Developer Rockwell Properties has been seeking an appeal of a High Court ruling intended to save the development prospects of a major waterfront hotel, leisure and apartment complex on the Canary Wharf waterfront, E14.
The project, comprising a 400-bedroom hotel and 279 serviced apartments, received planning permission in 2020 and Premier Inn had signed an agreement to run the hotel. The project, according to a judgment handed down last week, had a development value in excess of £200m.
As part of the agreement between the developer and landowners Quay House Admirals Way, a restriction was added to the land’s title which could, in some circumstances, allow Rockwell to block the project from continuing.
The landowner and developer fell out last year, and the landowners have been looking for other developers to work with. However, they say that the covenant has proven to be a major bar.
In a ruling handed down earlier this month, High Court judge Simon Gleeson agreed. He said that Rockwell could be compensated financially for the loss of the covenant and ordered the landowners to pay £1.5m in advance to the court to cover the compensation.
Even so, Rockwell has been seeking permission to appeal the ruling.
Rockwell’s lawyer, Jonathan Seitler QC, argues that the ruling opens up a new area of law.
“The specifics of Mr Seitler’s argument in this regard are as follows,” he judge said in a ruling today.
“There is authority as to how the court should exercise its jurisdiction to amend the register in cases where a unilateral notice has been entered either wrongly, or in circumstances where its validity is in doubt. There is no direct authority as to what the position should be in respect of the removal of an entry which, as entered, was properly entered as a result of a bilateral agreement between the proprietor of the title and the beneficiary of the restriction.”
Seitler argues that this is a wholly new case, requiring wholly new rules, and that in the absence of authority the issue should be decided by a more senior court.
The judge refused permission to appeal, saying that, while there is no specific authority on this particular set of circumstances, it isn’t a wholly new area of law, and there are some authorities that can be used.
Even so, the argument may not be over. Rockwell can directly ask judges at the Court of Appeal to take on the case.
The judge also ruled today that the landowners must pay the £1.5m into the court within 28 days.
