[2019] VCAT 422
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2019-04-02
Original judgment source is linked above.
Building Act 1993, s134, whether claim statute barred after 10 year limitation where 'building work' done without 'building permit' and no occupancy certificate issued. Statutory construction of s134, whether time starts to run and, if so, from what date. Found, s134 has no operation.
Limitation of Actions Act 1958, operation in default of s134 of the Building Act found.
Principles of statutory construction, text and context/purposive construction/extrinsic material/second reading speech considered: Alcan (NT) Alumina Pty Ltd v Comm of Territory Revenue [2009] HCA 41, Comm of Taxation v Consolidated Media Holdings Ltd [2012] HCA 55, Project Blue Sky Inc v ABC [1998] HCA 28; (1998) 194 CLR 355, SM v The Queen [2013] VSCA 342, Baini v R [2012] HCA 59, Saeed v Minister for Immigration and Citizenship [2010] HCA 23, considered and applied.
Meaning of legislative intention: Certain Lloyd's Underwriters v Cross [2012] HCA 56.
Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd considered.
Reading in of words to give expanded meaning to section: Taylor v The Owners - Strata Plan No11564 applied.
Tribunal to adopt the appropriate statutory construction even if not submitted for by counsel Accident Towing & Advisory Committee v Combined Motor Industries Pty Ltd [1987] VicRp 48; [1987] VR 529 followed.
Gledhill v Scotia Property Maintenance Pty Ltd (Building and Property) [2019] VCAT 422
[19] In Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue,[12] Hayne, Heydon, Crennon and Kiefel JJ emphasised the centrality of the words of the relevant statutory provision:
This Court has stated on many occasions that the task of statutory construction must begin with a consideration of the text itself. Historical considerations and extrinsic materials cannot be relied on to displace the clear meaning of the text. The language which has actually been employed in the text of legislation is the surest guide to legislative intention. The meaning of the text may require consideration of the context, which includes the general purpose and policy of a provision, in particular the mischief it is seeking to remedy.
[20] In Commissioner of Taxation v Consolidated Media Holdings Ltd,[13] French CJ, Hayne, Crennan, Bell and Gageler JJ said:
This Court has stated on many occasions that the task of statutory construction must begin with a consideration of the [statutory] text.' So must the task of statutory construction end. The statutory text must be considered in its context. That context includes legislative history and extrinsic materials. Understanding context has utility if, and in so far as, it assists in fixing the meaning of the statutory text. Legislative history and extrinsic materials cannot displace the meaning of the statutory text. Nor is their examination an end in itself.
[21] In Project Blue Sky Inc v Australian Broadcasting Authorit_y,[14]_ McHugh, Gummow, Kirby and Hayne JJ emphasised the importance of reading a statute as a whole:
The primary object of statutory construction is to construe the relevant provision so that it is consistent with the language and purpose of all the provisions of the statute. The meaning of the provision must be determined 'by reference to the language of the instrument viewed as a whole'. In Commissioner for Railways (NSW) v Agalianos,[15] Dixon CJ pointed out that 'the context, the general purpose and policy of a provision and its consistency and fairness are surer guides to its meaning than the logic with which it is constructed'. Thus, the process of construction must always begin by examining the context of the provision that is being construed.
Moreover, the modern approach to statutory interpretation (a) insists that the context be considered in the first instance, not merely at some later stage when ambiguity might be thought to arise, and (b) uses "context" in its widest sense to include such things as the existing state of the law and the mischief which, by legitimate means such as those just mentioned, one may discern the statute was intended to remedy. Instances of general words in a statute being so constrained by their context are numerous. In particular, as McHugh JA pointed out in Isherwood v Butler Pollnow Pty Ltd, if the apparently plain words of a provision are read in the light of the mischief which the statute was designed to overcome and of the objects of the legislation, they may wear a very different appearance. Further, inconvenience or improbability of result may assist the court in preferring to the literal meaning an alternative construction which, by the steps identified above, is reasonably open and more closely conforms to the legislative intent.
This provision is extremely broad. Unlike s15AB of the Acts Interpretation Act 1901 (Cth), s.35 does not restrict the purposes for which it is permissible to consider the extrinsic materials referred to in that section. Whether or not extrinsic material is considered in interpreting a statutory provision, it is clear that the meaning attributed to the statute must be consistent with the statutory text. If the meaning which would otherwise be attributed to the statutory text is plain, extrinsic material cannot alter it. It is only when the meaning of the text is doubtful (to use a neutral term rather than those to be found in s.15AB(1) of the Acts Interpretation Act), that consideration of extrinsic material might be of assistance. It follows that it would be erroneous to look to the extrinsic material before exhausting the application of the ordinary rules of statutory construction. If, when that is done, the meaning of the statutory text is not doubtful, there is no occasion to look to the extrinsic material. In our opinion, that is the present case.
