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England and Wales High Court (Chancery Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Triplark Ltd v Whale & Ors [2024] EWHC 1440 (Ch) (12 June 2024) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2024/1440.html Cite as: [2024] EWHC 1440 (Ch) |
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BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES
PROPERTY, TRUSTS AND PROBATE LIST (ChD)
Fetter Lane, London, EC4A 1NL |
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B e f o r e :
(sitting as a Deputy Judge of the High Court)
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TRIPLARK LIMITED |
Claimant |
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- and - |
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(1) PHILIP JOHN WHALE AND KATHERINE ANNE CALVERT (2) SHARON ISABEL SUZANNE BREEN (3) FAITH DEWHURST AND SARAH JANE BRODIE (in their capacity as personal representatives of the Estate of Eve Elsie Ethel Dewhurst) (4) AYLIN ORBASLI (5) THE ESTATE OF MS SALLY VERNON (6) SIMON JOHN HAGGIS (7) ANGELIKA MARTHA WIENRICH (8) EILEEN BISSELL AND MICHELE ANNE FREEDMAN (9) NEIL HARE-BROWN (10) DAVID MAX MAZOWER (11) MARAÉAD AOIN WEISZQUINN AND SHULAMITH SORCHA WEISZ QUINN (in their capacity as personal representatives of the Estate of ErnaWeiss) (12)ANNA SABINE ROSE |
Defendants |
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Christopher Heather KC (instructed by Payne Hicks Beach Solicitors) for the Defendants
Hearing dates: 13 - 14 May 2024
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Crown Copyright ©
This judgment was handed down by the judge remotely by circulation to the parties' representatives by email. The date and time for hand-down is deemed to be 10.30 am on 12 June 2024
Mr Charles Morrison (sitting as a Deputy Judge of the High Court):
Introduction
"The replacement systems do not comply with the Claimant's obligations in the Lease for the reasons in that:
(i) They additionally require the installation of a Heat Interface Unit ("HIU") within each flat (which is not currently there). A HIU is a substantial object for which an appropriate location within the flat must be found;
(ii) New pipework is required in each flat between the HIU and the existing radiators and between the HIU and the points of hot water consumption (kitchen sink, shower, basin etc);
(iii) The HIU would require a new electrical power supply to be installed;
(iv) The Defendants would potentially be responsible for the repair and maintenance of each HIU and new pipework pursuant to clause 3(3)(a) of the Lease, which would amount to an increase in the burden on the Defendants;
(v) The new systems and/or the HIU do not comply with the landlord's obligations in clause 5(7) of the Lease in that:
(a) In order to produce hot water, a HIU requires a supply of cold water which is heated across the interface by the communal heating supply. This is not the supply of hot water to the flat. It is the supply of cold water to the flat, which is then required to be heated by new apparatus within the flat.
(b) The new system does not provide heat to the radiators in the flat. It provides heat to the HIU.
(vi) Accordingly the agreement of each Defendant and appropriate variations of each Defendant's Lease would be required for the new systems."
The Lease
"ALL THAT the flat particulars where are set out in Part 3 of the said Second Schedule and including one half part in depth of the structure between the floors of the said flat and the ceilings of the flat or structure below it and of the structure between the ceilings of the said flat and the floor of the flat or structure above it (hereinafter called "the flat")."
"…every wall separating the flat from any other part of the Building shall be a party wall severed medially and shall be included in the demised premises as far only as the medial plane thereof."
