Written by The recent case of Sydney Metro v G&J Drivas Pty Ltd [2024] NSWCA 5 saw the Court directly address compensation entitlements for land acquisitions pursuant to the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) (Land Acquisition Act). The NSW Court of Appeal largely limited the circumstances of compensation entitlement for the purchase of a replacement property. The Court further clarified the relationship between market value and acquisition of land.
Facts of the Case
The respondents (G&J Drivas Pty Ltd) ceased work on developing land in Paramatta after confirming Sydney Metro would be acquiring their land. Dispute arose as to compensation amount entitlement. The two main issues apparent in the case include:
- Investor compensation entitlement to purchase a replacement investment property
- Scope of statutory disregard
Throughout land acquisition, stamp duty compensation and mortgage costs are not applicable to investors due to there not being a direct ‘displacement’, that is, the owners are not in occupation of the property. Alternatively, investors and developers tend to claim these costs under s59(1)(f) of the Land Acquisitions Act. However, Sydney Metro v G&J Drivas saw the Court eliminate the ability for investors to claim these costs under s59(1)(f). In relation to statutory disregard, the Court assessed whether changes in market value are caused by public purpose and should thus be disregarded. The Court ultimately narrowed the scope of statutory disregard.