Guidance

Explanation of claimants' surveyor's fees

Published 1 June 2006

Scale of costs for professional advisers

Where a successful claim has been settled under the Coal Mining Subsidence Act 1991, the Mining Remediation Authority will reimburse reasonable costs incurred by a claimant, as set out in Section 38 of the act.

It is anticipated that these costs could be incurred where professional advice and assistance is required by the claimant.

1) This supplement applies to subsidence damage claims dealt with under the Coal Mining Subsidence Act 1991 or arising out of other legislation or common law.

It replaces all other arrangements on surveyors’ fees.

2) The authority will pay the reasonable costs incurred by the owner or occupier of land and/or structures which have been damaged by subsidence resulting from coal mining, who has sought professional advice and guidance in dealing with a successful claim.

Recommended scale

Damage to buildings and land drainage works, excluding total loss payments and purchases.

3.1a) This scale is intended to cover charges for the submission of a claim and all subsequent inspections and negotiations, including inspection of repairs in progress and upon completion where they are executed by the authority.

3.1b) A standard fee of £200 will be payable in respect of a successful claim (see 9 (2) for multiple claims in single ownership).

3.1c) Where the cost of settlement does not exceed £10,000, the fee payable shall be 10% of the amount of the final settlement in addition to (3.1b).

3.1d) Where the cost of settlement exceeds £10,000, the fee payable shall be l0% of the first £10,000 and 5% of the residual amount of the final settlement in addition to (3.1b).

3.1e) For disbursements see (9.1a).

3.2 The amount of the final settlement shall be the aggregate of:

3.2a) The final cost of repairs (including temporary/emergency works) carried out by the authority and/or the amount of any payment agreed in respect of such repairs not carried out by the authority and,

3.2b) any other monetary payment made in settlement of the claim but excluding:

(i) The cost of temporary alternative accommodation provided by the authority and any associated expenses.

(ii) Any ex-gratia or other payment made at the authority’s discretion to relieve hardship.

Additional fee contribution – remedial works carried out by claimant.

4) Where the authority make a payment in respect of repairs not carried out by the authority and the claimant carries out such repairs, the authority will reimburse the claimant’s surveyor’s fees by way of an additional sum equal to 2.5% of the cost of the works or of the amount of the authority’s payment, whichever is the least when the works have been completed to the authority’s satisfaction.

Depreciation payments

5) The scale as detailed in 3.1 will not apply where a dwelling is made permanently uninhabitable by mining subsidence damage resulting in the demolition of the property or in cases where it is not necessary for a claimant to assess the cost of repairs. In such cases where a depreciation payment is made to an owner, the authority will pay the claimant’s reasonable cost (including disbursements) of employing a valuer to assess the compensation.

Home loss payments

6) The authority will not reimburse fees in respect of any Home Loss Payment made in accordance with Section 22 Schedule 4 of the Coal Mining Subsidence Act 1991.

Agricultural claims – loss of crops and terminal payments

7) The authority will pay the claimant’s surveyors fees as detailed in Ryde’s Scale (1996) (paragraph 2:3) Scale for Agricultural Property (Table C). It should be noted that no supplement will be payable regarding disturbance. (Fees regarding any remedial works, such as land drainage, shall be paid as detailed in section 3.1 of this document.)

Value added tax

8) The authority’s payment will be for fees exclusive of VAT. However, where a claimant cannot reclaim VAT on his professional adviser’s charges, the authority will make an additional payment of an amount calculated at a percentage rate equivalent to the current rate of VAT on the claimant’s reasonable surveyor’s costs.

General

9.1) The authority will, at its discretion, consider making interim fee awards for reasonably incurred costs.

9.1a) The scale fee at 3.1 is inclusive of general office expenses – such as stationery, postage, telephone calls and photocopying – but excludes travelling and all other out-of-pocket expenses necessarily and reasonably incurred, which will be payable in addition to the scale.

9.1b) All fees on whatever scale shall be reimbursed direct to the claimant at the appropriate time and made by cheque payable in the claimant’s name only.

9.2) It is intended that this supplement will apply to the large majority of claims but there will be exceptions where the above arrangements are inappropriate:

9.2a) Where the nature of the damage and/or type of building presents problems requiring specialist advice, such as ancient monuments, buildings of historical and/or architectural interest and complex industrial buildings or in the event of geological anomalies.

9.2b) Where multiple claims are made by a single owner.

9.2c) Where it can be shown that a particular case has involved the claimant’s surveyor in complex evaluations beyond the normal processes envisaged by 3.1 above.

In these cases the claimant’s fees will be a matter for negotiation.

9.3) This supplement is for guidance only and should be read in conjunction with Section 38 of the Coal Mining Subsidence Act 1991, reimbursements to claimants direct.

10) This scale of charges has resulted from consultation with the relevant professional bodies largely involved in the settlement of coal mining subsidence claims.

11) The scale will apply to claims submitted under the Coal Mining Subsidence Act 1991 since commencement on 30 November 1991.

The Mining Remediation Authority is the trading name of the Coal Authority (‘TCA’) established pursuant to Section 1 of the Coal Industry Act 1994, of 200 Lichfield Lane, Berry Hill, Mansfield, Nottinghamshire, NG18 4RG. The Coal Authority remains the legal name of the Authority.