BACKGROUND
15As stated above at [9], the lane was shown in the original William McMillan's subdivision in 1871. More recent subdivisions excluded the lane. The destiny of the relevant adjoining lots in the original subdivision has been as follows:
(a)Lot 5 adjoined the northern side of the lane and today is 4 Birchgrove Road (Lot 5 DP 627925), which is used as a private residence. The applicant purchased it in 1989. Its front and back doors both open onto the lane.
(b)Lots 1, 2 and 3 adjoined the southern side of the lane. Today those parts of Lots 1 and 2 adjoining the lane are known as 2 Birchgrove Road (Lot 1 DP 770676), which is used as a private residence. Its side door opens onto the lane.
(c)The balance of Lots 1 and 2 together with Lot 3 are today known as 415-417 Darling Street (Lot 1 DP 82923), which is located on the corner of Birchgrove Road. Since 1996 it has been used as a boarding house and retail shops. There is a fence between the rear of the original Lot 3 and the lane.
(d)The lane terminated at the rear of Lot 4, which today is known as 427 Darling Street and (Lot 4 DP 111215) is used as a garden centre. There is a mesh gate between 427 Darling Street and the lane.
16James Ryan owned 4 Birchgrove Road from 1909 to 3 February 1925 when he sold it to Charles and Emily Chegwidden. On 3 February 1925 Mr Ryan wrote the following letter to them:
"In consideration of your settling this matter I undertake and agree when called upon by you at my expense to remove the fence and gateway on the north eastern side of the lane 12 foot wide shown upon the above Certificate of Title such lane having been originally laid out as appurtenant to Lots 1, 2, 3, 4 and 5 Deposited Plan No 558. I also admit that such fence and gateway were originally erected by me to prevent nuisances and undesirable persons using the said lane."
17No building was erected on Lot 4 until 1929/30 according to a 2010 council report, which I accept.
18In 1936 deposited plan 82923 was registered. It effected a re-subdivision of Lot 3 and parts of Lots 1 and 2 of William McMillan's subdivision. In 1982 deposited plan 627925 was registered. Both plans show "gates" across the entrance to the lane at Birchgrove Road. The 1982 plan also shows gates across the boundary between the lane and 427 Darling Street, which it describes as a bike shop, and a garage at the rear of 4 Birchgrove Road abutting the lane. That garage is not there today.
19The weight of the evidence favours the conclusion that gates in one form or another have been across the entrance to the lane since at least some time between 1909 and 1925 when they were erected by the then owner of 4 Birchgrove Road, and have been maintained and sometimes replaced by the various owners of 4 Birchgrove Road. Evidence pointing to this conclusion includes the 1925 letter from Mr Ryan; DP 82923 registered in 1936 and DP 627925 registered in 1982, which both show gates; and the evidence of Mr Williams, Mr Gunning and Mr Hood that gates were there (and were replaced) at various times between the 1940's and the 1980's when the applicant purchased 4 Birchgrove Road with gates in place. I have taken into account the evidence of Mr Hamilton and Mr Large who could not recall gates being there when they moved into the area in the 1960's, the latter stating that if they were there they were left open.
20The land comprising Lots 1 and 2 in the original subdivision were used as a skating rink from 1888 to 1929, and as a manufacturing confectionery establishment from 1925 to 1929. It was then used for a time as a dance hall, and later as a cinema. The cinema was demolished in about 1959 and a service station erected, which was demolished in the 1990's. A boarding house and retail shops were opened in 1996.
21In 1949 the council approved the construction of a garage on and at the rear of 427 Darling Street to be used in connection with a plumbing business there. In 1973 the council granted development consent to use 427 Darling Street for the sale of trees, plants and garden equipment. The plan accompanying the development application shows a loading and unloading section at the rear of 427 Darling Street and access thereto via the lane from Birchgrove Road. A condition of the development consent requires that all loading and unloading in connection with the premises shall be carried out wholly within that property. The consent states that the approval is otherwise in accordance with the particulars and information set out and described in the development application. In fact, the rear section of 427 Darling Street has been structured such that today it cannot be used for loading and unloading from vehicles within that property.
