ATTORNEY-GENERAL APPELLANT; AND DE KEYSER'S ROYAL HOTEL, LIMITED
RESPONDENTS.
1920. May 10. LORD DUNEDIN (after
stating the facts). My Lords, I shall mention first, in order to put it aside,
one argument put forward by the respondents. It was that the Crown should pay a
reasonable sum for use and occupation of the premises upon the ground of an
implied contract, the entry of the Crown to the premises having been permitted
by the Receiver and taken by the Crown in virtue of the Receiver's permission. The simple answer to this
argument is that the facts as above recited do not permit of its application. In
any case of implied contract there must be implied assent to a contract on both
sides. Here there was no such assent. There was no room for doubt as to each
party's position. The Crown took as a right, basing that right specifically on
the Defence of the Realm Act. The Receiver did not offer physical resistance to
the taking, and was content to facilitate the taking. He emphatically reserved
his rights, and gave clear notice that he maintained that the Crown was wrong in
its contention, and that no case for taking under the Defence of the Realm Act
had arisen: in other words, that the Crown had, under the circumstances,
according to their proposals, unlawfully taken. To spell out of this attitude on
either side an implied contract is to my mind a sheer impossibility.
Now, that the act of taking by the Crown
was in itself legal is necessarily admitted by both sides. It is the basis of
the case for the Crown, who said at the time that they took under the Defence of
the Realm Act, and now add in argument that, whether that was so or not, they
took de facto, and can justify that taking under the powers of the prerogative.
It must necessarily be admitted by the respondents, for if taking in itself was
purely illegal, then it would be a tort not committed by the Crown, who cannot
commit a tort, but by the officers of the Crown, and the petition of right would
not lie. The question in the case is therefore narrowed to one point and one
point only: the Crown having legally taken, is it bound to pay compensation ex
lege, or is the offer to pay compensation ex gratia, as that compensation may be
fixed by the Losses Commission, a sufficient offer and an answer to all
demands?
My Lords, I have already quoted the
letter of May 1, which shows that the War Office propose to take possession of
the hotel under the Defence of the Realm Regulations, but in the argument in the
Court below and before your Lordships the taking has been justified by the power
of the prerogative alone, and there has been a very exhaustive citation of
authority on the powers of the Crown in virtue of the prerogative.
I do not think it necessary to examine
and comment on the various cases cited. The foundations of
the contention are to be found in the concessions made in the speech of Mr. St.
John in Hampden's Case 3 How St Tr 825 , and in the opinion of the consulted judges in the Saltpetre Case 12 Rep 12 — I do not quote them, for they are fully quoted in the judgment of the
Courts below — and in the opinions of the learned judges in In re A Petition of
Right. [1915] 3 KB 649 The most that could be taken from them is that the King, as suprema
potestas endowed with the right and duty of protecting the Realm, is for the
purpose of the defence of the realm in times of danger entitled to take any
man's property, and that the texts give no certain sound as to whether this
right to take is accompanied by an obligation to make compensation to him whose
property is taken. In view of this silence it is but natural to inquire what has
been the practice in the past. An inquiry as to this was instituted in this
case, and there has been placed before your Lordships a volume of extracts from
the various records. The search is admittedly not exhaustive, but it is
sufficient to be illustrative. The learned Master of the Rolls in his judgment
has analysed the documents produced. He has divided the time occupied by the
search into three periods — the first prior to 1788, then from 1788 to 1798, and
the third subsequent to 1798. The first period contained instances of the
acquiral of private property for the purposes of defence by private negotiation,
in all of which, it being a matter of negotiation, there is reference to the
payment to be offered for the land taken. With the second period we begin the
series of statutes which authorize the taking of lands, and make provision for
the assessment of compensation, the statutes being, however, of a local and not
of a general character, dealing each with the particular lands proposed to be
acquired. The third period begins with the introduction of general statutes not
directed to the acquisition of particular lands, and again making provision for
the assessment and payment of compensation.
I shall refer to the statutes presently,
but, speaking generally, what can be gathered from the records as a matter of practice seems to resolve itself into
this. There is a universal practice of payment resting on bargain before 1708,
and on statutory power and provision after 1708. On the other hand, there is no
mention of a claim made in respect of land taken under the prerogative, for the
acquisition of which there was neither bargain nor statutory sanction. Nor is
there any proof that any such acquisition had taken place. My Lords, I do not
think that from this usage of payment there can be imposed on the Crown a
customary obligation to pay, for once the taking itself is admitted to be as of
right the usage of payment so far as not resting on statutory provision is
equally consistent with a payment ex lege and a payment ex gratia. On the other
hand, I think it is admissible to consider the statutes in the light of the
admitted custom to pay, for, in the face of a custom of payment, it is not
surprising that there should be consent on the part of the Crown that this
branch of the prerogative should be regulated by statute. It is just here that
the full investigation into the statutory history which has been made in this
case, and of which the Court of Appeal and your Lordships have had the
advantage, serves to dislodge a view which I cannot help thinking was very
influential in determining the judgment of the Court of Appeal in the case of In
re A Petition of Right. [1915] 3 KB 649 Digressing for the moment to that case, I am bound to say that I do not
think that this case can be distinguished from that in essential particulars.
The existence of a state of war is common to both. As to the necessity for the
taking over of the particular subject, the Crown authorities must be the judge
of that, and the evidence as to the necessity for the occupation of these
premises in the opinion of the Crown advisers is just as distinct and
uncontradicted in this case as it was in that. I confess that had I been sitting
in the Court of Appeal I should have held the same view as was expressed by
Peterson J. — namely, that it was ruled by the case of In re A Petition of
Right. [1915] 3 KB 649 This, however, is immaterial, for In re A Petition of Right [1915] 3 KB 649 is not binding on this House, and it would have been equally proper for
the learned Master of the Rolls, Sir Charles Swinfen Eady, and for Warrington L.J., who had
obviously changed his opinion on further argument, to give your Lordships the
benefit of the opinions they had come to on the merits, even if, being unable to
distinguish between the two cases, their judgment had been formally given to the
opposite effect from what it was.
Now the view which I think prevailed in
In re A Petition of Right [1915] 3 KB 649 was that the prerogative gives a right to take for use of the moment in
a time of emergency, that when you come to the Defence Acts of 1803 and 1842 you
find a code for the taking of land permanently in times of peace as well as of
war, and that consequently the two systems could well stand side by side; and
then, as there was no direct mention of the prerogative in the statutes, you
were assisted by the general doctrine that the Crown is not bound by a statute
unless specially mentioned. That in cases where the burden or tax is imposed the
Crown must be specifically mentioned no one doubts. Instances are given by the
Master of the Rolls in the cases of Wheaton v. Maple
[1893] 3 Ch 48, 64 and Coomber v. Berks Justices 9 App Cas 61, 66 , and there are many others. None the less, it is equally certain that
if the whole ground of something which could be done by the prerogative is
covered by the statute, it is the statute that rules. On this point I think the
observation of the learned Master of the Rolls is unanswerable. He says: “What
use would there be in imposing limitations, if the Crown could at its pleasure
disregard them and fall back on prerogative?”
The prerogative is defined by a learned
constitutional writer as “The residue of discretionary or arbitrary authority
which at any given time is legally left in the hands of the Crown.” Inasmuch as
the Crown is a party to every Act of Parliament it is logical enough to consider
that when the Act deals with something which before the Act could be effected by
the prerogative, and specially empowers the Crown to do the same thing, but
subject to conditions, the Crown assents to that, and by that Act, to the
prerogative being curtailed.
I have read very carefully and
considered the judgments delivered in In re A Petition of Right [1915] 3 KB 649 , and it is, I think, apparent that the view of the series of statutes
there presented was that the general statutes had their inception for the
purpose of permanent acquisition in times of peace as well as of war, but in the
fuller citation that has been made in this case we find that this is not so. It
is somewhat significant that in the first statute of all dealing with the
acquisition of land, 7 Anne, c. 26, we have a reference to the usual methods
that had been taken to prevent extortionate demands, and the usual methods are
said to be a valuation by jury. It is also significant that in the whole
statutory series there is no trace of any claim to take under the prerogative
and not to pay. On the contrary, for instance, in 31 Geo. 2, c. 39, date 1757,
we find during the war (that is, the Seven Years' War) land had actually been
taken, that extravagant claims were feared, and then that is followed by a
statutory provision for vesting the lands taken in trustees till the price may
be paid as fixed by assessment by jury, and then on payment the trustees are to
hold for His Majesty. But the real point seems to me to be that we find that
even before the idea of a general Act, that is to say, when the Acts were
limited in time to the continuance of a war, there is provision made for a
temporary taking, and for payment; or, in other words, for getting by statute,
with the concomitant obligation of payment, that very temporary possession
which, according to the view expressed above, it was the function of the
prerogative to provide free of charge, leaving it to statute to provide for a
permanent acquisition. Thus, in 38 Geo. 3, c. 27, date 1798, in the middle of
the war with the revolutionary Government of France which began in February,
1793, and ended with the Peace of Amiens in March, 1802, we find in s. 10 powers
given to His Majesty to authorize a general officer to mark out any piece of
ground wanted for the public service, and to treat with the owner thereof or any
person or persons having any interest therein “for the possession or use
thereof, during such time as the exigence of the service shall require,” and, in case of refusal, to take the land and
get the value assessed by jury. This Act was limited to the continuance of the
war. War again broke out against France on April 29, 1803, Napoleon being First
Consul for life, and 43 Geo. 3, c. 55, June, 1803, repeated the provisions of 38
Geo. 3, c. 27. It again was limited to the duration of “the present hostilities
with France.” Then in 1804, there being still war with France and a prospect of
invasion by Napoleon, 44 Geo. 3, c. 95, was passed. This had no temporary
clause. It recited that doubts had arisen as to whether the Act of 1803
authorized permanent acquisition, and it proceeded to provide for temporary
taking, using the old phrase “for such time as the exigence of the public
service shall require,” and contained the old arrangements for assessment of the
payment by a jury. This Act was the forerunner of, and was superseded by, the
existing Act of 1842, which again repeats the words “during such time as the
exigence of the public service shall require.” This Act was passed in time of
peace. It thus appears that the inception of the legislation was during that
very period, and connected with that very requirement which, if the argument in
In re A Petition of Right [1915] 3 KB 649 was sound, was satisfied by the powers of the prerogative alone — that
is to say, it dealt with temporary acquisition during a period of war, and the
Act of 1842 only continued that legislation. It is therefore impossible, in my
opinion, to say that the whole field of the prerogative in the matter of the
acquisition of land or rights therein was not covered by the Act of 1842. It
follows from what I have said above that there is no room for asserting an
unrestricted prerogative right as existing alongside with the statutory powers
authorizing the Crown to acquire on certain terms. The conclusion is that the
Crown could not take the petitioners' premises by the powers of the prerogative
alone.
I now come to the Defence Act of 1914,
the Act under the powers of which the Crown professed to take. Now, just as the
statutes must be interpreted in view of what the rights and practices antecedent
to them had been, so we must look at the Defence of the Realm Act in view
of the law as it stood previous to its passing. The Defence of the Realm
Consolidation Act, 1914, passed on November 27, 1914, declares by s. 1, sub-s.
1, that His Majesty has power during the continuance of the war to issue
regulations for securing the public safety and the defence of the realm.
Sub-sect. 2 says that any such regulations may provide for the suspension of any
restrictions on the acquisition or user of land …. under the Defence Acts, 1842
to 1875. Pursuant to this Act a Regulation was issued on November 28, 1914,
which empowered the competent naval or military authority, or any person
authorized by him, “where for the purpose of securing the public safety or the
defence of the realm it is necessary so to do” (sub-s. (a))
to take possession of any land, and (sub-s. (b)) to take
possession of any buildings. It is clear that under these sub-sections the
taking possession of De Keyser's Hotel was warranted, but there was no necessity
for the public safety or the defence of the realm that payment should not be
made, such payment being, on the hypothesis that the news above expressed as to
the Act of 1842 were sound, a necessary concomitant to taking. The very
structure of the Act points the same way. Why provide by sub-s. 2 for the
suspension of restrictions under the existing Act which allowed of taking land,
if a mere taking simpliciter was all that was wanted? The thing may be tested in
another way. Suppose the Regulation as to taking land had had added to it the
words “without making any payment therefor.” That would have left no doubt as to
the Regulation. The question would have been, was it ultra vires? It could only
be intra vires if it were necessary for the safety of the realm, and that is the
same question over again, and again the existence of the powers of sub-s. 2 of
the Act can be appealed to. The argument is practically analogous to the
argument that prevailed, and I think rightly prevailed, in the judgment of
Salter J. in the case of Newcastle Breweries Co. v. Rex 36 Times LR 276 , where the taking of the goods was held a necessity, but the extrusion
of the subject, where goods were taken, from the King's Courts in the event of non-agreement as to
value was not. It will have been noticed that the Regulation which authorizes
the taking of land says nothing about doing away with restrictions or, in other
words, does not specifically purport to be made in virtue of sub-s. 2 of the
Act. None the less, it may well be held to be virtually so. There are various
restrictions as to the initiation of proceedings, notices, etc., which I have
not thought it necessary to quote. These may be taken as swept away by the
simple authority to take. There remains the question whether the obligation to
pay can be considered as a restriction, and also swept away. I think it cannot.
