Compensation for compulsory acquisition of a licensed car parking space

The Acquisition of Land Act 1967 (Qld) (‘the Act’) deals with the acquisition of land by the State for public purposes and provides for compensation. The issue that arose for determination in Sorrento Medical Service Pty Ltd v Chief Executive, Dept of Main Roads [2007] QCA 73 was whether the appellant was entitled to claim compensation under the Act in respect of land resumed by the Main Roads Department over which the appellant had an exclusive contractual licence for car parking spaces for use in association with a medical centre leased by the appellant. At first instance, it was held by the Land Court that the appellant was not entitled to compensation for the resumption of the car parking spaces. The basis for this decision by the Land Court was that a right to compensation only exists where resumption has taken some proprietary interest of the claimant in the land. Following an appeal to the Land Appeal Court being dismissed, the appellant instituted the present appeal to the Queensland Court of Appeal (McMurdo P, Holmes JA and Chesterman J).