Paino & Heavey Lex No. 64 Pty Ltd v Director General, Department of Transport

The case involves a dispute between Heavey Lex No. 64 Pty Ltd and Mr Salvatore Paino, who are the claimants, and the Director General, Department of Transport, who is the respondent. The dispute arises from the resumption of land by the respondent for road purposes under the Land Acquisition (Just Terms Compensation) Act 1991. The claimants sought compensation for the resumption of 2.704 hectares of their land, which was part of a larger parcel of 40.13 hectares. The claimants argued that the resumption affected their proposed resort development and the nursery established on the land. The court was required to determine the highest and best use of the resumed land, assess the compensation for the land, and decide on the various claims made by the claimants.

The court considered the evidence provided by both parties and their experts on the potential uses of the land, the effect of the resumption on the proposed resort development, and the value of the nursery and other assets on the land. The court also examined the proposed planning documents and the evidence of the experts on the potential for commercial development in the vicinity of the resumed land. The court concluded that the highest and best use of the resumed land was for a low to medium intensity residential development catering for permanent residents, with some limited commercial development in the vicinity of the intersection. The court assessed compensation for the land by considering the potential for commercial development and applying a value of $16 per square metre to the resumed area. The court also determined the enhancement by considering the likely contributions towards the upgrading of the intersection had the resumption not taken place. The court disallowed some of the claims made by the claimants for lack of proof or reasonableness and allowed others with some adjustments.

The court ordered compensation for the claimants, including interest, in the sum of $68,384 for Mr Salvatore Paino and $373,920 for Heavey Lex No. 64 Pty Ltd. The court also allowed professional fees of $5,000 for valuation, $1,670 for town planning, $850 for counsel, and $10,000 for solicitors. The court ordered interest to be paid on the compensation amounts from 1 March, 1993, up to the date of payment.