Johnson Property Group Pty Limited v Lake Macquarie City Council

The case between Johnson Property Group Pty Limited and Lake Macquarie City Council was heard before the Supreme Court of New South Wales. The dispute centred around a planning application submitted by Johnson Property Group for the development of a residential property in the Lake Macquarie area. The Council initially approved the application but subsequently sought to withdraw its approval on the grounds of non-compliance with planning regulations. Johnson Property Group challenged the Council's decision, arguing that the Council had no legal basis to withdraw the approval after it had been granted.

The central legal issues before the court were whether the Council had the authority to withdraw the approval of the planning application and, if so, under what circumstances such a withdrawal could be justified. Additionally, the court had to determine whether the Council's decision to withdraw the approval was lawful, procedurally fair, and in accordance with the relevant statutory framework. The case required the court to interpret the provisions of the relevant planning legislation and consider the principles of administrative law, particularly the concept of legitimate expectation and procedural fairness.

The court found that the Council did not have the power to withdraw the approval of a planning application once it had been lawfully granted. The court emphasised that once a planning approval is granted, it becomes a binding decision unless it is formally revoked or varied by a competent authority, in accordance with the prescribed procedures. The court also held that the Council's decision to withdraw the approval was unlawful and not procedurally fair, as it had not provided the applicant with an opportunity to be heard on the matter. Consequently, the court quashed the Council's decision to withdraw the approval and directed the Council to reinstate the original approval. The court further ordered that the Council must follow proper procedures if it wished to challenge the validity of the approval in the future.