Clippens Oil Co., Ltd v. Edinburgh and District Water Trustees [1901] ScotLR 38_354 (22 February 1901)

Clippens Oil Co., Ltd v. Edinburgh and District Water Trustees [1901] ScotLR 38_354 (22 February 1901)

The serving of a statutory notice under the Waterworks Clauses Act 1847 creates a binding statutory contract obliging the undertakers to pay compensation for minerals left unworked, as fixed by arbitration. Reservations in the notice do not relieve the undertakers of this obligation, and the arbitral award is final as to compensation. The right of support for the Crawley pipe, established independently, does not affect the statutory obligation to pay compensation under the award.

Citation
[1901] ScotLR 38_354
Parties
Pursuer: Clippens Oil Company, Limited; Defender: Edinburgh and District Water Trustees
Jurisdiction
Scotland
Judgment Date
22 February 1901
Procedural Posture
Civil / Appeal (reclaiming Note) From Lord Ordinary's Interlocutor
Outcome
Appeal allowed; interlocutor of Lord Ordinary recalled; decree for payment in favour of pursuers.
Legal Topics
Finality of Arbitral Awards, Statutory Contract Under Waterworks Clauses Act 1847, Compulsory Powers of Undertakers, Effect of Statutory Notice, Right of Support for Water Pipes, Compensation for Minerals Left Unworked
Arbitration Property Law Statutory Compensation Public Utilities Finality of Arbitral Awards Statutory Contract Under Waterworks Clauses Act 1847 Compulsory Powers of Undertakers Effect of Statutory Notice +2 more

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Parties

Clippens Oil Company, Limited

Pursuer

Edinburgh and District Water Trustees

Defender

Procedural Posture

Civil / Appeal (reclaiming Note) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether reservations in statutory notices under the Waterworks Clauses Act 1847 allow the undertakers to refuse payment of compensation awarded by arbitration for minerals left unworked.
  2. 2 Whether the arbitral award is final and binding as to compensation, notwithstanding subsequent findings regarding the right of support for the Crawley pipe.

Ratio Decidendi

The serving of a statutory notice under the Waterworks Clauses Act 1847 creates a binding statutory contract obliging the undertakers to pay compensation for minerals left unworked, as fixed by arbitration. Reservations in the notice do not relieve the undertakers of this obligation, and the arbitral award is final as to compensation. The right of support for the Crawley pipe, established independently, does not affect the statutory obligation to pay compensation under the award.

Court Disposition

Appeal allowed; interlocutor of Lord Ordinary recalled; decree for payment in favour of pursuers.

Orders

  • Decern for payment by the defenders to the pursuers of £8079 with interest at 5% per annum from 11 November 1898 and £564 10s 11d taxed expenses for the first reference.
  • Decern for payment by the defenders to the pursuers of £2250 with interest at 5% per annum from 11 November 1898 and £533 4s 5d taxed expenses for the second reference.