[2018] VCAT 1638
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2018-10-24
Mr J
Original judgment source is linked above.
Application for compensation in respect of breaches of duty by holder of old enduring power of attorney. Section 77 Powers of Attorney Act 2014 and sections 125V and 125Z of Instruments Act 1958 considered.
DLM (Guardianship) [2018] VCAT 1638
I declare under section 124 of the Victorian Civil and Administrative Tribunal Act 1998 that this Tribunal has the power to award compensation against [LQC] pursuant to section 77 of the Powers of Attorney Act 2014 in respect of alleged breaches of duty under the power of attorney dated 30 October 2013 which arose after 1 September 2015.
I order that this proceeding be listed for directions before any Member so that a date for hearing of the compensation application can be allocated.
I order that the administrator's costs of this hearing before me be reserved for further determination by any Member on a date to be fixed.
The Victorian Civil and Administrative Tribunal (VCAT) is providing these reasons on a confidential basis. Clause 51AJ of Schedule 1 of the Victorian Civil and Administrative Tribunal Act 1998 provides that, unless VCAT orders otherwise, a person must not publish or broadcast any report of a proceeding under the Powers of Attorney Act 2014 that identifies or could lead to the identification of a party to the proceeding.**
THE DIFFERENCE BETWEEN A FINDING IN RELATION TO THE INSTRUMENTS ACT AND A FINDING IN RELATION TO THE POA ACT
THE INSTRUMENTS ACT- SECTION 125(1)(d)
(a) make a declaration or make recommendations or give any directions it considers necessary in relation to an enduring power of attorney.
(b) vary the effect of an enduring power of attorney;
(c) suspend for a specified period an enduring power of attorney, either generally or in respect of this specific manner;
(d) make any order it considers necessary in relation to an enduring power of attorney.
The Court may make one or more of the following orders in relation to a person who has contravened (the subsection) - injunctions, and any other orders that the Court considers necessary to stop the contravention or remedy its effects.
Ultimately the question is whether these are sufficiently clear signals that the express words should be treated as limited in the way discussed in (other authority) referred to earlier. They are not. The words used should be construed with all the amplitude that their ordinary meaning admits.
We agree with that conclusion. The guiding principle to be borne in mind is that limitations are not readily to be implied or found in the case of a grant of judicial power in terms which are themselves unconfined.
A related principle which applies in the present case is that a remedial power should not normally be narrowly construed.
The grant of power in section 494(5) was a very wide one. The court was given a power to make "any other orders of the court considers necessary" to remedy the effects of a contravention. A grant of power in wide terms does not render the grant of power ambiguous. Were it not for the structural considerations relied upon by the TWU, there would be no doubt in our view that taking the ordinary and natural meaning of the words used in section 494(5) of the WR Act. The terms of the grant of power were wide enough to include an order for compensation.
The words are of wide import. Ordinarily, the conferral on a court of the statutory power to make orders should be construed broadly, not confined by implication that is not apparent from the words of the conferral themselves.
In accordance with this principle, the court should not confine the phrase "any other order" by reference to any implication, but only by reference to the terms of (the section) itself.
There was some debate before us as to the circumstances in which courts are entitled to examine a later statute to determine whether it throws any light upon the interpretation of an earlier statute. Plainly this course can be taken when the words of the earlier statute are ambiguous, but if the words of the earlier statute are clear, little assistance may be gained from the later statute. Also care must be exercised to ensure that the words in the later statute have not been inserted to remove possible doubts.
We do not discern any ambiguity in the relevant words of (the section) so do not find it necessary to call in aid the language of the amendment.
Where the legislator 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.
VCAT may order an attorney under an enduring power of attorney to compensate the principal for a loss caused by the attorney contravening any provision of this Act relating to enduring powers of attorney when acting as attorney under the power of attorney.
The following provisions of this Act are taken to apply to an old enduring power of attorney, as if it were an enduring power of attorney made under this Act -
THE FIRST ARGUMENT - THE WORDS OF THE SECTION ITSELF
The Supreme Court or VCAT may order an attorney under an enduring power of attorney to compensate the principal for a loss caused by the attorney contravening or acting in a way that, had the enduring power of attorney been made under this Act would have contravened any provision of this Act relating to enduring powers of attorney when acting as attorney under the powers of attorney.
Consistently with this court's rejection of the adoption of rigid rules in statutory construction, it should not be accepted that purposive construction may never allow a reading of the provision as if it contained additional words (or omitted words) with the effect expanding its field of operation.
The question of whether the court is justified in reading a statutory provision as if it contained additional words or omitted words involves a judgement of matters of degree. That judgement is readily answered in favour of addition or omission in the case of simple, grammatical, drafting errors which if uncorrected would defeat the object of the provision. It is answered against a construction that fills "gaps disclosed in legislation" or makes an insertion which is "too big, or too much at variance with the language in fact used by the legislature".
[1] YDM (2016) VCAT 758.
[2] ODY (2016) VCAT 804.
[3] QSK (2017) VCAT 2017.
[5] TWU v Qantas (2012) FC AFC 10.
[6] Allina Pty Ltd v Commissioner of Taxation (1991)28 FCR203.
[7] Anthony Hordern and Sons Ltd v Amalgamated Clothing and Allied Trades Union of Australia (1932)47CLR 1 at 7.
[8] Taylor v Owners - Strata Plan No. 11564 [2014] HCA 9; (2014) 253 CLR 531.
[9] Leys [2012] VSCA 304; (2012) 44 VR 1 at paragraph 17.
[10] Minister for Immigration and Citizenship v SZJGV [2009] HCA 40; 2009 (238 CLR 642 at page 651).
(2014) 253 CLR 531
(2012) 44 VR 1