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[2020] WASCA 168
Court of Appeal (WA)
2020-10-02
Murphy JA
Original judgment source is linked above.
Bridges v Bridges [2010] NSWSC 1287
Cowell v Rosehill Racecourse Co Ltd (1937) 56 CLR 605
Dalton v Henry Angus & Co (1881) 6 App Cas 740
Executive Seminars Pty Ltd v Peck [2001] WASC 229
Ghilarducci v Ghilarducci (WASC, Library No 920365, 15 July 1992)
Hampton v BHP Billiton Minerals Pty Ltd [No 2] [2012] WASC 285
Kuru v The State of New South Wales [2008] HCA 26; (2008) 236 CLR 1
Maio v City of Stirling [No 2] [2016] WASCA 45
Malter v Procopets [2000] VSCA 11; [2000] V ConvR 54‑624
Mulcahy v Curramore Pty Ltd [1974] 2 NSWLR 464
Petkov v Lucerne Nominees Pty Ltd (1992) 7 WAR 163
Plenty v Dillon [1991] HCA 5; (1991) 171 CLR 635
Radonic v Radonic [1999] WASC 165
Secretary, Department of Health and Community Services v B [1992] HCA 15; (1992) 175 CLR 218 (Marion's Case)
Southage Pty Ltd v Beijing Garden Resort Pty Ltd [2013] VSC 272
Sturges v Bridgman [1879] UKLawRpCh 225; (1879) 11 Ch D 852
Whittlesea City Council v Abbatangelo [2009] VSCA 188; (2009) 259 ALR 56
The parties' acquisition of the lots and the old fence
31.1 Glenn [(Mr Royle)] and I would arrange for part of the Original Fence located in the front of Lot 238 and Lot 239 to be removed ...;
31.2 Sharon would arrange for the rest of the Original Fence, being a side boundary fence on Lot 238 that was attached to the front of the Original Fence, to be removed with the assistance of his friends at a later date;
31.3 a new fence would be erected on the boundary between Lot 238 and Lot 239 established by Sorensen, as shown in the Sorensen survey and by the survey pegs placed by Sorensen (New Fence);
(a) run from the rear of Lot 238 and Lot 239 to approximately in line with the corner of Sharon's house; and
(b) be made from timber, part of which would sit on 3 small limestone retaining walls due to the slope of the ground;
31.5 the 3 small retaining walls that were part of the timber fence would sit on, would also be erected along the boundary to encase our future garden;
31.6 I would obtain a quotation from a fencing contractor for the erection of the timber portion of the New Fence for Sharon and the [Ben‑Pelechs'] approval;
31.7 Glenn and I would organise and pay the costs of erecting the 3 small retaining walls and, subject to their approval of the fencing contractor's quotation, Sharon and the [Ben‑Pelechs] would split the costs of the timber portion of the New Fence with Glenn and me;
31.8 Sharon would provide Glenn and me and the fencing contractor with access to the Lot 238 driveway to take limestone blocks to the back of Lot 238 and then on to Lot 239 from our back yard landscaping;
31.9 Glenn and I and Sharon would jointly supervise the fencing contractor's erection of the timber portion of the New Fence, with me supervising during the day because I did not work full days and Sharon and Glenn inspecting the New Fence when they arrived home from work each day.
Shortly after the removal of part of the Original Fence ... and, in or around June or July 1993, I observed that the fencing contractor attended Lot 238 and Lot 239 twice and set up a string line running from the Sorensen survey pegs at the front and rear of Lot 238 and Lot 239.
I recall looking at the Sorensen survey pegs and the fencing contractor's plans for the New Fence with Sharon on at least one occasion in June or July 1993 and Sharon confirming he was satisfied with the location and line for the New Fence.
The Ben‑Pelechs' subdivision activity and the discovery of the misalignment of the replacement fence
The Ben‑Pelechs' arguments in response to the finding of adverse possession
1.1 an interest in land arising as a consequence of a claim for adverse possession was not an 'estate or interest' in land for the purposes of [s 163(1) of the TLA]; and
1.2 [s 163(1) of the TLA] did not apply to the interest in part of lot 200 claimed by the [Royles] [(primary reasons at [131])].
