Kajag Pty Ltd v Head, Transport for Victoria

Kajag Pty Ltd sought compensation from Head, Transport for Victoria for the financial loss arising from the reservation of part of its land for the Outer Metropolitan Ring/E6 Transport Corridor. The dispute centered on the future zoning and development potential of the land, and the appropriate rate per hectare for assessing the land value and compensation. The court needed to determine whether the land would have been required for waterways and flood protection without the reservation and whether the loss should be assessed by comparing the contract prices or the market value of the property.

The court considered expert evidence on the development potential of the land and the proposed drainage strategy. The court found that the development potential of the land would have been for future urban industrial purposes without the reservation. Regarding the drainage strategy, the court found that Mr. Swan's proposed strategy was more cogent, as it was based on principles and inputs that would likely have guided Melbourne Water's decisions. The court also found that there were no remnant meanders of Kalkallo Creek on the Property, and that Mr. Swan's proposed drainage strategy was likely to be more cost-effective.

The court determined that the appropriate rate per hectare for assessing the value of the Property was $640,000 per hectare. The court also found that the loss should be assessed by comparing the contract prices for the sale of the property entered into on the contract date with the market value of the property as at the date of sale.

The court ordered Head, Transport for Victoria to pay Kajag Pty Ltd $19,800,000 in compensation for the financial loss on the sale of the land. The court also ordered that the compensation be paid within 28 days of the date of the judgment.