The court also determined the government had not engaged in “good faith” discussions with Crown and Lendlease, a required performance of their agreement whether or not sight lines changed.
The government had proceeded in its discussions to raise heights at Barangaroo Central without involving both Crown and Lendlease, Judge McDougall said.
“The negotiations were required to commence from the position that Crown and Lendlease’s sight lines were to be retained. Whether they actually are retained is a matter that will be determined in those good faith discussions and negotiations,” he said.
“As the authority accepted that it did not negotiate from this starting position the authority breached its obligations under various agreements.”
The court has not yet made the orders as a result of the decision. Another court session will be held on Monday.