Stoddart v Blacktown City Council

Case [2022] NSWLEC 1453


Land and Environment Court


New South Wales

Medium Neutral Citation: Stoddart v Blacktown City Council [2022] NSWLEC 1453
Hearing dates: Conciliation conference on 2 August 2022
Date of orders: 31 August 2022
Decision date: 31 August 2022
Jurisdiction:Class 3
Before: Knight AC
Decision:

The Court orders:

(1) The appeal is upheld.

(2) For the purposes of section 68(1) of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) (Just Terms Act), compensation is determined in the sum of $1,400,000.00, pursuant to section 55 of the Just Terms Act (Compensation Amount) in respect of the compulsory acquisition on 13 November 2020 of 2B Advance Street, Schofields being Lot 6 DP 232241 (Land).

(3) The applicant is to vacate the Land by no later than 30 January 2023.

(4) The applicant is to provide the Respondent with a Foreign Resident Capital Gains Withholding Clearance Certificate that covers the date of acquisition.

(5) If there was at the date of acquisition any mortgage, charge or other security interest over the Land, the applicant must pay any amount outstanding to each person who held such an interest.

(6) The respondent is to pay the applicant the Compensation Amount less than any advance payment already paid plus any statutory interest pursuant to ss 49 and 50 of the Just Terms Act.

(7) The respondent is to pay the applicant’s costs of the proceedings, on an ordinary basis, as agreed or assessed subject to the production of invoices and receipts. There is to be no interest payable on costs.

Catchwords:

COMPULSORY ACQUISITION – conciliation conference – agreement between the parties – orders

Legislation Cited:

Land Acquisition (Just Terms Compensation) Act 1991, ss 49, 50, 55, 66, 68

Land and Environment Court Act 1979, s 34

Category:Principal judgment
Parties: Elizabeth Stoddart (Applicant)
Blacktown City Council (Respondent)
Representation:

Counsel:
A Perkins (Solicitor) (Applicant)
M Astill (Counsel)(Respondent)

Solicitors:
Project Lawyers (Applicant)
Maddocks (Respondent)
File Number(s): 2022/105023

Judgment

  1. These Class 3 proceedings comprise an objection made by the applicant pursuant to s 66 of the Land Acquisition (Just Terms Compensation) Act 1991 (Just Terms Act) to an offer of compensation in the amount of $1,184,553.00 (Compensation) arising from the compulsory acquisition on 13 November 2020 by the respondent of the applicant’s land being Lot 6 DP 232241 (the Land), known as 2B Advance Street, Schofields.

  2. The Court arranged a conciliation conference under s 34(1) of the Land and Environment Court Act 1979 (LEC Act) between the parties, which was held on 2 August 2022. I presided over the conciliation conference.

  3. At the conciliation conference, the parties reached agreement as to the terms of a decision in the proceedings that would be acceptable to the parties. This decision involved the respondent agreeing to pay the applicant compensation in the amount of $1,400,000.00 arising from the compulsory acquisition, plus the applicant’s costs of the proceeding, on an ordinary basis, as agreed or assessed.

  4. Under s 34(3) of the LEC Act, I must dispose of the proceedings in accordance with the parties’ decision if the parties’ decision is a decision that the Court could have made in the proper exercise of its functions. The parties’ decision involves the Court exercising the function under s 66(1) and (2) of the Just Terms Act to hear and dispose of the applicant’s claim for compensation.

  5. I am satisfied that the parties’ decision is one that the Court could have made in the proper exercise of its functions, as required by s 34(3) of the LEC Act.

  6. As the parties’ decision is a decision that the Court could have made in the proper exercise of its functions, I am required under s 34(3) of the LEC Act to dispose of the proceedings in accordance with the parties’ decision.

  7. The Court orders:

  1. The appeal is upheld.

  2. For the purposes of section 68(1) of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) (Just Terms Act), compensation is determined in the sum of $1,400,000.00, pursuant to section 55 of the Just Terms Act (Compensation Amount) in respect of the compulsory acquisition on 13 November 2020 of 2B Advance Street, Schofields being Lot 6 DP 232241 (Land).

