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2014-04-28 Late Report RF Thompson Compensation Claim
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GENERAL COMMITTEE MEETING - LATE REPORT 28 APRIL 2014
17. RF THOMPSON (QLD) PTY LTD V NOOSA SHIRE COUNCIL - COMPENSATION CLAIM
Author Chief Executive Officer, Brett de Chastel
Executive Office
Index ECM/ Subject/ Governance & Administration - CEO
Attachments Nil.
EXECUTIVE SUMMARY
Not Applicable.
RECOMMENDATION
That Council note the late report by the Chief Executive Officer to the General Committee
Meeting dated 28 April 2014 regarding the successful Planning and Environment Court outcome
of the compensation claim in relation to RF Thompson (Qld) Pty Ltd v Noosa Shire Council.
REPORT
The purpose of this report is to advise the Council of a successful judgement in relation to the
longstanding town planning compensation claim by RF Thompson (Qld) Pty Ltd bought against
the Noosa Shire Council. Judge Robin delivered his judgement on Thursday 24 April 2014. The
judge dismissed the claim for compensation and found in Council’s favour. The 222 page
judgement is quite complex but the history and significance of the case is set out below.
1. History
• Following the adoption of the 1997 Strategic Plan, a number of landowners took court
action against the Council claiming “injurious affection” ie that the value of their property
had been affected by the changes to the Planning Scheme;
• By 2001, the total value of those multiple claims against amounted to $94M. The Council
disclosed each year the balance of any outstanding claims in its audited financial
statements as a contingent liability;
• The RF Thompson (Qld) Pty Ltd v Noosa Shire Council claim was the largest of those
claims and is last one to be finalised;
• The claim by RF Thompson (Qld) Pty Ltd was lodged in 2000 and was originally for
$34.629M but subsequently increased to $52.904M. The compensation claim related to
the land currently known as Settlers Cove;
• For many years, the former Noosa Council had fought the various town planning
compensation claims and had significant success through the courts. By the time of the
amalgamation, the RF Thompson (Qld) Pty Ltd claim was the last outstanding claim;
• The RF Thompson (Qld) Pty Ltd case has effectively been running for 14 years making it
one of the longest running and most significant (in dollar terms) cases the Noosa Council
has ever had; and
• During the amalgamation years, the Sunshine Coast Regional Council continued to support
the former Noosa Council’s position and applied significant resources and support to this
case.
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Section 2
GENERAL COMMITTEE MEETING - LATE REPORT 28 APRIL 2014
2. The Judgement
• Judge Robin delivered a 222 page judgement on 24 April 2014. The formal hearing of the
case took place over almost 8 weeks during August, September and October 2013 and
February 2014;
• The Judge found that the applicant for compensation did not establish that its interest in the
land was “injuriously affected” by the changes in the 1997 Strategic Plan;
• These findings have been extensively documented both on the factual evidence (the Court
generally accepted the factual evidence of Council’s experts) and on legal points where the
judge also found in Council’s favou;
• As a matter of curiosity, as this case lasted so long, the Judge had to return from retirement
to deliver his final judgement;
• It is up to RF Thompson (Qld) Pty Ltd as to whether they wish to appeal against this
judgement. An appeal can only be made on the grounds of an error in law; and
• This case was being followed by many other local governments as it will add to the body of
case law about the impacts on Councils when Planning Schemes are changed.
This is a good result for Noosa Council. Subject to any further appeals in this case, it brings to a
successful end any financial uncertainty from outstanding compensation claims.
Acknowledgement should also be provided to Wakefield Sykes, Council’s Solicitor on this case.
Although supported by a team of expert witnesses and barristers, Mr Sykes has marshalled this
highly complex case with specialist skill over a number of years.
Previous Council Consideration
Nil.
Finance & Risk
The successful outcome of this appeal removes a major financial risk for the Council. Obviously,
the applicant may choose to appeal the result which could involve further legal expenses.
Given the long history of the case and the fact that expenditure was incurred prior to the 2008
amalgamation as well as by the Sunshine Coast Regional Council during the amalgamation
years, it is not possible to identify the exact cost of running this case at this stage.
Consultation
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
Nil.
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Section 3
GENERAL COMMITTEE MEETING - LATE REPORT 28 APRIL 2014
Departments/Sections Consulted:
Community Services Planning & Infrastructure
Disaster Management & Public Order Building & Plumbing Services
Waste & Environmental Health DA Planning
Community Facilities Strategic Land Use Planning
Cultural Facilities Asset Design & Investigations
Asset Planning
Civil Operations
Environment
X Executive Office Corporate Services
Community Engagement Finance
Customer Service ICT
Executive Support Procurement & Fleet
Governance Property & Facilities
Human Resources Revenue Services
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