Transport for NSW v Eureka Operations Pty Ltd [2022] NSWCA 56

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Transport for NSW v Eureka Operations Pty Ltd [2022] NSWCA 56 Hearing dates: 3 December 2021 Decision date: 12 April 2022 Before: Leeming JA at [1]; White JA at [16]; Preston CJ of LEC at [57]. Decision: 1. Appeal dismissed with costs. 2. Cross-appeal allowed with costs. 3. Remit proceedings to the Land and Environment Court to be redetermined having regard to the extension of the term of the respondent's leasehold interest to 2 February 2029 subject to the possibility of earlier termination as explained in the reasons of Preston CJ of LEC. Catchwords: LAND VALUATION — compulsory acquisition – partial acquisition of land – lease of land – lease to operate service station and convenience store business – compensation payable – market value of acquired land – decrease in value of residue land - before and after approach to determine compensation – appropriate valuation method – assessment of diminution in cash flow of business– whether valuation method available – whether valuation methodology accepted by primary judge raises question of law – agreement for term of lease to be extended – equitable term of lease – compensation to be determined having regard to equitable term of lease Legislation Cited: Land Acquisition (Just Terms Compensation) Act 1991 (NSW) ss 37, 55, 56 Land and Environment Court Act 1979 (NSW) ss 25, 5. Uniform Civil Procedure Rules 2005 (NSW) rr 51.8, 51.17, 51.41. Cases Cited: Almona Pty Ltd v Roads and Traffic Authority (NSW) (2008) 160 LGERA 375; [2008] NSWLEC 112 Barkat v Roads and Maritime Services [2019] NSWCA 240 Brock v Roads and Maritime Services (2012) 191 LGERA 267; [2012] NSWCA 404 Chan v Cresdon Pty Ltd (1989) 168 CLR 242; [1989] HCA 63 Dockrill v Cavanagh (1944) SR (NSW) 78 Gosford Shire Council v Green (1980) 48 LGRA 201 Ferella & Anor v Chief Commissioner of State Revenue [2014] NSWCA 378 Leichhardt Council v Roads and Traffic Authority (NSW) (2006) 149 LGERA 439; [2006] NSWCA 353 Lenz Nominees Pty Ltd v Commissioner of Main Roads (2012) 186 LGERA 58; [2012] WASC 6 Maloney v Roads and Maritime Services (2018) 98 NSWLR 651; [2018] NSWCA 252 Marshall v Director-General, Department of Transport (2001) 205 CLR 603; [2001] HCA 37 Merlino v Roads and Maritime Services (2018) 98 NSWLR 625; [2018] NSWCA 251 Mir Bros Unit Constructions Pty Ltd v Roads and Traffic Authority of NSW [2006] NSWCA 314 Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17; [1985] HCA 14 Roads and Maritime Services v United Petroleum Pty Ltd (2019) 99 NSWLR 279; [2019] NSWCA 41 Roads and Traffic Authority (NSW) v Collex Pty Ltd (2009) 165 LGERA 419; [2009] NSWCA 101 Roads and Traffic Authority (NSW) v Damjanovic (2006) 146 LGERA 403; [2006] NSWCA 166 Roads and Traffic Authority (NSW) v McDonald (2010) 175 LGERA 276; [2010] NSWCA 236 Roads and Traffic Authority (NSW) v Muir Properties Pty Ltd (2005) 143 LGERA 192; [2005] NSWCA 460 Spencer v Commonwealth (1907) 5 CLR 418 Sydney Water Corporation v Caruso (2009) 170 LGERA 298; [2009] NSWCA 391 Sydney Water Corporation v Marrickville Council [2014] NSWCA 438 Tolson v Roads and Maritime Services (2014) 201 LGERA 367; [2014] NSWCA 161 Walker Corporation Pty Ltd v Sydney Harbour Foreshore Authority (2008) 233 CLR 259; [2008] HCA 5 Walsh v Lonsdale (1882) 21 Ch D 9 Texts Cited: Brendan Edgeworth, Butt's Land Law (7th ed 2017, Thomson Reuters) Category: Principal judgment Parties: Transport for NSW (Appellant and cross-respondent) Eureka Operations Pty Ltd (Respondent and cross-appellant) Representation: Counsel: Mr N Hutley SC with Mr M Astill (Appellant and cross-respondent) Mr I Hemmings SC with Mr M Seymour (Respondent and cross-appellant)