A decision in September 2010 caused great concern for developers
who either ignored or were unable to resolve rights of light issues
before beginning a development.
The case involved a commercial building in Leeds which was bought
by a developer with the benefit of planning permission for the
addition of two extra floors. The developer was aware when it
bought that the development might interfere with the light
available to an adjoining owner. Negotiations were entered
into but no settlement was reached. The developer pressed
ahead and completed the works in July 2009.
The developer tried to conclude any issues by applying for a ruling
that the adjoining owner would be entitled to monetary compensation
only for the interference but were shocked when the court instead
awarded an injunction requiring demolition of the extra
floors. In previous decisions relating to commercial
buildings the Court has awarded damages in lieu of
injunctions.
The decision was due to be appealed in the Court of Appeal today
but was settled yesterday. This means that the precedent set
by the 2010 case remains.
This news will be most unwelcome to developers who are now faced
with increased uncertainty and a possible escalation in their
costs. It is even more important for rights of light issues
to be dealt with effectively before starting on building
works. It should not be assumed that payment of money will be
sufficient or that the Courts will order damages in lieu of an
injunction.
Law: HKRUK II (CHC) Limited -v- Heaney [2010]
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 30/03/2011.
