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ARTICLE · 09 JUNE 2014

El Boustani - where to from here compulsory acquisitions?

This case marks a significant change in the approach to how compensation is awarded in compulsory acquisitions.

AustraliaReal Estate and Construction

Changes to Compulsory Acquisitions law .

DOUBLE TROUBLE IN COMPENSATION

El Boustani v The Minister administering the Environmental Planning and Assessment Act 1979 [2014] NSWCA 33 (El Boustani) marks a significant change in the approach to how compensation is awarded in compulsory acquisitions.

In the Land and Environment Court (LEC), the El Boustanis received compensation for the market value of the property, disturbance and legal/valuation fees. What was in issue before the Court of Appeal was whether an extra $920,000 was payable to the El Boustanis on account of them having to relocate their business that was operating on the acquired land.
Justice Pepper in the LEC held that the $920,000 to relocate the business was not payable because the El Boustanis had been compensated for a higher use, that of urban development.

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