Summary: We will not investigate this complaint about a claim for compensation following a loss of business during a road closure. This is because there are other organisations better placed to assess the complaint.

The complaint

1. The complainant, Mrs X, says her business lost £2000 to £3000 in trade during a road closure. She also says the Council did not give advance notice of the closure. Mrs X wants compensation.

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The Ombudsman’s role and powers

2. We investigate complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start an investigation if we decide there is another body better placed to consider this complaint. (Local Government Act 1974, section 24A(6), as amended, section 34(B))

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How I considered this complaint

3. I considered information provided by Mrs X and the Council. This includes the complaint correspondence and information from the Council’s website about making an insurance claim. I also considered our Assessment Code.

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My assessment

4. Mrs X complained to the Council that a road closure had affected her business. She said there had not been any advance notice, access was not permitted, and she wanted compensation equivalent to two days of average takings to cover her losses. Mrs X referred to another business which was making an insurance claim against the Council.
5. In response the Council said it has a statutory duty to maintain the highway but is not required to compensate businesses for any loss of trade. It apologised because staffing issues meant it had not put up advance notice signs. The Council said access was permitted to properties and staff would allow access if asked. The Council did not respond to Mrs X’s comment about making an insurance claim.
6. The Council is correct to say it has no duty to pay compensation for loss of trade caused by a road closure. The Council has, however, apologised for not giving advance notice. But, it would be impossible for us to determine what losses, if any, arose directly from the absence of advance notice; it could be that Mrs X’s business would still have incurred losses even if the Council had put up signs.
7. As I have said, the Council is not required to cover losses caused by the road closure. Whether the Council is responsible for any losses specifically caused by the lack of notice would need a lot of un-picking and is an assessment that would need to be done by insurers or the court. This is not an assessment we can make.
8. Mrs X can make a claim on the Council’s insurance or make a court claim. It would be for the insurers or the court to decide if the Council is responsible for any loss to Mrs X’s business.
9. It would have been better if the Council had responded to Mrs X’s comment about making an insurance claim but this, as an isolated issue, does not need an investigation. In addition, there is information on the Council’s website about making a claim.

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Final decision

10. We will not investigate this complaint because it is a matter for insurers or the courts.

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Investigator's decision on behalf of the Ombudsman