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Heading
Case No: LC-2023-404
IN THE MATTER OF A NOTICE OF REFERENCE
2 May 2025
TRIBUNALS, COURTS AND ENFORCEMENT ACT 2007
COMPENSATION – COMPULSORY PURCHASE – loss of profits – site of production of railway sleepers – past and future profits and/or losses in the real world and the “no scheme world” – interim decision
BETWEEN:
CEMEX UK OPERATIONS LIMITED
Claimant
-and-
SECRETARY OF STATE FOR TRANSPORT
Compensating Authority
Land at Washwood Heath,
Aston Church Road,
Birmingham,
West Midlands,
B8 1QF
Upper Tribunal Judge Elizabeth Cooke and Mr Peter D McCrea OBE FRICS FCIArb
27, 29, 30 January, 3,10-14 February, 3-4 March 2025
Royal Courts of Justice
Michael Humphries KC, Rebecca Clutten and Daisy Noble, instructed by Bryan Cave Leighton Paisner LLP, for the claimant
Richard Glover KC, Cain Ormondroyd and Brendan Brett, instructed by DLA Piper LLP, for the compensating authority
© CROWN COPYRIGHT 2025
The following cases were referred to in this decision:
Bishopsgate Space Management Ltd v London Underground Ltd [2004] 2 EGLR 175
- Heading
- Introduction
- The legal background
- The factual background
- The supply and demand for sleepers in Great Britain
- The Washwood Heath factory
- Local Distribution Centres and the rail network
- Contracts and tenders
- The P3 procurement exercise and contract
- The issues in the appeal
- Issue 1(1): the volume of sleepers required by NR to date in the real world and the no scheme world
- The authority’s case about NR’s requirement to date
- The claimant’s position about NR’s requirement to date
- Discussion and conclusions on NR’s requirement to date
- Issue 1(2): NR’s future requirement for sleepers in the real world and the NSW
- The background to future demand
- The claimant’s case about future requirement
- The authority’s case about future requirement
- Discussion and conclusion about future requirement
- Issue 2: the duration of the claimant’s business in the real world and the no scheme world
- Conclusions about the real world
- Issue 3: the terms of the extension contracts from April 2017 to April 2020
- Market share and MGV
- Price in the short-term contracts
- Market share
- Issue 4: the terms of the P3 contract in the no scheme world
- Price in the P3 contract in the no scheme world
- Would there have been an MGV in the P3 contract in the no scheme
- Market share during the P3 contract in the no scheme world
- The Area B problem
- Conclusions