The Public Trustee v The Commonwealth of Australia

The Public Trustee, acting on behalf of the estate of the late Mr. and Mrs. L, brought proceedings against the Commonwealth of Australia concerning the interpretation of a Crown grant and its effect on certain land. The dispute centred on whether the Crown grant, issued in 1919, reserved to the Crown a right to resume the land for public purposes, and if so, whether that right had been validly exercised. The matter was heard in the Supreme Court of New South Wales, Court of Appeal.

The primary legal issues before the Court of Appeal were: first, whether the language of the Crown grant, specifically the phrase "reserving to Us Our Heirs and Successors all such Lands as We may deem necessary to be reserved or used for the construction of Fortifications Military Establishments or other Public Works and Buildings," constituted a reservation of a right of resumption for public purposes; and second, if such a right existed, whether the Commonwealth had validly exercised this right by its actions in 1989.

The Court of Appeal considered the historical context and the plain meaning of the words used in the Crown grant. It held that the reservation clause was a clear and unambiguous reservation of a right to resume the land for public purposes. The Court then examined the Commonwealth's actions in 1989, which involved the declaration of the land as a defence area under the *Defence Act 1903* (Cth) and the subsequent notification of resumption. The Court found that these actions were consistent with the exercise of the reserved right and that the resumption was therefore valid. The legal principle applied was that unambiguous reservations in Crown grants are to be given their full effect, and that statutory powers exercised in accordance with the terms of such reservations are valid.

The Court of Appeal dismissed the appeal and affirmed the decision of the primary judge.