Kemp v Department of Natural Resources and Water

In the case of Kemp v Department of Natural Resources and Water, the dispute centred around the valuation of two parcels of land, specifically a lease over State Forest Reserve 8 and another parcel identified as PTB of Lot 5. The valuation was contested by the appellant, who argued that the valuation provided by the respondent did not adequately reflect the true market value of the properties in question. The case was heard in the Supreme Court of Western Australia.

The legal issues that the court was required to decide included whether the comparative sale method employed by the respondent was appropriately applied to the subject properties and whether there were adequate reasons provided for the discount applied to the sale figures. Additionally, the court had to consider whether the properties were sufficiently comparable and whether the restrictions imposed on the land, such as those related to forestry leases, forestry activities, and development, were appropriately accounted for in the valuation.

The court found that the comparative sale method was not adequately applied, as the sale figures were only used at 57% of their actual value without a reasonable explanation. The court also noted that the subject property was subject to significant restrictions that were not present in the comparable sale, rendering the properties not truly comparable. As a result, the court rejected the valuation provided by the respondent and determined the unimproved value of the subject properties at the figures specified in the orders.

The court allowed the appeals brought by the appellant, determined the unimproved value of the properties as set out in the orders, and rejected the valuation provided by the respondent.