Durham Holdings Pty Ltd v New South Wales

Durham Holdings Pty Ltd (the applicant) sought special leave to appeal to the High Court of Australia from a decision of the New South Wales Court of Appeal concerning the compulsory acquisition of coal by the State of New South Wales. The applicant had purchased coal deposits with the intention of mining them, but the Coal Acquisition Act 1981 (NSW) purported to vest all coal in the Crown. Subsequent amendments and arrangements made under the Act "capped" the compensation payable to owners, allegedly below the true value of the coal.

The High Court was required to determine whether the instruments made pursuant to the Coal Acquisition (Amendment) Act 1990 (NSW) were ultra vires the enabling Act. This involved considering whether the Act should be interpreted with a presumption that the State does not intend to acquire property without adequate compensation, and whether the State was constitutionally required to acquire property on just terms. A further issue was whether the Act was in the nature of a Bill of Pains and Penalties.

The High Court dismissed the application for special leave to appeal. The Court noted that the presumption that a legislature does not intend to acquire property without adequate compensation is a rule of construction that can be rebutted by clear statutory language. In this instance, the Court found that the Act and the subsequent arrangements clearly provided for compensation to be determined and, importantly, allowed for differentiation and limitations on the amounts payable, thereby rebutting any such presumption. The Court also indicated that the Act was not in the nature of a Bill of Pains and Penalties.

The application for special leave to appeal was dismissed with costs.