[2024] VSCA 60
General information, not legal advice.
Court of Appeal (Vic)
2024-04-11
Mr J, Leish JA, Walker JA, MacAulay JA
Original judgment source is linked above.
(a) an order that, if the parties had not agreed on a real estate agent to conduct the sale of the land by 5 August 2021, then a real estate agent is to be selected by the Principal Registrar (the 'Registrar') of VCAT, after the parties had submitted the name or names of real estate agents for the Registrar's consideration (order 4);
(b) an order that, if the parties had not agreed on a solicitor to prepare the necessary documents and conduct the conveyance of the land by 5 August 2021, then a solicitor is to be selected by the Registrar, after the parties had submitted the name or names of solicitors for the Registrar's consideration (order 7);
(c) an order that the reserve price for the sale of the land is to be $2,000,000 or such other price as the parties may agree or, where the parties cannot agree, such other price as reasonably determined by the real estate agent (order 8);
(d) an order that the parties must sign all necessary documents to give effect to the sale and conveyance of the land within 72 hours of receiving written notice to do so from the solicitor and, if they fail to do so, for the Registrar to sign the necessary document 'which shall in all respects be treated as an execution by the party' who failed to execute the document (order 14(a));
(e) an order that the Registrar 'is empowered to give such directions and execute such documents as may in his opinion be necessary or desirable to give effect to' the orders (order 15); and
(f) an order that, if a contract for the sale of the land has not been signed by a party prior to the day of the auction, such contract may be executed on behalf of that party by the real estate agent if the property is sold (order 16).[2]
(a) Mr Djordjevich and Djeka are registered as proprietors of the land.
(b) On 9 July 2002, Mr Djordjevich purchased the land for the sum of $280,000.
(c) In late July 2002, Djeka purchased a half interest in the land.
(d) In 2016, Mr Djordjevich initiated a Magistrates' Court proceeding for the sum of $23,842.73. That proceeding was resolved by a Magistrates' Court judgment of $10,000.
(e) In 2019, Djeka applied to VCAT for orders for the sale of the land. Mr Djordjevich opposed such orders.
(a) whether Mr Djordjevich and Djeka entered into a partnership in or about July 2002;
(b) what Mr Djordjevich and Djeka agreed as to the purchase price of the half interest in the land;
(c) how Djeka became registered on the title of the land;
(d) how Djeka procured Mr Djordjevich's signature to the transfer of land forms for the land;
(e) whether Djeka or its agent committed fraud or unconscionable conduct in relation to Mr Djordjevich;
(f) whether there should be an adjustment to the amount distributed to the parties from the net proceeds of sale for the amounts of outgoings paid by Mr Djordjevich or Djeka;
(g) whether Mr Djordjevich's claim for a contribution for outgoings merged in the Magistrates' Court judgment.
(a) Mr Krickic worked for the real estate agency that had arranged the purchase of the land by Mr Djordjevich. Mr Djordjevich had previously bought a number of properties referred to him by Mr Krickic.
(b) Mr Poljakovic was a builder who, Mr Djordjevich said, had offered to purchase a half interest in the land and redevelop it with Mr Djordjevich.
(a) Mr Djordjevich and Djeka had not entered into a partnership in or about July 2002, because there was no evidence that they had carried on any business in common with a view to profit. Indeed, it appeared that they had not done anything in common, other than co-own the land and share expenses. The Tribunal observed that the mere fact that they owned the land as tenants in common was insufficient to create a partnership.[5]
(b) Mr Djordjevich and Djeka had agreed to a purchase price of $160,000 for the half interest in the land.[6]
(c) On 10 November 2003, six certificates of title were issued to the parties showing Mr Djordjevich and Djeka as the registered proprietors. Each transfer document bore what appeared to be Mr Djordjevich's signature and Mr Djordjevich acknowledged in evidence that the signatures were his.[7]
(d) VCAT accepted that Mr Djordjevich had signed the documents at Mr Krickic's office. It rejected Mr Djordjevich's claim that he thought he was signing a 'heads of agreement' document for the partnership.[8]
(e) VCAT rejected Mr Djordjevich's claim that Djeka had procured the registration of its interest by fraud.[9] As to Mr Djordevich's claim of unconscionable conduct, it was premised on his asserted lack of proficiency in English. The Tribunal implicitly rejected that assertion.[10]
(f) As to whether there should be an adjustment to the amount distributed to the parties to reflect the outgoings paid by either Mr Djordjevich or Djeka, VCAT said that 'most of these alleged payments were made many years ago and, if recovery were now sought by court action, the claim would be statute barred'. Thus the Tribunal concluded that there should be no adjustment of rights by reason of such payments.[11] VCAT further found that the evidence in relation to alleged outgoings by Djeka was unsatisfactory and that was a further reason for not making an order for adjustment in favour of Djeka.[12]
(g) In relation to Mr Djordjevich's claim for a contribution for outgoings, VCAT again observed that most of the claims in question were statute barred. The Tribunal further held that Mr Djordjevich had already received an order from the Magistrates' Court in the amount of approximately $10,000 for contribution to expenses incurred with respect of the land. All of the amounts now claimed were incurred before the date of the Magistrates' Court order, and thus the claim with respect to those amounts had merged in the judgment.[13]
(1) The name of the Applicant is corrected to Peter Djeka Pty Ltd (ACN 057 188 235).
