THE MINISTER OF STATE FOR THE NAVY V. GOLDIE

THE MINISTER OF STATE FOR THE NAVY V. GOLDIE

The correct method of compensation assessment for the compulsory acquisition of specialised pearling luggers is to take the wartime replacement cost on the date of acquisition and deduct depreciation at a rate supported by evidence. It was not erroneous for the trial judge to use a uniform rate of 7.5% for depreciation and to consider but not reduce for market uncertainty due to war. The decision on interest is not settled but does not affect this outcome.

Parties
Appellant: Unknown (Appellant); Respondent: Commonwealth of Australia
Jurisdiction
Australia
Judgment Date
23 May 1945
Procedural Posture
Appeal / High Court Appeal From Supreme Court of Western Australia
Outcome
Appeal dismissed
Legal Topics
Compulsory Acquisition of Property, Assessment of Compensation, Depreciation of Assets, Interest on Compensation
Compensation Law War/defence Law Compulsory Acquisition of Property Assessment of Compensation Depreciation of Assets Interest on Compensation

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Parties

Unknown (Appellant)

Appellant

Commonwealth of Australia

Respondent

Procedural Posture

Appeal / High Court Appeal From Supreme Court of Western Australia

Legal Issues

  1. 1 How is compensation assessed for compulsory acquisition of property under the National Security (General) Regulations?
  2. 2 Should depreciation and wartime conditions affect the value?
  3. 3 Is interest to be included in compensation awards?

Ratio Decidendi

The correct method of compensation assessment for the compulsory acquisition of specialised pearling luggers is to take the wartime replacement cost on the date of acquisition and deduct depreciation at a rate supported by evidence. It was not erroneous for the trial judge to use a uniform rate of 7.5% for depreciation and to consider but not reduce for market uncertainty due to war. The decision on interest is not settled but does not affect this outcome.

Court Disposition

Appeal dismissed

Orders

  • Judgment of Supreme Court of Western Australia affirmed
  • Compensation sum of £1,500 for the 'Gloria' less depreciation stands