[2000] EWLands LCA_88_1999 (07 February 2000)
LCA/88/1999
LANDS TRIBUNAL ACT 1949
COMPENSATION – Disturbance – rehousing following Closing Order – claim for disputed items – kennelling costs – loss of garden equipment & plants, cooker and fridge, use of garage – loss on forced sale of car – temporary accommodation –– increased travel costs - interest on loans – expenses – Land Compensation Act 1973 Section 38. Compensation of £400 awarded.
IN THE MATTER of a NOTICE OF REFERENCE
BETWEEN JACQUELINE ADAM Claimant
and
WOKING BOROUGH COUNCIL Respondent
Re: River House, Pyrford Place, Pyrford, Surrey
Tribunal Member: P.R. Francis FRICS
Sitting at: 48/49 Chancery Lane, London WC2A 1JR
on
10 January 2000
The following cases are referred to in this decision:
Nolan v Sheffield Metropolitan District Council [1979] 38 P.&C.R. 741. LT.
Allen v Doncaster Metropolitan Borough Council (1997) 73 P.&C.R. 98.LT.
Glasgow Corporation v Anderson 1976 S.L.T.225. Ct. of Sess.
Harvey v Crawley Development Corporation [1957] 1 QB 485.
Service Welding Limited v Tyne & Wear County Council [1979] 250 EG 1291.
Barker v Hull City Council [1985] 275 E.G. 157.
Bryce v Motherwell District Council [1980] RVR 282.
Miss Jacqueline Adam, the claimant, appeared in person.
Miss Lorna Bowry, assistant solicitor representing the Borough Secretary and Solicitor, Woking Borough Council for the respondent.
DECISION
3.1. The subject property comprised a self-contained flat (one of three) in a Grade II listed brick and tiled summerhouse, located on a riverbank within the grounds of Pyrford Place, itself a large former Manor House set in approximately ten acres of grounds. The flat contained hall, living room, kitchen/breakfast room, bedroom, bathroom and store. There was an area of private garden together with a garage in a separate block to which the occupier had exclusive use.
3.2 The claimant had occupied the subject property as a protected tenant for some 13 years. In 1990 the whole estate was sold to developers who obtained planning permission for the demolition of Pyrford Place and the construction of fifteen flats. Redevelopment of the subject property along with the adjacent summerhouse was also considered, but was not possible then due to the tenancies.
3.3 Following the Council becoming aware, in 1993, that the property (and the adjacent Riverside Cottage – which was also let to a protected tenant, Miss Thompson) had become unfit for human habitation, and after the serving and subsequent withdrawal of Repairs Notices, a Closing Order was made on 7 July 1994 and served upon the landlord who then served Notices to Quit upon the claimant and Miss Thompson.
3.4 The claimant objected to the Order, and the Council was advised, in September 1994, of her intention to apply for a judicial review. On 27 September 1994, the Council's Special Projects Adviser wrote to both the claimant and Miss Thompson outlining the re-housing options available. These options included Council rented accommodation, the opportunity to buy into a shared ownership scheme (for which an ex-gratia payment of £7,500 in addition to home loss and disturbance payments was available), or private rented accommodation. Miss Thompson accepted the shared ownership option, the ex-gratia payment being used towards the purchase. Home loss and disturbance payments totalling £2,500 were paid direct to Miss Thompson. The Council wrote to the claimant again on 14 October 1994 and she responded to the letters on 20 October 1994 stating that "it would be sensible if I contact you once my legal proceedings are concluded".
3.5 In May 1995 the Council was advised that the landlord had been successful in obtaining an Order for Possession against the claimant, and in June 1995 the claimant's newly appointed solicitors advised the Council that her earlier application for a Judicial review had been dismissed, and requested that the Council confirm they have a duty to re-house their client. This was confirmed, the Council accepting they had a residual duty under Section 39 (1) of the Land Compensation Act 1973 ("the 1973 Act").
