(3) After deciding the question the subject of such an appeal, the Supreme Court may, unless it affirms the decision of the Tribunal on the question:
(a) make such order in relation to the proceedings in which the question arose as, in its opinion, should have been made by the Tribunal, or
(b) remit its decision on the question to the Tribunal and order a rehearing of the proceedings by the Tribunal.
28 In Smith & Anor v Collings Homes Pty Ltd & Anor [2004] NSWCA 75, Mason P considered that (at [23]),
This provision does not state that the appellate jurisdiction is engaged merely because the appeal involves a question of law or an assertion of error of law on the Tribunal's part. It seems to me that it is much narrower, although it is ultimately unnecessary to express concluded views on the matter.
29 Although he acknowledged that there was "some uncertainty" about this (at [24]), Mason P went on to say (at [25]),
Apart from the very language of the sub-section, it is to be observed that the very presence of s 65, which provides for judicial review if there is excess of jurisdiction or denial of procedural fairness, provides additional support for a narrower, literal reading of s 67.
30 It was not necessary, in the circumstances of that case, for Mason P to elaborate on the precise scope of this "narrower, literal reading" of s67.
31 In an earlier judgment of the Supreme Court, Custom Credit Corporation (in Liq) v Commercial Tribunal of NSW [1999] NSWC 1021, Greg James J discussed s20(5) of the Commercial Tribunal Act 1984, which spoke in the same terms as s67(1) of the Tribunal deciding "a question with respect to a matter of law". At [89] he cited the remarks of Carruthers J in Canham & Ors v Australian Guarantee Corporation Limited & Anor (1990) ASC ¶55-984 (at 58,923),
It is, I think, appropriate that I express my views upon the meaning of the phrase "a question with respect to a matter of law". Despite arguments both by the plaintiffs and AGC to the contrary, it is my view the draftsman intended this phrase to encompass nothing more than a pure question of law.
32 Greg James J then went on to say (at [94]):
[94] The language employed in s.20(5) is in marked contrast to familiar provisions conferring a right of appeal on law and particularly having regard to that contrast, I am not satisfied that there is provided some form of generalised administrative review by this court of the ultimate decision in some general context of examining the legal principles applied expressly or implicitly. I consider it will at least be necessary for a party to avail itself of the appeal right afforded by s.20(5) to articulate a precise question relating to a matter of law, to show how the decision of it, whether express or implicit, was integral to the conclusion and why that decision was wrong . …
…
[108] … Given that the decision may be implicit rather than express and isolated … nonetheless any error of this kind must be capable of being clearly identified as a legal error for the reasons I have given.
[Emphasis added for later reference]
33 Mason P, in Smith, cited this decision without relevant comment.
34 In the present case, the Tribunal implicitly decided questions of law and did so erroneously.
35 First, in taking the Zurich cross-claim into account as a reason for transferring the proceedings, the Tribunal implicitly decided that the cross-claim had at least an arguable basis in law. Otherwise, there was no point in making a transfer order to enable it to be dealt with. Counsel for Zurich in the appeal could say nothing justifying the claim. It had no arguable basis in law.
36 Ideal's notice of motion for orders which came before the Tribunal on the same day provided the second reason for the transfer order.
37 Order 1 in the notice of motion would have secured the joinder of all members of the class of persons mentioned in the order as respondents to Ideal's claim for $1,047. On the hearing of the appeal, Ideal's solicitor said that would have involved thousands of individuals. There could be no cause of action against such persons as respondents to Ideal's claim. Ideal's solicitor could say nothing to support the making of such an order. The claim was bizarre. By taking the claim for that order into account as a claim requiring determination on its merits, the Tribunal implicitly decided that the claim for the order had at least an arguable basis in law. It did not.
38 Order 2 in the notice of motion challenged Zurich's entitlement to sue in the name of Buildcorp. Ideal had no standing to take that point. It was wrong anyway: Zurich, having paid Buildcorp out, was entitled to subrogation to Buildcorp's rights whether liable under the policy or not. Ideal's solicitor conceded as much on the hearing of the appeal.
39 By taking the claim for that order into account as a claim requiring determination on its merits, the Tribunal implicitly decided that the claim for the order was at least arguable. It was not.
40 Order 3 related to Zurich's cross-claim. It required determination only if Zurich's cross-claim was given credence. By taking the claim for order 3 into account, the Tribunal again implicitly decided that the cross-claim had at least an arguable basis in law, which it did not.
41 Order 4 was framed as a direction for particulars. Such a direction would only have been given if there was an issue to be tried in relation to which particulars were required. By taking the claim for this order into account, the Tribunal implicitly decided that there was an issue to be tried which had a basis in law. There was not for the following reasons.
42 Buildcorp's claim was not a claim for payment under a contract for residential building work within the meaning of s92 of the Home Building Act 1989. It was a claim for damages for allegedly defective work. If the construction of s92 contended for by Ideal's solicitor were correct, a householder could not claim damages against a builder for defective work unless the householder had insurance in the prescribed form. Section 94(1A) puts the matter beyond argument: the distinction between contract price and quantum meruit is irrelevant to a claim for damages for defective work.
43 Furthermore, it is apparent that, if the claim for Order 4 was well-founded, the order could as readily have been made by the Tribunal as by the District Court. No jurisdictional problem arose in relation to the claim for this order.
44 The appeal against the order transferring the proceedings to the District Court should accordingly be allowed.
45 Pursuant to s67(3)(a) of the CTTT Act, this court has power to substitute such order in relation to the proceedings in the Tribunal as, in its opinion, should have been made. The reasons provided by the Tribunal for transferring the proceedings to the District Court were wrong. All of the claims which it held it did not or might not have jurisdiction to decide were doomed to fail. Transferring the proceedings to the District Court so that such claims could be heard and determined served no purpose beyond a determination by the Tribunal that it had no jurisdiction to determine them.
46 The only reason which counsel for Zurich and Buildcorp could advance, on the hearing of the appeal, to justify the transfer order was the perceived prospect that Ideal would continue to disrupt the proceedings in the Tribunal by raising issues which the Tribunal had no jurisdiction to decide.
47 As to that, the parliament has constituted the Tribunal with limited jurisdiction. From time to time, the Tribunal will have to decide whether it has jurisdiction to hear and determine a matter. That is part of its role. The prospect that the Tribunal may be called upon to fulfil that role in a particular matter is not a good reason for transferring a case to the District Court. It is only where there are bona fide claims genuinely requiring determination and which cannot be decided by the Tribunal that a transfer of proceedings is warranted.
48 Having regard to these considerations, there should be a substituted order that the transfer application be dismissed.