Tempe Recreation (D.500215 and D.1000502) Reserve Trust v Sydney Water Corporation

The appeal concerned the construction of an easement acquired by Sydney Water Corporation over land managed by the Tempe Recreation Reserve Trust. The dispute arose from the determination of compensation payable to the Trust for the acquisition of this easement. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were: (1) the proper construction of the easement, specifically whether it was permissible to have regard to the terms of other easements within the same registered memorandum, the structure of definitions, textual similarities, and the defined term itself; and (2) the determination of compensation under s 106A of the *Crown Lands Act 1989* (NSW) for the acquisition of the easement. Additionally, the Court considered the operation of costs rules, particularly in relation to an offer of compromise, in proceedings where "costs follow the event" was not the default starting point.

The Court of Appeal analysed the principles of easement construction, considering the text of the easement in its context and the surrounding circumstances. It was held that the structure of the registered memorandum and the defined terms within it were relevant to the construction of the easement. The Court also addressed the principles governing the assessment of compensation for easements acquired under the *Crown Lands Act 1989* (NSW). The Court's orders reflected a complex resolution of the costs of the proceedings, including the appeal and cross-appeal, taking into account the offer of compromise and the overall outcome.