Parramatta City Council v R&R Fazzolari Pty Ltd; Parramatta City Council v Mac's Pty Ltd

Parramatta City Council appealed decisions of Biscoe J in proceedings brought by R&R Fazzolari Pty Ltd and Mac's Pty Ltd. The dispute concerned the Council's proposed compulsory acquisition of land owned by the respondents, which formed part of the broader Civic Place redevelopment project in Parramatta. The respondents argued that the Council's acquisition was unlawful.

The Court of Appeal was required to determine whether the Council's proposed compulsory acquisition of the respondents' land was for the purpose of exercising its statutory functions under s 186(1) of the Local Government Act 1993 (NSW), or if the land adjoined or was in the vicinity of other land proposed to be acquired under Part 1 of Chapter 8 of that Act, as per s 186(2)(b). Further, the Court had to consider whether the acquisition was for the purpose of resale under s 188(1), and if so, whether the respondents' land formed part of, or adjoined or was in the vicinity of, other land acquired at the same time for a purpose other than resale, pursuant to s 188(2)(a).

The Court allowed the appeals, setting aside the declarations and orders made by the primary judge. It held that the Council's proposed acquisition was for the purpose of exercising its statutory functions, and that the land in question was part of a larger redevelopment scheme integral to the Council's functions. The Court distinguished between the purpose of an acquisition and the motive behind it, finding that the dominant purpose of the acquisition was the implementation of the Parramatta Civic Place Master Plan and the exercise of the Council's functions, rather than a mere intention to resell the land.

Consequently, the applications filed by Mac's Pty Limited and R&R Fazzolari Pty Ltd were dismissed. The respondents were ordered to pay the appellant's costs of the applications and the appeals, with a certificate under the Suitor's Fund Act 1951 available if otherwise qualified.