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How do you assess damages when a neighbour has wrongfully
appropriated part of one’s property?
A recent Privy Counsel case involved some land in the West Indies where
one neighbour (the Prime Minister) wrongfully built on another neighbour’s
land. In assessing damages, the PC decided that the damages should
reflect the benefits enjoyed by the defendant – rather than simply the
claimant’s loss (ie the mere value of the land). Thus, the extra value added
to the defendant’s property should be taken into account, as well as the
fact that the defendant was not being forced to rebuild the party wall in the
correct place, whilst at the same time he will have had the use and
enjoyment of the land whilst the dispute was going to court. All of those
factors should be taken into account (ie it is not merely what the land is
worth to the dispossessed owner). Moreover, in the right circumstances,
aggravated damages may be awarded (if the neighbour goes ‘about the
building of his wall and the enhancement of his property in a high-handed
manner and with a cynical, if not total, disregard for the rights’ of the
neighbour). Horsford v Lester Bird [2006] UKPC 3.
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March 2006 |