Margaret Jones v Welsh Government
[2024] UKUT 316 (LC)
Castlefield Property Limited v National Highways Ltd
19 September 2023
[2023] UKUT 217 (LC)
Upper Tribunal
The government took some land blocking access to a pub. The pub owners sued because getting a new access was difficult and slow. The judge decided the government had to pay the pub owners for the loss of the old access and all the extra costs and delays caused by the problems with the new access.
Key Facts
- •Compulsory acquisition of land providing sole access to the Cheshire Lounge pub.
- •Acquiring authority (National Highways) rerouted access to facilitate highway improvements.
- •Claimant (Castlefield Property Ltd) acquired the pub and its compensation rights after the land was taken.
- •Negotiations for replacement access with adjoining landowner (Tatton Estate) were unsuccessful.
- •Claim for injurious affection of retained land and other compensation (holding costs, access improvements).
- •Open market value of the reference land: £25,000.
Legal Principles
Compensation for injurious affection of land not directly acquired.
Section 7, Compulsory Purchase Act 1965
Assessment of compensation based on the value of the retained land before and after severance, at the valuation date.
Compulsory Purchase Act 1965
Landowner cannot increase the burden of compensation on the acquiring authority.
Dawson v Great Northern and City Railway Company [1905] 1 KB 260
Valuation should consider all matters known or anticipated at the valuation date, or which would have been known or anticipated by a reasonably prudent purchaser.
This decision, rejecting Waterworth v Bolton MBC (1979) 37 P&CR 104
Principle of equivalence: Landowner should receive compensation fully reflecting actual loss.
This decision
Outcomes
£25,000 compensation for the value of the land taken (section 5(2), Land Compensation Act 1961).
Agreed between the parties.
£1,875 statutory loss payment (section 33A, Land Compensation Act 1973).
Agreed between the parties.
£90,000 compensation for disturbance (section 5(6), 1961 Act).
Agreed between the parties.
£360,000 compensation for injurious affection.
Tribunal's own valuation considering the less convenient access and lack of easement certainty at the valuation date.
£560,626 compensation under rule 6 (access improvements, pre-reference costs, cost of money).
Detailed breakdown considering evidence from various experts and parties' submissions.
Total compensation: £947,501.
Sum of all awarded compensation items, including interest and deducting advance payment.