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Nottingham Forest Trustee Ltd v Unison Networks Ltd [2021] NZCA 227; [2021] 3 NZLR 823 (3 June 2021)

Last Updated: 19 October 2022

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IN THE COURT OF APPEAL OF NEW ZEALAND

I TE KŌTI PĪRA O AOTEAROA
CA523/2019
[2021] NZCA 227



BETWEEN

NOTTINGHAM FOREST TRUSTEE LIMITED
First Appellant


ROGER DICKIE (N.Z.) LIMITED
Second Appellant


FOREST MANAGEMENT (NZ) LIMITED
Third Appellant


NOTTINGHAM FOREST PARTNERSHIP
Fourth Appellant


AND

UNISON NETWORKS LIMITED
Respondent

Hearing:

8 September 2020

Court:

Cooper, Clifford and Collins JJ

Counsel:

C T Walker QC, A L Sweeney and I J Thain for Appellants
J B M Smith QC and S B McCusker for Respondent

Judgment:

3 June 2021 at 10.30 am


JUDGMENT OF THE COURT

A The appeal is dismissed.

B The cross-appeal is also dismissed.

  1. The appellants must pay the respondent costs on the appeal calculated for a standard appeal on a band A basis, and usual disbursements. We certify for two counsel.
  1. The respondent must pay the appellants costs on the cross-appeal on the same basis, and usual disbursements. We certify for two counsel.

____________________________________________________________________

REASONS OF THE COURT

(Given by Cooper J)

Table of Contents

Para No.

Introduction

Facts

... a wrongful interference with Unison’s lawful and reasonable use of the land in circumstances where [RDNZ] has failed to exercise the care in the management of trees that a reasonably prudent forestry operator would exercise.

[67] In the end, however, all that can really be taken from the expert evidence (in terms of assessing the risk of any specific tree failing) is that:

(a) healthy plantation pine trees can fail in adverse weather conditions for a number of reasons (including root plate failure);

(b) some risk factors are elevated where trees are grown around a cleared corridor;

(c) each tree fall event adds to the risk that newly exposed trees will fail; and

(d) earlier falls of trees in a particular area might suggest that future falls in that area are more likely.

Unison’s claim in the High Court

(a) allowing trees growing near the line to reach a height at which they could fall onto it;

(b) failing to ensure that the trees were inspected and managed in a way that excluded any risk, or alternatively excluded any material risk, to the line; and

(c) allowing trees to fall onto the line.

(a) an escape of something harmful from the forest land, due to a non‑natural use of that land; and/or

(b) other interference with Unison’s property rights arising from a non‑natural use of the land.

(a) implement a regular programme of inspection to identify trees with an “elevated risk of falling” on the line;

(b) prune or harvest the trees at risk of falling;

(c) carry out regular trimming of the trees; and

(d) identify and remedy the risks caused by the trees that ultimately fell causing each of the four strikes.

The High Court judgment

(a) Unison’s statutory right (once exercised) constitutes an interest in land in the form of a corporeal hereditament;

(b) the owner of the utility works has the exclusive right to occupy the portion of the soil where the works lie to the exclusion of all others;

(c) the interests of the owner of the surrounding land are ousted so long as the works remain in place;

(d) as the statutory right confers exclusive possession, the utility company’s interest in the land is greater than an easement or a license; but

(e) even if no interest in land can be said to exist, as a matter of policy, the existence and importance of the works must mean that Unison is possessed of a sufficient interest to found an action in Rylandsv Fletcher or nuisance.

Although Nottingham Forest’s appeal challenged these conclusions, Mr Walker QC advised us at the hearing of the appeal that the issue was no longer pursued.

... an isolated escape of something dangerous (a non-natural user) which a defendant has brought onto or accumulated on his land, liability (under the rule in Rylands v Fletcher) is strict.

As I understand it, that change in position was predicated on the assumption that both the “state of affairs” and the falling trees constituted nuisance simpliciter. Given that the individual tree falls form the foundation for the damages claim, the concession cannot have been intended to signal an abandonment of the strict liability claim relating to those falls.

