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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Yorkshire Electricity Distribution Plc v Telewest Ltd [2006] EWCA Civ 1418 (31 October 2006) URL: https://www.bailii.org/ew/cases/EWCA/Civ/2006/1418.html Cite as: [2006] EWCA Civ 1418 |
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COURT
OF JUDICATURE
COURT
OF
APPEAL
(CIVIL DIVISION)
ON
APPEAL
FROM THE QUEEN'S BENCH DIVISION
TECHNOLOGY AND CONSTRUCTION
COURT
HH
Judge Simon GRENFELL
Case No 4T00709
Courts of JusticeStrand, London, WC2A 2LL |
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B e f o r e :
Lord Justice Sedley
Lord Justice Dyson
____________________
Yorkshire Electricity Distribution plc | Appellant |
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| - and - |
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Telewest Ltd | Respondent |
____________________
WordWave International
Ltd
A
Merrill Communications Company
190 Fleet Street, London EC4A 2AG
Tel No: 020 7421 4040 Fax No: 020 7831 8838
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Court)
Mr Paul Darling QC and Mr Jonathan Lee (instructed by Gisby Harrison) for the Respondent
____________________
VERSION
OF JUDGMENT
Crown Copyright ©
Lord Justice Buxton:
Background
appeal
concerns a dispute between an
electricity
supply company,
Yorkshire
Electricity
Distribution
plc
[YEDL], and a cable television company,
Telewest
Limited [
Telewest].
Both of them use the substratum of the public highway, YEDL for its
electricity
cables and
Telewest
for fibre optic cables encased in plastic ducting. From time to time it is necessary for YEDL to repair its cables. Because that has to be done while the cable is live, the engineers need a safe amount of space in which to work. On occasion they find access barred by
Telewest's
ducting, necessitating the cutting out of a section of the ducting so that the fibre optic cabling can be drawn back out of the way. The immediate dispute concerns liability for the cost of making good the ducting,
Telewest
claiming for that under section 82 of the New Roads and Street Works Act 1991 [the Act].
"Test cases"
appeals
in five cases in which
Telewest
has brought such proceedings in the Technology and Construction
Court.
The total sum in issue is about £3,500. We were however told that the same dispute had arisen in many hundreds of other cases, and that these were test cases, intended to generate general principles that could be used in the litigation or, hopefully, settlement of the other disputes. There is an immediate difficulty about that procedure. In all of the cases the facts were hotly disputed. The judge made findings of fact that, unless disturbed, disposed of the cases, in several of the five examples without engaging the issues of general principle on which the parties had come to this
court
to seek enlightenment. We concluded in each case, for reasons that will be briefly indicated below, that the judge's factual findings were not open to challenge. Therefore, if we had followed the usual
view
of the limited role of this
court,
we would have dismissed the
appeals
on those grounds and gone no further.
appeals
were presented as test cases was misconceived, the general issues are important for both parties, and possibly for others in the industry, and considerable expense, and expertise, has been expended in exploring them. In what follows we therefore say a good deal about the law and its implications, and somewhat less about the actual cases with which we are seised. We also, in the hope of saving the parties further expense, and certainly in the hope of husbanding the resources of the legal system, make some helpful suggestions as to how matters might be managed in the future.
The statutory scheme
Telewest
and YEDL are undertakers. Both
Telewest's
fibre optic cables and ducting and YEDL's
electricity
cables are apparatus.
very
odd if Parliament had provided relief based on strict liability, but with a specific exemption, if it intended the common law of negligence nonetheless to continue in parallel with that scheme. That
view
is not displaced by section 82(6), providing that the section does not exonerate an undertaker "from any liability to which he would otherwise be subject". That saving, as Mr Cousins QC argued, is in the nature of the avoidance of doubt, and is directed at liability to third parties other than those listed as benefitting from the imposition of strict liability. If the draftsman had intended to say that the imposition of statutory liability between particular parties was without prejudice to rights of action at common law between those parties he had at his disposal much clearer and more direct ways of expressing himself.
appeal
is section 69. That provides that
1) Where street works are likely to affect another person's apparatus in the street, the undertaker executing the works shall take all reasonably practicable steps-
a) to give the person to whom the apparatus belongs reasonable facilities for monitoring the execution of the works, and
b) to comply with any requirement made by him which is reasonably necessary for the protection of the apparatus or for securing access to it.