The word “restriction” seems to me appropriate to the various provisions as to
notice, but not at all appropriate to the obligation to make compensation.
There are two other matters as to which
I should say a few words. The learned Attorney-General laid great stress on the
words of s. 1 of the Defence of the Realm (Acquisition of Land) Act, 1916,
which, providing for a continuation of powers after the war, begins thus:—
“Where, during the course of or within
the week immediately preceding the commencement of the present war, possession
has been taken of any land by or on behalf of any Government Department for
purposes connected with the present war, whether in exercise or purported
exercise of any prerogative right of His Majesty, or of any powers conferred by
or under any enactment relating to the defence of the realm, or by agreement, or
otherwise, it shall be lawful, etc.”
This, he argued, was a statutory
confirmation and declaration of the power to take under the prerogative. So it
may be, but, if the views expressed in the first part of my remarks are right,
it leaves those views untouched. And further, the words used really amount to
this. They do not in any way define the rights which the Crown has to take, but
they say, if the Crown has de facto taken quocunque modo, then it shall be
lawful as thereafter provided to continue possession.
The other point is as to the remedy. I
am of opinion that a Petition of Right lies, for it will lie when in consequence
of what has been legally done any resulting
obligation emerges on behalf of the subject. The Petition of Right does no more
and no less than to allow the subject in such cases to sue the Crown. It is
otherwise when the obligation arises from tort, but, as already insisted on,
what was done here, so far as the taking of the premises was concerned, was
perfectly legal.
On the whole matter I am therefore of
opinion that the judgment of the Court of Appeal was right and ought to be
affirmed, and the Appeal dismissed with costs.
LORD ATKINSON. My Lords, the facts have
been already stated by my noble and learned friend who has preceded me. If
anything be clear in this important case, it is, on the correspondence already
referred to, this: that the Army Council, acting through their agent, Captain R.
C. Coles, did not claim to take possession of the respondents' hotel by virtue
of the unrestricted and unqualified prerogative of the Crown. On the contrary,
they justified their action, and claimed the right to do what they, in fact,
did, by virtue of the power and authority conferred upon them by the legislative
provision of the Defence of the Realm Regulation in force on May 1, 1916.
It is, I think, equally clear that the
respondents never admitted that the Crown possessed, under these Regulations,
the power it claimed to exercise. This is apparent from Mr. Whinney's letters of
May 3 and 5, 1916.
In only three ways, it would appear to
me, could the respondents resist or oppose the action of the Crown: (1.) By
physical force — which is, of course, impossible; (2.) By immediate proceedings
at law; and (3.) by protest. They adopted the last named of these methods, but,
subject to that, yielded only to force majeure. Mr. Whinney no doubt informed
Captain Coles that, notwithstanding what he had said, all those interested in
the hotel felt that every assistance should be given to the military
authorities, and that no steps should be taken which would cause inconvenience
or delay, and, further, that he had caused notice to be given to all the guests
in the hotel, and would hand over possession in accordance with the notice
(i.e., the letter of May 1, 1916). Possession was handed over accordingly on May 8. It
appears to me impossible, on these facts, to hold that this handing over by the
respondents of the possession of their hotel was not in reality done in
invitum.
The respondents having done this, and
expressly preserved all their legal rights, they, like good citizens, without
prejudice to those rights, facilitated these officers in taking over the
possession in order to help the Aerial Service to be better carried on. If
anything resembling what has taken place in this case had taken place between
two citizens, it is obvious that the most appropriate remedy of the party
aggrieved would have been to sue in trespass for damages. The respondents cannot
proceed by Petition of Right to get redress for a tort like trespass, for the
King can do no wrong, and the principle of respondeat superior does not apply to
the Crown where a wrong is committed by its officers. It by no means follows,
however, that because the respondents cannot sue in tort by petition of right
they can sue in contract for compensation for the use and occupation of their
premises.
It is no doubt quite true that a private
person, or in some instances a public body, can, as it is phrased, waive a tort
and sue in contract, but that can only be true where both of these remedies are
open to him or it. The aggrieved party may then elect which remedy to pursue,
and this, though both causes of action arise out of the same transaction. The
case of a passenger in a railway train who takes and pays for a ticket to be
carried to his destination and is injured in transitu by the negligence of the
company's servants is a familiar instance of this. He can sue the company in
either form of action. That, however, of course does not apply to a case where a
trespasser enters into and holds possession of a man's land against his will,
while purporting to act under a power the existence of which the owner
challenges, and against the exercise of which he protests.
The Court of Appeal, as I understand
their judgment, held that the Crown could be proceeded against by Petition of
Right to recover compensation in use and occupation for the breach of its
contract to pay for the use and enjoyment of the respondents' hotel. And several
authorities had been cited to support this view.
Differing — as I do — on this point,
from the views of the two learned Lord Justices who constituted the majority,
and entertaining — as I do — the most sincere respect for the survivor of those
two Lord Justices, as well as for the memory of the distinguished Lord Justice
since unhappily deceased, I feel bound to justify my dissent from their views by
an examination of the authorities on the point, at greater length, perhaps, than
might otherwise be excusable. These authorities establish, I think, this
proposition, that, in order to recover in the ordinary action for use and
occupation, the plaintiff must prove the existence of an agreement, express or
implied, between him and the defendant, to the effect that the latter shall at
least be the tenant at will of the former of the lands or premises occupied, and
shall pay for that occupation. In Phillips v. Homfray 24 Ch D 439, 461 Bowen L.J., as he then was, said:—
“Actions for use and occupation,
according to the better opinion, have been confined to the class of cases where
defendant is not a trespasser setting up an adverse title, and where there are
no circumstances that negative the implication of a contract: see Churchward v.
Ford 2 H & N 446 , per Pollock C.B.; Birch v. Wright. (1786) 1 TR 378 No doubt the mere enjoyment by one man of another man's property, real
or personal, may be had under such circumstances as leave still open, as a
reasonable inference, the presumption that it is taken on the terms of payment,
just as a man who takes a bun from the refreshment counter at a railway station,
takes it on the implied promise to pay for it.”
A familiar example of the class of cases
in which the circumstances negative the implication of such a contract is where
a purchaser enters with the owner's permission into possession of property sold
under a contract of sale, the purchase of which subsequently goes off. In Howard
v. Shaw (1841) 8 M & W 118, 122 Parke B.
“If the defendant had entered under an
agreement for a lease, there is no doubt he would have
been a tenant at will until the lease was granted. Here it may be assumed that
he entered into possession under the agreement for sale, which was to have been
carried into effect by the conveyance. …. I quite agree, however, that while the
agreement subsisted, the defendant was not bound to pay a compensation for the
occupation of the land, because the contract shews that he was to occupy without
compensation …. but still he was tenant at will. When the agreement went off, he
still continued tenant at will; but after that, there was nothing to shew that
he was not to pay a compensation for his occupation, because the stipulated
compensation, by payment of the purchase money, was at an end. From that time,
therefore, he became liable to be sued for such compensation, in an action for
we and occupation.”
Alderson B. gave judgment to the like
effect, as also did Palles C.B. in Markey v. Coote. (1876) IR 10 CL 149
Even on the assumption that the Crown
went into possession of the hotel, not by virtue of a legislative title, or by
force of a paramount power, but by the permission of the respondents, which, for
the reason already given, I think it impossible to hold, I am at a loss to see
how an agreement binding at law to pay compensation for the occupation can be
inferred, in face of the distinct refusal of Captain Coles in his letter of May
1, 1916, to pay any compensation whatever ex debito, but merely ex grata.
In Churchward v. Ford 2 H & N 446, 448 Pollock C.B. in delivering judgment said:—
“There are authorities to the effect
that where nothing appears except that one person is entitled to land which
another has occupied and enjoyed, an action for use and occupation may be
maintained, because a contract may be implied. That explains the decision in
Hellier v. Sillcox. (1850) 19 LJ (QB) 295 But the taking possession as of right by a disseisor could not be
turned into a contract, on the notion that the trespass may be waived and some
imaginary contract substituted. Here the defendant
was in possession claiming title under Mrs. Foss with whom he in fact
contracted. It cannot therefore be implied that there was a contract with the
plaintiffs.”
It would certainly appear to me that in
this case the position of the Crown in reference to this matter resembles more
closely that of the disseisor whom Pollock C.B. mentioned than it does that of a
person entering with the permission of the owner of the premises. I now turn to
the authorities relied upon by the Court of Appeal.
The first of these is the case of the
Marquis Camden v. Batterbury (1860) 7 CB (NS) 864 , on appeal from the common pleas. There a certain builder named J. W.
Elliott entered into agreement with the landlord of certain lands, the plaintiff
in the action, to build certain houses on these lands, the plaintiff agreeing,
as soon as one or more of these houses should be erected, to make a lease to
Elliott for a term of years upon certain terms of each plot upon which a house
was built. By the articles of agreement Elliott contracted that, until the land
with the buildings upon it should be leased to him, he would pay the same yearly
rents or sums as were to be received by the lease when granted. Elliott assigned
his interest in this agreement to the defendant, who took possession of the
lands, erected certain buildings upon them, paid the stipulated yearly sums, and
then assigned his interest to one White. The action was brought for money
claimed to be payable by the defendant (White) to the plaintiff in respect of
the defendant's use by the plaintiff's permission of certain of the latter's
lands and premises. It was held, affirming the judgment of the Court of Common
Pleas, that neither Elliott nor the defendant acquired any interest in the land
under the building agreement, nor was any tenancy from year to year created
thereby, or by the occupation of the lands and the payment of the stipulated
sums. With all respect, this case is, I think, an authority rather against the
proposition it was cited to support than in favour of it. The next case is that
of Levi v. Lewis (1859) 6 CB (NS) 766 , affirmed on appeal to the Exchequer Chamber. (1861) 9 CB (NS) 872 There Knight, the superior landlord, let the subject of the occupation
to Levi the plaintiff for a term of years. Levi underlet to Lewis, the
defendant, for the whole term, leaving no reversion to himself. The interest of
both having expired together, Lewis applied to Knight to allow him to become his
(Knight's) tenant. Knight refused, and referred to Levi as still his tenant.
Lewis continued to occupy, and Knight, to the knowledge of Lewis, continued to
insist on holding Levi liable. Levi then sued Lewis for use and occupation of
the land since the expiration of the term, and Levi then paid the rent for that
period to Knight, who accepted it. The trial Judge, Willes J., holding that
there was no evidence to go to the jury of the use and occupation of the
premises by Lewis as Levi's tenant, directed a non-suit. The Court of Common
Pleas held that there was evidence to go to the jury on an implied contract by
Lewis to pay Levi for the occupation of the premises. Willes J., in delivering
judgment, said 6 CB (NS) 770 : “Conceding that the relative position of the parties would not alone
have enabled Levi to bring the action, yet the conduct of the parties was such
that we think there was evidence from which a jury might infer an understanding
or implied contract between Levi and Lewis, that Lewis should pay for the
occupation of the premises. …. The jury might have thought that Lewis must have
known that he was not considered as tenant to Knight, but that he was considered
as tenant to Levi, and that Knight and Levi severally shew by their conduct that
they each took the same view of the case,” adding, however, that the Court gave
no opinion as to the conclusion to which the jury ought to come. On appeal to
the Exchequer Chamber, Wightman, Crompton, and Hill JJ. held that the decision
of the Court of Common Pleas was right, and should be affirmed. Bramwell and
Channell BB. thought it was wrong, and should be reversed, Bramwell B. adding
that Martin B. when he left the Court was very much of his (Bramwell's) opinion.
If Lewis immediately on the termination of the term had told Levi that he
stoutly refused to admit that he was under any legal liability to pay compensation for his
future occupation of the premises, there might possibly be some resemblance
between this case and the present. As matters stand, there does not appear to me
to be any resemblance whatever between them.
The next case is that of Hellier v.
