All perfect praise be to Allah, The Lord of the Worlds and may His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
In light of Islamic Jurisprudence, receiving compensation against damage is lawful, but there is no room, here, for further elaboration. The Glorious Quran contains many an evidence sanctioning the reception of monetary compensation, and Muslim jurists have put this rule into effect. Almighty Allah, said, "and pay compensation to the deceased’s family"{An-Nisa`, 92}. In this verse, Allah, The Exalted, confirms the principle of monetary compensation in case of accidental killing.
As understood from the above question, it seems that the street was delineated before the trees were planted and the cesspools were dug. Accordingly, this outlined area becomes a place for the common good, and so the owner of the land is entitled to a compensation against that area, and whatever is built, planted or dug after 1983 represents an act of aggression against public property and no compensation is due as a result. Rather, that owner is accused of aggression and misconduct. In addition, any compensation, which the owner received for the trees planted after 1983 or the cesspools dug after 1983, should be given back and he should also be held liable for any damage there. However, the compensation received for the trees planted after 1983 as well as the cesspools dug after 1983 is lawful. And Allah knows best.