2.1 the [Royles'] alleged possession of part of lot 200 was 'adverse' in the sense required to support a claim for adverse possession; and
2.2 the [Royles] were the unregistered proprietors of part of lot 200;
in circumstances where the [Ben‑Pelechs] had consented and contributed to the erection of a fence not located on the cadastral boundary as a consequence of the negligence of a qualified surveyor [(primary reasons at [113])].
The most common case in which a possessory title is asserted in Victoria is, in my experience, one like the present, in which the fence dividing two residential allotments departs slightly from the title boundary and the adjoining owners have for many years assumed that there was no encroachment; in such a case it has never, so far as I am aware, been suggested that it is an answer to the possessory claim that the persons said to have been in adverse possession believed themselves to be the owners of the strip of land. (emphasis added)
Ground 1 of the appeal and the notice of contention
(1) The effect of s 163 is that, upon verification of a plan of subdivision, any estate or interest in the land the subject of that plan which is not noted on that plan is determined.[80]
(2) Any person, having an estate or interest in land that is injured by the operation of s 163, is entitled to compensation in the form of damages only.[81]
(3) The Ben‑Pelechs' plan of subdivision was verified on 1 November 2017. That plan included their new subdivided lot 200.[82]
(4) At that date, the Royles' interest in lot 200, claimed by way of adverse possession, was determined.[83]
Where a block of land has been subdivided and the whole or part thereof sold in allotments according to a plan of subdivision but such block is altogether or in part unoccupied and by reason of errors of survey or misdescription in the muniments of title the boundaries and positions of such subdivisional allotments cannot be ascertained with certainty or are found to be inconsistent with each other and with the scheme of subdivision indicated by what appears on the ground or in the muniments of title and if the original external survey boundaries of such block can be determined and sufficient evidence is available to satisfy the Commissioner as to the governing features of the original scheme the number and relative positions and relative dimensions of the subdivisional allotments roads streets and ways he may upon an application to bring any such subdivisional allotment or allotments under this Act or where such land is already under The Transfer of Land Act 1874 or this Act to have a separate certificate of title created and registered for such allotment or allotments or an existing certificate amended or for a relevant graphic to be amended or replaced cause a survey to be made and if it be found that such land or any portion thereof has been erroneously described as regards position dimensions or area or that an excess or deficiency of measurement exists he may if of opinion that such a course is necessary and expedient for the recognition or registration of titles to land comprised in the said block prepare a scheme of subdivision of the whole or any portion of such block agreeing as near as may be with the original scheme as indicated by such evidence as aforesaid and for that purpose may adjust and determine all or any of the boundary lines and the position and dimensions of the roads streets and ways and apportion any excess either in accordance with section 159 or in such other manner as he shall deem equitable and expedient for the purposes of such subdivision.
The scheme of subdivision so prepared shall be embodied in a plan and adopted provisionally for the purposes of the notices hereinafter mentioned.
(1) After such plan has been constructed the Commissioner shall in addition to any other notices which he may think fit direct notice of the proposed subdivision to be advertised once at least in a newspaper published in Perth and in a newspaper (if any) published and circulating in the neighbourhood of the land and also to be served upon all persons appearing by the Register to be owners or proprietors of the fee simple of any portion of such land.
(2) Such notice shall state that such provisionally adopted plan can be inspected at the Authority's office and appoint a time not less than 14 days nor more than 6 months within which objections or proposals to alter the same and evidence in support of such objections or proposals will be received by the Commissioner.
(3) It shall be in the discretion of the Commissioner whether or not he will concede to any objections or adopt any alteration submitted to him upon such notice; and if he do adopt any such alteration whether or not any and what notice thereof shall be given to all or any of the persons previously notified.
163. Finalised subdivision, verification and effect of plan of
(1) After a scheme of subdivision has been finally decided upon the plan embodying it shall be verified by the Commissioner and the inspector of plans and surveys signing a statement in an approved form on the plan and the plan so verified shall be marked with a distinguishing symbol and kept by the Registrar as an approved lodged map of subdivision and shall as from the date of such verification govern the titles subsequently created and registered under this Act in respect of the block so subdivided or any portion thereof.