Sillcox. 19 LJ (QB) 295 In reference to this case Bowen L.J. in Phillips v. Homfray 24 Ch D 439, 461 said:—
“There have been, no doubt, instances in
which, nothing further appearing in evidence but that one person is the owner of
land and that another person had taken possession of and enjoyed it, an action
for use and occupation under the statute has been upheld: see Hellier v.
Sillcox. 19 LJ (QB) 295 In such cases the inference, in the absence of proof to the contrary,
has been allowed to be drawn, that the enjoyment was by permission of the
rightful owner.”
Then follow the passages as to the more
correct view already cited. The two facts: (1.) that the Crown, in my view, did
not enter into possession with the free leave and consent of the respondents but
by the coercion of a superior power; and (2.) that the Crown, when it did,
through its officers, enter into possession absolutely refused to acknowledge
any legal liability to pay compensation in respect of the use and enjoyment of
the hotel, fundamentally distinguish all these cases from the present
case.
In my opinion, therefore, a Petition of
Right not based upon the statutes of 1798, 1842 or 1914, or the Regulations made
under them, but merely on such legal liability as arises between citizens when
one occupies and enjoys the property of another, with the express or implied
permission of that other to pay compensation for that enjoyment, would, on the
facts of this case, fail. It is an entirely different question whether on those
same facts these statutes and Regulations do not impose upon the Crown a
statutory liability to pay reasonable compensation, in the form of a rent or
otherwise, for the possession, occupation, use, and enjoyment, acquired
compulsorily, of the respondent's hotel.
The late Master of the Rolls in the
following pregnant passage of his judgment put a rather
unanswerable question. He said:—
“Those powers which the executive
exercises without Parliamentary authority are comprised under the comprehensive
term of the prerogative. Where, however, Parliament has intervened and has
provided by statute for powers, previously within the prerogative, being
exercised in a particular manner and subject to the limitations and provisions
contained in the statute, they can only be so exercised. Otherwise, what use
would there be in imposing limitations, if the Crown could at its pleasure
disregard them and fall back on prerogative?”
It was not contended, it could not, I
think, be successfully contended, that the Act of 1842 and the Defence of the
Realm Consolidation Act of 1914 (hereinafter referred to as the Act of 1914) do
not bind the Crown, seeing that they deal with what is the special trust and
duty of the King to provide for — namely, the defence and security of the realm
— and prescribe the mode in which, and the methods by which, land or its use is
to be acquired by the Crown's officers, the Ordnance Department, the Admiralty,
the Army Council, the members of His Majesty's forces, and other persons acting
on his behalf, for these very purposes. Whether one applies the test suggested
in Bacon's Abridgement, 7th ed., vol. vii., 462, quoted, apparently, with
approval by Jessel M.R. in Ex parte Postmaster-General (1879) 10 Ch D 595, 601 or that laid down by Lord Lindley in Wheaton v. Maple
[1893] 3 Ch 48, 64 , that the Crown is never bound by a statutory enactment unless the
intention of the Legislature to bind the Crown is clear and unmistakable, I
think these statutes and Regulations satisfy both those tests. Before dealing
with them I desire to express my complete concurrence in the conclusion at which
the late Master of the Rolls arrived as to the result of the searches made by
the Crown touching the nature and particulars of the commissions issued in early
times, in order to determine what sums were paid ex gratia where lands were
taken by the Crown or its officers for the defence of the realm, and the
occupation of them connected therewith by the military. The
conclusion, as I understand it, is this: that it does not appear that the Crown
has ever taken for these purposes the land of the subject without paying for it,
and that there is no trace of the Crown having, even in the times of the
Stuarts, exercised or asserted the power or right to do so by virtue of the
Royal Prerogative. I also concur with the conclusion at which that distinguished
and learned judge arrived as to the purpose, object, and effect of the body of
legislation passed from the year 1708 to the year 1798, enabling land, or the
use of it, to be compulsorily acquired by the Crown on the terms of the owner
being paid for it.
I further concur with him in his
analysis of the provisions of the Acts passed in 1803, 1804, 1819, dealing with
the public service. I agree that in all this legislation there is not a trace of
a suggestion that the Crown was left free to ignore these statutory provisions,
and by its unfettered prerogative do the very things the statutes empowered the
Crown to do, but free from the conditions and restrictions imposed by the
statutes.
It is quite obvious that it would be
useless and meaningless for the Legislature to impose restrictions and
limitations upon, and to attach conditions to, the exercise by the Crown of the
powers conferred by a statute, if the Crown were free at its pleasure to
disregard these provisions, and by virtue of its prerogative do the very thing
the statutes empowered it to do. One cannot in the construction of a statute
attribute to the Legislature (in the absence of compelling words) an intention
so absurd. It was suggested that when a statute is passed empowering the Crown
to do a certain thing which it might theretofore have done by virtue of its
prerogative, the prerogative is merged in the statute. I confess I do not think
the word “merged” is happily chosen. I should prefer to say that when such a
statute, expressing the will and intention of the King and of the three estates
of the realm, is passed, it abridges the Royal Prerogative while it is in force
to this extent: that the Crown can only do the particular thing under and in
accordance with the statutory provisions, and that its prerogative power to do
that thing is in abeyance. Whichever mode of expression be used, the result
intended to be indicated is, I think, the same — namely, that after the statute
has been passed, and while it is in force, the thing it empowers the Crown to do
can thenceforth only be done by and under the statute, and subject to all the
limitations, restrictions and conditions by it imposed, however unrestricted the
Royal Prerogative may theretofore have been.
If that be so, as I think it is, then
the first question to be determined is what particular things the Defence Act of
1842, which is really the culmination of the legislation passed from 1800
downwards, enacts: what the Defence of the Realm Consolidation Act of 1914,
coupled with the Regulations issued under it, empowers the Crown to do, and what
are the conditions, if any, imposed upon the doing of it.
By s. 2, sub-s. 2, of the Defence of the
Realm Consolidation Act, 1914 (6 Geo. 5, c. 8), passed on November 27, 1914, the
two previous statutes (4 & 5 Geo. 5, c. 29, and 4 & 5 Geo. 5, c. 63) are
repealed, but it is provided that nothing in that repeal shall affect any orders
made thereunder, and that all such Orders in Council shall, until altered or
revoked by an Order in Council under this Act (i.e., 5 Geo. 5, c. 8), continue
in force and have effect as if made under the latter Act.
By s. 1, sub-s. 1, it is provided that
during the continuance of the then present war His Majesty may issue regulations
for securing the public safety and the defence of the realm, and as to the
powers and duties for that purpose of the Admiralty and Army Council and the
members of His Majesty's forces and other persons acting on his behalf, and may
by such regulations authorize the trial by court-martial, or, in cases of minor
offences, by Courts of Summary Jurisdiction, and punishment of persons
committing offences against the Regulations, and in particular against any of
the provisions and Regulations designed for the five particular purposes there
mentioned. The Regulations must be designed to secure the public safety and
defence of the realm. Sub-s. 2 provides that any such Regulations —
that is, any Regulations issued to effect those two objects — may provide for
the suspension of any restrictions on the acquisition or user of land, or the
exercise of the power of making by-laws, or any other power under the Defence
Acts, 1842 to 1875, or the Military Lands Acts, 1891 to 1903. There is no
independent express provision in this Act of 1914 enabling the Crown, in the
emergency of the war, to acquire land or the use of it for the purpose of
securing the public safety and the defence of the realm. It must, therefore, I
think, be assumed that, by reason of the provisions of this second sub-section,
it was designed and intended by the Legislature that the ample powers for the
acquisition of land or the use of it, either by agreement of purchase or
compulsorily, conferred upon the Crown by the Act of 1842, should be availed of.
Whether the land or its use were presumed to be acquired by voluntary purchase
under its sixteenth section, or compulsorily under its nineteenth section, the
owner in each case was to be paid or compensated for what he parted with.
In addition, by its twenty-third
section, a further restriction was placed upon the exercise of the power of
compulsory purchase. That section enacted that no lands or building or other
hereditament should be taken without the consent of the owner unless the
necessity or expediency of taking it should be certified by the Lord-Lieutenant
of the county in which the land or hereditament lay, or in the alternative, by
one or more of the other public functionaries named, and unless the taking of
the land or building or other hereditament should be authorized by a warrant
signed by the Lord High Treasurer or one or more of the Commissioners of the
Treasury of the United Kingdom for the time being.
The methods of modern warfare have so
vastly changed since this Act of 1842 was passed, that, if it was availed of, as
it stood, by the Crown in the course of the late war, the restrictions might
seriously delay and embarrass the Crown in taking, through its officers,
adequate measures to secure the public safety and the defence of the realm,
while if the restrictions were removed its amended machinery might be adequate for the occasion. It is
apparently with this view that sub-s. 2 of the Act of 1914 is confined to the
removal of those restrictions. There is no attempt to set up new machinery. The
powers conferred by the Act of 1842, thus unfettered, are to be allowed to
remain operative and available for use. The words of sub-s. 2, moreover, are
“restrictions on the acquisition or user of land.” When those restrictions are
examined it is, in my mind, clear that the legal obligation to pay for the land
or its use, temporarily or permanently acquired, is not a restriction upon the
acquisition of either, or a condition precedent to its acquisition. There is
nothing in the statute to suggest that the liability to pay is to be affected or
taken away by the Regulations which may be issued, and if the Regulations
purported to do that I doubt if they would not, having regard to the wording of
sub-s. 2, be ultra vires. Neither the public safety nor the defence of the realm
requires that the Crown should be relieved of a legal liability to pay for the
property it takes from one of its subjects. The recognized rule for the
construction of statutes is that, unless the words of the statute clearly so
demand, a statute is not to be construed so as to take away the property of a
subject without compensation. Bowen L.J. in London and North Western Ry. Co. v.
Evans
[1893] 1 Ch 16, 28 said: “The Legislature cannot fairly be supposed to intend, in the
absence of clear words shewing such intention, that one man's property shall be
confiscated for the benefit of others, or of the public, without any
compensation being provided for him in respect of what is taken compulsorily
from him. Parliament in its omnipotence can, of course, override or disregard
this ordinary principle …. if it sees fit to do so, but, it is not likely that
it will be found disregarding it, without plain expressions of such a purpose.”
There is not in the Act of 1914 or in the Regulation framed under it any
indication of such a confiscatory purpose.
The Regulations 2, 2A, do not expressly
suspend any restrictions on the acquisition of or user of land imposed by the
Defence Act of 1842. The Regulations commence with the statement that the enjoyment of
property will be interfered with as little as may be permitted by the exigencies
of the measures required to be taken for securing the public safety and the
defence of the realm; and provide that the Admiralty, Army Council and Air
Council and Members of the Naval and Military Forces, and the other persons
executing the Regulations shall, in carrying them into effect, observe these
general principles. Thus by Regulation 2 it is further provided that the Naval
and Military Authority (defined in Regulation 62), or any person duly authorized
by him, may, when necessary for the purpose expressly indicated — namely, for
securing the public safety and defence of the realm — do several things
involving the taking possession of land and user of the real property of the
subject without any of the preliminaries prescribed by the Defence Act of 1842;
for instance, he may take possession of any land, construct military roads
thereon, remove any trees, hedges or fences therefrom; take possession of any
buildings or other property, including works for the supply of gas, electricity
or water, or any sources of water supply; take such steps as may be necessary
for placing any buildings or structures in a state of defence; cause any
buildings to be destroyed, and finally do any other act involving interference
with private rights of property for the aforesaid purposes. As to real property,
no preliminary procedure of any kind is prescribed, and no mention whatever is
made as to payment or compensation in respect of it. As regards personal
property, however, it is provided by the last clause of Regulation 2A that if,
after the competent naval authority has issued notice that he has taken or
intends to take possession of any movable property in pursuance of that
Regulation, any person, having control of any such property, sells, removes or
secretes it without the consent of the competent military authority, he shall be
guilty of an offence against the Regulations. Presumably some such notice should
be given in the case of real property, though that is not expressly provided.
Then one finds a most significant provision in Regulation 2B — namely, that
where any goods, the possession of which has been so taken, are required by the Admiralty, Army Council or Air
Council or the Minister of Munitions, the price to be paid for them is to be
determined in the manner therein provided. These Regulations on their very face
justify an immediate taking possession of the real property of the subject
without any preliminary formality or procedure. They are in absolute conflict
with the provisions of the Defence Act of 1842 imposing restrictions on the
acquisition of land or its use, and prescribing formalities. The two cannot be
reconciled, and the irresistible conclusion must, therefore, be that the earlier
provisions have been suspended by the later.
