Standard Commercial Property Securities Ltd & Anor v. City Of Glasgow Council & Anor [2004] ScotCS 260 (03 December 2004)

Standard Commercial Property Securities Ltd & Anor v. City Of Glasgow Council & Anor [2004] ScotCS 260 (03 December 2004)

The Council acted unlawfully by failing to consider, in the specific circumstances of the site, what constituted the best price or best terms for the disposal of the land as required by section 191(3) of the 1997 Act. The Council's reliance on a general policy of indemnification of costs, without site-specific assessment or consideration of alternative offers or terms, was insufficient to discharge its statutory duty. The decisions to select Atlas as preferred developer and to enter into a back-to-back agreement were therefore ultra vires and must be reduced.

Citation
[2004] ScotCS 260
Parties
Petitioner: Standard Commercial Property Securities Limited; Petitioner: Standard Commercial Property Development Limited; First Respondent: City of Glasgow Council; Second Respondent: Atlas Investments Limited
Jurisdiction
Scotland
Judgment Date
03 December 2004
Procedural Posture
Judicial Review / Reclaiming Motion (appeal) From Lord Ordinary's Decision
Outcome
Petition sustained; decisions of 10 April 2003 reduced as ultra vires and unlawful.
Legal Topics
Compulsory Purchase, Disposal of Land by Local Authorities, Best Price/best Terms Requirement, Ultra Vires, Reasonableness of Administrative Decisions
Administrative Law Planning Law Local Government Law Compulsory Purchase Disposal of Land by Local Authorities Best Price/best Terms Requirement Ultra Vires Reasonableness of Administrative Decisions

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Parties

Standard Commercial Property Securities Limited

Petitioner

Standard Commercial Property Development Limited

Petitioner

City of Glasgow Council

First Respondent

Atlas Investments Limited

Second Respondent

Procedural Posture

Judicial Review / Reclaiming Motion (appeal) From Lord Ordinary's Decision

Legal Issues

  1. 1 Whether the City of Glasgow Council's decision to enter into a back-to-back agreement with Atlas Investments Limited for compulsory purchase and disposal of land complied with section 191(3) of the Town and Country Planning (Scotland) Act 1997 (requirement to dispose of land at best price or best terms)
  2. 2 Whether the Council acted ultra vires or unreasonably in selecting Atlas as preferred developer and proceeding with the agreement before planning permission and optimal development scheme were determined

Ratio Decidendi

The Council acted unlawfully by failing to consider, in the specific circumstances of the site, what constituted the best price or best terms for the disposal of the land as required by section 191(3) of the 1997 Act. The Council's reliance on a general policy of indemnification of costs, without site-specific assessment or consideration of alternative offers or terms, was insufficient to discharge its statutory duty. The decisions to select Atlas as preferred developer and to enter into a back-to-back agreement were therefore ultra vires and must be reduced.

Court Disposition

Petition sustained; decisions of 10 April 2003 reduced as ultra vires and unlawful.

Orders

  • Declarator that the Council's decisions of 10 April 2003 to select Atlas Investments Limited as preferred developer and to enter into a back-to-back agreement are ultra vires and unreasonable.
  • Reduction of the Council's decisions of 10 April 2003.