Cunningham v Commonwealth [1948] HCA 6

Cunningham v Commonwealth [1948] HCA 6

A dispossessed owner of land let on a monthly tenancy, at a rent equal to the fair rental value, is not entitled to compensation for prospective loss of income upon reinvestment—such damage is too remote and does not form part of the value of the resumed land to the owner; compensation is to be limited to the market value agreed by both parties.

Parties
Plaintiff: Hilda Josephine Cunningham; Defendant: The Commonwealth
Jurisdiction
Australia
Judgment Date
05 August 1948
Procedural Posture
Action / Judgment
Outcome
Judgment for the plaintiff for £1,000 and interest; both parties to pay respective costs attributable to claims allowed/disallowed; orders for set-off of costs; liberty to apply.
Legal Topics
Land Acquisition, Assessment of Compensation, Prospective Loss of Income
Property Law Compensation Land Acquisition Assessment of Compensation Prospective Loss of Income

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Parties

Hilda Josephine Cunningham

Plaintiff

The Commonwealth

Defendant

Procedural Posture

Action / Judgment

Legal Issues

  1. 1 Whether a dispossessed owner is entitled to compensation for prospective loss of income upon reinvestment after compulsory land acquisition

Ratio Decidendi

A dispossessed owner of land let on a monthly tenancy, at a rent equal to the fair rental value, is not entitled to compensation for prospective loss of income upon reinvestment—such damage is too remote and does not form part of the value of the resumed land to the owner; compensation is to be limited to the market value agreed by both parties.

Court Disposition

Judgment for the plaintiff for £1,000 and interest; both parties to pay respective costs attributable to claims allowed/disallowed; orders for set-off of costs; liberty to apply.

Orders

  • Judgment for the plaintiff for £1,000.
  • Interest at three per cent per annum on £3,000 from 12th October 1944 to 9th February 1945, and on £1,000 from 9th February 1945 to date of judgment.