Salmon v Richardson

Case [2014] QLC 9


LAND COURT OF QUEENSLAND

CITATION: Salmon v Richardson & Anor  [2014] QLC 9
PARTIES:

Gavin Keith Salmon
(applicant)

v

Raymond Edward Richardson and Glenda Joyce Hoare
(respondents)

FILE NO: MRA645-13
DIVISION: General Division
PROCEEDING: Application for determination of compensation
DELIVERED ON: 12 March 2014
DELIVERED AT: Brisbane
HEARD ON: Heard on the Papers
Decision reserved on 24 February 2014
HEARD AT: Brisbane
MEMBER: WA Isdale
ORDERS:

1. Compensation is determined in the amount of $2,000 per annum in accordance with s 281 of the Mineral Resources Act 1989.

2.    The applicant shall pay the respondents the total compensation of $2,000 per annum in advance of the year to which it relates with the first payment being made within 30 days of the renewal of the mining lease.

3.    The parties are to bear their own costs of the present proceedings.

CATCHWORDS:

Mineral Resources Act 1989, s 279, s 281

Mining Lease – renewal – determination of compensation

Mitchell v Oakhill and Mitchell (unreported, Land Court of Queensland, 10 March 1998)
Shaw v Heritage Holdings Pty Ltd (1992-1993) 14 QLCR 139
Smith v Cameron (1986-1987) 11 QLCR 64

APPEARANCES: The parties made written submissions and requested that the Court determine the matter on those papers.

Background

  1. On 5 November 2013 the Mining Registrar at Emerald referred to the Land Court the matter of the compensation which the miner (the applicant) must pay to the landowners (the respondents) in regard to the renewal for a proposed five year period of Mining Lease (ML) 70213 for sapphire. The Mineral Resources Act 1989 (the Act) requires that compensation be determined before the lease is renewed. The parties have been unable to agree on the compensation payable so the matter has been referred to the Court to determine compensation as required by the Act. The parties have provided the material upon which they wish the Court to make its determination.

The legal framework within which the Court must act

  1. Section 279 of the Act provides that a mining lease shall not be renewed unless an agreement in relation to compensation has been filed at the office of the Mining Registrar, or in the absence of such an agreement, a determination of compensation has been made by the Court. The matters which must be considered by the Court are set forth in s 281(3) of the Act. While s 281 sets out the matters to be considered, it does not define any precise method of assessment. In Smith v Cameron (1986) 11 QLCR 64, the Land Court said at p 74:

    “The section in my opinion merely identifies matters which shall be taken into consideration in making the assessment. It does not prescribe a method of valuation. No doubt each case will depend on its own facts and circumstances. …”

  1. In Shaw v Heritage Holdings Pty Ltd (1992-93) 14 QLCR 139, the Court at p 146 said:

    “The method of assessment remains a matter which will be governed by the facts and circumstances of…

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AGLC
Salmon v Richardson [2014] QLC 9
Case
[2014] QLC 9
Decision Date

CaseChat Overview and Summary

The case of Salmon v Richardson involved the applicant, Salmon, and the respondents, Richardson and others, in a dispute concerning the renewal of a mining lease under the Mineral Resources Act 1989. The central issue was the determination of compensation for the renewal of the mining lease, which was opposed by the respondents. The matter was heard in the Supreme Court of Queensland.

The court was required to determine the appropriate amount of compensation to be paid by the applicant to the respondents for the renewal of the mining lease. This involved considering the provisions of section 281 of the Mineral Resources Act 1989, which outlines the process for determining compensation for mining lease renewals. The court also needed to consider the principles of fairness and reasonableness in the context of the parties' respective positions and the terms of the lease agreement.

The court found that the compensation should be set at $2,000 per annum, in accordance with section 281 of the Mineral Resources Act 1989. The court considered the nature of the lease, the period for which it was renewed, and the terms of the original agreement between the parties. The court emphasised the need for the compensation to reflect a fair and reasonable outcome for both parties, taking into account the economic value of the lease and the rights and obligations of the parties under the Act. The court also noted that the compensation should be paid in advance of the year to which it relates, with the first payment to be made within 30 days of the renewal of the mining lease.

The final orders of the court included the determination of compensation at $2,000 per annum, with the first payment to be made within 30 days of the renewal of the mining lease. The court also ordered that the parties bear their own costs of the proceedings.

Orders

Orders of the court

1. Compensation is determined in the amount of $2,000 per annum in accordance with s 281 of the Mineral Resources Act 1989.

2. The applicant shall pay the respondents the total compensation of $2,000 per annum in advance of the year to which it relates with the first payment being made within 30 days of the renewal of the mining lease.

3. The parties are to bear their own costs of the present proceedings.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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