Consideration - adjournment request at the hearing
- The tenant provided to the Appeal Panel a transcript of the hearing. The landlords did not dispute the accuracy of that transcript. Section 38(5)(c) of the NCAT Act and the common law rules of procedural require the Tribunal is to "ensure that the parties have a reasonable opportunity to be heard or otherwise have their submissions considered in the proceedings." There is no evidence that the Tribunal did not read the evidence and the transcript shows that the Tribunal asked the tenant at least three times (see: T11:38-43; T12:8-13; T13:10-16) to take the Tribunal to relevant material contained within his evidence.
- It is not, in our view, unreasonable for the Tribunal to ask a self-represented party to point out the documents that they seek to rely on in their bundle and the relevance of those documents. The tenant was given more than a reasonable opportunity to take the Tribunal to material that they sought to rely upon, and we do not find a breach of procedural fairness on that ground and on that basis, ground 5 must also fail.
- However, the Tribunal proceeded in circumstances where it was on notice that the tenant was seeking an adjournment and where the tenant had requested documents be made available from the respondent.
- The 'Conciliation and Hearing' on 12 November 2020 was the first time the matter had been listed before the Tribunal and as was the practice of the Consumer and Commercial Division of the Tribunal at the time, directions has been made for the parties to exchange documents prior to the hearing. In the "Reasons for Decision', the Tribunal stated at [2]
the matter was heard by telephone in a 15 minute hearing with the COVID-19 pandemic arrangements. Both parties had submitted their evidence. The Tribunal was satisfied that the matter could and should proceed. Both parties were given an opportunity to state their case.
- The landlord made submissions to the Appeal Panel that the tenant did not persist with the request for adjournment or documents at the outset of the hearing. An examination of the transcript demonstrates that an adjournment was not requested by the tenant at the outset, and that the Tribunal did not consider the issues raised as it had indicated in the refusal to adjourn the matter on 4 November 2020 (as set out at [46] above). The Tribunal relevantly commenced the hearing as follows:
Tribunal: All right. So today the matters been listed just to see how we resolve this matter and sort things out so I know there's been some documents sent in from both parties but Ms Davies this is a - by the look of it, just a section 94 application to terminate a long term tenancy.
….
Davies: Yes.
Tribunal: Is that right?
Davies: Yes, yes.
Tribunal: Yes, okay. So yes I suppose Mr Courtney maybe you just want to perhaps outline the reasons for I guess wanting vacant possession of the property and where you're up to? Sorry Mr Courtney are you there?
- After hearing from Mr Courtney the Tribunal invited the tenant's wife, Ms Gay:
All right. Yes Mr or Mrs Gay, so unfortunately for you I guess under the Tenancies Act, if you're under a long term tenancy which is greater that 20 years, this is the process and if the Tribunal is satisfied that a termination order should be made well that's how we get to this stage I guess so is there anything you want to say or?
- After some initial issues with the telephone, Ms Gay outlined the issue to the Tribunal as being one in which the whole process about the use of the land being clouded in secrecy. She also stated that they were not saying that they wanted all the land; they just wanted the house and the paddock. Ms Gay also made submissions about turning the property into a koala habitat and that the new parklands will impact on the koala habitats. The Tribunal informed Ms Gay that it did not have the power to control government policy and relevantly stated:
…. I accept the government has plans for the landlord which they want to get underway with, they've certainly given you since earlier this year plenty notification that, you know, it's coming to the time where you're going to have to unfortunately pack up and leave your rental property and now it's just about setting a date. You know there's nothing that seems untoward about that process to me and having heard what Mr Courtney has had to say today, there is no reason that I shouldn't make the order.
- Ms Gay also asked if the Tribunal had read through her entire brief. As we indicated above, the Tribunal explained to Ms Gay that if there was something she wanted to particularly rely on then she should refer the Tribunal to it. The Tribunal indicated to Ms Gay on three occasions that she should point out to the Tribunal what was relevant in her documents. After the third time that the Tribunal asked Ms Gay to refer to any particular page or paragraph, Ms Gay asked the Tribunal:
Ms Gay: Can you defer it?
Tribunal: No there's no need to defer this situation, an order needs to be made. As I said this has been going on since January from my understanding of this matter so today it's here
- The Tribunal proceeded to make the decision to terminate the tenancy agreement.
- In the reasons for decision the Tribunal relevantly stated the following:
3). The landlord stated that they wanted the property back as it had been identified for the creation of a new parkland area and recreation space for the community. The landlord stated that the works to construct the new parkland were scheduled to commence in the New Year with a completion date by the end of 2021. Whilst the management of the parkland in the future is intended to be with Wollondilly Council, if that does not eventuate, then the landlord stated that the parkland once constructed will be managed by another government agency.
4). The tenant stated that they have lived there a long time and moving will have a big impact on them. The tenant and his wife are in their 70's and clearly don't want to have to move. They believe that they have been treated unfairly and the government has conducted the matter with a lot of secrecy. The tenant stated that Wollondilly Council do not want them evicted and disputes precisely what will happen with the land. The tenant believes that there is no reason for them to be evicted.
