(a) legal principles
82Because, for the reasons indicated above, the primary judge was correct to set aside the decision of the Tribunal on the ground of procedural unfairness, it is not strictly necessary to address the second set of submissions made by the Housing Corporation, challenging three aspects of the decision of the Tribunal which were held by Hoeben J to have been made in the absence of relevant evidence. Nevertheless, as the matter will need to be reconsidered by the Tribunal, although potentially on a different factual basis, it is desirable to address these additional grounds.
83Although there was reference to "error on the face of the record" before his Honour, he correctly noted that Ms Brennan needed to establish jurisdictional error, in the light of the privative provisions of s 65 of the CTTT Act : at [54]. His Honour first concluded that certain findings made by the Tribunal were jurisdictional because the Tribunal "only had power to make the orders which it did provided it was satisfied as to the matters which it had to consider under s 64(2) and 64(4) [of the Residential Tenancies Act 1987 (NSW)]": at [62]. The relevant parts of s 64 state:
" 64 Application to Tribunal by Landlord for termination and order for possession
...
(2) The Tribunal, on application by a landlord under this section, is to make an order terminating the agreement if it is satisfied:
...
(b) in the case of a notice given by a landlord on the ground referred to in section 57, relating to a breach of the agreement:
(i) that the landlord has established the ground, and
(ii) that the breach, in the circumstances of the case, is such as to justify termination of the agreement ....
...
(4) Without limiting the obligations of the Tribunal under subsection (2)(b) ..., in considering the circumstances of a case concerning social housing premises under that provision, the Tribunal, in addition to having regard to the circumstances of the tenant and other circumstances of the case, is to have regard to such of the following matters as may be relevant:
(a) any serious adverse effects the tenancy has had on neighbouring residents or other persons,
(b) whether any breach of the residential tenancy agreement was a serious one ...."
84Section 64(2) identified a particular kind of 'jurisdictional fact', namely the state of satisfaction of the Tribunal. A state of satisfaction may not be validly reached in law, where the Tribunal "is bound to take a factor into account but does not": Saeed v Minister for Immigration and Citizenship [2010] HCA 23; 241 CLR 252 at [54] (French CJ, Gummow, Hayne, Crennan and Kiefel JJ).
85Section 64(4) had a different function: it imposed on the Tribunal an obligation to have regard to the matters which it identified. Failing to have regard to considerations which were mandatory so far as relevant, would constitute jurisdictional error: Minister for Aboriginal Affairs v Peko-Wallsend Ltd [1986] HCA 40; 162 CLR 24 at [39] (Mason J). However, the primary judge did not suggest that the Tribunal failed to give consideration to those factors; rather, it made findings about them which were said to be unsupported by the evidence: at [57]-[60]. There may be circumstances in which taking a mandatory consideration into account in an erroneous manner can demonstrate jurisdictional error, but that possibility was not explored.
86His Honour stated that the Tribunal "only had power" to make a possession order if "satisfied as to the matters which it had to consider under s 64(2) and s 64(4)": at [62]. This statement was problematic. First, in relation to s 64(2), it reversed its purpose, which was to require the Tribunal to make an order terminating the agreement if affirmatively satisfied of certain matters. In other words, if so satisfied arguably the Tribunal had no discretion as to the proper order. It may have followed, but did not necessarily follow, that if not so satisfied, the Tribunal had no power to terminate the agreement. This possibility was not discussed.
87Secondly, s 64(4) did not create a state of satisfaction as a condition precedent to the exercise of the power, but only matters to be considered. Accordingly, his Honour's conclusions cannot stand on the basis which he identified.
88There are further difficulties. His Honour accepted that it was open to the Tribunal to characterise the breach of lease by the plaintiff as "serious, this being a normative assessment on which minds might differ": at [57]. He then held that there was no evidence before the Tribunal that:
(a) any drugs were on the premises other than on the specific occasion when the police attended - at [59];
(b) the premises had been used for the storage of drugs for some time - at [59];
(c) the small quantity of drugs found on the premises could affect persons outside the premises who are tenants of the Corporation - [59];
(d) "there are a large number of other tenants of the landlord who could be significantly affected by the illegal activities occurring in her premises" - at [58];
(e) the conduct of the plaintiff "had the potential for very serious social consequences" - at [58], and
(f) Ms Brennan would be able "to relocate to suitable accommodation at the same locality" - at [60].
