EE Limited & Anor v Affinity Water Limited

EE Limited & Anor v Affinity Water Limited

The Tribunal determined that the appropriate annual consideration for the new lease is £3,300, reflecting the market value of the Code rights for a water tower site, with a 10% uplift for the benefit of a flexible break clause. Compensation for professional fees is set at £7,500, covering reasonable legal and valuation expenses incurred by the respondent. The Tribunal found that the pattern of values established in previous decisions provides a reliable guide and that future facilities management costs should be claimed as compensation if and when incurred.

Parties
Claimant: EE Limited; Claimant: Hutchison 3G UK Limited; Respondent: Affinity Water Limited
Jurisdiction
England and Wales
Judgment Date
17 January 2022
Procedural Posture
Reference Under Electronic Communications Code / Determination of Financial Terms for New Agreement
Outcome
Application allowed in part
Legal Topics
Electronic Communications Code, Consideration and Compensation, Valuation of Code Rights, Professional Fees Recovery
Property Law Telecommunications Law Electronic Communications Code Consideration and Compensation Valuation of Code Rights Professional Fees Recovery

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Parties

EE Limited

Claimant

Hutchison 3G UK Limited

Claimant

Affinity Water Limited

Respondent

Procedural Posture

Reference Under Electronic Communications Code / Determination of Financial Terms for New Agreement

Legal Issues

  1. 1 What is the appropriate annual consideration payable under a new Code agreement for a telecommunications site on a water tower?
  2. 2 What compensation is payable for professional fees incurred by the site provider before the order conferring Code rights?

Ratio Decidendi

The Tribunal determined that the appropriate annual consideration for the new lease is £3,300, reflecting the market value of the Code rights for a water tower site, with a 10% uplift for the benefit of a flexible break clause. Compensation for professional fees is set at £7,500, covering reasonable legal and valuation expenses incurred by the respondent. The Tribunal found that the pattern of values established in previous decisions provides a reliable guide and that future facilities management costs should be claimed as compensation if and when incurred.

Court Disposition

Application allowed in part

Orders

  • The subsisting Code agreement is terminated from a date to be agreed.
  • The parties are ordered to enter into a new agreement on previously agreed terms at an annual rent of £3,300.