Friday, 5 December, 2003
ASHFIELD MUNICIPAL COUNCIL v ARMSTRONG
Judgment
1 SANTOW JA: I agree with Foster AJA.
2 McCOLL JA: I agree with Foster AJA.
3 FOSTER AJA: This is an application for leave and, if leave be granted, to appeal against a decision given by Cowdroy J on 5 February 2003 in the Land & Environment Court of New South Wales. His Honour had for determination a question of law raised by the present claimant, Ashfield Municipal Council ("the Council"), in Class 1 proceedings brought by the opponent, L. Armstrong ("Mr Armstrong"), being an appeal against the refusal by the claimant of a development application made by him to it for alterations and additions to premises of which he and his wife were proprietors, being Lot 1, DP 908000, 6 Kensington Road, Summer Hill.
4 The question of law posed for his Honour's determination was:-
" Whether the existing use of the building on land known as Lot 1 DP 908000, 6 Kensington Road, Summer Hill for the purpose of a residential flat building permits the grant of a development consent to development application 148/00 which proposed basement car parking for nine residents in connection with the proposed conversion/extension of an existing building currently being used as four flats to provide 8 x 1 bedroom flats with basement parking."
5 For the purpose of the proceedings, the Council had conceded that the existing use rights in question extended over the entirety of the land, so described, upon which the building was erected. There was also no dispute that those rights also existed in respect of four garages, associated with the building and erected on the subject land.
6 His Honour, after considering the relevant statutory and regulatory provisions, to which reference will be made later and also relevant authorities, answered the question in the affirmative. It is against this answer that the Council seeks to appeal in these proceedings. Leave is required because his Honour's decision was interlocutory in nature.
7 In order to consider certain arguments that have been raised in this application, it is necessary to set out some preliminary matters.
8 The building in question had been first erected on the land in 1886 and, over the ensuing years had undergone alterations and additions. At the time of the relevant development application it was divided into four flats. Under the Ashfield Local Environment Plan 1985 (NSW) ("the LEP"), which had been gazetted on 20 December 1985, the premises were situated in Zone No. 2(a), which was a residential zone. As a result, the use of the land for the purposes of residential flat buildings had been prohibited. This was the situation at the time when the relevant development application was made by Mr Armstrong. Consequently he was obliged to rely upon "existing use" rights in respect of the premises, in order to found his application. This application sought consent for the demolition of the house and for the erection of eight one bedroom dwellings on the land with basement car parking for nine vehicles. Such a use of the land was clearly prohibited under the zoning and could only be supported by the opponent's having "existing use" rights or privileges under the relevant statutory and regulatory provisions.
9 On 13 July 2001 the Council, in the course of the Class 1 proceedings, was granted leave to amend its statement of issues to raise the following further issues.
"18.(a) Whether the use of the existing building is an 'existing use' within the meaning of s 106 Environmental Planning and Assessment Act 1979 .
(b) If the answer to (a) is in the negative, whether the proposed development is prohibited."
10 As a result of this amendment, the opponent took Class 4 proceedings, which were commenced on 5 October 2001. In those proceedings he sought a declaration in the following terms:-
"A declaration that the use of land known as lot 1 in DP 908000, 6 Kensington Road, Summer Hill is an 'existing use' for the purpose of a residential flat building under the provisions of the Environmental Planning and Assessment Act 1979."
11 There is nothing before the Court to indicate why this procedure was adopted rather than the opponent's seeking to have these issues decided as a preliminary question of law in the Class 1 proceedings. It appears that either procedure was apt to raise the question for determination. If the issue were to be decided in favour of the Council, then, the development application could not succeed and the Class 1 proceedings would necessarily have to be decided in favour of the Council.
12 On 9 October 2001 the Registrar of the Land & Environment Court made an order that the Class 4 proceedings instituted by the opponent be listed for hearing at the same time as the Class 1 proceedings. However, on 29 October 2001 the further hearing of the Class 1 proceedings was stood over until the determination of the Class 4 proceedings. There is nothing in the present proceedings to indicate why this course was followed. However, it was, no doubt, seen as a sensible course, which could save time and cost.
