Sydney Metro v Expandamesh Pty Ltd

Sydney Metro appealed to the Court of Appeal of New South Wales against a decision of the Land and Environment Court concerning compensation for compulsory acquisition. The dispute arose from tunnelling works undertaken by Sydney Metro, which allegedly caused subsidence to the land owned by Expandamesh Pty Ltd. Expandamesh sought compensation under the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW), relying on provisions within Schedule 6B of the *Transport Administration Act 1988* (NSW).

The Court of Appeal was required to determine whether the appeal from the Land and Environment Court raised questions of law, as required for such appeals. Central to the dispute was the interpretation of the phrase "the surface of the overlying soil is disturbed" within Schedule 6B of the *Transport Administration Act 1988* (NSW). The court also had to consider whether a subsidence of 1.5mm or slightly more, resulting from the tunnelling works, entitled the registered proprietor to compensation under the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW), given the historical context and protective purpose of the relevant legislation.

The Court of Appeal applied conventional approaches to statutory interpretation, focusing on the text, context, and purpose of the legislation. It considered the historical development of the relevant provisions, dating back to 1880, and noted their protective purpose in favour of the State. The court concluded that the *de minimis* principle was apt in this context and that the minor subsidence experienced by Expandamesh did not constitute a disturbance of the surface of the overlying soil as contemplated by the legislation. Consequently, the court found that the pre-conditions for compensation under Schedule 6B of the *Transport Administration Act 1988* (NSW) were not met.

The appeal was allowed, and the orders of the Land and Environment Court were set aside. The Court of Appeal ordered that Expandamesh Pty Ltd was entitled to no compensation under the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW) in respect of the acquisition of the substratum of its land. The costs of the primary proceedings were remitted to the Land and Environment Court, with the Court of Appeal making no order as to the costs of the appeal itself, intending for each party to bear its own costs.