Northern Territory v Griffiths

The High Court of Australia considered an appeal by the Northern Territory concerning compensation awarded to the Ngaliwurru and Nungali Peoples for the extinguishment of their native title rights and interests. The dispute arose from various acts undertaken by the Northern Territory between 1980 and 1996, including grants of tenure and the construction of public works, which were found to have impaired or extinguished native title over approximately 127 hectares of land within the Timber Creek town area.

The central legal issues before the High Court involved the assessment of compensation for both economic and cultural loss. Specifically, the court had to determine whether the economic value of the native title rights and interests was equivalent to the freehold value of the affected land, and if so, how any reduction from that value should be calculated, considering factors such as the inalienability of native title. The court also had to assess the principles for determining compensation for cultural loss, including whether the trial judge's award was manifestly excessive or failed to meet community standards. Furthermore, the court was required to decide whether simple or compound interest was payable on the economic loss component of the compensation award and on what basis.

The High Court allowed the appeal in part, modifying the compensation awarded by the Full Court of the Federal Court. The court determined that compensation for economic loss should be $320,250. Regarding interest on this economic loss, the court upheld the Full Court's award of $910,100, which was calculated using a specific "rt" multiplier. The court reasoned that while "just terms" for compensation under the Native Title Act 1993 (Cth) permit the award of interest, this power does not extend to compound interest on the compensation itself. The court also addressed the assessment of cultural loss, reducing the award to $1,300,000.

Consequently, the High Court set aside the previous orders and substituted new ones. The total compensation payable to the native title holders was fixed at $2,530,350, comprising the economic loss, interest on that loss, and compensation for cultural loss. Post-judgment interest was also to accrue on this total sum. The appeal concerning interest was allowed in part, while the appeal regarding the assessment of cultural loss was dismissed.