Case Study: Loss of Profits – do not give up!
Roger Hannah & Co represented the interests of Ceramic Tiles Limited one of the leading regional tile importers. Ceramic Tiles Limited is based in Ipswich with branches across Suffolk. Their business was affected by Network Rail’s ‘Ipswich Chord’ scheme resulting in the Company having to relocate to alternative premises on Olympus Close, Ipswich.
The Company suffered an array of losses and claimed and settled compensation for items including re fit costs, increased occupational costs, management time etc. However, they were unable to resolve the quantum of their loss of profits claim resulting from the effect on the business of their managing director’s time being focussed on dealing with the compulsory purchase rather than the business.
Despite extensive endeavours to agree a loss of profits compensation claim with Network Rail this proved to be illusive. Forensic accountants were engaged and Ceramic Tiles Limited employed the expert services of EY’s forensic accountant team. Despite Network Rail engaging their own forensic accountants - agreement could still not be reached.
As their professional advisors we established a wider professional team including Squires Patton Bogg Solicitors to lead the legal process. After 7 years of engagement and dispute this resulted in a Reference to the Upper Tribunal and a settlement of the claim at mediation.
The lesson is not to give up on your entitlement and to engage a wider professional team with the skill set to resolve disputes.
For further information of any compulsory purchase issue, please contact our team.