Lea Valley Developments Ltd v Derbyshire

Lea Valley Developments Ltd v Derbyshire

Paragraph 4(D) of the Award does not determine the basis of compensation for the damage in question; it is not apt to cover demolition and rebuilding, nor does it specify the basis for payment in lieu. The proper measure of compensation under section 7(2) of the Party Wall etc. Act 1996 is to be assessed according to common law principles, which may allow for either reinstatement or diminution in value depending on the facts. The Award was ultra vires to the extent it purported to determine compensation for section 6 works, and the doctrine of approbation does not bar the claimant's arguments.

Parties
Claimant: Lea Valley Developments Limited; Defendant: Thomas William Derbyshire
Jurisdiction
England and Wales
Judgment Date
16 June 2017
Procedural Posture
Civil (part 8 Claim) / Judgment After Hearing of Declarations Under Party Wall Etc. Act 1996
Outcome
Both claimant's and defendant's applications for declarations refused.
Legal Topics
Party Wall Etc. Act 1996, Damages for Property Damage, Statutory Interpretation, Measure of Compensation
Property Law Construction Law Party Wall Etc. Act 1996 Damages for Property Damage Statutory Interpretation Measure of Compensation

Case Brief

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Parties

Lea Valley Developments Limited

Claimant

Thomas William Derbyshire

Defendant

Procedural Posture

Civil (part 8 Claim) / Judgment After Hearing of Declarations Under Party Wall Etc. Act 1996

Legal Issues

  1. 1 Whether paragraph 4(D) of the Award determines the basis of compensation for damage caused by notifiable works under the Party Wall etc. Act 1996
  2. 2 Whether the proper measure of compensation is cost of reinstatement or diminution in value
  3. 3 Whether paragraph 4(D) of the Award was ultra vires

Ratio Decidendi

Paragraph 4(D) of the Award does not determine the basis of compensation for the damage in question; it is not apt to cover demolition and rebuilding, nor does it specify the basis for payment in lieu. The proper measure of compensation under section 7(2) of the Party Wall etc. Act 1996 is to be assessed according to common law principles, which may allow for either reinstatement or diminution in value depending on the facts. The Award was ultra vires to the extent it purported to determine compensation for section 6 works, and the doctrine of approbation does not bar the claimant's arguments.

Court Disposition

Both claimant's and defendant's applications for declarations refused.

Orders

  • No declarations granted to either party.
  • Counsel to make submissions on the appropriate form of order and consequential matters by 12 noon on 15th June 2017.