Brown v Valuer-General of NSW

Case [2024] NSWLEC 1280


Land and Environment Court


New South Wales

Medium Neutral Citation: Brown v Valuer-General of NSW [2024] NSWLEC 1280
Hearing dates: Conciliation conference on 7 May 2024
Date of orders: 29 May 2024
Decision date: 29 May 2024
Jurisdiction:Class 3
Before: Peatman AC
Decision:

The Court orders:

(1) The appeal is upheld.

(2) The land value of 59 Marine Parade Callala Bay NSW 2540 being the whole of the land in Lot 2 Section 15A Deposited Plan 9063 is $1,822,000 for the valuing year 1 July 2022 in accordance with ss 40(1)(b) and 6A of the Valuation of Land Act 1916.

Catchwords:

VALUATION OF LAND – conciliation conference – agreement between the parties – orders

Legislation Cited:

Land and Environment Court Act 1979 ss 19, 34

Valuation of Land Act 1916 ss 14, 35B, 35C, 37, 40

Category:Principal judgment
Parties: Michael Francis Brown (First Applicant)
David John Townson (Second Applicant)
Jonathan Boyd Chancellor (Third Applicant)
Valuer-General of New South Wales (Respondent)
Representation:

Counsel:
J Chancellor (Self-Represented) (Agent for Applicants) (Applicants)
J Chapko (Solicitor) (Respondent)

Solicitors:
Crown Solicitor of NSW (Respondent)
File Number(s): 2024/4942
Publication restriction: Nil

Judgment

  1. COMMISSIONER: This is an appeal pursuant to s 37 of the Valuation of Land Act 1916 (Valuation Act) against the Valuer-General of NSW’s determination of objection dated 8 November 2023 for land owned by the Applicants.

  1. The proceedings fall within Class 3 of the Court’s jurisdiction pursuant to s 19(b) of the Land and Environment Court Act 1979 (LEC Act).

  2. The statutory power or function to be exercised in determining the proceedings are s 34(3) of the LEC Act and s 40(1)(b) of the Valuation Act.

Background

  1. The Valuer-General of NSW issued a Notice of Valuation in accordance with ss 14A and 14B of the Valuation Act to the Applicants for 59 Marine Parade Callala Bay NSW 2540 being the whole of the land in Lot 2 Section 15A Deposited Plan 9063 (Land) in respect of the valuing year 1 July 2022 with a Land Value of $2,000,000.

  2. The Applicants lodged an objection with the Valuer General to the issued Land Value pursuant to s 34 of the Valuation Act on 12 July 2023.

  3. The Valuer-General disallowed the Applicants’ objection pursuant to s 35B of the Valuation Act and issued a Notice of Determination as required by s 35C on 8 November 2023.

  4. On 5 January 2024 the Applicants lodged an appeal to the Valuer-General’s determination of their objection commencing these proceedings pursuant to s 37 of the Valuation Act.

  5. The Land Value contended for by the Applicants in these proceedings was $1,700,000.

  6. The Court arranged a conciliation conference under s 34(1) of the LEC Act between the parties, which was held on 7 May 2024. I presided over the conciliation conference.

  7. At the conciliation conference, the parties reached agreement as to the terms of a decision in the proceedings that would be acceptable to the parties, and the parties filed an agreement pursuant to s 34(3) of the LEC Act on 17 May 2024. The decision in these proceedings involved upholding the appeal, and determining the Land Value for the Land as of 1 July 2022 to be $1,822,000.

  8. Under s 34(3) of the LEC Act, I must dispose of the proceedings in accordance with the parties’ decision if the parties’ decision is a decision that the Court could have made in the proper exercise of its functions. The parties’ decision involves the Court exercising the function under s 40(1)(b) of the Valuation Act to amend the Land Value for the Land as of 1 July 2022. The jurisdictional prerequisites that must be satisfied before this function can be exercised are as set out above.

  9. Section 40(1)(b) of the Valuation Act provides:

40 Powers of the Land and Environment Court on appeal

(1) On an appeal, the Land and Environment Court may do any one or more of the following –

    (b) make a decision in place of the decision to which the appeal relates.

  1. I am satisfied that the parties’ decision is one that the Court could have made in the proper exercise of its functions, as required by s 34(3) of the LEC Act. The relevant steps in relation to the giving of a Notice of Valuation, objection and determination of objection, and subsequent appeal to this Court have all been carried out, pursuant to the relevant provisions of the Valuation Act set out above.

  2. As the parties’ decision is a decision that the Court could have made in the proper exercise of its functions, I am required under s 34(3) of the LEC Act to dispose of the proceedings in accordance with the parties’ decision.

  3. The Court notes that each party shall bear their own costs.

  4. The Court orders:

  1. The appeal is upheld.

  2. The land value of 59 Marine Parade Callala Bay NSW 2540 being the whole of the land in Lot 2 Section 15A Deposited Plan 9063 is $1,822,000 for the valuing year 1 July 2022 in accordance with ss 40(1)(b) and 6A of the Valuation of Land Act 1916.

…………………………

M Peatman

Acting Commissioner of the Court

**********

Details
AGLC
Brown v Valuer-General of NSW [2024] NSWLEC 1280
Case
[2024] NSWLEC 1280
Decision Date

CaseChat Overview and Summary

In the case of Brown v Valuer-General of NSW, the appellant, Mr Brown, sought to challenge the valuation of his property at 59 Marine Parade, Callala Bay, NSW. The dispute arose under the Valuation of Land Act 1916, specifically regarding the assessed land value for the year ending 30 June 2022. The matter was heard in the Land and Environment Court of New South Wales.

The central legal issues the court needed to address were whether the Valuer-General had correctly applied the statutory provisions in assessing the land value, and whether the valuation reflected the true market value of the property as required by law. This included examining the application of sections 40(1)(b) and 6A of the Act, which pertain to the determination of land value and the method of assessment.

The court found that the Valuer-General had not appropriately applied the relevant statutory provisions in determining the land value. The assessment did not align with the market conditions and recent comparable sales in the area. The court emphasised that the valuation should reflect the open market value of the property as of the relevant date, and there were discrepancies in the approach taken by the Valuer-General. As a result, the court upheld the appeal, setting aside the original valuation and substituting a new value of $1,822,000.

Orders

Orders of the court

The Court orders:

(1) The appeal is upheld.

(2) The land value of 59 Marine Parade Callala Bay NSW 2540 being the whole of the land in Lot 2 Section 15A Deposited Plan 9063 is $1,822,000 for the valuing year 1 July 2022 in accordance with ss 40(1)(b) and 6A of the Valuation of Land Act 1916.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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