Estate of the Late Clare Mahon v Chief Executive, Department of Main Roads

The Estate of the Late Clare Mahon sought compensation from the Chief Executive, Department of Main Roads, for land resumed for road purposes under the Acquisition of Land Act 1967. Following a hearing, the Land Court awarded compensation of $394,000 for the land and $2,554.60 for disturbance, bringing the total award to $396,554.60. The claimant subsequently applied for costs, which the respondent opposed, citing special circumstances. The court had to determine whether any special circumstances existed to warrant a departure from the usual practice of awarding costs to the prevailing party, and if not, whether the claimant was entitled to costs.

The court considered the discretion it possessed under the Acquisition of Land Act 1967 to award costs, noting that this discretion must be exercised judicially and by reference to relevant considerations. The court examined the arguments presented by both parties, including the claimant's submission that they were entitled to costs as they were not wholly unsuccessful and the claim was not exorbitant. The respondent argued that special circumstances existed, citing the claimant's excessive number of witnesses, additional evidence, and subpoena of settlement files, which caused delays. The court found no evidence of vexatious claims or methods, and both parties conducted themselves professionally. The court also noted that while the claimant's approach to determining the highest and best use of the land was not accepted, it was not unreasonable. The court concluded that there were no special circumstances warranting an apportionment of costs.

The court ultimately decided not to award costs to either party, stating that each party should bear its own costs. This decision was based on the lack of any special circumstances and the reasonable conduct of both parties throughout the proceedings.

As an additional matter, the court addressed an advance payment of $317,000 made by the respondent to the claimant prior to the decision. The court amended its previous decision to reflect this payment, resulting in a balance owing of $79,554.60 plus interest at 6.5% per annum from specific dates up to the final payment of compensation. The court also ordered the respondent to pay interest on the total award less legal and valuation fees from 21 November 1997 to the date of the advance payment and thereafter on a reduced sum until final payment.