Walker Corporation Pty Ltd v Sydney Harbour Foreshore Authority

The case of *Walker Corporation Pty Ltd v Sydney Harbour Foreshore Authority* concerned a dispute between Walker Corporation Pty Ltd and the Sydney Harbour Foreshore Authority regarding the interpretation of a development agreement. The primary issue revolved around the Authority's obligations to grant certain approvals for a significant waterfront development project in Sydney.

The court was required to determine whether the Sydney Harbour Foreshore Authority had acted unlawfully in refusing to grant a crucial development approval to Walker Corporation. Specifically, the court had to consider whether the Authority's refusal was based on considerations extraneous to the terms of the development agreement and whether the Authority had failed to exercise its discretion in good faith and for the purposes for which it was conferred.

Kirby J, in his judgment, emphasised that public authorities exercising statutory powers must do so in accordance with the terms of any governing contract and must not fetter their discretion by irrelevant considerations. His Honour found that the Authority had acted unlawfully by refusing the approval, as its decision was influenced by external political pressures and a desire to avoid public controversy, rather than by a proper assessment of the development proposal against the contractual criteria. The Authority's conduct was found to be a failure to exercise its power for the purpose for which it was granted, thereby breaching its contractual obligations to Walker Corporation.