Compensation for Taking When Both Equity and Efficiency Matter

Paul Niemann and Perry Shapiro

Chapter 4 in Property Rights, 2010, pp 55-76 from Palgrave Macmillan

Abstract: Abstract Darryl Kerrigan is the master of a modest house at 3 Highview Crescent, Cooloroo, on the edge of the Melbourne International Airport. In The Castle, an Australian movie made in the early 1990s, Darryl receives an official notice that his property is to be condemned to make way for an airport expansion. The house with its many unique modifications, including a kennel for his racing greyhounds, is Darryl’s “Castle.” Because it is not just a house it is a “home” he is determined to remain and employs his friend, the solicitor Dennis Denuto, to challenge the condemnation. Denuto, a small time solicitor whose legal experience stretches to doing real estate conveyances, is well out of his depth with this case. Dennis knows Darryl is fighting the “big boys” on an issue that is clearly a constitutional challenge. Nonetheless, Denuto, as an act offriendship, agrees to represent Darryl. In response to a question put by the judge in the first court appearance, Denuto raises a constitutional challenge to the condemnation. Asked directly about the constitutional point, Denuto responds, “It’s the vibe of it [the Australian Constitution].” The judge is puzzled since she cannot recall any part of the Australian constitution that deals with the vibe. Naturally enough, Darryl-Denuto loses the first round. The movie continues to a victorious conclusion for Darryl, when a distinguished QC takes up the case. In the High Court, bewigged judges and all, Darryl’s attorney argues that Section 51 of the Australian Constitution which states “The Parliament shall … have the power to make laws for … the government of the Commonwealth with respect to:….(xxxii) The acquisition of property on just terms….” is the vibe.

Keywords: Nash Equilibrium; Subgame Perfect Equilibrium; Public Project; Project Size; Eminent Domain (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-10779-3_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230107793

DOI: 10.1057/9780230107793_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().