Earl Cadogan v Betul Erkman
Decision date: 11 April 2011
Neutral citation: [2011] UKUT 90 (LC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal reheard cross‑appeals from the LVT about the price and a restrictive covenant for collective enfranchisement of 42 Cadogan Square. The Tribunal upheld most of the LVT’s valuation approach, fixed the total premium at £2,220,000 (apportioned largely to the freehold), rejected asserted amalgamation value for lack of evidence, and imposed a tightened user covenant short of requiring occupation as a single family. Procedural points included allowing the freeholder to raise an amalgamation point at rehearing but finding the asserted additional value unproven.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
A rehearing tribunal can permit a point not raised before the LVT where there is no prejudice and the appeal proceeds by way of rehearing, but the party raising it must prove any additional element of value with adequate evidence; and, under Schedule 7(1)(c)(ii), a material enhancement of value may be established by general impression rather than precise quantification, yet there must still be evidence showing a likely monetary uplift.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The judgment warns against inferring hidden value from vigorous pursuit of enfranchisement and cautions tribunals not to fill evidential gaps by conjecture. It also flags, for future consideration, whether valuers should treat a flat served with a section 42 notice as subject to the rights/obligations under that notice or only to the fact a notice was served.