Walker Corporation Pty Ltd v Sydney Harbour Foreshore Authority

The High Court of Australia considered an appeal by Walker Corporation Pty Ltd against the Sydney Harbour Foreshore Authority concerning the amount of compensation payable for the compulsory acquisition of industrial zoned land. The dispute centred on whether the effect of the local council's conduct, which resisted attempts to rezone the land for residential development, should be disregarded when determining the land's market value under the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW).

The primary legal issue before the court was the interpretation of section 56(1) of the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW). Specifically, the court had to determine whether the decrease in the land's value, caused by the local council's refusal to rezone it for residential development, should be disregarded as an increase or decrease in value caused by the "proposal to carry out" the public purpose for which the land was acquired. This involved considering whether the council's conduct formed part of such a proposal and the relevance of common law principles from other jurisdictions.

The High Court reasoned that the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW) directs the disregard of value changes caused by the "proposal" to acquire land for a public purpose, rather than a broader "scheme" or "steps in the resumption process". The court found that the primary judge had erred in focusing on a perceived "unity of purpose" between government bodies and in disregarding the council's consistent refusal to rezone the land. The court held that the market value should be assessed without regard to the effect of the council's actions, as these actions were not part of the proposal to acquire the land for the public purpose in the manner contemplated by the Act.

The appeals were dismissed with costs.