Valuer-General v P & N Group Holdings Pty Ltd [2010] NSWLEC 209

Land and Environment Court of New South Wales

CITATION : Valuer-General v P & N Group Holdings Pty Ltd [2010] NSWLEC 209

APPLICANT Valuer-General PARTIES : RESPONDENT P & N Group Holdings Pty Ltd

FILE NUMBER(S) : 30493 of 2010

CORAM: Craig J

KEY ISSUES: APPEAL :- s 56A appeal - determination of land value under Valuation of Land Act, 1916 - failure to consider and include value of land improvements in the land value determined - issue raised but not considered by Commissioner - error of law in determining land value - respondent consented to appeal being allowed - land value substituted by consent

LEGISLATION CITED: Land and Environment Court Act 1979, s 56A Valuation of Land Act 1916, ss 4, 6A, 37

DATES OF HEARING: 14 September 2010

EX TEMPORE JUDGMENT DATE : 14 September 2010

APPLICANT G B Newport (barrister) SOLICITORS Crown Solicitor's Office LEGAL REPRESENTATIVES:

RESPONDENT M D Seymour (barrister) SOLICITORS Quay Legal Group

JUDGMENT: THE LAND AND ENVIRONMENT COURT OF NEW SOUTH WALES

CRAIG J

14 September 2010

30493 of 2010 VALUER-GENERAL v P & N GROUP HOLDINGS PTY LTD

EX TEMPORE JUDGMENT 1 HIS HONOUR: On 28 May 2010, a Commissioner of this Court determined the land value of land known as 36-38 Victoria Street, Burwood to be the sum of $1,530,000. That determination was made when deciding an appeal brought to the Court pursuant to s 37 of the Valuation of Land Act 1916. It was an appeal against the determination by the Valuer-General of the land value of that land. 2 The Valuer-General now appeals pursuant to s 56A of the Land and Environment Court Act 1979, asserting that the decision of the Commissioner is attended by legal error. The error which is alleged is singular. It is that when determining land value in accordance with s 6A of the Valuation of Land Act, the Commissioner failed to allow for the value of "land improvements" as he was required to do in accordance with that section. 3 The respondent to this appeal, being the applicant before the Commissioner, accepts that in making the determination which he did, the Commissioner erred in law in the manner suggested by the Valuer-General. I have read the Commissioner's judgment and I am satisfied that there was such an error. 4 The error arose in this way. The Commissioner sought to determine land value by analysing comparable sales. The sales upon which he relied were of improved land. Those improvements included buildings with basement car parking. The improvements upon the subject land comprised a building containing basement car parking. 5 When analysing those sales, the value of improvements, including those which made provision for basement car parking, was deducted and the deduced value applied in order to determine the land value of the subject land. However, the Commissioner failed to account for the fact that the excavation to provide for basement car parking on the subject land was itself "land improvement". That expression is defined in s 4 of the Valuation of Land Act to mean, amongst other things, an excavation of land that is associated with the erection of any building or structure. Thus, the value (if any) of the excavation to the land being valued was required to be added to the "raw" value deduced from the analysis of comparable sales (s 6A(1)). 6 In his judgment, the Commissioner acknowledged at [16] that the parties were at issue as to whether the excavation on the subject land comprised an improvement to be ignored or was a "land improvement", the value of which was required to be considered as a component of land value. Having identified the issue between the parties, he failed in his reasons to address it. Moreover, the reasons for judgment do not address the distinction between the improvements on the subject land necessary to be ignored when analysing comparable sales of improved land and the value of land improvements required to be taken into account. 7 There was no issue between the parties before the Commissioner as to the value assigned by the Valuer-General to land improvements. Failure on the part of the Commissioner to apply the statutory provision (s 6A(1)) to facts that were not in contest demonstrates an error of law in the determination which the Commissioner made.