Theo v Brisbane City Council

Theo v Brisbane City Council involved a dispute over the compensation owed by Brisbane City Council for the resumption of two lots of land for road widening and related purposes. The claimants, A. and T. Theo and the Solon Theo Family Trust, sought compensation for the resumption of their property at 76 Breakfast Creek Road, Newstead. The claimants initially filed a claim for compensation of $273,000 plus interest, but subsequently amended this to an unspecified sum exceeding $3 million. The Brisbane City Council assessed the compensation at $90,000. The legal issues before the court included the valuation of the resumed land and improvements, the claim for capital gains tax, and the appropriate rate of interest on the compensation.

The court found that the claimants' amended claim for compensation was unsustainable. It noted that the claimants had abandoned their claim for enhancement and had not provided sufficient evidence to support their valuation of the land and improvements. The court preferred the valuation of the respondent's expert, Mr Kopittke, who assessed the value of the resumed property at $90,000 based on comparable sales evidence and the highest and best use of the land as a redevelopment site. The court also found that the claim for capital gains tax was not compensable as it was merely an incident of ownership. Regarding interest, the court decided to use the rate of 13.5% per annum, which was the rate used by the Council for an advance payment of compensation.

The final orders of the court were that compensation for the resumption be determined at $92,420, being the value of the land and improvements resumed plus the value of the furniture left in the building. Interest at the rate of 13.5% per annum was to be paid on the sum of $10,480 from the date of resumption until final payment of compensation.