The landowner had developed land which was then made the subject of compulsory purchase. The court was asked how the compensation was to be calculated. The landowner expected to sell the development as a whole. The respondent argued that the profit which a purchaser would build into that purchase should affect the compensation.
Held: The land was to be valued as a single whole. It was to be calculated as a disturbance loss under 5(6) rather than 5(2).
Judges:
Lord Justice Mance Vice-Chancellor, The Vice-Chancellor Lord Justice Carnwath
Citations:
[2004] EWCA Civ 232, Gazette 25-Mar-2004
Links:
Statutes:
Land Compensation Act 1961 5(2) 5(6)
Jurisdiction:
England and Wales
Citing:
Cited – Director of Buildings and Lands v Shun Fung Ironworks Ltd PC 20-Feb-1995
Compensation is payable for losses properly anticipating resumption of possession of the land. The principle of equivalence gives rise to the statutory right to interest under section 11(1). The council explained the conceptual foundation of the . .
Cited – Kashif Mallick v Liverpool City Council CA 14-Jul-1999
Where payment of compensation for the compulsory purchase of land was delayed, the interest set down by the Act as prescribed from time to time was the only compensation payable for that delay. The claimant’s losses in this case by way of loss of . .
Cited – Pastoral Finance Association v The Minister 1914
. .
Cited – Gray v Inland Revenue Commissioners CA 24-Feb-1994
Partnership interests in a tenanted freehold estate can be valued together. The court considered the ‘statutory hypothetical sale’ when valuing property for Inheritance Tax purposes: ‘The property must be assumed to have been capable of sale in the . .
Cited – D M’Ewing and Sons v Renfrewshire County Council 1960
. .
Cited – Horn v Sunderland Corporation CA 1941
Compulsory Purchase Damages limited to Actual Loss
Rule (6) was designed to preserve the effect of the 19th Century case-law under the 1845 Act, by which personal loss caused by the compulsory acquisition was treated as part of the value to the owner of the land: ‘the owner in a proper case – that . .
Lists of cited by and citing cases may be incomplete.
Land, Damages
Updated: 28 April 2022; Ref: scu.194289