Peter McHugh*


Specialist in commercial contract disputes

Case Study 4

A £12m Compulsory Purchase Order Dispute

The Problem

A recreational centre claimed compensation for compulsory purchase of land which had been taken by the Secretary of State for Transport for the construction and widening of a road.  The recreational centre claimed compensation for the market value of its interest in the land taken, as well as injurious affection to its retained land.

The claim amounted to in excess of £12m.  The claim was vigorously opposed by the Secretary of State, especially the injurious affection claim, which, it said, was lacking supporting evidence.  The loss of profit claim was supported by expert evidence and said to flow from the road widening scheme.

The Solution

The dispute was settled by way of mediation, with both sides agreeing a figure which would compromise the dispute.

The Benefit

The matter was resolved by way of a two day mediation saving the considerable costs of a 12 day hearing at the Upper Tribunal (Lands Chamber).