Orders under s 25B Land and Environment Court Act
30Alternatively, the proponent seeks orders under s 25B of the LEC Act. Division 3 (ss 25A-25E) of the LEC Act applies to a development consent granted by the Minister or any other consent authority and extends to invalidity arising from any steps preliminary to the granting of a development consent: s 25A. Division 3 is prescribed as a Division which the Court is bound to consider instead of declaring or determining that a development consent to which the Division applies is invalid, whether in whole or in part: s 25E. Sections 25B and 25C provide:
25B Orders for conditional validity of development consents
(1)The Court may, instead of declaring or determining that a development consent to which this Division applies is invalid, whether in whole or in part, make an order:
(a)suspending the operation of the consent in whole or in part, and
(b)specifying terms compliance with which will validate the consent (whether without alterations or on being regranted with alterations).
(2)Terms may include (without limitation):
(a)terms requiring the carrying out again of steps already carried out, or
(b)terms requiring the carrying out of steps not already commenced or carried out, or
(c)terms requiring acts, matters or things to be done or omitted that are different from acts, matters or things required to be done or omitted by or under this Act or any other Act.
25C Orders for validity of development consents
(1)On application by the Minister or any other consent authority for an order under this subsection on the grounds that the terms specified under section 25B have been substantially complied with and that it is not proposed that the relevant development consent be regranted with alterations, the Court may make an order:
(a)declaring that the terms have been substantially complied with, and
(b)declaring that the consent is valid, and
(c)revoking the order of suspension.
(2)On application by the Minister or any other consent authority for an order under this subsection on the ground that the terms specified under section 25B have been substantially complied with and that the development consent has been regranted with alterations as referred to in section 103 of the Environmental Planning and Assessment Act 1979, the Court may make an order:
(a)declaring that the terms have been complied with, and
(b)declaring that the development consent has been validly regranted, and
(c)declaring that the suspended development consent has been revoked, and
(d)revoking the order of suspension.
31Sections 103 and 104 of the EPA Act provide:
103 Revocation or regrant of development consents after order of Court
(1)This section applies to a development consent granted, or purporting to be granted, by a consent authority, to which an order of suspension applies under section 25B of the Land and Environment Court Act 1979.
(2)The consent authority may revoke a development consent to which this section applies, whether or not the terms imposed by the Court under section 25B of the Land and Environment Court Act 1979 have been complied with.
(3)However, if the terms imposed by the Court have been substantially complied with, the consent authority may revoke the development consent to which this section applies and grant a new development consent with such alterations to the revoked consent as the consent authority thinks appropriate having regard to the terms themselves and to any matters arising in the course of complying with the terms. Such a grant of a development consent is referred to as a regrant of the consent.
(4)No preliminary steps need be taken with regard to the regrant of a development consent under this section, other than those that are required to secure compliance with those terms.
(5)Section 81 and such other provisions of this Act as may be prescribed by the regulations apply to development consents regranted under this section.
104 Appeals and other provisions relating to development consents after order of Court
(1)A development consent declared to be valid under section 25C of the Land and Environment Court Act 1979:
(a)is final and the provisions of sections 97 and 98 do not apply to or in respect of it, and
(b)is operative as from the date the development consent originally took effect or purported to take effect, unless the Court otherwise orders.
(2)A development consent declared under section 25C of the Land and Environment Court Act 1979 to be validly regranted:
(a)is final and the provisions of sections 97 and 98 do not apply to or in respect of it, and
(b)takes effect from the date of the declaration or another date specified by the Court.
32It is clear from the legislative history that these provisions, although in separate Acts, need to be construed together, as Tobias JA observed in Kindimindi Investments Pty Ltd v Lane Cove Council [2007] NSWCA 38, 150 LGERA 333 at [38].
33The mechanism in ss 103 and 104 of the EPA Act and ss 25A-25E of the LEC Act was introduced by the Environmental Planning and Assessment Legislation Amendment Act 1997 (81/1997). As originally enacted, it applied only to development consents by the Minister. It was extended to other consent authorities by the Environmental Planning and Assessment Amendment Act 1997 (152/1997). According to the Minister's Second Reading Speech for the earlier Bill (NSW Legislative Assembly, Parliamentary Debates (Hansard), 28 May 1997 at 9459-9460), the mechanism was aimed at "technical" breaches. After referring to delay caused by "challenging technical points of the process", the Minister said: "Whilst such challenges will still be possible, it will now be equally possible for the Land and Environment Court, should it so choose, to require the rectification of the technical breach, without sending all parties back to square one, as is presently the case, thereby invalidating the whole approval".
