The Commonwealth v Reeve [1949] HCA 22

The Commonwealth v Reeve [1949] HCA 22

Compensation for compulsory acquisition of leasehold premises is to be assessed on the value of the interest to the owners, which includes the market value reflecting localized business goodwill in so far as it attaches to the premises and affects what a purchaser would pay, but not as a separate head of compensation for loss of business. The trial judge's assessment, taking into account the linkage between the business and the location, reflected a correct application of principle.

Jurisdiction
Australia
Procedural Posture
Appeal / High Court Appeal From the Full Supreme Court of New South Wales, Which Upheld an Assessment of Compensation
Outcome
Appeal dismissed with costs.
Legal Topics
['compensation for Compulsory Acquisition' 'valuation of Leasehold Interest' 'goodwill in Compensation' 'value to the Owner' 'disturbance and Business Loss']
['compulsory Acquisition' 'land Law'] ['compensation for Compulsory Acquisition' 'valuation of Leasehold Interest' 'goodwill in Compensation' 'value to the Owner' 'disturbance and Business Loss']

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Procedural Posture

Appeal / High Court Appeal From the Full Supreme Court of New South Wales, Which Upheld an Assessment of Compensation

Legal Issues

  1. 1 ['What is the measure of compensation payable to monthly tenants running a business on compulsorily acquired land?' 'Is loss of business or goodwill compensable as part of the value of the land interest acquired?' 'Did the trial court apply the correct principle in valuing the compensation owed?']

Ratio Decidendi

Compensation for compulsory acquisition of leasehold premises is to be assessed on the value of the interest to the owners, which includes the market value reflecting localized business goodwill in so far as it attaches to the premises and affects what a purchaser would pay, but not as a separate head of compensation for loss of business. The trial judge's assessment, taking into account the linkage between the business and the location, reflected a correct application of principle.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.']