The Party
Wall etc Act 1996 was introduced to provide a framework for neighbours who
share a boundary to carry out building works involving their party wall or
structure. It includes at section 10 a dispute resolution procedure, which
gives surveyors considerable powers “in respect of any matter connected with
any work to which the Act relates”. In my experience, this wide wording has led
to some confusion about the extent of issues that can be dealt with under the
Act, and at times surveyors have found themselves acting as arbitrators in a
complicated and long-running neighbour dispute with little to do with party
walls. The risk is that any attempt to deal with these wider issues in the
party wall award, however tempting, can render it invalid, leaving clients with
no option but to appeal the award, and leading to increased costs and delay.
In the recent
case of Dillard v F & C Commercial Property Holdings Ltd [2014] EWHC
1219 (QB), the Technology and Construction Court supported the use of a
deed entered into by the parties to address issues arising from the building
owner’s development, instead of the Act’s section 10 provisions. This meant the
party wall award dealing with compensation was set aside and the deed’s dispute
resolution clause, which provided for expert determination and no right of
appeal, took precedence. Care must be taken, however, as although the parties
were able to agree to deal with certain issues outside the Act, its provisions
will still apply to the extent that they are relevant to the planned works.
The lesson
must be that early involvement of a lawyer could save costs further down the
line, to ensure the parties’ agreement will have teeth, whether by deed or
under the Act.
by Mike Scott, Partner
