Party Walls Law and Practice

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Party Walls Law and Practice Fourth Edition Stephen Bickford-Smith MA (Oxon), Barrister, FCIArb, Chartered Arbitrator Master of the Bench of the Inner Temple Landmark Chambers, London David

1 Party Walls Law and Practice Fourth Edition Stephen Bickford-Smith MA (Oxon), Barrister, FCIArb, Chartered Arbitrator Master of the Bench of the Inner Temple Landmark Chambers, London David Nicholls MA (Oxon), Barrister, Landmark Chambers, London and Andrew Smith Partner, Child & Child, London with Alistair Redler BSc, FRICS, Senior Partner, Delva Patman Redler LLP, London and Liverpool

2 Published by LexisNexis LexisNexis Regus Terrace Floor Castlemead Lower Castle Street Bristol BS1 3AG Whilst the publishers and the author have taken every care in preparing the material included in this work, any statements made as to the legal or other implications of particular transactions are made in good faith purely for general guidance and cannot be regarded as a substitute for professional advice. Consequently, no liability can be accepted for loss or expense incurred as a result of relying in particular circumstances on statements made in this work. RELX (UK) Limited, trading as LexisNexis 2017 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any way or by any means, including photocopying or recording, without the written permission of the copyright holder, application for which should be addressed to the publisher. Crown Copyright material is reproduced with kind permission of the Controller of Her Majesty s Stationery Office. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. ISBN Typeset by Letterpart Limited, Caterham on the Hill, Surrey CR3 5XL Printed in Great Britain by Hobbs the Printers Limited, Totton, Hampshire SO40 3WX

3 CONTENTS Preface to the First Edition Preface to the Fourth Edition Table of Cases Table of Statutes Table of Statutory Instruments Table of European Legislation v vii xix xxix xxxiii xxxv Chapter 1 Introduction 1 Source of current law 1 Antecedents 1 The 1939 Act 2 Operation of the Act 4 Structure of the book 4 Definitions 4 Substantive rights 5 Adjacent excavation 5 Special foundations 5 Ancillary rights and obligations 5 Award 5 Financial matters 5 Security 6 Notices 6 Successors in title 6 Other areas of law 6 Practical points for surveyors 6 Criminal offences 6 Problem areas 6 Appendices 6 Application 7 Commencement and transitional provisions 7 Chapter 2 Application of the Act 9 Definitions 9 Party wall 9 Overhangs 10 Trespassing buildings 11

4 x Party Walls Party fence wall 11 Party structure 12 Owner 13 Other expressions 14 Wall 14 Fence wall 15 External wall 15 Boundary wall 16 Line of junction 16 Extent 16 Multiple owners 17 Flats 17 Consent, agreement and contracting out 18 Statutory mischief 18 Contracting out 18 Consent within the Act 21 Must be specific 22 General consents 22 Consent outside the Act 23 Disadvantages of proceeding outside the Act 23 Contracting out 24 Overlapping consents 24 Chapter 3 Rights of Building Owner 25 Introduction 25 Boundary not built on: section 1 26 Inherent contradictions 26 Extent of application 27 Works authorised 27 Building on the boundary (party wall or party fence wall) 28 Originating notice 28 Consent notice 28 No consent 29 Time limit 29 Building wholly on building owner s land (fence wall) 29 Originating notice 30 Footings and foundations 30 Cost and compensation 30 Rights of entry 31 Disputes 31 Boundary already built on: section 2 32 Rights under section 2 32 Party structure notice: section 3 34 Requirements 35 Effect 35 Effect of changes in design of the project on validity of notices 36 Consents 37

5 Contents xi Counter-notice: section 4 38 Objects 38 Requirements 38 Effect 38 Disputes: section 5 39 Consequences of non-compliance with the Act 39 Civil remedies 40 Injunctions 43 Final and interim injunctions 43 Injunctions on notice and not on notice 44 Prohibitory and mandatory injunctions 44 Quia timet injunctions 44 Interim injunctions: principles 44 Not on notice interim injunctions 48 The claimant s cross undertaking 49 Permanent injunctions and damages in lieu 54 When will damages be awarded in place of an injunction? 56 The defendant s conduct 57 The public interest 59 Mandatory injunctions 61 Quia timet injunctions 64 Particular issues regarding injunctions in party wall cases 66 Chapter 4 Adjacent Excavation and Construction 69 Introduction 69 Distances 69 3-metre notice 69 6-metre notice 70 Measurements 70 Horizontal 71 Depth: 3-metre area 71 Depth: 6-metre area 71 Points to note 72 Non-apparent structures 72 Meaning of excavation 72 Meaning of building or structure 74 General 75 Structures with no foundations 75 Underground services 75 Bottom of the foundations 76 Section 6(3) 76 Notices 76 Scope of dispute 78 Lapse of notice 78 Plans 79 Common law liability 79 Further references 80

