Section 34 — Compensation for notices wrongly given

(1) This section applies if—

(a) the Secretary of State gives a stop notice or a recall notice to a person,

(b) the relevant breach in respect of which the notice was given did not occur, and

(c) the decision to give the notice was not attributable to any neglect or default by the person.

(2) The Secretary of State is liable to pay compensation to the person to whom the notice was given in respect of any loss or damage caused as a result of the giving of the notice.

(3) The amount of compensation payable to a person under this section is to be determined by the Secretary of State.

(4) In determining that amount, the Secretary of State may have regard to the extent to which the person took reasonable steps to reduce any loss or damage caused as a result of the giving of the notice.

(5) A person seeking compensation under this section must make a claim to the Secretary of State.

(6) The claim—

(a) must be made in such form, and such manner, as the Secretary of State may direct;

(b) must contain evidence of the loss or damage in respect of which compensation is sought;

(c) must specify the amount of compensation which the person is seeking.

(7) The Secretary of State must, before the end of the period of 45 days beginning with the day on which the Secretary of State receives the claim—

(a) decide whether the person is entitled to compensation under this section and, if so, the amount of that compensation, and

(b) notify the person of the decision.

(8) In this section “relevant breach” means—

(a) in the case of a stop notice, a breach of a duty imposed by or under Chapter 2;

(b) in the case of a recall notice, a compliance failure within the meaning of section 30.