Kent County Council v Union Railways (North) Ltd & Anor [electronic resource]

[2009] EWCA Civ 363. 1 May 2009. Local authorities using compulsory purchase powers must serve notices on interested third parties as well as landowners. The appellant local authority appealed against a decision (see L144341) that it was not entitled, as an acquiring authority, to serve no notice to treat on the respondent railway company (U), the alleged owner of interests in land that it was compulsorily purchasing. The local authority had compulsorily purchased land from the landowner (B), over which U claimed rights over the land to lay cables across it. The rights included options to acquire freehold of the land or a lease, and an easement to lay cables. U claimed statutory compensation for loss of its rights. The local authority had served notices to treat and of entry on B, but not on U. Held: appeal dismissed, cross-appeal allowed, and the matter remitted to the Lands Tribunal for determination. The authority was obliged to serve notice to treat to a third party with an option to purchase the land. The acquisition of the option was necessary under s.5 of the Act; otherwise there would be nothing to stop the third party exercising its option and defeating the purpose of the purchase.