ECHR Article A1P1

August 27th, 2019 by James Goudie KC

When do contractual rights and expectations amount to A1P1 possessions? When does goodwill qualify for A1P1 Protection? These were the linked substantive issues in SOLARIA ENERGY UK v DBEIS (2019) EWHC 2188 (TCC).

Not all contractual rights amount to property or to an A1P1 possession: para 53. In order to do so they must have the attributes of an asset : para 59. They must have a monetary value which can be marketed for consideration : para 52.

Even where the valuation of business goodwill does reflect an element of book debts which are anticipated ( but not yet crystallised ) the valuation of a future income stream does not qualify as an A1P1 possession : para 44. In order to qualify for A1P1 Protection the goodwill of the business must be marketable : para 45. Goodwill will be an A1P1 possession only if the profession, trade or business to which it has been attached has been organised in a way that enables the Court to identify an element of goodwill which has been attributed a monetary value separate from that of the tangible assets of the business and which value is, at least in principle, capable of being realised on sale, assignment or other dealing : para 49. The most obvious way of establishing this would be to identify the relevant value in the accounts of the business : ibid.

The Judge also rejected the claim as being out of time under HRA s 7(5).

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