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Flashcards in Case law principals Deck (30)
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1
Q

What is a Calder bank offer.

A

Serious offer to settle in so that if the judgment is less favorable than the offer then the offer party should cover the legal costs.

2
Q

What is the higher of evidence and in what is the main case that examined it.

A

Lotus and Delta V Culverwell and Leicester city council

1) Subject rent is the staring point
2) Rents on comparable properties in the locality
3) Assessment data/ comparable in the locality
4) attribute weight using valuer judgment

3
Q

What were the Findings of Garton v Hunter

A

All evidence is admissible. The question goes to weight not admissibility.

4
Q

What case law looks at pre and post AVD evidence and what was determined

A

Speshal eye’s v Felgate (1992)

Pre AVD evidence is ok - Hypothetical LL and T would be aware of these rents at AVD.

Evidence close to AVD is of highest weight - represents the economic circumstances at AVD and hypothetical LL and T would be aware of these rents.

Post AVD evidence - is of less weight - Hypothetical LL and tenant would not be aware of these lettings at AVD.

However post AVD evidence can be useful in determining a trend.

5
Q

What is the relevant case law regarding economic repair and a schedule of works?

A

Monk v Newbigin [2017]

Property was stripped but had a schedule of works. The VOA believed it to be ratable as works to bring into repair were not uneconomic and thus should remain in rating list. Courts favored appellants argument that hereditament was not ratable as incapable of beneficial occupation, whilst undergoing a scheme of redevelopment.

Jackson (VO) v Canary Wharf Ltd [2019]

VOA argued that absence of schedule of works means property is in state of disrepair as there is no scheme of redevelopment and therefore should be ratable. VT again rejected this under the premise that the logically prior question should be is it capable of beneficial occupation. As the property was incapable of beneficial occupation it could not be held liable for rates.

6
Q

What recent case law examined the P+E and contractors method

A

Hughes (VO) v York Museums and Gallery Trust [2017]

Strengths and weaknesses of valuation methods discussed. Contractors Method Vs Receipts and Expenditure for no/low profit hereditaments.

Case determined that contractor’s basis inappropriate as such properties are unprofitable to operate and would be expensive to construct.

P+E approach analyzed in detail all evidence available, including: the income and expenditure, visitor numbers, repairing obligations, admission charges and prospect of generating a financial surplus for each property.

This provides a better indication of a fair and maintainable ratable value.

The case also showed public subsidy is not to be included in R&E valuation.

7
Q

What effect dose planning class have on ratable value and what case law examines this issue.

A

Planning may provide a indication of value but is not synonymous with rating. A valuer must follow the market and use valuer judgment to deicide if different planning classes have effected the hypothetical rental bid.

Humphreys-Jones (T/A Cathedral Frames) v Welsby (VO): LT 21 Mar 2001

8
Q

Is planning the same as code and category of occupation ?

A

No. Planning and rating are different disciplines. There may be overlap but they should not be confused.

9
Q

What case examines the ratable occupier and what criteria dose it establish

A

John Laing and Sons v Kingswood Assessment Committee

1) Actual Occupation
- What is the intention of the occupier, do they intend to make use in the future or fully vacate?

  • Occupation is not legal possession
2) Beneficial
o	Must be of some be of some to the occupier
	Profit is not the test
	Must help them meet goals.
	Would they pay a rent?
	Wider public cannot be held liable. 

3) Exclusive
o If more than one occupier for the same purpose, then only one can be rateable and not both

o Enjoyment of the hereditament for the purpose of occupation.

o west minister city council vs southern railway co, the railway assessment authority and WH smith and sons ltd – enjoyment for the sale of entertainment in the railway station. Control over the area they occupy for the purpose of which they occupy.

4) Transience
o What is the permanence of the hereditament?

	The length of occupation 
	Nature 
	Character
	Land situation 
	12 months is a starting point but not a rule
10
Q

What is the relevant case law and legislation involved in defining the hereditament.

A

Section 42 of local government and finance act dose a good job of stating what hereditaments will become liable for rates but a poor one in defining the hereditament.

