Murray Investments Pty Ltd v Chief Executive, Department of Main Roads

The case of Murray Investments Pty Ltd v Chief Executive, Department of Main Roads involved a claim for compensation by Murray Investments, the lessee of a service station at 4071 Pacific Highway, Loganholme, following the resumption of the land by the Chief Executive, Department of Main Roads. The claimant sought compensation for the loss of its business and goodwill due to the compulsory acquisition of the land. The key legal issues were the appropriate method of valuation for the business, the characterisation of compensation as "special value" or "disturbance," and the determination of the appropriate capitalisation rate for the valuation. The court examined the expert evidence of both parties and considered the relevance of comparable sales and the nature of the interest in the land. Ultimately, the court determined that the most appropriate method of valuation was the capitalisation of net income, limited to the duration of the lease options. The court awarded compensation of $616,427, including disturbance costs and interest from 1 April 1998.