Telegraph Service Stations Ltd v Trafford Borough Council & Anor [2000] EWLands ACQ_162_1996 (24 May 2000)

Telegraph Service Stations Ltd v Trafford Borough Council & Anor [2000] EWLands ACQ_162_1996 (24 May 2000)

The Tribunal determined compensation by calculating the adjusted core volume of petrol sales based on the three most representative years (1991 adjusted, 1992, 1993), applying a 7.5% reduction for the risk of competition from a new station with planning permission, and a 30% reduction for the claimant's pricing policy. The capital value method was preferred, using local comparables, and redevelopment was found not commercially viable. Accountancy evidence was not material to the final valuation. Compensation was set at £1,753,375 plus disturbance and costs.

Citation
[2000] EWLands ACQ_162_1996
Parties
Claimant: Telegraph Service Stations Limited; Acquiring Authority: Trafford Borough Council; Acquiring Authority: The Commission for the New Towns (North)
Jurisdiction
England and Wales
Judgment Date
24 May 2000
Procedural Posture
Compulsory Purchase Compensation Reference / Final Decision After Full Hearing
Outcome
Compensation awarded to claimant
Legal Topics
Compensation Assessment, Valuation Methodology, Disturbance Compensation, Comparable Sales, Planning Permission Impact, Pricing Policy Adjustment
Compulsory Purchase Land Valuation Property Law Compensation Assessment Valuation Methodology Disturbance Compensation Comparable Sales Planning Permission Impact +1 more

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Parties

Telegraph Service Stations Limited

Claimant

Trafford Borough Council

Acquiring Authority

The Commission for the New Towns (North)

Acquiring Authority

Procedural Posture

Compulsory Purchase Compensation Reference / Final Decision After Full Hearing

Legal Issues

  1. 1 Which years should be used to determine actual throughput for valuation?
  2. 2 What reduction should be applied for planning permission for a competing station?
  3. 3 What reduction should be applied for the claimant's pricing policy?

Ratio Decidendi

The Tribunal determined compensation by calculating the adjusted core volume of petrol sales based on the three most representative years (1991 adjusted, 1992, 1993), applying a 7.5% reduction for the risk of competition from a new station with planning permission, and a 30% reduction for the claimant's pricing policy. The capital value method was preferred, using local comparables, and redevelopment was found not commercially viable. Accountancy evidence was not material to the final valuation. Compensation was set at £1,753,375 plus disturbance and costs.

Court Disposition

Compensation awarded to claimant

Orders

  • Acquiring authorities to pay compensation of £1,753,375 to claimant
  • Acquiring authorities to pay disturbance compensation of £20,000