Corrie v MacDermott - [1914] UKPCHCA 4

Crown Grant-Restrictions on alienation and user of land-Resumption for public

purposes-Value of land to grantee-Basis of valuation-Arbitration-Award.

The Acclimatization Society of Queensland were the grantees of land sub- ject to conditions and reservations and to extensive restrictions on the use and alienation of it, and to a right in the Crown to resume the land or any part of it which might be required at any time for any public purpose-the value of the land resumed to be paid to the party entitled thereto at a valua- tion to be fixed by arbitration.

Held, that the value to be so fixed and paid on the resumption of the land by the Crown under the grant was the value to the Society of their interest in acquiring the land; and that in ascertaining such value the conditions, reservations and restrictions should be taken into consideration as affecting the Society's market.

Stebbing v. Metropolitan Board of Works, L.R. 6 Q.B., 37, and Hilcoat V. Archbishops of Canterbury and York, 10 C.B., 327, explained.

Decision of the High Court: MacDermott v. Corrie, 17 C.L.R., 223,

APPEAL from the High Court.

This was an appeal by the plaintiffs, Leslie Gordon Corrie and James Grahame Vidgen, the trustees of the Acclimatization

Present-Lord Dunedin, Lord Atkinson, Lord Sumner and Sir Joshua

18 CLR 512

Society of Queensland, to the Privy Council from the decision of the High Court Mac Dermott v. Corrie 1.

The judgment of their Lordships was delivered by

LORD DUNEDIN. The Acclimatization Society of Queensland is a society constituted under Acts of Parliament for the purpose of carrying out experiments in acclimatization of animals and plants-using the latter word in its widest sense. The Society holds land where its experiments are carried out. Such land is held by the Society through the medium of trustees, who hold the same in trust for the uses of the Society.

By deed of grant of 17th July 1892 the land which forms the subject of this appeal was granted by the Crown to trustees for the Society "upon trust for the appropriation thereof to the use and for the grounds of the Acclimatization Society of Queens- land, and for no other purpose whatsoever."

Mines of gold, silver and coal were reserved to the Crown, and the deed of grant contained also the following clause :- And we do further reserve unto us our heirs and successors full power for us or them or for the Governor for the time being of our said Colony with the advice aforesaid to resume and take possession of all or any part of the said land which may be required at any time or times hereafter for any public purpose whatsoever twelve calendar months' notice of its being SO required being previously given in the Government Gazette or otherwise and the value of the said land or of SO much thereof as shall be SO required and of any building standing on the said required land…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Corrie v MacDermott

Details

AGLC: Corrie v MacDermott [1914] UKPCHCA 4
Case: [1914] UKPCHCA 4
Decision Date: 14 July 1914

CaseChat Overview and Summary

The case of Corrie v. MacDermott involved an appeal by Leslie Gordon Corrie and James Grahame Vidgen, trustees of the Acclimatization Society of Queensland, to the Privy Council from the decision of the High Court in MacDermott v. Corrie. The Acclimatization Society of Queensland held land subject to conditions and reservations and extensive restrictions on its use and alienation, with a right for the Crown to resume the land for public purposes. The dispute centred on the valuation of the land upon resumption by the Crown and whether the value should consider the restrictions on the land's use and alienation. The trustees argued that the value should be the unrestricted value of the land, while the respondents contended that the value should reflect the land's value to the Society with the restrictions taken into account.

The legal issues before the court were whether the value of the land to be paid on resumption should be based on its unrestricted value or its value subject to the restrictions, and if the latter, how such value should be ascertained. The Privy Council considered the principles of compensation in similar cases and held that the value to be paid should be the value of the Society's interest in acquiring the land, considering the conditions, reservations, and restrictions. The court found that the arbitrator's award of £7,490, based on unrestricted land value, did not correctly reflect the value to the Society. Instead, the High Court's award of £3,835, reflecting the restricted value, was deemed correct.

The Privy Council further noted that the chance of restrictions being discharged should also be considered, and the likelihood of such restrictions being discharged could affect the value. The court dismissed the appeal and upheld the High Court's decision, concluding that the trustees were not entitled to the higher valuation of £7,490. The final orders of the Privy Council were to dismiss the appeal with costs.

Orders