Other guidance
various
kinds of apparatus. The second general document referred to was Health and Safety Executive Guidance Note 47 [HSG47], "Avoiding Danger from Underground Services", which inter alia recommends the adoption of the NJUG7 dimensions.
Overview
appeal
involves more complicated issues. First, whether in the circumstances of these cases undertaker A should have planned ahead to avoid the apparatus of undertaker B. Second, whether if called on undertaker B should himself adjust his equipment to accommodate undertaker A and, if so, what the implications are for compensation. Against that background a series of general issues arise:
i) WhenTelewest
originally laid its ducting, was it obliged to give notice under section 69 to YEDL in respect of the latter's already existing cables?
ii) Would failure to give that notice constitute misconduct on
Telewest's
part in relation to any claim by
Telewest
under section 82?
iii) What were the obligations of
Telewest
in the physical laying of the ducting? To what extent are the provisions of NJUG7 and HSG47 dispositive? In that context, what would count as misconduct in relation to a section 82 claim by
Telewest?
![]()
iv) When embarking upon repairs that require the moving of
Telewest's
ducting in order to secure safe access, is YEDL obliged to give notice to
Telewest
under section 69, and under what circumstances is YEDL free to proceed without giving such notice?
v)
Does the failure of YEDL to give notice to
Telewest
result in damage to the ducts by YEDL in the course of moving them not being "attributable" in the terms of section 82(4) to any previous misconduct by
Telewest?
![]()
vi)
If the work of making space for YEDL's repair work is undertaken by
Telewest
at YEDL's request, and the situation is one in which the placing of the duct is not a case of misconduct by
Telewest
under section 82(4), is (a) cutting into the ducting to enable the fibre optic cable to be moved; (b) attending at site simply to move the ducting; "damage" in the terms of section 82(1)(b)?
Telewest's
duties on laying its ducting: notice to YEDL
electricity
cables under the surface is a comparatively simple matter, so that
Telewest
could easily have undertaken in any location where it proposed to lay ducting. It was therefore reasonably practicable in the terms of section 69 for
Telewest
to give YEDL the opportunity to require the preservation of access to its own apparatus. Any such exchanges would no doubt have focussed on the guidance given in NJUG7.
Telewest
did give such notice. The parties were accordingly reduced to argument about where the burden lay on that point. We were attracted to the argument advanced by Mr Darling QC that since the significance of the point in the present context is to establish that a failure to give notice would amount to misconduct by
Telewest,
as a defence for YEDL under section 82(4) to an obligation under section 82(1) for which it was otherwise strictly liable, the burden must lie on YEDL: which it might or might not successfully discharge simply by pointing to the absence from its papers of any notifications from
Telewest.
We do not, however, need to decide those points. That is because the question in every case before us is indeed whether damage to
Telewest's
ducting in the course of obtaining access to YEDL's cables was attributable to misconduct by
Telewest.
That will turn on whether the physical position of the
Telewest
ducts unreasonably obstructed access to the cable. If it did, then the only relevance of
Telewest
giving notice would have been if YEDL had been given the opportunity to correct the position but did not take it; but that has never been
Telewest's
case. On the other hand, if the ducting did not unreasonably obstruct the cable, then failure to give notice is irrelevant.
Telewest's
obligations in laying its ducting: location and procedure
Telewest's
ducting did prevent safe access to the YEDL cable. If that had not been so, YEDL would have no defence to a claim for damage to the ducting.
Telewest,
account has to be taken of whether the ducts were laid within the limits stipulated in NJUG7. The judge stressed the advisory nature of that publication, but there is no doubt that it carries significant advice, and its importance is reinforced by the use of NJUG7 dimensions for safety reasons in HSG47. In his §28 the judge summarised the position:
The significance of [NJUG7] to these claims is that in some circumstances failure to follow the advice given within its pages is capable of amounting to negligence and, possibly, in a deliberate ignoring of the advice, misconduct. I prefer not to consider departures from recommended distances as 'breaches' of the guidance but just that-departures. Whether in each instance a departure amounts to negligence has to be a question of fact and degree, taking into account the general circumstances of the available space within the footway and, if necessary, consideration of whether the apparatus, in this case fibre optic cable ducting, should have been laid in the carriageway.
virgin
soil, rather than to an operation such as that of
Telewest
where a newcomer has to find his own space. However, it seems to us inescapable that if a duct were laid in breach of the NJUG7 guide dimensions, and without any good reason being shown for that, then that would be an act of misconduct in the section 82(4) sense.