(1A) The remedy of any person having an estate or interest in the land subdivided or in any portion thereof who shall be injured by any certificate of title registered for the purposes of such subdivision shall lie in damages only and the same may be sued for and recovered in manner indicated by section 207.
inspector of plans and surveys means the person who, for the purposes of section 18 of the Licensed Surveyors Act 1909, is appointed by the Governor to approve plans of authorised surveys within the meaning of that Act.
Notice of such subdivision and verification of the plan shall be published in the Government Gazette and in some newspaper circulating in the neighbourhood of the land.
The expense of any survey which the Commissioner shall cause to be made under section 160 shall in the first instance be defrayed out of the Consolidated Account but every applicant who after such subdivision shall apply to bring any portion of the land comprised in such subdivision under this Act or to have a certificate created and registered or amended or for a relevant graphic to be amended or replaced as to any such land for the first time after such subdivision shall in addition to any other moneys chargeable in such case paid to the Registrar (to be by him paid into the Consolidated Account) such amount as the Commissioner shall under his hand certify to be in his judgment an equitable share of such expense to be contributed in respect of the land comprised in such application.
(1) A proprietor of land under the operation of this Act who, after section 98 of the Transfer of Land Amendment Act 1996 comes into operation, wishes to subdivide the land shall apply, in an approved form and on payment of the prescribed fee, to the Registrar for the creation and registration of new certificates of title for the land and the application shall be made in relation to a plan or diagram of the land complying with subsection (2).
(2) Such plan or diagram shall exhibit distinctly delineated all roads streets passages thoroughfares squares or reserves appropriated or set apart for the use of the purchasers and all permanent drains and also all allotments into which the said land may be divided marked with distinct numbers or symbols and shall also show the areas and shall comply in every respect with the rules and regulations for the time being for the guidance of surveyors when practising under this Act.
(3) On an application under this section but subject to section 146(1) of the Planning and Development Act 2005, the Registrar may create and register a new certificate or certificates of title for the land the subject of the application.
(4) For the purposes of subsection (3), the Registrar may have regard to a request of the applicant in relation to when the new certificate or certificates of title are to be created and registered.
(a) plans or diagrams include references to plans of survey of Crown land; and
(b) certificates of title include references to certificates of Crown land title as they apply to plans of survey of Crown land.
(1) Section 160 empowers the Commissioner to address uncertainty and inconsistencies in the boundaries and positions of subdivisional allotments in a block of land that has been subdivided and that is partly or wholly unoccupied. The Commissioner does so by preparing a 'scheme of subdivision of the whole or any portion of such block agreeing as near as may be with the original scheme'.
(2) Section 161 refers to the 'scheme of subdivision so prepared', that is, the scheme of subdivision prepared in the circumstances and for the purpose set out in s 160. Section 161 provides that the scheme of subdivision so prepared shall be 'embodied in a plan and adopted provisionally for the purposes of the notices hereinafter mentioned'.
(3) Section 162(1) refers to steps to be taken '[a]fter such plan has been constructed'. This is, obviously, a reference to the plan referred to and required by s 161. Further, as foreshadowed by s 161, s 162(1) goes on to set out where notice of the proposed subdivision must or may be advertised.
(4) Section 162(2), adopting the language of s 161, requires the notice to state that 'such provisionally adopted plan' can be inspected at the office of the Western Australian Land Information Authority.
(5) Also pursuant to s 162(2), the notice must appoint a time within which objections or proposals to alter the provisionally adopted plan and evidence in support of such objections and proposals will be received by the Commissioner.
(6) Section 162(3) invests the Commissioner with a discretion whether to concede to any objections received and whether to adopt any alteration submitted to the Commissioner upon the notices referred to in s 162(2).
(7) Section 163(1) states that '[a]fter a scheme of subdivision has been finally decided upon the plan embodying it shall be verified'. The reference to the plan 'embodying' the scheme of subdivision is a reference back to s 161, the section that directs that the scheme of subdivision 'be embodied in a plan'.
(8) Further, as has been seen, s 162 prescribes a process by which the plan is advertised, objections may be made and alterations may be proposed, in response to which the Commissioner can concede objections or adopt alterations. In that context, the reference in the opening line of s 163(1), to the scheme of subdivision being 'finally decided upon', is a reference to the completion of the process required by s 162.
