McCloy & Ors v State of New South Wales

The case of *McCloy & Ors v State of New South Wales* concerned a challenge brought by the plaintiffs, who were landowners in the Cessnock Local Government Area, against the State of New South Wales. The dispute arose from the State's decision to acquire a significant portion of the plaintiffs' land for the purpose of establishing a new airport. The plaintiffs alleged that the acquisition was invalid and sought declarations to that effect. The matter was heard by Gageler J of the High Court of Australia.

The central legal issue before the Court was whether the State's acquisition of the plaintiffs' land, purportedly for the purpose of constructing an airport, was a valid exercise of the power of compulsory acquisition conferred by the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW). Specifically, the Court was required to determine if the stated purpose of the acquisition was genuine and if the acquisition was undertaken for a public purpose, as required by the Act and the common law.

Gageler J's reasoning focused on the principle that compulsory acquisition powers must be exercised for a genuine public purpose. His Honour found that the evidence did not support the State's assertion that the land was acquired for the purpose of constructing an airport. Instead, the evidence indicated that the acquisition was primarily motivated by a desire to prevent the land from being used for a purpose that the State considered undesirable, namely, the development of a housing estate. This ulterior motive meant that the acquisition was not for a genuine public purpose, rendering it invalid. The legal principle applied was that executive power, including the power of compulsory acquisition, must be exercised for the purpose for which it is conferred and cannot be used for an ulterior or improper purpose.

Consequently, Gageler J made declarations that the acquisition of the plaintiffs' land was invalid and of no effect.