Case No. UKUT-0269-(LC)

4.Prior to the hearing, the Council had helpfully prepared a draft statement of facts and issues to be determined which was submitted to the claimants, but despite several attempts to elicit their agreement, no response was received. Nevertheless, the contents do not appear to me to be controversial, and from this document together with the claim, the Council’s statement of case and its expert evidence, I find the following facts 5.The reference land comprised, at 4 Station Street, a predominantly brick and part rendered two-storey commercial unit consisting of, at ground floor, a hot food takeaway trading as “Marmaris Kebab and Pizza House” that contained a retail sales area and serving counter together with a preparation area. An open staircase led to the first floor which contained a kitchen/food preparation area along with a walk-in cold store. A wc and staff amenity area was located off the landing. The building, which had a net internal floor area of 106 sq m (1,141 sq ft) was believed to have been constructed in the 1960s. It had subsequently been extended, particularly to the rear to create 4A Station Street. This was a basically constructed single storey warehouse/garage unit approached over a narrow entrance lane and small yard (suitable only for small vehicles) to the east of No. 4. It was constructed of brick with a mono-pitch roof corrugated roof over a steel frame and other than mains electricity had no services connected. Although physically attached to No. 4, the buildings were not interlinking and were thus capable of separate occupation, however it should be assumed that the occupier of 4A would need to have use of the wc facilities and water supply in No.4. No. 4A was suitable for secondary retail sales or other quasi-commercial uses such as a small repair shop. The net internal area was 95 sq m (1,024 sq ft).6.The premises were located on the north-west edge of Blyth town centre in a predominantly tertiary retail zone and adjacent to residential areas lying to the north and north-west. There was a Council owned public car park immediately next door to the reference land to the west and three small shops to the east (fronting Regent Street) which had consisted of a Pizza King takeaway, a musical instrument shop and a mobile phone shop trading as The Phone Doctor. All three of those units ceased trading between 2005 and 2010. Within the vicinity there was also a florist, a veterinary surgery, furniture shop, hairdresser and a frozen food store together with a cycle shop, sandwich bar and a taxi office.7.The freehold of the reference land was owned by the first claimant, Mr Mustafa Behic who purchased it on 27 March 2007 for £50,000. No.4 was said to be subject to a lease (which has not been produced) to Mermer Ltd (the second claimant), the Company that ran the takeaway and of which the freeholder’s wife Susan was the sole director. The first claimant was an employee of the Company. The third claimant, Mr Orhan Behic (Mr Mustafa Behic’s son), held a lease of No.4A and operated a retail unit known as “Bits & Bobs & The Phone Shop” in addition to, according to the claim document, also being employed by the second claimant.8.In February 2008, the first claimant attended a meeting at which the Council’s regeneration proposals for the area were explained, and was advised that it was intended to acquire all the land required by agreement wherever possible. The Council’s intentions were then confirmed to the claimants in writing and, following an inspection of the reference land by its agents, Sanderson Weatherall (“SW”) at which, according to the Council’s expert, Mr Behic advised that he was not interested in receiving an offer for the land), an offer of £115,000 was nevertheless made in February 2009. There having been no response, the offer was re-issued in July 2009. Following that, and a recommendation by “SW” that he appoint a surveyor to act on his behalf, the first claimant engaged Mr Alistair McGillivray of John McGillivray, Chartered Surveyors. Unsuccessful negotiations then ensued between January and May 2010. The CPO was made on 9 July 2010, and an objection was lodged by the first claimant in August 2010. In that month, Mr McGillivray advised that he was no longer acting. In September 2010 SW provided the claimants directly with details of potentially suitable premises for the relocation of the claimants’ businesses. 9.Following notification on 12 October 2010 from Rook Matthews Sayer (“RMS”) that they had been appointed to act as the claimants’ agents, and that a claim for compensation in accordance with the provisions of the Land Compensation Act 1961 would be forthcoming, SW provided them with schedules of potential relocation sites that were available in the market. This was updated in January 2011. The first claimant attended the public inquiry into the CPO in March 2011. In April 2011, the first claimant was advised that if the CPO was confirmed, possession of the reference land would be required on or around 31 January 2012. The CPO was confirmed by the Secretary of State on 3 June 2011 and on 22 June the Council’s notification of its intention to execute a General Vesting Declaration (“GVD”) was served. 10.During the CPO process, discussions had continued between the claimants’ agents and the Council particularly in respect of a site on the corner of King Street and Regent Street, Blyth, a few yards away from the reference land, which was partly owned by the Council, and partly in private ownership. The Council subsequently advised that it was prepared to dispose of its part for the construction of two retail units subject to planning permission and other matters being resolved, and provided details of the private owner so that the claimants could contact them direct. Eventually RMS advised SW that the proposed scheme was not financially viable and negotiations in that regard terminated. 11.The GVD was made on 18 October 2011 and the reference land formally vested in the acquiring authority on 31 January 2012 (which is the valuation date for the purposes of this reference). Although a request for a short extension to the claimants’ occupation was agreed in principal subject to a tenancy at will being formally entered, the documentation was not completed and possession was finally obtained by forced entry on 6 February 2012 – the claimants stating at that time that they would not be removing any of the catering or other equipment or the remaining stock at No.4A – this all subsequently being sold at auction by the Council. 12.A formal claim for compensation was eventually made by RMS on 15 March 2013 without supporting evidence. On 8 July 2013, the first claimant advised the Council that he had dis-instructed RMS and, also, that he “did not want any further meetings with his solicitors” who at the time were Bond Dickinson, Newcastle upon Tyne.13.The Notice of Reference was eventually made by the Council on 16 September 2015 together with a brief statement of issues which noted that a formal claim for compensation had yet to be received from the claimants. A response was filed by the first claimant on 28 October 2015 together with a statement of case and a claim amounting to £301,306.40 plus a basic loss payment calculated (incorrectly) at £12,000. The Council’s statement of case in reply was filed on 11 December 2015. In an email to the Tribunal dated 8 February 2017 the Council’s solicitors pointed out that neither its statement of case nor Ms McLoughlin’s expert witness report of 15 February 2016 had dealt with the claims by the second and third claimants. Permission was thus sought to formally join the second and third claimants to the reference, to file an amended statement of case, and submit a brief supplementary expert report to cover these claims. Permission was granted by an Order dated 16 February 2017 and the relevant documents were filed and served on 27 and 28 February 2017 respectively.