UTSG Pty Ltd v Sydney Metro (No 6) [2020] NSWLEC 63

UTSG Pty Ltd v Sydney Metro (No 6) [2020] NSWLEC 63

The applicant failed to prove its claims for compensation beyond admitted legal and valuation costs, due to lack of credible, verifiable evidence, fabrication of documents and misleading conduct by its director. The amounts claimed for past/future losses, relocation, and fitout were unfounded. Legal and valuation costs, agreed in the sum of $137,517, were set off in full by the outstanding rental arrears ($183,123.64), leaving no compensation payable. The applicant's litigious conduct justified a costs order in the respondent’s favour, and, exceptionally, a non-party costs order was made against Ms Singh for improper management, fabrication of evidence, and that the company was insolvent.

Jurisdiction
Australia
Judgment Date
29 May 2020
Procedural Posture
Compulsory Acquisition Compensation (class 3, Land and Environment Court Nsw) / Final Judgment and Orders After Full Hearing
Outcome
Applicant awarded nil compensation; adverse costs orders made.
Legal Topics
['land Acquisition (just Terms Compensation) Act 1991' 'compulsory Acquisition of Leasehold Interest' 'compensation for Disturbance' 'valuation of Business Losses' 'legal Costs and Valuation Costs in Compulsory Acquisition' 'non Party Costs Orders' 'credit of Witnesses' 'fabrication/fraudulent Evidence' 'offset of Rental Arrears' 'litigation Conduct']
['compulsory Acquisition' 'administrative Law' 'land Law' 'costs'] ['land Acquisition (just Terms Compensation) Act 1991' 'compulsory Acquisition of Leasehold Interest' 'compensation for Disturbance' 'valuation of Business Losses' 'legal Costs and Valuation Costs in Compulsory Acquisition' 'non Party Costs Orders' 'credit of Witnesses' 'fabrication/fraudulent Evidence' 'offset of Rental Arrears' 'litigation Conduct']

Case Brief

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Procedural Posture

Compulsory Acquisition Compensation (class 3, Land and Environment Court Nsw) / Final Judgment and Orders After Full Hearing

Legal Issues

  1. 1 ["What amount of compensation is payable for the compulsory acquisition of the applicant's leasehold interest?" 'Did the applicant incur compensable loss attributable to disturbance, relocation costs, fitout, and/or loss of business/profits?' 'Are legal and valuation costs compensable, and can they be offset by rental arrears?' "Should a non-party costs order be made against the applicant's director for litigation conduct?"]

Ratio Decidendi

The applicant failed to prove its claims for compensation beyond admitted legal and valuation costs, due to lack of credible, verifiable evidence, fabrication of documents and misleading conduct by its director. The amounts claimed for past/future losses, relocation, and fitout were unfounded. Legal and valuation costs, agreed in the sum of $137,517, were set off in full by the outstanding rental arrears ($183,123.64), leaving no compensation payable. The applicant's litigious conduct justified a costs order in the respondent’s favour, and, exceptionally, a non-party costs order was made against Ms Singh for improper management, fabrication of evidence, and that the company was insolvent.

Court Disposition

Applicant awarded nil compensation; adverse costs orders made.

Orders

  • ['The compensation payable to the applicant for the compulsory acquisition of its leasehold interest is determined as $137,517 for legal and valuation fees only, with $nil for all other claimed heads.' "The respondent is not required to pay the $137,517 because, under s 34(4) of the Just Terms Act, it may offset...