Iceland Foods Ltd occupied a shop in the District Centre at Speke, on the outskirts of Liverpool. The shop was a strong performer for the company, but the area had been in decline for many years and redevelopment was urgently needed.
Liverpool City Council promoted a scheme to demolish the existing District Centre and replace it with a new one closer to Speke Boulevard. The new centre was to be anchored by an 82,000 sq ft Morrison's superstore, and there would be a further 40,000 sq ft of new retail space provided, together with new community facilities.
A Compulsory Purchase Order was promoted in order to assemble the site. The phasing of the scheme involved the new centre being built before the old one was demolished. This meant that Iceland was in danger of being left in a position where it would lose its long established business in Speke. Mason Owen objected to the proposals on the client's behalf and was involved in negotiations which contributed to an agreement being reached with the developer.
Under the agreement Iceland acquired a replacement shop in the new Centre, and received an interim contribution of £500,000 towards the cost of fitting it out and relocating. In addition the right to further compensation for loss of profits was reserved.
The new shop opened in July 2007, but after a year of trading it became apparent that profitability had reduced significantly as a result of increased overheads and competition. Mason Owen initiated a claim for permanent loss of profits and attempted to enter into negotiations with the City Council.
After several months with no progress, Iceland referred the claim to the Lands Tribunal (now the Upper Tribunal, Lands Chamber) for determination. Mason Owen was an integral part of Iceland's professional team, working with the client and its lawyers and accountants, under the direction of a leading QC, to formulate the claim and prepare the necessary Witness Statements and reports.
Eventually, with a March 2011 tribunal hearing looming, a settlement was reached and Iceland received a further payment of £1.7 million, plus interest and costs, in compensation for the permanent loss of profit it had suffered as the result of the compulsory acquisition of its shop.