred in law in concluding that as part of his role he could treat the 1965 conveyance (especially its plan) as erroneous."
"An issue has developed between Mr Jones and Mr and Mrs Murrell as to the correct and finite line of the boundary between the two properties.
Notwithstanding discussion between the parties, their advisers and John M Wade RICS on behalf of Mr Jones and David F. Smith MRICS on behalf of Mr and Mrs Murrell the parties have been unable to agree that correct boundary line.
In order to avoid litigation before the Courts, the parties have agreed that the issue of the correct line of the boundary should be referred to you as a third party independent Surveyor acting as an expert and they have all further agreed that by signing this letter of instruction … that they will be bound by your decision and will not dispute the same thereafter.
The parties further agree that they will immediately following the publication of your Report and award do all things jointly and severally reasonably required to register the defined line of the boundary with H.M. Land Registry. To this end, when producing your award we would ask that you also provide the parties with a Land Registry compliant plan that may be utilised in making the appropriate Land Registry Application."
"My general terms of reference are agreed and as asset out in your letter…..It is assumed that some title deed plans exist and one or both titles are recorded with the Land Registry. As I understand it, the issue is deciding whether the physical boundary now corresponds with the legal boundary and it is not proposed to change the legal boundary…
…..
The parties will decide what evidence they wish me to consider but clearly evidence should be reasonable and relevant to the issue in dispute. I expect to be provided with:
Title deeds and registered plans.
The building plans showing the alterations of No. 10.
The surveyor reports of Mr Wade and Mr Smith.
Any observations from the parties on the two surveyor reports, identifying what are agreed facts and observations and what is disputed.
Any other statement by way of facts, opinions and legal submissions that may be relevant to the issue.
Full copies of any reference material cited.
Any photographs showing the situation before, during or after the works."
"Re Davstone
11.5-3
In Re Davstone Estates Ltd's Leases, Manprop Ltd v O'Dell and Others [1969] 2 Ch. 378, leases provided that the certificate as to the lessor's expenses issued by the surveyor appointed by the lessor was to be "final and not subject to challenge in any manner whatsoever". Ungoed-Thomas J held:
(a) that the question of what expenses were within the ambit of the clause was a question of interpretation of the agreement and therefore a question of law, and this question was not a matter for decision by the surveyor; and
(b) that if (contrary to (a) above) the clause purported to confer on the surveyor the power to decide what expenses fell within the ambit of the clause, the clause was void as contrary to public policy, since it purported to oust the jurisdiction of the courts on questions of law.
…
Re Davstone not followed
11.5-4
Ungoed-Thomas J's decision that a clause conferring on an expert the exclusive power to decide issues of law would be contrary to public policy was not necessary to his decision, as he had held that the clause before him did not confer such a power. But this part of the decision in Re Davstone has not been followed in more recent cases. In Nikko Hotels (UK) Ltd v MEPC Plc [1991] 2 E.G.L.R. 103 Knox J was referred to Re Davstone in support of the proposition that the courts lean against excluding the courts from deciding questions of law. Knox J referred to the opinion of Lord Wright in FR Absalom Ltd v Great Western (London) Garden Village Society Ltd [1993] A.C. 592 at 615, as negativing any suggestion that there is a rule of public policy that prevents parties from agreeing to remit to the exclusive and final jurisdiction of an expert a pure question of law. He referred also to the legislative change in s.3 of the Arbitration Act 1979, allowing parties to agree to exclude the right to appeal from an arbitrator's award on a question of law, as showing that Parliament no longer considered it improper for citizens to exclude resort to the court in particular circumstances, He went on:
"I do not accept that there should be in today's climate any [leaning against excluding the court from deciding questions of law]. It seems to me that if there is a leaning to be discerned, it is in favour of allowing the parties to do what they wish and keeping the parties to their agreement, if they make one, that an expert, as opposed to the courts, should decide particular issues. The parties may very well have all sorts of very justifiable reasons for preferring an expert's decision in such a matter over the decision that might be reached in the courts, and I do not, myself, discern any particular policy of the law as being likely to lead to any different result in that regard." (at 109)
The judge therefore decided that the question of the interpretation of the words said to have been misconstrued was within the remit of the expert, and his decision was binding on the parties. Knox J's decision was approved by Chadwick LJ (with whom Sir Brian Neill agreed) in Brown v GIO Insurance Ltd [1998] Lloyd's Rep. I.R. 201 at 208:
"I am satisfied that there is no rule of public policy which prevents parties from agreeing to submit the final and conclusive decision of a third party some issue which involves questions of construction or of mixed fact and law."