(a) the bulk supply of electricity (and ensuring its continuity) is a matter of significant public importance;

(b) the electricity works (Unison’s interest in land) pre-date the planting of the Forest;

(c) while it does not seem that the defendants receive compensation from Unison for the ongoing presence of the works, their presence would logically have influenced the price for which they purchased the land;

(d) the Forest was planted at a time when there was no statutory/regulatory obligation to ensure that trees/branches were located or kept at any particular distance from the works;

(e) the object in planting and growing the Forest is commercial and it is implicit in that endeavour that the trees are to reach a certain (mature) height before harvesting;

(f) it was foreseeable (at the time of planting) that a number of those mature height trees would be within falling distance of Unison’s pre‑existing electricity works;

(g) it was foreseeable (at the time of planting) that any trees which do fall on the works are likely to do physical damage to the works and that such damage would have both a physical component and a consequential effect for Unison’s customers;

(h) it was known (and again was foreseeable) that healthy trees in forests can fall from time to time, for example as a result of weather events and/or soil conditions, and notwithstanding that the trees themselves have no obvious defects; and

(i) at the time of planting Unison had no ability (statutory or otherwise) to require the defendants’ trees to be felled or to fell them itself and (accordingly) no way of protecting the works; and

(j) the subsequent promulgation of the [Electricity (Hazards from Trees) Regulations 2003] has not changed that position, because they apply only to encroaching trees.

[96] In short, it seems right in principle that strict liability should follow where both the choice to accumulate the trees in the first place and the ability to ensure that, in the event of a fall, they do not damage Unison’s works, lies with the defendants. Unison is powerless to protect itself and its customers from harm (no evidence was called, and no argument made, in terms of any ability Unison might have to insure against the risk). Damage from tree fall was never a risk its predecessor assumed when placing the works on the land.

(a) Nottingham Forest was strictly liable to Unison for tree falls onto the line;

(b) injunctive relief was not appropriate; and

(c) Nottingham Forest must pay damages to Unison in the sum of $195,000.

The appeal

Discussion

Nuisance

Wholly to deprive a man of the opportunity of exercising his rights over land was to disseise him, for which he might have recourse to the assize of novel disseissin. But to trouble a man in the exercise of his rights over land without going so far as to dispossess him was a trespass or a nuisance according to whether the act was done on or off the plaintiff’s land. Thus, to go on to the plaintiff’s land and demolish a weir was a trespass which gave rise to the action of trespass: to stay on your own land and demolish a weir to the hurt of the plaintiff was a nuisance for which the assize of nuisance was the proper remedy. Nuisance could never be committed on the plaintiff’s land: an act done on the plaintiff’s land would be disseisin or trespass according to circumstances.

[123] Emanation is the connecting act between the activities done on a defendant’s land and the alleged interference with the use and enjoyment of the plaintiff’s land. Emanation requires a transposition of the alleged nuisance (such as noise, dirt, noxious substances or vibrations) from the defendant’s property to the plaintiff’s property. When the alleged nuisance reaches the plaintiff’s property, and substantially and unreasonably interferes with [the] plaintiff’s right to use and enjoy his or her land, there will be an actionable private nuisance.

... a person in whose house a fire is caused by negligence is liable if it spreads to that of his neighbour, and this is true whether the negligence is his own or that of his servant or his guest ...

It grew out of the older, nominate, forms of tort. A negligent neighbour who damaged your land more resembled a negligent bailee or a negligent driver than a factory owner deliberately emitting smoke and noxious gases into the atmosphere. The negligent act was generally an isolated event: it is difficult to be continuously negligent without becoming desirous of, or at least reckless as to, the damage that is being done. ... So negligence was the chosen tort and it has remained so to this day, covering D’s negligent behaviour where it damages his neighbour P’s property, in the same way as it encompasses many other varieties of fault.

I do not think it material to consider whether the beech was originally planted (as most boundary trees would be) or whether it grew casually. Such a tree is a usual and normal incident of the English country; it develops by slow natural growth, its branches are not likely to cause danger, even if permitted to expand outwards over the highway. Such a tree cannot be compared to a tiger, a spreading fire, or a reservoir in which a huge weight of water is artificially accumulated to be kept in by dams, or noxious fumes or sewage. I see no reason whatever to apply the principle of Rylands v Fletcher to the case now under consideration.

... where a person is using his land in the ordinary way and damage happens to the adjoining property without any default or negligence on his part, no liability attaches to him.

... not a duty of insuring his neighbour or users of the adjoining highway against damage from his trees; but ... a duty to exercise the care in the management of his trees which a reasonably prudent landowner would exercise.

... balance has to be maintained between the right of the occupier to do what he likes with his own, and the right of his neighbour not to be interfered with.

Further, in Hunter v Canary Wharf Ltd, Lord Goff referred to “striking a balance between the interests of neighbours in the use of their land”.[79] And in Southwark London Borough Council v Tanner Lord Millett referred to balancing the conflicting interests of adjoining owners.[80]

... if the user is reasonable, the defendant will not be liable for consequent harm to his neighbour’s enjoyment of his land; but if the user is not reasonable, the defendant will be liable, even though he may have exercised reasonable care and skill to avoid it.

