Michelle McMahon wins landmark case on compensation rights for residential park residents in NSW

After almost four years and eight separate proceedings, the NSW Civil and Administrative Tribunal (NCAT) awarded sums of $260,000 and $240,000 for two women who were being evicted from their residential park due to a redevelopment of the land. In the initial proceedings, NCAT determined their compensation to be $85,000 & $62,000 respectively.

A significant issue in dispute involved the statutory construction of the compensatory regime and the elements to be included for valuation, which took the matter to the Supreme Court and the Court of Appeal. Whilst this issue was being resolved, the relevant legislation was amended to broaden and clarify the compensation scheme. The Residents went back to NCAT and successfully argued that they fell within the transitional arrangements for the new law. This set the scene for a test case on how the new provisions would apply in practice.

In the final proceedings NCAT agreed that compensation should be based on a valuation of the residents dwelling under the "Point Gourde" principle being that the dwellings were to be valued as if the park were to continue in operation, was in reasonable condition and had reasonable amenities.

Michelle McMahon appeared for the residents.