Rethinking Expropriation Law III

1 Introduction
Compensation for Expropriation 13
Jean du Plessis and Jacques Sluysmans
1.1 Introduction 13
1.2 Framework 13
1.3 Who Counts? 15
1.4 What Is Counted? 18
1.5 Conclusion 20

2 Eminent Domain and Regulatory Takings
Towards a Unified Theory 21
Hanoch Dagan
2.1 Introduction 21
2.2 The Task 22
2.3 Three Lessons from Eminent Domain Law 23
2.3.1 Good Citizens Are Not Expected to Sacrifice 23
2.3.2 Important Projects Need Not Thwart Compensation 26
2.3.3 Home Is More Than Land 28
2.4 Three Lessons from Regulatory Takings Law 30
2.4.1 Compensation Is Not Always Justified 30
2.4.2 Distribution Always Matters 33
2.4.3 Compensation Rules as a Social Compact 36
2.5 Concluding Remarks 41

Part I Who Counts? 43

3 Avoiding the Worst-Case Scenario
An Assessment of Compensation Eligibility Requirements Applicable to Indigenous Peoples and Local Communities in 30 Countries 45
Nicholas K. Tagliarino
3.1 Introduction 45
3.1.1 Background 47
3.2 The Right of IPLCs to Compensation as Established by the VGGTs and Other International Instruments 50
3.3 Background and Methodology 52
3.4 The Value of this Legal Analysis 55
3.5 Research Findings and Analysis 56
3.5.1 Compensation for Formally Recognised Tenure Rights Held by IPLCs 57
3.5.2 Compensation for Formally Recognised IPLC Tenure Rights Regardless of Whether Those Rights Are Registered 59
3.5.3 Compensation for Formally Recognised IPLC Tenure Rights Regardless of Whether the Land Is Developed, Cultivated, or Has Improvements 63
3.6 Additional Limitations on ILPC Rights to Compensation 65
3.6.1 Legal Definition of ‘Community Land’ 65
3.6.2 Time Requirements 68
3.7 Suggested Avenues to Pursue 69
3.8 Appendix: Compensation Eligibility Indicator Findings 71

4 Development with Impoverishment
Displacement, Resettlement and Inadequate Compensation in India and Nigeria 87
Maartje van Eerd
4.1 Introduction 87
4.2 Development-Induced Displacement and Resettlement 87
4.2.1 Public Interest and Its Dilemmas 88
4.2.2 Guidelines of Selected International Development Banks 89
4.2.3 Complications with Eligibility 91
4.2.4 Guidelines and Complications with Respect to Compensation 92
4.2.5 International Guidelines on Development-Induced Displacement and Resettlement 94
4.2.6 The Right to Adequate Housing and Protection against Forced Evictions 96
4.2.7 The Multi-Dimensional Impact of Displacement and Resettlement 97
4.3 Case Studies and Lessons Learnt from the Practice of Displacement, Resettlement and Compensation in India and Nigeria 99
4.3.1 India 100
4.3.1.1 The Neo-Liberal Paradigm and Its Impact on Displacement and Resettlement in India 100
4.3.1.2 Legal Framework for Displacement and Resettlement 102
4.3.1.3 Housing Policies at the National Level 104
4.3.1.4 Housing and Slum Policies in Tamil Nadu 105
4.3.1.5 Resettlement Issues in Chennai 106
4.3.2 Nigeria 108
4.3.2.1 The Historical Context of Abuja 108
4.3.2.2 Urbanisation in Abuja 108
4.3.2.3 The Legal Framework of Nigeria With Regard to Land and Housing 109
4.3.2.4 Land Ownership, the Land Use Act, Expropriation and Compensation 110
4.3.2.5 The Abuja Master Plan, Relocation, and Resettlement 113
4.3.2.6 Forced Evictions in Abuja 115
4.4 Conclusion 117

Part II What Is Counted? 121

5 Full Compensation, Fair Compensation or No Compensation in Expropriations for Land Reform
A South African Perspective 123
Antonie Gildenhuys
5.1 Introduction 123
5.2 Expropriation 125
5.2.1 Formal Expropriations 125
5.2.2 Constructive Expropriations 126
5.2.3 Right to Compensation for the Expropriation of Land 127
5.3 Standards and Norms for Determining Compensation for Expropriation in Various Jurisdictions 129
5.3.1 Constitutions That Require Compensation to Be Just, Fair, Full or Adequate 129
5.3.2 Constitutions That Contain Different or No Norms for Compensation 131
5.3.3 Compensation under the European Convention on Human Rights 134
5.3.4 Constitutions That Require Compensation to Reflect an Equitable Balance of Competing Interests 135
5.4 Determination of Compensation in Terms of the South African Constitution 137
5.5 Market Value as a Factor in the Determination of Compensation 141
5.6 Land Reform in South Africa 144
5.6.1 Determination of Compensation in Expropriations for Land Reform 145
5.6.2 Funding Land Reform 150
5.6.3 Administration and Implementation of the Land-Reform Process 154
5.7 Conclusion 155

6 A Law-and-Economics Perspective on Fair Compensation in Transnational Land Deals in the Context of Customary Tenure Regimes 159
Marcello de Maria
6.1 Introduction 159
6.2 Literature Review 163
6.2.1 The Impact of LSLAs on Local Populations and the Fair Compensation Issue 163
6.2.2 To Compensate or Not to Compensate? The Optimal Compensation Rule 168
6.2.3 Towards a Fair (Operational) Definition of Fair Compensation in LSLAs 174
6.3 A Theoretical Model for Fair Compensation in LSLAs 178
6.4 Discussion 184
6.4.1 The Nature of the Investment and the Features of the Concession Matter 184
6.4.2 Land Value or Land Values? 185
6.4.3 Players’ Behaviour, Bargaining Power, and Information 187
6.5 Concluding Remarks 189

7 How the Determination of Compensation Is Influenced by the Disjunction between the Concepts of ‘Value’ and ‘Compensation’ 191
Elmien du Plessis
7.1 Introduction 191
7.2 Expropriation: General Remarks Regarding Compensation 192
7.2.1 Authority to Expropriate 192
7.2.2 The Compensation Requirement 194
7.2.2.1 Introduction 194
7.2.2.2 The Compensation Standard in the Constitution 195
7.2.3 The Expropriation Act 200
7.2.3.1 Market Value 201
7.2.3.2 Solatium 204
7.2.3.3 Interest 204
7.2.4 Some Remarks about the “Compensation Standard” and Value 205
7.3 Who May Determine Compensation? 205
7.4 Who Determines Value? 209
7.4.1 Property Valuation Act 17 of 2014 212
7.4.1.1 Introduction 212
7.4.1.2 The Act 212
7.4.2 The Draft Regulations Issued in Terms of the Act 215
7.4.3 Valuation for Land Reform Purposes: Guidelines from the Department of Land Affairs 216
7.5 Conclusion 221

8 Compensation Claims and the New Function of Quasi-Judicial Appraisers in Israel 223
Yifat Holzman-Gazit
8.1 Introduction 223
8.2 Compensation for Expropriation in Israel: Legal Principles 224
8.3 Valuation Phases in the Process of Expropriation 229
8.4 The New Function of QJ Appraisers 231
8.5 QJ Appraisers and Compensation Claims 234
8.5.1 Two Venues for Adjudication 234
8.5.2 Procedure and Fees 235
8.6 Placing Compensation Decisions in Context: The Valuation Practice and Market Prices 238
8.7 Conclusion 241

List of Contributors and Editors 243