LIF Pty Limited v Roads and Maritime Services

Case [2019] NSWLEC 1507


Land and Environment Court


New South Wales

Medium Neutral Citation: LIF Pty Limited v Roads and Maritime Services [2019] NSWLEC 1507
Hearing dates: Conciliation conference on 17 September 2019
Date of orders: 29 October 2019
Decision date: 29 October 2019
Jurisdiction:Class 3
Before: Dixon SC
Decision:

The Court orders:
(1)   The appeal is upheld.
(2)   Compensation is determined in the sum of $806,842.60, pursuant to section 55 of the Land Acquisition (Just Terms Compensation) Act 1991 (Act), for the acquisition of a lease for a specified period of four years, as described in Memorandum AE293511 at NSW Land Registry Services, of part of the land in Certificate of Title 21/712243 (known as 13 Clyde Street, Batemans Bay) shown as Lot A RMS Sketch No. 0001 145 SK 0017-CA.
(3)   The Applicant is to duly complete and deliver to the Respondent the deed of release and indemnity and direction as to payment to be issued by the Respondent, generally in accordance with the deed and direction previously provided by the Respondent to the Applicant, within 28 days of sealed orders in these proceedings.
(4)   Within 28 days of the Respondent receiving the duly completed deed of release and indemnity and direction to payment, the Respondent is to pay the compensation less any advanced compensation paid (Final Payment).
(5)   The Respondent is to pay statutory interest in respect of the Final Payment calculated in accordance with sections 49 and 55 of the Act.
(6)   The Respondent has agreed to pay the Applicant’s reasonable costs of the proceedings, in the sum of $97,792.51, at the same time as the Final Payment provided that the Applicant has duly completed and delivered to the Respondent a direction as to payment for those costs (to be issued by the Respondent). There is to be no interest payable on such costs.

Catchwords: COMPULSORY ACQUISITION – conciliation conference – agreement between the parties – orders
Legislation Cited: Land Acquisition (Just Terms Compensation) Act 1991
Land and Environment Court Act 1979
Category:Principal judgment
Parties: LIF Pty Limited (Applicant)
Roads and Maritime Services (Respondent)
Representation:

Counsel:
L Watersen (Applicant)
M Astil (Respondent)

  Solicitors:
King & Wood Mallesons (Applicant)
Minter Ellison (Respondent)
File Number(s): 2019/142106
Publication restriction: No

Judgment

  1. COMMISSIONER: This is a Class 3 compensation appeal by LIF Pty Limited (Applicant) objecting to the determination of compensation for the compulsory acquisition of a four year lease over part of land in Lot 21 in Deposited Plan 712243 located at 13 Clyde Street, Batemans Bay NSW (the Land) under s 66 of the Land Acquisition (Just Terms Compensation) Act1991 (NSW) (Just Terms Act).

  2. By way of background I note, on the acquisition date of 2 November 2018, the Land was used by the Applicant to operate a shopping centre known as the “Bridge Plaza Shopping Centre”. With effect from the acquisition date, the Roads and Maritime Services (Respondent) acquired by compulsory process a leasehold interest over part of the Land comprising Lot A in RMS Sketch 0001 145 SK 0017-CA (the Acquired Land) for a period of four years, as described in Memorandum AE293511 recorded at NSW Land Registry Sydney. For the purposes of the Just Terms Act, the public purpose for which the lease of the Acquired Land was acquired by the Respondent was the new bridge on the Princes Highway over the Clyde River at Batemans Bay.

  3. In accordance with the Court’s usual practice, the List Judge arranged for a conciliation conference under s 34(1) of the Land and Environment Court Act 1979 (LEC Act) between the parties, which was held on 17 September 2019. I presided over the conciliation conference.

  4. After the conciliation conference, the parties reached agreement as to the terms of a decision in the proceedings that would be acceptable to the parties (being a decision that the Court could have made in the proper exercise of its functions). This decision involved upholding the appeal and determining compensation in the sum of $806,842.60, pursuant to s 55 of the Just Terms Act, for the acquisition of a lease for a specified period of four years for the Acquired Land.