"(a) Repair maintain and renew uphold and keep the flat (other than the parts thereof comprised and referred to in paragraphs (2) (3) and (4) and clause 5 hereof) and (subject to Clause 10(1) hereof) including all … water gas electrical and central heating apparatus … drains pipes wires … solely applicable to the flat and all fixtures and additions thereto in good and substantial repair and condition…
(b) For the purpose of carrying out the obligations in sub-paragraph (a) of this paragraph relating to sanitary and water pipes apparatus and installations and all plumbing works the Lessee will only employ competent persons whose knowledge of the workings of the Building or similar buildings would enable them to carry out any work in such a manner as would not damage adjoining or neighbouring flats"
(2) … maintain and keep in good and substantial repair:-
(i) the main structure of the Building including … its main water tanks main drains gutters and rain water pipes (other than those included in this demise or in the demise of any other flat in the Building)
(ii) all such gas and water mains and pipes … in under and upon the Building as are enjoyed or used by the Lessee in common with the owners or lessees of the other flats
(7) Maintain at all reasonable hours a reasonable and adequate supply of hot water to the flat and during the period from the First day of October to the First day of May in every year provide sufficient and adequate heat to the radiators for the time being fixed in the flat (if any) unless the Lessors shall be unable to perform this covenant by reason of the act neglect or default of the Lessee or any mechanical breakdown or interruption of the supply of fuel or current or other cause whatsoever over which the Lessors have no control …
(8) Maintain and renew when required the central heating and hot water apparatus and all ancillary equipment thereto other than that contained in the flat
(17) Without prejudice to the foregoing to do or cause to be done all such works installations acts matters and things as in the absolute discretion of the Lessors may be necessary or advisable for the proper maintenance safety and administration of the Building.
The Declarations
"renew, by replacement, the hot water and/or central heating systems in Northwood Hall in circumstances where the replacement is not identical but provides the same service it has covenanted to provide (the First Declaration); and/or
disconnect the hot water and/or heating apparatus in any flat from an existing communal hot water and/or heating system and reconnect that apparatus to the replacement communal system (s) provided in its absolute discretion that work is necessary or advisable for the proper maintenance safety and administration of Northwood Hall." (the Second Declaration)
"in breach of its obligation to supply hot water and heat under clause 5(7) if it installed a system capable of providing the required hot water and/or heat up to the exterior of the flat in a manner that the flat owner could connect[ion] to if they wish and then decommissioned the pre-existing system so that it no longer supplied hot water or heat." (the Alternative Declaration)
Declarations – The law
"The jurisdiction to grant remedies in the form of declarations is not derived from r.40.20, as that rule is concerned only with the short point that a declaration can be granted whether or not any other remedy is claimed. The High Court's jurisdiction is based on statute and is now derived from the Senior Courts Act 1981 s.19…
The power to make declarations is a discretionary power. As between the parties to a claim, the court can grant a declaration as to their rights, or as to the existence of facts, or as to a principle of law (Financial Services Authority v Rourke [2002] CP Rep 14 (Neuberger J)). When considering whether to grant a declaration or not, the court should take into account justice to the claimant, justice to the defendant, whether the declaration would serve a useful purpose, and whether there are any other special reasons why or why not the court should grant the declaration (ibid.)….
In the several judgments delivered by the Court of Appeal in the case of Rolls-Royce Plc v Unite the Union [2009] EWCA Civ 387; [2010] 1 WLR 318, CA, there are extended discussions of the power of courts to grant declaratory relief as a final remedy in the context of a claim proceeding under the CPR Pt 8 alternative procedure and raising issues under the Employment Equality (Age) Regulations 2006 likely to affect persons other than the parties before the court. In succinctly stating and explaining the principles to be applied, Aiken LJ noted that the circumstances in which the court will be prepared to grant declaratory relief have been widened considerably in modern times (ibid. at paras 118 to 120). There is nothing in the general statements found in the modern authorities as to the general principles applicable that requires that a declaration may not be granted unless there is an actual or imminent threat to a legal right (Pavledes v Hadjisavva [2013] EWHC 124 (Ch) (David Richards J)).
