Robert John Downing v WIN Television
[2011] NSWSC 563
At a glance
Source factsCourt
Supreme Court of NSW
Decision date
2011-06-07
Before
Ball J
Source
Original judgment source is linked above.
Judgment (8 paragraphs)
Background 1On 21 October 2010 I gave judgment in this matter ( Downing v WIN Television (NSW) Pty Ltd [2010] NSWSC 1132) in which I concluded that the defendants were trespassers on the plaintiff's land and were liable to pay the plaintiff damages in respect of that trespass. This judgment concerns the assessment of those damages. 2The factual background to the case is set out in my earlier judgment. It is not necessary to repeat it here. I should, however, provide a brief summary so far as it is relevant to the question of damages. 3The first defendant, WIN, is a regional television broadcaster. In early 1989, it entered into an agreement with the plaintiff's father, Mr Downing Snr, to erect a television tower and associated equipment shed and fence on Mr Downing Snr's property located near Goulburn. The tower that was eventually erected was approximately 42 metres high and the site occupied by WIN covered an area of approximately 150 square metres. Over time, the shed was replaced with a larger building and WIN sublicensed space on its tower and in the adjacent building to other telecommunications operators, including the second defendant, Prime Television, and the third defendant, the State of New South Wales. Prime Television was another regional television broadcaster. The State of New South Wales used the facilities in connection with the Government Radio Network ( GRN ). On the findings I made, the arrangements by which WIN sublicensed space on its tower and in its building to others was a breach of the agreement WIN had with Mr Downing Snr. 4Mr Downing Snr died in 1995 and his property at Goulburn ultimately passed to the plaintiff, Mr Downing. Mr Downing requested WIN to leave the property on 14 December 1998 and to remove the television tower, building and fence. WIN did not do so. As a consequence, I held that WIN, Prime Television and the State were trespassers from the end of June 1999. 5There were protracted negotiations between Mr Downing and WIN in relation to the terms on which WIN and its sub-licensees could remain on the property. However, those negotiations did not result in an agreement. During the course of the negotiations, Mr Downing changed his position and maintained that WIN was not entitled to remove the tower or building. In the meantime, WIN looked for alternative sites. It ultimately reached an agreement to lease a portion of land on the adjacent property, approximately 200 metres from the existing site. That property was owned by Mrs Fitch and, following her death, Mr Koper, who apparently was Mrs Fitch's husband. The lease between WIN and Mrs Fitch commenced on 1 March 2003. It is for a period of 10 years with an option exercisable by WIN for a further 10 years. The rent was originally $5,000 payable annually in advance. The lease provided that the rent would increase annually in accordance with increases in the consumer price index. WIN also agreed to pay Mrs Fitch 20 percent of any amount earned by WIN from sublicensing space on the tower and in the associated building. 6WIN constructed a new tower on Mrs Fitch's property in late 2004. 7On 3 March 2005, WIN sought an easement from Mr Downing to obtain electricity for its installation on Mrs Fitch's property. However, the parties were unable to reach agreement on the terms of the easement. As a result, WIN negotiated an easement with Mrs Fitch for which it agreed to pay $40,000. At the same time, WIN and Mrs Fitch agreed to execute a variation of lease. Under the terms of that variation, the annual rent from 1 March 2006 was increased to $14,500 per annum. That rent was still subject to annual CPI increases. In addition, Mrs Fitch was still entitled to receive 20 percent of any amounts earned by WIN from sublicensing space on the tower or in the associated building. The reasons for the increase in rent are not explained in the evidence. 8It is not clear when WIN ceased to transmit signals using the transmission tower on Mr Downing's land. The evidence before me at the time of the hearing in relation to liability suggested that it was in March 2007. However, according to a GRN circular tendered by the plaintiff during the course of the current hearing, the GRN equipment was moved on 29 April 2008. For the purposes of assessing damages, it is reasonable to conclude on the basis of that evidence that WIN ceased to use the tower on Mr Downing's land at the end of April 2008. The tower itself, however, was not removed until March 2011, following my earlier judgment in which I concluded that the tower was not a fixture and that WIN was entitled to remove it. Up until that time, WIN maintained a fence around the site and kept the gate through which access was obtained locked. It visited the site periodically to check that it was secure. 9The parties accept that the measure of damages for trespass is the reasonable or market rental value of the land during the time of the defendants' occupancy: Lamru Pty Ltd v Kation Pty Ltd (1998) 44 NSWLR 432 at 439 per Cohen J; Currawinya Pty Ltd v Adams (No 2) [2011] NSWSC 1 at [98] per Slattery J. The parties also agree that, insofar as Mr Downing claims damages for the period prior to 1 February 2001, that claim is statute barred. 10In support of his claim for damages, Mr Downing led evidence from Mr Paris, an expert valuer. It is not necessary to describe in detail the approach taken by Mr Paris. It is sufficient to observe that it was flawed in two main respects. First, Mr Paris was asked to express separate opinions on the value of the land occupied by WIN, Prime Television and the State for the transmission of microwave signals and of broadcast television signals. Mr Paris accepted in cross-examination that there was no reason to draw that distinction and that he only did so because it was a distinction that his instructions required him to draw. Secondly, Mr Paris used a number of comparables that differed very substantially from WIN's use of Mr Downing's land. For example, two comparables relied on by Mr Paris were leases that WIN had entered into with the Minister for the Environment for sites at Mount Nardi and Mount Moombil. The site at Mt Nardi occupied 1,100 square metres and the tower erected on it was in excess of 90 metres. The site at Mount Moombil occupied 2,100 square metres and the tower erected on it was approximately 80 metres. On the other hand, Mr Paris appears to have placed little weight on the lease entered into between WIN and Mrs Fitch. 11In closing submissions, Mr Elliott, who appeared for Mr Downing, all but abandoned the conclusions reached by Mr Paris and conceded that the best evidence of the fair value of the site occupied by WIN on Mr Downing's land was the amount WIN agreed to pay Mrs Fitch. In my opinion, Mr Elliott was right to make that concession. The land leased by WIN from Mrs Fitch was only 200 metres from the land occupied by WIN on Mr Downing's property. The area occupied by WIN was roughly the same size and the tower erected by it roughly the same height. The amount paid by WIN to Mrs Fitch was for a lease. Similarly, there is no doubt that WIN enjoyed exclusive possession of the area it occupied on Mr Downing's property. There is no question that WIN and Mrs Fitch were at arm's length. In those circumstances, the amount WIN agreed to pay Mrs Fitch is a very good guide to the market value of the land on which WIN had trespassed. 12As a result, the issues between the parties were: (a)Whether it was appropriate to use as a comparable the rent payable by WIN under the initial lease from Mrs Fitch (that is, $5,000 with CPI increases) or the varied lease (that is, $14,500 with CPI increases); (b)Whether damages should be payable until WIN stopped using the site to transmit television and microwave signals (that is, until the end of April 2008) or whether they should be payable until WIN removed its tower (that is, until the end of March 2011); (c)Whether damages should include a proportion of the fees that sub-licensees paid to WIN; (d)What interest WIN should pay; (e)How damages against Prime Television and the State should be assessed.