Portland Estates (Limerick) Ltd v Limerick Corporation

• Jurisdiction: Ireland
• Judge: Butler. J.
• Judgment Date: 31 July 1979
• Neutral Citation: 1978 WJSC-HC 3868
• Date: 31 July 1979
• Court: High Court

1978 WJSC-HC 3868

THE HIGH COURT

PORTLAND ESTATES v. LIMERICK CORPORATION

PORTLAND ESTATES (LIMERICK) LTD.

and

LIMERICK CORPORATION

Butler J.

1 Section 29 of the Local Government (Planning and Development) Act1963entitles the owner of lands in respect of which planning permission for development has been refused to require the planning authority, in certain cases and subject to certain conditions, to purchase his interest in the lands.

2 The machinery by which the provision is operated is the service by the owner of a notice on the planning authority requiring the authority to purchase the lands. Thereupon the planning authority must within 3 months of the date of service of the notice serve in turn on the owner a notice stating either (a) that they are willing to comply with the purchase notice or (b) that they are not for reasons to be specified. In the case of a refusal the matter is automatically referred to the Minister who may (a) overrule the refusal and confirm the purchase notice or (b) grant the permission for development originally applied for or (c) grant permission for an alternative beneficial development of the lands.

3 In cases where the purchase notice has either been accepted by the planning authority or confirmed by the Minister it is provided that the notice of acceptance (which must be served in either case) is to have the like effect as if it were a compulsory purchase order under the local Government (No. 2) Act,1960duly made and confirmed. It follows that where the parties fail to reach agreement on the price to be paid for the lands so to be purchased, the matter is referred by the Land Values Reference Committee to the Official Arbitrator to determine the price.

4 In the present case the claimants were the owners of lands for which development permission had been refused. On 26th February 1976 they served a purchase notice pursuant to the above section 29 on the planning authority. By notice dated 21st May 1976 the authority served a compliance notice on the claimants and, the parties having failed to agree on a price the question was duly referred to the arbitration of Mr. Owen MacCarthy, the Official Arbitrator. He commenced the arbitration on the 26th October 1977 and continued the hearing on the 24th and 25th November 1977 and the 5th and 6th January 1978.

5 At the hearing the claimants contended that the relevant date as of which the lands fell to be valued was the date on which the value was assessed, namely the last day of taking of evidence as to value at the arbitration. The planning authority on the other hand contended that the appropriate date was the date on which they accepted the purchase notice, namely the 21st May 1976. The arbitrator made a finding as to the value of the lands on each of the dates contended for and has referred to this Court by way of Special Case the question as to which is the date in reference to which the value is to be determined. His findings as to value were; £108,000 on the 21st May 1976 and £135,000 on the 6th January 1978.

6 The history of the assessment of the compensation to be paid to an owner whose lands have been acquired compulsorily goes back to the Land Clauses Consolidation Act 1845 and has been the subject of...