[This headnote is not to be read as part of the judgment]
Pursuant to s 77(iii) of the Constitution, s 39(2) of the Judiciary Act 1903 (Cth) invested the "Courts of the States" with federal jurisdiction in "all matters in which the High Court has original jurisdiction or in which original jurisdiction can be conferred upon it", subject to certain exceptions and conditions, but including jurisdiction in "all matters … between residents of different States" under s 75(iv) of the Constitution.
In 2015, two separate proceedings under the Residential Tenancies Act 2010 (NSW) (the RT Act) were commenced "between residents of different States" in the Civil and Administrative Tribunal of New South Wales. One proceeding involved an application to the Tribunal for an order terminating a residential tenancy agreement under s 87 of the RT Act. The other proceeding involved two applications to the Tribunal for orders for various forms of compensation. After both proceedings were determined by the Tribunal, the unsuccessful party in each proceeding appealed to the Appeal Panel of the Tribunal.
Prior to the hearing of the appeals, the Appeal Panel raised questions about the jurisdiction of the Tribunal to determine proceedings "between residents of different States". The hearing of both appeals was then stood over pending the decision of the Court of Appeal in Burns v Corbett [2017] NSWCA 3. Upon the assumption that the Tribunal was not a "court of a State" within the meaning of s 39(2) of the Judiciary Act 1903 (Cth) and s 77(iii) of the Constitution, the Court held that the Tribunal did not have jurisdiction to determine matters "between residents of different States". The High Court of Australia later affirmed this decision in Burns v Corbett [2018] HCA 15, albeit on different grounds.
Following the decision of the Court of Appeal, the Appeal Panel of the Tribunal directed that a separate hearing be held on two questions relating to the jurisdiction of the Tribunal to determine matters "between residents of different States". The first question was whether the Tribunal had been exercising judicial power in making the orders sought under the RT Act. The second question was, if the Tribunal were exercising judicial power in making the orders sought under the RT Act, whether the Tribunal was a "court of a State" within the meaning of s 39(2) of the Judiciary Act 1903 (Cth) and s 77(iii) of the Constitution, which had been assumed, but not decided, in Burns v Corbett [2017] NSWCA 3.
The Attorney General for New South Wales was joined as a party to the proceedings before the Appeal Panel. In relation to the first question, the Attorney General submitted that the Tribunal was exercising judicial power in making the orders sought under the RT Act, and that it therefore had jurisdiction to determine the proceedings. In relation to the second question, the Attorney General submitted that the Tribunal did not have jurisdiction to determine the proceedings because it was not a "court of a State" within the meaning of s 39(2) of the Judiciary Act 1903 (Cth) and s 77(iii) of the Constitution.
In relation to the first question, the Appeal Panel determined that the making of the orders sought under the RT Act was an exercise of judicial power. In relation to the second question, the Appeal Panel determined that the Tribunal was a "court of a State" within the meaning of s 39(2) of the Judiciary Act 1903 (Cth) and s 77(iii) of the Constitution. The Attorney General then sought leave to appeal from this determination in the New South Wales Court of Appeal under s 83(1) of the Civil and Administrative Tribunal Act 2013 (NSW) (the NCAT Act).
The issues on the appeal were:
1 Whether the Court had jurisdiction under s 83(1) of the NCAT Act to determine the appeal;
2 Whether the Tribunal was exercising judicial power in making an order under s 87 of the RT Act terminating a residential tenancy agreement; and
3 Whether the Tribunal is a "court of a State" within the meaning of s 39(2) of the Judiciary Act 1903 (Cth) and s 77(iii) of the Constitution.
Whether the Court had jurisdiction under s 83(1) of the NCAT Act
(i) Section 83(1) permits a party to a proceeding before the Appeal Panel to appeal on a question of law against "any decision" made in the proceedings. The phrase "any decision" is broad enough to encompass the answers given by the Appeal Panel to the questions identified for separate determination, regardless of whether that determination gave rise to a directly enforceable legal obligation: [96] (Bathurst CJ); [197] (Beazley P); [198] (McColl JA); [208] (Basten JA); [280]-[289] (Leeming JA).
Whether the Tribunal was exercising judicial power
(ii) The Tribunal was exercising judicial power in making an order under s 87 of the RT Act terminating a residential tenancy agreement because the discretion exercised by the Tribunal to make an order under the section was analogous to that exercised by courts under the general law, since the section required the Tribunal to identify whether the contract constituting such an agreement existed, whether the contract was breached, and whether the breach was sufficient to justify termination. Further, such a termination order was enforceable by the Tribunal: [125]-[137] (Bathurst CJ); [197] (Beazley P); [198]-[200] (McColl JA); [279] (Leeming JA).