6 xii Party Walls Chapter 5 Special Foundations 81 Introduction 81 Definition 81 General principle 82 Sections 1 and 2 85 Party structure notice 85 Section 6 notice 85 Counter-notice 86 Consent in writing 86 Requirements 87 Oral consent 87 Expenses 87 Section 11(9) 88 Section 11(10) 88 Chapter 6 Ancillary Rights and Obligations 93 Introduction 93 Section 7 93 Section 7(5): what work may be carried out 94 Sections 7(3) and 11(6): premises laid open 95 Section 7(3): duty to provide protection 95 Section 11(6): allowance for disturbance 95 Sections 7(1) and (2): unnecessary inconvenience and compensation for damage 96 Scope of section 7(1) 96 Scope of section 7(2) 99 History 99 Authorised work 101 Work otherwise actionable 102 Effect of completed work 102 Loss from use of completed works 103 Interrelationship of section 7(1) and 7(2) 103 Enforcement 104 Extent of surveyors jurisdiction 104 Surveyors or court? 105 Interest 106 No-fault compensation 106 Duty to make good 107 Section 11(8): payment in lieu 107 Chapter 7 Rights of Entry 111 Introduction 111 Right of building owner 111 Right of surveyors 112 Notice before entry 113

7 Contents xiii Usual working hours 113 Civil remedy 114 Occupiers 114 Human rights aspects 115 Chapter 8 The Award Procedure and Scope 117 Introduction 117 Dispute 117 Qualification and independence of surveyors 118 Machinery of appointment 120 Methods of appointment and selection 120 Agreed surveyor 120 Parties surveyors 121 Third surveyor 121 Secondary methods 122 Parties surveyors 122 Third surveyor 122 Death and incapacity of surveyors 123 Agreed surveyor 126 Parties surveyors 126 Third surveyor 127 Refusal and neglect by surveyors general 127 Agreed surveyor 127 Third surveyor 127 Refusal and neglect by parties surveyors 127 Section 10(6): refusal 128 Section 10(7): neglect 128 Requirements common to refusal and neglect 129 Making the award 129 Service of the award 131 Scope of award: surveyors jurisdiction 132 Limits of jurisdiction 133 Preliminary determination of jurisdiction 134 Successive awards 135 Retrospective awards 135 Multiple parties 136 Procedure and form of award 137 Surveyors as arbitrators 137 Immunity of surveyors 138 Chapter 9 The Award Effect and Enforcement 141 Introduction 141 Effect 141 Estoppel 142 Amendments and corrections to award 142

8 xiv Party Walls Enforcement: action on the award 143 Payment of money 143 Breach of non-monetary term 145 Damages 145 Specific relief 146 Payment of costs and expenses 147 Enforcement: action outside the award 148 Further award 148 Compensation 149 Inconvenience: inadequate protection 149 Unauthorised work 149 Other tort 150 Adjoining occupiers 150 Interest 150 Venue 151 Procedure 151 Limitation 151 Equitable set off 152 Chapter 10 Rights of Appeal 155 Introduction 155 Extent of matters which can be raised on appeal, and mode of appeal 155 Procedure on appeal: Zissis v Lukomski 156 Procedure otherwise than by appeal 157 Venue 157 Appeal to the Court of Appeal 158 Time-limits 159 Effect of appeal 160 Judicial review? 160 Severability 161 Chapter 11 Financial Matters 163 Introduction 163 The meaning of costs and expenses 163 Costs 163 Expenses 164 Expenses: general rule 165 Liabilities of adjoining owner 165 Section 11(3) 166 Section 11(4) 166 Section 11(5) 167 Section 11(7) 167 Section 11(9) 167 Section 11(11) 167 Costs 167 Other liabilities of building owner 169

