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Hazell v. Hammersmith and Fulham London Borough Council and Ors; Hammersmith and Fulham London Borough Council v. Hazell and Ors

[1992] 2 AC 1
[1991] 1 All ER 545



(Judgment by: Lord Griffiths)

Between: Hazell - Appellant
And: Hammersmith and Fulham London Borough Council and Ors - Respondents
Between: Hammersmith and Fulham London Borough Council - Appellants
And: Hazell and Ors - Respondents
Conjoined appeals

Court:
House of Lords

Judges:
Lord Keith of Kinkel

Lord Brandon of Oakbrook

Lord Templeman

Lord Griffiths

Lord Ackner

Subject References:
LOCAL GOVERNMENT
Powers
Financial transactions
Council incorporated by Royal Charter entering into speculative financial transactions
Profitability depending on interest rates falling
Whether transactions within powers of council
Whether council's capital market fund valid

Legislative References:
London Government Act 1963 - (c. 33), s. 1
Local Government Act 1972 - (c. 70), s. 111
Local Government Finance Act 1982 - (c. 32), s. 19

Case References:
Attorney-General v. Great Eastern Railway Co. - (1880) 5 App.Cas. 473, H.L.(E.)
Attorney-General v. Mersey Railway Co. - [1907] A.C. 415, H.L.(E.)
Bonanza Creek Gold Mining Co. Ltd. v. The King - [1916] 1 A.C. 566, P.C.
Cotman v. Brougham - [1918] A.C. 514, H.L.(E.)
Holsworthy Urban District Council v. Holsworthy Rural District Council - [1907] 2 Ch. 62
Norwich Provident Insurance Society, In re (Bath's Case) - (1878) 8 Ch.D. 334, C.A
Riche v. Ashbury Railway Carriage and Iron Co. Ltd - (1874) L.R. 9 Ex. 224; (1875) L.R. 7 H.L. 653, H.L.(E.)
Rutter v. Chapman - (1841) 8 M. & W. 1
Small v. Smith - (1884) 10 App.Cas. 119, H.L.(Sc.)
Sutton's Hospital Case - (1612) 10 Co.Rep. 1
Wenlock (Baroness) v. River Dee Co. - (1885) 10 App.Cas. 354, H.L.(E.)
Associated Provincial Picture Houses Ltd. v. Wednesbury Corporation - [1948] 1 K.B. 223; [1947] 2 All E.R. 680, C.A.
Attorney-General v. Fulham Corporation - [1921] 1 Ch. 440
Attorney-General v. Leeds Corporation - [1929] 2 Ch. 291
Attorney-General v. London County Council - [1901] 1 Ch. 781, C.A.; [1902] A.C. 165, H.L.(E.)
Attorney-General v. Manchester Corporation - [1906] 1 Ch. 643
Attorney-General v. Newcastle upon Tyne Corporation - (1889) 23 Q.B.D. 492, C.A.; [1892] A.C. 568, H.L.(E.)
Attorney-General v. Smethwick Corporation - [1932] 1 Ch. 562, C.A.
Attorney-General for Ceylon v. Silva - [1953] A.C. 461, P.C.
Ayers v. South Australian Banking Co. - (1871) L.R. 3 P.C. 548, P.C.
Bar Hill Developments Ltd. v. South Cambridgeshire District Council - (1979) 252 E.G. 915, D.C.
Beauforte (Jon) (London) Ltd., In re - [1953] Ch. 131; [1953] 2 W.L.R. 465; [1953] 1 All E.R. 634
Bell Houses Ltd. v. City Wall Properties Ltd. - [1966] 2 Q.B. 656; [1966] 2 W.L.R. 1323; [1966] 2 All E.R. 674, C.A.
City Index Ltd. v. Leslie - The Times, 10 October 1990
Cudgen Rutile (No. 2) Pty. Ltd. v. Chalk - [1975] A.C. 520; [1975] 2 W.L.R. 1, P.C.