(2) By 16 September 2021, or such other time as the parties agree, the land located at 44A to 44F (both inclusive) Patterson Avenue, Keilor, in the State of Victoria and described in Certificates of Title Volume 10762 Folios 614, 615, 616, 617, 623, 624, 625, 626, 627, 628, 631 and 632 ('the Property'), shall be offered for sale by public auction.
(3) Subject to Order 4 of these orders, the sale shall be conducted by a licensed real estate agent jointly selected by the parties ('the Real Estate Agent').
(4) If the parties have not agreed in writing on the Real Estate Agent by 5 August 2021, then the Real Estate Agent is to be selected by the Principal Registrar who, to the exclusion of the parties, is empowered to give any necessary direction. Each party may submit the name or names of a real estate agent to the Principal Registrar who shall consider such submissions but will not be bound by them.
(5) The Real Estate Agent must conduct the sale using all proper and lawful methods, including advertising as appropriate (whether by board, internet or otherwise) and arranging open for inspection times but not so as to be at an excessive or unreasonable cost.
(6) Subject to Order 7 of these orders, and in order to give effect to the sale of the Property, the parties shall jointly select and appoint a solicitor to prepare all necessary documents and conduct the conveyance of the Property upon sale ('the Solicitor').
(7) If the parties have not agreed in writing on the identity of the Solicitor by 5 August 2021, then the Solicitor is to be selected by the Principal Registrar who, to the exclusion of the parties, is empowered to give any necessary direction. Each party may submit the name or names of a solicitor to the Principal Registrar who shall consider such submissions but will not be bound by them.
(8) The reserve selling price shall be $2,000,000.00, or such other price as the parties may agree in writing upon or, where the parties cannot agree, as reasonably determined by the Real Estate Agent.
(9) The terms of the contract of sale shall provide for a deposit of not less than 10% upon the signing of the contract with the balance to be payable within 60 days, or such other time as the parties agree in writing.
(10) Each of the parties may bid at the auction provided he or it holds a written pre-approval from a financial institution for finance for at least the reserve selling price or otherwise provides satisfactory evidence of an ability to pay an amount equalling the reserve price less the amount that would otherwise be payable to that party under Order l4(b)(v) of these Orders.
(11) Where one of the parties purchases the Property at auction or by private treaty, then the residue payable by that party is to be reduced by the amount that would otherwise be payable to that party under Order 14(b)(v) of these Orders.
(12) The Real Estate Agent shall appoint the auctioneer for the sale.
(13) If the Property is not sold at public auction:
(a) The Property shall be offered for sale by private treaty at a price to be determined by the Real Estate Agent but not less than the reserve price. The sale price and or the reserve price may be varied by written agreement of the parties or by the Real Estate Agent upon giving the parties 72 hours prior written notice of the Real Estate Agent's intention to vary the sale price or the reserve price.
(b) The advertising costs of the auction will become a charge upon the Property.
(14) If the Property is sold:
(a) Each of the parties must sign all necessary documents in order to give effect to the sale and conveyance of the Property (including the Transfer of Land) within 72 hours of receiving written notice to do so from the Solicitor. If any of the parties refuses or neglects to sign a necessary document, or if in the opinion of the Solicitor, it is not practicable to make the necessary request of that party, the Principal Registrar may sign the necessary document which shall in all respects be treated as an execution by the party who has failed or neglected to do so.
