[2024] VSCA 166
General information, not legal advice.
Court of Appeal (Vic)
2024-07-19
Emerton P, Kaye JA
Original judgment source is linked above.
Anderson v Sharpe (No 2) [2024] VSC 279 (Gorton J)
RESIDENTIAL TENANCY - Appeal to trial division against orders of Victorian Civil and Administrative Tribunal decisions for possession of residential premises - Orders based on non-payment of rent and on intention that premises be occupied by rental provider's disabled daughter - Appeal from decision of trial judge dismissing applications for leave to appeal against decisions of VCAT - Whether judge erred in not concluding that VCAT had erred in determining respondent's claims for possession before hearing and determining applicant's claims for repair of premises and compensation - Whether breach of provisions of Victorian Civil and Administrative Tribunal Act 1998 and Charter of Human Rights and Responsibilities Act 2006 - Whether judge erred by not allowing time for response to notice under s 35 of Charter.
Young v Chief Executive Officer (Housing) (2023) 97 ALJR 840; [2023] HCA 31; Osland v Secretary, Department of Justice (2010) 241 CLR 320; [2010] HCA 24, considered.
(a) The rent arrears arose solely because of the applicant's unilateral decision to stop paying rent.[12]
(b) The non-payment of the rent was not trivial. The practical effect of the applicant's actions was that the respondent had not received any rent for a period of in excess of 12 months.[13]
(c) No person (other than the applicant) was responsible for the failure of the applicant to pay rent.[14]
(d) There was no evidence that issues related to family violence had any impact on the applicant's ability to pay rent.[15]
(e) There was no evidence that the applicant had made any attempt to remedy the breach (the non-payment of the rent).[16]
(f) The applicant conceded that she did not have the money that should have been paid by way of rent from 20 January 2023.[17] The member could not be satisfied that the applicant had, or would soon have, the capacity to remedy her breach.[18]
(g) There was no evidence that there was any other renter of the premises than the applicant.[19]
(h) The applicant did not provide any evidence as to the current source and amount of her income or as to what her future income would be. She did not provide any evidence that would support a finding that there was a reasonable alternative order or course of action that could be taken other than making a possession order.[20]
(i) In respect of the conduct of the respondent and his agent, the Deputy President considered in some detail the issue of the steps taken by the respondent to effect the repairs requested by the applicant. The Member determined that, having requested the respondent to undertaken repairs, the applicant had then placed obstacles in the path of the respondent's ability to do so. If the applicant was of the view that the respondent did not comply with his obligations to carry out the repairs, the applicant could have followed the processes prescribed by the Act in that respect.[21] The Member concluded that the actions by the applicant in ceasing to pay rent were 'totally unreasonable'.[22]
Question of law 1) Is VCAT's decision fair and reasonable when the findings are not supported, or a directly contradicted, by the evidence presented to the hearing?
Question of law 2) Do the orders meet the reasonable and proportionate test prescribed by s330 and s330A of the RTA?
Question of law 3) Did VCAT exercise its powers in accordance with its obligations under the VCAT Act - specifically s97, s98, and s102 - in its conduct of the proceedings and making of the orders?
Question of law 4) Did VCAT meet its obligations, and consider the rights of the appellant, under the Charter of Human Rights and Responsibilities Act 2006 - specifically s8, s13, s15, s18, s20, s24 - in its conduct of the proceeding and making of the orders?
I do not consider that the Tribunal has erred in law by listing and determining Mr Sharpe's applications for possession before it has determined her application for compensation or by not determining both at the same time. The Tribunal is entitled to schedule matters for hearing in the manner it thinks appropriate. Deputy President Warren explained, at the end of his reasons, that the Tribunal has a significant backlog of claims for compensation and gives priority to claims for possession. There is nothing unlawful in this. There is no breach of the rules of natural justice, and there is no basis to conclude that there is some conspiracy, if indeed that is what Ms Anderson is contending, between the Tribunal and Mr Sharpe to do her harm.[44]
Once Deputy President Warren took the view, correctly, that Ms Anderson remained under a legal obligation to pay rent, he was also entitled to take the view that the rights and the wrongs of, and facts underlying, Ms Anderson's compensation claim were for determination in that claim and did not have finally to be determined by him in this possession application. He was concerned with whether rent was owing, whether the notice of vacate was valid and, if so, whether to make an order for possession. It was sufficient and appropriate for him, when making the value judgments required, to take into account the existence of this dispute and Ms Anderson's contentions. This he did.[45]
(1) A party to a proceeding may appeal on a question of law from an order of the Tribunal in the proceeding -
(a) if the Tribunal was constituted for the purpose of making the order by the President or a Vice President, whether with or without others, to the Court of Appeal with leave of the Court of Appeal; or
Note
See sections 14A to 14D of the Supreme Court Act 1986.