34The purpose of this mechanism is to give the Court a discretion designed to save the consent, and an obligation to consider exercising that discretion. Division 3 of the LEC Act, and in particular ss 25B and 25C, amount to a Court-supervised regime designed to effectuate that purpose. In general terms, where the Court exercises its discretion under s 25B, the operation of the existing consent is suspended until such time as, under s 25C, terms specified by the Court have been shown to the Court's satisfaction to be substantially complied with. Only then may effect be given, by declaration, either to the original consent or to a regranted consent with alterations. The statute uses the same concept of validation by declaration in relation to the two variants. The starting point is a development consent which would otherwise be declared to be wholly or partly invalid. The ending point is a development consent which is declared valid or validly regranted. This concept of validation by declaration is comparable to the familiar converse cases (such as the present) where a development consent may be invalid for some reason but the invalidity does not take effect until the Court makes a declaration of invalidity.
35As the heading discloses, the power to make orders under s 25B has two consequences. The immediate consequence is that the operation of the consent is suspended. The potential consequence is that in the event that there is substantial compliance with the terms specified in the order, the consent will be validated.
36However, a validation order under s 25B is futile unless a later s 25C application for a validity declaration is made and granted. An application for orders under s 25B need not be by the consent authority. In contrast, a subsequent application under s 25C must be by the consent authority. In the present case the s 25B application is by the proponent only, and the consent authority has not indicated whether or not it would make a subsequent s 25C application.
37In the s 25B context, there is a distinction between a discrete technical breach, on the one hand, and a breach of a mandatory consideration requirement in s 79C of the EPA Act requiring reconsideration of the whole development application, on the other. In Kindimindi Investments Pty Ltd v Lane Cove Council [2007] NSWCA 38, 150 LGERA 333 (Kindimindi) at [21], Hodgson JA said when speaking of Division 3 of Part 4 of the LEC Act: "The general intention was that technical breaches should be capable of being rectified". This squarely reflects the legislative aim expressed in the Minister's Second Reading Speech quoted above at [33]. The sole issue in Kindimindi was a technical breach: a council requirement was contained in a private deed when it should have been imposed by a condition of the consent. This was clearly an appropriate case for a s 25B order and one was made. At first instance, Kindimindi Investments Pty Ltd v Lane Cove Council [2006] NSWLEC 399, 147 LGERA 118, the primary judge , Lloyd J, whose decision was upheld on appeal, said at [25]:
In the present case the error of the council amounts to a discrete matter of a technical nature which can be considered in isolation from other matters. As I have said before, this was a simple failure to impose a condition to give effect to the council's intention. This is an appropriate case for the application of s 25B and I do so.
38This was noted and approved in Belmore Residents' Action Group Inc v Canterbury City Council [2006] NSWLEC 530, 147 LGERA 226 at [32] - [34] by Talbot J when declining to make a s 25B order in a s 79C EPA Act case.
39However, in Kindimindi Tobias JA went further than Hodgson JA by saying in obiter dicta that s 25B would authorise the imposition of a term requiring a consent authority to consider or reconsider a matter required to be considered by, for instance, s 79C of the EPA Act: at [32] - [33]. His Honour hastened to add that that does not mean that in every s 79C EPA Act case of invalidity, the Court would exercise its discretion under s 25B. He gave as an example Centro Properties Ltd v Hurstville City Council [2004] NSWLEC 401, 135 LGERA 257 where McClellan CJ declined to exercise the s 25B discretion in a s 79C EPA Act case.
40Assuming that s 25B is available in a s 79C EPA Act case, this Court has generally found it inappropriate to make s 25B orders in cases of failure to consider a mandatory matter under s 79C of the EPA Act because balancing and weighing the s 79C matters against all other matters relevant to the consent authority's consideration would necessitate a re-opening of the whole process: Centro Properties Ltd v Hurstville City Council [2004] NSWLEC 401, 135 LGERA 257 at [85] per McClellan CJ (approved in Kindimindi at [33] by Tobias JA); Centro Properties Ltd v Hurstville City Council [2006] NSWLEC 78 at [58] per Talbot J; Belmore Residents' Action Group Inc v Canterbury City Council [2006] NSWLEC 530, 147 LGERA 226 at [33] - [34] per Talbot J; Bungendore Residents Group Inc v Palerang Council (No 4) [2007] NSWLEC 536 at [41] - [42] per Pain J; Hastings Point Progress Association Inc v Tweed Shire Council [2008] NSWLEC 219 at [7] - [10] per Pain J; Aldous v Greater Taree City Council [2009] NSWLEC 17, 167 LGERA 13 at [100] per Biscoe J; Boral Resources (Country) & Cemex Australia Pty Ltd v Clarence Valley Council (No 2) [2009] NSWLEC 133 at [22] - [31] per Pain J; Nambucca Valley Conservation Association v Nambucca Shire Council [2010] NSWLEC 38 at [242] per Biscoe J; Reid's Farms Pty Ltd v Murray Shire Council [2010] NSWLEC 127, 182 LGERA 1 at [130] - [131] per Pepper J.
