Melino v Roads and Maritime Services

The appeal in *Melino v Roads and Maritime Services* concerned a dispute over compensation awarded for the compulsory acquisition of land under the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW). The parties involved were the landowners, Mr. and Mrs. Melino, and the acquiring authority, Roads and Maritime Services. The core of the disagreement lay in whether certain costs claimed by the landowners for disturbance were recoverable in addition to the market value of the acquired land. The matter was heard in the Court of Appeal of New South Wales.

The Court of Appeal was required to determine the relationship between the heads of compensation for market value and disturbance under the Act. Specifically, the court had to consider whether claims for disturbance costs, such as those relating to cattle years and farm sheds, were available when compensation for market value had already been awarded. The central legal question was whether the costs claimed were reasonably incurred as a direct or natural consequence of the acquisition and whether they related to the actual use of the acquired land.

The Court of Appeal reasoned that the Act provides for compensation for market value and, in addition, for disturbance. It clarified that disturbance compensation is intended to cover losses that are a direct and natural consequence of the acquisition, beyond the mere diminution in market value. The court found that the initial assessment by the Land and Environment Court had not adequately considered the potential for additional compensation for disturbance items, particularly concerning the cattle years and farm sheds, in a way that properly reflected the principles of the Act.

Consequently, the Court of Appeal allowed the appeal, setting aside the specific orders made by the primary judge regarding disturbance items. The matter was remitted back to the Land and Environment Court for a redetermination of whether any further allowance for the cattle years and farm sheds was warranted beyond the amount already awarded, and to make any necessary additional award. No order was made as to costs in the Court of Appeal.