Again it appears to me to be almost
inconceivable that the Crown should claim the right to do such things as
prostrate fences, take possession of the great industrial works mentioned, or
cause any buildings to be destroyed, without being bound at law to compensate
the owners therefor. The fact that no provision to a contrary effect has been
introduced into these Regulations in reference to real property, while one is
introduced touching goods acquired, suggests, I think, that the provisions of
the Defence Act of 1842 touching payment or compensation for real property taken
or used were left to apply. There is nothing in there Regulations inconsistent
with their being so left. Much reliance was placed by the Crown on the Defence
of the Realm (Acquisition of Land) Act, 1916 (6 & 7 Geo. 5, c. 63). First,
because in its first section it recognizes that possession of land may be taken
by a Government department for the purposes connected with the war, in exercise
of a prerogative right of His Majesty, as well as under any statute relating to
the defence of the realm, or by agreement, or otherwise; and it enables this
department to continue in possession of the land for any period not exceeding
two years after the termination of the war. And, second, because by the same
section it provides that the department which continues to occupy the lands
after the termination of the war shall pay a rent in respect of this continued
occupation. As the Regulations to be issued under the Defence of the Realm
Consolidation Act, 1914, can only be issued and be operative during the war, of
course they could not deal with possession of land after the war had ended, and therefore further
possession had to be provided for; but it is difficult to see upon what just or
rational principle the owner of land should be paid a rent for his land in
respect of the possession of it, while held by a department after the war has
terminated (obviously for the purposes of winding up the business of the
Department), and not paid a rent or compensation for its use and possession by a
department of the State while the war continued. This last provision it would
appear to me hinders rather than helps the contention of the Crown. I should be
sorry to attempt to lay down any rule of general application by which the limits
of the Royal Prerogative might be determined. That is not necessary, in my view,
in this case. In my opinion in this case a statutory liability is imposed upon
the Crown to pay for the use and occupation of the respondent's property. I base
that opinion upon the facts of the case and the provisions of the legislation
upon which the officers of the Crown justified their action. The
Attorney-General in his able argument relied much on the word “temporary” —
“temporary use,” “temporary occupation.” What does the word “temporary” mean in
such a connection? It might cover years, yet mean only the duration of the war.
In this case it covered over three years. At the beginning or early stages of a
war its duration never could be prophetically fixed, even approximately. It has
already been decided in your Lordships' House in several instances that
contracts whose performance is interrupted by war are terminated because the
duration of the interruption cannot be, even approximately, foretold; so that
the word “temporary” would in the result mean in most cases of this kind the
duration of the war, which might be years.
The only remaining point is whether a
Petition of Right will lie in respect of the statutory liability for an
unliquidated amount, not a fixed sum. In my opinion, based on the authority of
Reg. v. Doutre (1884) 9 App Cas 745 and Windsor, &c., Ry. Co. v. Reg.
11 App Cas 607 , there is no valid distinction between a sum due under a contract or
grant made by or on behalf of the Crown as mentioned by Erle C.J. in Tobin v.
Reg. (1864) 16 CB (NS) 310 , and such a liability, due for the lawful and authorized use and
enjoyment by the officer of the Sovereign, on the Sovereign's behalf, of the
lands or buildings of a subject. Both seem equally untainted by tort, both
equally untouched by the principle that the King can do no wrong.
I therefore think that the appeal fails,
that the judgment of the Court of Appeal was right and should be affirmed, and
this appeal be dismissed with costs.
LORD MOULTON. My Lords, the present
appeal is in the matter of Petition of Right presented by De Keyser's Royal
Hotel, Ld., the owners of the well-known hotel of that name, for compensation
for the compulsory occupation of certain parts of their premises by the War
Office acting in the name and on behalf of the Crown for purposes connected with
the defence of the realm during the late war. The Crown contests the right of
the suppliants to compensation for such compulsory occupation, and pleads that
it was an exercise of the Royal Prerogative, and gave no right of
compensation.
The facts of the case are not
substantially in dispute, the real issue being a question of law of great and
general importance. I shall therefore deal very shortly with the evidence as to
what actually took place at the time when occupation of the premises was taken
by the Crown.
In April, 1916, the authorities at the
War Office came to the conclusion that the premises in question were the most
suitable for housing the heads of the department having charge of the Army Air
Service, and accordingly they, by a letter dated April 18, 1916, instructed the
Office of Works to make immediate arrangements to acquire them for that purpose.
Negotiations were thereupon commenced between the Office of Works and Mr.
Whinney (who then represented the suppliants' interests) for such acquisition.
It was at first proposed that they should be acquired voluntarily at an agreed
rent, but as the parties differed as to the amount of this rent the Board of
Works abandoned the negotiations, and informed Mr. Whinney that they were
about to “communicate with the War Office with a view to the total premises
(excluding the shops) being requisitioned under the Defence of the Realm Acts in
the usual manner.”
The War Office agreed to this course
being taken, and on May 1 the Office of Works, by their direction, wrote to Mr.
Whinney a letter, the material parts of which are as follow:—
“DE KEYSER'S ROYAL HOTEL, E.C.
“Dear Sir,
“I am instructed by the Army Council to
take possession of the above property under the Defence of the Realm Regulations
(excluding the shops, the other portions sub-let, and the wine cellars). …. We
do not propose to take possession until the 8th inst., but I shall be glad if
you will accept this as formal notice of the Department's intention to take
possession on that day.”
In accordance with this notice a
representative of the War Office attended on the 8th inst., and took possession
of the premises, which were forthwith occupied by the military authorities, and
continued to be so occupied throughout the period of the war. It is in respect
of this occupation that the suppliants claim compensation.
The representatives of the Crown have
throughout insisted that possession was taken of the premises under the Royal
Prerogative, and that therefore the suppliants were not entitled as of right to
any payment by way of compensation, but that their sole remedy was to apply to a
certain Commission, named the Defence of the Realm Losses Commission, for an ex
gratia allowance in respect of the losses that they would suffer by the
occupation of their premises on behalf of the Crown. This Commission was
appointed by Royal Order on March 31, 1915, “to inquire and determine and to
report what sums (in cases not otherwise provided for) ought in reason and
fairness to be paid to applicants …. in respect of direct and substantial loss
and damage sustained by them by reason of interference with their property or
business in the United Kingdom through the exercise by the Crown of its rights
and duties in the Defence of the Realm.” It is evident that the existence of the
powers of this Commission can have no bearing upon the question raised by this
Petition of Right. Its jurisdiction is restricted to “cases not otherwise
provided for,” and the whole basis of this Petition of Right is that the case is
already provided for. The suppliants claim that they have a legal right to the
compensation, and it is that right which they are seeking to enforce by this
petition.
In the petition the suppliants put
forward an alternative ground for their claim — namely, that the premises were
given up to the Government by them voluntarily under circumstances which would
in law imply a contract on the part of the Crown to pay for use and occupation
of the premises. Without discussing the conditions under which such a contract
may be implied, it suffices to say that in my opinion it is abundantly clear
that the premises were not surrendered voluntarily but were taken compulsorily.
Both parties in their letters written at the time treat it as a case of
commandeering, as it in fact was, and Mr. Whinney protested strongly against the
action of the Government in the matter. In short, he did everything to prevent
their taking the premises short of refusing to give them up unless the
Government used physical force to obtain an entry. Had he gone further in his
resistance than he actually did he would clearly have put himself in the wrong,
for whatever be the suppliants' right as to compensation, the Government were
undoubtedly entitled to commandeer the premises if they needed them for the
purposes of the defence of the realm.
In deciding the issues raised herein
between the Crown and the suppliants, the first question to be settled in the
present case might be, to my mind, treated as a question of fact — namely, Was
possession in fact taken under the Royal Prerogative or under special statutory
powers giving to the Crown the requisite authority? Regarded as a question of
fact, this is a matter which does not admit of doubt. Possession was expressly
taken under statutory powers. The letter of May 1, 1916, from the representative
of the Army Council to Mr. Whinney says: “I am
instructed by the Army Council to take possession of the above property under
the Defence of the Realm Regulations.” It was in response to this demand that
possession was given. It is not competent to the Crown, who took and retained
such possession, to deny that their representative was acting under the powers
given to it by these Regulations, the validity of which rests entirely on
statute.
It was not a matter of slight importance
whether the demand for possession purported to be made under the statutory
powers of the Crown or the Royal Prerogative. Even the most fervent believer in
the scope of the Royal Prerogative must admit that the powers of the Crown were
extended by the Defence of the Realm Consolidation Act and the Regulations made
thereunder. It was for that purpose that the Act was passed and the Regulations
made. But even if that were not so there was a manifest advantage in proceeding
under the statutory powers. It rendered it impossible for the subject to contest
the right of the Crown to take the premises by the exercise of the powers given
by the statute. The statutory powers of the Crown were formulated in the
Regulations in a manner which was beyond mistake. For example, the Regulations
gave to the Crown the power “to take possession of any buildings.” Mr. Whinney
therefore was clearly bound to surrender the premises when demanded. It would
have been a very different matter had the demand been made under the Royal
Prerogative. This litigation itself is enough to show how debatable a
proposition it would have been if the claim had been made that the ancient
prerogative of the Crown covered the taking of a hotel in London for the more
comfortable housing of a military staff and its clerks and typewriters. All such
questions were put at rest by the Legislature giving express statutory authority
by the Regulations. There could henceforward be no doubt that the Crown
possessed the powers formulated in the Regulations, and this was the object of
the legislation. But when the Crown elects to act under the authority of a
statute, it, like any other person, must take the powers that it thus uses cum onere. It cannot take
the powers without fulfilling the condition that the statute imposes on the use
of such powers.
The Defence of the Realm Consolidation
Act, 1914, commenced by enacting that “His Majesty in Council has power to issue
regulations for securing the public safety and the defence of the realm, and as
to the powers and duties for that purpose of the Admiralty and Army Council and
of the Members of His Majesty's forces and other persons acting on his behalf.”
It then goes on to particularize certain subjects to which these Regulations may
relate, and in sub-s. 2 it deals with the question of the acquisition of land as
follows:—
“Any such regulations may provide for
the suspension of any restrictions on the acquisition or user of land or the
exercise of the power of making bye-laws, or any other power under the Defence
Acts, 1842 to 1875, or the Military Lands Acts, 1891 to 1903.”
The Defence Act, 1842 (which may be
taken to represent the whole of the Defence Acts inasmuch as the later Acts only
modify it in details which do not concern the matter in this case), is the last
of a series of Acts regulating the acquisition of lands and interests in land
for purposes of the defence of the realm. These Acts commence in 1708, and occur
at intervals up to 1842. At first they related only to land for fortifications
at places mentioned in the Act, but later they became more general in their
character, and authorized the Crown to select suitable land and acquire it. In
all cases compensation was given to the owners for the land taken. But it is not
necessary to dwell on their provisions, seeing that the Defence Act, 1842,
repealed all such existing Acts and laid down general provisions which have
regulated since that time the procedure for the acquisition by the Crown of land
for such purposes.
This Act gives very wide powers to the
Crown. It has unrestricted powers of selection of the necessary lands,
buildings, etc., to be taken. It contemplates in the first instance voluntary
purchase, but, if that cannot be arranged, then the lands, etc., may be acquired
compulsorily subject to certain certificates being obtained as to the
necessity or expediency of the acquisition or in case of actual invasion. I am
satisfied that it enables the Crown to acquire either the property or the
possession or use of it as it may need. In all cases compensation is to be paid
by the Crown, the amount to be settled by a jury.
The Regulations and the Act under which
they are made must, of course, be read together, and it is in my opinion a sound
inference from the language of sub-s. 2 that the Legislature intended that, so
far as the acquisition or user of land was concerned, the Regulations should
take the form of action under the Defence Act, 1842, facilitated by the
suspension of some or all of the restrictions which it imposes. The particular
provisions relating to the taking of land or buildings are to be found in s. 2
of the Regulations. They empower the military authorities to take possession of
any land or of any buildings where for the purposes of the defence of the realm
it is necessary so to do. These are very wide powers, but so general are the
powers of the Defence Act, 1842, that they would be attained by simply
suspending the restrictions therein contained and allowing its powers to be put
in force without them. Reading therefore this Regulation with sub-s. 2 of the
Act, I think it is clear that in the case of acquisition and user of land under
the Regulations we ought to consider them as authorizing action being taken
under the Defence Act, 1842, save that no restrictions therein appearing are to
be enforced. The duty of paying compensation cannot be regarded as a
restriction. It is a consequence of the taking, but in no way restricts it, and,
therefore, as the acquisition is made under the Defence Act, 1842, the
suppliants are entitled to the compensation provided by that Act.