41Similarly, where there has been a successful challenge to a development consent on the basis of denial of procedural fairness, it has been held to be inappropriate to make s 25B orders because the whole merit assessment process had miscarried and would have to be redone: Clark & Davis v Wollongong City Council (No 2) [2008] NSWLEC 226 at [26] - [29] per Sheahan J. This Court has also held that s 25B is not available where there has been a complete absence of power to grant a development consent: GPT Re Ltd v Wollongong City Council (No 2) [2006] NSWLEC 401, 151 LGERA 158 at [53] per Biscoe J; NRS Group Pty Ltd v Cowra Shire Council [2008] NSWLEC 156 at [150] per Sheahan J; Aldous v Greater Taree City Council [2009] NSWLEC 17, 167 LGERA 13 at [101] per Biscoe J.
42The framing of a s 25B order in a s 79C EPA Act case is challenging. And difficult obstacles can arise if and when the necessary s 25C application is subsequently made. Both these matters are illustrated by the Mid Western case: Mid Western Community Act Group Inc v Mid-Western Regional Council [2007] NSWLEC 411 (Mid Western No 1) and Mid Western Community Action Group Incorporated v Mid-Western Regional Council (No 2) [2008] NSWLEC 143 (Mid Western No 2).
43In Mid Western No 1, the consent authority breached clauses of a local environmental plan by not making a prescribed assessment and thus was in breach of ss 76A(1) and 79C(1)(a)(i) of the EPA Act: at [39]. Given the view expressed by Tobias JA in Kindimindi (decided a few months earlier), Jagot J concluded that if satisfactory orders under s 25B of the LEC Act could be crafted, then such orders should be made, failing which she should declare the consent invalid: at [49]. Her Honour said at [48]:
...My preliminary view is that a satisfactory order would need to suspend the operation of the current consent pending compliance with terms under which the Council was required to assess the development as now proposed to be carried out against cll 27(3) and (4) of the LEP and, in so doing, to take into account any other relevant matter under s 79C(1) of the EPA Act and decide whether to revoke or regrant the consent with or without alterations. Further, at present, I can see no reason in principle not to require the development as proposed to be renotified as part of this process, having regard to the objects of the EPA Act to encourage public participation (s 5(c)).
44Jagot J directed the parties to file their suggested s 25B orders. Subsequently, her Honour was persuaded to make s 25B orders. They do not appear in her judgments but I have inspected them on the Court file. Since they are not easily accessible and illustrate the complexity of such orders in a rare case where they have been made in the s 79C EPA Act context, I will set them out, as follows:
1.Until further order, the operation of the whole of the consent to Development Application No. 164/2007 (Development Consent) is suspended. For the purpose of this Order, the Development Applicant [sic] shall be taken to include the plans referred to in Schedule A.
2.Compliance with the following terms will validate the Development Consent (whether without alterations or on being re-granted with alterations):
(a)The First Respondent renotifies the Development Application by:
(i)placing an advertisement in the Mudgee Guardian newspaper substantially in the form of the advertisement in Schedule B;
(ii)making the Development Application and all accompanying documents available for inspection for a period of not less than 14 days from the date of the advertisement referred to in order 2(a) at the First Respondent's chambers.
(b)After the expiry of the period referred to in paragraph 2(a)(ii) above, the First Respondent, as soon as reasonably practicable:
(i)makes, in accordance with clause 27(3) of the Mudgee Local Environmental Plan 1998, an assessment of the extent to which the carrying out of the development in accordance with any consent granted to the Development Application would affect the historic, social, architectural or aesthetic significance of the Church Street and Market Street streetscape and any heritage items in that vicinity;
(ii)makes, in accordance with clause 27(4) of the Mudgee Local Environmental Plan 1998, an assessment of the style, size, proportion and position of the building, including openings for windows and doors, the pitch and form of the roof and the colour, texture, style and type of finish of the materials to be used on the exterior of the building;
(iii)in undertaking the assessment set out in order 2(b)(i) and (ii), takes into consideration any relevant submissions received as a result of the re-notification of the Development Application and any other relevant matter under s 79C(1) of the Environmental Planning and Assessment Act 1979 (NSW); and
(iv)after taking the steps set out in order 2(a) and 2(b)(i) to (iii), does not resolve to revoke the Development Consent pursuant to s 103(2) of the Environmental Planning and Assessment Act 1979 (NSW) and resolves to make an application under s 25C(1) or 25C(2) of the Land and Environment Court Act 1979 (NSW).
3.Grant liberty to the parties to apply on 7 days' notice.
