Matthews & Anor v Environment Agency [2002] EWLands LCA_192_2000 (28 May 2002)

Matthews & Anor v Environment Agency [2002] EWLands LCA_192_2000 (28 May 2002)

Compensation must be based on the best available evidence of business performance and reasonable projections of growth, with net profit calculated using a 30% margin and agreed growth rates. New income sources are included if sufficiently evidenced. Surveyors' fees are not strictly limited to Ryde's scale if higher fees are justified. Statutory interest runs from the date of entitlement. The claimants are awarded £613,583.98 in compensation.

Citation
[2002] EWLands LCA_192_2000
Parties
Claimant: Michael David Matthews; Claimant: Mandy Matthews; Compensating Authority: The Environment Agency
Jurisdiction
England and Wales
Judgment Date
28 May 2002
Procedural Posture
Compensation Claim Under Statutory Authority / Final Decision After Full Hearing
Outcome
Claim allowed in part. Compensation awarded to claimants.
Legal Topics
Statutory Compensation for Land Damage, Assessment of Loss of Profits, Capital Loss Valuation, Surveyors' Fees, Interest on Compensation, Evidentiary Standards for Business Loss, Valuation Methodology
Compensation Law Property Law Administrative Law Statutory Compensation for Land Damage Assessment of Loss of Profits Capital Loss Valuation Surveyors' Fees Interest on Compensation +2 more

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Parties

Michael David Matthews

Claimant

Mandy Matthews

Claimant

The Environment Agency

Compensating Authority

Procedural Posture

Compensation Claim Under Statutory Authority / Final Decision After Full Hearing

Legal Issues

  1. 1 What is the appropriate compensation for loss of profits and capital loss due to statutory sea defence works?
  2. 2 How should business growth and future income be assessed in the absence of formal accounts?
  3. 3 Are new sources of income and management time compensable?

Ratio Decidendi

Compensation must be based on the best available evidence of business performance and reasonable projections of growth, with net profit calculated using a 30% margin and agreed growth rates. New income sources are included if sufficiently evidenced. Surveyors' fees are not strictly limited to Ryde's scale if higher fees are justified. Statutory interest runs from the date of entitlement. The claimants are awarded £613,583.98 in compensation.

Court Disposition

Claim allowed in part. Compensation awarded to claimants.

Orders

  • The Environment Agency shall pay the claimants £613,583.98 as compensation for loss of profits, capital loss, management time, and surveyors' fees, less amounts already paid.
  • Statutory interest is payable from the relevant dates of entitlement.