Civil Law: Analysis of Land Acquisition Compensation Act 1991

This assignment provides a detailed analysis of civil law principles related to land acquisition and compensation, focusing on the Land Acquisitions (Just Terms Compensation) Act 1991 and the Land Acquisition Act 1993. It addresses different valuation methods, including comparable-sales, income-valuation, hypothetical-development, cost-based, and before-and-after methods, emphasizing the complexities in determining 'special value' and compensation. The assignment further examines the concepts of disturbance, severance of land, and solatium, outlining the legal costs, financial costs, and non-financial disadvantages associated with land acquisition. It explores partial acquisition scenarios, the assessment of injurious affection or betterment, and the statutory powers of the Tasmanian State. The document references key legal cases such as Pastoral Finance Association Ltd v Minister, Thompson v Randwick Corporation, and Minister for Public Works (NSW) v Duggan to support its analysis.

Running head: CIVIL LAW
CIVIL LAW
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1CIVIL LAW
Question 9
1
If a number of valuations are prepared for the reflection of different interpretations of the
law, planning or other matters, separate valuation statements should be made for setting out
clearly the basis of each of the valuations. Under the Land Acquisitions (Just Terms
Compensation) Act 1991 section 55(b) the special value of any acquired land the ‘financial
value’ of any advantage given to the person who has been entitled to compensation in addition to
the ‘market value’ which is incidental to use of land of that person. Different methods of
valuation are- ‘comparable-sales’ valuation method, income-valuation method, ‘hypothetical-
development’ valuation method, cost-based valuation method and before-and-after valuation
method.
2
The question as why it is so difficult for the valuation of certain assets has been dealt
with the courts over the centuries at the time of the consideration of ‘special value’ in the cases
related to compulsory acquisition. In the case Pastoral Finance Association Ltd v Minister
[1914] it was decided by the ‘Privy Council’ by drawing on resumption cases of the 19th Century
that the owner would be entitled for compensation on the worth of the land in case the land was
found to have ‘special value’ over and above the market value towards the owner.

2CIVIL LAW
3
Under Land Acquisitions (Just Terms Compensation) Act 1991, section 59 the loss that is
attributable to ‘disturbance’ of land is the legal costs for the compulsory acquisition of land,
financial costs for discharge of mortgage, or any other costs in relation to actual usage of the land
that is incurred in a reasonable way by the people entitled for receiving compensation. Solatium
on the other hand can be seen to be defined under section 60 of the Act as the compensation paid
to a person for the disadvantages that have been arising non-financially because of the person’s
necessity for the relocation of the principal residence because of the acquisition.
Question 10
1
Under the Land Acquisitions (Just Terms Compensation) Act 1991, section 58 the loss
that is attributable for the severance of land is the amount of the reduction of the ‘market value’
of any other land to which the person is being entitled for compensation that has been caused by
severance of the other land of the person.
Under section 55 (f) of the Act rise for the claim of compensation can arise because of a
decrease in the value of the adjoining or the severed land. Similarly downward adjustment in the
payment of the compensation may arise because of an increase in the value of the adjoining or
severed land.

3CIVIL LAW
2
In case of proposal of partial acquisition and reinstatement, the basis for the
compensation claim would be seen to be depending upon the impact of the land that has been
taken on the land that has been retained by way of dispossession. The Heads of Compensation
claimable would be impacted by the nature of the claim and it would be seen to be driving the
methodology of the valuation used for assessing compensation. The acquisition and its extent can
primarily be seen to be determined by the requirements set by an acquiring authority. Although
acquisition of land more than is necessary is prohibited as defined in the cases Thompson v
Randwick Corporation [1950] and Minister for Public Works (NSW) v Duggan [1951], yet under
section 10 of the Land Acquisition Act 1993 the Tasmanian State is seen to have the statutory
power for entering into agreement for the acquisition of more land than necessary. Negotiation
for the acquisition of total property where the proposed partial acquisition is not seen to be the
best interest of dispossessed party is also common in NSW. In partial acquisition of land there
should be a consideration for injurious affection or betterment as an additional compensation
head and the assessing method would be differing from total acquisition.

4CIVIL LAW
Reference
Land Acquisition (Just Terms Compensation) Act 1991
Land Acquisition Act 1993
Minister for Public Works (NSW) v Duggan [1951] 83 CLR 824
Pastoral Finance Association Ltd v Minister [1914] AC 1083
Thompson v Randwick Corporation [1950] 81 CLR 87