COMPENSATION CASE

New Zealand Times, Volume XLIII, Issue 10064, 31 August 1918, Page 8

COMPENSATION CASE

WILLIS STREET WIDENING THE DUKE OF EDINBURGH HOTEL. The caso was continued in tho Supremo Court yesterday, before Mr Justice Husking, in which compensation is claimed from the Wellington City Corporation by the Duke's Buildings, Lid., iu connection with the Willis street widening scheme. The claim is tor £11,740 on account of the reduction of the Duke of Edinburgh Hotel site. Associated with His Honour'

are Messrs C. B. Morisou, iv.C, and G. H. Scales, as assessors, representing

the City Council and the Duke's Building's, Ltd., respectively.. Mr M. Myers and Mr G. G. Watson appear for the plaintiff company; and Mr A. Gray, K.C., and Mr J. O'Shea for tho City Council.

Harry A. Shophard, land agent, gave evidence agreeing with the valuation of Mr Ames of properties in the neighbourhood of the Duke of Edinburgh Hotel corner. Tho street-widening, in his opinion, would have a generally beneficial, effect.

James Morice, assistant engineer to tho City Corporation, described the advantages to be gained by the. streetwidening. At present the space between the tram rails and the footway at the corner was only four feet. With tho widening tho rail s would be from seven to eight feet from the kerb, and the overhang of the- footboard of a tramcar would be about five feet away By cutting off ten feet from tho hotel the roadway would gain eight feet nine inches, and tho footway ono foot throe inches. William H. Morton, city engineer, explained that tho widening scheme was to continue the new building lino from Customhouse quay to Manners street.

Robert F. Drummond, building inspector of the City Corporation, gavo evidence indicating that in any case reconstruction of the Duke of Edinburgh Hotel would bo necessary. This closed the case for the corporation.

Mr Gray, addressing tho court, pointed out that Mr Ames had testified that tho value of the land on the north side of the Duke of Edinburgh Hotel was £250 a foot. An attempt had been made to establish a spurious value by the square foot for the hotel corner. It was submitted for the defeuce that any assessment on tho square foot principlo was' wrong.

His Honour: "I think that it is an absolutely fallacious method of arriving at values unless you have equa? frontages and somewhat similar depths. It is on the square-foot principle that an apparent increase of value has been arrivof] at in this case."

Mr Gray, continuing, emphasised tho fact that the main means of revenue for the hotel was not being interfered with. The property-owners for years past had known that the area must be reduced in the public interest. Yet they had gone on with an addition to tho buildings. His Honour: "Do you suggest by their alterations they enhanced their claim in any way?" Mr Gray contended that in the building alterations better provision could have been mado for tho prospective decrease of land. Tho plaintiffs had refrained deliberately from making provision for tho anticipated loss. The taking of the land and the addition to the hotel were practically simultaneous. What tile plaintiffs were entitled to was simply the freehold value of the land takou. and compensation for a little inconvenience on account of reconstruction which would vastly improve tho accommodation of the hotel. At present there was unutilised space, and in the plans supplied by the corporation for tho removal of an old staircase the uumbor of rooms might be increased. ' His Honour: "The main point about the rearrangement is tho getting of a frontage for two shops ■in "Willis street."

Mr Gray pointed out that there woro other advantages to be secured by tho | betterment of the frontage in relation to a crowded thoroughfare. Overtures had been made to the plaintiffs for some basis of settlement, without any response, and tho court was left to guess what they were entitled to receive under tome such scheme of rearrangement as had been suggested. Ho contended that the loss of the strip of land would be more than compensated for by tho improved frontage to Willis stroet. Having regard to the improvement secured by tho widening of the street, it was submitted that tho claimants should not receive anything for the loss of tho piece of land. Their actual loss would be through tho disturbance of business during alterations and the cost of the reconstruction.

Mr Myers, in his address to the court, said that tho one outstanding feature of the case, which no amount of sophistry could overcome, was that the plaintiffs had lost 884 square feet of one of the most valuable sites in Wellington, multiplied by tho number of floors that could bo reasonably built on such a sito. As to possible results of the alteration to tho hotel, it was admitted that they were problematical, but it must bo remembered that the settlement must bu for nil timo, and it was customary for the court to ap* proach these cases in a libera' spirit. It was conceded that tho plaintiffs woro entitled to tho intrinsic value of tho land, the coat of removal and reorganisation, tho valuo of material destroyed, and tho damage for disturbance. Even on this basis tho plaintiffs should bo entitled to substantially over £b'oOo, but tlua did not tako into account- contingent losses, compulsory taking, architects fees, and extras. The plaintiffs scouted the idea of betterment. Tho comparison with other neighbouring sites was futile, because they wore not corners. It was contended, on just grounds, that tho intrinsic valuo of tho land was £225 per foot, and the area taken amounted to 12ft 4in. Tho court reserved judgment.