Salia Property Pty Ltd (ACN 120 108 581) and Commissioner Of Highways

Salia Property Pty Ltd and the Commissioner of Highways were parties to a dispute before the High Court of Australia. The core of the disagreement concerned the proper assessment of compensation payable to Salia Property under the *Land Acquisition Act 1969* (SA) following the compulsory acquisition of its land by the Commissioner. Salia Property contended that the compensation awarded was insufficient, particularly in relation to the value of the land and the loss of business opportunities.

The High Court was required to determine whether the Land and Valuation Court had erred in its assessment of compensation. Specifically, the court had to consider the correct method for valuing the acquired land, including whether it should be valued as if it were still zoned for its existing use or for a more profitable potential use. Furthermore, the court had to decide whether compensation for loss of business profits, or a solatium for the loss of a business, was a compensable head of damage under the relevant legislation.

The High Court ultimately held that the Land and Valuation Court had correctly applied the principles of the *Land Acquisition Act 1969* (SA). The Court affirmed that compensation should be assessed based on the market value of the land at the date of acquisition, taking into account its existing zoning and potential for development, but not speculative future uses that were not reasonably foreseeable. The Court also confirmed that compensation for loss of business profits was not a standalone head of damage under the Act, although the impact of the acquisition on the business could be a factor in assessing the market value of the land.

The appeal was dismissed.