As Gummow J observed in Wik Peoples v Queensland, it is necessary to keep in mind that when it is said the legislative "intention" is to be ascertained, "what is involved is the 'intention manifested' by the legislation." Statements as to legislative intention made in explanatory memoranda or by Ministers, however clear or emphatic, cannot overcome the need to carefully consider the words of the statute to ascertain its meaning.
'[t]he fundamental point is that close attention must be paid to the language' of the relevant provision because '[t]here is no substitute for giving attention to the precise terms' in which that provision is expressed. Paraphrases of the statutory language, whether found in parliamentary or other extrinsic materials or in cases decided under the Act or under different legislation, are apt to mislead if attention strays from the statutory text. These paraphrases do not, and cannot, stand in the place of the words used in the statute.
[52] More recently still, in Certain Lloyd's Underwriters v Cross[25] French CJ and Hayne J said of what is generally described as the 'purposive approach':
Determination of the purpose of a statute or of particular provisions in a statute may be based upon an express statement of purpose in the statute itself, inference from its text and structure and, where appropriate, reference to extrinsic materials. The purpose of a statute resides in its text and structure. Determination of a statutory purpose neither permits nor requires some search for what those who promoted or passed the legislation may have had in mind when it was enacted. It is important in this respect, as in others, to recognise that to speak of legislative 'intention' is to use a metaphor. Use of that metaphor must not mislead. '[T]he duty of a court is to give the words of a statutory provision the meaning that the legislature is taken to have intended them to have'. [Emphasis added.] And as the plurality went on to say in Project Blue Sky:
Ordinarily, that meaning (the legal meaning) will correspond with the grammatical meaning of the provision. But not always. The context of the words, the consequences of a literal or grammatical construction, the purpose of the statute or the canons of construction may require the words of a legislative provision to be read in a way that does not correspond with the literal or grammatical meaning.
To similar effect, the majority in Lacey[26] said:
Ascertainment of legislative intention is asserted as a statement of compliance with the rules of construction, common law and statutory, which have been applied to reach the preferred results and which are known to parliamentary drafters and the courts.
The search for legal meaning involves application of the processes of statutory construction. The identification of statutory purpose and legislative intention is the product of those processes, not the discovery of some subjective purpose or intention.
[53] Their Honours went on to say[27]:
A second and not unrelated danger that must be avoided in identifying a statute's purpose is the making of some a priori assumption about its purpose. The purpose of legislation must be derived from what the legislation says, and not from any assumption about the desired or desirable reach or operation of the relevant provisions. As Spigelman CJ, writing extra-curially, correctly said:
Real issues of judicial legitimacy can be raised by judges determining the purpose or purposes of Parliamentary legislation. It is all too easy for the identification of purpose to be driven by what the particular judge regards as the desirable result in a specific case. [Emphasis added.]
And as the plurality said in Australian Education Union v Department of Education and Children's Services[28]:
In construing a statute it is not for a court to construct its own idea of a desirable policy, impute it to the legislature, and then characterise it as a statutory purpose.
WHERE A PERMIT IS NOT ISSUED FOR BUILDING WORK AND NO OCCUPANCY PERMIT OR CERTIFICATE OF FINAL INSPECTION IS ISSUED, DOES THE 10 YEAR LIMITATION PERIOD UNDER S 134 OF THE BUILDING ACT NOT START TO RUN, OR DOES IT START TO RUN FROM THE DATE OF COMPLETION OF THE BUILDING WORK?
building work means work for or in connection with the construction, demolition or removal of a building;
building action means an action (including a counter-claim) for damages for loss or damage arising out of or concerning defective building work;
building work includes the design, inspection and issuing of a permit in respect of building work.
134 Limitation on time when building action may be brought
Despite any thing to the contrary in the Limitation of Actions Act 1958 or in any other Act or law, a building action cannot be brought more than 10 years after the date of issue of the occupancy permit in respect of the building work (whether or not the occupancy permit is subsequently cancelled or varied) or, if an occupancy permit is not issued, the date of issue under Part 4 of the certificate of final inspection of the building work.
