RW Miller and Co Pty Ltd v Shortland County Council

RW Miller and Co Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the appellant's entitlement to compensation for the compulsory acquisition of its land by the Shortland County Council (the respondent). The appellant argued that the Supreme Court had erred in its assessment of the compensation payable.

The primary legal issue before the Court of Appeal was whether the appellant was entitled to compensation for the loss of potential profits that would have been derived from the development of the acquired land. Specifically, the court had to determine whether such potential profits constituted "market value" for the purposes of the relevant acquisition legislation, or if they were too speculative to be included in the compensation assessment.

The Court of Appeal held that compensation for compulsory acquisition should be assessed on the basis of the market value of the land at the date of acquisition, taking into account its potential for development. However, the court distinguished between a realistic and ascertainable potential for profit and mere speculative hopes. It found that the appellant's claim for lost profits was based on speculative assumptions about future market conditions and development viability, which were not sufficiently certain to be included in the market value. The court applied the principle that compensation should reflect the actual market value, not hypothetical or speculative gains.

The appeal was dismissed, and the decision of the Supreme Court was affirmed.