Kuhn v The Crown

Geoffrey and Hilary Kuhn, the claimants, had a combined interest in two parcels of land in the Mowbray Valley near Julatten, which were taken by the Crown for National Park purposes. The claimants argued that the value of the land was significantly enhanced by its potential for eco-tourism purposes, which would have been diminished if access to Mowbray Falls was not permitted. The Crown argued that the falls were not a significant feature of the land and that access would have been permitted. The court found that access to Mowbray Falls was a significant feature of the land for eco-tourism purposes and that a prudent purchaser would have considered the risk that access would not be permitted or that permission would have been difficult and possibly expensive to obtain when deciding whether to purchase the land and the price to pay. The court awarded compensation to the claimants accordingly.

The court determined that the highest and best use of the subject land was for eco-tourism purposes, and that access to Mowbray Falls was a significant feature of the land for eco-tourism purposes. The court found that a prudent purchaser would have considered the risk that access to the falls would not be permitted or that permission would have been difficult and possibly expensive to obtain when deciding whether to purchase the land and the price to pay. The court awarded compensation to the claimants accordingly, taking into account the amounts paid to the claimants to date and the applicable rate of interest.