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Wards Construction (Medway) v Barclays Bank plc

Compulsory purchase compensation — Acquisition of land to provide access to development land — Award of £2.15m by Lands Tribunal — Whether tribunal failed to apply Pointe Gourde principle — Whether tribunal wrongly applied Stokes principle

In 1982
planning permission was granted for the erection of 1,750 dwellings in four
phases on land subject to a condition that no dwellings within phase two should
be occupied until certain off-site road works were completed. In 1983 the
developers entered into an agreement with Kent County Council by which the
county council would make road improvements enabling the planning condition to
be complied with and providing that the developers would bear 65% of the land
acquisition costs. The county council acquired two parcels of land from HB, the
claimant, 0.86 acre under a compulsory purchase order (‘the order land’) and
0.97 acre (‘the adjoining land’) in consequence of a notice to acquire under
section 53 of the Land Compensation Act 1973. In 1987 the Lands Tribunal awarded
the claimant £500,000 for the order land and £150,000 for the adjoining land.
Following an appeal by way of a case stated, the Court of Appeal remitted the
claim to the tribunal: see Batchelor v Kent County Council [1990]
1 EGLR 32; the tribunal heard further evidence and awarded the claimant £2.15m
for the order land and £10,000 for the adjoining land: see Batchelor v Kent
County Council
[1992] 1 EGLR 217. The claimant appealed. On the application
of the appellant, Wards Construction (Medway) Ltd (‘Wards’), being the original
developer liable to make the 65% contribution to the county council, the
tribunal eventually agreed to state a case to the Court of Appeal. A further
order was made substituting Barclays Bank plc in the place of the claimant in
the claimant’s appeal. Wards contended that the tribunal failed to have proper
regard to the Pointe Gourde principle and included in the award an
increase in the value of the order land which was entirely due to the scheme
underlying the acquisition; it also erred in applying the principle in Stokes
v Cambridge Corporation (1961) 180 EG 839. In the claimant’s appeal
it was contended that the award for the order land should have been £3.583m on
the ground that the relevant development scheme was not a multi-access site.

Held: Both appeals were dismissed.

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