Telegraph Service Stations Ltd v Trafford Borough Council & Anor [2000] EWLands ACQ_163_1996 (24 May 2000)

Telegraph Service Stations Ltd v Trafford Borough Council & Anor [2000] EWLands ACQ_163_1996 (24 May 2000)

The Tribunal determined compensation based on a three-year average throughput (1991 adjusted, 1992, 1993), with a 7.5% reduction for risk of competition from a new planning permission and a 30% reduction for the claimant's pricing policy. The capital value method was preferred, using local comparables, and the Tribunal found the property would have attracted a major oil company as purchaser. Redevelopment was not commercially viable at the valuation date. Accountancy evidence did not materially affect the outcome. Compensation was set at £1,753,375 plus disturbance and costs.

Citation
[2000] EWLands ACQ_163_1996
Parties
Claimant: Telegraph Service Stations Limited; Acquiring Authority: Trafford Borough Council; Acquiring Authority (successor to Trafford Park Development Corporation): The Commission for the New Towns (North)
Jurisdiction
England and Wales
Judgment Date
24 May 2000
Procedural Posture
Compulsory Purchase Compensation Reference / Final Determination and Costs Order
Outcome
Compensation awarded to claimant; costs and interest ordered against acquiring authorities.
Legal Topics
Compensation Assessment, Valuation Methodology, Disturbance Compensation, Interest on Compensation, Costs in Tribunal Proceedings
Compulsory Purchase Land Valuation Property Law Compensation Assessment Valuation Methodology Disturbance Compensation Interest on Compensation Costs in Tribunal Proceedings

Case Brief

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Parties

Telegraph Service Stations Limited

Claimant

Trafford Borough Council

Acquiring Authority

The Commission for the New Towns (North)

Acquiring Authority (successor to Trafford Park Development Corporation)

Procedural Posture

Compulsory Purchase Compensation Reference / Final Determination and Costs Order

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 based on a three-year average throughput (1991 adjusted, 1992, 1993), with a 7.5% reduction for risk of competition from a new planning permission and a 30% reduction for the claimant's pricing policy. The capital value method was preferred, using local comparables, and the Tribunal found the property would have attracted a major oil company as purchaser. Redevelopment was not commercially viable at the valuation date. Accountancy evidence did not materially affect the outcome. Compensation was set at £1,753,375 plus disturbance and costs.

Court Disposition

Compensation awarded to claimant; costs and interest ordered against acquiring authorities.

Orders

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