Alex Gow Pty Limited v. Brisbane City Council

This case involves a claim for compensation by Alex Gow Pty Limited against the Brisbane City Council for land resumed for road purposes under the Acquisition of Land Act 1967. Alex Gow, a funeral parlour, had its land resumed in 1987, impacting its operations and leading to a claim for compensation. The Land Court was required to determine the appropriate compensation for the loss of land, improvements, and business profits, as well as any interest due. The legal issues centred around the valuation of the land before and after the resumption, the impact of the resumption on the business operations of Alex Gow, and the calculation of interest on the compensation.

The Court began by acknowledging the loss of land and the inconvenience to business operations due to the resumption. However, the Court found that the capitalisation of net maintainable profits approach was not suitable due to the lack of comparable sales and the unique nature of the funeral industry. Instead, the Court adopted a piecemeal approach, considering the loss of land in isolation, the loss of visual amenity, and the loss of profits. The Court concluded that the loss of land was $12,000, the loss of visual amenity due to the loss of trees was $3,300, and the loss of profits for 1987-88 was $27,229. Additionally, the Court awarded interest on the compensation from the date of resumption until the date of the hearing, with half of the period from 4 September 1995 to 2 May 2000.

The Court awarded a total compensation of $133,137, with interest amounting to $70,317.82 due prior to the hearing, and an additional interest rate of 6.75% per annum from the date of the hearing until the final payment of compensation. This decision balances the need for fair compensation with the unique challenges posed by the resumption of land used for a sensitive business operation.