Grahame Allen & Sons Pty Ltd v Queensland Railways

This case involved a dispute between Grahame Allen & Sons Pty Ltd (the claimant) and Queensland Railways (the respondent) regarding compensation for the resumption of land for railway purposes. The claimant sought compensation for the loss of land, severance and injurious affection, loss of stockpile of gravel removed from the severed area, and agreed disturbance items. The court had to determine the value of the land and the loss of gravel and other quarry material. The claimant argued that the resumption would make it no longer viable to quarry material on the severed area, while the respondent contended that there was no valuable quarry material left on the subject land. The court found that the prospect of extracting quarry material from the severed area was too uncertain for a hypothetical prudent purchaser to pay any additional amount for it. The court determined compensation payable as a result of the resumption at $377,500, which included loss of land, severance and injurious affection, loss in value of quarry material, loss of stockpile of gravel, and disturbance. The respondent was also ordered to pay interest on the compensation and survey fees.

The final orders of the court were as follows: The respondent is ordered to pay to the claimant company compensation in the sum of $377,500. The respondent is further ordered to pay to the claimant interest at the rate of 7.75 per cent per annum on the sum of $370,000 from the date of resumption up to and including the day immediately preceding the date upon which payment of compensation is made. The respondent is also ordered to pay to the claimant interest at the rate of 7 per cent per annum on survey fees of $2,850 from 11 October 1996 and on other professional fees and costs of $4,650 from 26 April 1997 up to and including the day immediately preceding the date upon which payment of compensation is made. The parties were given liberty to apply on five days’ notice to the other in respect of any of the compensation and interest calculations.