9 Contents xv Recovering expenses from adjoining owner 169 Account 169 Notice of objection 170 Section Chapter 12 Security for Expenses 173 Introduction 173 Security by the building owner (section 12(1)) 174 Factors 175 Related to work 175 Related to building owner 176 Amount 177 Manner of giving security 177 Security by adjoining owner (section 12(2)) 178 Works required by adjoining owner 178 Tit-for-tat 178 Procedure: time limit 179 Failure to respond or comply 179 Adjoining owner: section 12(3) 179 Building owner 180 Chapter 13 Service of Notices 181 Introduction 181 Formal requirements of notices 181 Amendment of notice 183 Mode of service 183 Personal delivery 183 Postal service on an individual 183 Postal address 184 Service on a body corporate 185 Service on the owner of premises 185 Other methods of service 186 Persons on whom notices must be served 186 Joint owners 187 Failure to serve notices 187 Waiver of time-limits or irregularities in notices 187 Chapter 14 Successors in Title 189 Introduction 189 Definitions 189 Assignability: benefit and burden 190 Before award: dispute procedure 191 Agreement 191 Dispute 191

10 xvi Party Walls Dissenting successor 192 Building owner 192 Adjoining owner 192 After award 193 Immediate rights and liabilities 193 Rights (benefit) 193 Liabilities (burden) 193 Arena Property Services Ltd v Europa 2000 Ltd 194 Contingent rights and liabilities 195 Rights (benefit) 195 Liabilities (burden) 196 Conveyancing implications 197 Liabilities affecting a purchaser 197 Purchaser from building owner 197 Purchaser from adjoining owner 197 Registration as land charge 197 Dispute 198 Rights under an award 198 Rights of entry 198 Vesting of works 199 Contingent liabilities 199 Action for conveyancers 199 Before contract 199 Contract 200 Completion 200 Land charges 200 Registered land 201 Shortcomings 201 Chapter 15 Relationship with other Areas of Law 203 Introduction 203 Common law rights in party walls 203 Section Section 9(a) 204 Section 9(b) 205 Right to light 206 Right of support 207 Protection from the weather 208 Negligence 209 Nuisance 209 Adjoining owners and occupiers 210 Third parties 211 Trespass 211 Breach of statutory duty 211 Existence of duty (section 6) 212 Scope of duty (section 6) 213 Access to Neighbouring Land Act 1992 ( the 1992 Act ) 213

11 Contents xvii Other statutory requirements 215 Human Rights Act General 216 Relevant provisions of the Convention 216 Article 6(1) 217 Article Article 1 of the First Protocol 219 General jurisdiction of the Court 219 Chapter 16 The Practical Role of the Party Wall Surveyor 221 Introduction 221 Advice prior to service of notice 222 Preparation of notices 223 The building owner s surveyor 224 The adjoining owner s surveyor 225 Considerations for party wall surveyors 227 Access 227 Security for expenses 227 Assessment of damage 227 Section 11(11) payment 228 Surveyor acting as agreed surveyor 229 Referral to third surveyor 229 Chapter 17 Criminal Offences 231 Section 16(1): refusal of entry 231 Vicarious liability 231 Refusal 232 Reasonable cause 232 Entry pursuant to the Act 232 Occupiers 233 Section 16(2): hindering entry 233 Procedure 233 Chapter 18 Problem Areas 235 Introduction 235 Defects 235 Appendix 1 Party Wall Etc Act Appendix 2 London Building Acts (Amendment) Act Appendix 3 Checklists of Notices 271

12 xviii Party Walls Appendix 4 Precedents Line of Junction Notice Party Structure Notice Counter-notice to Party Structure Notice Three/Six-metre Notice Consent Notices Notice of Dispute Notice of Entry Formal Request Appointment of Surveyors Selection of Third Surveyor Award Notice Requiring Security Appeal to county court A. Appeal under CPR Part 52 seeking to have the award set aside as a nullity, or modified B. Part 7 Claim seeking relief on the basis the award was a nullity Account Notice of Objections to Account 312 Appendix 5 The Party Wall etc Bill in Parliament 313 House of Lords 313 House of Commons 313 Appendix 6 Errors and Inconsistencies 315 Index 317

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