Port Stephens Shire Council & Anor v Tellamist P/L [2004] NSWCA 353

Reported Decision : 135 LGERA 98

New South Wales Court of Appeal

CITATION : Port Stephens Shire Council & Anor v Tellamist P/L [2004] NSWCA 353 HEARING DATE(S) : 18, 19 February 2004 JUDGMENT DATE : 27 September 2004

JUDGMENT OF : Giles JA at 1; Santow JA at 2; Ipp JA at 332 DECISION : Appeal allowed and cross-appeal dismissed.

CATCHWORDS : TORTS - trespass to land - trespass by defendant Local Council as adjoining landowner - destruction of trees on land owned by plaintiff in consequence of the trespass - liability not in issue - DAMAGES - assessment of compensatory damages - whether compensable loss suffered - adequacy of damages - valuation - whether basis for valuation of loss appropriate - whether diminution in value of plaintiff's undeveloped land - knowledge to be attributed to hypothetical purchaser in valuing land - whether exemplary damages appropriate - whether corporate defendant in conscious and contumelious disregard of the plaintiff's rights - whether exemplary damages inadequate - PRACTICE AND PROCEDURE - whether interest on compensatory damages should be awarded for the whole period from when the cause of action arose until judgment Environmental Planning & Assessment Act 1979 (NSW) s94 LEGISLATION CITED : Local Government Act 1919 s340D(1) Local Government Act 1993 s7; s8(1); s220 Supreme Court Act 1970 s94(1) Allen Commercial Constructions Pty Ltd v North Sydney Municipal Council (1970) 123 CLR 490 Amalgamated Television Services Pty Ltd v Marsden (No. 2) (2003) 57 NSWLR 338 Beach Petroleum NL v Johnson (1993) 43 FCR 1 Bennett v Jones [1977] 2 NSWLR 355 (CA) Boland v Yates Property Corp Pty Ltd (1999) 167 ALR 575 Brambles Holdings Ltd v Carey (1976) 15 SASR 279 Carr v Sourlos (1994) 6 BPR 13,626 Cassell & Broome Co Ltd v Broome [1972] AC 1027 Clifford and Anor v Wyong Shire Council (1996) 89 LGERA 240 Closer Settlement Ltd v The Minister (1942) 17 LGR (NSW) 62 C.R. Taylor (Wholesale) Ltd v Hepworths Ltd [1977] 1 WLR 659 Commissioner of Land Tax v Nathan (1913) 16 CLR 654 Commissioner of State Revenue v Pioneer Concrete (Vic) Pty Ltd (2002) 192 ALR 56 Crimmins v Stevedoring Industry Finance Committee (1999) 200 CLR 1 Davies v Powell Duffryn Associated Collieries Ltd [1942] AC 601 Evans v Balog [1976] 1 NSWLR 36 Farmer Giles Ltd v Wessex Water Authority [1990] 1 EGLR 177 (CA) Falkner v Bourke (1990) 19 NSWLR 574 (CA) Fire & All Risks Insurance Co Ltd v Rousianos (1989) 19 NSWLR 57 Fox v Percy (2003) 214 CLR 118 Gates v City Mutual Life Assurance Society Ltd (1986) 160 CLR 1 Gazzard v Hutchinson (1995) AustTortsRep 81-337 Gosford Shire Council v Green (1980) 26 The Valuer 425 Gray v Motor Accident Commission (1998) 196 CLR 1 Hollebone v Midhurst and Fernhurst Builders Ltd [1968] 1 Lloyd's Rep. 38 Holt v Cox (1994) 15 ACSR 313 House v The King (1936) 55 CLR 499 Housing Commission of NSW v Falconer [1981] 1 NSWLR 547 Jamal v Moolla Dawood, Sons & Co [1916] AC 175 Jegon v Vivian (1871) LR 6 Ch. 742 Johnson v Perez (1988) 166 