Dublin Corporation v Ancient Guild Inc. Brick & Stone Layers

• Jurisdiction: Ireland
• Judge: Mr. Justice Declan Budd
• Judgment Date: 06 March 1996
• Neutral Citation: 1996 WJSC-HC 3119
• Docket Number: No. 15561p/1991
• Court: High Court
• Date: 06 March 1996

DUBLIN CORPORATION v. ANCIENT GUILD INC BRICK & STONE LAYERS

BETWEEN

THE RIGHT HONOURABLE THE LORD MAYOR, ALDERMEN AND BURGESSES OF DUBLIN

PLAINTIFF

AND

THE ANCIENT GUILD OF INCORPORATED BRICK AND STONE LAYERS AND ALLIED TRADES UNION AND ITS TRUSTEES, JAMES FOLEY, FREDERICK LORD AND DERMOT GRAY

DEFENDANTS

1996 WJSC-HC 3119

No. 15561p/1991

THE HIGH COURT

Synopsis:

ARBITRATION

Award

Finality - Landowner - Building - Acquisition - Compulsion -Compensation paid by road authority - Portion of building acquired - Compensation calculated on basis of owner reinstating facade on rebuilt remainder of building- Reinstatement not effected - Unjust enrichment of defendant owner - Plaintiff road authority claimed repayment of amount by which defendant unjustly enriched - Constructive trust of excess compensation - Acquisition of Land (Assessment of Compensation) Act, 1919 (9 & 10 Geo.5, c. 57), s. 2 - (1991/15561 P - Budd J. - 6/3/96)

|Corporation of Dublin v. Antient Guild of Incorporated Brick and Stone Layers and Allied Trades Union|

COMPULSORY ACQUISITION

Compensation

Assessment - Basis - Arbitrator - Award - Assessment made on basis of reinstatement of remainder of defendant's property - Reinstatement not effected - Compensation paid to defendant - Unjust enrichment of defendant owner - Plaintiff road authority claimed repayment of amount by which defendant unjustly enriched - Constructive trust of excess compensation - (1991/15561 P - Budd J. - 6/3/96)

|Corporation of Dublin v. Antient Guild of Incorporated Brick and Stone Layers and Allied Trades Union|

EQUITY

Relief

Defendant - Enrichment - Injustice - Plaintiff - Restitution - Entitlement - Compulsory acquisition of defendant's land - Compensation paid to defendant - Unjust enrichment of defendant - Plaintiff road authority claimed repayment of amount by which defendant unjustly enriched - Constructive trust of excess compensation - (1991/15561 P - Budd J. - 6/3/96)

|Corporation of Dublin v. Ancient Guild of Incorporated Brick and Stone Layers and Allied Trades Union|

TRUSTS

Creation

Land - Acquisition - Compulsion - Compensation - Assessment - Assessment made on basis of reinstatement of remainder of defendant's property - Reinstatement not effected - Compensation paid to defendant - Unjust enrichment of defendant owner - Plaintiff road authority claimed repayment of amount by which defendant unjustly enriched - Constructive trust of excess compensation - (1991/15561 P - Budd J. - 6/3/96)

|Corporation of Dublin v. Antient Guild of Incorporated Brick and Stone Layers and Allied Trades Union|

Citations:

