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W/2007/54
In 1994, some of Mr V’s land was acquired by his local water company for the installation of a large water tank. The tank was built and became operational the same year. Mr V said that, over the next eight years, there was a lot of ‘coming and going’ to enlarge and change the facility.
The parties to the agreement were Mr V, the local water company and the local council. Come 2007, no compensation had been paid to Mr V and no agreement had been reached on an amount. The issue had escalated into an ongoing dispute. Looking to bring it to a head, M r V had his solicitor write to the water company seeking compensation well in excess of $10,000 for land acquisition, solicitor’s fees and interest backdated to 1994. The water company had offered a total of $10,000.
Contacted by EWOV, the water company said that, over the years, both parties had contributed to the protracted negotiations. It maintained its offer of $10,000 was fair and reasonable, but said it was prepared to meet with Mr V to discuss an ex-gratia payment.
In settlement of the complaint, Mr V accepted
the water company’s subsequent offer of $10,000 in compensation, an
ex-gratia payment of $21,355 — mostly for interest since 1994, but also
recognising the intangible consequences of the land acquisition —
reimbursement of legal costs of $5,049 and valuation costs of $660. The
appropriate documentation to register the acquisition was lodged.
We arranged for a water company representative to visit Mr V’s property to discuss his concerns directly. Important in this process was ensuring the relationship between the parties was maintained, because the water company’s assets were on Mr V’s property. Having visited the property, the water company advised that it was now able to fully appreciate Mr V’s concerns.
In the case of this longstanding issue, a site visit was pivotal to the
water company’s understanding and acknowledgement of the customer’s
concerns. This case also highlights the capacity of alternative dispute
resolution methodology to resolve complaints, which may otherwise
remain unresolved, or be dealt with in a legal forum.
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