El Boustani v Minister administering the Environmental Planning and Assessment Act 1979

The appeal concerned a dispute over compensation for the compulsory acquisition of land, brought by the appellants, El Boustani, against the Minister administering the Environmental Planning and Assessment Act 1979. The primary judge had rejected the appellants' claim for relocation costs, interpreting section 61 of the Land Acquisition (Just Terms Compensation) Act 1991 as limiting compensation to the market value of the land based on its potential. The appeal was heard by Beazley P, Gleeson JA, and Preston CJ of the Court of Appeal.

The legal issues before the Court of Appeal were whether the primary judge had erred in law in their construction and application of section 61 of the Land Acquisition (Just Terms Compensation) Act 1991, particularly concerning the assessment of market value and the potential of the land. Additionally, the court considered whether the primary judge had erred in law in assessing the amount of compensation for lost profits and whether the primary judge's conclusions were reached without an evidentiary foundation, thereby constituting a constructive failure to exercise jurisdiction.

The Court of Appeal found that the primary judge had indeed erred in law in their construction and application of section 61 of the Act, and in their assessment of compensation for lost profits. The court determined that the primary judge's conclusions lacked an evidentiary basis and that the primary judge had constructively failed to exercise jurisdiction. Consequently, the appeal was allowed, the orders of the Land and Environment Court were set aside, and the matter was remitted to the Land and Environment Court for determination according to law. The respondent was ordered to pay the appellants' costs.