Castlefield Property Limited v National Highways Ltd

Castlefield Property Limited v National Highways Ltd

Compensation for injurious affection is to be assessed by determining the open market value of the retained land immediately before and after severance, as at the valuation date, taking into account only matters known or reasonably anticipated at that date. The Tribunal found a 10% reduction for less convenient access and a 20% reduction for uncertainty over easement rights, resulting in a total diminution of 30%. The Tribunal also awarded compensation for necessary works to the new access, pre-reference costs, and holding costs (cost of money) at 5% over the period of delayed development, rejecting claims for business rates and excessive works. The aggregate compensation was assessed at...

Parties
Claimant: Castlefield Property Limited; Acquiring Authority: National Highways Ltd
Jurisdiction
England and Wales
Judgment Date
19 September 2023
Procedural Posture
Compulsory Purchase Compensation Reference / Final Judgment
Outcome
Claim allowed in part
Legal Topics
Injurious Affection, Compulsory Acquisition, Land Valuation, Disturbance Compensation, Access Rights
Compulsory Purchase Land Law Compensation Law Injurious Affection Compulsory Acquisition Land Valuation Disturbance Compensation Access Rights

Case Brief

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Parties

Castlefield Property Limited

Claimant

National Highways Ltd

Acquiring Authority

Procedural Posture

Compulsory Purchase Compensation Reference / Final Judgment

Legal Issues

  1. 1 Proper assessment of compensation for injurious affection under section 7, Compulsory Purchase Act 1965
  2. 2 Appropriate valuation methodology for development land affected by compulsory purchase
  3. 3 Entitlement to compensation for disturbance and holding costs due to delayed access rights

Ratio Decidendi

Compensation for injurious affection is to be assessed by determining the open market value of the retained land immediately before and after severance, as at the valuation date, taking into account only matters known or reasonably anticipated at that date. The Tribunal found a 10% reduction for less convenient access and a 20% reduction for uncertainty over easement rights, resulting in a total diminution of 30%. The Tribunal also awarded compensation for necessary works to the new access, pre-reference costs, and holding costs (cost of money) at 5% over the period of delayed development, rejecting claims for business rates and excessive works. The aggregate compensation was assessed at...

Court Disposition

Claim allowed in part

Orders

  • National Highways to pay Castlefield Property Limited compensation totalling £947,501, subject to statutory interest and deduction of advance payment.
  • National Highways to provide a deed of easement over the new access on agreed terms or acquire the necessary land and grant rights to the claimant.