Telewest
in any of the cases before him. Having heard some argument on this point, we would support that
view
more generally. Many interests are involved in these operations, not least those of road users. While the digging up of the pavement is inconvenient enough for the general public, invasion of the carriageway carries obstruction, and the creation of hazard, to another level. We do not think that the overall statutory scheme requires that course except where there is absolutely no alternative.
Telewest's
ducting had been deliberately laid directly on top of YEDL's cables, that of course being the easiest path for the layer of the ducting to follow. The joint report of the experts instructed in this case supported that
view.
The judge, having himself heard evidence about the individual cases, found that YEDL's case was not proved. Mr Cousins argued that that conclusion was not open to the judge, at least unless he explained in a good deal more detail than he had why he departed from the expert report. We do not agree. What was contained in the experts' report was not a piece of expertise, from which, as it falls outside his area of skill, the judge will only depart with good reason. The finding was, rather, one of fact, which the judge not only was entitled to but had to revisit for himself, and where he explained his own findings perfectly adequately, in terms that we summarise in §§ 37-41 below.
Telewest
simply to lay its ducts over YEDL's cables. That plainly disregards not only NJUG7 but also crude commonsense. If this complaint had been made out it would be a clear pointer to negligence, if not indeed misconduct, on the part of
Telewest.
Telewest's
predecessor, and whose work
Telewest
inherited. Put shortly, that provided that the contractor should comply "wherever possible" with NJUG7, but when it came to specify standards for "separation from other plant" it laid down dimensions that were markedly less than those provided in NJUG7.
Telewest's
practice had been systematically in breach of industry standards, does not seem to have been pleaded, and Mr Darling said that it was irrelevant in
view
of the judge's finding that in none of the cases before him had the ducting in fact been laid in a negligent manner. However, the general issue does remain one of some importance. The judge dealt with it in an unsatisfactory manner. He recorded in his §56 that the departure in the instructions from NJUG7 "remains unexplained", and continued:
However, Mr Myers ofTelewest,
who himself was involved in the programme of laying the ducts, has made it clear that the contractors were a responsible company who were well aware that they were to lay the ducts as far as possible in accordance with the guidance set out in [NJUG7]. It was a term of their contract that they should wherever possible comply with [NJUG7].
We fear that we regard that as a triumph of hope over expectation. Far from its being likely that a contractor, however responsible, would observe limits, more onerous to him, different from those set out in the contract, there is every ground for thinking that he would follow the specific rules, rather than the general aspirations, of his contract, and he is not to be criticised for so doing.
Telewest
have similar terms in their contracts. If that means that, as in the present case, contractors are empowered to depart in all cases, even without good reason, from industry standards, then this is an issue of some considerable general importance. We can say no more than that if in any case it were established that an obstructing duct had been laid in breach of NJUG7 dimensions simply because
Telewest's
contract or its predecessor's so permitted, and without regard to any special circumstances, that would be a clear case of negligence or misconduct in section 82(4) terms.
YEDL's obligations on discovering that its repair work is impeded by
Telewest's
ducting
Telewest
ducting, either by cutting the ducting or otherwise, in order to be able safely to effect its repairs. Those street works will affect
Telewest's
apparatus, and therefore bring YEDL within the obligation imposed by section 69.
electricity
and the perceived slowness of
Telewest
in attending at the scene of the works, YEDL had been justified in simply going ahead with the repair, including interference with the ducting, without notice to
Telewest.
The judge did not accept that argument. He held that in all of the cases before him, whether the work was pre-planned or of an "emergency" nature, there was sufficient time to inform
Telewest
that their ducting needed to be moved (Judgment, §76); and in his summary passage, §109(ix), he said that
Only in a situation where the work could not even wait for a call to be made toTelewest
would there be good reason why YEDL should not seek to make contact with
Telewest
Such a conclusion is necessarily fact-sensitive; but it contains a more general finding, with which we respectfully agree, that there was no justification for YEDL assuming that in every case it was exempt from giving notification to
Telewest.