(9) Section 163(1) states that a verified plan of subdivision shall, from the date of verification, 'govern the titles subsequently created and registered under this Act in respect of the block so subdivided or any portion thereof'. The term 'block' is used in the same sense as it is used in s 160. Section 160 is framed by reference to 'a block of land [that] has been subdivided'. It empowers the Commissioner to prepare a scheme of subdivision 'of the whole or any portion of such block' to address the defects of the kind identified in s 160. The only sections in the TLA which use the term 'block' are s 160, s 159 (to which s 160 refers) and s 163.
(10) The words in s 164 ‑ 'such subdivision and verification' ‑ are an unambiguous reference to the subdivision and verification prescribed in s 163.
(11) Section 165 sets out who is to bear the expense of a survey that the Commissioner causes to be made under s 160. Further, there is correspondence between: (a) the applications upon which the Commissioner may cause a survey to be made pursuant to s 160; and (b) the applicants who, pursuant to s 165, the Commissioner may order to pay for the expense of a survey conducted under s 160.
(1) The Registrar of Titles is not to create or register a certificate of title under the Transfer of Land Act 1893 for land the subject of a plan of subdivision unless a diagram or plan of survey of the subdivision of that land has been endorsed with the approval of the Commission and -
(a) in the case of a diagram or plan of survey endorsed with the approval of the Commission before the coming into operation of this section, the title application was lodged with the Registrar of Titles before, or is lodged with the Registrar of Titles within 5 years after, the coming into operation of this section; and
(b) in the case of a diagram or plan of survey endorsed with the approval of the Commission on or after the coming into operation of this section, the diagram or plan of survey has been endorsed with the approval of the Commission within the 24 months preceding the lodging of a title application with the Registrar of Titles; and
(c) any conditions as to the registration or recording or continued registration or recording of an encumbrance or other document on or before the creation or registration of a certificate of title that are noted on the diagram or plan of survey have been complied with, or will be complied with at the time the certificate of title is created or registered.
title application, in relation to a diagram or plan of survey, means an application for new titles to be created and registered for land the subject of the diagram or plan of survey.
(3) A plan containing one lot only is deemed a diagram or plan of survey of a subdivision provided that it is a portion of land comprised in -
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
CITATION : BEN-PELECH -v- ROYLE [2020] WASCA 168 (S)
Citation : BEN-PELECH -v- ROYLE [2019] WASC 297
Practice and procedure - Costs - Whether appellants continued appeal in circumstances where, properly advised, they should have known that they had no chance of success
Ben‑Pelech v Royle [2020] WASCA 168
Currie v Currie [No 2] [2019] WASCA 2 (S)
Huntingdale Village Pty Ltd v Korda [2015] WASCA 101 (S)
Huntsman Chemical Co Australia Ltd v International Pools Australia Ltd (1995) 36 NSWLR 242
Re Bond Corporation Holdings Ltd (1990) 1 WAR 465
Swansdale Pty Ltd v Whitcrest Pty Ltd [2010] WASCA 129 (S)
Yara Australia Pty Ltd v Oswal [2012] WASCA 264
(2) The appellants pay the first and second respondents' costs of the appeal:
(a) up to and including 19 November 2019, on a party and party basis, as agreed or to be assessed if not agreed; and
(b) after 19 November 2019, on an indemnity basis, as agreed or to be assessed if not agreed.
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] At trial, the third respondent, the Registrar of Titles, filed a notice to abide the decision of the court and took no further part in the proceedings. Consistently with that, and with usual practice, the third respondent is not taking part in this appeal.
[10] Primary reasons [31], [33]. Mrs Freeth also made the parties aware of other boundary issues, not relevant to the present appeal; see primary reasons [32] ‑ [33].
[17] It was later discovered, in circumstances explained below, that the assumed boundary line was not the true boundary line between the lots.
[24] Primary reasons [54]; Exhibit 1.4, Affidavit of Rosemary Anne Royle (14 February 2019) [39] ‑ [40].
[31] Primary reasons [9], [59], [82].
[37] For a diagram depicting the disputed area, see primary reasons [97].
[47] Primary reasons [85] ‑ [86], [99] ‑ [100], [103].
[48] Primary reasons [92], [104], [106], [108] ‑ [109].
[50] Primary reasons [111] ‑ [113].
