The Court of Appeal has ruled that courts can tell litigants to seek alternative methods of resolution in a property dispute over knotweed.
The case centred on a dispute between a homeowner in Merthyr Tydfil and the local council. The homeowner, James Churchill, claimed Japanese knotweed had encroached on his property from neighbouring council land and reduced its value.
Churchill sent a letter of claim for nuisance to the council in January 2021. The council responded to his letter by saying he should make use of its corporate complaints procedure instead. Churchill issued his claim and the council asked the court to stay proceedings, and to direct Churchill to use the corporate complaints ADR procedure. The judge refused and the case ended up in the Court of Appeal earlier this month. Because of the nature of the legal point, the Bar Council and Law Society both made representations.
In a ruling handed down yesterday, the three-judge panel ruled that courts do have the power to tell litigants to go to ADR. “The court can lawfully stay proceedings for, or order the parties to engage in, a non-court-based dispute resolution process, provided that the order made does not impair the very essence of the claimant’s right to proceed to a judicial hearing, and is proportionate to achieving the legitimate aim of settling the dispute fairly, quickly and at a reasonable cost,” Sir Geoffrey Vos, Master of the Rolls, said in the judgment.
Julia Tobbell, a partner in the property litigation team at Forsters, said the ruling “should encourage a more pragmatic and holistic approach to disputes, and shows the increasing focus of the courts towards settlement”.
“It is always sensible to look at other ways of resolving a dispute, given the enormous cost of litigation and lengthy court delays,” she said.
While this ruling is unlikely to lead to an immediate reduction in limitation, Tobbell said: “This case could be particularly useful for large institutions or companies regularly faced with high volumes of litigants who will not engage in a complaints process designed to avoid the need for litigation.”
Churchill v Merthyr Tydfil County Borough Council
Court of Appeal (Lady Carr of Walton-on-the-Hill, Lady Chief Justice of England and Wales Sir Geoffrey Vos, Master of the Rolls and Lord Justice Birss)
29 November 2023
