Developers in for a Shock

01 February 2010

Noel Barratt looks at this interesting case and considers how the issue could have been avoided.

In a recent case (William Old International Ltd v Arya [2009]) a developer bought a piece of land, intending to build an office block, and received a shock. The land benefited from an easement over adjacent land (the garden of a house) which allowed the laying of service media and the passage of services over and through that adjacent land.

The developer required an electricity supply to the office block so applied to electricity company EDF to put in a supply. This required EDF to lay cables through the adjacent land. EDF refused to do so unless the owners of that land signed a deed granting it the right to lay the cables. The landowners refused.

Rather than ask EDF to invoke its statutory powers due to the delay involved with that, the developer went to court, claiming that the landowners were obliged to give the grant to EDF. The claim failed. The landowners could not stop EDF from laying the cables but this type of easement could not compel the landowners to do something to facilitate the supply of services. In this case, it could not compel the landowners to sign the deed which EDF demanded.

This case emphasises the importance of considering what services will be required for any proposed development. Not only is it important to negotiate and agree appropriate easements over adjoining land but it is essential to secure suitable obligations on the owners of adjoining land to require them to enter into appropriate deeds of grant with utility companies if required.

Interestingly, what appears to have started this off was the failure of the developer to discuss the proposed digging of cable trenches with the owners of the garden prior to their receipt of a notice that work was intended. One cannot help but wonder if the issue could have been avoided altogether had a different approach been taken.

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