Inglewood Pulp and Paper Co Ltd v New Brunswick Electric Power Commission

(2002) 125 LGERA 180; [2002] WASC 174

Supreme Court of Western Australia

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Interrogate

Catchwords

1. Compulsory Acquisition
2. › Compensation
3. › Valuation of land
4. › Market value
5. › Comparable sales method
6. › Selection and adjustment of comparable sales
7. › Discount for magnitude
8. › Whether discount for magnitude applies to commercial development land
9. › Public Works Act 1902 (WA), s 63(a)
1. Compulsory Acquisition
2. › Compensation
3. › Special circumstances
4. › Proviso to s 63(c)
5. › Whether injurious affection to business by reservation constitutes special circumstance
6. › Whether uncertainty from reservation is common feature of compulsory acquisition
7. › Public Works Act 1902 (WA), s 63(c)
1. Compulsory Acquisition
2. › Compensation
3. › Improvements
4. › Whether obsolete buildings have value to owner
5. › Whether short-term rental value of buildings can be claimed where highest and best use assumes demolition
6. › Public Works Act 1902 (WA), s 63(a)
1. Compulsory Acquisition
2. › Compensation
3. › Statutory deduction for prior injurious affection payment
4. › Order of calculation of compensation
5. › Metropolitan Region Town Planning Scheme Act 1959 (WA), s 37(5)(b)

Quick Take

The word 'profits' in s 63(d) of the Land Acquisition and Public Works Act 1902 (WA) means 'revenue' and is not limited to net or gross profit; land on which a business operates and earns revenue 'produces profits' even if the business is trading at a loss. Compound interest cannot be awarded under s 63(d). The statutory deduction under s 37(5)(b) of the MRTPS Act is to be made from the compensation for land and improvements only, before adding solatium and other amounts. Where the highest and best use of land assumes demolition of existing buildings, the applicant cannot simultaneously claim the value of those buildings as improvements.