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[2013] VCAT 588
Victorian Civil and Administrative Tribunal
2013-04-05
Mr P
Original judgment source is linked above.
Compulsory acquisition of land by Roads Corporation; preliminary issue whether or not the higher offer made by the Roads Corporation at an earlier stage could still be accepted on the first hearing day by the Claimant; substantive issues relating to the likelihood or otherwise of the review site receiving planning approval to be used as a freeway service centre; other general issues of appropriate compensation for matters such as solatium or disturbance.
Roads Corporation v Longo [2013] VCAT 588
being on a net basis $783,758.38 to be re-paid by the Claimant to the Acquiring Authority. This amount must be repaid by the Claimant to theAcquiring Authority within 90 days of the date of these orders.
Mr P Chiappi of Counsel, instructed by Garland Hawthorne Brahe lawyers. Mr Chiappi called the following evidence:
Mr P Barton of Counsel, instructed by Pearce Webster Dugdale lawyers. Mr Barton called the following evidence:
To ensure that freeway service centres are appropriately designed and located.
To ensure that access to a freeway service centre from a freeway is designed to the requirements of the Roads Corporation.
To ensure that freeway service centres with access to a rural freeway provide only essential services and facilities which encourage drivers to stop and take an effective break at appropriate intervals in the interests of driver safety.
To ensure that any new freeway service centre meets an identifiable need to provide essential services and facilities along a freeway where those services and facilities are not readily available.
To ensure that the use of land for a freeway service centre does not adversely affect the amenity of the surrounding land uses.
(a) apply to the Tribunal for determination of a disputed claim in accordance with this Act; or
(b) refer to disputed claim to the Court for determination in accordance with this Act."
"(1) On an application or referral of a disputed claim under this Part, the Tribunal or Court is to determine the amount of compensation in accordance with this Act to be paid in respect of the claim and may make any orders necessary to give effect to that determination."
"In determining the compensation payable the Tribunal or the Court is not bound by the exercise of any discretion of the Authority or by any opinion or determination of the Authority, but must determine the compensation payable in the particular circumstances of the case having regard to the provisions of the Act."
"Except as otherwise provided for in this Part, in assessing the amount of compensation payable to a claimant in respect of an interest in the land which is acquired under this Act, regard must be had to the following factors-
(a) the market value of the interest on the date of acquisition;
(b) any special value to the claimant on the date of acquisition;
(e) the enhancement or depreciation in value of the interest of the claimant, at the date of acquisition, in other land adjoining or severed from the acquired land by reason of the implementation of the purpose for which the land was acquired;
(f) any legal, valuation and other professional expenses necessarily incurred by the claimant by reason of the acquisition of the interest".
Whilst regard may be had to events subsequent to the acquisition date as confirming or tending to confirm the foresight that a hypothetical purchaser would have had at the relevant date, care must be taken not to impute the hypothetical purchaser with hindsight of events not reasonably within his or her knowledge or expectation at that time...
Town planning advice from Ms Teresa Condebella indicates that it is highly likely that a permit for a Service Centre would have been approved.[5]
Findings of Tribunal - is Roads Corporation still bound by its earlier $1.46 million compensation offer?
(8) To the extent that an amount of compensation offered under this section, or any part thereof, is not disputed, the amount offered is binding upon the Authority unless the Authority can demonstrate that the information contained in the offer and relied upon by the Authority in making the offer was incorrect".
To the extent that the claimant rejects the revised offer of the Authority, or the Authority rejects the claim by the claimant, the claim becomes a disputed claim for the purposes of the Act.
(6) Subject to Section 106(1), if the Authority offers to increase or vary the compensation previously offered, the claimant must within two months after the date of service of this revised offer-
"Vary" - 1. to change or alter, as in form, appearance, character, substance, degree etc. 2. to cause to be different, one from another. 3. to diversify (something); relieve from uniformity or monotony... etc.
Findings of Tribunal - in the "Before" situation, what is the highest and best use of the subject land?
The Corporation submits that the definition of "loss attributable to disturbance" under the LAC Act does not encompass planning blight - blight arises, in this case from the amendment and not from the divesting of an interest in land. There is a separate remedy for blight under Section 98 of the Planning and Environment Act 1987.
Legal Fees, Evaluation and Other Professional Expenses
in the situation where the parties have reached a consent position regarding the pre-referral expenses in relation to legal costs and disbursements plus valuation and planning expert expenses.
[1] See the Hawthorn Garland Brahe letter of 15 March 2013.
[3] See pages 4 and 5 of Mr Baird's valuation report.
[5] Noting however that the key words in Ms Coldebella's report were in fact "possible and likely..." - see the "Conclusion" section of her report.
[6] Although his report shows the balance area as being 7.734 hectares, in response to a query from Member Jacono, Mr Love conceded this was a typo, and that the correct figure was 8.734 hectares.
[7] The actual figure shown at page 8 of Mr Love's report is lower, but he conceded this figure is tainted by the typo referred to above. Hence we have worked with the correct figure which accounts for the typo.
[8] No date is given for this sale, at the top of page 8 of Mr Love's report.
[9] Noting that Section 31 has the heading in bold "Initial offer of compensation".
[10] See Ms Coldebella's conclusion at Section 8 of her report.
[11] We refer here to the Outer Western Transport Strategy Plan dated October 2001
[12] This "blackspot" and "blacklength" situation was verified by the evidence of Mr Purdue.
[13] That is, the Freeway Service Centre Design Guidelines 1997.
[14] We understand that the actual permit for the Beattys Road FSC was issued two days after the 18 December 2006 date of acquisition in question here. However given that we were told at the hearing that the necessary Council resolution to issue the permit had been passed by 18 December 2006, it seems reasonable that we treat this situation as the next best thing to the actual permit issuing.
[15] The closest separation we are aware of, in relation to two FSCs on the same side of a freeway in Victoria, is the two FSCs on the north-bound side of the Geelong freeway, about half way between Melbourne and Geelong. We understand these two FSCs are about 16 km apart.
[16] The Certificate of Title provided in Appendix 4 of Mr Baird's Valuation Report confirms Mr Longo's ownership of the review site since 14 November 1980.
[17] See the first sentence of paragraph 8.
[18] See paragraph 50 of Mr Chiappi's main written submission.
[19] Noting that the Act appears to be silent on this issue.
Roads Corporation
Longo [2013] VCAT 588