St John Ambulance Association of Western Australia Inc v East Perth Development Authority

The St John Ambulance Association of Western Australia Inc (the claimant) has sought compensation from the East Perth Development Authority (the respondent) for land that was resumed pursuant to the Land Acquisition and Public Works Act 1902. The claimant, a non-profit organisation incorporated under the Associations Incorporation Act 1987, was deprived of a 750m2 portion of its land, reducing its total land area from 3468m2 to 2718m2. The claimant has received advance payments from the respondent of $256,586.63 but seeks an additional $384,736 for the special value of the resumed land. The central issue in this case is whether the claimant is entitled to compensation for the special value of the resumed land in addition to its market value. The respondent argues that special value should not be considered beyond the market value, while the claimant contends that the land holds special value due to its historical significance and the operational needs of the association.

The court examined the principles of special value as outlined in the decided cases. The landmark decision in Spencer v Commonwealth (1907) established that the market value of land is determined by the price a willing purchaser would pay and a willing seller would accept, taking into account various factors that might affect the land's value. However, the court also recognised that special circumstances may warrant additional compensation beyond the market value. In this regard, section 63(c) of the Public Works Act allows the court to consider special value if the normal methods of assessment would result in inadequate compensation. This provision was reinforced by cases such as R v Compensation Court (WA); Ex parte State Planning Commission re Della Vedova (1990) and D'Amico v Shire of Swan Guildford [1969], which emphasised the court's discretion to award special value in appropriate cases.

The court concluded that the resumed land held special value for the claimant due to its historical significance and operational importance. The claimant's use of the land as its headquarters since 1941 and its integral role in providing ambulance and first aid training services in Western Australia supported the claim for special value. The court awarded the claimant $384,736 in addition to the advance payments already made, recognising that the market value alone would not adequately compensate for the unique circumstances of this case. This decision underscores the importance of considering special value in compensation assessments where it is warranted by the unique attributes of the land in question.