Downie v Sorell Council

Case [2005] TASSC 74


[2005] TASSC 74

CITATION:              Downie v Sorell Council [2005] TASSC 74

PARTIES:  DOWNIE, William Bruce
  v
  SORELL COUNCIL

TITLE OF COURT:  SUPREME COURT OF TASMANIA (FULL COURT)
JURISDICTION:  APPELLATE
FILE NO/S:  FCA 20/2005
DELIVERED ON:  9 August 2005
DELIVERED AT:  Hobart
HEARING DATE:  6, 7 June 2005
JUDGMENT OF:  Slicer and Blow JJ, Hill AJ

CATCHWORDS:

Real Property – Resumption of land – Compensation – Assessment and related matters – Valuation of land – Generally – Market value – Methodology – Refuse disposal site – Discounted cash flow method rejected – Value as rural land plus premium.

Land Acquisition Act 1993 (Tas), s27(1)(a).
Boland v Yates Property Corporation Pty Ltd (1999) 74 ALJR 209; Adelaide City Corporation v City of Port Adelaide Enfield (2001) 115 LGERA 137; Brewarrana Pty Ltd v Commissioner of Highways (No 1) (1973) 32 LGRA 170, referred to.
Aust Dig Real Property [334]

Real Property - Resumption or acquisition of land – Compensation – Proceedings for compensation – Action for compensation – Other States or Territories – Tasmania – Costs – Comparison of award and offer – Excessive claim – Unwillingness to participate in mediation.

Land Acquisition Act 1993 (Tas), s60(2).
Supreme Court Civil Procedure Act 1932 (Tas), s44(1).
Aust Dig Real Property [375]

REPRESENTATION:

Counsel:
             Appellant:  J Delany SC and L Sealy
             Respondent:  S P Estcourt QC and P G J Zeeman
Solicitors:
             Appellant:  Piggott Wood & Baker
             Respondent:  Murdoch Clarke

Judgment Number:  [2005] TASSC 74
Number of paragraphs:  131

Serial No 74/2005
File No FCA 20/2005

WILLIAM BRUCE DOWNIE v SORELL COUNCIL

REASONS FOR JUDGMENT  FULL COURT

SLICER J
BLOW J
HILL AJ
9 August 2005

Orders of the Court

  1. Appeal dismissed.

  1. Cross-appeal dismissed.

Serial No 74/2005
File No FCA 20/2005

WILLIAM BRUCE DOWNIE v SORELL COUNCIL

REASONS FOR JUDGMENT  FULL COURT

SLICER J
9 August 2005

  1. The appellant's land was acquired by the respondent Council pursuant to powers granted by the Land Acquisition Act 1993 ("the Act"), for the purpose of waste disposal. The acquisition followed a long process of research, planning and consultation which followed the publication of a report of the Auditor-General in September 1993, culminating in a final report entitled "Southern Tasmanian Solid Waste Management Study" published in July 1995. Those reports, and ones more specific, provided a basis for some of the assumptions, calculations, opinions and evidence given at the hearing of these proceedings. Relevant to this appeal, the studies and reports included recommendations and predictions that the Sorell waste management site would be used by other councils near or adjacent to the Sorell Municipality. A report commissioned by the respondent had identified a number of prospective sites for waste disposal within the municipality of Sorell, which included the appellant's land.

  1. In September 1996, three councils, including the respondent, entered into an agreement entitled the "South-East Regional Landfill Agreement" to establish a joint facility for the use of each.  In furtherance of the agreement, a consultant was engaged to identify a suitable site to be developed in…

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Downie v Sorell Council [2005] TASSC 74
Case
[2005] TASSC 74
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CaseChat Overview and Summary

The case of Downie v Sorell Council involved the dispute between the Downie family and the Sorell Council over the valuation and compensation for land that was resumed by the council for a refuse disposal site. The Supreme Court of Tasmania was tasked with determining the appropriate compensation for the resumed land.

The key legal issue before the court was the method of assessing the market value of the land, specifically whether the discounted cash flow method was appropriate or whether the land should be valued as rural land with a potential premium for its intended use as a refuse disposal site. The Downies argued that the land should be valued based on its market value as rural land, with an additional premium for its suitability as a refuse disposal site, whereas the Council argued for a different valuation method.

The court found that the proper method of assessing the market value of the land was to value it as rural land, with an additional premium to account for its suitability as a refuse disposal site. The court rejected the use of the discounted cash flow method, stating that it was not an appropriate method for valuing land intended for a specific use. The court held that the land should be valued based on its highest and best use, which in this case, was as rural land with a premium due to its suitability for a refuse disposal site.

As a result of the court's decision, the Downies were awarded compensation for the resumed land based on its value as rural land, plus a premium for its suitability as a refuse disposal site. The exact amount of compensation was to be determined by the court based on the evidence presented.

Orders

Orders of the court

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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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