Property Boundaries (Resolution of Disputes) Bill [HL]

Lord Faulks Excerpts

Friday 11th September 2015 Lords Chamber

[The Minister of State, Ministry of Justice (Lord Faulks) (Con)]

My Lords, I congratulate the noble Earl, Lord Lytton, on securing a Second Reading for his Bill on this important issue.

As the noble Lord, Lord Kennedy, indicated, we had a debate, initiated by the noble Earl in January this year, in which many of the issues that have been discussed today were canvassed. That is nothing but to the good. Similarly, I have had an opportunity to meet with him and others who are concerned with the issues that the Bill generates. I am grateful for that opportunity, and for the noble Earl’s acknowledging his engagement with officials in my department.

The Bill’s core aim is making it easier to resolve boundary disputes. It proposes to do this through a system like that adopted in the Party Wall etc. Act 1996, which would require disputes about the exact location of a boundary between adjoining properties in England and Wales to be referred to a surveyor or surveyors acting as independent adjudicators for final determination, subject only to a right of appeal to the Technology and Construction Court.

Pausing there, I note that the noble Earl has been in communication with Sir Antony Edwards-Stuart about the suitability of the TC court as a venue for appeals. He has indicated that he does not think it appropriate but makes some useful suggestions. I am sure that, if the Bill were otherwise to proceed, the precise venue for an appeal is something that could be satisfactorily concluded.

The Bill also proposes to apply this system to disputes relating to the location and extent of private rights of way.

The noble Earl considers that the procedure proposed in the Bill will make dispute resolution simpler, faster and more cost-effective. These are laudable aims, which the Government share. Indeed, we have made, and continue to make, considerable efforts to control the cost of civil litigation to ensure that the costs incurred are proportionate to the subject matter of the dispute. However, we have significant reservations about the extent to which the proposals contained in the Bill would in fact improve matters. Indeed, we are concerned that they could have the unfortunate effect of making the resolution of these disputes more complex and costly than at present.

A similar Private Member’s Bill relating to the resolution of boundary disputes was introduced in the other place in 2012 by the honourable Member for Dover, Charlie Elphicke. In the light of the concerns that that raised, the Government decided to carry out an initial scoping study, the results of which were published on 15 January this year. The core conclusions of the scoping study were that there would be merit in the Government carrying out further work to assess the feasibility of improving a number of aspects of the current system, including, in particular, the use of mediation and expert determination, the spreading of best practice and the provision of better information, but that more radical reform, such as that proposed in this Bill and its predecessor, would not currently be justified.

The noble Earl’s Bill differs in some important respects from its predecessor and, in particular, extends to disputes about the location and extent of rights of way. These were not considered in the scoping study to which I have referred.

Before I update the House on the steps the Government have taken since the publication of the scoping study in considering improvements in the current system, I would like to focus on what we see as the core difficulties with the approach proposed by the noble Earl.

Responses to the scoping study confirmed that boundary disputes can arise for a number of reasons. Although some disputes may follow an unprincipled unilateral annexation of a strip of land, many more will derive from two honestly held beliefs—or fairly honestly held beliefs—as to where the boundary lies. At the root of these divergent views will frequently lie a conveyance that is poorly drafted or, at least, does not define the property to be transferred with sufficient clarity and precision. Because of this, such disputes will ultimately hinge on the legal question of who owns a particular piece of land or is entitled to exercise a particular right of access, and will fall to be decided on the interpretation of the evidence in the light of the law. In particular, the outcome will depend on the interpretation or construction of legal documents, such as conveyances and the plans incorporated in them.

I do not, in any way, wish to downgrade the very substantial contribution that surveyors can and do make to the resolution of these disputes. It is of course the case that judges will often rely to a considerable extent on the advice and expert evidence that surveyors provide.

In answer to the question raised by the noble Earl—is a boundary line a technical issue or a legal one?—a technical assessment of where a boundary lies is, in part, a surveying exercise. It would be unusual not to consider the lie of the land. However, this is not the whole story. The line of a boundary is ultimately a legal issue. I note the distinction that the noble Earl has made but am afraid that I am not entirely convinced by it.

The kind of dispute with which we are concerned is one that the courts and the land registration division of the property chamber of the First-tier Tribunal are designed to determine. I entirely agree with all speakers in this debate who confirmed that surveyors have great expertise in this area. However, a surveyor, no matter how expert in technical issues, will not be able to give a ruling that is conclusive in legal terms and will not necessarily have the legal expertise to deal with the complex legal issues that might arise; of course, I include adverse possession in this. This in itself would make it likely that many decisions would be appealed—this is my answer to the point made by the noble Lord, Lord Kennedy. That prospect becomes even more likely when one takes into account the considerable bitterness and antagonism that such disputes can generate.