3.6 In June 1995 the claimant was advised that the shared ownership option was no longer available, and on 20 June, was offered a one bedroom, first floor flat at 123a Dartmouth Avenue, Sheerwater, Surrey, about three miles from the subject property, and which would be available to view from 27 June. This was the only property available (other than smaller bed-sits) at the time. The claimant viewed the property on 6 July 1995, two days after vacating the subject property to temporary accommodation, and advised the Council it was not acceptable due to the fact that she had asthma and her dog, which was arthritic, would not be able to climb the stairs. She required a ground floor property with a garden, but such was unavailable.
3.7 On 11 July 1995, the claimant's solicitors confirmed to the Council that she would accept the flat, but due to problems over unpaid electricity bills from the former occupier, it was not ready for occupation. The claimant moved in on 17 July, the tenancy commencing from that date.
3.8 A home loss payment of £1,500 was paid to the claimant on 1 August 1995, and in April 1999 compensation for various items of disturbance was agreed at £1,732.57 plus statutory interest, ninety per cent (£1,551.31 plus interest) being paid in May 1999.
Issues
5.1 Kennelling costs
5.2 Loss of garden equipment
5.3 Costs of temporary accommodation
5.4 Loss on forced sale of car
5.5 Loss of cooker and refrigerator
5.6 Increased travel costs
5.7 Loss of garage
5.8 Disbursements/expenses
5.9 Interest on loans
Kennelling costs.
Decision
"any loss sustained by a dispossessed owner (at all events one who occupies his house) which flows from a compulsory acquisition may properly be regarded as the subject of compensation for disturbance, provided first that it is not too remote and, second, that it is the natural and reasonable consequence of the dispossession of the owner".
There is also the duty to mitigate. The principles for recovery of damages at common law in relation to this are set out in McGregor on Damages as:
a) a claimant must take all reasonable steps to mitigate the loss to him consequent upon the eviction and cannot claim compensation for avoidable loss;
b) the onus is on the acquiring authority to prove that the claimant has failed reasonably to mitigate his loss;
c) a claimant is only required to act reasonably and the standard of reasonableness is not high;
d) a claimant will not be prejudiced by his financial inability to take steps in mitigation.
Loss of Garden Equipment.
Decision
"when an occupier, whether residential or business, does, in consequence of disturbance, rehouse himself in alternative accommodation, prima facie he is not entitled to recover, by way of compensation for disturbance or otherwise, any part of the purchase price which he pays for the alternative accommodation to which he removes, whether that accommodation is better or worse than, or equivalent to, the property from which he is being evicted. The reason for that is that there is a presumption in law, albeit a rebuttable assumption, that the purchase price paid for the new premises is something for which the claimant has received value for money. If he has made a good bargain and acquired premises which have a value in excess of what he has paid for them, that is not something for which the acquiring authority is entitled to any credit. If the claimant has made a bad bargain and has paid a great deal more for the new premises to which he is moving than they are really worth, that is not something for which the acquiring authority can be properly charged".
The parallel to this claim will be evident. As to the claimant's reference to the Scottish cases, I fail to see the parallel as, in those cases, it had been held that the claimants could have chosen to move to properties without gardens and the need for the tools was therefore an exercise of choice, and not a consequence of the displacement.
Temporary Accommodation.
Decision
Loss on Forced Sale of Car.
Decision.
" …… I am unable to award any compensation under this head. This Tribunal concerns itself, and can only concern itself, with "damage" which is susceptible of quantification in money terms".
and later in the decision, dismissing a claim for costs relating to an appeal said:
"….but I would add that the claimant failed to produce any details, or supporting evidence such as receipted accounts, to substantiate that the stated expenditure had in fact been incurred".
Miss Adam had no evidence to support her contention that, as a result of a need to sell her car very quickly, she lost £700.
Loss of Cooker and Refrigerator.
"that the disturbance payment may include reasonable expenses, reasonably incurred as a direct and natural consequence of, and in, the compulsory removing, in addition to the expenses strictly referable to 'the removal' itself. In applying the subsection, the question of whether a particular expense claimed is or is not within the ambit of the disturbance payment will be one of circumstance and degree"
Decision.
Increased Travel Costs.
Decision.
Loss of Garage.
Decision.
Disbursements/Expenses.
Decision.
Interest on Loans.
Decision.
DATED:
(Signed) P.R.Francis FRICS.