Welford & Ors v EDF Energy Networks (LPN) Plc [2006] EWLands LCA_30_2004 (10 March 2006)

Welford & Ors v EDF Energy Networks (LPN) Plc [2006] EWLands LCA_30_2004 (10 March 2006)

The Tribunal held that compensation under the Electricity Act 1989 Schedule 4 para 7 should be assessed in accordance with established compulsory purchase principles, including value of the wayleave, injurious affection, and disturbance. Diminution in value may be assessed for both sites A and B where appropriate. The claim for loss of profits as disturbance is not excluded solely because the use had not commenced at the relevant date, provided it was a use that would have been lawfully enjoyed but for the presence of the cables.

Citation
[2006] EWLands LCA_30_2004
Parties
Claimant: Terence Welford; Claimant: Colin Phillips; Claimant: IOD Skip Hire Limited; Compensating Authority: EDF Energy Networks (LPN) Plc
Jurisdiction
England and Wales
Judgment Date
10 March 2006
Procedural Posture
Compensation Reference and Arbitration / Interim Decision on Preliminary Issues
Outcome
Interim decision on preliminary issues; compensation for value of wayleaves and injurious affection determined; entitlement to disturbance (loss of profits) not excluded as a matter of law but subject to further factual determination.
Legal Topics
Statutory Wayleaves, Injurious Affection, Disturbance Compensation, Valuation Methods, Loss of Profits, Mitigation of Loss

Case Brief

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Parties

Terence Welford

Claimant

Colin Phillips

Claimant

IOD Skip Hire Limited

Claimant

EDF Energy Networks (LPN) Plc

Compensating Authority

Procedural Posture

Compensation Reference and Arbitration / Interim Decision on Preliminary Issues

  1. 1 Whether the claim for loss of profits falls within the scope of the Electricity Act 1989 Schedule 4 paragraph 7
  2. 2 Whether the evidence establishes the factual assumptions underlying the loss of profits claim
  3. 3 Whether diminution in value should be assessed for site A alone or both sites A and B

Ratio Decidendi

The Tribunal held that compensation under the Electricity Act 1989 Schedule 4 para 7 should be assessed in accordance with established compulsory purchase principles, including value of the wayleave, injurious affection, and disturbance. Diminution in value may be assessed for both sites A and B where appropriate. The claim for loss of profits as disturbance is not excluded solely because the use had not commenced at the relevant date, provided it was a use that would have been lawfully enjoyed but for the presence of the cables.

Court Disposition

Interim decision on preliminary issues; compensation for value of wayleaves and injurious affection determined; entitlement to disturbance (loss of profits) not excluded as a matter of law but subject to further factual determination.

Orders

  • Compensation for value of wayleaves awarded at £2,360.
  • Diminution in value of land to be assessed for both sites A and B where appropriate.