(b) in any other case, to the Trial Division of the Supreme Court with leave of the Trial Division.
The limited nature of appeals under s 148 has subsequently been further emphasised by the High Court. Section 148 does not confer a general right of appeal on the merits of a case. If no threshold question of law can be identified, the case is not suitable for the type of restricted appeal that s 148 provides.
The 'question of law' requirement in s 148 confers a limited capacity on the Court to review findings of fact made by a Tribunal member. The requirement in s 148 to state a question of law is germane to the capacity of the Court to review findings of fact made by a Tribunal member. The identification of a question of law is not merely a precondition to the exercise of a right to appeal, but the subject matter of the appeal itself. It is not sufficient for the parties to identify a point of law between them on appeal that was not raised before the Tribunal.[56]
It will be seen that proposed ground 3 (to which in part proposed ground 4 relates) is expressed by reference to the weight of the evidence and in particular alleges that Kaye J 'gave insufficient weight to' various matters. This is not a proper form of ground on an appeal on questions of law. The basic problem facing the applicants is that they have lost at each stage of the proceeding upon the facts. The primary question raised before Kaye J was whether it was open to the Tribunal to conclude as it did on the evidence. If it was so open then the Tribunal did not commit an error of law in reaching the conclusion that it did, albeit that it may (or may not) have erred on the facts. The appeal was not concerned with the weight of the evidence insofar as that bore upon the assessment of the relative weight of competing considerations. It was concerned with the question of whether the Tribunal's conclusion was properly open to it.
The Court of Appeal, in the exercise of its jurisdiction under s 148 of the VCAT Act, may make substitutive orders where only one conclusion is open on the correct application of the law to the facts found by the Tribunal. Such a case arises when no other conclusion could reasonably be entertained. In that event, the Court can make the order that the Tribunal should have made. The language of s 148(7) is also wide enough to allow the Court of Appeal to make substitutive orders in other circumstances. But its powers must, as with the equivalent powers of the Federal Court in relation to the AAT, be exercised having regard to the limited nature of the appeal. Absent such restraint, a question of law would open the door to an appeal by way of rehearing. Where there is a factual matter that has to be determined as a consequence of the appeal, it may be that it is able conveniently to be determined by the Court of Appeal upon uncontested evidence or primary facts already found by the Tribunal. When the outstanding issue involves the formation of an opinion which is, as in this case, based upon considerations of public interest, then it should in the ordinary case be remitted to the body established for the purpose of making that essentially factual, evaluative and ministerial judgment.
(1) Whether in fact the applicant was in arrears in payment of the rent due to the respondent.
(2) The validity of the notice to vacate served by the respondent on the applicant on 22 February 2023.
(3) Whether, by reference to the considerations specified in s 330A of the Act, it was reasonable and proportionate to make a possession order, taking into account the interests of, and the impact on, the applicant and the respondent in making such an order (s 330(1)(f)).
(1) Whether the notice to vacate, given by the respondent to the applicant, was valid - that is, whether the respondent genuinely required the premises for the purpose that they be occupied by his daughter, who was wholly or substantially dependent on him.
(2) Whether, in such a case, by reference to the considerations specified in s 330A the Act, it was reasonable and proportionate to make an order for possession, taking into account the interests of the parties and the impacts of the order on both the applicant and the respondent.
However, for the purposes of determining whether it is reasonable and proportionate to make a possession order, I consider the fact that having requested Mr Sharpe to undertake repairs that Ms Anderson then placed obstacles in the path of his ability to conduct such repairs. If Ms Anderson was of the view that Mr Sharpe was not complying with his obligations under the Act to carry out repairs, then she could have followed the processes set out in the Act to address her concerns. Ceasing to pay rent is not an option that the law allows a renter in her position to unilaterally adopt.
