Sainsbury’s v Tesco development dispute opens in High Court

The High Court will hear a dispute between Sainsbury’s and Tesco over which one of them should develop land in Wolverhampton, in which both have an interest. The supermarket giants want the court to rule on the lawfulness of a January 2008 decision by Wolverhampton City Council to approve in principle a compulsory purchase order to (CPO) forcing Sainsbury’s to sell its 86% share of the Raglan Street site to Tesco. Wolverhampton planners had found that Tesco’s plans to redevelop the nearby dilapidated Royal Hospital site as part of its successful bid, providing 100 homes and new offices, was “decisive” in its decision to approve the CPO in principle. In submissions before Elias J, Christopher Lockhart-Mummery QC, counsel for Sainsbury’s, argued that the decision to use CPO powers was unlawful for three reasons, namely: (i) the council had no power to acquire land for the purpose of facilitating the development of an unrelated site; (ii) it had taken into account immaterial considerations – namely the benefits of securing development of an unrelated site; and (iii) it’s decision was predetermined. At the end of the two-day hearingm, Elias J is expected to reserve judgment.