Optical Express (Southern) Ltd v Birmingham City Council [2005] EWLands ACQ_109_2002 (11 April 2005)

Optical Express (Southern) Ltd v Birmingham City Council [2005] EWLands ACQ_109_2002 (11 April 2005)

The scheme underlying the acquisition is limited to the redevelopment and refurbishment of Martineau Square (Martineau Phase 1) and works to the Bull Street hump, not including the Bull Ring or Martineau Phase 2. Compensation for pre-possession loss is only recoverable for the period January to March 2000, when the scheme directly affected trading. The appropriate measure of compensation is based on the actual decline in turnover and contribution during this period, not the entire year. Future loss of profits is to be assessed on a total extinguishment basis, using a conservative approach to valuation and disregarding effects of the scheme.

Citation
[2005] EWLands ACQ_109_2002
Parties
Claimant: Optical Express (Southern) Limited; Acquiring Authority: Birmingham City Council
Jurisdiction
England and Wales
Judgment Date
11 April 2005
Procedural Posture
Compensation Reference (lands Tribunal) / Final Determination of Compensation After Compulsory Acquisition
Outcome
Compensation awarded to claimant
Legal Topics
Disturbance Compensation, Compulsory Acquisition of Leasehold, Assessment of Loss of Profits, Valuation Methodology, Effect of Scheme on Compensation, Pre Possession Loss, Future Loss of Profits
Compulsory Purchase Land Law Compensation Law Disturbance Compensation Compulsory Acquisition of Leasehold Assessment of Loss of Profits Valuation Methodology Effect of Scheme on Compensation +2 more

Case Brief

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Parties

Optical Express (Southern) Limited

Claimant

Birmingham City Council

Acquiring Authority

Procedural Posture

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

Legal Issues

  1. 1 What is the correct identification of the 'scheme' underlying the compulsory acquisition for compensation purposes?
  2. 2 What is the appropriate compensation for pre-possession loss of profits?
  3. 3 How should future loss of profits be assessed and valued?

Ratio Decidendi

The scheme underlying the acquisition is limited to the redevelopment and refurbishment of Martineau Square (Martineau Phase 1) and works to the Bull Street hump, not including the Bull Ring or Martineau Phase 2. Compensation for pre-possession loss is only recoverable for the period January to March 2000, when the scheme directly affected trading. The appropriate measure of compensation is based on the actual decline in turnover and contribution during this period, not the entire year. Future loss of profits is to be assessed on a total extinguishment basis, using a conservative approach to valuation and disregarding effects of the scheme.

Court Disposition

Compensation awarded to claimant

Orders

  • Compensation of £570,920 awarded to Optical Express (Southern) Limited for the compulsory acquisition of the leasehold shop at 14 Martineau Way, Birmingham.