Mercury Taverns Plc v Coventry City Council [2003] EWLands ACQ_3_2002 (17 April 2003)

Mercury Taverns Plc v Coventry City Council [2003] EWLands ACQ_3_2002 (17 April 2003)

The Tribunal found that the decline in trade at the Smithfield Hotel after March/April 1999 was attributable to the impending compulsory acquisition and not to unusual competition. The appropriate valuation should disregard the decline in trade and be based on the fair maintainable turnover prior to the effect of the scheme. The claimant's valuation of £800,000 was accepted as the open market value.

Citation
[2003] EWLands ACQ_3_2002
Parties
Claimant: Mercury Taverns Plc; Acquiring Authority: Coventry City Council
Jurisdiction
England and Wales
Judgment Date
17 April 2003
Procedural Posture
Compulsory Purchase Compensation Reference / Final Determination of Compensation and Costs
Outcome
Compensation of £800,000 awarded to the claimant for the freehold and long leasehold interests in the Smithfield Hotel. The claimant to recover 70% of its costs of the reference from the acquiring authority.
Legal Topics
Compensation for Compulsory Acquisition, Valuation of Public House, Effect of Competition on Valuation, Disturbance Compensation, Costs in Lands Tribunal
Compulsory Purchase Land Valuation Property Law Compensation for Compulsory Acquisition Valuation of Public House Effect of Competition on Valuation Disturbance Compensation Costs in Lands Tribunal

Case Brief

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Parties

Mercury Taverns Plc

Claimant

Coventry City Council

Acquiring Authority

Procedural Posture

Compulsory Purchase Compensation Reference / Final Determination of Compensation and Costs

Legal Issues

  1. 1 What is the open market value of the claimant's interest in the Smithfield Hotel at the valuation date?
  2. 2 Should the decline in trade prior to acquisition be attributed to competition or the effect of the compulsory purchase scheme?
  3. 3 What is the appropriate compensation for the compulsory acquisition of the property?

Ratio Decidendi

The Tribunal found that the decline in trade at the Smithfield Hotel after March/April 1999 was attributable to the impending compulsory acquisition and not to unusual competition. The appropriate valuation should disregard the decline in trade and be based on the fair maintainable turnover prior to the effect of the scheme. The claimant's valuation of £800,000 was accepted as the open market value.

Court Disposition

Compensation of £800,000 awarded to the claimant for the freehold and long leasehold interests in the Smithfield Hotel. The claimant to recover 70% of its costs of the reference from the acquiring authority.

Orders

  • Acquiring authority to pay £800,000 compensation to claimant for the property interests.
  • Compensation for disturbance (amount agreed) payable in addition.