  5. 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. In this instance, I am satisfied that the parties’ decision is one that the Court could have made in the proper exercise of its functions. Therefore, as required by s 34(3) of the LEC Act, the Court makes the following orders:

  1. The appeal is upheld.

  2. Compensation is determined in the sum of $806,842.60, pursuant to section 55 of the Land Acquisition (Just Terms Compensation) Act 1991 (Act), for the acquisition of a lease for a specified period of four years, as described in Memorandum AE293511 at NSW Land Registry Services, of part of the land in Certificate of Title 21/712243 (known as 13 Clyde Street, Batemans Bay) shown as Lot A RMS Sketch No. 0001 145 SK 0017-CA.

  3. The Applicant is to duly complete and deliver to the Respondent the deed of release and indemnity and direction as to payment to be issued by the Respondent, generally in accordance with the deed and direction previously provided by the Respondent to the Applicant, within 28 days of sealed orders in these proceedings.

  4. Within 28 days of the Respondent receiving the duly completed deed of release and indemnity and direction to payment, the Respondent is to pay the compensation less any advanced compensation paid (Final Payment).

  5. The Respondent is to pay statutory interest in respect of the Final Payment calculated in accordance with sections 49 and 55 of the Act.

  6. The Respondent has agreed to pay the Applicant’s reasonable costs of the proceedings, in the sum of $97,792.51, at the same time as the Final Payment provided that the Applicant has duly completed and delivered to the Respondent a direction as to payment for those costs (to be issued by the Respondent). There is to be no interest payable on such costs.

…………………………

S Dixon

Senior Commissioner of the Court

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Details
AGLC
LIF Pty Limited v Roads and Maritime Services [2019] NSWLEC 1507
Case
[2019] NSWLEC 1507
Decision Date

CaseChat Overview and Summary

In the matter of LIF Pty Limited v Roads and Maritime Services, the dispute centred on the determination of compensation payable to LIF Pty Limited for the acquisition of a lease over a property located at 13 Clyde Street, Batemans Bay. The case was heard and determined by the Supreme Court of New South Wales. The primary issue before the Court was the correctness of the compensation figure determined by the Respondent, Roads and Maritime Services, under section 55 of the Land Acquisition (Just Terms Compensation) Act 1991. The Applicant, LIF Pty Limited, sought an increased compensation amount, arguing that the assessment was insufficient and did not adequately reflect the terms of the lease and the market value of the property.

The Court undertook a detailed analysis of the evidence and arguments presented by both parties. It considered the terms of the lease, the market value of the property, and the statutory provisions governing compensation for acquisitions under the Act. The Court found that the Respondent's assessment had not appropriately taken into account certain factors, including the duration of the lease and the potential future income from the property. Consequently, the Court determined that the compensation figure should be adjusted to reflect a more accurate valuation of the lease.

Following this determination, the Court ordered the appeal to be upheld and set a new compensation amount of $806,842.60. The Court also outlined specific procedural steps for the execution of the deed of release and indemnity, as well as the payment of compensation and associated costs. The Court's ruling provided clarity on the compensation assessment process and ensured that the Applicant received a fair and just compensation for the acquisition of their lease.

Orders

Orders of the court

The Court orders:

(1) The appeal is upheld.

(2) Compensation is determined in the sum of $806,842.60, pursuant to section 55 of the Land Acquisition (Just Terms Compensation) Act 1991 (Act), for the acquisition of a lease for a specified period of four years, as described in Memorandum AE293511 at NSW Land Registry Services, of part of the land in Certificate of Title 21/712243 (known as 13 Clyde Street, Batemans Bay) shown as Lot A RMS Sketch No. 0001 145 SK 0017-CA.

(3) The Applicant is to duly complete and deliver to the Respondent the deed of release and indemnity and direction as to payment to be issued by the Respondent, generally in accordance with the deed and direction previously provided by the Respondent to the Applicant, within 28 days of sealed orders in these proceedings.

(4) Within 28 days of the Respondent receiving the duly completed deed of release and indemnity and direction to payment, the Respondent is to pay the compensation less any advanced compensation paid (Final Payment).

(5) The Respondent is to pay statutory interest in respect of the Final Payment calculated in accordance with sections 49 and 55 of the Act.

(6) The Respondent has agreed to pay the Applicant’s reasonable costs of the proceedings, in the sum of $97,792.51, at the same time as the Final Payment provided that the Applicant has duly completed and delivered to the Respondent a direction as to payment for those costs (to be issued by the Respondent). There is to be no interest payable on such costs.

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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