‘Chance missed for light rights ruling’

Developer Highcross, the owner of Toronto Square in Leeds, had been appealing against a court order which found for Marcus Heaney, the owner of a neighbouring property who argued the building obstructed his ‘rights of light’.

The High Court injunction compelled Highcross to pull down a significant part of their two-storey extension, which was completed in 2009, but the parties reached an agreement last week ahead of the appeal hearing.

John Foster, a partner at Shulmans Solicitors in Leeds, said that although the settlement was a major cost saving for the parties involved, it was a “huge loss” to the development world which was waiting for an authoritative view on a question about rights of light.

He said: “In this case the buildings, separated by Toronto Street, are not unusually close, but the consequences for Highcross of not solving the issue in advance were calamitous. The details of the issue were massively technical, but ultimately turned on the question of whether or not financial recompense could be adequately assessed, and represented a suitable alternative to pulling down the extension.”

He added: “Who knows what the Court of Appeal would have decided? Certainly the development world and the legal profession would have had a clear, view on this difficult question. Many, but perhaps not Mr Heaney, were hoping for the moderation of an extremely harsh outcome from the High Court, an outcome that is likely to make much needed urban regeneration, particularly in Leeds, even more difficult and costly to achieve.

“For now, and for the foreseeable future, the message to developers is that they simply must not ignore the existence of windows in any building adjoining their development site.”

Meanwhile, Toronto Square has secured two new clients. Franklin Templeton Global Investors has taken 3,317 sq ft on the second floor and 2,490 sq ft on the fourth floor has been taken by The Bridge IT. Both lettings have been secured on 10-year leases at rents of up to £24 a sq ft.