National Grid Electricity Transmission Plc v Arnold White Estates Ltd
2014
COURT OF APPEAL (CRIMINAL DIVISION)
United Kingdom
CORAM
- SIR STANLEY BURNTON
Areas of Law
- Property and Real Estate Law
- Administrative Law
- Civil Procedure
2014
COURT OF APPEAL (CRIMINAL DIVISION)
United Kingdom
CORAM
AI Generated Summary
This case involved a dispute over the quantification of compensation payable for the grant of a wayleave. Arnold White Estates Limited (AWE) owned land subject to a contractual grant for an overhead power line. AWE had conditionally contracted to sell the land, but National Grid's statutory wayleave caused this contract to fall through. The Upper Tribunal awarded compensation based on the contract price rather than the lower open-market value. National Grid appealed, arguing for compensation based on the market value. The Court of Appeal dismissed the appeal, emphasizing that the principle of equivalence under the Electricity Act 1989 required compensation based on the contract price.
Judgment
Lord Justice Briggs :
Introduction
This appeal raises a novel point about the quantification of compensation payable to the owner of land in respect of the grant of a wayleave for an electric power line, pursuant to paragraphs 6 and 7 of schedule 4 to the Electricity Act 1989.
The point arises from the fact that, prior to the grant of the wayleave, the owner of the land affected by it had agreed to sell it to developers for a price which, by the time of the grant, substantially exceeded its development value on the open market, pursuant to a conditional contract which fell away because of the grant of the wayleave. The single question arising on this appeal is whether the amount of compensation payable to the owner of the land should be measured by reference to the price payable under the conditional contract or the substantially lower open market development value of the land, at the time of the grant of the wayleave. The Upper Tribunal (Lands Chamber) decided that compensation should be measured by reference to the contract price. The appellant, National Grid Electricity Transmission PLC (“National Grid”), contends that this involves a radical departure from settled principles governing compensation payable for compulsory acquisition, with major implications for the electricity supply industry.
The Facts
The facts are undisputed, and comprehensively set out in the decision of the Tribunal. For present purposes, the following brief summary will suffice.
At the beginning of this century the Respondent Arnold White Estates Limited (“AWE”) was the owner of land (previously exploited by sand extraction) of about 19.5 acres south of Leighton Buzzard, referred to in the Tribunal as “Area 15C”. An overhead power line ran east-west across the middle of Area 15C, supported by pylons on adjacent land, but not on Area 15C itself. The power line overflew Area 15C pursuant to a contractual wayleave granted by AWE’s predecessor in title in 1964, which was terminable on six months’ written notice.
Area 15C was, together with adjacent land, shown in the Bedfordshire Local Plan Review 2004 as suitable for residential development. AWE promoted a Development Brief for Area 15C, together with adjoining land to the north, northeast and west which was approved by the South Bedfordshire District Council in September 2006. The development brief recognised an uncertainty whether the power line would continue to cross Area 15C or be removed, and proposed alternati