Ury Estate Ltd v BP Exploration Operating Company Ltd

Servitude – Pipeline – Entitlement to compensation for inability to develop land due to existence of pipeline. Court of Session: In an action in which the pursuer sought payment of compensation from the defender as a result of its claimed inability to develop a property as a 35-bedroom 5-star luxury hotel due to the proximity of a pipeline, claiming entitlement to compensation as a result of the provisions of a grant of servitude, the court held that the defender was not liable to pay compensation to pursuer in terms of the servitude: although an application in 2017 for planning permission for a 35-bedroom hotel was refused on the basis of the proximity of the property to the pipeline, a 35-bedroom hotel could be developed on the basis of existing planning permissions and therefore such a development was not prevented by the existence of the pipeline; furthermore the pursuer had failed to prove that the proposed development was achievable as a matter of practical reality—ie that it was buildable, affordable and financially viable.

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