COMPENSATION is r, term used to describe the recompense awarded to an individual in return for some right or property he has been forced by statute to give up to another. The common law has never allowed the rights or property of any one to be at the mercy of a covetous and more powerful iieiglthour. It has been apparently so careful of the rights of the individual, as to regard with extreme jealousy and distrust any operations against them on the part of the monopolist, the capitarist, or the merely socially-powerful. Not even the general good of the community has been allowed to weigh against the property rights of the individual. The maintenance of such a principle of law was no doubt beneficial, and even necessary, in those days of our history which preceded modern civilisation. But since the development of modern trade, and the introduction of modern scientific methods and facilities, there has grown up such an intricate con dition of both opposing and co-operating individual rights, as to make the hard and fast application of this principle of the older law an impossibility and even an injustice.
The question of compensation has always usually arisen in connection with such undertakings of a public nature as railways, water - works, harbours, docks, and the improvement of towns, in which cases the under takings would have been impossible had there been no power conferred upon the promoters under which they could compulsorily effect purchases of property. Until 1845 the practice was to confer such 'towers in the private or other Act of Parliament by which the undertakings were authorised. But in this practice was involved two serious disadvantages. For one thing the insertion in each Act of a large number of special clauses led to a great additional expense ; for another, there was always considerable contention of a similar nature in the settling of the clauses in every Act—attempts being made to either extend or limit the scope of the clauses commonly inserted. Accordingly, to remedy this evil and to supply one general authority as to the practice in compulsorily taking over private property and giving compensation therefor, there was passed the Act known as The Lands Clauses Consolidation Act, 1845. This Act is to-clay the leading general
statute which governs this subject. In addition thereto, however, there have been enacted, amongst others, the Railways Clauses Consolidation Act, 1845 ; the Water-works Clauses Act, 1847 ; the Markets and Fairs Clauses Act, 1847 ; the Harbours, Docks, and Piers Clauses Act, 1847 ; and the Towns Improvement Clauses Act, 1847.
When, therefore, the owner or tenant of any property has been approached by the promoters of a public undertaking who have a power of compulsory acquisition, he should refer to those of the above or similar Acts which would be appropriate to his particular case. The first step by the promoters is the service of a notice to treat. But this notice to treat gives no rights to the promoters beyond that of entering upon the property to survey it. To acquire any further rights they must pay a deposit. But after a notice ;u treat no onerous interests can be created ; nor can interests be charged to the prejudice of the promoters. Where the promoters give notice as to the whole of the property, there ,need not be very much difficulty in settling the price and compensation. It is when the promoters only desire to acquire some portion thereof that difficulties arise. In connection with this, the owner of the property should remember that, as a rule, tie empAering Act confers upon him an important right, viz. that he shall no at any time be required to sell or convey to the promoters of the undertaking a part only of any house, or other buildino. or manufactory, if he is willing and able to sell and convey the whole thereof. If he desires to take advantage of this right, ha, should be careful to reply to the notice to treat with what is called a counter-notice. The compensationsmay be ascertained, as a rule, either by the magistrates, a surveyor appointed by the magistrates, an arbitrator, or a jury. The magis trates are the proper tribunal where the claimant has no greater interest in the property than n'year. Generally speaking, the claimant has his choice whether he will submit his claim to an arbitrator or to a jury. See LANDS CLAUSES.