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GAZETTE

JULY/AUGUST 1985

the 1970 Act and the High Court upheld

his contention and dismissed the

Plaintiffs claim. On appeal to the

Supreme Court it was HELD:—

1. Under the Rules of construction,

Statutes ought to be construed so as

to carry out the object sought to be

accomplished by them and a

reasonable construction of a Statute

should, if possible, prevail. Thus,

whilst there is no definition of the

word "provide" in the 1970 Health

Act, the object of the Health Act

section 6 is to make further and

better provision in relation to the

health of the people and this object

would certainly not be achieved if

the constructions contended by the

Plaintiff prevailed. The word

"provide" should be given its wider

meaning of supplying, not only a

structure, but also all the services

normally catered for in a hospital

and furthermore, the phrase

"provide and maintain" applies to

hospitals and institutions erected

prior to the passing of the Act of

1970 as well as subsequent to it.

2. The correct interpretation of Section

38(2) of the Health Act, 1970

empowered the Minister to require

the Board to provide or to maintain

existing premises or services but

does not empower the Minister to

direct the Board to discontinue

existing services. Accordingly the

Plaintiffs second contention must

succeed and the appeal be allowed.

Margaret Rose McMeel and Others -v-

The Minister for Health and the North

Eastern Health Board — Supreme Court

(per O'Higgins C.J., Hederman J.

concurring and Griffin J.), 19 December,

1984 — unreported.

Eugene O'Sullivan

ARBITRATION

Case stated by Arbitrator arising out of a

Compulsory Purchase Order — whether

arbitrator entitled to value lands on the

valuation date, 11 March, 1977 on the

assumption that parts II and IV of the Rent

Restrictions Act 1960 as amended were

invalid.

Limerick Co r p o r a t i on made a

Compulsory Purchase Order (The

Thomondgate No. 1 Area C.P.O., 1975)

which was confirmed on 21 December,

1975. A claim for compensation was

made by Ellen Read in respect of her fee

simple interest in nine separate plots the

subject matter of the C.P.O. Notice to

Treat was served on 11 March, 1977 and

the date of the Arbitration hearing was 9

March, 1982. At the date of the Notice to

Treat the premises on five of the plots

were held from the claimant on tenancies

controlled under part II and part IV of

the Rent Restrictions Acts 1960 to 1967 as

amended. It was admitted as a fact at the

Arbitration that on 11 March, 1977,

(being the valuation date for the purpose

of valuing the premises acquired under

the C.P.O. having regard to sections 79

and 84 of the Housing Act 1966) it was

not generally known or appreciated by

Auctioneers, Valuers or the general

public that the constitutionality of parts

II and IV of the Rent Restrictions Act

1960 as amended was likely to be called in

question and that sales and purchases as

of that time would have been conducted

on the assumption that the entire of the

Rent Acts were valid and operative.

The Arbitrator determined that if the

claimant's interest in the five premises

referred to on the valuation date was to be

valued as though parts II and IV of the

Rent Act 1960 were valid and in force as

of that date, the total valuation of the five

premises would have been £7,250.00. The

Arbitrator also determined that if he was

to value the same premises on the

assumption that the premises were not

subject to parts II and IV of the Rent

Restrictions Act 1960 as amended they

would have an additional total value of

£10,250.00.

On these findings the precise question

raised for determination by the High

Court was as follows:—

"Whether in respect of the relevant

premises I ought to value the

claimant's interest therein on the

valuation date as though parts II and

IV of the Rent Restrictions Act 1960 as

amended, were valid and in force at

that date."

The assessment of compensation in the

case fell to be decided in accordance with

the rules contained in section 2 of the

Acquisition of Land Assessment of

Compensation Act 1919. It was agreed by

Counsel that the only relevant or

applicable rule on the facts of the case was

rule (2) which is as follows:—

"The value of land shall subject as

hereinafter provided be taken to be the

amount which the land if sold in the

open market by a willing seller might

be expected to realise. Provided

always that the Arbitrator shall be

entitled to consider all returns and

assessments of capital value for

taxation made or acquiesced in by the

claimant."

It was submitted on behalf of the

acquiring authority that the sole function

of the Arbitrator having regard to the

provisions of the Act of 1919 was to

ascertain as a matter of fact what price

these lands would fetch if placed on an

open market by a willing seller on 11

March, 1977. The determination of that

fact, it was contended, would depend on

many factors, the demand for land in the

particular area, beliefs or speculations

in the minds of prospective purchasers as

to the future value of the land having

regard to development or expansions of

agriculture or building requirements and

xxiii

the common conception of people as to

legal restrictions or qualifications which

applied to the ownership of the land.

Having regard to that function it would,

it was submitted, be wholly artificial for

the Arbitrator to assume that prospective

purchasers would have foreseen in 1977

the eventual decision of the Supreme

Court that parts II and IV of the Rent

Restrictions Act 1960 were unconstitu-

tional. To do so, it was urged, would be to

value the land not as was provided by the

statutory provision as of 11 March, 1977,

but rather as of and in the conditions

prevailing at the date of the hearing of the

Ar b i t r a t i o n. In support of this

submission reliance was placed on the

judgment of the Supreme Court in

Re:

Murphy

[1977] I.R. 243 where Henchy J.,

at page 249 stated (

inter alia):

"The date on which compensation is

to be assessed for land compulsorily

acquired under the Housing Act 1966

is the date of the service of the Notice

to Treat, under section 84(1) of that

Act."

Reliance was also placed on the

decision of Kenny J. in

Dolan

-v-

Neligan

[1967] I.R. 247 where at page 260 he

stated

inter alia,

"In the

Kiriri Cotton

case

Lord Denning who gave the advice of the

Privy Council said at page 246 of the

report, 'It is not correct to say that

everyone is presumed to know the law.

The true proposition is that no man can

excuse himself from doing his duty by

saying he did not know the law on the

matter.

Ignorantia juris neminem

excusat."

This statement of the law in the instant

case was accepted as being correct and in

the context of the issues before the Court

indicated that for the Arbitrator to value

the lands as of 11 March, 1977 without

regard to the fact as conceded at the

Arbitration that all material people then

believed the Rent Act of 1960 to be

operative and valid would be to presume

a knowledge of the law in general which is

inconsistent with this principle.

The submissions on behalf of the

claimant relied on the case of

Blake and

Ors.

-v-

Madigan and Ors.

[1982] I.R. 117,

in which the Supreme Court held that the

entire of parts II and IV of the Rent

Restrictions Act 1960 were invalid as

being repugnant to the Constitution. It

was further submitted that in the

reference of the Housing (Private Rented

Dwellings) Bill, 1981, reported in [1981]

I.L.R.M. at page 246 judgment of the

Court delivered by the Chief Justice

referring to the decision in

Blake and Ors.

-v-

Madigan and Ors.

at page 252 of the

report expressly states that it was a

finding that parts II and IV of the Rent

Restrictions Act 1960 were void

ab initio.

The argument continued that in the

decision of the majority of the Court on

the second issue arising in

Murphy

-v-

The

Attorney General

[1982], I.R. page 241, it

was clearly held that the finding of

invalidity in regard to a statute held by