Sydney Harbour Foreshore Authority v Walker Corporation Pty Ltd

Sydney Harbour Foreshore Authority appealed and Walker Corporation Pty Ltd cross-appealed from orders of the Land and Environment Court concerning the determination of just terms compensation for land acquired by the Authority. The dispute centred on the valuation of the acquired land, which was zoned for waterfront industrial use, and whether it should be valued as if it had been zoned for residential use, and the impact of contamination on its value.

The Court of Appeal was required to determine the meaning of 'proposal' in section 56(1)(a) of the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW) in the context of whether the land could be treated as having been zoned for residential use. It also had to consider whether a contractual right to remediation of contaminated land could be taken into account when determining the value of the land at the date of acquisition.

The Court found that the Land and Environment Court had erred in its interpretation of 'proposal' and in its approach to valuing the contaminated land. The Court of Appeal held that the contractual right to remediation was a relevant factor in determining the market value of the land. Consequently, the appeal was allowed, the orders of the Land and Environment Court were set aside, and the matter was remitted to the Land and Environment Court for further determination. The Appellant was awarded costs of the appeal and cross-appeal.