Welford & Orsv EDF Energy Networks (LPN) PLC [2008] EWLands LCA_30_2004 (25 November 2008)

Welford & Orsv EDF Energy Networks (LPN) PLC [2008] EWLands LCA_30_2004 (25 November 2008)

The Tribunal determined compensation for loss of profits by applying an 80% sales rate to the no-scheme world, using the respondent's gross profit margin, and deducting 1% for uncertainty due to landfill tax effects. The annual running cost of the waste transfer station was set at £177,464. The capital cost adjustment for unbuilt works was set at £168,211. Interest was awarded on a simple basis, with a three-year reduction for claimant delay, and statutory rates applied.

Citation
[2008] 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
25 November 2008
Procedural Posture
Compensation Reference Under Electricity Act 1989 and Arbitration Agreement / Decision on Quantum
Outcome
Compensation awarded to claimants for loss of profits, with deductions and adjustments as specified; interest awarded on a simple basis with reduction for delay.
Legal Topics
Statutory Wayleaves, Disturbance Compensation, Loss of Profits, Interest on Compensation, Assessment of Damages
Compensation Law Property Law Arbitration Statutory Wayleaves Disturbance Compensation Loss of Profits Interest on Compensation Assessment of Damages

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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 Under Electricity Act 1989 and Arbitration Agreement / Decision on Quantum

Legal Issues

  1. 1 Assessment of lost profits for disturbance compensation
  2. 2 Appropriate gross profit margin for lost sales
  3. 3 Annual cost of operating a waste transfer station

Ratio Decidendi

The Tribunal determined compensation for loss of profits by applying an 80% sales rate to the no-scheme world, using the respondent's gross profit margin, and deducting 1% for uncertainty due to landfill tax effects. The annual running cost of the waste transfer station was set at £177,464. The capital cost adjustment for unbuilt works was set at £168,211. Interest was awarded on a simple basis, with a three-year reduction for claimant delay, and statutory rates applied.

Court Disposition

Compensation awarded to claimants for loss of profits, with deductions and adjustments as specified; interest awarded on a simple basis with reduction for delay.

Orders

  • Accountancy experts to agree total compensation and interest; if not, to submit statements of difference within 21 days.
  • If compensation agreed, submissions on costs to be exchanged within 21 days and comments within 14 days thereafter.