COMPULSORILY ACQUIRED LAND Claiming loss of profits

Posted on June 1st, 2009

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Claims for compensation are often made not only by landowners but also by businesses which operate on acquired land.

Many state authorities have the power to compulsorily acquire land for public purposes. The law ensures that compensation is paid for the market value of the acquired land and for ‘disturbance’ to the dispossessed owner.

An ‘owner’, for the purposes of the law, means any person who has an “interest in the land“, which would include, in most cases, any business operating from the land with a lease or similar arrangement. Some public works may also have a short-term impact on a business’s profits.

In a series of cases in the past year, the Land and Environment Court has made some important comments about loss-of-profit claims with interpretations favouring the acquiring authorities.

However, every claim turns on its own unique facts. The success or otherwise of a claim for loss of profits will depend on properly preparing the legal case and understanding the words used in the law.

Speak to a solicitor if you want advice on claims.

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