Welford & Ors v EDF Energy Networks (LPN).

This was an appeal to the Court of Appeal from the Lands Tribunal arising out of an interim decision of the Lands Tribunal. The case related to the grant by the Secretary of State of electricity wayleaves to allow the retention of electricity cables across the Claimants’ Land. The Claimants sought to use the land as a waste transfer station and claimed that their business was delayed from starting as a result of the electricity cables and as a result claimed a disturbance payment for loss of profits of £3.8m. London Electricity was infact granted a statutory wayleave under the Electricity Act 1989, Schedule 4 in order that the cables could remain. Consequently the respondents built the transfer station on a different site. The claimants claimed, and obtained, compensation in respect of the statutory wayleaves, diminution in value to adjoining land and losses of profit incurred after the date of the removal notice. EDF, that had suceeded to London Electricity, appealed to the Court of Appeal on the grounds that a loss of profit claim was too remote. The Court of Appeal held that profits from a business that had not been commenced would generally be regarded as too remote. However, a claim for a loss of profit is admissible where: 1 The business gives the land an additional value that was not reflected in the compensation for land taken; 2 The business was in existence at the valuation date; 3 The owner has made an investment in the land for the purpose of the business; 4 The owner has commenced work in connection with the business. Therefore, the appeal has been dismissed, as the Lands Tribunal had been right to conclude that a loss of profits could be claimed.