Compulsory purchase orders (CPOs) allow organisations to obtain land or property often for development. As a result of a CPO, existing property owners or tenants may be displaced and compensation may be due. Where a business is being displaced, this compensation may be in respect of the loss of profits expected to be suffered or, in rare instances where a business is unable to relocate, compensation may be equivalent to the value of the business being extinguished by the development.

We can assist where businesses are being displaced, acting on behalf of the claimant (the business) or the defendant (such as a developer or local authority). We assist with both the preparation and assessment of claims, including the quantification of the losses incurred or value of a business. We also advise on settlement negotiations. Providing advice to both claimants and defendants means that we are able to anticipate and advise on the challenges that may be brought in respect of claims.

Case examples:

Assessment of claim for transforming business

Appointed by a development company to assess the merits of a claim made by a café owner under a compulsory purchaser order, to identify the additional information required in order to conclude on the amount of compensation payable and to advise on the areas for negotiation and possible settlement figures. The assessment was made more complex by the fact that the claimant was attempting to take the opportunity to transform their business from a café into a bar.

Assessment of claim for the closure of a branch

Appointed by a development company to assess the merits of the claim from a charity shop under a compulsory purchaser order, to identify the additional information required in order to conclude on the amount of compensation payable and to advise on the areas of negotiation and possible settlement figures. The assessment was complicated by the fact that the shop acted as a drop off location for donations which were sold at other shops and that the developer was conscious of the negative publicity of striking a hard bargain with a charity.

Assessment of impact of moving location

Appointed by a development company to assess the merits of the claim from an estate agent under a compulsory purchaser order and to identify the additional information required in order to conclude on the amount of compensation that should be offered. We were required to consider the feasibility and impact of a change of location on the profits of the estate agent.

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