Liability in nuisance is strict in the sense that one has no right to carry on an activity which unreasonably interferes with a neighbour’s use of land merely because one is doing it with all reasonable care. If it cannot be done without causing an unreasonable interference, it cannot be done at all.

But it by no means follows that the defendant should be held liable for damage of a type which he could not reasonably foresee; and the development of the law of negligence in the past 60 years points strongly towards a requirement that such foreseeability should be a prerequisite of liability in damages for nuisance, as it is of liability in negligence.

Rylands v Fletcher

We think that the true rule of law is, that the person who for his own purposes brings on his lands and collects and keeps there anything likely to do mischief if it escapes, must keep it in at his peril, and, if he does not do so, is prima facie answerable for all the damage which is the natural consequence of its escape.

... certain things are a source of extraordinary risk, and a man who exposes his neighbour to such a risk is held ... to insure his neighbour against any consequent harm not due to some cause beyond human foresight and control.

[27] Rylands v Fletcher was therefore an innovation in being the first clear imposition of liability for damage caused by an escape which was not alleged to be either intended or reasonably foreseeable. I think that this is what Professor Newark meant when he said in his celebrated article (“The Boundaries of Nuisance” ... ) that the novelty in Rylands v Fletcher was the decision that “an isolated escape is actionable”. That is not because a single deluge is less of a nuisance than a steady trickle, but because repeated escapes such as the discharge of water in the mining cases and the discharge of chemicals in the factory cases do not raise any question about whether the escape was reasonably foreseeable. If the defendant does not know what he is doing, the plaintiff will certainly tell him. It is the single escape which raises the question of whether or not it was reasonably foreseeable and, if not, whether the defendant should nevertheless be liable. Rylands v Fletcher decided that he should.

It is not every use to which land is put that brings into play that principle. It must be some special use bringing with it increased dangers to others, and must not merely be the ordinary use of the land or such a use as is proper for the general benefit of the community.

I think it clear that ordinary user is a preferable test to natural user, making it clear that the rule in Rylands v Fletcher is engaged only where the defendant’s use is shown to be extraordinary and unusual. This is not a test to be inflexibly applied: a use may be extraordinary and unusual at one time or in one place but not so at another time or in another place ... I also doubt whether a test of reasonable user is helpful, since a user may well be quite out of the ordinary but not unreasonable ...

The cross-appeal

[103] Negligence was pleaded as an alternative to Unison’s primary claims in nuisance and Rylands v Fletcher. It was not the preferred cause of action not just because it requires fault to be established but also because injunctive relief is not an available remedy. And unless the relevant breach of duty could be said to be planting the trees within falling distance of the Line in the first place (which is not pleaded and as to the merits of which I do not comment) no fault is established on the evidence here.

Result





Solicitors:
DLA Piper, Wellington for Appellants
Luke Cunningham Clere, Wellington for Respondent


[1] There are four named appellants, who either had a proprietary interest in the forest or were concerned in its operation and management: Nottingham Forest Trustee Ltd, Roger Dickie (N.Z.) Ltd, Forest Management (NZ) Ltd and Nottingham Forest Partnership. With a few exceptions, it is unnecessary to distinguish between these parties for the purposes of this judgment and we refer to them collectively as “Nottingham Forest”.

[2] Unison Networks Ltd v Nottingham Forest Trustee Ltd [2019] NZHC 2280 [High Court judgment].

[3] At [23].

[4] At [25].

[5] At [30].

[6] At [36].

[7] At [39].

[8] At [44].

[9] We note that while it is generally necessary for there to be a proprietary interest to claim in nuisance (see Hunter v Canary Wharf Ltd [1997] AC 655 (HL) at 688 per Lord Goff) that is not the case for Rylands v Fletcher. The test articulated by Blackburn J was that a defendant brought some dangerous thing onto their land for their own purposes: Rylands v Fletcher [1866] UKLawRpExch 36; (1866) LR 1 Exch 265 at 279. A proprietary interest in land has never been a formal prerequisite for a plaintiff to bring a claim in Rylands v Fletcher: see John Murphy “The Merits of Rylands v Fletcher” (2004) 24 Ox J Leg Stud 643 at 645–650.

[10] Electricity Act 1992, s 22.

[11] Section 23(1) and (3).

[12] High Court judgment, above n 2, at [78].

[13] At [80].