Those authorities demonstrate a willingness by the courts in appropriate cases to make declarations as regards rights which may arise in the future or which are academic as between the parties, but the court may refuse a declaration on grounds of prematurity, or because it would serve no useful purpose (no practical utility) (Pavledes v Hadjisavva op cit)…
The matters to be taken into account by the court in considering the exercise of the discretion were summarised in Bank of New York Mellon, London Branch v Essar Steel India Ltd [2018] EWHC 3177 (Ch) (Marcus Smith J) at para.21. In that case the claimant's (C) claim for a declaration against foreign defendants (D), who had taken no steps in the proceedings, to the effect that amounts were payable by D under a trust deed (that being the only remedy sought by C), was refused at a trial held in the absence of D…
In considering whether or not to grant a declaration as to the proper construction of a contract, the court should, at the very least, proceed with caution and in accordance with the principles referred to in the notes and authorities referred to above (Thomas Brown Estates Ltd v Hunters Partners Ltd [2012] EWHC 21 (QB) (Eder J), where held it was not an appropriate use of the court's discretion to make a declaration as to the proper construction of a franchise agreement where the substantive issues had been agreed between the parties)."
"The court's jurisdiction to grant declaratory relief derives from section 9 of the Senior Courts Act 1981. By CPR 40.20 the court may grant declaratory relief, whether or not any other remedy is claimed. However, the 2018 edition of Civil Procedure ("Civil Procedure 2018") notes at §40.20.2 that claims for declarations alone are unusual, and that generally declarations are sought and granted together with other forms of relief.
[21] The power to grant declaratory relief is discretionary. When considering the exercise of the discretion, in broad terms, the court should take into account justice to the claimant, justice to the defendant, whether the declaration would serve a useful purpose and whether there are other special reasons why or why not the court should grant the declaration. More specifically:
1. There must, in general, be a real and present dispute between the parties before the court as to the existence or extent of a legal right between them. However, the claimant does not need to have a present cause of action against the defendant. A present dispute over a right or obligation that may only arise if a future contingency occurs may well be suitable for declaratory relief and amount to a real and present dispute.
2. Each party must, in general, be affected by the court's determination of the issues concerning the legal right in question.
3. The fact that the claimant is not a party to the relevant contract in respect of which such a declaration is sought is not fatal to an application for a declaration, provided that the claimant is directly affected by the issue. In such cases, however, the court ought to proceed very cautiously when considering whether to make the declaration sought.
4. The court will be prepared to give declaratory relief in respect of a "friendly action" or where there is an "academic question", if all parties so wish, even on "private law" issues. This may be particularly so if the case is a test case or the case may affect a significant number of other cases, and it is in the public interest to decide the point in issue.
5. The court must be satisfied that all sides of the argument will be fully and properly put. It must, therefore, ensure that all those affected are either before it or will have their arguments put before the court. For this reason, the court ought not to make declarations without trial. In Wallersteiner v. Moir, Buckley LJ said this:
"It has always been my experience and I believe it to be a practice of very long standing, that the court does not make declarations of right either on admissions or in default of pleading. A statement on this subject of respectable antiquity is to be found in Williams v. Powell [1894] WN 141, where Kekewich J, whose views on the practice of the Chancery Division have always been regarded with much respect, said that a declaration by the court was a judicial act, and ought not to be made on admissions of the parties or on consent, but only if the court was satisfied by evidence. If declarations ought not to be made on admissions or by consent, a fortiori they should not be made in default of defence, and a fortissimo , if I may be allowed the expression, not where the declaration is that the defendant in default of defence has acted fraudulently…"
6. In all cases, assuming that the other tests are satisfied, the court must ask: is this the most effective way of resolving the issues raised? In answering that question, the court must consider the other options of resolving the issue.
Discussion
"When interpreting a written contract, the court is concerned to identify the intention of the parties by reference to "what a reasonable person having all the background knowledge which would have been available to the parties would have understood them to be using the language in the contract to mean", to quote Lord Hoffmann in Chartbrook Ltd v Persimmon Homes Ltd [2009] UKHL 38, [2009] 1 AC 1101, para 14. And it does so by focussing on the meaning of the relevant words, in this case clause 3(2) of each of the 25 leases, in their documentary, factual and commercial context. That meaning has to be assessed in the light of (i) the natural and ordinary meaning of the clause, (ii) any other relevant provisions of the lease, (iii) the overall purpose of the clause and the lease, (iv) the facts and circumstances known or assumed by the parties at the time that the document was executed, and (v) commercial common sense, but (vi) disregarding subjective evidence of any party's intentions."
Conclusions