(b) The proceeds of sale will be applied as follows and in the following priority:
(i) Payment of the Real Estate Agent's Commission or fee, including the auctioneer's fee and other expenses of the sale;
(ii) The discharge of any registered encumbrance on the Property;
(iii) Payment of any outstanding rates, charges, taxes and imposts which have not already been paid;
(iv) Payment of the reasonable legal costs associated with the sale and conveyance of the Property; and
(v) The net balance shall be paid to the parties in the following proportions:
- (A) Applicant: One half
- (B) Respondent: One half
(15) The Principal Registrar is empowered to give such directions and execute such documents as may in his opinion be necessary or desirable to give effect to these orders.
(16) Where any contract for the sale of the Property by public auction has not been signed by a party prior to the day of the auction, such contract may be executed on behalf of that party by the Real Estate Agent if the Property is sold.
(17) Under s 146(4)(b) of the Victorian Civil and Administrative Tribunal Act 1998, no person other than a party to the proceeding or their legal representatives may inspect the Tribunal's file of this proceeding unless the Tribunal orders otherwise.
(18) Any application for costs must be made in writing to the Registry and served upon the opposite party, together with supporting material, within 21 days of the date of this order, otherwise there will be no order for costs. If such an application is made, the other party must file and serve any opposing material within 14 days thereafter and the matter will be dealt with on the papers.
THE GROUNDS OF APPEAL BELOW, THE PROPOSED GROUNDS OF APPEAL IN THIS COURT, AND THE GROUNDS OF CONTENTION
(1) The grounds of appeal in the Trial Division
(1) The Tribunal misconstrued its powers pursuant to Pt IV of the [Property Law Act] in making the following orders:
(a) an order that the Principal Registrar select the real estate agent;
(b) an order that the Principal Registrar select the solicitor with the care and conduct of the conveyance of the land upon sale; and
(c) an order that the Principal Registrar can give such directions and sign such documents as are in her opinion necessary or desirable to give effect to these orders.
(2) The Principal Registrar's powers to make the following directions are outside of the terms of the rules made pursuant to s 157A of the VCAT Act:
(a) a direction that the Principal Registrar can select the real estate agent;
(b) a direction that the Principal Registrar can select the solicitor with the care and conduct of the conveyance of the land upon sale; and
(c) a direction that the Principal Registrar can give such directions and sign such documents as are in [her] opinion necessary or desirable to give effect to these orders.
(8) The Tribunal erred in law in failing to consider all of the oral and documentary evidence globally or cumulatively in making its findings.
(10) The Tribunal failed to provide proper reasons for the decision and failed to address all of the significant issues before it.
(11) The Tribunal erred in law in holding that there was evidence to reasonably make a finding that Mr Djordjevich's rights to contribution merged in a Magistrate's Court [sic].
(17) The Tribunal erred in law by failing to make a decision as to whether the parties entered into a partnership agreement in or about July 2002.
(21) The Tribunal erred in law in making a decision that the reserve price of the land should be $2,000,000.
(2) The proposed grounds of appeal in this Court
(1) The Primary Judge erred in holding that the VCAT orders that the Principal Registrar may sign any necessary document to give effect to the sale and conveyance of the properties if a party fails or refuses to do so or it is not reasonably practicable to obtain their signature thereto fell within the powers of VCAT pursuant to Part IV Division 2 of the Property Law Act.
(2) The Primary Judge erred in holding that the VCAT order that the Real estate agent may sign the contract of sale if the properties have been sold at an auction and/or determine the reserve price if the parties cannot agree thereupon and/or the sale price in a private sale fell within the powers of VCAT as contained in Part IV Division 2 of the Property Law Act.
(3) The Primary Judge erred in holding that the VCAT orders could empower the Principal Registrar to sign any necessary document to give effect to the sale and conveyance of the properties if a party fails or refuses to do so or it is not reasonably practicable to obtain their signature thereto fell within the powers of VCAT as contained in Part IV Division 2 of the Property Law Act. [14]
(4) The Primary Judge erred in holding that the responsibilities of the Principal Registrar pursuant to the VCAT orders were within the statutory functions thereof to provide administrative support and assistance to VCAT pursuant to s 32 (1) of the VCAT Act.
(5) The Primary Judge erred in holding that the responsibilities of the Principal Registrar pursuant to the VCAT orders were to be classified as administrative in nature.
(6) The Primary Judge erred in holding that the ancillary powers could justify the Principal Registrar acting pursuant to the VCAT orders.
(7) The Primary Judge erred in holding that VCAT addressed all of the relevant and material issues before it.
(8) The Primary Judge erred in holding that VCAT provided adequate reasons for its decision.
(9) The Primary Judge erred in holding that VCAT considered all of the oral and documentary evidence globally or cumulatively in making its findings.
(10) The Primary Judge erred in holding that the claim for all of the outgoings incurred and prior to October 2016 merged in the judgment debt that was obtained in the Magistrates' Court proceeding.
(11) The Primary Judge erred in holding that VCAT considered whether the parties entered into a partnership agreement in July 2002, and/or whether the preparatory steps taken by the parties could constitute a partnership.
(12) The VCAT erred in law in making a decision that the reserve price of the property should be $2,000,000.
(1) The orders made by the VCAT on 28 July 2021 with respect to the Principal Registrar directed the Principal Registrar to perform functions that were within the statutory functions of the Principal Registrar under s 32(2)(a) of the [VCAT Act], conferred under ss 228(1), s 232(h) and/or 232(i) of the Property Law Act.
(2) The power conferred on the VCAT under s 228(1) of the [Property Law Act] is not confined by the statutory functions of the Principal Registrar.[15]
(4) The relationship between the grounds of appeal below and the proposed grounds of appeal in this Court and the notice of contention
(a) Proposed grounds 1 and 2, which concern VCAT's powers, correspond to ground 1 below, although they are narrower in scope.
(b) Proposed grounds 4 to 6, and the grounds of contention, which concern the Registrar's functions, correspond to an argument made in relation to ground 1 below.
(c) Proposed grounds 7, 8 and 9, which concern whether VCAT addressed all of the relevant issues and gave adequate reasons, correspond to ground 8 and ground 10 below.
(d) Proposed ground 11, which concerns whether VCAT considered whether the parties entered into a partnership agreement, corresponds to ground 17 below.
(e) Proposed ground 12, which concerns the setting of a reserve price, corresponds to ground 21 below.
PROPOSED GROUNDS 1 AND 2: DID THE ORDERS FALL WITHIN VCAT'S POWERS?
(1) The judge's decision on VCAT's powers
(1) In any proceeding under this Division, VCAT may make any order it thinks fit to ensure that a just and fair sale or division of land ... occurs.
(2) Without limiting VCAT's powers, it may order -
(a) the sale of the land ... and the division of the proceeds of sale among the co-owners; or
(b) the physical division of the land ... among the co-owners; or
(c) that a combination of the matters specified in paragraphs (a) and (b) occurs.
In any proceeding under this Division, VCAT may order -
(a) that the land ... be sold by private sale or at auction;
(b) that the co-owners may purchase the land ... at that sale or auction;
- ...
(d) in the case of an auction, that the reserve price is the reserve price set by VCAT;
- ...
(h) that the sale and division of the proceeds of sale or the physical division of the land ... is subject to any terms and conditions which VCAT considers necessary or desirable in any particular case;
(i) in the case of land, that any necessary deed or instrument be executed and documents of title be produced or other things be done that are necessary to enable an order to be carried out effectively;
(j) in the case of land to which the Transfer of Land Act 1958 applies, directing the Registrar of Titles to make amendments to the Register within the meaning of that Act or do any act or make any recordings necessary to give effect to an order under this Division.
(a) By proposed ground 1, he challenged VCAT's power to make orders that the Registrar may sign any necessary document to give effect to the sale and conveyance of the properties if a party fails or refuses to do so or it is not reasonably practicable to obtain their signature.
(b) By proposed ground 2, he challenged VCAT's power to make orders that the real estate agent may sign the contract of sale if the properties have been sold at an auction and/or determine the reserve price if the parties cannot agree upon it and/or determine the sale price in a private sale.
There is no power in Part IV Division 2 of the Property Law Act, to make an order in terms of s 22 of the Supreme Court Act 1986 (Vic) (Supreme Court Act) that if a person fails or refuses to comply with an order to execute a document that the court may order that the document be executed by a person nominated by it. The power to make such an order is absent from Part IV Division 2 of the Property Law Act. The appropriate procedure was to enforce the order in the Supreme Court of Victoria which would be taken to be an order of the Supreme Court, and to make an application for an order pursuant to s 22 of the Supreme Court Act.
...