On these grounds therefore I am of
opinion that the suppliants are entitled to our judgment in this appeal. But it
would be unsatisfactory in a case of such general importance to leave
unconsidered the question whether, apart from the fact that the Crown expressly
purported to be acting under powers given to it by statute, the suppliants'
claim could be maintained.
To decide this question one must
consider the nature and extent of the so-called Royal Prerogative in the matter
of taking or occupying land for the better defence of the realm. I have no doubt
that in early days, when war was carried on in a simpler fashion and on a
smaller scale than is the case in modern times, the Crown, to whom the defence
of the realm was entrusted, had wide prerogative powers as to taking or using
the lands of its subjects for the defence of the realm when the necessity arose.
But such necessity would be in general an actual and immediate necessity arising
in face of the enemy and in circumstances where the rule Salus populi suprema
lex was clearly applicable. The necessity would in almost all cases be local,
and no one could deny the right of the Crown to raise fortifications on or
otherwise occupy the land of the subject in the face of the enemy, if it were
necessary so to do.
Nor have I any doubt that in those days
the subjects who had suffered in this way in war would not have been held to
have any claim against the Crown for compensation in respect of the damage they
had thus suffered. It must not be forgotten that in those days the costs of war
were mainly borne by the Royal Revenues, so that the King himself was the
heaviest sufferer. The limited and necessary interference with the property of
the subjects, of which I have spoken, would have been looked upon as part of the
damage done by the war which it had fallen to their lot to bear, and there is no
reason to think that anyone would have thought that he had a claim against the
Crown in respect of it. Certainly no trace of any such claim having been put
forward is to be found.
This state of things lasted for several
centuries. The records of the preparations made by Queen Elizabeth to resist the
attack of the Spanish Armada, which are contained in the papers in this case,
show that it was in full force in her time. I am not surprised that the careful
(though necessarily incomplete) researches into the Public Records have found no
precedent for the claim as of right against the Crown, for acts done under its
prerogative in occupying or using land under the stress of such a necessity as I
have spoken of, and I do not think that a complete investigation
would have met with greater success.
But in the last three centuries very
important changes have occurred, which have completely altered the position of
the Crown in such matters. In the first place, war has become far more
complicated, and necessitates costly and elaborate preparations in the form of
permanent fortifications, and otherwise, which must be made in times of peace.
In the second place, the cost of war has become too great to be borne by the
Royal Revenues, so that the money for it has to come from the people through the
Legislature, which long ago assumed, and has since retained, the command of all
national resources. In the third place, the feeling that it was equitable that
burdens borne for the good of the nation should be distributed over the whole
nation and should not be allowed to fall on particular individuals has grown to
be a national sentiment. The effect of these changes is seen in the long series
of statutes relating to the occupation of land for the purposes of
fortifications or otherwise for national defence, to which I have already
referred and which cover the last two centuries. In all these Acts provision was
made for compensation to the individual whose lands were taken or used, and
indeed there is clear evidence that for many years, prior to the first of these
statutes, the Crown acted on this principle. It is not necessary to examine
these Acts in detail. They were mostly local in their operation and frequently
temporary, and usually related to specific fortifications which it was proposed
to erect.
But towards the beginning of the last
century the Acts take on a more general and permanent form, and eventually they
culminate in the Defence Act, 1842, which gives to the Crown, through its
properly appointed officials, the widest possible powers of taking land and
buildings needed for the defence of the realm under a minutely defined procedure
set out in the Act. It contemplates as I have already said that the acquisition
shall, as a rule, be by agreement, but it gives ample powers of compulsory
acquisition if the necessity be duly vouched, or in case of an actual invasion.
In all cases compensation for the taking or using of the land by the Crown is to
be assessed by a jury who (in the words of
the Act) have to find “the compensation to be paid, either for the absolute
purchase of such lands, buildings, or other hereditaments, or for the possession
or use thereof, as the case may be.”
This Act was not limited either in time
or place, and with small modifications, which are not material for our present
purpose, is still in force.
What effect has this course of
legislation upon the Royal Prerogative? I do not think that it can be said to
have abrogated that prerogative in any way, but it has given to the Crown
statutory powers which render the exercise of that prerogative unnecessary,
because the statutory powers that have been conferred upon it are wider and more
comprehensive than those of the prerogative itself. But it has done more than
this. It has indicated unmistakably that it is the intention of the nation that
the powers of the Crown in these respects should be exercised in the equitable
manner set forth in the statute, so that the burden shall not fall on the
individual, but shall be borne by the community.
This being so, when powers covered by
this statute are exercised by the Crown it must be presumed that they are so
exercised under the statute, and therefore subject to the equitable provision
for compensation which is to be found in it. There can be no excuse for
reverting to prerogative powers simpliciter — if indeed they ever did exist in
such a form as would cover the proposed acquisition, a matter which is far from
clear in such a case as the present — when the Legislature has given to the
Crown statutory powers which are wider even than anyone pretends that it
possessed under the prerogative, and which cover all that can be necessary for
the defence of the nation, and which are moreover accompanied by safeguards to
the individual which are in agreement with the demands of justice. Accordingly,
if the commandeering of the buildings in this case had not been expressly done
under statutory powers, I should have held that the Crown must be presumed to
have acted under these statutory powers, and thus given to the subject the
statutory right to compensation.
In the argument for the Crown reference
was made to the Defence of the Realm (Acquisition of Land) Act, 1916. This Act
was passed subsequently to the taking of the suppliants' lands, and therefore
has no bearing on the question before this House. There is nothing in it which
purports to take away any right already acquired by the suppliants, and, if it
modifies in any way the quantum of the compensation, that is a matter for the
tribunal which will have to assess it, and is not relevant to the present
appeal. I am therefore of opinion that the suppliants are entitled to the
declaration in the form approved of by the Court below, and that this appeal
should be dismissed with costs.
LORD SUMNER. My Lords, the petition
alleges in substance two rights to compensation, one for a rent for the use and
occupation of this hotel, of which the Crown took possession with Mr. Whinney's
permission, the other for a fair rent as compensation because he voluntarily
delivered possession, though protesting against the rights then alleged and
maintaining his own claims of right, whatever they might be.
The answer and plea, beside traverses,
allege an exercise of the Royal Prerogative for the defence of the realm and
also rely on the Defence of the Realm Consolidation Act, 1914, and the
Regulations issued thereunder. Mention is made of an offer to pay whatever the
Defence of the Realm Losses Commission might award, but I think this topic has
no relevance. The payment would have been none the less an ex gratia payment,
though the sum to be paid had been calculated under the forms of a judicial
proceeding. Its acceptance would have involved a waiver of the suppliants'
alleged right; its refusal cannot be an answer to that right, if they can
establish it.
Another introductory argument may be
mentioned to be put aside. The appellant, as I understand it, contends that what
was done was done under the prerogative and not otherwise. If the prerogative
was exceeded then every servant of the Crown who used the premises would be
personally guilty of trespass, and trespass being the suppliants' real remedy, the Crown succeeds. It is the
typists and the clerks who are liable. If, on the other hand, the prerogative
was not exceeded, the Crown succeeds again. The singularity of this result
certainly invited criticism, and I was at first inclined to think that there
might be an answer analogous to the rule of waiving a tort and suing on an
implied assumpsit. When a civil right may be vindicated in more ways than one,
there is a choice of remedies: Rodgers v. Maw (1846) 15 M & W 444, 448 ; nor does it necessarily follow that this choice only arises between
such remedies as are available against one and the same party. If the servant of
a company, acting ultra vires the company, converts a stranger's chattel, and,
having sold it, pays the proceeds into the company's account as its servant, I
suppose an action for conversion would lie against the servant and for money had
and received against the company: cf. Smith v. Hodson. (1791) 4 TR 211 I have, however, come to the conclusion that no real advantage will be
gained by pursuing arguments turning on forms of actions, for this reason. The
suppliants must make out their right, and when they allege a right under the
Defence Acts they negative any wrong done in the name of the Crown. There was no
trespass by the clerks and the typists. They acted on a possession lawfully
taken by the Crown, but a possession taken upon terms, and those terms were such
as gave the suppliants a right to compensation. The only question is whether
there is a statutory right against the Crown under the Defence Acts.
In terms the Crown purported to
requisition under the Defence of the Realm Acts, and, on the correspondence, I
think that there was no such request by the Crown for leave to occupy, followed
by consent on the part of the respondents, as would support a claim to a quantum
meruit compensation or rent apart from the statutes. There was nevertheless such
assent as prevents the occupation from having been taken wholly in invitos, so
as be leave the respondents no position but that of the sufferer of a wrong.
Obviously Mr. Whinney's duty and interest alike impelled him to insistence on
compensation, not to resistance to taking possession. It was money, not the hotel, that he wanted, and it
does not matter whether he knew or not on what legal ground to put his claim.
The question does not really turn on permission or submission. On the facts he
cannot say that he so gave possession as to imply a contract for rent, but I see
nothing in them to exclude his assertion of a right to compensation, if he can
establish that right in law.
The Crown has throughout purported to
act on statutory rights (whether fully or correctly referred to or not), and the
prerogative has not been vouched except in argument in the present case. I do
not mean that it is not open to the Law Officers to rely on the prerogative now,
or that I assume the writer of the letter dated April 29, 1916, to have had any
authority to bind the Crown by an election between its statutory and its
prerogative rights. If, however, under the statutes, including the Defence of
the Realm Acts, which deal with taking buildings for the public safety and the
defence of the realm, the Crown had the power to requisition this building on
terms as to compensating the respondents, I think it cannot contend now, that by
the course taken the exercise of statutory powers was excluded and that none
were in fact exercised.
To begin with 1914, the question arises,
whether the premises could have been acquired simply under the Defence of the
Realm Consolidation Act, 1914 and the Regulations made thereunder, to the
exclusion of the Defence Acts and so to the exclusion of any right to
compensation, or whether, if statutory powers were exercised at all, they must
have included the powers (and the obligations) for which these Acts provided. I
think that no real importance attaches to the rearrangement of s. 1, which was
made when the statute of November 27, 1914, superseded that of August 8. The
Defence of the Realm Consolidation Act, 1914, does not purport to embody in the
form of an enactment the Crown's existing prerogative. The Act empowers the
Crown to issue Regulations. Now there is no prerogative to make Regulations,
though it may be that some of the things, which may be regulated under the Act,
might also be done under the prerogative. It is, however, also clear that some things, which may
be validly ordered under Regulations under the Act, could not have been done
under the pre-existing prerogative.
Further, under this Act alone no
building could be requisitioned, unless and until some Regulation had been
issued to that effect. Two kinds of Regulations might be issued, one for the
purpose of securing the public safety and the defence of the realm, and the
other in order to alter existing Acts of Parliament for the time being by
providing for the suspension of any restrictions on the acquisition or user of
land contained in sundry named Acts. Sect. 1, sub-s. 1, provides for the first
kind; s. 1, sub-s. 2, for the second.
Of the Regulations No. 2 is that
material to the present purpose; it deals with taking possession of any
buildings and with doing any act (other than those specially described)
involving interference with private rights of property. If the Crown were to
exercise the powers of taking buildings, which are given by the Defence Acts,
this Regulation could well be held to dispense with the formalities prescribed
by them. They would be restrictions, which the Regulation would have suspended.
The obligation to pay compensation to the dispossessed owner, which that Act
provides for, is, however, not a restriction on the acquisition of his land. It
might discourage the exercise of the power of acquisition, but it does not limit
that power. The power is complete independently of payment, and it is fully
exercised before the obligation to pay arises.
The next question is, should Regulation
2 be regarded as having been made in exercise of the powers given by the first
or by the second sub-section of s. 1 of the Defence of the Realm Consolidation
Act? In other words, is it to be regarded as an exercise of a power to
requisition under Regulations issued for the purpose, or as an exercise of the
power to facilitate requisitioning already authorized? It is true that it
authorizes the competent naval or military authority to do the above-mentioned
things “for the purpose of securing the public safety of the Defence of the
Realm,” but that is the purpose mentioned in s. 16 of the Defence Act, 1842, and
the words may only be a reference to that
section. Furthermore, the Regulation deals with many matters beside the
acquisition of land and buildings, and these would in any case require a
substantive reference to the above purposes, which sufficiently accounts for the
use of the words without its being necessary to read them as pointing to the
exercise of a new power of requisitioning. With all respect to the opinion
expressed by Avory J. (1915) 84 LJ KB 1961, 1963 I think it should be treated as only an exercise of the power of
suspending restrictions given by sub-s. 2.