[58] Appellants' submissions [42], [51].
[59] Appellants' submissions [37], [42], [49].
[64] Appellants' submissions [41], citing primary reasons [112].
[65] The Limitation Act 2005 (WA) does not apply, as the Ben‑Pelechs' cause of action accrued before November 2005, when the Limitation Act 2005 commenced: see Limitation Act 2005, s 2, s 4.
[66] Petkov v Lucerne Nominees Pty Ltd (1992) 7 WAR 163, 166.
[67] Mulcahy v Curramore Pty Ltd [1974] 2 NSWLR 464, 475; see also Whittlesea City Council v Abbatangelo [2009] VSCA 188; (2009) 259 ALR 56 [6(a)]; Bridges v Bridges [2010] NSWSC 1287 [14(vi)]; Southage Pty Ltd v Beijing Garden Resort Pty Ltd [2013] VSC 272 [88] ‑ [91].
[68] Ghilarducci v Ghilarducci (WASC, Library No 920365, 15 July 1992) 5 (Malcolm CJ), 21 - 23 (Franklyn J); Radonic v Radonic [1999] WASC 165 [145] and cases there cited; Executive Seminars Pty Ltd v Peck [2001] WASC 229 [201].
[69] Ghilarducci v Ghilarducci (5) (Malcolm CJ), (21) (Franklyn J).
[70] Cowell v Rosehill Racecourse Co Ltd (1937) 56 CLR 605, 630 ‑ 631; Kuru v The State of New South Wales [2008] HCA 26; (2008) 236 CLR 1 [43].
[71] Plenty v Dillon [1991] HCA 5; (1991) 171 CLR 635, 647; Secretary, Department of Health and Community Services v B [1992] HCA 15; (1992) 175 CLR 218 (Marion's Case), 310 ‑ 311; Kuru [43].
[72] Entry with lawful authority not derived from the owner's consent.
[73] Hampton v BHP Billiton Minerals Pty Ltd [No 2] [2012] WASC 285 [279].
[74] Maio v City of Stirling [No 2] [2016] WASCA 45 [77] ‑ [78], citing Dalton v Henry Angus & Co (1881) 6 App Cas 740, 773 ‑ 775 and Sturges v Bridgman [1879] UKLawRpCh 225; (1879) 11 Ch D 852, 863 ‑ 864.
[76] Statement of claim [18] ‑ [19]; reply and defence to counterclaim [3].
[78] Byrne v Australian Airlines Ltd (1995) 185 CLR 410, 422, 442.
[79] Malter v Procopets [2000] VSCA 11; [2000] V ConvR 54‑624 [5].
[83] Appellants' submissions [3] ‑ [4].
[84] Appellants' submissions (notice of contention) [9].
[85] Appellants' submissions (notice of contention) [15].
[86] Appellants' submissions (notice of contention) [21.3]; appeal ts 29, 31.
[87] Appellants' submissions (notice of contention) [21.1]; appeal ts 29, 31.
[88] Appellants' submissions (notice of contention) [27] ‑ [36]; appeal ts 31, 33 ‑ 34.
[89] Appellants' submissions (notice of contention) [22] - [26].
[90] All emphasis in the quotes in this paragraph has been added.
[92] Ben‑Pelech v Royle [2020] WASCA 168 (Appeal Reasons).
[93] Swansdale Pty Ltd v Whitcrest Pty Ltd [2010] WASCA 129 (S) [10].
[94] Yara Australia Pty Ltd v Oswal [2012] WASCA 264 [33].
[95] Huntingdale Village Pty Ltd v Korda [2015] WASCA 101 (S) [11] - [17].
[96] Huntsman Chemical Co Australia Ltd v International Pools Australia Ltd (1995) 36 NSWLR 242, 249 ‑ 250.
[100] Re Bond Corporation Holdings Ltd (1990) 1 WAR 465, 479; Currie v Currie [No 2] [2019] WASCA 2 (S) [13].
(1995) 185 CLR 410
(1937) 56 CLR 605
(2008) 236 CLR 1
(1992) 7 WAR 163
(1991) 171 CLR 635
(2009) 259 ALR 56
(1990) 1 WAR 465
(1995) 36 NSWLR 242
(1992) 175 CLR 218