Silk Bros Pty Ltd v State Electricity Commission (Vic) (1943) 67 CLR 1; [1943] HCA 2; Precision Data Holdings Ltd v Wills (1991) 173 CLR 167; [1991] HCA 58; Attorney-General (Cth) v Alinta Ltd (2008) 233 CLR 542; [2008] HCA 2, Dattilo v Commonwealth (2017) 249 FCR 347; [2017] FCAFC 17; Odzic v Commonwealth [2017] FCAFC 28, considered.
Federal Commissioner of Taxation v Munro (1926) 38 CLR 153; [1926] HCA 58; Peacock v Newtown Marrickville and General Co-operative Building Society No 4 Ltd (1943) 67 CLR 25; [1943] HCA 13; R v Trade Practices Tribunal; Ex parte Tasmanian Breweries Pty Ltd (1971) 123 CLR 361; [1970] HCA 8; Brandy v Human Rights and Equal Opportunity Commission (1995) 183 CLR 245; [1995] HCA 10; Attorney-General (Cth) v Breckler (1999) 197 CLR 83; [1999] HCA 28; Sue v Hill (1999) 199 CLR 462; [1999] HCA 30, referred to.
(iii) The Tribunal was not exercising judicial power in making an order under s 87 of the RT Act terminating a residential tenancy agreement because there was no "matter" before it for the purpose of s 75(iv) of the Constitution. Where State legislation does not confer jurisdiction on a court of a State to determine a proceeding, there will be no "matter" arising under that legislation. Since no right, duty or liability established by the RT Act was enforceable by a court until the Tribunal had determined an application under s 87, there was no "matter" before the Tribunal for the purpose of s 75(iv) of the Constitution: [229]-[248] (Basten JA).
South Australia v Victoria (1911) 12 CLR 667; [1911] HCA 17; In re Judiciary Act 1903-1920 and In re Navigation Act 1912-1920 (1921) 29 CLR 257; [1921] HCA 20; Abebe v Commonwealth (1999) 197 CLR 510; [1999] HCA 14, considered.
R v Hegarty; Ex parte City of Salisbury (1981) 147 CLR 617; [1981] HCA 51; Bushell v Repatriation Commission (1992) 175 CLR 408; [1992] HCA 47; Palmer v Ayres (2017) 259 CLR 478; [2017] HCA 5; TNT Skypak International (Aust) Pty Ltd v Federal Commissioner of Taxation [1988] FCA 198; (1988) 82 ALR 175, referred to.
Whether the Tribunal was a "court of a State"
(iv) Although the Tribunal had many of the features of a "court" and exercises the judicial power of the State in some cases, the Tribunal was not a "court of a State" within the meaning of s 39(2) of the Judiciary Act 1903 (Cth) and s 77(iii) of the Constitution. The Tribunal was not designated a "court of record" and was expressly distinguished from a "court of law". Further, most members of the Tribunal did not have the tenure and protection comparable to that held by judges under the Act of Settlement 1701 (UK) and its equivalents, and lacked the necessary institutional independence and impartiality which were required for a body to be described as a "court of a State": [184]-[192] (Bathurst CJ); [197] (Beazley P); [198], [201]-[205] (McColl JA); [223]-[228] (Basten JA); [279] (Leeming JA).
Forge v Australian Securities and Investments Commission (2006) 228 CLR 45; [2006] HCA 44; Trust Company of Australia Ltd v Skiwing Pty Ltd (2006) 66 NSWLR 77; [2006] NSWCA 185; Commonwealth v Anti-Discrimination Tribunal (Tas) (2008) 169 FCR 85; [2008] FCAFC 104; Director of Housing v Sudi (2011) 33 VR 559; [2011] VSCA 266; Qantas Airways Ltd v Lustig (2015) 228 FCR 148; [2015] FCA 253, considered.
Commonwealth v Hospital Contribution Fund of Australia (1981) 150 CLR 49; [1982] HCA 13; Harris v Caladine (1991) 172 CLR 84; [1991] HCA 9; North Australian Aboriginal Legal Aid Service Inc v Bradley (2004) 218 CLR 146; [2004] HCA 31; K-Generation Pty Ltd v Liquor Licensing Court (2009) 237 CLR 501; [2009] HCA 4; Assistant Commissioner Condon v Pompano Pty Ltd (2013) 252 CLR 38; [2013] HCA 7, referred to.
(v) The insertion of Part 3A into the NCAT Act by the Justice Legislation Amendment Act (No 2) 2017 (NSW) was a clear legislative statement that the Tribunal was not a "court of a State" for the purpose of s 39(2) of the Judiciary Act 1903 (Cth) and s 77(iii) of the Constitution. The premise of Part 3A was that the Tribunal lacked jurisdiction to determine matters "between residents of different States" under s 75(iv) of the Constitution: [197] (Beazley P); [205] (McColl JA); [292]-[304] (Leeming JA).