Konduru T/as Warringah Road Family Medical Centre v Roads and Maritime Services; Konduru v Roads and Maritime Services; Konduru v Roads and Maritime Services [2017] NSWLEC 36

Konduru T/as Warringah Road Family Medical Centre v Roads and Maritime Services; Konduru v Roads and Maritime Services; Konduru v Roads and Maritime Services [2017] NSWLEC 36

Market value should be determined using agreed capitalisation of market rents for each tenancy; compensation for disturbance includes reasonable costs for relocating a medical practice, but not mortgage interest above the statutory rate nor future stamp duty for passive investors. Rent paid during a holding over period post-acquisition may be reimbursed under s 59(1)(f) of the Act. The statutory interest regime is exhaustive and allows no claim for higher actual interest rates.

Parties
Applicant in Matter No 155208 of 2016: Lavanya Kumari Konduru T/as Warringah Road Family Medical Centre; Applicant in Matter No 155211 and 155213 of 2016: Lavanya Kumari Konduru; Applicant in Matter No 155211 and 155213 of 2016: Madhu Konduru; Respondent in All Matters: Roads and Maritime Services
Jurisdiction
Australia
Judgment Date
29 March 2017
Procedural Posture
Compensation Claim Compulsory Acquisition (class 3) / Judgment After Full Hearing
Outcome
Orders to give effect to these findings; calculation details to be provided by parties, matter for mention for final orders.
Legal Topics
Compensation Calculation, Market Value Assessment, Disturbance Compensation, Statutory Interpretation, Reimbursement of Costs
Compulsory Acquisition Valuation Law Land Law Compensation Calculation Market Value Assessment Disturbance Compensation Statutory Interpretation Reimbursement of Costs

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Parties

Lavanya Kumari Konduru T/as Warringah Road Family Medical Centre

Applicant in Matter No 155208 of 2016

Lavanya Kumari Konduru

Applicant in Matter No 155211 and 155213 of 2016

Madhu Konduru

Applicant in Matter No 155211 and 155213 of 2016

Roads and Maritime Services

Respondent in All Matters

Procedural Posture

Compensation Claim Compulsory Acquisition (class 3) / Judgment After Full Hearing

Legal Issues

  1. 1 How should the market value of the acquired properties be determined?
  2. 2 Are the applicants entitled to reimbursement of disturbance costs for relocation of a medical practice?
  3. 3 Is the claim for stamp duty on a future acquisition compensable?

Ratio Decidendi

Market value should be determined using agreed capitalisation of market rents for each tenancy; compensation for disturbance includes reasonable costs for relocating a medical practice, but not mortgage interest above the statutory rate nor future stamp duty for passive investors. Rent paid during a holding over period post-acquisition may be reimbursed under s 59(1)(f) of the Act. The statutory interest regime is exhaustive and allows no claim for higher actual interest rates.

Court Disposition

Orders to give effect to these findings; calculation details to be provided by parties, matter for mention for final orders.

Orders

  • Market value for 449 Warringah Rd determined by rentals: Shop 1 $902/m² p.a., Shop 2 $900/m² p.a., Shops 3 and 4 $810/m² p.a. capitalised.
  • Market value for 40-42 Bantry Bay Rd: first floor agreed rate, ground level shops $500/m² p.a.; lost rental compensation for 40 Bantry Bay Rd from 18 April 2014 to date of acquisition.