Division 6 of Part IV of the Land Act 1996 gives the claimant a right to have a court determine the amount. Two conditions have to be met before it opens.
Section 30(2) — when the right arises
Where a claim for compensation has been accepted by the Minister, and either:
- (a) three months have elapsed since the claim was made and the compensation has not been determined by agreement; or
- (b) before that period has elapsed, the Minister has made a written offer which the claimant has not accepted (nor accepted any other amount offered),
the claimant may institute proceedings against the Minister in a court of competent jurisdiction for determination of the amount — unless an agreement to determine the compensation by arbitration is in force.
The claim must first have been accepted. If it was rejected, the route is different — a section 22 action for a declaration that you held the interest. Section 30 is about the amount; section 22 is about the entitlement.
Which court
For section 30, a “court of competent jurisdiction” means:
- the National Court; or
- a District Court that has jurisdiction (i) in actions for the recovery of debts up to an amount not less than the compensation claimed, and (ii) in the locality in which the land or part of it is situated.
For customary land, section 19 substitutes the Land Titles Commission for the National Court throughout Part IV.
Section 30(6) — the costs trap
If proceedings are brought in the National Court and that Court considers they might have been brought in a court of summary jurisdiction, costs awarded to the claimant are allowed only on the scale applicable in the lower court — unless the National Court certifies that special circumstances made it proper to start in the National Court.
For a modest claim, that difference can consume much of what you win. Check the District Court’s monetary limit against your claim before filing.
How the proceedings run
- The writ or summons must state the amount claimed and the interest in respect of which it is claimed (s 30(3)). Plead the figure and the interest precisely.
- The proceedings are heard and determined as nearly as may be in the same manner as actions in contract in that court (s 30(4)).
- Except with the consent of the parties, the court shall not direct a reference to arbitration (s 30(5)). Having chosen the court, you cannot be pushed into arbitration against your will.
Section 30(7) — other claimants can be brought in
Where proceedings have been instituted in relation to an interest in land, the court may, on the application of the Minister, order that any other person be joined — a person who:
- (a) has claimed compensation arising out of the acquisition of that interest, or of another interest in the land acquired at the same time; or
- (b) appears or claims to have had, immediately before the date of acquisition, an interest in the land acquired at the same time.
This exists because of the inconsistent-claims bar in section 21(2)(b). Rather than the State paying twice, or a second claimant being shut out, competing claims to the same land can be resolved in one proceeding. If you hear of such an action affecting land you claim, take part in it.
Sections 44 to 46 — getting paid after you win
A determination is not yet money. Under section 44, the amount is paid when the person has:
- (a) made out, to the satisfaction of the Attorney-General, a title as at the date of acquisition to the interest for which compensation is payable;
- (b) produced or surrendered all deeds and documents evidencing that title which the Attorney-General reasonably requires; and
- (c) executed such documents as the Attorney-General reasonably requires.
Paragraph (a) does not apply where a court has already declared or determined, under section 22, 31 or 46, that the claimant held the interest immediately before the date of acquisition. Winning a declaration removes that step.
Where a person claims to be entitled to compensation determined by agreement or by a court — including an amount deposited in the National Court — the National Court may, on that person’s application and on proof of title immediately before the date of acquisition, declare the person entitled and order payment, on such conditions as it thinks fit.
And where the Court orders payment of an amount that had been deposited in Court, it may order interest at the rate of 3% per annum for a period after the date of the deposit.
Sources
- Land Act 1996 — ss 19–23, 30, 31, 44–46; Part IV Divisions 6 and 8
- Claims By and Against the State Act 1996
- Constitution — s 53
- Ready Mixed Concrete Pty Ltd v The State [1981] PGNC 91; [1981] PNGLR 396
Before relying on anything here, read the current text of the Land Act 1996 and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.