The Primary Judge conflated the issues of making orders and the enforcement thereof, and misconstrued Part IV Division 2 of the Property Law Act, which dealt with the former and not the latter. The VCAT had the powers to make orders, but orders have to be enforced, which had to be undertaken by the Supreme Court, as VCAT was not given the power to enforce its orders. [Section] 232(i) of the Property Law Act gives VCAT the power to make an order for the execution of any necessary documents, which is directed at the parties, because, otherwise the necessary documents would have no effect. Even if VCAT could order the Principal Registrar to execute the necessary documents, that will have no force or effect without the power that the executed documents operate and is for all purposes to be treated as if executed by a party.
These submissions were made in relation to both proposed grounds 1 and 2.
The VCAT cannot delegate its powers on the reserve price at an auction or the sale price in a private sale, or have a real estate agent sign the contract of sale (which the Plaintiff denies that VCAT has any of these powers) to a third party. In Auslong v Morey [2021] VSC 250 Croucher J said at [151] 'Section 232 allows VCAT to make orders concerning the methods, timing and costs of sales, purchases by co-owners, independent valuations and the terms of sale and division of the proceeds of sale.'
(a) Orders 8 and 13(a), which authorise the real estate agent to set a reserve price or a price in a private sale, were submitted to fall within the scope of s 232(h), because they constituted terms or conditions that VCAT had found it necessary or desirable to impose.
(b) Orders 14(a) and 15, which authorise the Registrar to execute documents, and order 16, which authorises the real estate agent to execute documents, were submitted to fall within the scope of s 232(i).
(a) Section 130(1) of the VCAT Act gives VCAT the power to make an order or decision subject to 'any conditions or further orders that the Tribunal thinks fit', which includes, pursuant to s 130(2)(e), 'a condition or order necessary or desirable to give effect to an order or other decision'.
(b) Section 232 of the Property Law Act confers specific powers on VCAT to enable it to make orders to give effect to orders made under part IV div 2. One example, in s 232(j), is a power to direct the Registrar of Titles to amend the Register under the Transfer of Land Act 1958 'to give effect to an order under this Division'.
The Attorney-General submitted that it follows that the permissive provision in s 122 of the VCAT Act ought not be construed so as to read down VCAT's broad discretion under s 228(1) of the Property Law Act to make ancillary orders to ensure a just and fair sale or division of land occurs.
Execution of instruments by order of Court
(1) If a person fails or refuses to comply with a judgment directing that person to execute a document or indorse a negotiable instrument, the Court may, on such terms and conditions as it considers just, order that the document be executed or that the instrument be indorsed by a person nominated by the Court.
(2) A document or instrument executed and indorsed under subsection (1) operates and is for all purposes available as if it had been executed or indorsed by the person originally directed to do so.
(a) section 130 of the VCAT Act permits VCAT to make orders containing conditions that are 'necessary or desirable to give effect to' another order;
(b) section 232(i) of the Property Law Act confers power on VCAT to direct that documents be executed or other things be done that are 'necessary to enable an order to be carried out effectively';
(c) section 232(j) of the Property Law Act confers power on VCAT to direct the Registrar of Titles to make amendments to the Register of land.
Co-owned property can be sold or divided with the agreement of all the co- owners. However, if co-owners disagree or a co-owner cannot agree to sell because he or she is not an adult or lacks legal capacity, a process is required to authorise sale or division.
...
Concern about the formality, expense and delay of requiring these matters to be heard in the Supreme or County courts was evident in submissions received by the Victorian Law Reform Commission.
...
This bill repeals and replaces part IV to address these concerns. The proposed bill will transfer jurisdiction over co-ownership disputes from the Supreme and County courts to the Victorian Civil and Administrative Tribunal (VCAT). ...
The bill provides VCAT with the power to provide flexible remedies to address the issues that arise in these disputes.[26]
The reason that the Supreme Court's jurisdiction to hear disputes between co-owners is limited is to ensure that these disputes can be dealt with in a more accessible and affordable forum for dispute resolution.[27]
PROPOSED GROUNDS 4 TO 6: DID THE ORDERS CONFER ON THE REGISTRAR PERMISSIBLE FUNCTIONS?
Employment of registrars and other staff
(1) To assist in the administration of the Tribunal there are to be employed under the Public Administration Act 2004 -
(a) a principal registrar; and
- * * * * *
(c) as many registrars and other staff as are necessary.
(2) The principal registrar -
(a) has the functions conferred by or under this or any other Act and the rules; and
(b) in carrying out those functions, is subject to the direction of the President.
(3) A registrar other than the principal registrar has, subject to the direction of the principal registrar, all the functions of the principal registrar.
(1) The judge's decision on the Registrar's functions
(a) administrative functions and powers;
(b) statutory functions and powers;
(c) Tribunal member functions and powers that may be exercised by the Principal Registrar; and
(d) implied or incidental powers.[29]
The respective functions of a real estate agent and of a solicitor in respect of the sale of land are fundamentally of an administrative, and not quasi-judicial, character. They can be expected to continue on an almost daily basis over a number of months until the property is sold and settled. It is essential that those functions be performed if orders for the sale of land and the division of the proceeds under Pt IV Div 2 of the [Property Law Act] are to be performed and carried into effect. It would be highly inconvenient and inexpedient for these functions to be performed by a Tribunal member, who would necessarily be required to act out of session.[30]
The Primary Judge wrongly held that that as the Principal Registrar was employed to assist in the administration of VCAT, the Principal Registrar could undertake the responsibilities pursuant to the VCAT orders.
The Primary Judge misconstrued the ordinary meaning of the word administration.
The ordinary meaning of the word administration, is the process or activity of running a business or organisation.
The ordinary meaning of the word administration does not involve the setting of a reserve price of properties at an auction or the sale price in a private sale or to give legally binding directions or to execute documents on behalf of a party without their consent thereto.
The ordinary meaning of the word administration has nothing to do with the enforcement of a VCAT order.
The Primary Judge wrongly held that s 32(1) of the VCAT Act conferred statutory responsibilities upon the Principal Registrar, as opposed to an administrative role as an employee of VCAT.
...
The responsibilities of the Principal Registrar pursuant to the VCAT orders made on 28 July 2021 were to enforce VCAT orders, as opposed to scheduling a hearing, and are not administrative in nature.
...
There were no primary function or powers conferred upon VCAT or the Principal Registrar to enforce the VCAT orders. There is no corollary to s 22 of the Supreme Court Act in the VCAT Act.
There are no ancillary powers that are necessary for, incidental or consequential upon the primary function of VCAT, which is to make orders, as opposed to enforcing orders.
The power [in s 228 of the Property Law Act] is 'wide enough to include the adoption of the sensible course'[[34]] of conferring the various functions on the Principal Registrar through the orders that are impugned by the Applicant. The functions or responsibilities given to the Principal Registrar by the impugned orders were to take the steps necessary to effect the sale of the land that VCAT had decided was necessary to resolve the dispute that was before it. They were administrative steps in the sense that they did not require the resolution of competing legal claims (which was determined by VCAT) but were the necessary additional steps to finalise the dispute and fulfil the objectives of Parliament in enacting Pt IV Div 2 of the [Property Law Act] - to give VCAT broad and flexible powers to resolve disputes between co-owners in a way that is fast, fair, simple and cost effective.
It can be inferred that VCAT determined that the Principal Registrar was the appropriate repository of the functions that were conferred - not because they were necessarily within the statutory functions of the Principal Registrar, but by virtue of the position that they occupied.
The Property Law Act ... authorises VCAT to make an order that a person with the capacity to do so execute any instrument or produce a document of title. It is an absurdity to suggest that the [Property Law Act] can authorise the Principal Registrar or any other third party to produce a title that is not in their possession, custody or control or to execute a contract of sale, in respect of properties that they are not registered proprietors thereof, and have no capacity to transfer the properties. The Applicant is not reading down the provision. The VCAT cannot make an order that a third party transfer properties that they do not own.
...
The VCAT orders made in relation to the Principal Registrar cannot be supported by s 32(2)(a) and (b) of the [VCAT Act] which provides that the Principal Registrar has the functions conferred by or under this or any other Act and the rules and in carrying out those functions is subject to the direction of the President. ... The [Property Law Act] orders are not subject to the direction of the President. The functions that are conferred under an Act or rule pursuant to s 32(2)(a) and (b) of the [VCAT Act] must be specifically conferred upon the Principal Registrar. It cannot be conferred upon third parties. The [Property Law Act] can only confer powers upon persons with the capacity to comply with the VCAT orders. It would be an absurdity to hold that VCAT orders could be made against persons with no capacity to comply with the VCAT orders, and who would be subject to a possible contempt charge for failing to comply with the VCAT orders.
(4) The Primary Judge erred in holding that the responsibilities of the Principal Registrar pursuant to the VCAT orders were within the statutory functions thereof to provide administrative support and assistance to VCAT pursuant to s 32(1) of the VCAT Act.
(5) The Primary Judge erred in holding that the responsibilities of the Principal Registrar pursuant to the VCAT orders were to be classified as administrative in nature.
(6) The Primary Judge erred in holding that the ancillary powers could justify the Principal Registrar acting pursuant to the VCAT orders.
PROPOSED GROUNDS 7, 8 AND 9: WERE VCAT'S REASONS ADEQUATE?
(1) The judge's decision on the adequacy of VCAT's reasons
(8) The Tribunal erred in law in failing to consider all of the oral and documentary evidence globally or cumulatively in making its findings.
(10) The Tribunal failed to provide proper reasons for the decision and failed to address all of the significant issues before it.
(a) his claim for unconscionable conduct;
(b) his capacity to read and understand English;
(c) his claim for fraud;
(d) the findings concerning the signing of the transfers of land and the contract notes;
(e) the finding that six contract notes were signed; and
(f) the finding that Mr Djordjevich's right to contribution merged in the Magistrates' Court judgment.
The Tribunal did not make findings of fact relating to Mr Krickic's evidence in isolation. It carefully considered the different accounts given by Mr Krickic and Mr Djordjevich as to how the contract notes and transfers had been signed, and preferred Mr Krickic's account as to what had occurred. The Tribunal was well aware that the transactions in question had taken place almost 20 years earlier. It did not disregard concessions made by Mr Krickic in cross-examination.[41]
PROPOSED GROUND 11: DID VCAT CONSIDER WHETHER THE PARTIES ENTERED INTO A PARTNERSHIP?
(1) The judge's decision concerning the partnership issue
The existence or otherwise of a partnership was a matter of fact for the Tribunal. The Tribunal was correct when it held that there was no partnership. The Tribunal was also correct when it referred to ss 5 and 6 of the Partnership Act 1958 (Vic) and to relevant authority. There is nothing to suggest that the Tribunal misdirected itself or failed to apply the correct legal test in determining whether the parties had entered into a partnership agreement in July 2002.[47]
The VCAT had to decide if the parties entered into a partnership agreement, whilst taking into account the indicia of whether there was a partnership. The Appellant testified that was a partnership agreement along with the co-ownership of property which together would be sufficient for a finding of a partnership agreement. In Daoud v Boutros [2013] NSWSC 687 Sackar J said at [88] In determining the legal characterisation of the relationship of the parties the intention of the parties must be objectively ascertained from their words and conduct, and the description that the parties themselves have placed on their relationship is relevant but not conclusive (Bova v Avati [2009] NSWSC 921 at [181] per Ward J).
The VCAT decision focuses on whether the parties subsequently carried on a business with a view to profit, which is an error of law. The parties do not need to commence carrying on a business to be partners, it is sufficient that preparatory to a partnership be undertaken, such as the purchase of the property, the transfer of the titles et al. In Khan v Miah [2000] UKHL 55; [2000] 1 WLR 2123 Lord Millett (with whom the other Law Lords agreed) said at p 2127-2128 '... Many businesses require a great deal of expenditure to be incurred before trading commences ... The work of finding, acquiring and fitting out a shop or restaurant begins long before the premises are open for business and the first customers walk through the door. Such work is undertaken with a view of profit, and may be undertaken as well by partners as by a sole trader.'
The Primary Judge repeated the mistakes of VCAT in failing to consider whether the parties had actually entered into a partnership agreement. The subsequent conduct of the parties is usually as a matter of law irrelevant to construing an agreement.
PROPOSED GROUND 12: DID VCAT ERR IN SETTING A RESERVE PRICE OF $2,000,000?
(1) The judge's decision on the reserve price issue
It is well established that on appeal the Court must recognise the forensic realities of the way in which a case was put to the Tribunal, noting that it is those realities to which the Tribunal must respond in its reasons. The Tribunal was entitled to use its own judgement as to the reserve price and to fix the reserve price in the orders.[51]
[1] The second respondent is the Attorney-General for Victoria, who intervened in the proceeding below.
[2] Peter Djeka Pty Ltd v Djordjevich [2021] VCAT 829 ('VCAT Reasons').
[4] The notice of appeal contained 12 grounds, but ground 10 was abandoned in the course of the hearing.
[5] VCAT Reasons, [61]-[62], referring to s 6 of the Partnership Act 1958 and to Jafari v 23 Developments Pty Ltd [2018] VSC 404.
