R & R Fazzolari Pty Ltd v Parramatta City Council

The High Court of Australia considered an appeal concerning the compulsory acquisition of land by Parramatta City Council. The appellants, R & R Fazzolari Pty Ltd and Mac's Pty Ltd, sought to restore declarations made by the Land and Environment Court that the Council's proposed acquisitions were unlawful. The core of the dispute revolved around whether the Council's acquisition of the appellants' land, as part of a public-private partnership for the redevelopment of Civic Place, was for the "purpose of re-sale" within the meaning of the *Local Government Act 1993* (NSW).

The legal issues before the High Court were primarily concerned with the interpretation of sections 186 and 188 of the *Local Government Act 1993* (NSW). Specifically, the Court had to determine whether the Council's acquisition of the appellants' land, under a development agreement that required the Council to hold the acquired land on trust for a private developer in exchange for money and money's worth, constituted an acquisition for the "purpose of re-sale". The Court also considered whether section 188(2)(a) of the Act, which allows for acquisition for re-sale if the land adjoins other land acquired for a different purpose, was applicable, and whether adjoining public roads vested in the Council qualified as land acquired under Part 1 of Chapter 8 of the Act.

The High Court, in a joint judgment, allowed the appeals. The Court reasoned that the "purpose of re-sale" in section 188(1) of the *Local Government Act 1993* (NSW) should be interpreted in its ordinary sense, meaning the exchange of property for money. The Court found that the complex financial arrangements under the development agreement did not amount to a re-sale in this ordinary sense. Furthermore, the Court determined that the adjoining land, comprising public roads already vested in the Council, was not acquired under Part 1 of Chapter 8 of the Act, thus rendering section 188(2)(a) inapplicable. The Court concluded that the Council's initiating and abiding purpose for acquiring the land was not re-sale, but rather the implementation of the Civic Place project as a function of the Council.

Consequently, the High Court set aside the orders of the Court of Appeal and restored the declarations made by the Land and Environment Court, finding the compulsory acquisitions unlawful. The appeals were allowed with costs.