Eden and Others v. North-Eastern Railway Co. [1907] UKHL 626 (09 July 1907)

Eden and Others v. North-Eastern Railway Co. [1907] UKHL 626 (09 July 1907)

The correct measure of compensation under section 78 is the value of the coal which the railway company requires to be left unworked, i.e., the profit that would have been made by working it in the ordinary course, not merely the increased expenses or loss from working other coal. The compensation is to be apportioned between lessor and lessee according to their respective interests.

Citation
[1907] UKHL 626
Parties
Appellants: Eden and Others; Respondent: North-Eastern Railway Company
Jurisdiction
United Kingdom
Judgment Date
09 July 1907
Procedural Posture
Appeal / House of Lords Judgment on Appeal From Court of Appeal
Outcome
Appeal allowed; judgment of Bigham, J. restored.
Legal Topics
Compensation for Minerals Left Unworked, Measure of Compensation Under Statutory Powers, Railways Clauses Consolidation Act 1845 Section 78, Apportionment Between Lessor and Lessee
Compensation Law Property Law Mining Law Railway Law Compensation for Minerals Left Unworked Measure of Compensation Under Statutory Powers Railways Clauses Consolidation Act 1845 Section 78 Apportionment Between Lessor and Lessee

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Parties

Eden and Others

Appellants

North-Eastern Railway Company

Respondent

Procedural Posture

Appeal / House of Lords Judgment on Appeal From Court of Appeal

Legal Issues

  1. 1 What is the correct measure of compensation payable by a railway company under section 78 of the Railways Clauses Consolidation Act 1845 when it requires coal to be left unworked for support of the railway?
  2. 2 Should compensation be limited to increased expenses and loss from working substituted coal, or should it be the profit/value of the coal left unworked?

Ratio Decidendi

The correct measure of compensation under section 78 is the value of the coal which the railway company requires to be left unworked, i.e., the profit that would have been made by working it in the ordinary course, not merely the increased expenses or loss from working other coal. The compensation is to be apportioned between lessor and lessee according to their respective interests.

Court Disposition

Appeal allowed; judgment of Bigham, J. restored.

Orders

  • Judgment of Court of Appeal reversed.
  • Judgment of Bigham, J. restored.