Graham William Kitchen v Kent County Council
[2024] UKUT 370 (LC)
A Grantor v A Grantee
3 May 2023
[2023] UKUT 23 (LC)
Upper Tribunal
A company sued another for compensation because a pipeline easement prevented them from building. They argued about who should pay legal fees. The judge ruled that the rules allow the court to decide who pays, even though the dispute was settled privately, because the initial agreement was meant to cover the possibility of future disputes.
Key Facts
- •The Tribunal acts as arbitrator in a reference by consent under section 1(5), Lands Tribunal Act 1949.
- •Dispute concerns compensation for injurious affection of land due to a Deed of Grant restricting development.
- •The respondent questions the Tribunal's power to award costs in this arbitration.
- •The Deed of Grant, dating back to 2001, includes a clause for arbitration in case of disputes regarding compensation.
- •The claimant seeks costs of £8,000 incurred at a case management hearing.
Legal Principles
Arbitral tribunal may award costs, subject to any agreement of the parties.
Arbitration Act 1996
Tribunal has full power to determine costs, subject to Tribunal Procedure Rules.
Tribunals, Courts and Enforcement Act 2007
Tribunal Procedure Committee can make rules regulating costs; rules can disapply parts of the Arbitration Act 1996.
Tribunals, Courts and Enforcement Act 2007
In interpreting statutes, courts may consider extraneous material like reports to identify legislative purpose.
R (on the application of Spath Holme Ltd) v Secretary of State for the Environment, Transport and the Regions [2001] 2 AC 349
Outcomes
The Tribunal has power to make orders for costs in this reference.
Rule 10(6)(b) of the 2010 Rules covers proceedings for injurious affection of land, which encompasses this case, even though the rights were granted consensually. Preparatory materials (CRG and TPC reports) support a broad interpretation of the rule. The Tribunal does not have power to award costs under section 61, Arbitration Act 1996 due to the interaction of rules 3(2) and 30 of the 2010 Rules.