Inner West Council v Transport for NSW [2024] NSWLEC 138

Inner West Council v Transport for NSW [2024] NSWLEC 138

The factual preconditions for compensation on a reinstatement value basis under s 56(3) were not established, as the acquired land's particular purpose was as a Detention Basin and Council did not genuinely propose to continue that use elsewhere. The market value under s 56(1) was appropriately determined by analysis of comparable sales of heavily constrained sites, with adjustments for size, location, market movement, and contamination risk; residential or development site sales were not directly comparable due to significant differences. Compensation for disturbance was as agreed between the parties.

Parties
Applicant: Inner West Council; Respondent: Transport for NSW
Jurisdiction
Australia
Judgment Date
19 December 2024
Procedural Posture
Compulsory Acquisition Compensation (class 3) / Principal Judgment on Quantum of Compensation
Outcome
Determination of compensation and orders for payment; costs reserved.
Legal Topics
Just Terms Compensation, Assessment of Market Value, Reinstatement Value, Disturbance Claims
Compulsory Acquisition Administrative Law Valuation Law Just Terms Compensation Assessment of Market Value Reinstatement Value Disturbance Claims

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Parties

Inner West Council

Applicant

Transport for NSW

Respondent

Procedural Posture

Compulsory Acquisition Compensation (class 3) / Principal Judgment on Quantum of Compensation

Legal Issues

  1. 1 Is the Council entitled to compensation for market value under s 56(3) of the Land Acquisition (Just Terms Compensation) Act 1991?
  2. 2 If not, what is the market value of the Acquired Land under s 56(1)?
  3. 3 Are adjustments required to comparable sales and if so, what is the appropriate adjustment?

Ratio Decidendi

The factual preconditions for compensation on a reinstatement value basis under s 56(3) were not established, as the acquired land's particular purpose was as a Detention Basin and Council did not genuinely propose to continue that use elsewhere. The market value under s 56(1) was appropriately determined by analysis of comparable sales of heavily constrained sites, with adjustments for size, location, market movement, and contamination risk; residential or development site sales were not directly comparable due to significant differences. Compensation for disturbance was as agreed between the parties.

Court Disposition

Determination of compensation and orders for payment; costs reserved.

Orders

  • Compensation determined in the sum of $1,168,217 plus statutory interest under ss 49 and 50 of the Act, comprising $1,133,664 for market value and $34,553 for disturbance under s 55(d).
  • Costs reserved.