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(1)A local authority shall make full compensation to any person who has sustained damage by reason of the exercise by the authority, in relation to a matter as to which that person has not himself been in default, of any of their powers under a relevant provision of this Act; but this subsection does not affect the discretion of a local authority under section 31(4) above in a case to which that subsection applies.
(2)Subject to subsection (3) below, any dispute arising under this section as to the fact of damage, or as to the amount of compensation, shall be determined by arbitration.
(3)If the compensation claimed does not exceed £50, all questions as to the fact of damage, liability to pay compensation and the amount of compensation may, on the application of either party, be determined by, and any compensation awarded may be recovered before, a magistrates' court.
(4)In an arbitration under this section, the reference shall be to a single arbitrator appointed by agreement between the parties or, in default of agreement, by the Secretary of State.
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