The Manchester Ship Canal Company Ltd (Appellant) v Vauxhall Motors Ltd (Formerly General Motors UK Ltd) (Respondent)

Case summary

Case ID

UKSC/2018/0116

Parties

Appellant(s)

The Manchester Ship Canal Company Ltd (‘MSCC’

Respondent(s)

Vauxhall Motors Ltd (formerly General Motors UK Ltd) (‘Vauxhall’)

Issue

(1) Whether the court can grant relief from forfeiture in respect of a contractual licence relating to the use of land, and if so, in what circumstances. (2) What the nature and extent are of a riparian landowner’s rights to drain his or her land into the water flowing through it.

Facts

Vauxhall’s Ellesmere Port plant, near the Manchester Ship Canal, stands on part of an estate that once drained freely into the River Mersey. Then the Canal was built, cutting the estate off from the river. The Manchester Ship Canal Act 1885 preserved the estate’s drainage rights against “works or operations” by MSCC that would interfere with or prejudicially affect its drainage. In 1962, when Vauxhall was developing the plant. MSCC gave Vauxhall a perpetual licence to drain its land over MSCC’s land into the Canal, and build and maintain a system of pipes and infrastructure for the purpose. In return Vauxhall had to pay MSCC £50 per year. If Vauxhall missed a payment, MSCC could, having given notice, terminate the licence. Today, the right of drainage is worth up to £440,000 per year. Vauxhall missed a payment due in October 2013, and on 10 March 2014, MSCC terminated the licence. Vauxhall applied for relief from forfeiture in respect of the licence. It also claimed that MSCC had breached its rights under the 1885 Act. The High Court granted relief from forfeiture, but dismissed the 1885 Act claim. The Court of Appeal dismissed MSCC’s appeal and Vauxhall’s cross-appeal.

Date of issue

13 June 2018

Judgment details

Judgment date

23 October 2019

Neutral citation

[2019] UKSC 46

Judgment links

Judgment summary

23 October 2019

Appeal

Justices

Lord Carnwath

Lady Black

Lord Briggs

Lady Arden

Lord Kitchin

Hearing dates

Full hearing

Start date

9 July 2019

End date

10 July 2019

Watch hearings

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