45In Mid Western No 2 at [50] Jagot J, on the consent authority's motion under s 25C: (a) declared that the terms in Order 2 had been complied with; (b) declared that the development consent had been validity regranted; (c) declared that the development consent suspended by Order 1 had been revoked, and (d) ordered the revocation of the order of suspension in Order 1. Along the way her Honour had to confront the obstacle of the applicant's opposition to the making of these further declarations and order on the ground the decision to regrant the development consent was vitiated by matters constituting legal error or, alternatively, that these matters warranted the Court exercising its discretion and refusing the declarations and order sought.
46So far as I am aware, Mid Western is one of only two cases in which the Court has made s 25B orders in a s 79C EPA Act case. The other is Western Sydney Conservation Alliance v Penrith City Council [2011] NSWLEC 244 at [109] - [111] per Moore AJ. His Honour appears to have been influenced by the fact that the matter which had not been considered in the context of the relevant development applications had nevertheless been considered as a planning matter for over two decades, and therefore there was a real prospect that, upon reconsidering it, the council would reach the same result, approval on the same basis as before. The consequential s 25B orders were to the effect, first, that the consents be suspended in part and, secondly, that the consents be validated upon consideration of that matter. The form of the latter order would not, I think, have been accepted by Jagot J in Mid Western, having regard to her Honour's quoted dicta at [43] above, and, with respect, I would side with Jagot J. However, the orders made by Jagot J were not drawn to the attention of Moore AJ.
47The proponent proposes s 25B orders to the following effect:
(1)until further order, pursuant to s 25B(1)(a) an order suspending the operation of the development consent except for all works identified as Stage 1 and Stage 2 of the consent together with the use of those works pursuant to the development consent; and
(2)pursuant to s 25B(1)(b), an order that compliance with the following terms will validate the consent:
(a)that the Council take into account the impact of the bridge upon the EEC;
(b)that the Council determine whether the construction of the bridge will impact upon the EEC; and
(c)if that determination is in the affirmative, whether, having regard to the extent of that impact, the Council considers that:
(i)the consent should be affirmed;
(ii)the consent should be affirmed with alterations and, if so, the terms of such alterations;
(iii)if so, whether the Council intends to re-grant the consent with alterations; or
(iv)the consent should be revoked.
48It may be noted that the proponent's proposed orders would permit continuation of construction of Stage 2, which is not due for completion until April 2012: see [21(c)] above.
49The proponent relies on the following evidence:
(a)On 28 May 2009 a Review of Environmental Factors relating to the construction of the bridge was submitted to the Council. This was made before the grant of the development consent in June 2009. It relied on an engineering report, including engineering drawings detailing the construction of the bridge, and a Vegetation Management Plan.
(b)The Review of Environmental Factors was the subject of consideration and feedback from the Council in July 2009.
(c)The proponent's ecological expert has undertaken ecological assessments for impact upon the EEC, which assessments have been provided to the Council.
(d)The applicant's ecological expert, Dr David Robertson, has considered the material prepared by the proponent's consultants and in a joint expert report has expressed the opinion that:
I believe that the culvert can be installed with minimal vegetation clearance. I agree that clearing in the creek line is not consistent with conservation of an endangered ecological community. However, the revegetation of the creek reserve on the school site with native plants will help to address the current state of degradation of the creek.
(e)Dr Robertson has also stated:
The impacts of the current proposal have been adequately investigated and assessed by [Ms Rawling]. VMP and supplementary investigations provided to [Dr Robertson] after his affidavit was sworn.
(f)In July 2011 the proponent submitted to the Council a Review of Environmental Factors for the purposes of the Part 5 assessment of the bridgeworks.
(g)On 12 and 17 August 2011 the "draft Part 5A Approval" letters, discussed above, were written by a Council officer.
50On the basis of this evidence, the proponent submits that even on the approach of the applicant's consultant, the construction of the bridge is unlikely to have any significant detrimental impact upon the EEC; and, secondly, there is, viewed objectively, utility in making a s 25B order.
51I do not consider a s 25B order to be an appropriate course in this case mainly for the reason often given in s 79C EPA Act cases referred to at [40] above. It is difficult to see a large difference between the consequences of making a s 25B order in a s 79C EPA Act case, on the one hand, and, on the other, declaring a consent to be invalid resulting in the submission and consideration of a new development application which may be substantially similar to that which has been invalidated. The former scenario would require a general opening up of the decision-making process, and a weighing and balancing of the consideration of the effect of the bridgework on the EEC against all other relevant matters, which may or may not lead to confirmation of the original decision. The latter would entail a similar process of weighing and balancing which may or may not lead to consent. In the case of technical breaches, the difference is more readily comprehensible. Taking this into account, and the complexities associated with the making of a s 25B order in a s 79C EPA Act case, it is more appropriate that the Council in this case consider all the relevant material afresh.