Lopian Wagner Commercial Solicitors in Manchester successfully acted for a Landlord and one of its employees in relation to a prosecution both against the landlord company and the individual brought by Hyndburn Borough Council in the Magistrates Court in relation to two prosecutions brought under the Town & Country Planning Act.

The Local Authority required work to be carried out to a vacant property which the landlord had previously hoped to re-develop.  Unfortunately as a result of the recession the landlord could not do so and the property, which was a church, came into disrepair.  The Local Authority subsequently served Notice upon the company for work to be carried out but due to lack of funds the company was unable to comply with those requirements. 

Following an initial prosecution before the Magistrates at which the company pleaded guilty the Local Authority brought further prosecutions against both the company and one of its employees citing a continued failure to comply with the Notice.  However, as a District Judge sitting in the Magistrates Court agreed, due to the company’s financial position it was unable to comply with the Notice and accordingly could not be guilty of the offence. Further that as a result of the failure of the prosecution against the company, its employee could also not be guilty of any offence. In effect the Local Authority could not “pierce the corporate veil” and require the Directors or Shareholders to pay money into the company.

Costs were also awarded in favour of the company and the employee.

The case was interesting as it is now common for Local Authorities to prosecute property owners in respect of the Town & Country Planning Act to carry out repairs to landmark buildings or which the failure to repair impacts negatively on the local community.

Should you require any advice in relation to these type of prosecutions please contact Lucy Holland on lholland@lopianwagner.co.uk.