Blackstone win compensation for developer’s lost profits against Network Rail

Case Study

House Maker (Padgate) Ltd v Network Rail Infrastructure [2022] EWHC 1482 (TCC)

What happened: In a much-publicised case, Blackstone Solicitors represented the Claimant in a claim for a lost profits against Network Rail with the concept of “measured duty” being developed and defined in this case. Our client, House Maker (Padgate) Ltd owned a site adjoining land owned by Network Rail Infrastructure. When a drain at the site collapsed, Network Rail already knew that the site needed new drains and that the process of improving the site had been set back and delayed. The neighbouring property flooded because of National Rail’s drainage issues.

Redevelopment of the adjacent property into residential units was scheduled to begin once the drainage issue was fixed. After the developer filed legal action against Network Rail, the delay in construction was extended by a further two years while the latter made necessary repairs and improvements to the drains.

The court ruled that if Network Rail had addressed drainage problems sooner, construction could have begun when originally intended. Although Network Rail was made aware of the flooding, they did not make fixing or replacing the problem a top priority. The delay cost the developer money, but with the legal help of Blackstone Solicitors, it successfully sued for damages.

Outcome: Blackstone Solicitors were successful in recovering a substantial 6 figure sum, loss of profit and legal costs for its client who also still retains the land and is free to now commence its planned development.