Commonwealth v Reeve [1949] HCA 22

Cor Nilvvale FCT vSt Motel ens Farm cae LGRA 108 Fareten, fol P ime, 1536) {87> FAS ashi vi Peter i wt bes rae Hf 19898) 2 VR Gar ae R

HIGH COURT (1949,

[HIGH COURT OF AUSTRALIA.]

THE COMMONWEALTH . ' a js . APPELLANT; DrrenvaNnt, AND REEVE AND ANOTHER . : ° . . R&sPoNnpDENTs, PLaINtIFrs,

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES.

H.C. or A. Resumption—Land—Acquisition by Commonwealth—Large office building—Lease-

1949. Ww

Sypyey, April 29, May 2, July 1.

Latham ©.5., Dixon, 'McTiernan, Williams and Webb JJ.

hold interest in building—Coffee-lounge business—T'enants permitted to remain in possession for a period—Compensation—Principles—Goodwill—Local not personal—Plant—Lands Acquisition Act 1906-1936 (No. 13 of 1906—No. 60 of 1936), #8. 5, 17, 28, 29 (1) (a), 37.

'The respondents were lessees of a room in a large office building in which, since 1937, they had carried on the business of a coffee lounge. The coffee lounge was conveniently situated in a busy area and was patronized by occupants of, and persons using, the building. On the expiration of the lease, a further lease was granted to the respondents for a period of three years from 1st November 1942, and it contained a provision that should the respon- dents remain in possession after its expiration they should do so as tenants from month to month at a stated monthly rental. On 8th November 1945, the Commonwealth resumed the whole of the land occupied by the building. 'The respondents remained in possession and by the payment of rent to and the receipt of it by the Commonwealth, became monthly tenants of the Commonwealth until October 1946 when they went out of possession. 'The respondents claimed compensation under the Lands Acquisition Act 1906- 1936 for the interest of which the resumption had deprived them.

Held that compensation for the interest resumed should be based on the fact that the goodwill was local, not personal, and therefore attached to the land.