The effect of YEDL not giving notice to
Telewest
Telewest's
ducting, either because it had been damaged by careless work during the initial opening of the street (therefore not raising the issues of balance between the interests of YEDL and of
Telewest
with which we are concerned in this
appeal);
or because the ducting had been damaged otherwise, thus giving rise to section 82 strict liability, and it had not been established that
Telewest
had been negligent so as to attract section 82(4) in YEDL's defence. What the judge said as to the effect of YEDL's failure to give notice in a case where, unlike those before him,
Telewest
had been negligent was, therefore, obiter.
On the evidence that I have heard, I am satisfied that, ifTelewest
had been immediately informed of the need temporarily to remove a section of ducting, then they would have had the opportunity of responding, either by agreeing to remove the section themselves or permitting a properly trained YEDL operative to do so. It was the decision in each of the test cases to remove the section of ducting without recourse to
Telewest
that actually caused the section to be damaged.
So the damage was not, under section 82(4), "attributable" to the (for the purposes of this argument, assumed) misconduct or negligence of
Telewest.
Telewest
ducting was obstructing YEDL's work, it had to be moved by someone. If the obstruction was caused by negligence on the part of
Telewest,
then that movement, and the damage that it necessarily entailed, was attributable to that negligence, irrespective of whoever actually undertook the movement. It would only be if unnecessary damage was caused by unskilled operatives that it would be relevant that the work was undertaken by YEDL without reference to
Telewest,
rather than by
Telewest
itself or by someone approved by
Telewest;
but that is an issue as to quantum, rather than initial liability.
The meaning of "damage" in section 82(1)(b)
An interesting feature of these claims is that there are instances where it is plainly necessary to remove a section of ducting. WhetherTelewest
is notified and has the chance to do the removal themselves, it is always going to be necessary for
Telewest
to repair the section. I agree with [counsel for YEDL] that it is difficult to see what loss, in terms of economic loss,
Telewest
incurs in those circumstances. Nevertheless, if YEDL does the cutting of the duct themselves, there is plainly "damage" to the duct within the meaning of section 82(1).
The judge thought, we would respectfully think correctly, that the provision that there should be recovery even in a case where there had been no "economic" (ie financial) loss showed that the statutory scheme was different from, and intended to replace, the common law.
Telewest
had done the work, either by reference from YEDL or of its own motion, that work could not be seen as including "making good damage" to
Telewest's
apparatus. We cannot agree with that argument. Damage here has its ordinary meaning of interference with the physical structure of an object in a way that does not enhance its
viability
or
value.
If the ducts have to be cut in order to enable YEDL's men to work, whether by their owner or by someone else, they are damaged.
Telewest
is in principle entitled to the cost of making that good.
Telewest
to recover its costs in assisting YEDL. If
Telewest
attends and merely moves the ducting, without interference with its structure as opposed to its position in the ground, then it would appear, and we understood Mr Darling reluctantly to agree, that since nothing has occurred that could be described as damage there is no basis in the statute for
Telewest
to be compensated for its work. This lacuna, as we think it to be, is attributable to the background to which we drew attention in §10 above, that the paradigm perceived by the draftsman is the simple case of A when laying his apparatus damaging the apparatus of B, rather than of A or B taking steps in relation to B's existing apparatus to prevent its obstructing access to the existing apparatus of A.
appeal,
which concern the five allegedly test cases on which the judge was required to rule.
The cases addressed by the judge and their disposal
Telewest.
None of the judge's remaining findings can be challenged in this
court,
and they are therefore dispositive of the actual
appeals.
various
interests that we have wrestled with in the earlier part of this judgment does not arise. That fact underlines the artificiality of treating these as "test" cases.
Telewest's
ducting by accident", so "the damage to the ducting cannot be attributed to any departure that there might have been in relation to the laying of the ducting" [§84].
Telewest]
with regard to the relative position of the YEDL cable and the ducts" [§90]
Telewest"
[§99] "As to whether [
Telewest]
departed from [NJUG7] guidance by laying its ducts too close to the YEDL low
voltage
cable, there is insufficient evidence" [§101]
The way forward
appeals.
