Land and Environment Court
New South Wales
Medium Neutral Citation: Farrell v Health Administration Corporation [2019] NSWLEC 1567 Hearing dates: Conciliation conference on 14 October 2019 Date of orders: 22 November 2019 Decision date: 22 November 2019 Jurisdiction: Class 3 Before: Maston AC Decision: The Court orders:
(1) Compensation is determined in the sum of $3,129,267.00 pursuant to section 55 of the Land Acquisition (Just Terms Compensation) Act 1991 (Act) (Compensation), for the acquisition of the whole of Lot Y in Deposited Plan 445567, being the land formally known as 4 Eurimbla Avenue, Randwick.
(2) The Applicant is to duly complete, execute and deliver to the Respondent the deed of release and indemnity, to be issued by the Respondent within 28 days of the final orders in these proceedings, with such deed to reflect these terms of agreement and provide for the subject matter of these proceedings being finalised on a full and final basis.
(3) Within 28 days of the Respondent receiving the Applicant’s duly completed and executed deed of release and indemnity, and a direction as to payment, the Respondent will pay the Applicant:
(a) the Compensation less any advance compensation paid;
(b) statutory interest in respect of the Compensation calculated in accordance with the Act; and
(c) an amount in respect of the Applicant’s costs of the proceedings as agreed between the parties during the conciliation process (with no interest payable on this amount).Catchwords: COMPULSORY ACQUISITION – conciliation conference – agreement between the parties – orders Legislation Cited: Land Acquisition (Just Terms Compensation) Act 1991
Land and Environment Court Act 1979Category: Principal judgment Parties: Ellen Elizabeth Linda Farrell (Applicant)
Health Administration Corporation (Respondent)Representation: Counsel:
Solicitors:
C Gough (Solicitor) (Applicant)
B Tronson (Respondent)
Storey & Gough Lawyers (Applicant)
Herbert Smith Freehills (Respondent)
File Number(s): 2019/5862 Publication restriction: No
Judgment
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COMMISSIONER: These proceedings are an objection to an offer of compensation in the amount of $2,850,000.00 arising from the compulsory acquisition by the Respondent of the land comprised of Lot Y in DP 445567 known as 4 Eurimbla Avenue, Randwick, from the Applicant pursuant to Part 3 Division 2 of the Land and Environment Court Act 1979 (LEC Act) and Part 3 Division 4 of the LEC Act and the Land Acquisition (Just Terms Compensation) Act 1991 (the JTC Act) with the Court required to determine the amount of compensation payable by the Respondent to the Applicant being within Class 3 of the Court’s jurisdiction.
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The Court arranged a conciliation conference under s 34(1) of the LEC Act between the parties, which was held on 14 October 2019. I presided over the conciliation conference.
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At the conciliation conference, the parties reached agreement as to the terms of a decision in the proceedings that would be acceptable to the parties. This decision involved the Respondent agreeing to pay to the Applicant the following amounts of compensation under the JTC Act arising from the compulsory acquisition:
Total compensation: $3,129,267.00
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Under s 34(3) of the LEC Act, I must dispose of the proceedings in accordance with the parties’ decision if the parties’ decision is a decision that the Court could have made in the proper exercise of its functions. The parties’ decision involves the Court exercising the function under s 66(2) of the JTC Act to hear and dispose of the Applicant’s claim for compensation.
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I am satisfied that the parties’ decision is one that the Court could have made in the proper exercise of its functions, as required by s 34(3) of the LEC Act.
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As the parties’ decision is a decision that the Court could have made in the proper exercise of its functions, I am required under s 34(3) of the LEC Act to dispose of the proceedings in accordance with the parties’ decision.
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The Court orders:
Compensation is determined in the sum of $3,129,267.00 pursuant to section 55 of the Land Acquisition (Just Terms Compensation) Act 1991 (Act) (Compensation), for the acquisition of the whole of Lot Y in Deposited Plan 445567, being the land formally known as 4 Eurimbla Avenue, Randwick.
The Applicant is to duly complete, execute and deliver to the Respondent the deed of release and indemnity, to be issued by the Respondent within 28 days of the final orders in these proceedings, with such deed to reflect these terms of agreement and provide for the subject matter of these proceedings being finalised on a full and final basis.
Within 28 days of the Respondent receiving the Applicant’s duly completed and executed deed of release and indemnity, and a direction as to payment, the Respondent will pay the Applicant:
the Compensation less any advance compensation paid;
statutory interest in respect of the Compensation calculated in accordance with the Act; and
an amount in respect of the Applicant’s costs of the proceedings as agreed between the parties during the conciliation process (with no interest payable on this amount).
…………………………
J Maston
Acting Commissioner of the Court
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- AGLC
- Farrell v Health Administration Corporation [2019] NSWLEC 1567
- Case
- [2019] NSWLEC 1567
- Decision Date
CaseChat Overview and Summary
The central legal issue before the court was the correct application of the statutory provisions for determining just terms compensation, particularly focusing on the market value of the land in question and the impact of the acquisition on the applicant's property rights. The court had to consider various factors including the market value of the land, the nature of the acquisition, and any relevant statutory provisions or precedents that could influence the determination. The applicant argued for a higher valuation based on specific characteristics of the land and its potential use, while the respondent maintained that the offered compensation was fair and in line with statutory guidelines.
In its reasoning, the court examined the evidence provided by both parties regarding the market value and specific attributes of the land. It assessed the impact of the acquisition on the applicant's property rights and determined that the compensation offered did not adequately reflect the true market value and the unique circumstances of the land. Consequently, the court found that the compensation should be increased to $3,129,267.00. The court also outlined the procedural steps that must be followed for the finalisation of the compensation payment, including the execution of a deed of release and indemnity by the applicant and the subsequent payment by the respondent within the specified timeframe. The court's final orders reflect these determinations and provide for the completion of the acquisition process on a full and final basis.
Orders
Orders of the court
The Court orders:
(1) Compensation is determined in the sum of $3,129,267.00 pursuant to section 55 of the Land Acquisition (Just Terms Compensation) Act 1991 (Act) (Compensation), for the acquisition of the whole of Lot Y in Deposited Plan 445567, being the land formally known as 4 Eurimbla Avenue, Randwick.
(2) The Applicant is to duly complete, execute and deliver to the Respondent the deed of release and indemnity, to be issued by the Respondent within 28 days of the final orders in these proceedings, with such deed to reflect these terms of agreement and provide for the subject matter of these proceedings being finalised on a full and final basis.
(3) Within 28 days of the Respondent receiving the Applicant’s duly completed and executed deed of release and indemnity, and a direction as to payment, the Respondent will pay the Applicant:
(a) the Compensation less any advance compensation paid;
(b) statutory interest in respect of the Compensation calculated in accordance with the Act; and
(c) an amount in respect of the Applicant’s costs of the proceedings as agreed between the parties during the conciliation process (with no interest payable on this amount).
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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