Examination of Witnesses (Questions 2620
- 2639)
2620. MS LIEVEN: We are the authority.
If we offer Mr Saunderson £10 million and the Lands Tribunal
only gives him £5 million, then from the date of the sealed
offer, or I think it is a few days thereafter, we would not have
to pay his fees.
2621. CHAIRMAN: Anymore fees?
2622. MS LIEVEN: Anymore fees after that
date. Indeed, the normal rule in the Lands Tribunal is that he
would have to pay our fees. The very obvious reason, my Lord,
is it would be unfair if we offered the person we were buying
from a very generous sum, they insisted on fighting on with the
Lands Tribunal for a wholly inflated sum and then they lost because
they would have acted unreasonably. Effectively, it is the same
as in most forms of litigation. As long as he acts reasonably,
effectively we pay his fees, but you do have these particular
rules in the Lands Tribunal. Given that I have been accused of
misleading one Parliamentary Committee, I do not want there to
be any danger of misleading this one. Again, it is not a blank
cheque that we will pay all reasonable fees, it is subject in
the Lands Tribunal to the normal Lands Tribunal rules.
2623. CHAIRMAN: There are scales and
there are also discretions.
2624. MS LIEVEN: There is a discretion,
my Lord, yes.
2625. BARONESS FOOKES: If I have understood
Mr Saunderson correctly, he has two concerns about reference to
the Lands Tribunal. First of all, the length of time it might
take before the case is heard and, secondly, the fact that he
would need, as it were, money in advance to help with the cost
prior to the case being heard and the cost awarded. I hope I have
heard that correctly. Can you offer any assistance, perhaps not
on the length of time but on the matter of the payment upfront
of a certain of fees?
2626. MS LIEVEN: I can deal briefly with
both, my Lady. In terms of the timing, Mr Saunderson could have
referred this case to the Lands Tribunal from about May 2007.
There were various time periods but Mr Mould and I have worked
it out, but it is about May 2007 he could have referred it. In
fact on time, my Lady, he could probably have been in the Lands
Tribunal by now and got the issue dealt with.
2627. BARONESS FOOKES: It is hypothetical,
is it not, because he did not?
2628. MS LIEVEN: He did not, but that
was a matter of choice for him, my Lady. My instructions from
Mr Bailey, Mr Smith and Mr Mould are that it would be about nine
months to the Lands Tribunal. So far as fees are concerned, him
having to pay in advance, two points, my Lady. First of all, it
is certainly very normal in many areas of litigation now to pay
fees on a contingency basis so you only pay once the litigation
is completed. Given that in this type of litigation there will
undoubtedly be a large cheque at the end of it, I cannot speak
for Jones Lang, I do not know the terms of their instructions
and it would be inappropriate to ask, but I struggle to believe
that it is not possible to find a reputable surveyor who is prepared
to accept their fees at the end rather than the beginning because
unlike some kind of litigation, they know in compulsory purchase
compensation that the money is going to be there at the end because
there will be compensation for the land.
2629. That is the first point. The other point
is that we would be very concerned about the precedent effect
of being required to pay fees in advance because although few
people will be in Mr Saunderson's precise factual situation, there
will be many people who have suffered from blight who will say,
"I'm in financial need and I don't want to go to the Lands
Tribunal until I've got the money in my pocket for fees",
so we would be concerned that it would have a very wide precedent
effect in respect of blight compensation.
2630. Your Lordships will be conscious of the
compensation teach-in that Mr Smith and Mr Mould gave you a couple
of weeks ago where issues about, for example, generalised blight
and the impact of blight on people were closely considered both
by the Law Commission and by Parliament in recent legislation.
Parliament has not made a provision that would require fees to
be paid in advance. I suspect for exactly the reasons I have just
given, which is it normally could be arranged through the agreement
with the relevant witnesses and legal advisers.
2631. BARONESS FOOKES: Yes, I understand
the legal position, but it is always possible to go beyond the
legal position if one so chose.
2632. MS LIEVEN: Of course it is, my
Lady. Yes, it is possible.
2633. CHAIRMAN: Anything else you want
to say to us?
2634. MS LIEVEN: My Lord, just to stress
very strongly that in terms of the valuation this is appropriately
a matter for the Lands Tribunal and very inappropriately a matter
for a parliamentary committee. There would have to be significant
amounts of evidence in order to determine a value here. Two things
are obvious, one is that there would have to be comparable evidence
about letting values for this type of property and this type of
location and the other is the issue that has been touched on which
is there is a dispute about the net developable space which gets
into such gripping subjects as the width of the corridors, the
size of the toilets, the area of the staircase. This is the kind
of thing the Lands Tribunal has to battle with in order to come
out with a net developable space that can be multiplied by the
other variable, which is the value per square foot. I would strongly
urge the Committee not to get into that. It would be a very poor
use of Committee time and, indeed, Committee expertise.
2635. CHAIRMAN: I am not sure that we
have any expertise. The great advantage to the Lands Tribunal
is it is made up of a number of people from different disciplines,
all of whom have considerable experience in dealing with exactly
these sorts of things.
2636. MS LIEVEN: I would not want to
say the Committee had no expertise, I felt that might be a little
rude.
2637. LORD SNAPE: It is more the time
factor.
2638. BARONESS FOOKES: Possibly, my Lord
Chairman, you are the only one.
2639. MS LIEVEN: I would suggest that
the Lands Tribunal for a host of reasons is a much more appropriate
forum for this type of dispute, and dispute there would be, there
is little doubt about that. The other point to stress, my Lords
and my Lady, is that Mr Saunderson will get compensation through
this process and there is no doubt about that, that is what the
whole scheme is set up for. Ultimately, he will get that redress
and he will get it in an objective manner through an expert tribunal
if it cannot be agreed and that should give the Committee the
reassurance that perhaps it needs. My Lords, I think your Lordships
probably have my other points unless there are any other questions.
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