Precision Rubber Services v Parramatta City Council

Precision Rubber Services Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the appellant's entitlement to compensation for the compulsory acquisition of its land by Parramatta City Council (the respondent). The core of the disagreement lay in the valuation of the land and the compensation payable under the relevant legislation.

The Court of Appeal was required to determine whether the Supreme Court had erred in its assessment of the compensation. Specifically, the issues included whether the Supreme Court had correctly applied the principles of valuation for compulsory acquisition, particularly in relation to the potential for development of the acquired land and the consideration of injurious affection. The court also had to consider the proper interpretation of the *Public Works Act 1912* (NSW) in relation to the assessment of compensation.

The Court of Appeal analysed the evidence presented regarding the highest and best use of the land and the potential for subdivision and development. It applied established principles of valuation, including the concept of market value and the consideration of any loss or damage suffered by the owner as a result of the acquisition. The court affirmed that compensation should reflect the value of the land to the owner, taking into account its potential uses, and also any adverse impact on remaining land.

The Court of Appeal upheld the appeal in part, finding that the Supreme Court had made an error in its calculation of compensation. The court varied the amount of compensation awarded to the appellant.