A recent matter in the NSW Land and Environment court considered how much compensation a party was entitled to under the Land Acquisition (Just Terms Compensation) Act 1999. 

James N Kirby Holdings Pty Limited (the Applicant) was the registered proprietor land which was compulsorily acquired by Transport for NSW. They brought proceedings objecting to the amount of compensation offered to them. 

The issue was whether compensation should have been increased to allow for an ‘adjoining owner premium,’ given that the Applicant had owned 2 blocks adjacent to each other and whether there had been an increase or decrease in the value of the adjoining land by reason of the carrying out of the proposal.

The Court found that the likely disruption to the access the estate by heavy vehicles during the construction of public works would impact on the value of a hypothetical purchaser would pay at the date of acquisition. The amount that was to be incurred in a relatively short term would be assessed by a hypothetical purchaser. In addition, the total amount for injurious affection relating to the real risks of impacts on access to the relevant estate during the four-year construction was 2.5% of the before value being $1,650,000. 

The Court awarded total compensation of $5,144,480 which comprised the market value of $3,303,690, injurious affection at $1,655,000, and disturbance at $185,790.

Leave a Reply

%d bloggers like this: