[2024] NTCA 10
General information, not legal advice.
Court of Appeal (NT)
2024-12-24
Huntingford JJ
Original judgment source is linked above.
APPEAL - Residential tenancies - Habitability of residential premises - Statutory meaning of 'habitable' - Reach of the concept of habitability - Whether the requirement of habitability is confined to the premises - Implied term in s 48(1)(a) that the landlord must ensure habitability of premises - Proper construction of the implied term - For premises to be other than habitable they must be not reasonably suitable for occupation for residential use in that condition whether by reason of safety, health or reasonable comfort - Whether the landlord's obligation requires strict/absolute liability or only 'reasonable steps' - Landlord has an obligation to take 'reasonable steps' - Assessment of whether 'reasonable steps' have been taken requires a multifactorial analysis - Matters relevant to that assessment are yet to be determined - Matter remitted for reconsideration in accordance with this Court's judgment - Appeal dismissed.
NOTICE OF CONTENTION - Whether the NTCAT failed to consider or evaluate the central and undisputed evidence of the relationship between the tenants and third party supplier of water - Evidence relied upon was neither pertinent nor contradictory - Evidence relied upon did not require weighing or preference - NTCAT did not ignore, overlook or misunderstand the materials relied upon or arguments made by the tenants - Notice of contention dismissed.
Power and Water Corporation Act 1987 (NT) ss 14A, 29, 32, 133.
Collins v Hopkins [1923] 2 KB 617, Jack v Chief Executive Officer (Housing) (No 2) [2021] NTSC 81, Minister for Immigration and Border Protection v MZYTS (2013) 230 FCR 431, Northern Sandblasting Pty Ltd v Harris [1997] HCA 39; (1997) 188 CLR 313, Plaintiff M1/2021 v Minister for Home Affairs (2022) 275 CLR 582, Chief Executive Officer (Housing) v Young [2022] NTCA 1, referred to.
Respondent: Australian Lawyers for Remote Aboriginal Rights
Chief Executive Officer (Housing) v Pepperill & Ors [2024] NTCA 10
(a) the cause of there being a risk of injury to health in the premises emanates from a third party or 'external provider'; > > (b) questions of health and safety are determined by reference to a standard of reasonableness that has determinative regard to who or what, other than the landlord, might be responsible for a risk of injury to health for those resident in the premises.
The Court below misinterpreted s 48(1)(a) of the [RTA] in determining, especially at paragraphs [43]-[45] and [47] of the Reasons, that the quality and safety of the water supplied by the [PWC] to the premises fell within the scope of the landlord's obligation under that section.
(a) If running water were not supplied to the tenants' residences, the residences would not be habitable because they would not provide the applicants with 'reasonable comfort' in the Central Australian climate, citing Chief Executive Officer (Housing) v Young [2022] NTCA 1 ('Young') at [47]-[50].
(b) The CEOH's obligation under s 48(1)(a) thus requires that it ensure that running water is supplied to the residences.
(c) Water is supplied to the residences by the PWC (through its subsidiary, IES).
(d) The CEOH knows, or must be taken to know, that water is supplied to the residences by the PWC (or a subsidiary). Water is supplied with the consent, express or implied, of the CEOH.
(e) It follows from these propositions that the quality of the water which the CEOH permits to be supplied to the residences is a habitability issue because it would make no sense if the CEOH were not required to ensure that the water supplied is safe to drink. That is a matter of 'health and safety' as it bears on habitability.
(f) The objective standard of reasonableness applied to the criterion of comfort or reasonable comfort in Young was incorrectly applied by the NTCAT to this criterion of 'health and safety', although it may still be relevant to determining the measures required to minimise or eliminate a real or potential risk, if one is identified.
Section 48 of the RTA
(1) It is a term of a tenancy agreement that the landlord must ensure that the premises and ancillary property to which the agreement relates:
(a) are habitable;
(b) meet all health and safety requirements specified under an Ac that apply to residential premises or the ancillary property; and
(c) are reasonably clean when the tenant enters into occupation of the premises.
(2) It is not a breach of the term specified in subsection (1) if the failure to comply with the term is caused by:
(a) an act or omission of the tenant; or
(b) the tenant's failure to notify the landlord of repairs required to the premises.
'Habitable' includes both health and safety and reasonable comfort
'Habitable' - Is the term confined to the premises or does it extend beyond?
Was there an actual and appreciable risk to the tenant, his family or household, by entering and occupying the house in which the infectious disorder had occurred? If the risk be serious, no one, I think, could doubt that the tenant may renounce. But in dealing with bacilli which may mean illness and death, I think further that an appreciable measure of actual risk justifies the tenant in throwing up his contract. A man should not be called on to expose his wife and children, household and himself to peril.
Amongst the matters to be considered are the nature of the disease; the degree and persistence of its infectivity; the date when the sufferer resided in the house; the steps taken to prevent risk of infection and the like.
...[I]t is impossible to confine the words of the section to an unfitness for human habitation due to structural defects in a house itself, or to defective internal physical conditions in a house itself. I think that those words include an unfitness due to external causes, such as want of ventilation, noxious effluvia, &c.
Can a house be, within the meaning of the section, 'unfit for human habitation' for a reason extrinsic to itself; for example, because neighbouring buildings preclude the access of air and impair its proper ventilation? It was argued that a building could not be unfit for human habitation within the meaning of the section unless it was in itself, and without reference to surrounding circumstances, so unfit. I agree with the Court of Appeal that this construction cannot be maintained. The sole question in every case is whether the house is as a fact unfit for human habitation, and not in any case the cause of the unfitness.
The section enables the [council] to declare a building to be 'not fit for human habitation' and thereupon to make its habitation an offence for which a heavy penalty may be imposed. It does not say from what causes the unfitness must arise. It does not specify who, if anybody, must be to blame. It is concerned with the building. ... Public health is the matter in hand, and public health seems to demand that a building which is in fact unfit to be inhabited should not be inhabited, whatever be the cause and whosesoever the blame. ... There is nothing [in the preamble nor the Act's other sections] to confine the unfitness for habitation to unfitness due to something in the state or the construction or condition of the building itself, and I do not see why we should supply this. Why are we to suppose that the Legislature meant this concrete question to be considered in the abstract, as if the building stood in the midst of an imaginary desert and not in a particular street in a populous city?
Is the landlord's obligation one of strict/absolute liability or one requiring reasonable steps?
... The appellants stressed the presence of the term 'must ensure'. However, the requirement is one of ensuring safety 'so far as is reasonably practicable'. The requirement applies to matters which are within the power of the designer to perform or check, such as ascertaining what use the structure will be put to, what loads it will experience when being built and the nature of the location in which it is to be erected. This is in contrast to the matters that would be forced within the ambit of this requirement were the submissions for the appellants accepted; for then a designer would be required to take account of factors outside the power of the designer to control, supervise or manage, such as the procedures to be adopted during construction.
Conclusions as to 'habitable' and the landlord's duty under s 48(1)(a)
The decision of the Supreme Court appealed from
...[A] landlord may bear responsibility for the quality of water and other utilities under the concept of habitability. ... [E]xamples of where this may occur [is] a landlord's provision of water from a tank.
Another example ... might be where a landlord such as the [CEOH] accepts some responsibility, de jure or de facto, in the context of a residential tenancy arrangement, for the supply of water by an external entitle such as the [PWC]. However, on the evidence before us that is not the case here.
The Court is entitled to take the reasons of the Tribunal as setting out the findings of fact the Tribunal itself considered material to its decision, and as reciting the evidence and other material which the Tribunal itself considered relevant to the findings it made ... Representing as it does what the Tribunal itself considered important and material, what is present - and what is absent - from the reasons may in a given case enable a Court on review to find jurisdictional error ...
... The Tribunal's reasons disclose no process of weighing evidence and preferring some over the other. In the context of two or more pieces of apparently pertinent, but contradictory, evidence an expression of a preference for some evidence over other evidence generally requires an articulation of the different effects of the evidence concerned, and then some indication as to why preference is given. All these are matters for the trier of fact. The absence from the recitation of country information of the material referred to in the post-hearing submissions is indicative of omission and ignoring, not weighing and preference.
None of the preceding analysis detracts from, or is inconsistent with, established principle that, for example, if review of a decision maker's reasons disclose that the decision maker ignored, overlooked or misunderstood relevant facts and materials or a substantial and clearly articulated argument; misunderstood the applicable law; or misunderstood the case being made by the former visa holder, that may give rise to jurisdictional error. [citations omitted]
The Company recognises revenue from three major sources being the provision of electricity, water and sewerage services to 72 remote communities and 79 outstations. The Company also receives operational recurrent grant funding from the Northern Territory Government to supplement the revenue that the Company generates through the sales of electricity, water and sewerage services to remote communities.
[1] Those provisions permit the NTCAT to 'make any other order it considers appropriate' despite the fact that a specific order is sought by the applicant (s 64) and to impose conditions on its decision and to make an ancillary order or direction the NTCAT considers appropriate for achieving the purpose for which the NTCAT may exercise the power to make a decision (s 67).
[2] The reasons of the Supreme Court refer only (at [3]) to the first order sought by the tenants. The tenants' applications to the NTCAT are not before this Court. That the tenants also sought an order for compensation is confirmed in the NTCAT's decision in Various Applicants from Laramba v Chief Executive Officer (Housing) [2020] NTCAT 22 at [6].
[3] Various Applicants from Laramba v Chief Executive Officer (Housing) [2020] NTCAT 22.
[4] Various Applicants from Laramba v Chief Executive Officer (Housing) [2022] NTCAT 3 at [12], [44].
[5] Amended Notice of Appeal filed on 14 June 2024.
[6] The heading to the section is part of the Act: s 55(2)(a), Interpretation Act 1978 (NT).
[7] This is effectively an amalgam of the passage from Woodfall, Landlord and Tenant 28th ed, [1-1477] cited with approval at [42], and the passage from Finn v Finato [2004] NSWCTTT 179, cited with approval at [43].
[8] Citing Hall v Manchester Corporation (1915) 84 LJ Ch 732 at 743 per Sumner LJ.
[9] Adopting the test expressed by McCardie J in Collins v Hopkins.
[10] Section 14A(1)(a) and (c), Power and Water Corporation Act 1987 (NT).
[11] Sections 29, 32, 133(2)(d), Power and Water Corporation Act 1987 (NT).
[12] See Various Applicants from Laramba v Chief Executive Officer (Housing) [2022] NTCAT 3 at [59], referred to by the Supreme Court at [21].
[14] See Jack v Chief Executive Officer (Housing) (No 2) [2021] NTSC 81 at [36], [43]-[45] per Grant CJ.
Chief Executive Officer (Housing)
Pepperill & Ors [2024] NTCA 10
(2013) 230 FCR 431
(1997) 188 CLR 313
(2022) 275 CLR 582
(2020) 276 FCR 415
(2001) 205 CLR 304