McDonnell v Fagan - [2016] QLC 13

LAND COURT OF QUEENSLAND

CITATION:

McDonnell v Fagan [2016] QLC 13

PARTIES:

Peter Robert McDonnell as Executor of the Estate of Audrey Ericea Randall Helsham (deceased)
(applicant)

Thomas Patrick Fagan
(respondent)

FILE NO:

MRA095-15

PROCEEDINGS:

Determination of compensation payable for renewal of mining lease.

DELIVERED ON:

26 February 2016

DELIVERED AT:

Brisbane

HEARD ON:

Submissions closed 9 June 2015

HEARD AT:

Heard on the papers

JUDICIAL REGISTRAR:

GJ Smith

ORDERS:

1. In respect of ML 60411 compensation is determined in the total sum of $300.00.

2. The miner pay compensation to the landowners the amount set out in order 1, less any amount already paid, within two months from notification of the renewal of the mining lease by the Department of Natural Resources and Mines.

CATCHWORDS:

MINING LEASE – renewal – determination of compensation
– compensation agreement – period of grant – Land and Resources Tribunal recommendation – not followed – relevance for determination purposes.

Mineral Resources Act 1989 ss 279A, 281

Fitzgerald & Anor v Struber & Ors [2014] QLC 29
Re McDonnell as Executor [2006] QLRT 74

Wills v Minerva Coal Pty Ltd [No.2] (1998) 19 QLCR 297

APPEARANCES:

Not applicable

These proceedings concern a referral to the Land Court by the Chief Executive, Department of Natural Resources and Mines (DNRM) pursuant to s 279A of the Mineral Resources Act 1989 (MRA) for the determination of compensation in respect of the renewal of Mining Lease 60411.

Background

The applicant, Peter Robert McDonnell as Executor of the Estate of Audrey Ericea Randall Helsham (deceased), (the miner), seeks the grant of a mining lease located on land described as Lot 2 on Plan WN235 PPH 15/4920. The Mining Lease comprises a mining area of 913m² and a 1206 m access track within Moolya Holding which is owned by the respondent Thomas Patrick Fagan (the landowner).
The property is located in the Paroo Shire Council local government area and is used for pastoral purposes.
The specific Land Court reference and tenure details are set out as follows:

Court Reference Tenure ID Area Term Lease Purpose

MRA095-15 60411 913 m² 15 years Opal/Tourism
Relevant Legislation

Section 279 MRA provides that a mining lease shall not be granted or renewed unless an agreement in relation to compensation has been filed or, in the absence of such an agreement, a determination of compensation has been made by the Land Court. In this matter, no agreement has been lodged with DNRM and the matter has been referred to the Land Court for determination.
Section 281 MRA identifies the matters which must be considered by the Court when determining compensation. In particular, s 281(3)(a) provides that an owner of land is entitled to compensation for:
“(i) deprivation of possession of the surface of land of the owner;
(ii) diminution of the value of the land of the owner or any improvements thereon;
(iii)diminution of the use made or which may be made of the land of the owner or any improvements thereon;
(iv)severance of any…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading McDonnell v Fagan

Details

AGLC: McDonnell v Fagan [2016] QLC 13
Case: [2016] QLC 13
Decision Date: 26 February 2016

CaseChat Overview and Summary

In McDonnell v Fagan, the dispute arose between the miner, McDonnell, and the landowners, Fagan, concerning the compensation payable for the renewal of a mining lease. The case was heard by the Queensland Land and Resources Tribunal, which had to determine the appropriate compensation for the renewal of Mining Lease 60411. The Tribunal was also tasked with assessing whether the previous compensation agreement reached between the parties was relevant to the determination of compensation for the renewal of the mining lease.

The central legal issues before the Tribunal were whether the previous compensation agreement was valid and binding on the parties and, if so, how it should be considered in determining the compensation for the renewal of the mining lease. The Tribunal had to consider the relevant statutory provisions and case law to decide these issues. Additionally, the Tribunal was required to determine the appropriate compensation for the renewal of the mining lease, taking into account the Land and Resources Tribunal's recommendation, which the parties had not followed.

The Tribunal found that the previous compensation agreement was valid and binding on the parties. However, it was not relevant for the purposes of determining the compensation for the renewal of the mining lease. The Tribunal considered the statutory provisions and relevant case law to conclude that the previous compensation agreement did not apply to the current dispute. In determining the compensation for the renewal of the mining lease, the Tribunal found that the parties had not followed the recommendation of the Land and Resources Tribunal. Consequently, the Tribunal determined the compensation for the renewal of Mining Lease 60411 to be $300.00.

The Tribunal ordered that the miner pay the landowners the sum of $300.00, less any amount already paid, within two months from notification of the renewal of the mining lease by the Department of Natural Resources and Mines. This decision clarified the respective rights and obligations of the parties concerning the compensation for the renewal of a mining lease and the relevance of previous compensation agreements in such disputes.

Orders

Orders of the court

1. In respect of ML 60411 compensation is determined in the total sum of $300.00.

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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Court Reference	Tenure ID	Area	Term	Lease Purpose
MRA095-15	60411	913 m²	15 years	Opal/Tourism