Sydney Metro v C & P Automotive Engineers Pty Ltd [2024] NSWCA 186

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Sydney Metro v C & P Automotive Engineers Pty Ltd [2024] NSWCA 186 Hearing dates: 23 April 2024 Date of orders: 31 July 2024 Decision date: 31 July 2024 Before: Meagher JA at [1]; Payne JA at [2]; Kirk JA at [154] Decision: 1. Appeal allowed. 2. Order (1) made in LEC proceeding no 2022/40567 on 15 September 2023 be set aside. 3. In lieu of order (1) referred to above the following order be made in LEC proceeding no 2022/40567: Compensation to C & P Automotive Engineers Pty Ltd pursuant to Part 3 Division 4 of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) for the compulsory acquisition of its leasehold interest in Lot 23 in DP 733500 and disturbance losses is determined in the sum of $416,182.99 (plus statutory interest), that amount comprising: (1) $231,000 for market value under s 55(a); (2) $185,182.99 for disturbance losses under s 55(d) comprising: (a) $145,600 (GST exclusive) for relocation costs involving relocating to temporary sites under s 59(1)(c); (b) $39,582.99 (GST exclusive) for legal costs under s 59(1)(a). 4. Respondent pay the appellant's costs of the appeal. Catchwords: LAND LAW — Compulsory acquisition of land — Compensation — Loss attributable to disturbance — costs incurred in connection with relocation — meaning of "relocation" — where lessee seeks costs of constructing landlord's fixtures for use in lessee's business — fit out costs — whether fit out costs encompass replacement of landlord's fixtures LAND LAW — Compulsory acquisition of land — Compensation — market value — relationship between loss attributable to disturbance and market value of interest in land LAND LAW — Compulsory acquisition of land — compensation — Loss attributable to disturbance — costs incurred in connection with relocation — difference between rent at acquired premises and at the relocation premises — profit rental assessed for market value — whether compensation available as disturbance for difference in market rents Legislation Cited: Land Acquisition (Just Terms Compensation) Act 1991 (NSW) ss 3, 4, 11, 12, 19, 20, 22, 34, 37, 54, 55, 56, 57, 58, 59, 60 Land and Environment Court Act 1979 (NSW) s 57 Cases Cited: Brown Bros (Marine) Holdings Pty Ltd v NSW Land and Housing Corporation (1991) 72 LGRA 50 Commissioner of Highways v Shipp Bros Pty Ltd (1978) 19 SASR 215 Commissioner of State Revenue v Placer Dome Inc (2018) 265 CLR 585; [2018] HCA 59 Director of Buildings and Lands v Shun Fung Ironworks Ltd [1995] 2 AC 111; [1995] 1 All ER 846 El Boustani v The Minster administering the Environmental Planning and Assessment Act 1979 [2014] NSWCA 33 Federal Commissioner of Taxation v Resource Capital Fund III LP (2014) 225 FCR 290; [2014] FCAFC 37 George D Angus v Health Administration Corporation (2013) 205 LGERA 357; [2013] NSWLEC 212 Home Care Services (NSW) v Albury City Council (2003) 136 LGERA 117; [2003] NSWLEC 433 Hua v Hurstville City Council [2010] NSWLEC 61 Konduru v Roads and Maritime Services (2017) 224 LGERA 262; [2017] NSWLEC 36 Leichhardt Council v Roads and Traffic Authority (NSW) (2006) 149 LGERA 439; [2006] NSWCA 353 Mathew Massasso t/as Five Dock Pharmacy v Sydney Metro [2023] NSWLEC 115 McDonald v Roads & Traffic Authority of NSW [2009] NSWLEC 105 Melino v Roads and Maritime Services (2018) 98 NSWLR 625; [2018] NSWCA 251 Minister for Army v Parbury Henty & Co (1945) 70 CLR 459 Moloney v Roads and Maritime Services (2018) 98 NSWLR 651; [2018] NSWCA 252 National Australia Bank Ltd v Blacker (2000) 104 FCR 288; [2000] FCA 1458 Nelungaloo v Commonwealth (1947) 75 CLR 495 Olde English Tiles Australia Pty Ltd v Transport for New South Wales (2022) 108 NSWLR 503; [2022] NSWCA 108 Peter Croke Holdings Pty Ltd v Roads and Traffic Authority of NSW (1998) 101 LGERA 30 R v Khazaal (2012) 246 CLR 601; [2012] HCA 26 Richardson v Roads and Traffic Authority of New South Wales (1996) 90 LGERA 294 Road and Maritime Services (NSW) v United Petroleum Pty Ltd (2019) 99 NSWLR 279; [2019] NSWCA 41 Roads & Traffic Authority (NSW) v McDonald (2010) 79 NSWLR 155; [2010] NSWCA 236 Roads and Maritime Services v Allandale Blue Metal Pty Ltd [2015] NSWCA 167 Roads and Traffic Authority v Peak [2007] NSWCA 66 Rocco Fraietta v Roads and Maritime Services [2017] NSWLEC 11 Speter v Roads and Maritime Services [2016] NSWLEC 128 TEC Desert Pty Ltd v Commissioner of State Revenue (Western Australia) (2010) 241 CLR 576; [2010] HCA 49 The Trustee for Whitcurt Unit Trust v Transport for NSW [2021] NSWLEC 82 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 Texts Cited: C Harpum, S Bridge and M Dixon, Megarry & Wade, The Law of Real Property (7th ed, 2008, Sweet & Maxwell) Category: Principal judgment Parties: Sydney Metro (appellant) C & P Automotive Engineers Pty Ltd (respondent) Representation: Counsel: G Sirtes SC; M Astill (appellant) R Lancaster SC; T Poisel (respondent)