22On 30 May 1984 the council received a letter from the then owners of 2 and 4 Birchgrove Road, Mr Watters and Mr Gunning. They complained that the use of the lane by heavy trucks serving the garden centre at 427 Darling Street had regularly damaged their houses, the entrance gates and the apron to Birchgrove road; caused the lane to subside; and broken up the pathway adjacent to No 4 in the lane. They requested the council to impose a load limit or, alternatively, sell the lane to those owners.
23This prompted an internal memo between council engineers dated 20 August 1984. A handwritten note thereon referred to the gate to Birchgrove Road and to "doubts as to public road status", and proposed perusing council files and engaging a Mr Higgins (a registered surveyor) if required.
24A letter of advice from Mr Higgins, registered surveyor, to the council dated 9 October 1984 records council's instructions to investigate the status of the lane. Mr Higgins advised the council as follows:
"From investigation of Roll plan No 558 being the original Subdivision plan prepared in 1871, it would appear that it was the intention to create a laneway giving rear access to properties fronting Darling Street. Since that date more recent Subdivisions have occurred and all have excluded the laneway. Primary Application plans made either side namely DP 82923 and DP627925 show this laneway. There is evidence to indicate the laneway was blocked and not available to the public in 1936. Again, in 1982 gates are shown across the laneway and it is my opinion that the public have not had access to this laneway for many years and as such it is my opinion that it would not be Council's responsibility for the maintenance of the laneway.
Being Old System land it is quite possible that should any adjoining property have proof they have occupied and used the lane for many years, there may be some claim as to ownership."
25On 17 October 1984 the council replied to the letter from Mr Watters and Mr Gunning as follows:
"The Council is now in receipt of advice from a consultant surveyor who has carried out a search at the Registrar General's department in respect of the ownership of the land in question.
Based on this advice and on the physical conditions evident on site, the land could not be considered to be public road and thus is not the responsibility of the Council.
The land is Old System land and is a residue from an original subdivision which occurred in 1871. The surveyor has advised that, subject to proof of occupation and usage, there may be some claim to ownership by you and/or your neighbour."
26On 27 December 1984 Mr Watters wrote to the council complaining about trucks breaking up the footpath as they reversed into the lane. The letter acknowledged that the council may not have responsibility for the lane itself but expressed the opinion that the council was responsible for the footpath.
27Council internal notes in January 1985 noted a council officer's recommendation that the "owners" of the right of way be charged for the cost of a crossing but stated that the cost of collecting from the "owners" is likely to be high. The council notes recommended that the council continue to repair the crossing; noted that the crossing was used by 427 Darling Street for soil deliveries twice weekly and by 4 Birchgrove Road for car access to a garage; and stated that "ownership is indeterminate".
28In January 1989 the applicant completed her purchase of 4 Birchgrove Road from Mr and Mrs Hood.
29A pre-purchase inspection report obtained by the applicant in 1988 recorded that the wall of No 4 adjacent to the lane had been extensively cracked and had recently been underpinned and that this was brought about by the compaction of the soil adjacent to the footings by heavy vehicles using the lane.
30Before the applicant purchased her property, Mr Hood told her that the owners of No 4 had always maintained the gates across the lane and parked their car in the lane. He also told her that trucks supplying the garden centre at 427 Darling Street had driven up the lane causing damage to No 4; that he had shown a report of the damage to a proprietor of the garden centre and threatened legal action if the proprietors did not stop vehicles driving up the lane; that the proprietors stopped the trucks; and that the applicant had installed a lock on the gates and allowed the proprietors of 427 access only through the smaller gate. Since the applicant has owned No 4, no vans or trucks have driven up the lane.
31The front door of 4 Birchgrove Road opens from the hall directly onto the lane. Towards the end of the lane is the back door of No 4, which allows access to its back garden. The back door is used by the applicant's elderly parents as the entrance to their separate living area. Many years ago, before the applicant purchased No 4, it had an entrance facing Birchgrove Road, which was used by students attending there for music lessons. It ceased to be used for that purpose and ceased to be accessible from Birchgrove Road due to the construction of a brick front fence. It otherwise now appears to be inaccessible or difficult to access as a front entrance due to the location of rooms across the front of the house.
