A High Court decision this week warns developers of the need to carry out full research into land drainage before securing land deals. If they fail to do so, they could be faced with unexpected extra costs that they believed would be met by others.
Crest Homes (South West) Ltd has failed to force Gloucestershire County Council to meet the costs for extra drainage to a site after it was found that the original drainage that the council had covenanted to install under a land transfer deal was inadequate.
The council bought part of a Crest development site at Badgeworth, Gloucestershire, to provide a link road and, as part of the deal, agreed to install an adequate surface-water drainage system.
However, when excess water reached the Staverton water course, surrounding land was flooded. The only solution was for Crest to excavate one of their housing plots and build a lagoon to cope with the excess water.
When it then sought the £115,555 cost from the council they refused to pay and that refusal has been upheld by the High Court. Jacob J ruled that the council were under no duty to deal with flooding away from the area of land for which they had covenanted to provide drainage.
Crest Homes (South West) Ltd v Gloucestershire County Council Chancery Division (Jacob J) December 15 1998
David Iwi (instructed by Rawlinson & Butler, of Crawley) appeared for the plaintiffs; Martin Rodger (instructed by Clarke Willmott Clarke, of Bristol) appeared for the defendants.