Cunliffe Brooks & Co. v. Blackburn and District Benefit Building Society - (1884) 9 App.Cas. 857, H.L.(E.)
Deuchar v. Gas Light and Coke Co. - [1925] A.C. 691, H.L.(E.)
Dickson v. Pharmaceutical Society of Great Britain - [1970] A.C. 403; [1968] 3 W.L.R. 286; [1968] 2 All E.R. 686, H.L.(E.)
Dundee Harbour Trustees v. D. & J. Nicol - [1915] A.C. 550, H.L.(Sc.)
Great Eastern Railway Co. v. Turner - (1872) L.R. 8 Ch.App. 149
Introductions Ltd. v. National Provincial Bank Ltd. - [1970] Ch. 199; [1969] 2 W.L.R. 791; [1969] 1 All E.R. 887, C.A.
McDowell v. Standard Oil Co. (New Jersey) - [1927] A.C. 632, H.L.(E.)
Manchester City Council v. Greater Manchester Metropolitan County Council - (1979) 78 L.G.R. 71, C.A; (1980) 78 L.G.R. 560, H.L.(E.)
Moffat v. Eden District Council - (unreported), 8 November 1988; Court of Appeal (Civil Division) Transcript No. 919 of 1988, C.A.
National Telephone Co. Ltd. v. Constables of St. Peter Port - [1900] A.C. 317, P.C.
New, In re - [1901] 2 Ch. 534, C.A.
Provident Mutual Life Assurance Association v. Derby City Council - [1981] 1 W.L.R. 173, H.L.(E.)
Reg. v. Greater London Council, Ex parte Burgess - [1978] I.C.R. 991, D.C.
Reg. v. Greater London Council, Ex parte Westminster City Council - The Times, 27 December 1984
Reg. v. Reed - (1880) 5 Q.B.D. 483, C.A.
Reg. v. Richmond upon Thames London Borough Council, Ex parte McCarthy & Stone (Developments) Ltd - [1992] 2 A.C. 48; [1990] 2 W.L.R. 1294; [1990] 2 All E.R. 852, C.A.
Reg. v. Wirrall Metropolitan Borough Council, Ex parte Milstead - (1989) 87 L.G.R. 601, D.C.
Rolled Steel Products (Holdings) Ltd. v. British Steel Corporation - [1986] Ch. 246; [1985] 2 W.L.R. 908; [1985] 3 All E.R. 52, C.A.
Seagram v. Knight - (1867) L.R. 2 Ch.App. 628
Sinclair v. Brougham - [1914] A.C. 398, H.L.(E.)
Smith v. Croft - [1987] B.C.L.C. 355
Stockdale v. Haringey London Borough Council - (1989) 88 L.G.R. 7, C.A.
Swain v. The Law Society - [1983] 1 A.C. 598; [1982] 3 W.L.R. 261; [1982] 2 All E.R. 827, H.L.(E.)
Triggs v. Staines Urban District Council - [1969] 1 Ch. 10; [1968] 2 W.L.R. 1433; [1968] 2 All E.R. 1
Turner v. Shearer - [1972] 1 W.L.R. 1387; [1973] 1 All E.R. 397, D.C.
Wenlock (Baroness) v. River Dee Co. - (1887) 36 Ch.D. 674
Westminster City Council, In re - [1986] A.C. 668; [1986] 2 W.L.R. 807; [1986] 2 All E.R. 278, H.L.(E.)
Wheeler v. Leicester City Council - [1985] A.C. 1054; [1985] 3 W.L.R. 335; [1985] 2 All E.R. 1106, H.L.(E.)

Hearing date: 10-11, 15-18, 22-23, 25, 29 October 1990, 5-6, 8, 12 November 1990
Judgment date: 24 January 1991


Judgment by:
Lord Griffiths

My Lords, for the reasons given in the speech of my noble and learned friend, Lord Templeman, I would allow these appeals and restore the orders of the Divisional Court.

Case Judgement
Table of contents
  Order
  Judgment by Lord Keith of Kinkel
  Judgment by Lord Brandon of Oakbrook
  Judgment by Lord Templeman
  Judgment by Lord Griffiths
  Judgment by Lord Ackner


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