(1) If a person
suffers loss of or damage to property as a direct result of an authorised
operation, the State is liable to pay to the person compensation as agreed
between the State and the person or, in default of agreement, as determined by
action against the State in a court of competent jurisdiction.
(2) Subsection (1)
does not apply if —
(a) the
person suffered the loss or damage in the course of, or as a direct result of,
engaging in any criminal activity (other than criminal activity that is
controlled conduct); or
(b) the
person was a participant involved in the authorised operation at the time of
suffering the loss or damage.