5). The tenant submitted a large amount of material in the matter. In the time allocated the Tribunal could simply not read every page of the tenant's voluminous material. The Tribunal repeatedly asked the tenant if there was a particular document, page and/or paragraph that the tenant wanted the Tribunal to specifically read and consider. The tenant did not identify any such material.
6). The Tribunal considered that the matter was a straight forward case. It was clear from early 2020 the landlord has informed the tenant that they require the property back and the tenant has to vacate the premises. The tenant has failed to comply with any notice to vacate the property that the landlord has issued. It was clear that the landlord was then entitled to and obliged to lodge this application pursuant to Section 94 of the Residential Tenancies Act 2010.
7). In exercising discretion, the Tribunal has listened to and considered both parties cases. The Tribunal accepted that the landlord has a bona fide reason for wanting the property back and while the Tribunal accepts the tenant shall suffer a reasonable degree of hardship in vacating the property after so long as a tenant, the Tribunal accepts that the creation of a new parkland area and recreation space intended for the local community is something that is a worthwhile project and should not be delayed, altered or prevented by the tenant remaining at the property.
8). The Tribunal was satisfied that it was appropriate to make an order terminating the tenancy and returning possession of the property to the landlord. Section 94(4) requires in determining the day on which vacant possession of the residential premises is to be given to the landlord a minimum of 90 days after the order is made. Due to length of the tenancy, the Christmas and the New Year period approaching, the Tribunal decided to extend the possession date further to 31-Mar-2021.
- The landlord acknowledged that the Tribunal must ensure a hearing is fair, they stated that in the case of an unrepresented party, a balance must be struck between providing assistance to an unrepresented party and achieving a fair trial for all parties. They submit that the duty does not extend to advising a party about how their rights should be exercised, rather, the decision-maker has to put the unrepresented party in the position of being able to make an effective choice and it is not the function of the decision-maker to give advice to, or conduct the case on behalf of, the unrepresented litigant.
- The landlord submits that the Tribunal cannot be expected to assist the unrepresented party in a matter that a party no longer pursues during the course of the hearing. Accordingly, they submit that there was no basis in this case for Tribunal to adjourn the hearing, explain the summons procedure to the tenant or direct the Registrar to issue a summons under the NCAT Act.
- An examination of s 94 of the RTA would indicate that the purpose that the land was to be used for would have been relevant to the discretion as to whether to terminate.
- Section 94 of the RTA applies to termination of long term tenancies
(1) The Tribunal may, on application by a landlord, make a termination order for a residential tenancy agreement -
(a) if the tenant has been in continual possession of the same residential premises for a period of 20 years or more, and
(b) if the tenant occupied the premises under a fixed term agreement, the fixed term of the original agreement has expired, and
(c) if the Tribunal is satisfied that it is appropriate to do so in the circumstances of the case.
(2) A landlord may make an application under this section without giving the tenant a termination notice.
(3) The Tribunal must not make a termination order under this section that specifies a termination date that is before the end of the fixed term if the residential tenancy agreement is a fixed term agreement.
(4) The Tribunal, in determining the day on which vacant possession of the residential premises is to be given to the landlord, must not order that vacant possession be given earlier than 90 days after the order is made.
- The application of the NSW RTA to Commonwealth tenancies was considered in the Federal Court in the matter of Commonwealth of Australia (as represented by the Department of Infrastructure and Regional Development) v Rigney & Anor (No.3) [2015] FCCA 3133. At [139] - [140] Smith J stated:
The approach to this case must then be to first determine whether the power to make a termination order arises. That requires consideration of whether the three conditions set out in s.94 exist on the facts of the case. Those include whether "in the circumstances" the Court considers that a termination order is appropriate: sub-s.94(1)(c). Those circumstances are, as explained in Swain, all of the matters that arise on the material before the Court including the availability of suitable alternative accommodation. Once that is considered, the second step is to consider the exercise of the discretion. As Leeming JA said in Cain, this may be surplus and may be no more than an affirmation of the consideration under sub-s.94(1)(c). Although there is a real discretion, it is difficult to imagine the circumstances in which it would be appropriate to make a termination order and then exercise the discretion not to make such an order.
Once the Court decides to make a termination order it must also make an order for possession of the residential premises specifying the day on which the orders takes or took effect: s.83(1). As the minimum 90 day period specified in s.94(4) does not apply to these proceedings, there is no explicit guidance in the Tenancies Act as to the date on which possession should be ordered. In light of that, the contextual matters considered above must also be involved in the determination of the date of possession. Essentially, the determination involves a balancing of the interests of the landlord and the tenant in the circumstances of each case with some regard to the length of the tenant's possession of the land.
