London Residuary Body v Havering London Borough Council

Highway scheme — Compulsory purchase orders of London borough — Highway powers passed to Greater London Council — Notices to treat and to enter served by Greater London Council — Highway built and passed back to London borough on abolition of Greater London Council — Compensation claims outstanding — Whether London borough or London Residuary Body liable to pay compensation claimsIn 1971 the defendant London borough made two compulsory purchase orders in connection with highway improvements. When the Greater London Council became the responsible highway authority in 1974, that authority served notices to treat and of entry, took possession of the land and completed the improvements before they were abolished in April 1986. From that date the defendant borough became the highway authority again. Very few of the claims for compensation had been settled by April 1986. The London Residuary Body sought a declaration that the defendant borough was now responsible for settling and paying the compensation claims by virtue of the Local Government Reorganisation (Property etc) Order 1986, made under the Local Government Act 1985. Although the Greater London Council had not acquired title to the subject land, they had acquired “rights” to it which enabled them to enter, these rights in the special circumstances of compulsory purchase are interests in land; these interests in land passed as land to the defendant borough together with the rights and liabilities arising in connection with the highway and they included the obligation to meet compensation claims. Held Where possession is taken of land under section 11 of the Compulsory Purchase Act 1965, it is “acquired” even if the legal title remains outstanding. That was the position in April 1986 when the Greater London Council was abolished. Whether one regards the statutory right of entry as of itself acquisition of the land, or the statutory right as an interest in land, the result is the same and “land” within the meaning of the 1986 Order was held by the Greater London Council immediately before abolition in April 1986. Following that date land held for public highways became vested with the defendant borough under the 1986 Order; the defendants were therefore liable to settle and pay the compensation claims. Michael Rich QC and Miss A Williams (instructed by the solicitor to the London Residuary Body) appeared for the plaintiff; and James Gilliland QC and Robert Pearce (instructed by the solicitor to Havering London Borough Council) appeared for the defendants.