Doueihi v Roads and Traffic Authority of NSW

Doueihi and others (the appellants) appealed to the Court of Appeal of New South Wales against decisions of Cowdroy J concerning compensation awarded for the compulsory acquisition of land. The dispute centred on the assessment of compensation for a business conducted on the acquired land, specifically addressing the value of the business and the impact of an unauthorised use of part of the land for that business.

The primary legal issues before the Court of Appeal were whether the primary judge erred in determining the highest and best use of the resumed land, and whether it was open to the court to assess the likelihood of obtaining council consent for the entirety of the existing business to be lawfully conducted on the land without direct evidence from the local council. The court also considered the relevance of section 56(1)(c) of the *Land Acquisition (Just Terms Compensation) Act 1991* and the application of Supreme Court Rules Pt 52A r 22(6) regarding costs, particularly in light of an offer of compromise exceeding the ultimate award.

The Court of Appeal reasoned that the primary judge had correctly assessed the highest and best use of the land, and that it was permissible for the court to determine the prospect of obtaining council consent based on the evidence before it, without requiring direct evidence from the council. The court found no error in the primary judge's approach to valuing the business and applying the principles of just terms compensation.

Consequently, the Court of Appeal refused leave to appeal against one set of orders and dismissed the appeal against another, ordering the appellants to pay the respondent's costs of both the appeal and the application for leave to appeal.