In West of England Shipowners Mutual Insurance Association (Luxembourg) v Cristal Ltd (The Glacier Bay) [1996] 1 Lloyd's Rep. 390, at 377 Neill LJ referred to Nikko as showing that expert determination has become established as a "partial exception" to the rule against ouster of the jurisdiction of the court. The opinion of Lord Mustill in the House of Lords in Channel Tunnel Group Ltd v Balfour Beatty Construction also provides strong support for Knox J's approach that parties should be required to comply with their own agreement. Courts are now expressly required to encourage the parties to use an alternative dispute resolution procedure if the court considers that appropriate (CPR 1.4(2)(e)). The hostility to ousting the jurisdiction of the courts has been referred to as a "dated concept" (Yorkshire Water Services Ltd v Taylor Woodrow Construction Northern Ltd (2002) 90 Con. L.R. 139 per Judge Humphrey Lloyd QC at [18]) and in Inmarsat Ventures Plc v APR Ltd [Lawtel, May 15, 2002] Tomlinson J said this:
"It is clear to me that the parties have entrusted this question [of construction of the contract] to the exclusive competence of the appointed expert, and that this is a bargain which the law permits them to make. Indeed, I am inclined to think that, in these days, this is not simply a bargain which the law permits parties to make but it is one which the law positively encourages them to make."
It is clear from the above cases and others that a clause empowering an independent third party expert to decide a question of law will not be held to be void as being contrary to public policy….
The jurisdiction of the court cannot be totally excluded
11.5-5
While it is clear that a clause conferring on an expert the exclusive power to decide questions of law is not void, it does follow that, however wide the language of the clause, all decisions by the expert could be unchallengeable on any basis, including decisions outside the expert's jurisdiction or decisions obtained as a result of fraud or collusion. As the Court of Appeal confirmed in Barclays Bank Plc v Nylon Capital LLP, the court always has power to decide whether the expert has exceeded the ambit of his jurisdiction [2011] 2 Lloyd's Rep 347, [2011] EWCA Civ 826 at [23]. Thus the principle that the jurisdiction of the court cannot be totally ousted still applies, to the limited extent that the court, despite the apparent width of the wording of an expert determination clause, always retains jurisdiction to decide whether the expert has exceeded his jurisdiction. It would not be necessary to "sever" the clause, in the manner rejected by Ungoed-Thomas J in Re Davstone, as the court can decide as a matter of construction that the only decisions which cannot be challenged are those properly made by the expert within the limits of the expert's decision-making authority. It is likely that a clause stating that the certificate cannot be set aside even on the ground of fraud or collusion would be ineffective….."
"14.3 GROUNDS FOR CHALLENGE
14.3-1 Where a contract provides for a matter to be decided by an expert, the decision is binding on the parties because that is what they themselves have determined should be the position. It is of course necessary that the expert's decision should be a decision which is within the expert's jurisdiction … and which has been made in accordance with the terms of the contract, and the decision will not be binding on the parties if in reaching that decision the expert has departed from his instructions to a material extent. Older cases were decided on the wider basis that the court could interfere in cases where the expert had made a mistake … but this no longer represents the law. …
14.4 EXCEEDING JURISDICTION
14.4-1 The decision of the expert can be challenged if it is a decision which the expert did not have jurisdiction to reach. As explained in Chapter 11, there are different ways in which an expert's decision may be found to have been outside his decision-making powers:
- the expert determination clause may expressly confer on the expert jurisdiction to decide a particular kind of dispute, and the dispute may involve a dispute of a different kind …; and
- the court may find that the expert determination clause, properly interpreted implicitly did not confer on the expert jurisdiction to decide some or all of the questions of law which arose, including disputes about the meaning of a term of the contract which is relevant to the matter to be determined … or disputes about the meaning of a term containing a condition precedent to the expert's being conferred with jurisdiction ….