89None of these findings was itself a jurisdictional fact, absent which the Tribunal lacked power to terminate the agreement. The relevant jurisdictional fact was the satisfaction of the Tribunal that the breach of the agreement justified termination: s 64(2)(b)(ii). As recently noted by Gummow ACJ and Kiefel J, "the principles applicable where the jurisdictional fact is a state of satisfaction or opinion are traced back to the use by Latham CJ in The King v Connell; Ex parte The Hetton Bellbird Collieries Ltd [1944] HCA 42; 69 CLR 407 of the terms 'arbitrary, capricious, irrational' as well as 'not bona fide' to stigmatise the formation of an opinion upon which a statutory power was enlivened": Minister for Immigration and Citizenship v SZMDS [2010] HCA 16; 240 CLR 611 at [23]. Their Honours continued:
"Subsequently, for the Supreme Court of Canada, Iacobucci J spoke of decision making upon an assumption which had no basis in the evidentiary material or which was contrary to the overwhelming weight of that material, and also of decisions based upon a contradiction in the processes by which conclusions were reached or upon the drawing of inferences which were not properly open. [ Canada (Director of Investigation and Research) v Southam Inc [1997] 1 SCR 748 at 776-777]."
90In that case Crennan and Bell JJ referred to "findings or inferences of fact which were not supported by some probative material or logical grounds", as a basis of jurisdictional error: at [103] referring to Minister for Immigration and Multicultural Affairs v Eshetu [1999] HCA 21; 197 CLR 611 at [147] (Gummow J); Re Minister for Immigration and Multicultural Affairs; Ex parte Applicant S20/2002 [2003] HCA 30; 77 ALJR 1165 at [4] (Gleeson CJ, noting one of the grounds of challenge); and see Minister for Immigration and Multicultural and Indigenous Affairs v SGLB [2004] HCA 32; 78 ALJR 992 at [37]-[38] (Gummow and Hayne JJ). However, their Honours also referred to a line of authority, which included Buck v Bavone [1976] HCA 24; 135 CLR 110 at 118, where Gibbs J referred to the elements derived from Hetton Bellbird and added the possibility of manifest or Wednesbury unreasonableness constituting a sufficient ground for jurisdictional error: at [122]; see also Abebe v The Commonwealth [1999] HCA 14: 197 CLR 510 at [116] (Gaudron J).
91After consideration of the various discussions of similar issues in Australian authority, their Honours held at [130]:
"In the context of the Tribunal's decision here, 'illogicality' or 'irrationality' sufficient to give rise to jurisdictional error must mean the decision to which the Tribunal came, in relation to the state of satisfaction required under s 65 [of the Migration Act ], is one at which no rational or logical decision maker could arrive on the same evidence. In other words, accepting, for the sake of argument, that an allegation of illogicality or irrationality provides some distinct basis for seeking judicial review of a decision as to a jurisdictional fact, it is nevertheless an allegation of the same order as a complaint that a decision is 'clearly unjust' or 'arbitrary' or 'capricious' or 'unreasonable' in the sense that the state of satisfaction mandated by the statute imports a requirement that the opinion as to the state of satisfaction must be one that could be formed by a reasonable person. The same applies in the case of an opinion that a mandated state of satisfaction has not been reached. Not every lapse in logic will give rise to jurisdictional error. A court should be slow, although not unwilling, to interfere in an appropriate case."
92The established principle with respect to the high bar for intervention required by reference to manifest unreasonableness was affirmed in Minister for Immigration and Citizenship v SZJSS [2010] HCA 48; 85 ALJR 306.
93As this Court has noted in the past, there is a link between illogicality and the "no evidence" principle: see Amaba Pty Ltd v Booth [2010] NSWCA 344 at [23]:
"Implicit in the statement that there is no evidence to 'support' a particular finding, is the characterisation of a relationship between the evidence and the finding. It is the same relationship inherent in the concept of "relevance", on which the laws of evidence depend. That relationship depends on a process of reasoning which must be logical or rational. Thus, evidence is relevant which, if accepted, 'could rationally affect (directly or indirectly) the assessment of the probability of the existence of a fact in issue in the proceeding': Evidence Act 1995 (NSW), s 55(1). As explained by Gleeson CJ, Heydon and Crennan JJ in Washer v Western Australia [2007] HCA 48; 234 CLR 492 at [5]:
'The word 'rationally' is significant in this context. In order to establish relevance, it is necessary to point to a process of reasoning by which the information in question could affect the jury's assessment of the probability of the existence of a fact in issue at the trial.'"