In defining the hereditament we must look to case law.

Gilbert (VO) v Hickingbottom [1956] established principals in defining the hereditament.

Woolway V Mazars [2015] decision was very critical of the functionality test and provided additional guidance on defining the hereditament. (only units with a element of PRIMA facie/ intercommunicating access can be considered a single hereditament).

The Properties in common occupation act 2017 was released which allowed vertically or horizontally contiguous units ( with no intercommunicating access) to be classed as one hereditament.

11
Q

Where might the functionality test still apply ?

A

There are, however, rare cases in which function may alsoserve to aggregate geographically distinct subjects.’ Lord Sumption

  • The golf course – 10 holes one side of the road, 8 the other
  • The oil refinery – neither side of the road could sensibly be occupied without the other or separately let
  • The church hall case – Stamp (VO) v Birmingham Roman Catholic Archdiocesan Trustees. Because of planning the church hall could not be let without the car park
12
Q

What are the principals defined in

Gilbert (VO) v Hickingbottom [1956]

A
One or more billing authority’s
A single ratable occupier  
Be capable of separate occupation 
A single geographical unit 
Be put to purpose 
A single definable position
13
Q

What is meant by a hereditament in One or more billing authority’s ? ( as per Gilbert (VO) v Hickingbottom [1956] )

A

a. non-domestic rating regulations 1989 introduced uniform business rates and made it so if a hereditament sits within more than 1 BA then rates go to the largest RV.
b. In instances where crosses a border a artificial hereditament is made which accurately splits the differences.

14
Q

What is meant by s single ratable occupier ( as per Gilbert (VO) v Hickingbottom [1956] )

A

a. Only 1 person is liable for rates.

15
Q

What is meant by be capable of separate occupation ( as per Gilbert (VO) v Hickingbottom [1956] )

A

a) If property is to be more than 1 hereditament it must be capable of separate occupation.
b) R v Aberitsworth – carving out of one home.
c) MOFATT v Venus packing -use and non-use can be 2 separate uses.

16
Q

What is meant by A single geographical unit ( as per Gilbert (VO) v Hickingbottom [1956] )

A

For it to be a single hereditament it must pass ringed fence test - a ( hypothetical) fence must be able to run all the way around the hereditament without interruption for it to be a single hereditament.

or a element of Prima facie ( connection eg door way, tunnel or stairs connecting 2 separate parts)

If any area is not in exclusive occupation of the occupier and this splits the hereitament then it will be 2 hereditaments

B- functionality test. This meant that 2 separate hereditaments as per the geographical test could be considered one if they were “essentially functional” to one another.

This meant that they acted in tandem. Where the use
of one is necessary to the effectual enjoyment of the
other.

  • however following the woolway vs Mazars decision this has mainly become obsolete
17
Q

What is meant by be put to purpose ( as per Gilbert (VO) v Hickingbottom [1956] )

A

A hereditament can have a wide umbrella of purposes/ elements.

Generally elements will complement each other such as a café in a office factory is still part of the factory hereditament. Or a production area and a sales area.

If the uses are completely separate in nature and don’t complement each other at all they could be 2 hereditaments.

18
Q

What is meant by a single definable position ( as per Gilbert (VO) v Hickingbottom [1956] )

A

if clear boundaries are not established then not a rateable hereditament – wider public cannot be held liable for rates.
there are many examples;

a. Golf course with no boundaries cannot be held liable for rates.
b. Car parking - have boundary markings and are ratable
c. Market stalls - if undefined area then non ratable ( also consider transience) .

19
Q

What did PECO introduce

A

1) Legislation introduced as a result of Woolway v Mazars to allow non-contiguous units to be 1 assessment provided they
a. Are occupied by same person
b. Are contiguous by way of common wall or different floor in office building)
c. Not a wholly different purpose

”- (a) they are on consecutive floors of a building and some or all of the floor of one hereditament lies directly above all or part of the ceiling of the other hereditament (ignoring voids for services etc)

(b) they share a common wall, fence or other means of enclosure. Importantly, there is no reference in the Act to any internal means of communication between the two (or more) contiguous hereditaments as being required to achieve a single assessment.”

