LGM Enterprises Pty Ltd v Brisbane City Council

LGM Enterprises Pty Ltd brought proceedings against Brisbane City Council in the Queensland Civil and Administrative Tribunal, seeking compensation for losses incurred due to roadworks carried out by the Council in the vicinity of their shopping centre. The primary issues for determination were the extent to which the roadworks impacted LGM's business operations, the duration of the disruption, and the appropriate compensation for losses incurred during and after the construction period. The court also considered claims for future economic loss and compensation for the time expended by a director of LGM in managing the proceedings.

In examining the nature and duration of the works, the Tribunal relied heavily on the evidence of Mr Arneil, the respondent's project manager, who detailed the extensive works including drainage, road surface, and pavement works, as well as the relocation of street lighting and traffic signals. The Tribunal concluded that the roadworks had a significant and detrimental impact on LGM's business operations. Although Mr McGinn, a representative of LGM, tended to exaggerate the extent of the disruption, the Tribunal accepted that the roadworks caused considerable stress and material interference with the centre's operations. The Tribunal found that the impact of the roadworks was evident in the trading figures and business projections presented by LGM.

The Tribunal awarded compensation of $152,250 to LGM, along with interest on the compensation amount from the date of resumption to the date of payment. The interest rate was set at 5.25% per annum for the period up to the payment of the advance, and thereafter on the reduced amount of $116,594. The Tribunal took into account the various heads of compensation claimed by LGM, including loss of business during the construction period and future economic loss, but did not award compensation for the time of the director or legal fees incurred outside the scope of the Acquisition of Land Act 1967. The decision reflects a careful balancing of the evidence and submissions, ensuring that the compensation awarded was commensurate with the substantiated losses incurred by LGM due to the respondent's roadworks.