[14] At [80], citing Charing Cross Electricity Supply Co v Hydraulic Power Co [1914] UKLawRpKQB 88; [1914] 3 KB 772 (CA).

[15] At [81]–[82], citing Hutt Valley Electric-Power Board v Lower Hutt City Corp [1949] NZGazLawRp 70; [1949] NZLR 611 (CA); and Telecom Auckland Ltd v Auckland City Council [1999] 1 NZLR 426 (CA).

[16] At [83].

[17] At [87(a)].

[18] At [87(b)].

[19] At [87(c)].

[20] At [87(e)].

[21] At [88].

[22] At [71].

[23] At [72].

[24] At [73].

[25] At [73], n 29.

[26] At [90] (footnotes omitted).

[27] At [91].

[28] At [93].

[29] At [93].

[30] At [94].

[31] At [94].

[32] At [95].

[33] At [99].

[34] At [102].

[35] At [117].

[36] At [103].

[37] At [104].

[38] At [160].

[39] Under the Electricity (Hazards from Trees) Regulations 2003, trees must not encroach within prescribed distances from electrical conductors. However, the relevant distance in the present case was only 2.5 m. Regulation 40 provides that the Regulations do not affect claims that the owner of works may have against the owner of trees in respect of any damage caused to works by a tree owner.

[40] John Murphy The Law of Nuisance (Oxford University Press, Oxford, 2010) at [1.05].

[41] F H Newark “The Boundaries of Nuisance” (1949) 65 LQR 480.

[42] At 481 (footnote omitted).

[43] Bill Atkin “Nuisance” in Stephen Todd (ed) Todd on Torts (8th ed, Thomson Reuters, Wellington, 2019) 533 at [10.2.01].

[44] But see this Court’s reservations on the emanation requirement in BEMA Property Investments Ltd v Body Corporate 366611 [2017] NZCA 281, [2018] 2 NZLR 514 at [57] and n 72.

[45] Wu v Body Corporate 366611 [2014] NZSC 137, [2015] 1 NZLR 215. In Wu, the Supreme Court held there was an exception to the usual requirement for there to be a “emanation”. The Court found that liability in nuisance would have been established on the basis of the abrogation of the plaintiff’s “right of access” to his unit: at [131]. However, given the Court found liability established in trespass it did not conclude on liability in nuisance: at [132].

[46] Murphy, above n 40, at [1.05] and n 11, citing Adams v Ursell [1913] UKLawRpCh 5; [1913] 1 Ch 269; Wood v Conway Corp [1914] UKLawRpCh 105; [1914] 2 Ch 547 (CA); and Walter v Selfe [1851] EngR 335; (1851) 4 De G & Sm 315 (Ch).

[47] At [1.05] and n 12, citing Halsey v Esso Petroleum Ltd [1961] 1 WLR 683 (QB); Tetley v Chitty [1986] 1 All ER 663 (QB); Matania v National Provincial Board Bank Ltd [1936] 2 All ER 633 (CA); and Andreae v Selfridge & Co Ltd [1938] Ch 1 (CA).

[48] At [1.05] and n 13, citing Colls v Home & Colonial Stores Ltd [1904] AC 179 (HL).

[49] Vaughan v Menlove [1837] EngR 424; (1837) 3 Bing NC 468 (Comm Pleas).

[50] At 475. We note that the claim was advanced in negligence.

[51] Black v The Christchurch Finance Co Ltd [1894] AC 48 (PC).

[52] Balfour v Barty-King [1957] 1 QB 496 (CA) at 504.

[53] Conor Gearty “The Place of Private Nuisance in a Modern Law of Torts” [1989] 48 CLJ 214.

[54] At 220.

55 At 220.

[56] At 220–221 (footnotes omitted).

[57] Noble v Harrison [1926] 2 KB 332.

[58] At 336.

[59] At 342 (footnote omitted).

[60] Blake v Woolf [1898] UKLawRpKQB 148; [1898] 2 QB 426.

[61] Rickards v Lothian [1913] AC 263 (PC) at 280.

[62] Noble v Harrison, above n 56, at 343, quoting Blake v Woolf, above n 59, at 428.

[63] At 337–338 per Rowlatt J.

[64] At 338.

[65] Noble v Harrison, above n 56, at 341.

[66] Darroch v Caroll [1955] NZLR 997 (SC).

[67] At 1002.

[68] At 999.

[69] At 1001.

[70] Helson v Dear HC Wellington CP536/86, 25 October 1988. There had originally also been a claim in trespass but that was not pursued in the High Court.

[71] At 6.

