Rank Leisure & Ors v Castle Vale Housing Action Trust [2001] EWLands ACQ_168_1999 (13 August 2001)

Rank Leisure & Ors v Castle Vale Housing Action Trust [2001] EWLands ACQ_168_1999 (13 August 2001)

The Tribunal found that in the no scheme world, there would not have been a developer assembling the site or paying ransom value for the claimants' interests. The obstacles to redevelopment (multiple interests, need for vacant possession, rehousing, etc.) would have deterred private developers. Any development value was created by the acquiring authority's scheme and must be disregarded under the Pointe Gourde principle and section 6 of the Land Compensation Act 1961. Compensation is therefore limited to existing use value plus disturbance, as assessed by the acquiring authority.

Citation
[2001] EWLands ACQ_168_1999
Parties
Claimants: Rank Leisure & Others; Acquiring Authority: Castle Vale Housing Action Trust
Jurisdiction
England and Wales
Judgment Date
13 August 2001
Procedural Posture
Compensation for Compulsory Acquisition (lands Tribunal Reference) / Final Determination of Compensation After Hearing
Outcome
Claimants' case for ransom/development value rejected; compensation awarded on authority's figures.
Legal Topics
Compensation Assessment, Compulsory Acquisition of Leasehold Interests, Land Compensation Act 1961, Valuation in No Scheme World, Ransom Value, Disturbance Compensation
Compulsory Purchase Land Law Property Law Compensation Assessment Compulsory Acquisition of Leasehold Interests Land Compensation Act 1961 Valuation in No Scheme World Ransom Value +1 more

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Parties

Rank Leisure & Others

Claimants

Castle Vale Housing Action Trust

Acquiring Authority

Procedural Posture

Compensation for Compulsory Acquisition (lands Tribunal Reference) / Final Determination of Compensation After Hearing

Legal Issues

  1. 1 Whether compensation for compulsory acquisition of leasehold shop units should include ransom or development value in the 'no scheme world'
  2. 2 Whether such value existed independently of the acquiring authority's redevelopment scheme
  3. 3 Proper basis for compensation assessment under Land Compensation Act 1961 and related statutes

Ratio Decidendi

The Tribunal found that in the no scheme world, there would not have been a developer assembling the site or paying ransom value for the claimants' interests. The obstacles to redevelopment (multiple interests, need for vacant possession, rehousing, etc.) would have deterred private developers. Any development value was created by the acquiring authority's scheme and must be disregarded under the Pointe Gourde principle and section 6 of the Land Compensation Act 1961. Compensation is therefore limited to existing use value plus disturbance, as assessed by the acquiring authority.

Court Disposition

Claimants' case for ransom/development value rejected; compensation awarded on authority's figures.

Orders

  • Compensation for each claimant to be paid as per the acquiring authority's assessment: Units 40/41 (£7,000), 44 (£20,000), 46 (£10,000), 51 (£20,000), 3 (£3,300), 21 (£35,000), 25 (£12,000).