30 The Builder concedes that s 134 of the Building Act 'on its face' does not apply to building work where no permit is required and no certificate of final inspection is issued.[31] The Builder nevertheless contends that such a conclusion would sit uncomfortably with the 'expressly stated intention of s 134'[32] to remove the ambiguity surrounding building work limitation periods by imposing an absolute cap of 10 years 'from the date of completion of the building work'.[33]
The Building Bill defines a clear starting date - the date of issue of an occupancy permit - and a clear conclusion date of 10 years from the date of issue. This will remove the existing ambiguity surrounding the time during which the building owner retains the right to issue legal proceedings. This will provide property owners with additional protection in terms of years beyond the very short number of years that now exists.
The question whether the court is justified in reading a statutory provision as if it contained additional words or omitted words involves a judgment of matters of degree. That judgment 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".
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 of reading a provision as if it contained additional words (or omitted words) with the effect of expanding its field of operation. As the review of the authorities in Leys demonstrates, it is possible to point to decisions in which courts have adopted a purposive construction having that effect.
the task remains the construction of the words the legislature enacted. In this respect it may not be sufficient that "the modified construction is reasonably open having regard to the statutory scheme"[63] because any modified meaning must be consistent with the language in fact used by the legislature. Lord Diplock never suggested otherwise. Sometimes, as McHugh J observed in Newcastle City Council v GIO General Ltd,[64] the language of a provision will not admit of a remedial construction ... His Honour's further observation, "[i]f the legislature uses language which covers only one state of affairs, a court cannot legitimately construe the words of the section in a tortured and unrealistic manner to cover another set of circumstances."
WHERE S 134 OF THE BUILDING ACT IS DETERMINED AS NOT HAVING APPLICATION WHERE A PERMIT IS NOT ISSUED FOR BUILDING WORK AND NO OCCUPANCY PERMIT OR CERTIFICATE OF FINAL INSPECTION IS ISSUED, IN RESPECT OF SUCH BUILDING WORK, DOES THE LIMITATION OF ACTIONS ACT APPLY BY DEFAULT?
The words '[d]espite any thing to the contrary in the Limitation of Actions Act 1958 or in any other Act or law' have work to do in s 134. The Limitation of Actions Act and other Acts provide for different periods of limitation. The period provided for in s 134 operates despite those different periods.
The contention that s 33 of the Limitation of Actions Act prevents s 5 of that Act operating with respect to 'building actions' should also be accepted. Section 134 of the Building Act is 'a period of limitation ... prescribed by any other enactment' within the meaning of s 33.[70]
[1] Paragraph 16 of the APOD in fact pleads s134 of the Domestic Building Contracts Act 1995. The parties by their submissions both recognise that the intended pleading is to s134 of the Building Act 1993. The Tribunal proceeds on this basis.
[2] Applicant's submission dated 6 February 2019, paragraphs 15 and 16; Applicant's further submission dated 14 February 2019, paragraph 3; Respondent's submission dated 7 February 2019, paragraph 2.
[3] Applicant's submission dated 6 February 2019, paragraphs 8 and 9; Applicant's further submission dated 14 February 2019, paragraph 3; Respondent's submission dated 7 February 2019, paragraph 2
[4] Applicant's submission dated 6 February, paragraph 21.
[5] Agreement of the parties is confirmed in respondent's further submission dated 14 February 2019, paragraph 3(b).
[6] Respondent's further submission dated 21 February 2019, paragraph 6.
[7] Applicant's further submission dated 14 February 2019, paragraphs 3 and 4; Applicant's submission dated 6 February 2019, paragraph 20(a) and (b).
[8] Applicant's submission dated 6 February 2019, paragraph 20; Applicant's further submission dated 14 February 2019, paragraph 5.
[9] Respondent's further submission dated 21 February 2019, paragraph 3(g).
[10] The intolerable wrestle: developments in statutory interpretation, The Hon James Spigelman (2010) 84 ALJ 822 at 826, referred to with approval S M v The Queen [2013] VSCA 342 per Weinberg JA; referred to Certain Lloyds Underwriters v Cross [2012] HCA 56.
[11] [2018] VSCA 102 (23 April 2018) per Tate, Osborn and Niall JJA, adopting the principles as summarised by Derham AsJ in Joseph v Worthington [2017] VSC 501.
[12] [2009] HCA 41; (2009) 239 CLR 27 at 46-47.