The time of this
court
would, however, have been entirely wasted if the matter were left there. The judge said, in his § 109(xii), that there was an urgent need for a protocol to be agreed between YEDL and
Telewest
to deal with these situations appropriately. Thus far, that exhortation has fallen on deaf ears. We will try to reinforce that, with respect, eminently sensible attempt to assist the parties.
Telewest's
ducting in the course of street works, whoever it is that actually does the work that constitutes the damage, YEDL must pay for the making good of that damage unless it can establish negligence or misconduct under section 82(4). The mere laying of ducting without giving section 69 notice to YEDL will not count as such misconduct; the issue is where the ducting is and how it has been laid. If it obstructs access to YEDL's cables and has been laid outside the dimensions laid down in NJUG7 it will be assumed that the case is one of negligence or misconduct, unless
Telewest
can demonstrate circumstances preventing the application of the NJUG7 guidance. If the ducting has been laid by a contractor whose instructions permitted him to depart from NJUG7 without having to show good reason, it will be assumed that such departure has occurred. When contemplating interference with
Telewest's
ducting, whether or not in a case where a section 82(4) defence is or may be available, YEDL must so far as reasonably practicable give
Telewest
the opportunity to monitor the execution of the works envisaged by section 69, and comply with any reasonable requirement (including that
Telewest
itself should undertake the works) that
Telewest
imposes. The effect of YEDL omitting to follow that course would be to expose it to claims by
Telewest
that the work had been unnecessary, or that damage had been caused because of lack of skill or understanding on the part of the operatives. Where physical damage is caused, either by YEDL or by
Telewest
in reasonably meeting YEDL's requirements, YEDL is liable for it unless it can establish a defence under section 82(4). YEDL is not liable for the cost of
Telewest
attending on site if nothing that can be described as "damage" occurs: see §32 above.
various
suggestions, that we
venture
to adopt and expand on.
various
apparatus. Although we have held that a failure in the past to give a section 69 notice would not necessarily count as misconduct in the laying of ducting, now that a scheme has been suggested that depends on notification a failure to co-operate on
Telewest's
part will count as misconduct on
Telewest's
part. Second, when YEDL is contemplating pre-planned repair work (as in the great majority of the test cases) in any location where
Telewest
has notified the presence of ducting it must give notice to
Telewest,
to enable
Telewest
to consider how and under what conditions its ducting was laid. Third, as soon as YEDL decides that ducting needs to be moved or otherwise interfered with, whether or not working in a location in respect of which
Telewest
has not given notice, and whether or not in the course of pre-planned work, YEDL must give immediate notice to
Telewest:
since that at least will always be practicable even if the work has to start at once. Fourth,
Telewest
must make arrangements to attend promptly on site to enable it to determine what directions it needs to give to YEDL, or whether it should undertake the work itself. It would plainly be a good idea, as the judge suggested, if
Telewest
trained a number of YEDL operatives so that it could sub-contract the work to one of them. If
Telewest
does not take the opportunity to give directions or undertake the work itself, then it will forefeit any right to complain of excessive or incompetent work.
Telewest,
as already exhaustively discussed in this judgment. That is
very
much a fact-related issue, and we have already given as much guidance as we think to be possible in abstract terms. The judge suggested that that, and any issue of the reasonableness of
Telewest's
response, should be decided by a simple mediation system, or failing that in the Small Claims
court.
We respectfully agree with the spirit of that approach, but not with its detail.
court
must be avoided in future. Second, the process between the parties should not be one of mediation, which carries too much potential for the leisurely
ventilation
of extensive issues such as has occurred so far in this matter, but one of arbitration or, rather, determination by an expert. The parties should arrange to refer any dispute to a single engineer, agreed by them or in default appointed by the President of the Institute of
Electrical
Engineers, who will determine any dispute on the basis of short written submissions with photographs of the site. He will apply the principles set out in this judgment so far as they are relevant to the case, and because he will deal with every case he will rapidly become familiar with the issues. Because he will act as expert his decisions will not be subject to
appeal.
And as a body of decisions developes the parties should be less and less in need of his assistance.
court,
and the more so in this
court, in circumstances that have led them to litigation because of a failure to operate the system that we and, in essence, the judge have suggested, they are likely to receive short shrift, and certainly to encounter an unsympathetic approach to costs.
Lord Justice Sedley:
Lord Justice Dyson:
50. I also agree.