Pennington v Burnley Borough Council [2003] EWLands ACQ_102_2002 (14 March 2003)

Pennington v Burnley Borough Council [2003] EWLands ACQ_102_2002 (14 March 2003)

Compensation must be assessed on the basis of total extinguishment where relocation is impracticable and no reasonable businessman would have relocated under the circumstances. The claimants had a bona fide intention to relocate but were unable to do so due to lack of suitable premises and insufficient time. The acquiring authority's conduct and late offer justified an award of costs to the claimants.

Citation
[2003] EWLands ACQ_102_2002
Parties
Claimants: Mark Pennington & Alice Pennington; Acquiring Authority: Burnley Borough Council
Jurisdiction
England and Wales
Judgment Date
14 March 2003
Procedural Posture
Compensation Claim Under Compulsory Acquisition / Final Determination by Lands Tribunal
Outcome
Compensation awarded to claimants for total extinguishment of business; costs awarded to claimants.
Legal Topics
Disturbance Compensation, Business Extinguishment, Valuation of Freehold, Costs in Tribunal Proceedings
Property Law Compulsory Purchase Compensation Disturbance Compensation Business Extinguishment Valuation of Freehold Costs in Tribunal Proceedings

Case Brief

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Parties

Mark Pennington & Alice Pennington

Claimants

Burnley Borough Council

Acquiring Authority

Procedural Posture

Compensation Claim Under Compulsory Acquisition / Final Determination by Lands Tribunal

Legal Issues

  1. 1 Whether disturbance should be assessed on basis of total extinguishment or relocation of business
  2. 2 Valuation of freehold interest and business
  3. 3 Appropriateness of solicitor's fees claimed

Ratio Decidendi

Compensation must be assessed on the basis of total extinguishment where relocation is impracticable and no reasonable businessman would have relocated under the circumstances. The claimants had a bona fide intention to relocate but were unable to do so due to lack of suitable premises and insufficient time. The acquiring authority's conduct and late offer justified an award of costs to the claimants.

Court Disposition

Compensation awarded to claimants for total extinguishment of business; costs awarded to claimants.

Orders

  • Acquiring authority to pay compensation of £63,840 to claimants.
  • Acquiring authority to pay claimants' costs, subject to detailed assessment by Registrar if not agreed.