Tribunal Confirms Indemnity Costs are the Default in CPO Cases

19 August, 2026

The Upper Tribunal (Lands Chamber) has ordered Sandwell Metropolitan Borough Council to pay the claimants’ costs on the indemnity basis following a compulsory purchase compensation reference concerning land in Smethwick.

Tribunal Confirms Indemnity Costs are the Default in CPO Cases

19 August, 2026

The Upper Tribunal (Lands Chamber) has ordered Sandwell Metropolitan Borough Council to pay the claimants’ costs on the indemnity basis following a compulsory purchase compensation reference concerning land in Smethwick.

The Tribunal had previously awarded compensation of £547,039. In determining costs, it accepted Cain Ormondroyd’s argument that indemnity costs are the default position in compulsory purchase cases under the principle of equivalence, unless the acquiring authority can show a special reason to depart from that approach. No such reason was identified, and the Tribunal rejected the authority’s submission that costs should be assessed on the standard basis. An interim payment of £150,000 is to be made within 28 days, with the final figure to be determined by detailed assessment in the Senior Courts Costs Office.