Phillip Street Properties Pty Ltd v The State of Queensland

Phillip Street Properties Pty Ltd, as assignee of Kynjass Pty Ltd, claimed compensation from the State of Queensland for the compulsory acquisition of land used for sand extraction in Townsville. The land was resumed for the purpose of preserving Landscapes Queensland and the Queensland Estate. The primary issues were whether the sand extraction potential of the subject land was destroyed by the discoveries of Aboriginal burial remains, whether the existing use rights for extractive industry had been discontinued, and the value of the sand extraction potential at the date of resumption. The Court found that the archaeological evidence indicated a high probability of further burials in the central dune and a possibility in the rear dune. The valuers' estimates of the sand extraction potential varied significantly due to differences in assumptions, but the Court concluded that a prudent purchaser would value the business at approximately $1.17 million, adjusted for the risk of further burial discoveries. The Court awarded compensation of $886,171, including interest on the sum from the date of resumption and on legal and valuation fees from the dates of payment.