Roads and Maritime Services v Allandale Blue Metal Pty Ltd

The appeal concerned a dispute over compensation payable by Roads and Maritime Services (RMS) to Allandale Blue Metal Pty Ltd (Allandale) following the acquisition of land. The Land and Environment Court of New South Wales had made an order regarding the compensation amount, which RMS sought to challenge.

The central legal issues before the Court of Appeal were whether the compensation payable to the owner of the acquired land should be reduced due to a payment made to the lessee, whether the owner's interest was qualified by the expectation of the lessee's continued quarrying operations, and whether the lessee's compensable interest exceeded the market value of its monthly tenancy. Additionally, the court considered the valuation of residual land and whether any loss in value was attributable to the purpose for which the land was acquired, as well as the interpretation of statutory provisions concerning compensation on just terms, including the meaning of "market value" and "special value of the land."

The Court of Appeal allowed the appeal in part, setting aside the original compensation order. The court reasoned that the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) required compensation to be assessed on a "just terms" basis, which encompassed various elements including market value, special value, and loss attributable to disturbance. The court found that the initial assessment had not adequately accounted for these elements, particularly in relation to the lessee's interest and the residual value of the land. The court determined that the compensation payable should be $3,115,171.