[13] [2012] HCA 55; (2012) 250 CLR 503, 519.
[14] [1998] HCA 28; (1998) 194 CLR 355, 381.
[16] [2014] VSCA 165 per Redlich, Whelan and Santamaria JJA.
[17] (1997) 187 CLR 384, 408 per Brennan CJ, Dawson, Toohey and Gummow JJ.
[18] Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165 at [110]
[19] [1989] HCA 43; (1989 CLR) 543 per Brennan and Gaudron JJ.
[20] [2010] HCA 23 at [31]; [2010] HCA 23; (2010) 241 CLR 252 per French CJ, Gummow, Hayne, Crennan and Kiefel JJ.
[22] [2013] VSCA 342 at [49].
[26] Lacey v Attorney-General (Qld) [2011] HCA 10.
[29] [2008] VSC 563 per Hansen J.
[31] Respondent's submission dated 7 February 2019, paragraph 3.
[33] Whether or not a permit is required for the building work need not be determined by me (refer to paragraph 8 above). The agreed question is whether the 10 year limitation period applies for building work not under a permit.
[34] Building Bill, second reading speech dated 11 November 1993.
[35] Respondent's further submission dated 21 February 2019, paragraph 6.
[36] Applicant's submission dated 6 February 2019, paragraph 22.
[37] Owner contends that the Limitation of Actions Act (Vic) 1958 is excluded by the introductory words of s134, and by s33 of that Act.
[38] Applicant's further submission dated 14 February 2019, paragraphs 9 and 10.
[39] Applicant's further submission dated 14 February 2019, paragraph 10.
[40] [2014] VSCA 165 at [111].
[41] The language of 'precede' is the Court of Appeal's paraphrasing of the High Court's decision in Saeed v Minister for Immigration and Citizenship [2010] HCA 23.
[42] [2010] HCA 23; (2010) 241 CLR 252 per French CJ, Gummow, Hayne, Crennan and Kiefel JJ.
[43] Commissioner of Taxation v Consolidated Media Holdings Ltd [2012] HCA 55.
[44] Accident Towing & Advisory Committee v Combined Motor Industries Pty Ltd [1987] VicRp 48; [1987] VR 529 at 547 per McGarvie J.
[45] Respondent's submission dated 7 February 2019, paragraph 3.
[46] Applicant's further submission dated 14 February 2019, paragraph 14.
[47] [2104] HCA 9 (2 April 2014) per French CJ, Crennan and Bell JJ at [38], citations omitted.
[48] Respondent's further submission dated 21 February 2019, paragraph 6.
[49] Owner's further submission dated 14 February 2019, paragraph 15.
[50] Respondent's submission dated 7 February 2019, paragraph 3.
[51] Respondent's further submission dated 21 February 2019, paragraph 1.
[52] Respondent's further submission dated 21 February 2019, paragraph 1.
[53] [1989] HCA 43, (1989) 167 CLR 43 at 549-550, as cited in Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165 at [110].
[54] Applicant's further submission dated 14 February 2019, paragraph 10.
[55] Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165 at [111].
[58] Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165 at paragraph 111.
[59] For example, the Domestic Building Contracts Act 1995 (Vic) s45(c) and (d). In the absence of an occupancy permit or certificate of final inspection, 10 years after the date of practical completion; if neither of these are issued or required or the date of practical completion cannot be ascertained, 10 years after the domestic building contract was entered into.
[60] [2014] HCA 9; (1997) 191 CLR 85 at 116 citing DPP v Leys [2012] VSCA 304.
[61] [1980] AC 74 at 105-106.
[62] [2014] HCA 9 at paragraph 39.
[63] DPP v Leys [2012] VSCA 304.
[64] [1997] HCA 53; (1997) 191 CLR 85 at 113.
[65] Respondent's further submissions dated 21 February 2019, paragraph 1.
[67] Building Bill, second reading dated 30 November 1993 at page 134, Annexure 'A' to respondent's further submission dated 21 February 2019.
[69] Taylor v The Owners - Strata Plan No 11564 [2104] HCA 9 per French CJ, Crennan and Bell JJ, [38].
[70] Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165 at paragraphs 115 and 116.
Gledhill
Scotia Property Maintenance Pty Ltd
(1998) 194 CLR 355
(2009) 239 CLR 27
(2012) 250 CLR 503
(1955) 92 CLR 390
(1997) 187 CLR 384
(2010) 241 CLR 252
(1989) 167 CLR 43
(1997) 191 CLR 85