Sydney Water Corporation v Turano & Anor

Sydney Water Corporation appealed to the High Court of Australia against a decision of the New South Wales Court of Appeal, which had overturned a judgment in favour of Sydney Water. The dispute concerned the interpretation of a statutory indemnity provision within the *Water Management Act 2000* (NSW) and its application to claims brought by landowners, Mr and Mrs Turano, for damage to their property allegedly caused by Sydney Water's activities. The Turanos had sought damages for loss of amenity and diminution in the value of their land.

The central legal issue before the High Court was whether the indemnity provision in section 337 of the *Water Management Act 2000* (NSW) operated to preclude the Turanos from pursuing their common law claims for nuisance and negligence against Sydney Water. Specifically, the Court had to determine the scope of the indemnity granted to Sydney Water by the Act and whether it extended to cover damages of the kind claimed by the Turanos, or if it was limited to specific types of claims or circumstances.

The High Court held that section 337 of the *Water Management Act 2000* (NSW) did not operate to exclude the Turanos' common law claims. The Court reasoned that the indemnity provision was intended to protect Sydney Water from liability arising from the exercise of its statutory powers in a way that was authorised by the Act, but it did not extend to protect Sydney Water from liability for tortious conduct that caused damage to private property, such as nuisance or negligence. The Court emphasised the importance of preserving common law rights unless there is a clear statutory intention to abrogate them, and found no such clear intention in the wording of section 337.

Consequently, the High Court dismissed Sydney Water Corporation's appeal, upholding the decision of the New South Wales Court of Appeal. The matter was remitted to the Supreme Court of New South Wales for further proceedings consistent with the High Court's judgment.