[8] VCAT Reasons, [36]-[37], [42].
[10] VCAT Reasons, [38]. The Tribunal said that 'although [Mr Djordjevich] claimed that his English was poor, he was an experienced property developer, having bought and sold numerous properties, and was very familiar with buying and selling land and the forms that were used'.
[14] We note that, subject to a minor grammatical difference, proposed ground 3 is in substance the same as proposed ground 1. These two grounds were said, in the written application for leave to appeal, to raise the same question of law. And in his written submissions on proposed ground 3 Mr Djordjevich referred to and repeated his submissions on proposed ground 1. However, in oral argument Mr Djordjevich said that ground 3 raises essentially the same question as ground 4. On any view, ground 3 does not raise a distinct issue. We will thus not deal separately with proposed ground 3.
[15] The notice of contention referred to s 228(1) of the VCAT Act, but it is clear that it was intended to refer to s 228(1) of the Property Law Act.
[18] [1932] HCA 9; (1932) 47 CLR 1, 7 (Gavan Duffy CJ and Dixon J); [1932] HCA 9 ('Anthony Hordern').
(1) A person in whose favour a non-monetary order is made may enforce the order in the Supreme Court.
(2) For the purposes of the enforcement of a non-monetary order under subsection (1), the order is taken to be an order of the Supreme Court.
[24] In Anthony Hordern (1932) 47 CLR 1; [1932] HCA 9, Gavan Duffy CJ and Dixon J said this: 'When the Legislature explicitly gives a power by a particular provision which prescribes the mode in which it shall be exercised and the conditions and restrictions which must be observed, it excludes the operation of general expressions in the same instrument which might otherwise have been relied upon for the same power': 7.
[25] We note that order 14(a) (which authorised the Registrar to execute certain documents) expressly stated that such execution was to be 'treated as an execution by the party who has failed or neglected to do so'. In contrast, order 15 (which gave a more general authorisation to the Registrar to execute documents) and order 16 (which authorised the real estate agent to execute a contract of sale) contained no such express statement. In our view it is not necessary for the orders to contain such a statement in order for the executed documents to be legally effective. Their effect is implied by reason of the legislative provision in s 232(i).
[26] Victoria, Parliamentary Debates, Legislative Assembly, 14 September 2005, 879 (Rob Hulls, Attorney‑General).
[27] Victoria, Parliamentary Debates, Legislative Assembly, 14 September 2005, 880 (Rob Hulls, Attorney‑General).
[28] Victorian Law Reform Commission, Disputes between Co-Owners (Report_,_ 24 April 2002), 59-64, 75-81. The report was referred to in the second reading speech: Victoria, Parliamentary Debates, Legislative Assembly, 14 September 2005, 880 (Rob Hulls, Attorney-General).
[33] R v Perkins [2002] VSCA 132, [23] (Vincent JA, Phillips CJ agreeing at [1], Chernov JA agreeing at [2]) ('Perkins').
[34] Perkins [2002] VSCA 132, [24] (Vincent JA, Phillips CJ agreeing at [1], Chernov JA agreeing at [2]).
[36] Reasons, [141]. His Honour had earlier set out the Tribunal's reasons why it preferred Mr Krickic's evidence over that of Mr Djordjevich, and observed that '[t]he assessment of the evidence was a matter of fact for the Tribunal'. His Honour also observed that there were 'persuasive reasons' why the Tribunal accepted Mr Krickic's evidence and rejected Mr Djordjevich's evidence: Reasons, [110]-[111].
[38] [2021] VSC 521, [50].
[39] VCAT Reasons, [24] (unethical conduct); [36]-[38] (dealing with the factual basis for the unconscionable conduct claim); [38] (Mr Djordjevich's capacity with English); [64] (fraud); [33]-[42] (signing of transfers and contract notes); [54], [72]-[73] (merger).
[44] VCAT Reasons, [31], [32], [37], [42].
[45] VCAT Reasons, [27], [32], [35]-[37].
[48] Reasons, [181]-[182]. A related ground, ground 20 (which was that the Tribunal had 'failed to identify the relevant legal test' for determining whether there was a partnership) also failed.
[49] VCAT Reasons, [58]-[59], [63].
[51] Reasons, [193] (citations omitted).
Djordjevich
Peter Djeka Pty Ltd [2024] VSCA 60
(1932) 47 CLR 1
(1936) 55 CLR 499