Neighbour disputes can lead to financial disaster

A restaurant owner has been presented with a bill for £160,000 following a dispute with his neighbour over a small patch of lawn. Marcus Brown says the case shows how seemingly trivial disagreements can snowball out of all proportion had have devastating effects.

There's something about neighbour disputes that will make many people dig their heels in and fight to the bitter end to prove they are right - even if it leads to financial disaster.

It's hard to see how someone could pursue a case all the way to the Court of Appeal when the only thing a stake was a tony area of lawn. Had the restaurant owner won he would have gained an extra few yards of garden. Instead he lost and was ordered to pay costs leaving him with a massive bill.

Such cases are not uncommon, prompting Lord Justice Mummery to say recently that "there are too many calamitous neighbour disputes in the courts".

It doesn't have to be that way. If people can overcome the rest mist of emotion that sometimes envelopes them in these situations they would see that it's usually much better to talk than to run to the courts.

The most common dispute arise over things such as boundaries, shared amenities and access to carry out repairs. The law has something to say on all of them but it's probably best to tread lightly at first so any disagreement can be resolved amicably.

Make sure you always check the legal position before you dig your heels in. For example, you may not want your neighbour to come on to your land to carry out repairs but he may be entitled to do so if a legal right of entry is specified in the property's legal documents. Even if there is no automatic entitlement he can still apply to the county court for an access order allowing him to enter your land.

Boundary disputes can often be resolved simply by referring to the title of lease documents. If they are not clear then it may be necessary to call in a solicitor or surveyor who should be able to help you reach a sensible solution.

The same applies to shared amenities such as drains and pipes, driveways and roofs. Your right to use them and your responsibility to maintain them should be laid down in the property's legal documents. The situation may be more complicated if a person's right to use a facility such as a chimney, for example, to erect an aerial is not written down but has become established though long and continuous use. If that use has not been challenged over the years then it could become an entitlement.

The best way to deal with neighbour disputes is to prevent them happening in the first place. You don't have to love your neighbour but it does help to at least talk to him in a polite and civilised way.

If that doesn't work then there are still things you can do before heading for the courts.

Lord Justice Mummery urged people to use mediation with the help of specialists such as solicitors and surveyors. This has several advantages.

It will be far cheaper than court action and less stressful. Trained mediators can help bring both parties together to negotiate a settlement that is fair to both sides. This is particularly important in neighbour disputes because you may go on living next door to each other for several years. It helps to maintain a civilised relationship and avoid disputes in future.

For more information please contact Marcus Brown on 0115 947 0641 or email mbrown@andersonssolicitors.co.uk

Businesses facing ‘a blizzard of fresh red tape and taxes’

Red tape has long been a thorn in the side of small businesses and despite numerous efforts to reduce the burden, somehow it just seems to keep getting worse.

The much vaunted Legislative and Regulatory Reform Act 2006 was supposed to make life easier for businesses and save £12bn over ten years. There have been some improvements no doubt, but overall, the general impression is that the burden is increasing - and it seems there are even greater problems just around the corner.

New research carried out by the British Chamber of Commerce (BCC) claims that employment regulations will cost UK businesses £25.6bn over the next four years.

The BCC refers to a "blizzard of fresh red tape and taxes" coming into effect between April this year and April 2014. Some of the more costly new laws include the Equality Bill which the BCC believes will have a one-off cost to business of £190m.

There is also the Agency Workers Directive which will create an annual recurring cost of £1.5bn from 2011, and the 2012 Pensions Reform which will create an annual cost of £4.8bn.

The BCC fears the cost of complying with the new regulations could deter companies who want to create jobs. That fear is given extra urgency because of research by the Federation of Small Businesses (FSB) which shows that many firms are choosing not to expand because of concerns over complex regulations.

A survey of its members showed 27% of those who wanted to expand did not go ahead because they are afraid of tackling the regulations involved. The same survey revealed that half of businesses planning to downsize or close said their decision was strongly influenced by regulatory burdens.

The FSB has also called on the Government to put a freeze on all new regulations - a move it estimates would help create 258,000 jobs and prevent a further 55,000 from being lost.

The Government has given no indication that it is prepared to introduce a freeze although it says it has saved businesses £3bn a year through its programme to simplify regulations and remove unnecessary paperwork.

In spite of this, small businesses are spending a total of £12bn a year on complying with various regulations, according to research by the Forum of Private Business (FPB).

A recent FPB survey of its members shows that employers in small to medium sized firms are spending an average of 37 hours a month on compliance.

Employment law provides the greatest challenge and costs small businesses £2.4bn a year dealing with issues such as dismissals and redundancy, discipline, absence controls and management, parental leave and holidays.

Health and safety administration costs £1.2bn and small firms also find themselves bogged down in tax administration, building and property regulations, and equality and diversity.

The costs seem enormous when quoted in this way and it's not surprising that many firms will try to save money by dealing with these issues in-house, or even by ignoring them and hoping they go away. However, it is usually safer and more cost-effective to get good legal advice to ensure that compliance matters are dealt with quickly and correctly.

This can save money in the long term and reduce the risk of creating problems unnecessarily - particularly in the area of employment law where failure to follow the correct procedures can lead to costly tribunal claims.

For more information contact Peter Sutherland on 0115 988 6714.