A combined planning and litigation team from Squire Sanders in Leeds has successfully acted for Greater London Authority on the first major decision to establish the level of compensation for land compulsorily acquired to build the Olympic village at Stratford in East London. The decision sets the base line for compensation awards relating to the Olympic site and clarifies the approach that will be adopted when valuing the development potential of land in the future. This may have particular relevance for landowners and businesses affected by High Speed 2 (HS2).
The case, Halpern, Gladwell, Clearun Limited & Dominion Mosaic & Tile Company Limited v Greater London Authority, involved a multimillion pound claim against Greater London Authority for compensation for the development value of the land as well as disruption to the company operating on the site.
The Squire Sanders team which advised Greater London Authority was led by director of compulsory purchase, Philip Maude, assisted by Russell Kelsall and David Holland.
Mr. Maude said: “A claim can include profits lost before the land is acquired if it can be shown the loss was caused by the compulsory acquisition. However, evidence must be provided to support those losses as compensation will not be awarded without evidence which satisfies the burden of proof.”
“This is an important lesson for the future, which may be helpful to landowners and businesses affected by the proposed HS2 route. Although HS2 may not come into operation until 2030, those affected need to consider how to protect their position now. Losses incurred before land is compulsorily acquired may be recoverable and businesses must maintain sufficient and adequate records to capture details of any loss of profits that may occur as a result of disruption caused by HS2.”
Squire Sanders’ planning team advises clients from both the private and the public sectors, including energy and utility companies, local authorities, food retailers, football clubs, and commercial, residential and leisure developers. The team is instructed on major development projects all around the country, including nationally significant infrastructure projects, urban regeneration schemes, commercial, industrial and residential developments, and retail schemes.