Sceneout Ltd v Central Manchester Development Corporation
Sceneout Ltd v Central Manchester Development Corporation
- 1995
- Estates Gazette (1995) 34 EG 75-85 (11) .
LT 4 November 1995. The plaintiff (S) owned a laundry business in a designated urban development area. In 1992 the defendant (C) took possession of the premises. Although it was agreed that compensation should be based on total extinguishment of the company, S also sought compensation for the permanent loss of goodwill based on the multiplier of 3 years purchase of the annual adjusted profits. S contended that there was no principle that required the loss of goodwill to be based upon the value to the owner. The court decided the proper measure of compensation is the value of what is lost to the owner and in this case the value of the business to S was likely to have been greater than its market value.
APPROPRIATE YEARS PURCHASE
COMPENSATION
Compulsory purchase
EXTINGUISHMENT OF BUSINESS
GOODWILL
LAUNDRY BUSINESS
LOSS OF GOODWILL
MARKET VALUE
SCENEOUT V CENTRAL MANCHESTER DEVELOPMENT CORPORATION
URBAN DEVELOPMENT AREA
LT 4 November 1995. The plaintiff (S) owned a laundry business in a designated urban development area. In 1992 the defendant (C) took possession of the premises. Although it was agreed that compensation should be based on total extinguishment of the company, S also sought compensation for the permanent loss of goodwill based on the multiplier of 3 years purchase of the annual adjusted profits. S contended that there was no principle that required the loss of goodwill to be based upon the value to the owner. The court decided the proper measure of compensation is the value of what is lost to the owner and in this case the value of the business to S was likely to have been greater than its market value.
APPROPRIATE YEARS PURCHASE
COMPENSATION
Compulsory purchase
EXTINGUISHMENT OF BUSINESS
GOODWILL
LAUNDRY BUSINESS
LOSS OF GOODWILL
MARKET VALUE
SCENEOUT V CENTRAL MANCHESTER DEVELOPMENT CORPORATION
URBAN DEVELOPMENT AREA