Legal and valuation costs in compulsory acquisition

Section 59(1)(a) and (b) identifies legal costs and qualified valuation fees reasonably incurred in connection with a compulsory acquisition as loss attributable to disturbance. Whether a cost is recoverable, and in what amount, depends on the statutory test and the facts. Reimbursement in full is not assured. You remain responsible for invoices under the applicable costs agreement; eligible costs may be included in the compensation claim.

1. 01

   Scope and estimate the work

   The engagement and estimate should identify the work proposed for each stage.

2. 02

   Record and invoice the work

   You remain responsible for invoices under the costs agreement.

3. 03

   Include eligible costs in the claim

   Legal costs and qualified valuation fees may be itemised with supporting material.

4. 04

   The amount is agreed or determined

   The authority may agree, or the Court may determine, the amount recoverable under the statutory test.

5. 05

   Costs of Court proceedings are a separate question

   If the amount is not agreed and an objection goes to the Land and Environment Court, the costs of those proceedings are not part of the compensation claim under section 59. They are decided by the Court in its costs discretion. There is no automatic rule that costs follow the event in a Class 3 compensation claim, but a claimant who has acted reasonably and not caused unnecessary delay or expense will usually be entitled to recover the costs of the proceedings (Dillon v Gosford City Council [2011] NSWCA 328).

General information only, not legal advice. Whether a cost is recoverable depends on it being reasonably incurred in connection with the acquisition and on the circumstances of your matter.