Merchin v The Commissioner of Main Roads

The Land Court heard a case between Leslie George Merchin, Beryl Jean Merchin, and Stephen Leslie Merchin and The Commissioner of Main Roads regarding compensation for land resumed for road purposes. The court was required to decide on the period during which interest should be paid on the compensation sum and the quantum of legal and valuation fees incurred by the claimants. The claimants argued that interest should run until the date of the hearing, while the Commissioner argued that interest should run from the date the land was entered into possession by the Department until the date in 1985 when advice was given that no further accommodation works would be provided. The court found that the provision of accommodation works was a setoff against compensation and that the quantum of the claim would fluctuate according to their degree and import. The court concluded that interest on the agreed sum could be terminated twelve months after the date of the first communication from the Department in 1987 or 5th January, 1988, being the date of the last communication prior to the matter being put into court by the respondent.

The court found that the bill of costs should be allowed in full and that Mr Herron's fees should also be allowed in full. The court concluded that the formulation of the claim was dependant upon the provision of the accommodation works, and therefore, the costs incurred for the purposes of obtaining such works were necessary and reasonable in the circumstances of the case. The court ordered that interest on the agreed sum of $45,000 be paid at the rate of 13.25% per annum for the period commencing on 12th September, 1983, and ending on 5th January, 1988. The compensation payable by the respondent for legal and valuation fees incurred by the claimants for the purposes of the claim was determined in the sum of $6,363.95.