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Public Works Act 1981

Compensation - The award

97: Compensation in case of limited interests, etc

You could also call this:

“Compensation rules for partial land interests or damaged land”

If you only have a partial interest in some land and it’s taken for a public work, or if your land is permanently damaged, you might get compensation. Here’s how that compensation is handled:

If it’s $5,000 or more, the money goes to Public Trust. They will use it based on what the High Court says, for things like paying off debts on the land, buying new land, moving buildings, or investing it.

If it’s between $250 and $5,000, Public Trust gets the money and can use it for similar things without asking the court. But they can ask the court for advice if they want to.

If it’s $250 or less, the money goes to the people who usually get money from the land. If those people can’t manage their own affairs, it goes to their family members or guardians instead.

If you have a partial interest in the land that you can sell, you can still get compensation for that part.

If a local authority has a partial interest in the land, they might get the compensation money instead. They have to keep this money separate and only use it to improve other similar land in the same area.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM46950.

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98: Public Trust may invest compensation money, or

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Part 5 Compensation
The award

97Compensation in case of limited interests, etc

  1. If compensation is awarded or compensation or purchase money has been agreed to be paid by the Minister or a local authority in respect of—

  2. any land taken or purchased from any person having a partial or qualified interest only in the land and not entitled to sell or convey it; or
    1. any permanent injury done to any land in respect of which a person has a partial or qualified interest only and does not have the right or capacity to sell it—
        1. the compensation or purchase money shall be dealt with as follows:
      1. if the compensation or purchase money amounts to $5,000 or more it shall be paid to Public Trust; and Public Trust shall apply it, upon an order of the High Court made on the petition of any person claiming any estate or interest in the money, to 1 or more of the following purposes:
        1. to the discharge of any debt or encumbrance affecting the land, or affecting any land settled therewith, or to the same or like uses, trusts, or purposes:
          1. in the purchase of other land to be conveyed, limited, and settled upon the like uses, trusts, or purposes:
            1. in removing any buildings on the land, or substituting others in their place:
              1. in the purchase of such securities as the High Court may direct, to be settled in the same manner as the land:
                1. in payment to any party becoming absolutely entitled to it:
                2. if the compensation or purchase money is more than $250 but less than $5,000, it shall be paid to Public Trust, and Public Trust may apply it to any of the purposes referred to in paragraph (c) without an order of the High Court, but in any such case Public Trust may, if it thinks fit, apply to the High Court for directions as to the purposes for which the compensation or purchase money shall be applied:
                  1. if the compensation or purchase money is not more than $250 it shall be paid to the parties entitled to the rents and profits of the land; or, in the case of disability or incapacity of such parties, to their respective spouses, guardians, committees, or trustees, as the case may be.

                    1. The provisions of this section shall not prevent any person who had a partial or other qualified interest in the land to which interest he is solely entitled, and which he may absolutely sell or dispose of, from receiving any compensation or purchase money in respect of any interest to which he may be declared entitled under any award, or which has been agreed to be paid to him.

                    2. Notwithstanding the provisions of subsection (1), where the person having the partial or qualified interest in the land and not entitled to sell or convey it is a local authority, the compensation money or purchase money may be paid to the local authority.

                    3. The local authority shall record any money paid to it under subsection (3) in a separate account and shall invest it separately; and shall expend it only for the permanent improvement of other land held for the same or like uses, trusts, and purposes or for all or any of the purposes set out in subparagraphs (i) and (ii) of subsection (1)(c), so that such application of the money will benefit persons substantially in the same locality.

                    Compare
                    • 1928 No 21 s 92
                    • 1952 No 58 s 10
                    Notes
                    • Section 97(1)(c): amended, on , by section 170(1) of the Public Trust Act 2001 (2001 No 100).
                    • Section 97(1)(d): amended, on , by section 170(1) of the Public Trust Act 2001 (2001 No 100).