If it were held that this Regulation is
to be deemed to have been made, so far as the acquisition of land or buildings
is concerned, in exercise of new powers given by sub-s. 1, on the ground that
the Regulations to be issued are Regulations as to the powers of the Army
Council from time to time and not merely as to the exercise of its powers, then
it would follow that the Crown, having full power of accomplishing the desired
acquisition under the Act of 1842, and of suspending any inconvenient
restrictions on that power, must be deemed to have been advised to exercise a
new power of accomplishing the same object, differing from the existing power in
one respect only — namely, that it is accompanied by no obligation to pay the
subject anything. I think it should not be assumed that, even if the Crown has
such a power under s. 1, it has been advised to exercise it solely to avoid
paying a subject for the exclusive use of his property. The presumptions must
be, both that the executive action was taken under powers by which it can be
justified, rather than beyond all powers whatever, and that the available powers
have been exercised so as to prevent and not so as to cause avoidable injury to
the subject.
Further, the Defence of the Realm
Consolidation Act by sub-s. 2 of s. 1 gives an express and limited power of
altering by Regulation what is enacted by the Defence Acts. I think that no
further power of restricting those enactments is intended to be conferred by the
general words of sub-s. 1, nor ought that sub-section, couched as it is in
general terms only, to be construed as authorizing the Crown to do by Regulation
what the Legislature itself has already fully provided for by statute, least of all when that
Regulation would have the effect of taking the subject's property without
compensation contrary to the intention of the prior Acts.
The next question must be, is the
Defence Act, 1842, with the other Defence Acts, adequate to enable the Crown to
effect for the purpose of the defence of the realm such an object as that
involved in the taking of this hotel? It is true that the Act enables much more
to be done, and that the provisions for a greater or a less exercise of the
power of taking lands are not kept separate. The same series of sections enables
the Crown to take lands under the Act in peace or in war, in absolute ownership
and in perpetuity or for temporary occupation only, but there is no difficulty
in severing these provisions. It is true that, except for an express saving in
s. 34, the Royal Prerogatives are not named, but the powers of taking land are
such as only the Crown by its proper officers and departments can exercise, and
the restrictions on the exercise of the statutory powers, which the Act
requires, must necessarily be restrictions upon the powers of the Crown. It is
true that some of these restrictions might in time of war be inconvenient in
moments of extreme peril: of these the most formidable is the giving of a
fourteen days' notice, though I observe that some overtures for this hotel were
made in November, 1915, and when the officials came to business in 1916 eleven
days were spent in negotiating for a rent, and the parties got as close together
as 19,000l. and 17,500l., before it
was thought necessary to refer to the Defence of the Realm Act. If, however,
formalities not inconsistent with the exigencies of a state of war in 1842 would
have been prejudicial to the public service in 1916, the powers given by sub-s.
2 of s. 1 of the Act of 1914 had only to be exercised, as in fact they were, and
all these difficulties would vanish. I see no reason to doubt that the Act of
1842 gave all the powers necessary for the exigencies of the recent war, subject
only to the removal of restrictions contained in it, and there is therefore
nothing to rebut the natural presumption that Regulation 2 is, in so far as it
deals with matters to which the Defence Acts would apply, only an exercise of
the power of removing existing statutory restrictions, and is not new legislation
by which the Crown takes new and unrestricted powers in order to obtain the same
result.
The appellant further contended that all
that was done could be done, and was done, independently of any statute, by
virtue of the Royal Prerogative alone. I do not think that the precise extent of
the prerogative need now be dealt with. The Legislature, by appropriate
enactment, can deal with such a subject-matter as that now in question in such a
way as to abate such portions of the prerogative as apply to it. It seems also
to be obvious that enactments may have this effect, provided they directly deal
with the subject-matter, even though they enact a modus operandi for securing
the desired result, which is not the same as that of the prerogative. If a
statute merely recorded existing inherent powers, nothing would be gained by the
enactment, for nothing would be added to the existing law. There is no object in
dealing by statute with the same subject-matter as is already dealt with by the
prerogative, unless it be either to limit or at least to vary its exercise, or
to provide an additional mode of attaining the same object. Even the
restrictions (such as they were) imposed by the Defence Acts on any powers of
requisitioning buildings in time of war were in no way inconsistent with an
intention to abate the prerogative in this respect, if not absolutely, (see New
Windsor Corporation v. Taylor
[1899] AC 41, 49 ), at least for so long as the statute operates. In truth, the
introduction of Regulations so reasonable only strengthens the substance of the
Royal authority by removing all semblance of arbitrary power. When, however, the
matter is looked at, as it now must be, in the light of Regulation 2, no room
for doubt remains. The Regulation has the force of statute, and under its
amelioration of the Defence Acts everything could be done for this purpose that
could be done under the prerogative, equally efficiently and with equal speed.
One difference, and one only, can be found. According to the argument, under the
prerogative the subject could claim no compensation far losing the use of his
property; under the statute he could. Is it to be
supposed that the Legislature intended merely to give the Executive, as advisers
of the Crown, the power of discriminating between subject and subject, enriching
one by electing to proceed under the statute and impoverishing another when it
requisitions under the alleged prerogative? To presume such an intention seems
to me contrary to the whole trend of our constitutional history for over two
hundred years.
Nor is it a reasonable interpretation to
say that the object of the Defence Acts was merely to supplement the prerogative
by enabling the Crown to pay compensation out of public funds to a subject
damnified by the exercise of the prerogative, which otherwise it would not be
able to do. A prerogative right to take without paying must have been a right to
take without paying out of the Royal funds, but, in truth, prerogative can, at
most, extend to taking, and stands quite apart from payment. There is no
prerogative right to elect not to pay. Conversely, if there is adequate power to
do all that is required by proceeding under the statute, where is the emergency
and public necessity which is the foundation for resort to the
prerogative?
My Lords, for these reasons I think that
the Executive did not take possession under the prerogative, fur the Defence
Acts had superseded it; that the Act of 1914 and Regulation 2 did not in
themselves enable possession to be taken; that the taking of possession must be
referred to the powers given by the Defence Acts, and that, in consequence, the
suppliants are entitled to be compensated in accordance therewith. I do not
refer to the many statutes which preceded the Defence Act, 1842, from the time
of Queen Anne, because they only seem to me to justify without altering my
reasons for this conclusion.
This being so, there are only two
further matters to which I wish to refer. They are the search which was made
into the Public Records at the suggestion of the late Master of the Rolls, and
the passages which have been cited from the opinion of the Judicial Committee in
the case of The Zamora.
[1916] 2 AC 77
That the search for documents relating
to the taking of land for fortifications and similar purposes in times past was
left incomplete and indeed was not much more than begun, is matter of
considerable regret. So far as it went, it is said to have been inconclusive.
Probably it will never go any further, for the result has scarcely been such as
would encourage the Executive to proceed with it, and the subject does not
greatly attract the student of history. The records cover both peace and war.
The result, as it stands at present, seems to be this. Many documents are
forthcoming which relate to the taking of land for such purposes by agreement
and on payment of compensation. None can be found relating to taking land as of
right and without any compensation at all, even in time of war. No petition of
right is to be found in which a suppliant seeks to recover compensation, but
whether this be, as the Crown suggests, because no subject ever had the temerity
to put forward such a contention, or, as the respondents argue, because the
Crown never gave him occasion to do so, is a matter which remains unknown. There
appears to be no reported case which has decided that the subject is entitled to
compensation for lands taken by the Crown, in purported exercise of the
prerogative, but to this circumstance the same observation applies. The point
that no suppliant has presented a Petition of Right with such an object seems to
me to be in itself of minor importance. Experience in the present war must have
taught us all that many things are done in the name of the Executive in such
times purporting to be for the common good, which Englishmen have been too
patriotic to contest. When the precedents of this war come to be relied on in
wars to come, it must never be forgotten that much was voluntarily submitted to
which might have been disputed, and that the absence of contest and even of
protest is by no means always an admission of the right. In a lesser degree I
see no reason why similar courses may not have been taken in times of less
gravity. At any rate the fact remains that the claim of prerogative right
maintained by the appellant is one, of the exercise of which history has
preserved no record.
As to the judgment in The Zamora
[1916] 2 AC 77 , I conceive what was there said to have been correct, but I think that
it has been pressed beyond anything for which, truly understood, it is an
authority. What has to be borne in mind is that no issue as to the Royal
Prerogative arose for determination in that case. The question was, whether it
was consistent with the Law of Nations that a Court of Prize should release to
the Crown, against deposit of the value in Court, the property of a neutral held
in its custody pending adjudication, whenever the Crown duly declared that it
was necessary for the defence of the realm to requisition it. As part of the
reasoning of the judgment their Lordships dealt with two points: first, that
such requisitioning imposed no greater burden on the neutral than was borne by
the subject, but rather less; and, second, that, if on comparison of the
municipal laws of different countries the power of requisitioning was found to
be exercisable in some cases with compensation and in some without (of which
latter class this country was an example: p. 100), this circumstance would only
show that the right contended for was, as against the neutral, as moderate as
any municipal law warrants, and more so than what is warranted by our own. The
legislation on the subject of national defence was not material, and was not
discussed.
I think it is plain that the judgment in
The Zamora
[1916] 2 AC 77 made, and could make, no attempt to formulate an exhaustive definition
of the prerogative as to requisitioning; that it took and could only take
decisions on the subject as it found them, in order to draw from them legitimate
inferences throwing light on the matter in hand. The Shoreham Case, as it is now
called, for obvious reasons meagrely reported as to the facts under the name of
In re A Petition of Right [1915] 3 KB 649 , was the most recent exemplification of the ancient rule traced back
to the Year Books that for the purpose of repelling invasion, the King, and
indeed the subject too, may enter another's close in order to raise bulwarks
therein without committing a trespass. Rightly or wrongly, the facts of the Shoreham Case [1915] 3 KB 649 were assumed to have been analogous to the case of raising
bulwarks.
No question arose of the taking of
buildings for the mere use of administrative officials, although employed in one
of the combatant branches of the administration. The statement about the absence
of compensation was an exact statement of the state of the reported cases then
existing. It did not purport to lay down that no right to compensation could
exist in law, but merely recorded that none had been decided to exist. The
statement that no Court ought, in time of war, to require of the officers of the
Crown proof (ex hypothesi public proof) of the reasons of State, which had led
them to hold that in a particular case a certain course should be taken, seems
to me to be an obvious statement. It is not in conflict with what seems to me to
be an equally obvious proposition — namely, that when the Court can see from the
character and circumstances of the requisition itself that the case cannot be
one of imminent danger, it is free to inquire whether the conditions, resting on
necessity, which were held to exist in the Shoreham Case [1915] 3 KB 649 are applicable to the case in hand. If so, the argument in the judgment
of The Zamora
[1916] 2 AC 77 did not touch such a case. Unless the Court has such a power, the mere
fact that the competent military authority honestly believed that what he
demanded was needed for the defence of the realm, would, on the appellant's
argument, enable everything to be taken and nothing paid. Of course, with the
progress of the art of war, the scope both of emergencies and of acts to be
justified by emergency extends, and the prerogative adjusts itself to new
discoveries, as was resolved in the Saltpetre Case 12 Rep 12 ; but there is a difference between things belonging to that category
of urgency, in which the law arms Crown and subject alike with the right of
intervening and sets public safety above private right, and things which,
however important, cannot belong to that category, but, in fact, are simply
committed to the general administration of the Crown.
My Lords, I think that the judgment of
the Court of Appeal was in accordance with the law, and ought to be
affirmed.
LORD PARMOOR. My Lords, the question in
debate in this appeal is whether the respondents are entitled to rent or
compensation for the temporary use and occupation of the De Keyser's Royal
Hotel, on the Thames Embankment. Possession of the hotel was taken, during the
war, by the Executive Government, as representing the Crown, for purposes
admittedly connected with the defence of the realm. It is not necessary to
restate in detail to your Lordships the negotiations and letters which passed
between the representatives of the Executive Government and the respondents in
connection with taking possession of the hotel.
On May 8, 1916, Mr. Fane, of the Office
of Works, attended at the hotel to take over possession from Mr. Whinney, who
delivered possession by giving the keys to Mr. Fane. Mr. Whinney protested
against the proceedings, and only surrendered possession under protest. It was
stated that the Office of Works did not recognize any claim for occupation rent,
and required that any claim for compensation should be sent to them for
transmission to the “Defence of the Realm Losses Commission,” and that the
premises had been commandeered for military purposes under the Defence of the
Realm Acts. It is contended by the appellant that compensation, if payable at
all, is only payable ex gratia at the discretion of the Commission, and not as a
matter of legal claim. This Commission was appointed to inquire and report to
the Treasury with regard to claims for direct and substantial loss and damage
“in cases not otherwise provided for.” In my opinion the case under appeal is a
case “otherwise provided for,” and therefore a case which the Commission would
have no jurisdiction to entertain.
