Nevis Pty Ltd v Chief Executive, Department of Main Roads

In the case of Nevis Pty Ltd v Chief Executive, Department of Main Roads, the claimants, Nevis Pty Ltd, Australian Self Storage Pty Ltd, Australian Self Storage Pty Ltd as trustee of the Australian Self Storage Superannuation Fund, and The Body Corporate for 4032 Pacific Highway Community Titles Scheme 22755, sought compensation for the resumption of their land by the Chief Executive, Department of Main Roads, for transport and incidental purposes. The claimants argued that the resumption resulted in the loss of a self-storage business and associated profits. The court had to determine the appropriate method for assessing compensation and the amount to be paid.

The court found that the claimants' approach of assessing compensation based on the "before and after" valuation of the enterprise as a going concern was the most appropriate method. The claimants had combined their separate claims into a single claim for the amount of $1,228,496.60. The court agreed with the claimants that there was no duty to mitigate their loss by extending the self-storage enterprise onto other land owned by one of them, as they had acted reasonably in the circumstances.

The court awarded compensation under various heads, including loss of going concern value, construction costs of the new office/caretaker's accommodation, compensation for the time of directors, legal, valuation, and accounting fees, bank charges, and loss of profits and other costs during future roadworks. The total compensation awarded was $854,719, with interest to be paid from the date of resumption until the day immediately preceding the date on which payment is made.

In conclusion, the court awarded compensation in the sum of Eight hundred and fifty-four thousand, seven hundred and nineteen dollars ($854,719) and ordered the respondent to pay the claimants that amount, along with interest at the rate of 6.25% per annum.