13 The Class 4 proceedings required, apparently, not inconsiderable evidence as to the use of the building from 1986 and also relevant consents that had been given, under prior legislation, to alterations, additions and the like. The proceedings were heard by Talbot J on 29 October, 20 November and 7 December, 2001. His Honour in a reserved judgment, reported in 119 LGERA 384, found in favour of the opponent and made the following declaration:-
"Declaration that the use of the building on land known as lot 1, DP 908000, 6 Kensington Road, Summer Hill for the purpose of multiple occupancy residential accommodation including a residential flat building is an existing use within the meaning of s 106 of the EP&A Act."
14 The Council appealed against this decision. The appeal was heard by a Court consisting of Mason P, Handley JA and Davies AJA. The appeal was heard on 30 July, 1 August and 23 August, 2002. The Court allowed the appeal to the extent of setting aside the declaration made by Talbot J and substituting a declaration that:
"The use of the building on land known as Lot 1 in DP 908000, 6 Kensington Road, Summer Hill for the purpose of a residential flat building is an existing use within the meaning of s 106 of the Environmental Planning & Assessment Act 1979."
( Ashfield Municipal Council v Armstrong [2002] NSWCA 269)
15 The result was, this hurdle having been surmounted, that Mr Armstrong was able to proceed with his Class 1 appeal in respect of the refusal of the development application. Although the material before the Court does not make it entirely clear, I am prepared to assume that these proceedings were assigned to Cowdroy J for hearing and that, thereafter, the Council raised in those proceedings the question of law referred to above. The raising of this question in the proceedings did not produce a Class 4 application for its determination. It appears that Cowdroy J was asked by the parties to determine it as a preliminary question of law in the Class 1 proceedings. Had he determined it in favour of the Council, it, also, would have brought the proceedings and the development application, in its present form, to an end. As already indicated, the decision of Cowdroy J was unfavourable to the Council and it has sought leave to bring the present appeal. The appeal has been fully argued before this Court, but the question of whether leave should be granted is very much a live question.
16 Mr Armstrong contends that leave should be refused because the Council should be estopped from raising the point of law, on the basis of the principles expounded in Port of Melbourne Authority v Anshun Pty Limited (1981) 147 CLR 589. The same submission had been made to Cowdroy J but his Honour had not found it necessary to decide the question as he found in favour of Mr Armstrong on the substantive issue before him.
17 The opponent's basic submission is that, pursuant to the Anshun principles, the Council should have been estopped from relying upon the point of law as it both could have and should have been raised in the proceedings before Talbot J and in the subsequent appeal. It was, at all relevant times, plain that the development application, the subject of the Class 1 proceedings, sought permission for the construction of an underground car park. It was the Council's contention that it was not possible, as a matter of law, having regard to the terms of the declaration of existing use, for it to grant permission for a subterranean development on the subject land. It was the opponent's contention that there was no reason why this question could not have been raised in the Class 4 proceedings. The Council's response was that it was not reasonable that it should have been required to do so and that, consequently, it was not subject to an Anshun estoppel.
18 The principles relating to this estoppel have been considered in a number of cases. In Murphy v Abi-Saab & Ors (1995) 37 NSWLR 280 at 287, Gleeson CJ referred to it in the following way:-
"In Anshun , the High Court applied a principle enunciated as long ago as 1843, by Wigram V-C, in Henderson v Henderson (1843) 3 Hare 100 at 115; 67 ER 313 at 313. The Court requires parties to a litigation to bring forward their whole case and will not permit a party to reserve a claim and propound it later when it could and should have been propounded in the original proceedings."
