RTA v Damjanovic

The Road and Traffic Authority (RTA) appealed to the Court of Appeal of New South Wales against a decision of the Land and Environment Court concerning compensation payable to Mr. Damjanovic following the compulsory acquisition of part of his land. The dispute centred on the valuation of the acquired land and the appropriate compensation to be awarded under the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW).

The primary legal issues before the Court of Appeal were whether the Land and Environment Court had erred in law in its determination of compensation. Specifically, the court was required to consider the relevance of planning controls and the extent to which compensation could be determined on the basis of a "planning assumption," as well as other factors affecting the valuation of the retained land, such as the impact of an access road. The court also considered its powers regarding appeals, including the discretion to order a new trial or remit the matter for further determination.

The Court of Appeal dismissed the appeals, finding no error of law in the Land and Environment Court's decision. The court affirmed that compensation could be assessed on the basis of a planning assumption, provided it was a reasonable assumption about future planning controls. The court also considered the "before and after" approach to valuation and the impact of the acquisition on the retained land, including the provision of an access road. The judges concluded that the Land and Environment Court had correctly applied the relevant valuation principles under the Act.