[72] At 6.

[73] At 15.

[74] At 16.

[75] High Court judgment, above n 2, at [87(b)].

[76] Gearty, above n 53, at 220.

[77] Bamford v Turnley [1862] EngR 907; (1862) 3 B&S 66 (Exch) at 83.

[78] Sedleigh-Denfield v O’Callaghan [1940] UKHL 2; [1940] AC 880 (HL) at 903.

[79] Hunter v Canary Wharf Ltd [1997] AC 655 (HL) at 693.

[80] Southwark London Borough Council v Tanner [2001] 1 AC 1 (HL) at 20.

[81] Atkin, above n 43, at [10.2.03].

[82] St Helen’s Smelting Co v Tipping [1865] 11 HLC 642 (HL) at 650; Halsey v Esso Petroleum Co Ltd [1961] 1 WLR 683 (QB) at 691; and Clearlite Holdings Ltd v Auckland City Corp [1976] 2 NZLR 729 (SC) at 740.

[83] Clearlite Holdings Ltd v Auckland City Corp, above n 81, at 740.

[84] Cambridge Water Co v Eastern Counties Leather plc [1994] AC 264 (HL) at 299.

[85] At 299.

[86] Transco plc v Stockport Metropolitan Borough Council [2003] UKHL 61, [2004] 2 AC 1.

[87] At [26].

[88] At [26].

[89] Cambridge Water Co v Eastern Counties Leather plc, above n 83, at 300 (emphasis added).

[90] Transco plc v Stockport Metropolitan Borough Council, above n 85, at [26], citing Overseas Tankship (U.K.) Ltd v Miller Steamship Co Pty [1966] UKPC 1; [1967] 1 AC 617 (PC) [The Wagon Mound (No 2)].

[91] At [26], citing The Wagon Mound (No 2), above n 89, at 640.

[92] Cambridge Water Co v Eastern Counties Leather plc, above n 83, at 301.

[93] Hamilton v Papakura District Council [2000] 1 NZLR 265 (CA) at [75]–[76].

[94] See n 39 above.

[95] Electricity Act, s 2.

[96] See the discussion in Maria Hook “Strict liability in nuisance — a fork in the road” [2021] NZLJ 136.

[97] Northumbrian Water Ltd v Sir Robert McAlpine Ltd [2014] EWCA Civ 685, [2014] All ER (D) 157.

[98] At [19] and [25].

[99] PEX International Pte Ltd v Lim Seng Chye [2019] SGCA 82 at [53] and [55].

[100] Rylands v Fletcher, above n 9, at 279, as affirmed by the House of Lords in Rylands v Fletcher (1868) LR 3 HL 330 (HL).

[101] Rylands v Fletcher, above n 99, at 339.

[102] Burnie Port Authority v General Jones Pty Ltd [1994] HCA 13; (1994) 179 CLR 520 at 556–557, holding that the rule in Rylands v Fletcher was absorbed by the principles of ordinary negligence.

[103] Cambridge Water Co v Eastern Counties Leather plc, above n 83; and Transco plc v Stockport Metropolitan Borough Council, above n 85. But not Scotland: see RHM Bakeries (Scotland) Ltd v Strathclyde Regional Council 1985 SC 17 (HL) at 41.

[104] Hamilton v Papakura District Council, above n 92. This case resolved uncertainty about whether New Zealand courts would follow Cambridge Water Co v Eastern Counties Leather plc or Burnie Port Authority v General Jones Pty Ltd, following the judgment in Autex Industries Ltd v Auckland City Council [2000] NZAR 324 (CA).

[105] Cambridge Water Co v Eastern Counties Leather plc, above n 83, at 304.

[106] Frederick Pollock “Duties of Insuring Safety: The Rule in Rylands v Fletcher(1886) 2 LQR 52.

[107] Newark, above n 41.

[108] Transco plc v Stockport Metropolitan Borough Council, above n 85.

[109] Donal Nolan “The Distinctiveness of Rylands v Fletcher(2005) 121 LQR 421.

[110] Cambridge Water Co v Eastern Counties Leather plc, above n 83, at 299, per Lord Goff.

[111] Rickards v Lothian, above n 60, at 280.

[112] Transco plc v Stockport Metropolitan Borough Council, above n 85, at [11].

[113] At [11].

[114] High Court judgment, above n 2, at [93].

[115] Rickards v Lothian, above n 60, at 280.

[116] Transco plc v Stockport Metropolitan Borough Council, above n 85, at [11].

[117] High Court judgment, above n 2, at [103].

[118] At [106].


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