Over Taylor Biggs

The Coal Mining Subsidence Act 1991 provides for compensation for repairs and recovery of depreciation in value.  In the case in question, two brothers owned numbers 14-16 of a terrace in which numbers 18-20 had suffered severe subsidence damage.  Numbers 18-20 were acquired by the Coal Authority for eventual demolition.  The brothers claimed that although not directly affected by subsidence, the actual damage caused to 18-20 rendered 14-16 unsaleable.

The Arbitrator, to whom the issue had first been referred, had decided that 18-20 were affected through loss of value directly attributable to the damage to 14-16.  His decision was appealed to the High Court that ruled that in the absence of any physical damage, no claim could be sustained as this was pure economic loss.

There was some sympathy for the affected brothers.  Doubt was expressed that physical subsidence could suddenly stop at an unconnected line of terraced houses.  However, the absence of physical damage to the brothers' houses was a finding that the Arbitrator had reached and it was not open to the Court to challenge that finding.

Claims for pure economic loss have always proved notoriously difficult to sustain and this case reconfirms the difficulty.  For the brothers to succeed Parliament would need to amend the 1991 Act. 

On acquiring property it remains difficult to establish whether adjoining property has been adversely affected by subsidence.  Following this High Court decision affected owners will find no assistance from the Coal Authority if property is blighted but not actually affected by physical damage.

The Coal Authority v Davidson and Davidson [2008]