Halil v London Borough of Lambeth [2001] EWLands ACQ_105_1999 (02 March 2001)

Halil v London Borough of Lambeth [2001] EWLands ACQ_105_1999 (02 March 2001)

Compensation for total extinguishment of a protected tenant's business following compulsory acquisition is to be calculated as three times the average adjusted net profit, with no deduction for the wife's earnings (as she was not an employee but a partner in the business), and no deduction for depreciation given the minimal and aged capital employed. The multiplier of 3 reflects the value to the claimant, his age, business stability, and inability to re-establish elsewhere.

Citation
[2001] EWLands ACQ_105_1999
Parties
Claimant: Ali Kamuran Halil; Acquiring Authority: London Borough of Lambeth
Jurisdiction
England and Wales
Judgment Date
02 March 2001
Procedural Posture
Compulsory Acquisition Compensation Reference / Final Determination and Costs Order
Outcome
claim allowed
Legal Topics
Compulsory Acquisition of Leasehold, Business Extinguishment, Disturbance Compensation, Valuation of Business, Treatment of Spouse's Earnings, Depreciation of Capital Assets, Application of Multiplier, Protected Tenancy, Land Compensation Act 1973 S46 and S47, Landlord and Tenant Act 1954
Compulsory Purchase Land Law Compensation Law Compulsory Acquisition of Leasehold Business Extinguishment Disturbance Compensation Valuation of Business Treatment of Spouse's Earnings +5 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 14 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Ali Kamuran Halil

Claimant

London Borough of Lambeth

Acquiring Authority

Procedural Posture

Compulsory Acquisition Compensation Reference / Final Determination and Costs Order

Legal Issues

  1. 1 Appropriate compensation for disturbance on total extinguishment of business following compulsory acquisition
  2. 2 Treatment of claimant's wife's earnings in business valuation
  3. 3 Treatment of depreciation of capital assets in profit calculation

Ratio Decidendi

Compensation for total extinguishment of a protected tenant's business following compulsory acquisition is to be calculated as three times the average adjusted net profit, with no deduction for the wife's earnings (as she was not an employee but a partner in the business), and no deduction for depreciation given the minimal and aged capital employed. The multiplier of 3 reflects the value to the claimant, his age, business stability, and inability to re-establish elsewhere.

Court Disposition

claim allowed

Orders

  • Acquiring authority to pay claimant compensation for disturbance in the sum of £73,176.
  • Acquiring authority to pay claimant's costs of the reference, less costs associated with specified interim applications, to be agreed or assessed on the standard basis.