- Swain v Residential Tenancies Tribunal of New South Wales (Supreme Court of New South Wales, Rolfe J, unreported, 22 March 1995) was a case which dealt with the predecessor to the RTA which did not have a separate provision relating to the length of a tenant's occupation of premises. However, Swain provides some useful commentary on the discretion to terminate as was relevant to Residential Tenancies Act 1987 (NSW). This was summarised by Smith J in Rigney at [121] - [122]:
In Swain v Residential Tenancies Tribunal of New South Wales (Supreme Court of New South Wales, Rolfe J, unreported, 22 March 1995) it was argued that a landlord had the right to obtain a termination order under s.64 upon giving the requisite notice at the end of the term of a lease. Rolfe J rejected this argument, holding that the Tribunal must also be satisfied of the matters in sub-s.64(2)(c)(ii), namely, that it was appropriate to terminate the lease having considered the circumstances of the case. As to those circumstances, his Honour said:
... Possible "circumstances", which may have to be taken into account, are the time the tenant has occupied the premises, the age and state of health of the tenant, the necessity for any number of reasons for the tenant to live in a particular area, and the inability of the tenant to obtain other suitable accommodation in which, of course, I include accommodation in an area suitable for matters such as proximity to family, facilities or employment. ...
That decision was upheld on appeal: Roads and Traffic Authority v Swain (1997) 41 NSWLR 452. There, Meagher AJ, with whom Priestley and Cole JJA agreed, held at 456B, that the "circumstances" referred to in s.64 were the particular case before the Tribunal. His Honour also explained that the Act was intended to balance the rights of the landlords and tenants. See also Celemajer Holdings Pty Ltd v Kopas [2011] NSWSC 40 at [447].
- In Celemajer Holdings Pty Ltd v Kopas [2011] NSWSC, Meagher AJ, with whom Priestley and Cole JJA agreed, carefully weighed up the relevant circumstances of that case at [449]-[452] of the judgement. At [449] His Honour relevantly stated:
(xiii) there is clear evidence as to the fact that the premises are wanted for another purpose and nothing to suggest that this is not a genuine purpose; there is nothing to show that the ultimate beneficiary (assuming there be one) of the trust of which Celegroup is the trustee wishes to occupy the premises personally.
- At [453] His Honour, having considered all the relevant matters found:
Having now found that CHPL has discharged the onus upon it to establish that the premises were not controlled premises, then the Residential Tenancies Act applies to govern the termination of Dr Kopas' tenancy. In those circumstances, having considered the matters referred to above, I am of the view that, notwithstanding the Kopas' family's long term residence in the premises, it is not appropriate to grant relief that would in effect deprive CHPL of the opportunity to derive a commercial benefit from the property for an uncertain term and grant to Dr Kopas the very life tenancy he has been unable to establish was ever agreed.
- Celemajer establishes that what the premises are wanted back for and whether that is a genuine purpose may be relevant to the balancing of the discretion. In effect the tenants were challenging the purpose that the landlord wanted the premises and whether that purpose was genuine.
- The landlord provided to the Appeal Panel the documents which the landlord had provided to the Tribunal prior to the hearing. Those documents included:
1. The notice of termination dates 25 June 2020
2. The residential lease agreement between the parties
3. The Trust Ledger Report
4. The Tenancy Ledger
- No statements or information was contained in those documents as to the reason why the landlord required the land back.
- Mr Courtney appeared at the Tribunal hearing for the landlord. He had not provided a statement beforehand to the Tribunal. While we accept that it is not necessary in every case that a statement is provided, in this case the use of the premises was a matter in contention. As is demonstrated at [52] of our reasons above, the Tribunal began the hearing by explaining to the parties that the matter was listed "just to see how to resolve the matter" and "sort things out". It did not identify that the hearing was starting or any of the processes about how the hearing would proceed.
- The Tribunal then asked Mr Courtney to outline the reasons for wanting the vacant possession of the property which he did. The reason for why the respondent wanting possession of the property had not been raised in the documents of the landlord that had been provided beforehand. Mr Courtney's oral submissions at the hearing were the first time that the matter was formally addressed by the landlord to the Tribunal. There were no documents before the Tribunal to support the assertions made by Mr Courtney. We accept that if use of the property were not being challenged, oral statements made by Mr Courtney at the hearing may have been sufficient for the Tribunal to be satisfied that the landlord required the property and that the reason was genuine.
- However, it is clear from the application for adjournment made on 29 October 2021 that the tenant was challenging that. This was also repeated by the tenant on a number of occasions at the hearing.
- We are satisfied in those circumstances, and taking into account the guiding principle of the NCAT Act which require a 'just, quick, and cheap" resolution of matters, that an adjournment was necessary so that the parties could address the issues raised and provide any relevant supporting documents as to the use of the land. Further, the documents that were being requested by the tenant were relevant to the issues for determination by the Tribunal. We are satisfied that in those circumstances the tenant was denied procedural fairness and was denied the opportunity to seek documents from the landlord and to meet the case at the hearing. As a result grounds 4, 6, 7 and 8 have merit.
- On that basis we are satisfied to extend time for the appeal and the appeal is allowed and orders made by the Tribunal are set aside.