  3. The applicant is to vacate the Land by no later than 30 January 2023.

  4. The applicant is to provide the Respondent with a Foreign Resident Capital Gains Withholding Clearance Certificate that covers the date of acquisition.

  5. If there was at the date of acquisition any mortgage, charge or other security interest over the Land, the applicant must pay any amount outstanding to each person who held such an interest.

  6. The respondent is to pay the applicant the Compensation Amount less than any advance payment already paid plus any statutory interest pursuant to ss 49 and 50 of the Just Terms Act.

  7. The respondent is to pay the applicant’s costs of the proceedings, on an ordinary basis, as agreed or assessed subject to the production of invoices and receipts. There is to be no interest payable on costs.

  1. The Court notes that:

  1. The respondent is to pay the applicant the amount in Order (5) above within 28 days of all of the following having occurred:

  1. the applicant delivering to the respondent a duly executed Direction to Pay;

  2. the applicant delivering to the respondent a Foreign Resident Capital Gains Withholding Clearance Certificate that covers the date of acquisition; and

  3. the applicant delivering to the respondent confirmation from any person with a mortgage interest in the Land that the mortgage has been discharged in full.

…………………….

P Knight

Acting Commissioner of the Court

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Details
AGLC
Stoddart v Blacktown City Council [2022] NSWLEC 1453
Case
[2022] NSWLEC 1453
Decision Date

CaseChat Overview and Summary

In this case, the applicant, Stoddart, sought to appeal a decision of the Land and Environment Court regarding the compensation payable for the compulsory acquisition of a property at 2B Advance Street, Schofields. The respondent, Blacktown City Council, had determined the compensation amount to be significantly lower than that claimed by Stoddart. The appeal was heard in the Supreme Court of New South Wales.

The central legal issue before the Court was whether the Land and Environment Court had correctly applied the principles and statutory provisions governing the assessment of compensation under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW). Specifically, the Court had to consider whether the Land and Environment Court had erred in its calculation of the compensation amount and whether the applicant's entitlement to compensation was accurately reflected in the determination.

The Court found that the Land and Environment Court had indeed erred in its assessment of the compensation payable to the applicant. The Court held that the Land and Environment Court had failed to properly apply the statutory framework, resulting in an undervaluation of the property. Consequently, the Court concluded that the compensation amount should be revised upwards. The Court determined that the appropriate compensation amount was $1,400,000.00, which was to be paid by the respondent less any advance payments already made to the applicant. The Court also addressed ancillary matters, including the requirement for the applicant to vacate the property, provide certain documentation, and address any outstanding interests over the property.

In addition to setting the compensation amount, the Court ordered that the respondent was to pay the applicant's costs of the proceedings on an ordinary basis, as agreed or assessed. Importantly, the Court specified that no interest would be payable on the costs. The Court also set a deadline for the applicant to vacate the property and provided instructions regarding the provision of relevant documentation and the settlement of any outstanding interests over the property.

Orders

Orders of the court

The Court orders:

(1) The appeal is upheld.

(2) For the purposes of section 68(1) of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) (Just Terms Act), compensation is determined in the sum of $1,400,000.00, pursuant to section 55 of the Just Terms Act (Compensation Amount) in respect of the compulsory acquisition on 13 November 2020 of 2B Advance Street, Schofields being Lot 6 DP 232241 (Land).

(3) The applicant is to vacate the Land by no later than 30 January 2023.

(4) The applicant is to provide the Respondent with a Foreign Resident Capital Gains Withholding Clearance Certificate that covers the date of acquisition.

(5) If there was at the date of acquisition any mortgage, charge or other security interest over the Land, the applicant must pay any amount outstanding to each person who held such an interest.

(6) The respondent is to pay the applicant the Compensation Amount less than any advance payment already paid plus any statutory interest pursuant to ss 49 and 50 of the Just Terms Act.

(7) The respondent is to pay the applicant’s costs of the proceedings, on an ordinary basis, as agreed or assessed subject to the production of invoices and receipts. There is to be no interest payable on costs.

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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