Wrexham Maelor Borough Council v MacDougall and Others
| Jurisdiction | England & Wales |
| Judgment Date | 01 April 1993 |
| Date | 01 April 1993 |
| Court | Court of Appeal (Civil Division) |
Court of Appeal
Before Lord Justice Ralph Gibson, Lord Justice Mann and Lord Justice Nolan
Land - compulsory acquisition - eligibility for disturbance payment
Where a person was displaced from any land in consequence of the compulsory acquisition of that land and was eligible for a disturbance payment provided that he was in lawful possession of the land at the relevant time and provided that he had no compensatable interest under any other enactment, "possession" in section 37 of the Land Compensation Act 1973 meant physical occupation with the intention to exclude unauthorised intruders.
The Court of Appeal so held in a reserved judgment when dismissing the appeal by Wrexham Maelor Borough Council from the decision of Mr C R Mallett, sitting in the Lands Tribunal, on May 14, 1992 that, inter alia, David Stuart MacDougall was entitled to compensation under section 37 of the 1973 Act in respect of the compulsory acquisition by the council of his leasehold interest in offices in Wrexham, in which the business of Crest Insurance Services Ltd and of Crest (Life and Pensions) Ltd were conducted and in which companies Mr MacDougall held three quarters of the share capital and Mrs MacDougall one quarter, both being directors of those companies.
Miss Elizabeth Appleby, QC and Mr Robin Campbell for the borough council; Mr Michael Barnes, QC and Mr Kevin Barnett for Mr MacDougall and Crest.
LORD JUSTICE RALPH GIBSON said that there was nothing in section 37 of the 1973 Act, considered in its statutory context, to show that the word "lawful" imported anything more than that the possession should not be unlawful.
It was expressly required to be lawful. If it meant the legal or equitable right to possession there would be few significant cases in which the person would not be entitled to compensation under other enactments, namely section 20 of the Compulsory Purchase Act 1965 or section 5 of the Land Compensation Act 1961.
To have lawful possession without a legal interest in the land, whether freehold or leasehold, required that the person in possession had the permission of the owner who had the legal right to possession.
The tribunal had held that the companies had...
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