20
Q

What recent case law examined the issues of domestic appetences.

A

Corkish v Bigwood [2019] – Large private stables were considered domestic. Prior to descion VOA had rated large stables as they were not consider “essentially domestic use”.

However tribunal found that the size shouldn’t be a relevant factor and that only there use as domestic was important.

21
Q

What is Rebus Sic stantibus and what is the main case law ?

A

Scottish and Newcastle v Williams

Wine bar that the VO wanted to be valued in line with shop. Found that alterations under the use limb would offend the rebus sic stantibus ruling.

1) Physical limb, property must be valued as it stands, cant consider serious physical alteration
2) Use class, can only be considered in current mode and category of occupation

Fir Mill v Royton identified 2 rules

1) The property is vacant to let
2) property is valued in the current mode or category of occupation

‘shop as a shop but not any particular kind of shop’

22
Q

What are the recent MCC cases and what do they show

A

Merlin Entertainments Group Ltd v Cox

4 tests:

1) Does the matter concern an intrinsic characteristic of the hereditament or locality? If it concerns the way the party conducts their business then it is not an MCC
2) Does the matter concern a characteristic of the hereditament?
3) Does it matter characteristics of the locality
4) Is the matter physically manifest in the locality

Cases found that the decline in business was due to the manner in which the occupier operated their business

23
Q

What was the recent court ruling regarding ATM’s and what were the issues

A

Cardtronics v Sykes

1) Were the sites of the ATMs capable of being identified as separate hereditaments? - yes they are self contained piece of property.
2) Who was in ratable occupation of the sites of the ATMs? - ruled that the retailers were in occupation of both internal and external ATM’s. Both parties shared in the economic fruits of the business activity and that ATMs furthered the retailers’ general business purposes and provided them with an income.

Supreme Court found that ATMs should not be separately assessed for business rates, regardless of whether they are situated inside or outside of a retail store.

24
Q

What is the leading case on air conditioning and what does it explain

A

Dorothy Perkins v Casey (VO) LT 1994 RA 391.

1) Is the air conditioning reflected in the rent
2) If so analyse to see the effect of A/C on the rental market being considered
3) Identify if there is any comparable rental evidence
4) Where there is no comparable evidence typically a cost of providing the A/C will be reflected and adjusted into an annual equivalent
5) A back-stop approach at £4.00/m² is provided for use in the absence of any more reliable evidence of value to the area benefitting from the AC.

25
Q

What’s the leading case on market demand

A

Telereal Trillium v Hewitt

Office block occupied at the AVD but vacant at the start of the rating list. Proposed £1 RV as no demand for the site and couldn’t be occupied. Supreme Court found that property was to be valued at a reduced rate. Occupation of other similar properties in the area indicated a general demand

26
Q

What happened in the Scottish and Newcastle Case

A

2 Public houses in Milton Keynes that were valued in line with shops in the area. Ratepayer had contested that they should be valued in line with their use. Held that the property should be valued as a public house.

27
Q

What were the findings in Midland Bank

A

All competitive bids in the real world could be taken into account even those of different modes and categories as the current occupier would have to compete with this demand

The case wrongly stated that the mode and category included any use that the market would bid for. For example if a retail occupier was to bid for an art gallery then they would be in the same mode and category of occupation

28
Q

What happened in the Midland Bank case

A

Considered the treatment of ancillary office/ training space on the first floor of a bank. Held that upper floors were to be valued in line with office rates

29
Q

What happened in the Fir Mill case

A

Valuation of a cotton mill, appellant requested property was valued specifically as a cotton mill to reflect the decline in the trade. However it was held that the property was to be valued as an industrial unit but not any specific type of industrial unit

30
Q

What case law was there pallets on the floor

A

Makkro properties LTD V Nuneaton & Bedworth council

Occupier put pallets on the floor which occupier 0.2% of teh floor space. Occupation was for 6 weeks and deeded at high quart that it did qualify for empty rates relief,.