Roads and Maritime Services v United Petroleum Pty Ltd

Roads and Maritime Services (RMS) appealed to the Court of Appeal of New South Wales against a decision of the Land and Environment Court concerning compensation payable to United Petroleum Pty Ltd (United Petroleum) following the compulsory acquisition of land. The dispute centred on the compensation United Petroleum was entitled to following the acquisition of land on which it operated a service station. United Petroleum claimed compensation for the loss attributable to disturbance, including the termination of its business and the loss of ongoing profits, as well as additional rental paid to RMS for the period between the compulsory acquisition and the date vacant possession was given.

The Court of Appeal was required to determine whether United Petroleum was entitled to compensation for the loss of ongoing profits of its business, and whether it could claim additional rental paid to the acquiring authority. The court also had to consider the appropriate order for costs, particularly in light of United Petroleum being successful at trial but unsuccessful on appeal.

The Court of Appeal allowed the appeal, setting aside the Land and Environment Court's judgment. The court reasoned that the interest acquired by RMS was terminable on one month's notice, which significantly limited the scope of compensation for loss of ongoing profits. The court distinguished the present case from *Health Administration Corporation v George D Angus Pty Ltd* [2014] NSWCA 352, finding that the specific terms of the acquisition in this instance did not support a claim for loss of future profits. The court also found that the claim for additional rental was not sustainable. Applying the principles in *Dillon v Gosford City Council* [2011] NSWCA 328, the court ordered that United Petroleum pay RMS's costs of the appeal, notwithstanding United Petroleum's success at trial, as the claim on appeal was not considered unreasonable.