Ostroco Pty Ltd v Chief Executive, Department of Transport and Main Roads

Ostroco Pty Ltd, a real estate business operating from leased premises in Coorparoo Shopping Mall, sought compensation from the Chief Executive of the Department of Transport and Main Roads following the acquisition of the land by the State of Queensland under the Acquisition of Land Act 1967. The land was taken for the Eastern Busway Project. Ostroco claimed compensation for relocation costs, economic loss, loss of subletting income, and disturbance items. The legal issues centered on whether Ostroco was entitled to compensation under s.18(3) of the Act, which stipulates that compensation shall not be payable to a lessee if the constructing authority allows their estate or interest to continue uninterrupted.

The court examined whether Ostroco had made a written application to continue their estate or interest, and if the Department had allowed such continuity. Ostroco argued that no written application was made, pointing to their correspondence which expressed a belief that the previous lease terms would continue. The court found that this correspondence was indeed a written application under s.18(3). Furthermore, the court concluded that Ostroco's estate or interest had not been interrupted, as they had continuously enjoyed the occupancy of the premises. The court held that the Department had allowed the continuity of Ostroco's estate by permitting them to occupy the premises on a month-to-month lease, albeit at a different rate.

Given these findings, the court ruled that s.18(3) of the Act applied, and Ostroco was not entitled to compensation. The application was consequently refused. The court did not address the matter of costs but indicated that applications for costs could be considered within the statutory framework.