Eacham Abrasive Blasting Pty Ltd v Gundersen & Anor

Eacham Abrasive Blasting Pty Ltd sought determination of compensation for the early termination of a mining lease over land at Cloncurry. The defendants, Grant Henrik Gundersen and Laurelle Ursula Loran Gundersen, were the lessors of the land. The case was heard in the Queensland Civil and Administrative Tribunal. The primary issue for the tribunal was to determine the appropriate compensation payable for the early termination of the mining lease. This required consideration of the factors relevant to such a calculation, including the duration of the lease, the use made of the land, and the expectations of the parties at the time of the lease agreement.

The tribunal noted that both parties had provided little material to assist in determining the compensation. Despite this, the tribunal proceeded to consider the statutory framework and relevant case law. It found that the compensation should be based on the reasonable expectations of the parties at the time of the lease agreement, taking into account the terms of the lease and the circumstances at the time. Given the limited information, the tribunal concluded that the compensation payable was $82.50. This amount was based on the consideration of the duration of the lease and the minimal use that had been made of the land. The tribunal ordered that Eacham Abrasive Blasting Pty Ltd pay the compensation sum to the defendants within two months of the renewal of ML 20079.