ACQUISITION OF LAND (ASSESSMENT OF COMPENSATION) ACT 1919 S2 RULE 5

PROPERTY VALUES (ARBITRATIONS & APPEALS) ACT 1960 S4

MOSES V MACFERLAN 1760 2 BURROWS 1005

ROCHFORD V EARL OF BELVIDERE 1770 (1766–1791) WALLIS BY LYNE 45

UNITED AUSTRALIA V BARCLAYS BANK 1941 AC 1

EAST CORK FOODS LTD V O'DWYER STEEL CO LTD 1978 IR 103

CIVIL LIABILITY ACT 1961 S21

KIRIRI COTTON CO LTD V DEWANI 1960 AC 192

MOULE V GARRETT 1872 IR 7 EX 101

PHIPPS V BOARDMAN 1967 2 AC 46

MURPHY V AG 1982 IR 241

MASON V NEW SOUTH WALES 1959 102 CLR 108

BELL BROS PROPERTY LTD V SHIRE OF SERPENTINE-JARRAHDALE 1969 121 CLR 137

SARGOOD CASE 1910 11 CLR 258

ROGERS V LOUTH CO COUNCIL 1981 IR 265 1981 ILRM 144

GOFF & JONES THE LAW OF RESTITUTION 2ED

DOLAN V NELIGAN 1967 IR 245

KIRIRI COTTON CO LTD V RANCHODDAS 1960 AC 192

MORGAN V PALMER 2 B & C 729

ALLIED DISCOUNT CARD V BORD FAILTE EIREANN 1990 ILRM 811

FREDERICK INNS, IN RE 1991 ILRM 582

NAD V TD 1985 ILRM 153

HEAVEY V HEAVEY 1977 11 ILTR 1

C V C 1976 IR 254

HKN INVESTOY V INCOTRADE PVT LTD 1993 3 IR 152

HANBURY MODERN EQUITY 218

HUSSEY V PALMER 1972 1 WLR 1286

ACQUISITION OF LAND (ASSESMENT OF COMPENSATION) ACT 1919 S2

ACQUISITION OF LAND (ASSESMENT OF COMPENSATION) ACT 1919 S6

LOCAL GOVT (PLANNING & DEVELOPMENT) ACT 1963 S69

LOCAL GOVT (PLANNING & DEVELOPMENT) ACT 1963 SCHED 4

HOUSING ACT 1966 S84

SADLER V EVANS 1766 4 BURR 1984

PHILIPS V HUNTER 1795 2 H BLACKSTONE 402

NEW BRUNSWICK RAIL CO V BRITISH FRENCH TRUST CORP 1939 AC 1

FIBROSA SPOLKA AKCYJNA V FAIRBAIRN LAWSON COMBE BARBOUR LTD 1943 AC 32

ROBERTS V DOVER CORP 1962 14 PCR 47

ZEISS V HERBERT SMITH & CO (NO 2) 1969 2 CH 276

BIRMINGHAM CORP V WEST MIDLANDS BAPTIST 1969 3 AER 172

ZOAR INDEPENDENT CHURCH V ROCHERTER CORP 1974 3 WLR 417

MCKEOWN, IN RE 1974 NI 226

CARLY V FARRELLY 1975 1 NZLR 356

EAST CORK FOODS LTD V O'DWYER STEEL CO 1978 IR 103

BARCLAYS BANK V SIMMS 1980 QB 677

W V W 1981 ILRM 202

BARRETT APARTMENTS, IN RE 1985 IR 350

AG & MIN FOR DEFENCE V RYANS CAR HIRE LTD 1965 IR 642

SINCLAIR V BROUGHAM 1914 AC 456

HALLETTS ESTATE, IN RE 1888 13 CH 696

CANTIARE V CLYDE SHIPBUILDING CO 1924 AC 226

SHANAHANS STAMP AUCTIONS LTD V FARRELLY 1962 IR 386

ATLAS CABINETS & FURNITURE LTD 1990 68 DLR 161

ASTON CHARITIES TRUST V STEPNEY BOROUGH COUNCIL 1952 2 AER 228

DAVID SECURITIES PROPERTY LTD V COMMONWEALTH BANK OF AUSTRALIA 1914 AC 398

MUSCHINSKI V DODDS 1985 160 CLR 583

IRISH SHIPPING, IN RE 1986 ILRM 518

REID V LIMERICK CORP 1987 ILRM 83

PAVEY & MATTHEWS PROPERTY LTD V PAUL 1987 162 CLR 221

FREDERICK INNS, IN RE 1991 ILRM 582

TASSAN DIN V BANCO AMBROSIANA 1991 1 IR 569

PMPA GARAGES LTD, IN RE (NO 2) 1992 1 IR 332

HIGHLAND FINANCE V SACRED HEART COLLEGE OF AGRICULTURE 1992 1 IR 472

O'CALLAGHAN V BALLINCOLLIG HOLDINGS LTD UNREP BLAYNEY 31.3.93 1993/9/ 2530

WOOLWICH BUILDING SOCIETY V IRC (NO 2) 1993 AC 70

LIPKIN GORMAN V KARPNALE LTD 1991 2 AC 548

PEEL V CANADA 1993 98 DLR 140

MCDERMOTT & WOULFE COMPULSORY PURCHASE & COMPENSATION IN IRELAND 230, 384

COSTELLO & CARNWORTH COMPULSORY ACQUISITION & COMPENSATION

CRIPPS COMPULSORY ACQUISITION OF LAND

KEANE LAW OF LOCAL GOVERNMENT IN IRELAND

KEANE EQUITY & THE LAW OF TRUSTS

PETTIT EQUITY & THE LAW OF TRUSTS 7ED

GOFF & JONES LAW OF RESTITUTION 4ED

BURROWS LAW OF RESTITUTION

SPENCER BOWER & TURNER RES JUDICATA 2ED

O'DELL THE PRINCIPLE AGAINST UNJUST ENRICHMENT 1993 15 DULJ 27

BURROWS ESSAYS IN THE LAW OF RESTITUTION 39

BURROWS CONTRACT TORT & RESTITUTION - A SATISFACTORY DIVISION OR NOT? 1983 99 LQR 217

WINFIELD 1944 60 LQR 341

HEDLEY CONTRACT TORT & RESTITUTION OR ON CUTTING THE LEGAL SYSTEM DOWN TO SIZE 1988 8 LEGAL STUDIES 137

