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[2016] NSWCA 7
Court of Appeal (NSW)
2015-10-01
Basten JA, Ward JA, Pain J, Mr P
Original judgment source is linked above.
Background
(a) scope of ground 1
(b) ABM's claim for reduction in market value
Replacement of caretaker's house - ground 3
Severance of timbered land - ground 4
Conclusions
The Issues
The First Argument: Double Counting
The Second Argument: The Parties' Subjective Intentions
Endnotes
Roads and Maritime Services
Allandale Blue Metal Pty Ltd
e Authority (2008) 233 CLR 259; [2008] HCA 5 Category: Principal judgment Parties: Roads and Maritime Services (Appellant) Allandale Blue Metal Pty Ltd (Respondent) Representation: Counsel: Mr P C Tomasetti SC/Mr N M Eastman (Appellant) Mr R Lancaster SC/Mr M Seymour (Respondent)
Solicitors: Ashurst Australia (Appellant) Sparke Helmore Lawyers (Respondent) File Number(s): 2015/116637 Decision under appeal Court or tribunal: Land and Environment Court Jurisdiction: Class 3 Citation: [2015] NSWLEC 18 Date of Decision: 24 March 2015 Before: Pain J File Number(s): 2010/30853
HEADNOTE [This headnote is not to be read as part of the judgment] In February 2010, the Roads and Traffic Authority of NSW, predecessor to Roads and Maritime Services ("RMS"), acquired land for the purpose of constructing the F3 Freeway to Branxton Highway Link, also known as the Hunter Expressway. Allandale Blue Metal Pty Ltd ("ABM") was the owner of the acquired land, over which it had granted a lease for an annual rental to Quarry Products (Newcastle) Pty Ltd ("QPN") to carry on a quarrying business. The lease had expired by the date of acquisition but expressly provided for the lessee to continue occupancy, terminable on one month's notice. ABM used part of the land, when not in use as a quarry, for grazing. Both ABM and QPN made claims for compensation under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) ("Just Terms Act"). As a result of the acquisition, it was calculated that QPN stood to lose 1.7 years of production potential in the quarry (amounting to a reduction from approximately 12 years to 10.3 years of productivity). QPN commenced proceedings claiming financial loss suffered as the lessee, which were discontinued on acceptance of $807,758 in compensation as calculated by an RMS appointed valuer. ABM rejected an offer of compensation, and continued with its claim in the Land and Environment Court. On 17 February 2015, Pain J ordered payment to ABM of compensation of $3,387,796. RMS appealed the judgment and orders, limited to specific parts of the calculation. RMS contended that ABM and QPN could not be compensated for the same loss in circumstances where the loss might be borne by one or the other, but not by both. ABM had sought to recover compensation for the reduction in the market value of the retained land for which QPN had already received compensation relating to its reduced quarry potential; QPN and ABM were companies with the same controlling interests; and neither party intended to terminate the lease until the quarry was exhausted. RMS submitted that the judge had failed to take these factors into account as relevant considerations, which she was bound, as a matter of law, to take into account. RMS also appealed against an award for the cost of rebuilding a cottage used to accommodate a caretaker with oversight responsibilities over the quarry and grazing cattle. Located on a lot bisected by the Expressway following the land acquisition and consequently separated from the main access to the quarry and the bulk of the grazing land, evidence was led at trial to support the notion that these oversight responsibilities were made impractical as a result of the acquisition. In addition to the smaller area of land on which the cottage and stockyard were located, a larger area of timbered land was severed from the residue land as a result of the acquisition. The only means of accessing this land following the severance was through an underpass, constructed as part of the Expressway. RMS submitted that the land's most valuable use was as bio-banking, access for which was not required. Further, RMS had given consent to ABM and its successors in title to use the underpass in perpetuity and undertook to facilitate registration of this consent on the title to the relevant land. However, as at the date of acquisition, the legal steps necessary to secure the arrangement had not been executed, and ABM was awarded compensation for a 15% reduction in the value of the severed land. The issues for determination on appeal were whether: (i) a second party could recover compensation for "the same loss" for which one party had already received compensation; (ii) ABM's interest in the residual land was equivalent to a fee simple estate unencumbered by a leasehold interest; (iii) the award for replacement of the caretaker's cottage was warranted on the evidence; (iv) the award for restriction on access to the timbered land was warranted. The Court (Basten JA; Ward JA and Sackville AJA agreeing) upheld the appeal in part, Sackville AJA also giving his own reasons. In relation to (i)
[1992] QCA 290
(2014) 88 NSWLR 752
(2006) 149 LGERA 439
(1986) 162 CLR 24
(1907) 5 CLR 418
(2008) 233 CLR 259
(1916) 22 CLR 56