Summary: Mr X complained the Council failed to make an agreed compensation payment following its compulsory purchase of a property. The Council is at fault. It has agreed to pay Mr X the amount owed and to apologise to him for the frustration he was caused by its delay.

The complaint

1. Mr X complains the Council has failed to make a compensation payment following its compulsory purchase of a property in 2009 which was owned by his late relative. Mr X has yet to receive the compensation payment and fees, as agreed by the Council, which is causing him frustration and is prolonging the matter.

Back to top

The Ombudsman’s role and powers

2. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. If there has been fault which has caused an injustice, we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
3. If we are satisfied with a council’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)

Back to top

How I considered this complaint

4. I have considered the information provided by Mr X. I have considered the Council’s response to my enquiries.
5. I gave Mr X and the Council the opportunity to comment on a draft of this decision.

Back to top

What I found

6. In 2009, the Council compulsory purchased a property owned by a late relative of Mr X. In 2011 the Council made an advance payment of 90% of the compensation due based on the market value of the property. The remaining 10% compensation payment has not yet been paid.
7. Mr X took a claim to the Lands Tribunal which determined a value for the property.
8. A contractor acted on behalf of the Council in dealing with the compensation payment. Negotiations between Mr X and his legal representatives and the contractor took place regarding the remaining amount owed. There were issues around council tax owed on the property and costs related to asbestos removal. In February 2018 the contractor agreed an amount of compensation plus statutory interest. It also agreed to pay reasonable legal and surveyors’ fees.
9. Mr X did not receive payment. In February 2019 Mr X spoke to an officer at the contractor who said they would contact the Council and forward instructions for payment of the balance owed plus the fees reasonably incurred. Mr X did not receive payment and contacted the Ombudsman.
10. The Council was at fault for the delay in arranging and making payment to Mr X of the amount remaining owed following its compulsory purchase of a property. The Council says it had difficulty determining the fees payable to Mr X as he had changed legal representatives and surveyors. In addition, it says a number of Council and contractor staff have left and there were difficulties accessing electronic files. The Council says it has now forwarded instructions for the payment of the amounts outstanding.
11. The agreed amount includes an interest payment for the period from when the property was compulsory purchased to date plus an amount for Mr X’s legal fees. This is a sufficient financial remedy for the delay. Nevertheless, the Council should apologise for the frustration the delay has caused Mr X.

Agreed action

12. Within one month of the final decision on this complaint, the Council has agreed to pay Mr X the agreed amount of compensation outstanding plus statutory interest and the fees incurred. It has also agreed to write to apologise to Mr X for the frustration and inconvenience caused by its delay.

Back to top

Final decision

13. I have completed my investigation. The Council was at fault. The agreed action is an appropriate remedy for the injustice caused.

Back to top

Investigator's decision on behalf of the Ombudsman