Roads and Traffic Authority (NSW) v Muir Properties Pty Ltd

The Roads and Traffic Authority (NSW) appealed and cross-appealed from orders of Bignold J in the Land and Environment Court concerning compensation for injurious affection. The dispute arose from the compulsory acquisition of land by the Authority for a proposed transitway, which resulted in the retained land of Muir Properties Pty Ltd having no direct access to the main road. The primary issue was the assessment of compensation for the injurious affection suffered by the retained land.

The court was required to determine whether the "before and after" valuation exercise for compensation purposes should include a discount for risk, and whether the principle established in *Point Gourde* applied to the assessment of injurious affection in this context. Further, the court had to consider the impact of the proposed transitway on the underlying zoning of the retained land and its effect on the compensation payable under section 55(f) of the *Land Acquisition (Just Terms Compensation) Act 1991*.

The court reasoned that the *Point Gourde* principle, which dictates that any increase in the value of retained land due to the public purpose for which other land is acquired should be disregarded, was not applicable to the assessment of injurious affection. It held that the "before and after" valuation should reflect the actual loss in value to the landowner, and that a discount for risk was appropriate in determining the compensation for injurious affection. The court found that the original assessment had incorrectly applied the *Point Gourde* principle and failed to adequately consider the risk discount.

Consequently, the appeal and cross-appeal were allowed. The orders of Bignold J regarding the quantum of injurious affection were set aside, and the respondent's claim for injurious affection was remitted to the Land and Environment Court for redetermination in accordance with the reasons provided. Each party was ordered to bear its own costs of the appeal and cross-appeal.