DHN Food Distributors Ltd v Tower Hamlets LBC

Facts

A group of three companies ran a grocery business. The land was owned by a subsidiary, and the business by the parent. The land was compulsorily acquired.

Issue

Could the group claim compensation for disturbance of the business as a single unit?

Held

Yes. The Court of Appeal treated the group as a single economic entity and allowed compensation.

Principle

A closely integrated group was treated as one unit for compensation.

Why it matters

It has been doubted in Woolfson and largely rejected in Adams v Cape, so it is of limited weight.

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