32When the applicant purchased her property, the surface of the lane was gravel and dirt with some pots and plantings along No 4's side of the lane; and there was a footpath to No 4's back door. The laneway got very wet when it rained.
332 Birchgrove Road has a frequently used side entrance to the lane, opposite No 4's main entrance. No 2 has a drainage/sewer access point on the pathway in the lane near its side entrance.
34When the applicant purchased 4 Birchgrove Road there were two gates, with a lock, across its entrance. The narrower of the gates had the appearance of a pedestrian access gate. She maintained the gates and replaced them in about 2008 with two equal sized gates without a lock, with the eventual agreement of the owners of No 2.
35At the end of the lane there is a tree on the southern side, which was there before the applicant purchased No 4. At the end of the lane, 427 Darling Street has paved a relatively small area where some of its garden supplies are sometimes stored, on the southern side opposite where No 4 puts its bins. Garden supplies are delivered to 427 Darling Street by trolley over the path through the lane, except that supply vans park in the entrance to the lane when the applicant's car is not parked there.
36The applicant has always parked her car in the lane just inside the gates, and close to the No 2 house so that she can get out of the door. The car occupies two thirds of the lane. It is possible to pass on foot by the car on the No 4 side, including with a trolley for delivery of supplies to the rear of the garden centre at 427 Darling Street. Until four years ago, the applicant worked full time, drove her car every day and parked her car in the lane overnight and at weekends. Since 2008 she has worked part time and her car remains in the lane during the day if she is not using it. When requested, she has moved her car to allow access to No 2 or to 427 Darling Street by tradespersons or, in the case of No 2, when they had guests.
37The current owners of 2 Birchgrove Road purchased it in 2001. After the purchase, the applicant told them that No 4 would be parking in the lane ; that she was not prepared to negotiate on that point; that she would like to continue the previous arrangement of Nos 2 and 4 maintaining the garden on their respective sides of the lane; and that she would move No 4 cars temporarily if No 2 needed access. It appears that for a few years after 2001 when the current owners of No 2 purchased that property, No 4 sometimes parked a second car in the lane projecting onto the pavement. This prevented the gates from being shut and made side access more difficult for No 2. There were several exchanges or altercations between the applicant and an owner of No 2 about the parking of two cars before that practice ceased.
38Before the applicant purchased 4 Birchgrove Road, her husband inspected the council file including council's letter of 17 October 1984: see [25] above. The letter gave him a lot of comfort. Before the purchase, he told his wife that he had inspected the council file. He recalled in evidence telling her on this occasion that there was a council letter on the file saying that the lane was not a public road and therefore not the responsibility of the council. Her recollection in evidence was that he said he saw a 1984 letter from the council on its file and that council appeared to have no interest in the lane.
39By letter dated 21 May 1991 to the council, the applicant, in objecting to a development application for a boarding house, unit and shops at 415-417 Darling Street, said that she understood the lane "is not public" and that:
"I have seen a letter from Council to a previous owner where Council indicates that the lane is not public. When I bought No 4 I took great comfort from this letter, that people would not be able to drive up and down the lane and walk through it as if it was a public thoroughfare."
40This "letter from council to a previous owner" was the letter of 17 October 1984 to Mr Gunning and Mr Watters referred to above at [25]. I note that the applicant wrote, and I accept, that she took "great comfort" from this letter when she bought her property. So did her husband during his pre-purchase inspection on her behalf: see [38] above. The applicant's letter also said that for a long time, long before she bought 4 Birchgrove Road, the lane has had gates on it.
41On 12 December 1991 the applicant wrote to the council stating that since she wrote her objection to the proposed development of 415-417 Darling Street, she had considered her position in relation to the lane. She wrote:
"It appears that this strip of land is enclosed within my land. As this strip of land was left in a private subdivision either the "ad medium filum rule" applies and I own the land, or it is still owned by the original subdivider (and successors in title) and it cannot be used without my consent or their consent."