On February 14, 1917, the respondents
presented a Petition of Right, alleging that Mr. Whinney had delivered up
possession of the hotel to representatives of the Crown, and that the use and
occupation thereof by the Executive Government was by permission of respondents, and they
claimed a sum as rent in respect thereof. Having come to the conclusion that the
representatives of the Crown took possession under rights conferred by statute,
it is not necessary to determine whether or not there was any use and occupation
of the hotel by permission of the respondents. The respondents further claimed
that they were entitled to a fair rent for use and occupation by way of
compensation under the Defence Act, 1842, and it is under this head that a
declaration had been made by the Court of Appeal in their favour. On October 15,
1917, the Attorney-General filed his answer and plea, on behalf of His Majesty,
traversing the allegation in the petition that Mr. Whinney voluntarily delivered
up possession of the hotel to the representatives of the Crown, and that the
Crown's use and occupation of the hotel was by permission of the respondents,
and pleading that such possession was properly and lawfully taken by virtue of
His Majesty's Royal Prerogative, as well as by virtue of the powers conferred by
the Defence of the Realm Consolidation Act, 1914, and of the Regulations issued
thereunder, and that His Majesty had acquired no right in or over the premises,
beyond the right to take and use the same for so long as might be necessary for
securing the public safety in the defence of the realm during the continuance of
war. Peterson J. dismissed the petition with costs, but this judgment was
reversed in the Court of Appeal, and a declaration made that the respondents
were entitled to a fair rent for use and occupation by way of compensation under
the Defence Act, 1842.
The first question, raised and argued at
great length before your Lordships, was whether the Executive Government could
justify their action in taking possession of the hotel, without payment of rent
or compensation, under the sanction of the Royal Prerogative. The Royal
Prerogative connotes a discretionary authority or privilege, exercisable by the
Crown, or the Executive, which is not derived from Parliament, and is not
subject to statutory control. This authority or privilege is in itself a part of
the common law, not to be exercised arbitrarily, but “per legem” and “sub modo
legis.” In the present appeal, it is not
alleged that, if the Royal Prerogative did authorize the taking of possession of
the premises of the respondents, for temporary use and occupation, without
payment of rent or compensation, the authority was used improperly or in an
arbitrary manner. Under this head no objection is put forward.
The growth of constitutional liberties
has largely consisted in the reduction of the discretionary power of the
executive, and in the extension of Parliamentary protection in favour of the
subject, under a series of statutory enactments. The result is that, whereas at
one time the Royal Prerogative gave legal sanction to a large majority of the
executive functions of the Government, it is now restricted within comparatively
narrow limits. The Royal Prerogative has of necessity been gradually curtailed,
as a settled rule of law has taken the place of an uncertain and arbitrary
administrative discretion. A similar tendency may be traced in the growth of our
legal system. Portions of the Common Law have been systematically incorporated
in or modified by Acts of Parliament, and in this way the obligations which the
law imposes have become more definite, and more certain in their application.
Apart from the implication from precedents, which will be referred to later, the
appellant states that he relies on the Royal Prerogative, because, in a case of
necessity for the public defence, the Crown has by the common law a prerogative
right, which has not been abated, abridged or curtailed by any of the Defence
Acts of 1842–1873, or by any other statute, to enter upon or to take possession
of, or to occupy and use, the land of any subject without payment of
compensation. It is not necessary to inquire how far, in certain cases of
necessity, for the public defence, the Executive has power to act without
statutory authority, but a generalization of this wide character requires
careful analysis in its application to special conditions such as have arisen in
the present appeal.
In this instance the De Keyser Hotel was
required for administrative purposes. Under modern conditions the use and
occupation of land for administrative facilities is a matter of necessity for
public defence, but the necessity is not of the same character and cogency as arise when
the use and occupation of land is required on the occurrence of invasion, or
during the occurrence of actual fighting. On this point I agree with the
decision of the Court of Appeal. Assuming that there is a public necessity to
take possession of land for administrative purposes in connection with public
defence, there can be no reason why this necessity should be urged as an answer
to a claim for compensation. It is clear on the negotiations and correspondence
that Mr. Whinney did not raise any objection to handing over the hotel for the
use and occupation of the Executive Government, but that his protest was limited
to the claim of the Executive Government to take the hotel, and, at the same
time, to deny any claim for compensation except such as might be offered, as a
matter of grace, by a reference to the Defence of the Realm Losses Commission.
An illustration of the distinction, which arises in the character and cogency of
the necessity when land or buildings are required for the exigency of the public
service, is to be found in s. 23 of the Defence Act, 1842, which provides
certain safeguards for the protection of the subject “unless the enemy shall
have actually invaded the United Kingdom at the time when such lands, buildings
or other hereditaments shall be so taken.”
It is further noticeable that the
prerogative right claimed is limited to an entry upon, or to taking temporary
possession of, or to the temporary occupation and use of the land, of any
subject without payment of compensation. It is not claimed that it can be
extended to a case of disseisin. Since Magna Carta the estate of a subject in
lands or buildings has been protected against the prerogative of the Crown. It
is not easy to see what the distinction is between disseisin and an indefinite
use and occupation, which may extend beyond the estate of any particular owner.
The later statute law gives the same claim to compensation to the subject in
either case. An analogy arises in the case of taxation. Money is of primary
necessity for public defence during war, but it has long been established that
in order to obtain the requisite supplies, the Executive must follow
constitutional precedent, and obtain Parliamentary sanction. If, however, it
could be established that there had been at one time such a prerogative right as
is claimed by the appellant, I am unable to accept the further proposition that
such right has not been abated, abridged, or curtailed by any of the Defence
Acts, 1842–1873, or any other statute. The provisions, however, of the statute
law, as they affect the Royal Prerogative which the appellant claims, will be
considered subsequently.
The precedents on which the appellant
relies in support of his appeal are Hampden's Case 3 How St Tr 825 ; The Saltpetre Case 12 Rep 12 ; Hole v. Barlow 4 CB (NS) 334 ; and The Zamora.
[1916] 2 AC 77 No one would dispute the high character of the arguments of Mr. St.
John against the Crown in the case of ship money, but admissions made in such an
argument do not constitute precedents, and the arguments applicable to the Royal
Prerogative before the revolutionary period must be read subject to the
restrictions which have been subsequently imposed. Duke L.J., in his exhaustive
review, refers to the judgments of two of the judges whose opinions were given
adversely to the claim of the Crown, and quotes passages from the judgments of
Crooke J. and Hutton J. The quotation from Crooke J. is: “The law provideth a
remedy, in case of necessity and danger; for then the King may command his
subjects, without Parliament, to defend the kingdom. How? By all men of arms
whatsoever, for the land; and by all ships whatsoever, for the sea, which he may
take from all parts of the kingdom and join them with his own navy; which has
been the practice of all former Kings.”
This opinion of Crooke J. would in any
case be no precedent for the claim made in the present appeal, but it is
doubtful whether the Royal Prerogative would at the present time cover so wide
an exercise of authority. During the war a Conscription Act was passed and
Parliamentary authority was obtained. The quotation from Hutton J. is: “The care
for the defence of the Kingdom belongeth inseparably to the Crown.” There is no
need to question the accuracy of this general statement, but it cannot be
intended to cover the proposition that the Executive Government is entitled,
without regard to the limitations which have been imposed from time to time, to
take all such steps as in the discretion of the Government, for the time being,
may be considered necessary for this purpose.
The Saltpetre Case 12 Rep 12 was decided in 1606, at a time when the claim to act by Royal
Prerogative was carried to an extreme limit. This case, however, is no precedent
for the contention put forward by the appellant. The saltpetre was taken under
the Right of Purveyance, and payment was made. Purveyances were abolished in
1660 by 12 Car. 2, c. 4. The volume of extracts from Public Records made for the
purposes of this case by the Record Agent contains warrants for the searching
for saltpetre, but in every case on the payment of rent or compensation. The
importance of the case consists in the terms of the resolution of the judges:—
“When enemies come against the realm to
the sea coast, it is lawful to come upon my land adjoining to the same coast, to
make trenches or bulwarks for the defence of the realm, for every subject hath
benefit by it. And therefore by the Common Law, every man may come upon my land,
for the defence of the realm, as appears 8 Ed. 4, 23. And in such case on such
extremity they may dig for gravel, for the making of bulwarks; for this is for
the public, and everyone hath benefit by it; but after the damage is over, the
trenches and bulwarks ought to be removed, so that the owner shall not have
prejudice in his inheritance: and for the commonwealth, a man shall suffer
damage; as, for saving of a city or town, a house shall be plucked down if the
next be on fire: and the suburbs of a city in time of war for the common safety
shall be plucked down; and a thing for the commonwealth every man may do without
being liable to an action, as it is said in 3 H. 8, fol. 15.”
A right common both to the Crown and all
subjects is not in the strict sense a prerogative right of the Crown. Royal
Prerogative implies a privilege in the Crown of a special and exclusive character, but in any case the
illustrations contained in the resolution cannot be relied upon in support of
the claim made by the appellant. To take premises for administrative purposes is
essentially different from an entry upon land, adjoining to the coast, to
protect the realm from a landing by enemy forces. The analogy of plucking down a
house, if the next be on fire, for the saving of a city or town, is an apt
instance of the restrictive limitations under which the right referred to in the
resolution can be exercised, and it would be impossible to suggest that any
subject would have been entitled to take possession of the hotel of the
respondents for temporary use and occupation. A statute of 4 Hen. 8, c. 1
(1512), which was to endure to the next Parliament, makes special provision for
the protection of the County of Cornwall against invasion from Bretayne and also
the Haven of Brest, and authorizes everyone of the King's subjects under the
conditions mentioned to enter upon land for the making of bulwarks, etc.,
without any manner of payment to be demanded or any manner of action, by any
manner of person or persons at any time thereafter to be attempted. This statute
illustrates the nature of a right, which is based, not on an exclusive privilege
of the Crown, but on the duty of all subjects within the specified area to make
common cause in defence of the realm. Duke L.J. refers to a series of cases
between subjects in which there was no determination of the rights as between
the Crown or the Executive Government and the subject. The decisions in these
cases do not, in my opinion, assist to solve the questions raised in this
appeal.
The Zamora
[1916] 2 AC 77 was a prize case, which raised a question of the authority of Royal
Prerogative in International Law and of the right to requisition vessels or
goods in the custody of the Prize Court of a belligerent power. As regards the
authority of the Royal Prerogative the dictum of Lord Stowell in The Fox (1811) Edw 311 was disapproved, and it was held that, prior at any rate to the Naval
Prize Act, 1864, there was no power in the Crown, by Order in Council, to
prescribe or alter the law which Prize Courts have to administer. So far the
case cannot be quoted in favour of the claim
to take possession of the property of the subject without payment of
compensation. In the course of his judgment Lord Parker does incidentally refer
to the authority of the Royal Prerogative within the domain of municipal law,
but this was not a matter in issue in the case, and there was no argument
addressed to the question now in appeal before your Lordships. So far as the
Shoreham Case [1915] 3 KB 649 is concerned, it need only be added that Lord Parker was sitting in
your Lordships' House when the arrangement was come to which made a formal
judgment unnecessary. The dictum of Willes J. in Hole v. Barlow 4 CB (NS) 345 is not in favour of the contention of the appellant. It states the
general proposition that every man has a right to the enjoyment of his land, and
then, by way of illustration, limits the application of the power of the Royal
Prerogative to the event of a foreign invasion. Apart from legal precedent, it
was urged by the appellant in the Court of Appeal during the argument, that,
where lands had been taken over for temporary use and occupation for the
purposes of the Defence of the Realm, without obligation on the part of the
Crown to pay rent or compensation, special commissions had been issued from time
to time to determine what payment should be made by the Crown ex gratia.
Consequently a search was made with the result stated in the judgment of the
Master of the Rolls. “The result of the searches which have been made is that it
does not appear that the Crown has ever taken subject's land for she defence of
the country, without paying for it; and even in the Stuart times I cannot trace
any claim by the Crown to such a prerogative.” These latter words are important
in considering the claim of the Executive Government in the present case to act
under the Royal Prerogative. If no precedents can be found prior to the year
1688 of a claim to use and occupy the land of the subject for an indefinite time
without the payment of compensation, it would be improbable that such precedents
would be found at a later date.