I agree with all noble Lords who have expressed the view that it is far better that these matters are resolved out of court by simple arbitration or the involvement, perhaps, of one surveyor in a relatively informal context. However, as a number of noble Lords have pointed out, the reality is that these disputes can escalate and often involve costs that are out of all proportion to the amount in dispute. I fear that the mere interpolation of a process, which this Bill envisages, will not prevent those determined to see these disputes carried out to the bitter end.

The comparison with party-wall cases is of course important. However, unlike party-wall cases, boundary disputes are generally likely to produce a winner and a loser. Therefore, the chances that a loser will be determined to vindicate his or her view of what is right by bringing an appeal are high. A rigid system requiring referral in all cases at an early stage to the process, as set out in this Bill, could also serve to raise the stakes in the dispute, increase hostility and entrench attitudes.

Taken together, these points would mean that the Bill would simply add a further layer to the proceedings, which would increase the costs involved rather than reducing them. In addition, in some cases, the early appointment of experts could itself front-load costs where the dispute might have been resolved in other ways.

We believe that a more effective and proportionate approach is to look at practical procedural improvements to the current system, rather than undertake a radical overhaul. With that in mind, we are exploring the scope for improving court and tribunal procedure, encouraging the use of mediation and expert determination, and improving the availability of information on ways to settle disputes. We are in the process of developing firm proposals in the light of our discussion of these issues with the relevant bodies. As we announced in the report on the scoping study, we aim to announce our emerging conclusions before the end of the year.

I note, of course, that the noble Earl quite fairly said that the date for the Second Reading of his Bill was rather beyond his choice. I think he might accept that, in some ways, he would have been a little happier if it had come after the scoping report had been concluded. Be that as it may, I hope he will be reassured by the fact that the matters raised by his Bill are receiving serious consideration by the Government.

The noble Earl, Lord Kinnoull, with whom I shared the experience of studying Roman law at Oxford—there is some comparison with these issues—referred to the inequality of arms that quite often prevails in these disputes and which can result in their escalation. It is difficult to avoid that, whatever particular procedure we adopt. He also quite rightly made the point that surveyors are often particularly useful in resolving these disputes because of their skills in relationship management. That, of course, is a valuable quality in any profession, as I am sure he would agree.

The noble Earl said that the disputes are often factual, not legal. I agree with him to some extent. They are a bit of both: both fact and law. He referred, as did a number of other noble Lords, to the fact that the judiciary tend not to welcome such disputes. That is true. In my own experience, I have seen that judges, knowing that they are facing a boundary dispute, do not jump for joy at the prospect of the decision they will have to make. But not all judges, despite the quotations that we have received, share this lack of enthusiasm for boundary disputes. Indeed, the noble and learned Lord, Lord Hope, who spoke in the debate in January, told the House that he found them extremely interesting. He also, valuably, pointed out some of the advantages that there were in Scotland in resolving these issues, and in his careful consideration of the noble Earl’s Bill said that,

“I am not entirely convinced that making it compulsory for every such dispute to be resolved by reference to a panel of surveyors and excluding the courts entirely—as I think the draft Bill seeks to do—is either necessary or desirable. There will be cases where the title deeds alone will provide the answer and it may be that agreements can be reached; but I am not entirely sure that understanding these deeds is within the exclusive competence of a surveyor. There is then the problem of how to deal with other evidence about the way the property has been used, which may be hotly disputed and requires analysis, presentation of evidence, cross-examination of witnesses and so on. There is also the matter of adverse possession, which could raise very difficult issues”.—[Official Report, 15/1/15; col. GC 267.]

The noble Earl, Lord Kinnoull, asked me three questions. I think that I have dealt with the party wall issue and the comparison, which I respectfully suggest only goes so far. On the status quo not being satisfactory, we are well aware of the difficulties and, as I have indicated, are considering them.

I am sure that many noble Lords have similar experience of potentially difficult and expensive disputes to that of my noble friend Lady Gardner, and the Government share her desire to do all we can to limit the expense and heartache which such disputes can cause. The noble Earl, Lord Erroll, spoke of the immense complexity that is sometimes involved in such disputes. I cannot of course comment on the particular problem that he outlined in detail, but I detect that what he was suggesting was that, if there is to be a change in the law, it would be good if it embraced as many of the potential difficulties such as those which he has described.

We are grateful to all noble Lords who have taken part in this dispute.

[Noble Lords]

Oh!

[Lord Faulks]

I mean this debate—I am most grateful. I hope that my comments in this debate will reassure the noble Earl, Lord Lytton, and others who have spoken that the Government are committed to ensuring that boundary disputes can be resolved fairly and effectively and to minimising the adverse impact of adversarial behaviour and entrenched positions. We believe that the work that we are undertaking represents a more effective approach than radical reform of the law, which the Bill suggests. While the Government will not oppose the Motion to give the Bill a Second Reading, for the reasons that I have given we have reservations about the changes to the law that it proposes.