Warkworth to Te Hana motorway: Full compensation under Public Works Act
NZTA is in the process of acquiring properties for the Warkworth to Te Hana motorway project under the Public Works Act.
The affected property owners are entitled to “full compensation” under section 60 of the Act but what does “full compensation” mean?
The principle of full compensation means owners are to be compensated for the full money equivalent of their loss. They have the right to be put, so far as money can do it, in the same position as if their land had not been taken. The use of the word “full” implies the owner’s entitlement must not be whittled down in any respect.
Compensation for the value of the land is based on the sum the land would be sold for in the open market by a willing seller and a willing buyer. The method of calculating this value is based on the most appropriate method to suit the circumstances:
Common methods used to assess value are comparable sales, hypothetical subdivision analysis or discounted cashflow analysis.
The “highest and best use” (HABU) of the property is normally adopted. This is the use that would be the most profitable, likely, legal and probable use of the property.
The value is based on the “imaginary market” that would have applied at the date of acquisition as if the public work did not exist.
Compensation should be assessed liberally, so that doubts which arise from the valuation evidence may be resolved in favor of the owner.
Owners are also entitled to compensation for loss of value to other land they own which is not taken for the public work (known as “injurious affection”).
There are other losses owners may claim including additional compensation of up to $50,000 (depending on the use of the property and personal circumstances), and disturbance payments such as legal and valuation costs, losses on repayment of mortgages, business losses and relocation costs.
Grimshaw & Co are available to represent owners affected by the Warkworth to Te Hana motorway project and other public works to ensure they obtain their full entitlements under the Public Works Act. Contact us on 0800 377 300 or litigators@grimshaw.co.nz.