The documents and warrants extracted
from Public Records give no support to the claim put forward by the appellant. A
large number of them are concerned with
the acquisition of estates in land, which admittedly could not be acquired
compulsorily by the exercise of the Royal Prerogative. In some of the instances
it is difficult to determine whether an estate in the land was acquired or
possession was taken for temporary use and occupation. The extracts to which the
attention of your Lordships was specially directed during the argument are as
follows. On November 24, 1668, and on December 22, 1688, there are two ordinance
minutes ordering in one case the payment of rent for ground upon which a battery
is standing, and in the other case compensation for damage at the time of “Ye
proveing the Morter peece nere Bishopps hall.” Both these minutes appear to
relate to a case of temporary use and occupation. On September 4, 1805, a letter
was written urging the necessity of obtaining the mills at Cheshunt for purposes
of increasing the supplies of gun-powder for His Majesty's service. The Board
concurred in the opinion, and recommended to the Master-General to authorize the
mills of Cheshunt to be taken possession of under the Defence Act, which will be
attended also with the further advantage of removing some legal obstacles
arising from a claim of the poor of the neighbourhood to have their corn ground
at the mill. Proceedings were accordingly taken under the Defence Act to get
possession of the mills, in order that, by the acquisition of the water, the
manufacture of gunpowder might be increased. The subsequent orders and minutes
relate to valuation for the purchase of all interests in the premises. At this
date the Act 43 Geo. 3, c. 55, was in force, authorizing His Majesty to survey
and mark out ground wanted for public service and to treat and agree for
“possession and use of it during such time as the exigence of the public service
shall require,” and in default of agreement compensation to be paid for
possession and use, to be ascertained by a jury. In the following year a further
Act was passed enabling land required for the exigencies of the service to be
purchased absolutely and for ascertainment of the price by a jury in default of
agreement. These acts were temporary in character, but contained provisions
similar to those which were made permanent in the Defence
Act, 1842. On June 20, 1813, a report was made on the claims of a Mr. Cowl, of
Margate, and other persons in reference to damage done by stopping up gateways
by which farmers drew up seaweed from the beach as a manure for lands at a time
when an enemy landing was apprehended. A money payment appears to have been made
in each case with the further recommendation that the gateway should be reopened
at the expense of the Government. It was stated at the hearing before the Court
of Appeal that the documents which had been extracted were illustrative, and
that there was no reason for thinking that a further search would disclose
documents of a different import. The conclusion is that the Executive Government
has not established a right under the Royal Prerogative to take the hotel of the
respondents for temporary use and occupation during war without the payment of
compensation or by referring the respondents to a Commission which could only
make grants “ex gratia” within the limits of its jurisdiction.
I am further of opinion that the plea of
the appellant that the prerogative right of the Crown, whatever it may have
been, has not been abated, abridged or curtailed by any of the Defence Acts,
1842–1873, or by any other statute, cannot be maintained. I propose to examine
the main statutory provisions which regulate the rights of the subject and the
obligations of the Executive when lands or buildings are taken temporarily for
use and occupation on the occasion of a public exigency. The constitutional
principle is that when the power of the Executive to interfere with the property
or liberty of subjects has been placed under Parliamentary control, and directly
regulated by statute, the Executive no longer derives its authority from the
Royal Prerogative of the Crown but from Parliament, and that in exercising such
authority the Executive is bound to observe the restrictions which Parliament
has imposed in favour of the subject. I think that the statutory provisions
applicable to the interference by the Executive with the land and buildings of
the respondents, bring the case within the above principle. It would be an
untenable proposition to suggest that Courts of law could disregard the protective
restrictions imposed by statute law where they are applicable. In this respect
the sovereignty of Parliament is supreme. The principles of construction to be
applied in deciding whether the Royal Prerogative has been taken away or
abridged are well ascertained. It may be taken away or abridged by express
words, by necessary implication, or, as stated in Bacon's Abridgement, where an
Act of Parliament is made for the public good, the advancement of religion and
justice, and to prevent injury and wrong. Statutes which provide rent or
compensation as a condition to the right of the Executive to take over the
temporary possession of lands or buildings on the occasion of public exigency
come, in my opinion, within the category of statutes made for the advancement of
justice and to prevent injury and wrong. This is in accord with the
well-established principle that, unless no other interpretation is possible,
justice requires that statutes should not be construed to enable the land of a
particular individual to be confiscated without payment. I am further of opinion
that where a matter has been directly regulated by statute there is a necessary
implication that the statutory regulation must be obeyed, and that as far as
such regulation is inconsistent with the claim of a Royal Prerogative right,
such right can no longer be enforced.
In 1798 (38 Geo. 3, c. 27) power is
given to take possession of land during such time as the exigencies of public
service should require, with a provision for compensation; but this Act was
limited in its operation to the continuance of the then present war.
In 1803, by 43 Geo. 3, c. 55, similar
powers are given. This, again, was a temporary Act during the then present war
with France. A doubt arose whether this Act would enable the Executive to take
land for a definite period of time, extending beyond the immediate exigency. In
consequence it was repealed in 1804, and 44 Geo. 3, c. 45, enacts that land may
be acquired either by absolute purchase for public service or for use and
possession during such time as the exigence of the public service may require.
Sects. 11 and 12 provide compensation either for the purchase of land or for its
temporary use. In 1842 the Defence of the Realm
Act was passed to consolidate and amend the laws relating to the services of the
Ordnance Department and the vesting and purchase of lands and hereditaments for
those services, and for the defence and security of the realm. This Act has been
subsequently amended, but not on any subject material to this appeal, prior to
1914. Sect. 16 empowers the principal officers of Her Majesty's Ordnance to
treat and agree with the owner or owners of lands, buildings, and hereditaments,
or with any person or persons interested therein either for the absolute
purchase thereof or for the possession or use thereof during such time as the
exigence of the public service shall require. Sect. 19 enacts that if bodies or
other persons thereby authorized to contract on behalf of themselves or others
or other person or persons interested in any such lands, buildings, or other
hereditaments, shall, for the space of fourteen days next after notice in
writing decline to treat or agree, or shall refuse to accept such sum of money,
as shall be offered for absolute purchase, or such annual rent or sum as shall
be offered for hire or rent thereof either for a time certain, or for such
period as the exigence of the public service may require, the principal officers
may require two or more justices of the peace, or other authority named, to put
them or any person appointed by them into immediate possession of such lands,
buildings, or other hereditaments. Then follows a complete provision for
summoning a jury to assess the compensation to be paid either for the absolute
purchase of such lands, buildings, or other hereditaments, or for the possession
or use thereof, as the case may be.
Sect. 23 provides that no such lands,
buildings, or other hereditaments shall be taken without the consent of the
owner or owners or other interested person or persons unless the necessity or
expediency of the taking the same has been certified as directed, or “unless the
enemy shall have actually invaded the United Kingdom at the time when such
lands, buildings, or other hereditaments shall be taken.” This latter provision
is important, since it clearly shows that the Legislature was providing against
such an emergency as invasion, which might occur during a
period of war, and introducing in such a case an exceptional procedure.
Sect. 34 empowers the principal officer
of Her Majesty's Ordnance to bring actions, suits, or other proceedings,
provided that in all such actions, suits, or other proceedings, the legal
rights, privileges, and prerogatives of Her Majesty, her heirs and successors,
shall not be defeated or abridged. It is not alleged that procedure by Petition
of Right defeats or abridges the legal rights, privileges, or prerogatives of
the Crown, if the conditions are such as entitle the respondents to resort to
this form of procedure. If this Act and the amending Acts prior to 1914 had
stood alone it would have been no answer to say that the statutory conditions
were inconvenient or unduly cumbrous to meet the exigency of the public service
in defence of the realm. It is for Parliament to determine what the exigency of
the public service may require, and, if amending provisions are found to be
necessary, to enact them in an amending statute. It will appear subsequently
that this course was followed on the outbreak of the war in 1914.
It was further argued on behalf of the
appellant, that, apart from the Royal Prerogative, or from any power vested in
the Executive under preceding statutes, a subject was deprived of his right to
compensation by virtue of the powers conferred by the Defence of the Realm
Consolidation Act, 1914, and of the Regulations issued thereunder. Under this
Act “His Majesty in Council has power during the continuance of the present war
to issue Regulations for securing the public safety and the defence of the
realm.” There is a special provision that such Regulations may provide for the
suspension of any restrictions on the acquisition or user of land, or the
exercise of the power of making byelaws or any other power under the Defence
Acts, 1842 to 1873, or the Military Lands Acts, 1891 to 1903. The Regulations
issued authorize the competent naval or military authority, and any person duly
authorized by him, where for the purpose of securing the public safety or
defence of the realm it is necessary so to do, to take possession of any land,
building, or other property, or to do any other act involving interference with
private rights of property which is necessary for the
purpose aforesaid. The effect of this Regulation is to enable the competent
naval or military authority to take immediate possession of land or buildings,
where it is necessary for securing the public safety or defence of the realm. In
Regulation 62, the competent naval or military authority may be any commissioned
officer, not below the rank of a Lieutenant-Commander in the Navy, or Field
Officer in the Army or Air Force. There is no provision for compensation for
acts done under the powers conferred by Regulation 62. Nor is any such provision
necessary. Compensation was already assured under statutory enactment.
Regulation 2B does contain a method of determining the price to be paid on
taking possession of war material, food, forage, and stores in default of
agreement, and the attention of your Lordships was not called to any preceding
statute containing a right to compensation.
My Lords, I agree in the view expressed
by Warrington L.J. that the Defence Acts, 1842 to 1873, and the Act of 1914 and
the Regulations made thereunder must be read together. The power to take
possession of land or buildings for temporary use or occupation is derived from
the Defence Act, 1842, and the Act of 1914, and the Regulations made thereunder
adapt the exercise of the powers conferred by the Defence Act of 1842 to the
exigencies of modern warfare during a period of war; but they do not affect the
provisions of the Defence Act, which confer a right to compensation, and provide
procedure for assessment of the amount in default of agreement. I think that
there is no difficulty in applying the ordinary rules of construction, but, if
there is room for ambiguity, the principle is established that, in the absence
of words clearly indicating such an intention, the property of one subject shall
not be taken without compensation for the benefit to others or to the public:
Attorney-General v. Horner (1884) 14 QB D 245 ; London and North Western Ry. Co. v. Evans.
[1893] 1 Ch 16 So long as the possession of lana or buildings can immediately be taken
for purposes of public safety there is no inconsistency in subsequently
determining under statutory procedure the amount of payment either by way of rent
or compensation. It is not necessary in your Lordships' House to distinguish the
present appeal from In re A Petition of Right. [1915] 3 KB 649 Peterson J. thought that the present case was covered by the judgment
of the Court of Appeal in that case, but when that case came before your
Lordships' House, an arrangement was made rendering it unnecessary to give a
formal judgment.
The appellant in the statement of
contentions tabled in the appellant's case, claimed “that the Legislature had,
by the Defence of the Realm (Acquisition of Land) Act, 1916, recognized the
existence of and had confirmed the prerogative.” Reliance is placed on the words
in s. 1, which allows the Government department in possession of lands to
continue in possession for the specified time, where possession had been taken,
whether in exercise or purported exercise of any prerogative right of His
Majesty, or of any powers conferred by or under any enactment relating to the
defence of the realm. This section does not enlarge or extend the Royal
Prerogative in any direction, or deprive the subject of compensation if, apart
from this section, he would have been entitled to claim it. In the letter of May
9, 1916, the Controller of Supplies states that the premises have been
commandeered by the military authorities under the Defence of the Realm Act, and
this statement is, in my opinion, well founded.
If the respondents are entitled to a
declaration in the terms of Head No. 4 of the Petition of Right, the proper form
of procedure to obtain such a declaration in favour of a subject against the
Crown has been followed. There is no allegation of any tortious conduct on the
part of the Crown. On the contrary the claim to compensation assumes that the
entry on, and the taking of possession of, the hotel, are acts which are legally
justifiable. In an ordinary case, under the Lands Clauses Acts, when promoters
enter into possession of lands in conformity with their statutory rights, and
delay or refuse to put in force the necessary procedure for the assessment of
compensation in default of agreement, the remedy is by mandamus. This remedy
would not be applicable against the Crown. I did not understand the
Attorney-General to raise any objection to the procedure by petition of right if
the respondents could establish a claim to compensation, or to the form of the
declaration made by the Court of Appeal.
My Lords, in my opinion, the appeal
should be dismissed with costs.
Order of the Court of Appeal affirmed, and appeal dismissed. The
costs incurred by the respondents in respect of the appeal to be paid to them in
the manner directed by 23 & 24 Vict. c. 34.
Lords' Journals, May 10, 1920.