19 The judgments in the High Court in Anshun are lengthy. I do not propose to refer to them directly in these reasons. They were considered by Samuels JA in Boles v ESANDA Finance Corporation Limited (1989) 18 NSWLR 666 and it is convenient to have regard to his Honour's exposition. He pointed out (at 669) that it was accepted in the High Court that reliance should be placed on the statement of Sir James Wigram VC, in Henderson v Henderson (1843) (3 Hare 100; 67 ER 313 at 115; 319):
"…where a given matter becomes the subject of litigation in, and of adjudication by, a Court of competent jurisdiction, the Court requires the parties to that litigation to bring forward their whole case, and will not (except under special circumstances) permit the same parties to open the same subject of litigation in respect of matter which might have been brought forward as part of the subject in contest, but which was not brought forward, only because they have, from negligence, inadvertence, or even accident, omitted part of their case. The plea of res judicata applies, except in special cases, not only to points upon which the Court was actually required by the parties to form an opinion and pronounce a judgment, but to every point which properly belonged to the subject of litigation, and which the parties, exercising reasonable diligence, might have brought forward at the time."
20 His Honour then referred, in some detail, to the course of reasoning in the High Court, relating to the conceptual bases of the rule, as appearing in other authorities:
"In this situation we would prefer to say that there will be no estoppel…..unless it appears that the matter relied upon as a defence in the second action was so relevant to the subject matter of the first action that it would have been unreasonable not to rely on it. Generally speaking, it would be unreasonable not to plead a defence if, having regard to the nature of the plaintiff's claim, and its subject matter it would be expected that the defendant would raise the defence and thereby enable the relevant issues to be determined in the one proceeding. In this respect, we need to recall that there are a variety of circumstances, some referred to in the earlier cases, why a party may justifiably refrain from litigating an issue in one proceeding yet wish to litigate the issue in other proceedings eg expense, importance of the particular issue, motives extraneous to the actual litigation, to mention but a few."
21 Samuels JA also referred to the following passage from Anshun (at 603),namely:
"It has generally been accepted that a party will be estopped from bringing an action which, if it succeeds, will result in a judgment which conflicts with an earlier judgment."
22 I consider that the passages relied upon by Samuels JA in Boles are equally applicable in the present case. I consider that the opponent has made out a case that the claimant should be estopped from asserting any argument based upon the legal point raised before Cowdroy J, because it could and should have been raised in the earlier proceedings before Talbot J.
23 The claimant seeks to meet this problem by asserting that the proceedings before Talbot J and those before Cowdroy J were, in effect, different in kind, with the result that it was not appropriate for the present point of law to have been raised in the earlier proceedings. It is argued that the earlier proceedings were apt for the ascertainment of whether there was, in fact, an existing use and the second to determine whether the existing use, if so found, was capable of supporting the opponent's development application. With respect, I consider that this is an artificial argument. Both points, if successfully raised, would have been an answer to the Class 1 proceedings and the opponent's development application. I am not persuaded that there was any impediment to their being disposed of in the one proceedings before Talbot J.
24 In my opinion, therefore, the claimant is estopped from relying upon the point of law raised and argued before Cowdroy J. I am satisfied, with respect, that his Honour should have so held. This is sufficient to dispose of the present application. However, I consider it appropriate that I should, also, determine the substantive question in the appeal from the decision of Cowdroy J.
25 The argument before his Honour concerned that part of the development application which sought permission for the creation of basement car parking for nine residents of the proposed new residential flat building. The claimant submitted that the effect of the relevant statutory and regulatory provisions, when read with certain decided cases, was to deprive it of any power to grant the permission sought. It is necessary, in the first place, to set out the relevant provisions.
26 "Existing use" is defined in s 106(a) of the Environmental Planning & Assessment Act 1979 ("the Act") as follows:-
"In this Division, existing use means
(a) the use of a building, work or land for a lawful purpose immediately before the coming into force of an environmental planning instrument which would, but for Division 4A of Part 3 or Division 4 of this Part, have the effect of prohibiting that use…."
27 Under the heading "continuance of and limitations on existing use" s 107, relevantly, provides as follows:-
"(1) Except where expressly provided in this Act, nothing in this Act or an environmental planning instrument prevents the continuance of an existing use.
(2) Nothing in subsection (1) authorises:
(a) any alteration or extension to or rebuilding of a building or work, or
(b) any increase in the area of the use made of a building, work or land from the area actually physically and lawfully used immediately before the coming into operation of the instrument therein mentioned, or
(c) without affecting paragraph (a) or (b), any enlargement or expansion or intensification of any existing use,…….