Dexbay Pty Ltd v The Crown

Dexbay Pty Ltd (Dexbay) sought compensation from the Crown for the resumption of a lease under the Land Act 1962. Dexbay claimed an interest as sub-lessee of land leased under the Act and resumed by the Crown in November 1991. The Crown objected to the claim, arguing that Dexbay's interest as sub-lessee was derived from freehold land, to which the resumption provisions of the Act could not apply. The Land Court was tasked with determining the nature of Dexbay's interest at the time of resumption and whether compensation was payable.

The court examined the historical context of the land's vesting in the Crown under the South Bank Corporation Act 1989 and subsequent leasing arrangements. Dexbay's sublease agreement with World Expo Park Pty Ltd (WEP), the primary lessee, was not formally approved by the Minister nor registered with the Department of Lands. The court found that Dexbay's interest was not a legal estate but rather an equitable interest, given the Crown's knowledge of the sublease and its lack of objection. However, the court also considered that Dexbay's interest was precarious due to WEP's financial difficulties and the lack of a term certain beyond the initial agreement, which ended in December 1991.

The court concluded that Dexbay's interest at the time of resumption was limited to the one-month period remaining under the option agreement. Given the minimal security of Dexbay's tenure and the absence of a claim for any other interest held at the resumption date, the court ruled that Dexbay was not entitled to compensation. The court noted that any claim for disturbance would face significant difficulties, as it would depend on the degree of security of the tenure.

The court ordered the matter to resume for further evidence and submissions on whether compensation was payable consequent upon the resumption.