WHITTY SOME TRENDS & ISSUES IN SCOTS ENRICHMENT LAW 1994 JUDICIAL REVIEW 127

1 Judgment delivered by Mr. Justice Declan Budd on the 6th day of March, 1996.

2 The Plaintiff is Dublin Corporation being the local authority for the City of Dublin. The Defendants are the Ancient Guild of Incorporated Brick and Stone Layers and Allied Trades Union ("The Guild") and the Trustees of the Union. The Guild was the owner of No. 49 Cuffe Street, Dublin known as the "Bricklayers" Hall" which was a fine looking old premises built about 1812. On 29th July, 1982 the Plaintiff, with a view to carrying out road widening at Cuffe Street, issued a Compulsory Purchase Order which affected a number of properties, including the Bricklayers" Hall, on the south side of Cuffe Street. The Compulsory Purchase Order was confirmed by the Minister for the Environment on 2nd September, 1983. The Plaintiff served a Notice to Treat on the Guild on 23rd January, 1984. The Plaintiff and the Guild disagreed on the basis for the assessment of compensation to be paid by the Plaintiff to the Guild in respect of the compulsory acquisition of the Bricklayers" Hall. Accordingly, by Order dated 13th November, 1984 the Land Values Reference Committee nominated Sean M. McDermott, F.R.I.C.S., F.C.I. Arb., as the Property Arbitrator to assess the amount of compensation and he entered upon the reference and heard evidence adduced by and on behalf of the parties on 23rd April, 1985. Before the hearing the Plaintiff and the Guild agreed as follows:-

3 (a) In the event that the amount of compensation fell to be determined in accordance with Rule 2 of Section 2 of the Acquisition of Land (Assessment of Compensation) Act, 1919 ("the 1919 Act") the market value of the Bricklayers" Hall was £87,857;

4 (b) In the event that the amount of compensation fell to be determined in accordance with Rule 5 of Section 2 of the 1919 Act, the cost of equivalent reinstatement was £224,414 being the cost of reinstating the front facade of the Bricklayers" Hall in accordance with drawings and specifications prepared for the Guild by Messrs. Burke-Kennedy, Doyle and Partners, Architects.

5 These plans were based on the peculiar arrangement that the Corporation would actually take only 688 of the 3,500 sq. feet of the site and the Guild accordingly would retain over 2,800 sq. feet. The drawings and specifications, which I shall refer to in greater detail below, envisaged the numbering and storage of the granite facade of the Bricklayers" Hall. From photograph No. 1 it can be seen that this was a fine granite-faced Georgian building, with an impressive fanlight and railings, fronting on to the South side of Cuffe Street. The plans clearly envisage the storage and then the reconstruction of the granite front on the newly aligned side of Cuffe Street. Unchallenged evidence was given by Mr. Farrelly, the experienced Quantity Surveyor acting for the Corporation, that the front part of No. 49, being on map index No. 10164/5 (as shown enclosed in a red box with a circled 5 in it), was to be demolished and the granite facade was to be built back onto the Hall at the rear. He asserted that there was never any indication that the Hall was to be demolished and that it was on this basis of reconstruction that he entered into negotiation with Wilfred Kelly, Quantity Surveyor of Robert J. Love & Partners, acting for the Guild. I note the letter dated 5th February, 1985 from Mr. Kelly to Mr. Farrelly confirms their conversation of the previous day that "we are in agreement on the cost of alteration and reinstatement of above...