Washington v Skelton

The case of Washington v Skelton involved a dispute between the parties over compensation payable under section 85 of the Mineral Resources Act 1989. Washington was the owner of a mining lease on land belonging to Skelton. The dispute arose from the compulsory acquisition of part of the lease for mining purposes. The court was tasked with determining whether compensation was payable and, if so, the amount.

The primary legal issue was whether compensation was payable under section 85 of the Mineral Resources Act 1989 for the diminution of use of Skelton's land due to the mining activities. The court had to consider the extent of the land affected, the nature of the use of the land, and the appropriate compensation for the compulsory acquisition.

The court concluded that compensation was payable and determined the amount. The court awarded a lump sum of Five Hundred and Fifty Dollars ($550) representing the diminution of the use made or which may be made of the land, with a 10% adjustment reflecting the compulsory nature of the mining claim. Additionally, the court ordered that the cost of one inspection per year, amounting to Four Hundred and Forty Dollars ($440) including a 10% adjustment, indexed annually to the Consumer Price Index (CPI), was to be paid. The court also stipulated that if Washington did not maintain the access track and Skelton incurred that expense, one third of the cost of any reasonably necessary track maintenance would be payable within 28 days of presentation of an invoice.

The final orders included the payment of the lump sum and inspection costs, along with the condition for track maintenance costs if applicable.