Moloney v Roads and Maritime Services

The case of *Moloney v Roads and Maritime Services* concerned a dispute over compensation awarded for the compulsory acquisition of land by the Roads and Maritime Services. The appellants sought compensation for both the market value of the acquired land and for disturbance, specifically the costs associated with relocating to a replacement dwelling on their remaining land and for loss of potential profits from the acquired land. The matter was heard by Beazley P, Basten and Payne JJA in the Court of Appeal of New South Wales.

The primary legal issues before the court were whether the appellants were entitled to claim compensation for disturbance in addition to the market value of the acquired land, particularly concerning the costs of relocating to a replacement dwelling on the residue land and the loss of potential profits from the acquired land. These issues required the court to consider the relationship between the heads of compensation for market value and disturbance as provided for under the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW), specifically sections 54, 55, and 59.

The Court of Appeal reasoned that compensation for disturbance is intended to cover losses that are not reflected in the market value of the acquired land. It held that where compensation for market value already includes an amount for the loss of amenity to the main dwelling on the residue land, a separate claim for the cost of relocation to a replacement dwelling on that same residue land would be duplicative. Similarly, the court found that if compensation for market value had accounted for the potential profits from the acquired land, a claim for disturbance based on the loss of those profits would also be impermissible as it would amount to double recovery. The court affirmed that the Act aims to provide just terms compensation, which requires careful consideration to avoid overcompensation.

The appeal was dismissed, and the appellants were ordered to pay the respondent’s costs.