Disturbance

The following is a brief statement of the relevant compensation law; it is not a comprehensive guide, for specific enquiries contact Property Taxation Specialists.

• The right to disturbance comes from Rule [6] of section 5 LCA 1961. There is no statutory definition, and the onus of proof is placed squarely on the claimant.
• Disturbance is any loss suffered by a dispossessed owner, or legal occupier, providing;
  • It is a natural and reasonable consequence of the compulsory acquisition.
  • It is not too remote.
  • The claimant has acted reasonably to try and mitigate his loss.
• As with all compensation issues this is a complex matter, many items can be considered to claimable, but the right of the claimant to claim them will depend on the circumstances of each case.
• It used to be thought that that market value of the business i.e. that payable as compensation on its total extinguishment form the “ceiling" to the amount payable as disturbance, since the “Shun Feng Ironworks” case, this is not necessarily the case.
• Items which may be claimable, under the heading of disturbance, include;
  • Legal costs and stamp duty payable for a replacement property.
  • Survey and replacement property finding costs.
  • Valuation and negotiation fees.
  • Travelling expenses.
  • Finance or bridging loan costs.
  • Trade disturbance, temporary loss of profits, recruitment and redundancy costs [more normally in total extinguishment].
  • Advertising new location costs, new letterheads and stationery costs.
  • Double overheads incurred, moving costs.
  • Specialist professional advice and surveyor’s fees.
  • A claimants own time, expended on the case.
• Where the acquisition results in total extinguishment of the business [which in certain circumstances can be imposed on the claimant] additional payments associated with the total loss may be made.
• Where any dispossession takes place disturbance may be payable, including blight and purchase notice cases.
• Disturbance compensation is also payable by a public body where a Notice to Treat is withdrawn but claimants have incurred costs.
• For services provided by Property Taxation Specialists in detail seeCompulsory Purchase Services.