A three-man Papua New Guinea Supreme Court bench has dismissed a compensation claim by landowners in Chimbu seeking money over work on the Highlands Highway.
The landowners wanted the Works and Implementation Department to pay them compensation of $US35 million dollars.
In a unanimous decision dismissing an appeal by more than 3200 landowners, the court also ordered them to pay the State's legal fees for the case which stretches back nine years.
The Minister for Works and Implementation, Michael Nali, welcomed the decision, saying the claim was misconceived and speculative.
He said the ruling sent a clear message to refrain from raising false claims against the State.
Mr Nali said the case concerned the alleged removal of structures and improvements within the 40-metre road corridor for the work done as part of the Highlands Highway Rehabilitation Programme between 2006 and 2008.