If the court considers that the expert has reached a wrong decision on a question of law, the court might decide (instead of reaching a decision on the basis of lack of jurisdiction) that the particular expert determination clause implicitly required the expert to reach a correct decision in accordance with relevant legal principles, and that a decision based on incorrect legal principles involved failure to carry out the task which the expert was required to carry out and was, as a result, based on a material departure from instructions …."
"14.9 OTHER POINTS OF LAW
14.9-1 The approach applicable to questions of interpretation of the agreement also applies to other points of law, unless the agreement provides otherwise. Suppose the expert's reasons made it clear that the expert reached a decision on the basis of what he considered to be fair, without regard to whether or not the legal position might be different. Where, as is usually the case, the contract is interpreted as requiring the expert to reach a decision which is in accordance with English law, a clear failure to apply English law at all is likely to be considered to be a departure from the expert's instructions, so that the expert's decision will be held to be of no effect."
"22. In Scarfe v Adams, this court warned conveyancers that, where a property was divided, it was absolutely essential that the transfer or conveyance should describe the property to be conveyed with sufficient particularity and precision so that there was no room for doubt about the boundaries of each. As Cumming-Bruce LJ in that case said:—
"The facts of the present case are really very simple, but I hope that this judgment will be understood by every conveyancing solicitor in the land as giving them warning, loud and clear, that a conveyancing technique which may been effective in the old days to convey large property from one vendor to one purchaser will lead to nothing but trouble, disputes and expensive litigation if applied to the sale to separate purchasers of a single house and its curtilage divided into separate parts. For such purposes it is absolutely essential that each parcel conveyed shall be described in the conveyance or transfer deed with such particularity and precision that there is no room for doubt about the boundaries of each, and for such purposes if a plan is intended to control the description, an Ordnance map on a scale of 1:2500 is worse than useless. The plan or other drawing bound up with the deed must be on such a large scale that it clearly shown with precision where each boundary runs. In my view the parties to this appeal are the victims of sloppy conveyancing for which the professional advisers of vendor and purchasers appear to bear the responsibility. We are not concerned in this appeal with determining or apportioning that responsibility. This court has to try to reduce to order the confusion created by the conveyancers."
23. In this case, the judge was rightly critical of what he also termed "sloppy conveyancing". I agree with his comment that this case illustrates the time and trouble which can be caused by sloppy conveyancing. It would have been far more satisfactory to the vendor, Mrs Joyce, if the boundary had been fixed in a proper manner before she sold 6 Chanton Drive to Mr Rigolli's predecessor in title. This case is an object lesson for conveyancers. Boundary disputes are costly in terms of the money, court resources, and the strain they impose on the parties individually and in their relations as neighbours. It is in the interests of consumers of legal services and the public generally that conveyancers should take careful note of the warnings about imprecise boundaries given and now repeated by this court in several cases."
"10.11 I am satisfied that Mr Clarke has approached the boundary matter with an open mind. As a Chartered Building Surveyor his specialty and background is different to mine as a Chartered Land Surveyor and so we are bound to have differing approaches and even produce differing results. His methodology certainly cannot be described as "perverse and unacceptable". Mr Clarke has now gone on to examine the recently obtained paper-title documents, as have I, and we agree with the result (having independently plotted the dimensions on different base topographic surveys)."
"1. Our Joint Report was produced on 17th November 2014. Signed by both of us.
2. On or about 20th November 2014, Mr Perkins contacted me to say that we had not paid enough attention to the "47ft matter" in the Joint Report. I responded by saying that this could either be dealt with by a Joint Addendum or by him presenting us both with written questions. After some back-and-forth with Mr Perkins, a suggested Amendment was prepared and I sent this to you (unsigned) on 21st November 2014 and asked that you add your comments to it. You did not wish to do so and so the document remained unsigned and with no authority.
3. On 26th November I received written questions from Mr Perkins.
4. I answered (and signed) the written questions on 28th November 2014.
5. You answered (and signed) the written questions on 5th December 2014.
….."
Mr Powell subsequently provided a 'position statement' dated 5 March 2015.
Note 1 It was common ground that the Judge mistakenly referred to the Claimant here instead of the Defendant [Back]