Walker Corporation Pty Limited v Sydney Harbour Foreshore Authority

Walker Corporation Pty Limited (Walker) sought to restrain the Sydney Harbour Foreshore Authority (SHFA) from exercising its statutory power to compulsorily acquire land owned by Walker. The dispute concerned the validity of the SHFA's decision to acquire the land, which Walker argued was made for an improper purpose. The case was heard in the High Court of Australia.

The central legal issue before the High Court was whether the SHFA had acted for an improper purpose in exercising its compulsory acquisition powers under the *Sydney Harbour Foreshore Authority Act 1998* (NSW). Specifically, the court had to determine if the SHFA's stated purpose of acquiring the land for redevelopment was a pretext for an ulterior motive, such as preventing Walker from developing the land in a manner that might compete with other projects or interests favoured by the SHFA.

The High Court, comprising Gleeson CJ and Callinan J, found that the SHFA's decision to acquire the land was not vitiated by an improper purpose. Their Honours reasoned that the statutory power of compulsory acquisition was granted for the purpose of enabling the SHFA to undertake redevelopment and management of the foreshore. The evidence did not establish that the SHFA's decision was driven by an ulterior motive or that the stated purpose was a mere sham. The court applied the principles of administrative law concerning the exercise of statutory powers, emphasizing that a decision will only be invalid for improper purpose if the improper purpose is the sole or dominant purpose for which the power is exercised, and that the onus is on the party alleging improper purpose to prove it.

The High Court dismissed Walker Corporation Pty Limited's application for an injunction to restrain the compulsory acquisition.