CLR 351 Jones v Gooday (1841) 8 M & W 146 Keddell v Regarose Pty Ltd [1995] 1 Qd R. 172 Kenny & Good Pty Limited v MGICA (1992) Ltd (1999) 199 CLR 413 Krakowski v Eurolynx Properties Pty Limited (1995) 183 CLR 563 Lamb v Cotogno (1987) 164 CLR 1 League against Cruel Sports Ltd v Scott [1986] QB 240 Linter Group Ltd v Goldberg (1992) 7 ACSR 580 Livingstone v Rawyards Coal Co (1880) 5 App.Cas. 25 Lonie v Perugini & Perugini [1977] 77 ATC 4,318 CASES CITED : Lovell v Lovell (1950) 81 CLR 513 McCathie v Federal Commissioner of Taxation (1944) 69 CLR 1 Makita (Australia) Pty Ltd v Sprowles (2001) 52 NSWLR 705 Malec v J C Hutton Pty Limited (1990) 169 CLR 638 Marks v GIO Australia Holdings Ltd (1998) 196 CLR 494 Micallef v ICI Australia Operations Ltd [2001] NSWCA 274 Miller v Jennings (1954) 92 CLR 190 Minister for Public Works v Thistlethwayte (1954) AC 475 Ministry for Defence v Ashman (1993) 25 HLR 513 Minter v Eacott (1952) 69 WN(NSW) 93 Murray v Commonwealth (1986) 5 NSWLR 83 Noroton Holdings Pty Limited v Friends of Katoomba Falls Creek Valley Incorporated (NSWCA, 18 October, 1996, unreported) Palmer Bruyn & Parker Pty Ltd v Parsons (2001) 185 ALR 280 Parramatta City Council v Lutz [1988] 12 NSWLR 293 Pastoral Finance Association Ltd v The Minister (1914) AC 1083 (PC) Perri v Flavell (No 2) (NSWCA Kirby P and Powell JA, 20 September 1995, unreported) Permanent Trustee Australia Co Ltd v FAI General Insurance Co Ltd (2001) 50 NSWLR 679 Public Transport Commission of NSW v Perry (1977) 14 ALR 273 Public Trustee v Hermann (1968) 88 WN(Pt.1) NSW 442 Re United Merthyr Collieries Co (1872) LR 15 Eq 46 Rentokil Pty Ltd v Channon (1990) 19 NSWLR 417 Roberts v Rodney District Council [2001] 2 NZLR 402 Rogers v Nationwide News Pty Ltd (2003) 77 ALJR 1739 Ruby v Marsh (1975) 132 CLR 642 Scott v Shepherd (1773) 96 ER 525 Scutt v Lomax [2000] EWJ 350 Selangor United Rubber Estates Ltd v Cradock (No 3) [1968] 1 WLR 1555 Smiths Newspapers Ltd v Becker (1932) 47 CLR 279 Spencer v the Commonwealth (1907) 5 CLR 418 State of South Australia v Johnson (1982) 42 ALR 161 State of New South Wales v Riley (2003) 57 NSWLR 496 Swordheath Properties Ltd v Tabet [1979] 1 WLR 285 TCN Channel Nine Pty Ltd v Anning (2002) 54 NSWLR 333 Tesco Supermarkets Ltd v Nattrass [1972] AC 153 The Queen v Brown (1867) LR 2 QB 630 Turner v The Minister for Public Instruction (1956) 95 CLR 245 XL Petroleum (NSW) Pty Ltd v Caltex Oil (Aust) Pty Ltd (1985) 155 CLR 448 Wasson v California Standard Co (1964) 47 DLR (2d) 71 Whitfeld v De Lauret and Company Limited (1920) 29 CLR 71 Willis v the Commonwealth (1946) 73 CLR 105 Woolcock Street Investments Pty Ltd v CDG Pty Ltd (2004) 78 ALJR 628 Wormald v Cole [1954] 1 QB 614 PORT STEPHENS SHIRE COUNCIL (First Appellant) PARTIES : DARACON ENGINEERING PTY LIMITED (Second Appellant) TELLAMIST PTY LIMITED (Respondent) FILE NUMBER(S) : CA 40395/03 COUNSEL : G INATEY, SC/ A A HENSKENS (Appellants) R J ELLICOTT, QC/ J S DRUMMOND (Respondent) SOLICITORS : Cantle Carmichael (Appellants) Hartmann & Associates (Respondent)