AMP Capital Investors Ltd v Transport Infrastructure Development Corporation

AMP Capital Investors Ltd (AMP) appealed to the New South Wales Court of Appeal against a decision of the Land and Environment Court concerning the compulsory acquisition of land by Transport Infrastructure Development Corporation (TIDC). The dispute centred on the valuation of the acquired land and the extent to which TIDC was entitled to a deduction for "betterment" to AMP's remaining land, pursuant to the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW).

The Court of Appeal was required to determine several key legal issues. These included whether there was sufficient probative evidence to establish the value of any betterment to AMP's remaining land arising from the public purpose for which the land was acquired. The Court also had to consider the proper identification of that public purpose and how market value should be assessed, particularly in circumstances where comparable sales were unavailable, and whether market value under section 55(a) of the Act represented the minimum compensation payable.

Hodgson JA, with whom Bell JA and Gyles AJA agreed, reasoned that the evidence presented by TIDC regarding the betterment was insufficient to establish its value with the necessary degree of certainty. The Court analysed the concept of "highest and best use" in valuation and the application of various valuation techniques. Crucially, the Court found that the "betterment" provisions of the Act did not operate to reduce the market value of the acquired land below what it would have been if the public purpose had not been undertaken. The appeal and cross-appeal were accordingly dismissed.