Dillon v Gosford City Council

In *Dillon v Gosford City Council*, the New South Wales Court of Appeal considered a dispute between a landowner, Ms. Dillon, and the Gosford City Council concerning the Council's refusal to grant development consent for a proposed residential subdivision. Ms. Dillon sought to subdivide her land into two lots, a proposal that was initially recommended for approval by the Council's planning officers but ultimately rejected by the Council itself.

The central legal issue before the Court of Appeal was whether the Council's decision to refuse development consent was unreasonable, thereby constituting an error of law. Specifically, the Court had to determine if the Council had taken into account irrelevant considerations or failed to take into account relevant considerations when making its decision, and whether the refusal was so unreasonable that no reasonable body, properly instructed, could have reached it.

The Court of Appeal found that the Council had acted unreasonably in refusing the development consent. It reasoned that the Council's decision was based on a number of factors that were either irrelevant or given undue weight, including concerns about the potential for future development on adjoining land which were speculative and not supported by planning controls. The Court emphasised that a planning authority must exercise its discretion in accordance with the relevant planning legislation and policies, and that decisions must be based on objective planning considerations rather than subjective or speculative concerns. The Court concluded that the Council's refusal was not a proper exercise of its statutory power.

The Court of Appeal allowed Ms. Dillon's appeal, set aside the Council's refusal of development consent, and remitted the matter back to the Council with a direction to grant development consent.