7/27/2019 Without Prejudice Letter to Allens 20 July 2012 (2) Wide Bay Water lenthalls dam gates upstream risks letter of off

1/2

MEMBER OF THE KENNEDY STRANG LEGAL GROUP

P a r t n e r & W r i t e r :C o n t a c t :D i r e c t t i n e :E m a i l :A 8 N :

P e t e r A r c h o s20 July 2012 K r i s t a M a h o n e y0 7 3 2 3 1 8 8 0 8B y Email : bill. mccredie@al}ens, com.au

eve,lynch@allens.com.aukmahoney@ttiymac.com.au7 9 7 6 3 9 5 3 9 9 1P A A : 130003u r R e f :

Bill McCredieEve LynchAliensRiverside Centre123 Eagle StreetBrisbane Q LD 4000 WITHOUT PREJUDICE SAVE A S TO COSTS

Dear ColleaguesLand Court o f Queensland proceedings: - Allan -v - Fraser Coast Regional CouncilThank y o u f o r keeping your client's offer open until 5 pm today. W e have n o w been able to confer with o u r clients.Your offer i s n o t acceptable t o o u r clients, and i s rejected.It seems t o u s , however, that some aspects o f t h e claim a re capable o f resolution o n t h e information presentlyavailable, a n d other aspects o f t h e claim m a y n o t be able t o be resolved until joint reports a r e available.With a view t o giving your client a better understanding o f o u r client's position, we enclose a copy o f a final draftreport prepared by o u r clients' valuer M r P a t Lyons.It is apparent from t h e "pleadings" that o u r clients a r e significantly apart o n t h e issues o f land value, severance a n dinjurious affection. W e propose t o p u t those issues t o o n e side f o r t h e moment, to await receipt o f t h e valuers' jointreport.Your letter o f offer deals with three other issues we would like to discuss further, being:-(a ) disturbance i n t h e form o f legal a n d professional fees;(b) a further s u m o f $350,000 to assist o u r clients i n t h e relocation o f their dwelling, th e purchase o f a n e w

shed a n d ancillary works;(c ) construction o f a n e w boundary fence a t your client's cost.In relation t o disturbance, o u r clients would be prepared to settle t h e disturbance claim f o r legal a n d professionalcosts in th e s u m o f $260,000, together with interest o f $64,320, calculated a s follows:-(a ) $53,625 being interest o n $130,000 f o r 7 . 5 years (since 1 January 2005 - s e e t h e claim dated 13

December 2004) a t 5 . 5 % ;(b) $7,410 being interest o n $57,000 in respect o f hydraulic engineering fees f o r 2 .6 years (since December

2009) a t 5 % ;LEVEL 2 7 , 1 2 CREEK STREET, BRISBANE Q L D 4 0 0 0 G P O B O X 2 4 5 , B RIS B A NE Q L D 4 0 0 1P . + 6 1 7 3 2 3 1 8 8 8 8 F . + 6 1 7 3 2 2 9 0 8 5 5 www.thymac.com.auA T I J U A r i : ; > H U N - ; * r . h ' A = ; o . ! r : = : .Liabi l i ty l imi ted b y a scheme approved under Professional Standards Legis lat ion.

A B N 7 9 7 6 3 9 S 3 9 9 !f S ' T ! KS. V I iON A l; A l l I A N C I:( i [ i A v; i 11; M s

7/27/2019 Without Prejudice Letter to Allens 20 July 2012 (2) Wide Bay Water lenthalls dam gates upstream risks letter of off

2/2

20 July 2012ill McCredie and Eve Lynch 2

(c ) $3,285 being interest o n $73,000 f o r 1 year a t 4 .5 % .Th e interest rates adopted a re those published o n t h e Land Court's website.In relation t o t h e s u m o f $350,000, y o u will s e e from M r Lyons' report ( p .28 a nd Annexure F) that costs f o rrelocating t h e house a re $357,600 exclusive o f GST. I f t he house is relocated, s o t o o must th e goods a n d chattelsi n a n d around th e house. A draft list o f t h e goods a n d chattels i s in Annexure C (pp . 17-20) o f M r Lyons' report.Making a n allowance f o r GST, a figure o f $400,000 i s a n appropriate figure f o r relocation o f t h e house a n d goodsa n d chattels.Ou r clients would be prepared to settle this aspect o f their claim o n t h e following bases:-(a ) that 18 months be allowed f o r completion o f t h e reiocation, being 6 months to obtain building approval a n d

12 months to carry o u t th e works;(b ) a t t h e e n d o f t h e 18 month period o u r clients will indemnify your client against a n y risks present in t h e area

bounded b y t h e house yard ( t he immediate fence line surrounding t h e house) o n t h e Cullen & Cooper m a p ;(c ) that your client will allow a n y reasonable extension o f t h e 18 month period f o r relocation occasioned by

weather conditions o r ground conditions attributable t o weather conditions,Could y o u assist u s b y identifying t h e n e w shed a n d ancillary works referred t o i n your letter o f offer. Ou r clientsalso claim $325,000 f o r t h e relocation o f other farm infrastructure. C a n t h e n e w shed a n d ancillary works referredt o i n your letter be correlated with a n y o f t h e infrastructure described a t p .44 o f M r Lyons' report? If so , would y o uplease provide that correlation,A s t o th e boundary fencing, o u r clients propose t o allow your clients to construct such a fence a t your client's cost,if your client desires t o d o s o . F o r that purpose, o u r clients will allow access to their land upon reasonable notice o fentry being given, a n d your client making good a n y damage caused by carrying o u t th e fencing works.W e would also a s k whether there is a n y prospect o f restoration o f riparian water rights under s ,20 o f t he Water A c t2000. W e understand there have been some discussions about this i n t h e past. O n e o f o u r clients' claims i s f o r$76,998 f o r diminution in land value by reason o f loss o f access t o water. Is this claim capable o f being resolvedby a restoration o f water rights?W e would a s k that y o u revert t o u s a s soon a s practicable after y o u have h a d a n opportunity to consider M r Lyons'draft report. In particular, we hope that t h e channels o f communication between o u r firms c a n b e kept open with t h eprospect o f resolving discrete aspects o f t h e claim a n d narrowing t h e issues in dispute.Yours faithfully

Peter ArchosPartner

E n c l o s u r e