(4) Ordinarily the compensation will be:
(a) the diminished market value of the affected land (including what is sometimes called the hope value, that is the potential use to which the subject land could have been put: Re Bowden's Application (1983) 47 P&CR 455 at 457);
(b) associated costs that would be caused to the owner of the affected land: Tregoyd at 15,856;
(c) an assessment of the compensation for insecurity, loss of amenities such as loss of peace and quiet; Tregoyd at 15,856; SJC at 326; and see Preston and Newsom Restrictive Covenants Affecting Freehold Land, 8th ed, Sweet & Maxwell, London, 1991, p 284;
(d) the compensation is to be less compensating advantages, if any.
(5) There may be some exceptional cases which fall outside the net of s 88K(2)(b) yet are cases where it is extremely difficult to assess the compensation, but it is clear that the applicant is to derive a considerable benefit from the application. In such circumstances it may be appropriate to assess the compensation on a percentage of the profits that would be made."
18 It certainly seems to me that Talbot J made a binding finding in relation to the value of the relevant portion of the land to the adjacent owner. It must be taken that his Honour accepted the valuer's evidence that the diminution in value by the encroachment of the footings was less than $100 and could be characterised, in his Honour's colourful word, as a "minim". It is implicit in the orders that his Honour made that there should be no order for compensation by the application of the maxim de minimis non curat lex - that is, the law takes no notice of very small things.
19 The only thing that has led me to careful consideration as to whether his Honour's finding should be binding in this situation or whether, bearing in mind his Honour's finding and the other evidence before me, I can come to a conclusion as to the appropriate amount of compensation, is that it might be said that there is a difference in the subject matter before his Honour and before this Court. In reality I do not think that there is, because the grant of an easement necessitating compensation and the assessment of appropriate compensation was before his Honour, albeit at the defendant's suit and not at the plaintiff's suit as in this Court. The only thing that could be said to be different is that, if this Court grants an easement, it may specify an area within which the encroachments must fall if they are to have the benefit of that easement. It may be arguable that the actual creation of that easement on the title may be what has been described in some of the cases as a "blot on the title" which may justify some compensation.
20 However, I have come to the conclusion that this is not so. If I grant an easement, the easement will be only for the maintenance on the defendant's land of the presently existent footings of the factory complex on the plaintiff's land. In my view I should, in the creation of that easement, require the specification of an area within which encroachments protected by the easement may occur, but the easement will not affect all of the land within the indicated area but only such of the land within the indicated area as actually contains footings. Any encroachment of footings beyond the indicated area will not be protected by the easement to be granted. This may to some extent seem a strange result, but it is necessitated by the form of the evidence led before me by the plaintiff, which is identical with the form of the evidence led in this regard before Talbot J. Further definition of the actual extent of the footings has been prevented by the defendant's unwillingness to permit a full investigation upon his land. Bearing in mind the minimal nature of the intrusion into the defendant's property rights and the fact that that minimal nature will be apparent on the face of the title, there will in my view be no "blot on the title" which requires compensation. In those circumstances, if I grant an easement, bearing in mind that the easement will cover only the minimal actual encroachments by footings; that this will be made clear upon the face of the easement; and both the findings of Talbot J and the conclusions that flow from the evidence before me that there is no inconvenience or restriction of user imposed on the defendant, my assessment of the diminution of the market value of the land by the imposition of the easement is nil. Furthermore, on the evidence there will be no associated costs caused to the defendant and, bearing in mind my conclusion in [24] below, there will on all the evidence be no disturbance of the defendant which could constitute insecurity or loss of amenities.
21 The specification of compensation in an order granting an easement under s 88K can be dispensed with only if there are special circumstances. The nature of the expression "special circumstances" in this provision was considered by Young J in Wengarin supra at [14]. Its meaning was more generally discussed by me in Expile Pty Ltd v Jabb's Excavations Pty Ltd [2002] NSWSC 851. Special circumstances in short are circumstances of the instant case which are different from the normal case. The special circumstances in this case are as follows. The appropriate compensation for diminution of value of the land is nil. There are no associated costs, insecurity or loss of amenities to be compensated for. The defendant has not accepted the plaintiff's offers to enter and remove the encroachments at no expense to the defendant. By reason of those special circumstances I determine that compensation is not payable.
22 The four requirements mentioned by Young J having been fulfilled, I turn now to the general exercise of discretion involved in the grant of a s 88K easement. A number of matters were put to me by Mr Milner, appearing in person. Most of them did not have relevance to the exercise of the Court's discretion under s 88K. However, there was one reason that he advanced when asked his reason for opposition which does undoubtedly have cogency. He said, "It's my land, I have paid for it." As is apparent, both from general principle and from statements made in the various judgments of this Court relating to the exercise of its discretion (Tregoyd at 15,854; Durack at 16,449; Hanny at 56,875) it must always be borne in mind in exercising the discretion that this is an expropriatory statute which trenches upon rights of private property. Although it is not mentioned until now, I have not at any time lost sight of this important, indeed basic, principle in my approach to the evidence and the decision in this case. Nonetheless, as I made plain in Tregoyd, if the requirements of s 88K are fulfilled the jurisdiction under that section is enlivened and, subject to the exercise of the Court's discretion, then the right of private property must pro tanto yield to the dictates of the section.
23 The conclusion I have come to on all the matters before me in this case, including the reasonableness of the requirement and the conduct of the respective parties, is that an easement ought be imposed in favour of the plaintiff under s 88K of the CA. As I have already indicated, the easement should be limited to the maintenance of the encroachments constituted by the presently existing footings and it should be further constrained by definition of the relevant footings as footings falling within a strip 150 mm wide along the common boundary adjacent to the factory complex. I have determined that compensation should not be payable.
24 At one stage Mr Bedrossian, of counsel for the plaintiff, applied to enlarge the application by including an easement to go on the defendant's land to maintain the footings. However, the evidence does not show any need to maintain the footings insofar as they encroach on the defendant's land. It is clear on the evidence they could be removed without any harm to the factory complex. Such an easement might impair the defendant's rights of use (including future development) in a way which the easement I propose to grant does not. I shall not grant any such easement.
25 Short minutes may be brought in before me to give effect to this decision.