42On 23 December 1991 the council replied by letter as follows:
"Council records indicate that the lane does not form part of your title and ownership of the lane is vested with Council.
Should you have evidence to the contrary this evidence should be made available to Council. This would enable Council to accurately review the ownership of the lane in relation to the development application (DA 133/91 - 415-417 Darling Street) currently being considered.
A similar request has been made to the owner of 2 Birchgrove Road."
43The applicant's husband spoke to the author of that council letter and said he believed the lane was private. The council officer replied:
"Council has no real interest in the lane. We'll leave it at that then."
44The applicant's husband was greatly comforted and passed on this information to the applicant.
45In 1993, pursuant to a 1991 arrangement between the applicant and the then owners of 2 Birchgrove Road, the lane was extensively landscaped. The applicant laid bricks across the width of the entrance where she parked her car and made a meandering brick pathway up the centre of the lane to the applicant's back door. In addition, the owners of 2 and 4 Birchgrove Road planted garden beds on their respective sides of the lane, which they have since maintained. The planting by No 2 has included several magnolia trees. The applicant has spent $12,000 - $15,000 in maintaining the lane since purchasing her property. No 2 has spent over $5,000 on garden maintenance of the lane. At the end of the lane and adjacent to No 4, the applicant has located a small storage shed, garbage bins and a compost bin. No 2 also places garbage bins on its side.
46In 1993, after the lane had been paved and landscaped by the owners of 4 and 2 Birchgrove Road, a proprietor of the garden centre at 427 Birchgrove Road remonstrated with the owners of 2 Birchgrove Road that it was unfair, that they all had equal access, and that her business would suffer considerably. That proprietor could not obtain a satisfactory answer from a council officer as to who owned the lane. The officer told her it was an equal access lane and did not appear to be owned by anyone. The proprietor arranged for supplies to the garden centre to be wheeled by trolley or wheelbarrow to the rear of the garden centre premises. Sometimes the suppliers would reverse their truck as far as possible into the lane. The then owners of 2 Birchgrove Road tried to restrict suppliers' vans from using the lane.
47On 7 September 1993 the council received a letter from the builders of the boarding house at 415 Darling Street recording that they had sought to connect to the Water Board sewer in the lane but were denied access by the residents of 4 Birchgrove Road. On 10 September 1993 the council replied to that letter as follows:
"From investigation it would appear that the laneway is owned by Council. Investigation of roll plan No 558 being the original subdivision plan prepared in 1871, it would appear that it was the intention to create a laneway giving rear access to properties fronting Darling Street. Since that date more recent subdivisions have occurred and all have excluded the laneway. Primary application plans made either side, namely DP 82923 and DP 627925 show this laneway. There is evidence to indicate the laneway was blocked and not available to the public in 1936. Again, in 1982, gates are shown across the laneway.
Being old system land it is quite possible that should any adjoining property have proof they have occupied and used the land for many years, they may have some claim as to ownership.
In 1991, Council wrote to the owners No's 2 and 4 Birchgrove Road stating that if they had evidence disputing Council ownership then Council would consider this evidence and make an accurate review of the lane ownership. No further correspondence was received and the matter has rested unsettled until now, and therefore ownership of the lane would still be seen as being vested with Council."
48On 3 July 2001 the council wrote to a real estate agent referring to council's 1993 letter and stating:
"The land in question appears to form part of an Old System sub-division. It has apparently been enclosed as an adjunct to private holdings for many years, and as advised by Council in the above letter, it appears that the private owner(s) may form a claim to ownership. Council's letter was not responded to at the time and the matter has remained unresolved.
To accurately determine title to the subject land and any rights of access your client may have, it is recommended that a professional title search be undertaken."
49On 22 November 2001 the new owners of the garden centre at 427 Darling Street wrote to the council. They referred to the council's letter of 10 September 1993; stated that the lane was blocked and not available for public access to the rear of their property; and requested the council to take action to restore the lane to its proper use.
