DESCRIPTIVE RUBRIC

Disputed compensation – voluntary reference – former brickworks acquired in furtherance of scheme for rehabilitation of site and adjoining land – mineral values – Certificate of Appropriate Alternative Development – hypothetical scheme for extraction of various minerals and landfill use.

S B C Properties Limited v Midlothian Council
19/11/2002
LTS/VR/2001/2

Missives for sale of the subjects of appeal, following intimation of compulsory purchase, provided for determination of compensation under the Land Compensation Acts. The subjects were a derelict site which formerly comprised a brickworks and which was acquired in furtherance of a scheme for the rehabilitation of the site and some adjoining land. The applicants had obtained a Certificate of Appropriate Alternative Development in respect of certain mineral workings, subject to certain conditions. They sought compensation, in addition to the value of the land, in respect of mineral values on the basis of a hypothetical scheme for extraction of various minerals and landfill use. The respondents contended that there was no separate mineral value. Parties agreed the value of the land on alternative bases depending whether any mineral value was established.

Held (1) The applicants were not in the circumstances of the case entitled to rely on the prospect of obtaining planning permission which, in the view of the Tribunal, went well beyond the planning permission which was to be assumed on the basis of the Certificate; and

(2) In any event, various uncertainties and difficulties, particularly in relation to the saleability of clay and sand and the prospects of obtaining a licence for opencast coal mining, taken together with the combination of necessary further investigation, planning procedures and site administration (the cost of none of which was quantified) ruled out any serious interest in purchasing the mineral rights at a site of this size, there also being no evidence of comparable values of mineral rights as opposed to royalty and wayleave rates.

The tribunal accordingly determined the price under the missives at the relevant date at £15,000, the value agreed in the event of no mineral value being established.

No authorities referred to.


See full decision:  LTS/VR/2001/2