Mason v Head, Transport for Victoria

The respondents, as beneficiaries under the will of the deceased registered proprietor of the subject land, sought compensation for a loss in value of the land due to a reservation for public purposes. The land was reserved for public purposes pursuant to a planning scheme and the original proprietor had died without selling the land. The case was heard in the Court of Appeal of the Supreme Court of Victoria. The primary issue was whether the respondents, who became registered proprietors as beneficiaries under the will of the deceased, were precluded from claiming compensation under section 98(1)(a) of the Planning and Environment Act 1987 because they were not the owners of the land at the time the reservation was imposed. The second issue was whether the respondents had 'acquired' the land within the meaning of section 108(2) of the P&E Act.

The Court of Appeal held that the applicants were not precluded from claiming compensation as they were owners at the time the right to compensation arose. The Court found that the correct interpretation of section 98(1)(a) is that it is sufficient that the claimant be the owner or occupier at the date the right to compensation arises. The Court clarified that the claim is limited to financial loss suffered as the natural, direct and reasonable consequence of the reservation. The Court further found that the applicants had not acquired the land within the meaning of section 108(2) of the P&E Act, as they had not acquired it since the reservation. The Court reconsidered the decision in Halwood Corporation Ltd v Roads Corporation and held that the reasoning in that case was incorrect.

The Court answered both questions in the negative. The Court granted leave for the consideration of the questions and provided guidance on the interpretation of sections 98 and 108 of the P&E Act. The Court also reconsidered the decision in Halwood Corporation Ltd v Roads Corporation and provided clarification on the correct interpretation of section 98(1)(a) of the P&E Act.