diminution in value

Australian Residents Seek Compensation for Metro Tunnel Under Their Homes

Residents in Yarraville, Australia have taken legal action seeking up to 10% of the value of the address in compensation for a metro tunnel being dug under their homes. Adrian McMillain, a lawyer for the case states that “It comes down to the pretty basic question, ‘Would you rather buy a house that was above a tunnel or one that wasn’t above a tunnel?’.

Jacinta Allan, the Transport Infrastructure Minister, has stated that the prices of homes on these tunnels have been unaffected due to the tunnel being dug at least 15 meters underground. Michael O’Brien, the Opposition Leader, stated that the landowners should be fairly compensated if projects impact the property’s value.

McMillain claims market evidence suggests that there is a diminution in the value for the properties above this tunnel. McMillain also claims that property owners are entitled to the land to the center of the earth because the owners all have titles created before December 1891. Therefore, they are entitled to compensation for the taking of the land.