50On 25 January 2010 the owners of the garden centre at 427 Darling Street again wrote to the council. They stated that they occasionally used the lane to trolley goods for customers and that soil and pot deliveries are made there; stated that the neighbours at 4 Birchgrove Road had used it as a parking space and had gates across it; put that it was public land; and requested council to review the situation. They also noted that 4 Birchgrove Road had just erected a new gate. They enclosed an earlier sales advertising brochure for 427 Darling Street, which said it had a right of way to Birchgrove Road.
51On 10 May 2010 the council's solicitors wrote to the applicant requesting information within 28 days which might help them determine the status of the lane. On 28 May 2010 the applicant replied stating that she had always thought the land was private and that she would do her best to provide a full response within the stated time. She provided the full response by letter dated 7 June 2010 in which she stated that, in the circumstances, there would be a presumption that the lane is owned by the adjoining owners. Correspondence ensued between the solicitors for the parties.
52In December 2010 a council report concerning the lane summarised its history and those of surrounding properties along the lines set out earlier. The council report set out ss 16 and 17 of the Roads Act and continued as follows:
"Application of the law to this problem
The first leg of process is met by the original plan of subdivision showing the land as "lane" and is so identified on most maps of the area including Council's GIS. The next is to demonstrate public usage as there is no evidence that Council has ever maintained the land.
Despite considerable efforts, no evidence has been found that the lane was used by the public prior to 1936 (being the date of the first DP indicating gates at the end of the lane). It is not known who erected the gates (the then owners of 427 Darling St or 4 Birchgrove Rd) and for what purpose or how long the gate remained in position after 1936. Given a person who was 10 in 1936 would be 84 now, its probably not surprising that no evidence of earlier use can be found.
Several local residents state that there were no gates on the lane from about 1949 until about the late 1970s when the then owner of 4 Birchgrove Road constructed a two storey addition at the rear of that dwelling and erected a gate at the Birchgrove Road end of the lane. It appears that a gate has remained at that location since that time.
One local recalls attending at the Kings Theatre which formerly occupied the site at the corner of Birchgrove Road and Darling street and using an exit through a rear side door to a small lane which connected with the lane in question providing access to Birchgrove Road."
53The report's "Conclusion" was as follows:
"In summary:
+ The land between 2 and 4 Birchgrove Road is shown as a lane on all maps published since 1888;
+ Council has issued 2 development consents to 427 Darling requiring access for vehicles off Birchgrove Road and another consent for a garage at the rear of 4 Birchgrove Road all relying [on] the lane for access;
+ There are public services running down the lane requiring ongoing maintenance; and
+ The property owners have been in dispute about the status and use of the lane since at least the 1980s.
In these circumstances it is appropriate that Council resolve the status of the lane by giving notice of an intention to dedicate the lane between 2 and 4 Birchgrove Road as a public road. On gazettal, council can erect no stopping signs to ensure that access to the rear of all three properties (427 Darling Street and 2 & 4 Birchgrove Road) is maintained."
54On 7 December 2010 the council resolved to give notice of intention to dedicate the lane as a public road.
55On 15 March 2011 the council gave the notice required by s 17 of the Roads Act to the "owner" of the lane by the s 254(3) mechanism of affixing the notice to a conspicuous part of the lane. Copies of the notice were forwarded to the owners of 2 and 4 Birchgrove Road and 427 Darling Street.
56In addition to references to use of the lane for "nuisances" and by "undesirable persons" in Mr Ryan's 1925 letter (see [16] above), affidavit evidence in the council's case indicates that there has been public use of the lane as follows:
(a)in the 1940's and 1950's some patrons of the former cinema at 415-417 Darling Street used the lane to access Birchgrove Road when exiting a milk bar attached to the cinema;
(b)Mr and Mrs Large and their daughter, who lived at 13 Birchgrove Road, used the lane from time to time as a shortcut to get to Darling Street from Birchgrove Road in the 1960's;
(c)some customers of the garden centre at 427 Darling Street who lived in the vicinity used the lane as a shortcut to the garden centre. As stated earlier, it has also been used by the garden centre's suppliers.
57From time to time the applicant has applied for and been granted parking permits by the council, on the basis that she had a parking space (in the lane). This has never been queried by the council.
58The council has never maintained or undertaken any capital improvements to the lane.