Whilst it may be open to a Tribunal after having heard all of the evidence to find that Mr Sharpe did not comply with his obligations to carry out repairs within a reasonable timeframe, I find that the actions by Ms Anderson in simply ceasing to pay any rent to have been totally unreasonable. This finding supports the making of a possession order.[73]
Further, the evidence presented in this case does not support claims by the Renter that the Rental Provider, and the agents, are trying to avoid their obligation to carry out repairs at the rented premises. The material provided shows a lengthy dispute about what repairs are needed, miscommunication and dispute over times for access by trades and the Renter placing conditions on that access. The evidence supports a finding that there were delays by the Renter in making any application to the Tribunal for repair orders, that the Rental Provider encouraged such an application to be made to resolve the issue of access and when orders were made by consent for repairs to be carried out, it was the Rental Provider who sought to renew the proceeding to resolve yet another dispute over access.[75]
For the reasons provided, I do not accept that the conduct of the rental provider or agents, when considered in the context of the history of numerous disputes relating to the rental agreement, is such as to support a conclusion that it is not reasonable and proportionate to make a possession order.[77]
Notice to Attorney-General and Commission
(1) A party to a proceeding must give notice in the prescribed form to the Attorney-General and the Commission if -
(a) in the case of a Supreme Court or County Court proceeding, a question of law arises that relates to the application of this Charter or a question arises with respect to the interpretation of a statutory provision in accordance with this Charter; or
(b) in any case, a question is referred to the Supreme Court under section 33.
(2) For the purpose of subsection (1), a notice is not required to be given to -
(a) the Attorney-General if the State is a party to the relevant proceeding; or
(b) the Commission if the Commission is a party to the relevant proceeding.
[1] Anderson v Sharpe (No 2) [2024] VSC 279 ('Reasons').
[2] Sharpe v Anderson (Residential Tenancies) [2023] VCAT 514.
[3] Anderson v Sharpe [2023] VSC 559.
[4] Sharpe v Anderson (Residential Tenancies) [2024] VCAT 375 ('The First Tribunal Decision').
[27] Sharpe v Anderson [2024] VCAT 381 ('The Second Tribunal Decision').
[40] Anderson v Sharpe [2023] VSC 559, [50], [55].
[54] Osland v Secretary, Department of Justice [2010] HCA 24; (2010) 241 CLR 320, 332 [19] (French CJ, Gummow and Bell JJ); [2010] HCA 24 ('Osland'); Myers v Medical Practitioners Board [2007] VSCA 163; (2007) 18 VR 48, 57 [33] (Warren CJ); [2007] VSCA 163 ('Myers'); Sandbach v Victorian Legal Services Commissioner [2024] VSCA 143, [54] (Niall, Lyons JJA and J Forrest AJA) ('Sandbach').
[56] Ibid [43]-[44] (citations omitted).
[57] Osland, 332-3 [20] (French CJ, Gummow and Bell JJ); Myers, 57 [35] (Warren CJ); Victorian Legal Services Commissioner v McDonald [2019] VSCA 18; (2019) 57 VR 186, 233-4 (Tate, Kaye and Emerton JJA); [2019] VSCA 18; Sandbach, [56] (Niall, Lyons JJA and J Forrest AJA).
[58] [2013] VSCA 305; (2013) 42 VR 176, 186 [21] (Osborn and Beach JJA); [2013] VSCA 305.
[59] Osland, 332-3 [20] (French CJ, Gummow and Bell JJ).
[60] (2023) 97 ALJR 840; [2023] HCA 31 ('Young').
[61] In so holding, we recognise that the applicant claims to have been denied the opportunity to cross-examine expert witnesses in the second Tribunal proceeding. Witnesses were apparently not in attendance at the hearing. There is no ground of appeal alleging that Gorton J ought to have found that the applicant was denied procedural fairness by the Tribunal in the second Tribunal proceeding because of the unavailability of witnesses. Nor were we taken to any material supporting such a complaint. It is evident that, given the very large and unwieldy number of grounds of appeal in both Tribunal proceedings, Gorton J dealt with many of them collectively. In the circumstances this was quite appropriate.
[62] First Tribunal Decision, [250]-[253].
[63] Young, 844 [12] (Kiefel CJ, Gageler and Gleeson JJ), 851 [56], 855-6 [75]-[77] (Gordon and Edelman JJ).
[64] First Tribunal Decision, [75]-[81].
[66] Cf Karakatsanis v Racing Victoria Limited [2013] VSCA 305; (2013) 42 VR 176, 184-187 [19]-[25] (Osborn JA); [2013] VSCA 305.
[74] Second Tribunal Decision, [190].
Anderson
Sharpe [2024] VSCA 166
(2023) 97 ALJR 840
(2010) 241 CLR 320
(2007) 18 VR 48
(2019) 57 VR 186
(2013) 42 VR 176