BP Oil UK Ltd must wait to hear whether it has succeeded in its Appeal Court attempt to revive a compensation claim in respect of the compulsory purchase of part of a former petrol filling station in Herne Bay.
BP is challenging a Lands Tribunal decision that its compensation claim against Kent County Council over the compulsory acquisition of the former Link Service Station, on Pigeon Lane, off Eddington Roundabout, Thanet Way, Herne Bay, had been brought out of time.
In a preliminary hearing, the tribunal had dismissed the claim on the basis that the six-year time limit for commencing proceedings had elapsed.
The compulsory purchase order was made in March 1992, and confirmed in October 1994, for the purpose of highway improvement works.
Following the service of a notice to treat and a notice of entry, the council entered onto the land on 8 August 1995. In February 1996, the parties reached a written agreement under which BP agreed to yield up possession of the land and the council agreed to pay compensation for the value of land taken, severance/injurious affection and disturbance, including temporary loss of profits, if any, together with legal costs.
In June 1996, the council informed BP that the CPO plan had been incorrectly drawn and that they needed to take more land than that shown on the plan.
BP agreed to proceed on the basis of the revised plan, but subsequently, in January 2002, it issued compensation proceedings.
The council argued before the tribunal that the six-year time limit ran from the council’s date of entry onto the land – August 1995 – and that the claim had therefore been brought out of time.
The tribunal backed the council’s argument and dismissed BP’s claim, ruling that the council had clearly taken possession of the land in August 1995.
It rejected BP’s argument that the 1996 agreement rendered inadmissible any evidence that possession had been taken before February 1996, and that lawful entry had not actually occurred until November 1996.
BP is now asking the Court of Appeal to overturn that decision, and to reinstate its compensation claim. The court has reserved its decision and is expected to give it in writing within the next month.
BP Oil Uk Ltd v Kent County Council Court of Appeal (Kennedy, Mummery and Carnwath LLJ) 10 June 2003.
References: PLS News 10/6/03