Erola Pty Ltd v Council of the Shire of Redland

Erola Pty Ltd (the "claimant") brought an action against the Council of the Shire of Redland (the "constructing authority") for compensation for the acquisition of the claimant's land pursuant to the Acquisition of Land Act 1967. The claimant purchased the subject land for $25,500.00 in September 1985 with the intention of building a house there. However, the constructing authority acquired the land on 8 September 1995 for boat ramp purposes under the Acquisition of Land Act. The claimant sought compensation for the taking of the subject land, including the value of the land, injurious affection, severance, and disturbance costs. The primary issues in the case were the highest and best use of the subject land at the date of resumption and the value of the land taken. The court found that the highest and best use of the subject land was not for residential purposes, as the necessary fill to build a house would not have constituted filling "of a minor nature." The court determined the value of the subject land at the date of resumption to be $7,500.00. The court also found that the parties had agreed on disturbance costs of $4,620.00. Therefore, the total compensation payable by the constructing authority to the claimant is $12,120.00, with interest on certain components of the compensation amount.