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[2010] NSWLEC 245
Land and Environment Court (NSW)
2010-11-19
Craig J
Original judgment source is linked above.
CITATION : Jaimee Pty Ltd v Council of the City of Sydney [2010] NSWLEC 245
APPLICANT Jaimee Pty Ltd PARTIES : RESPONDENT Council of the City of Sydney
KEY ISSUES: PRACTICE AND PROCEDURE :- amendment of application made under s 96(1A) of the Environmental Planning and Assessment Act 1979 - power to allow amendment - no provision in Act or Environmental Planning and Assessment Regulation 2000 relating to amendment - contrast cl 55 of Regulation concerning amendment of development application - administrative rigidity preventing amendment not intended by legislation - amendment allowed
Civil Procedure Act 2005, s 56 City of Sydney Section 94C Development Contributions Plan 2006 LEGISLATION CITED: Environmental Planning and Assessment Act 1979 Environmental Planning and Assessment Regulation 2000 Land and Environment Court Act 1979 South Sydney Local Environmental Plan 1998
Ebsworth v Sutherland Shire Council [2005] NSWLEC 603 Ervin Mahrer v Strathfield Council (No 2) [2001] NSWLEC 140; (2001) 115 LGERA 259 Houssein v Under Secretary of Industrial Relations and Technology (NSW) [1982] HCA 2; (1982) 148 CLR 88 Independent Holdings Ltd v City of Adelaide Planning Commission (1994) 63 SASR 318; (1995) 85 LGERA 339 CASES CITED: Johns v Australian Securities Commission [1993] HCA 56; (1993) 178 CLR 408 McDougall v Warringah Shire Council (1993) 30 NSWLR 258 Mirvac Projects Pty Ltd v Ku-ring-gai Council [2007] NSWLEC 540; (2007) 159 LGERA 151 North Sydney Council v Michael Standley & Associates Pty Ltd (1998) 43 NSWLR 468 1643 Pittwater Road Pty Ltd v Pittwater Council [2004] NSWLEC 685 Radray Constructions Pty Ltd v Hornsby Shire Council [2006] NSWLEC155; (2006) 145 LGERA 292
APPLICANT C W McEwen SC SOLICITORS Storey Gough Lawyers LEGAL REPRESENTATIVES:
RESPONDENT C D Norton (Barrister) SOLICITORS Council of the City of Sydney
JUDGMENT: THE LAND AND ENVIRONMENT COURT OF NEW SOUTH WALES
10679 of 2010 JAIMEE PTY LTD v COUNCIL OF THE CITY OF SYDNEY
35 Those observations of the President were taken up by McClellan J, when Chief Judge of this Court, in 1643 Pittwater Road Pty Ltd v Pittwater Council [2004] NSWLEC 685. For reasons then given by his Honour, he decided that an application under s 96 of the Act could be determined by the grant of a conditional consent or approval, notwithstanding the absence of any specific power in the Act or Regulation so to do and not withstanding the provisions of the Act expressly providing for conditions to be imposed upon the grant of development consent: see for example, ss 80 and 80A. The correctness of the decision in 1643 Pittwater Road has not since been questioned in this Court. 36 There are two passages in the judgment in Johns v Australian Securities Commission [1993] HCA 56 (1993) 178 CLR 408 that are relevant for present purposes. The conventional position that pertains when a discretion to exercise authority is given by statute was expressed by Brennan J as follows (at 428-429): "An authority conferred by statute is construed as authorising everything which can fairly be regarded as incidental to or consequential upon the authority itself." 37 The second passage of present relevance from Johns v Australian Securities Commission is from the judgment of McHugh J where his Honour said (at 469-470): "The scope of a statutory power is ascertained 'by the character of the statute and the nature of the provisions it contains' [citation omitted]. When the exercise of a power is left to the discretion of some person, the scope for implementing the power is fettered only by the necessity to maintain consistency with the purpose or purposes of the legislation." 38 Given the discretion that a consent authority has, when determining an application made to it in accordance with s 96 of the Act, I would have thought that the power to determine the application extends to allowing that application to be amended prior to determination. Provided the amendment sought does not convert the original application into a new application, I do not perceive that allowing an amendment would be inconsistent with the purpose of the Act as it addresses the modification of development consent. 39 Furthermore, I do not perceive the inconsistency identified by the Council between the observations made by Talbot J at [29] of his judgment in Mirvac Projects Pty Ltd v Ku-ring-gai Council and the observations made in other cases as to the beneficial and facultative effect of cl 55 of the Regulation. Read, in context, I think his Honour was doing no more than identifying the requirement of cl 55 that the agreement of the consent authority was required to any amendment. In that sense, the requirement for agreement was a constraint. In the absence of such an expressed constraint, an applicant would be entitled to amend provided always that the amendment did not effect change so as to transform that which was originally proposed into a new application. By contrast, the discussion of principle whereby the power is described as "beneficial and facultative" informs the ambit of permissible amendment to which agreement can lawfully be given. 40 However, even if I be wrong in rationalising the observations of Talbot J in Mirvac Projects Pty Ltd v Ku-ring-gai Council, so far as they relate to cl 55, that rationalisation does not impinge upon his Honour's observation that a power to apply would ordinarily include a power to amend. For the reasons that I have indicated, I am of the opinion that this is a correct statement of principle as it applies to the amendment of an application made to modify consent pursuant to s 96 of the Act. In short, I conclude that it was open to Jaimee to amend the application that it lodged with the Council. Power of the Court to allow amendment 41 Having determined that it was open to Jaimee to amend its s 96 application, as lodged with the Council, it is next necessary to determine whether the Court can allow such amendment, with consequential amendment to the Class 1 application. Consideration of this issue also involves consideration of the nature of the amendments sought so as to determine whether the change brought about by the amendment converts the present s 96 application into a new or original application. 42 The powers of the Court in respect of an appeal brought within Class 1 of its jurisdiction include those identified in s 39(2) of the Land and Environment Court Act 1979 (the Court Act). Subsection (2) of s 39 provides as follows: (2) In addition to any other functions and discretions that the Court has apart from this subsection, the Court shall, for the purposes of hearing and disposing of an appeal, have all the functions and discretions which the person or body whose decision is the subject of the appeal had in respect of the matter the subject of the appeal." 43 The provisions of s 39(2) have been the subject of consideration in a number of cases. It is unnecessary to recite all of them. None, in my assessment, diminish the observations of Kirby P (as his Honour then was) in McDougall v Warringah Shire Council (1993) 30 NSWLR 258 where his Honour said (at 264): "My impression of s 39(2) by its language and apparent purpose in the scheme of the Act is that it was intended that the Land and Environment Court be placed fully in the shoes of a council at the time an application is lodged. This impression derives, in part, from the use of the past tense in the word "had", and the fact that s 39(3) of the Land and Environment Court Act directs that an appeal to the Land and Environment Court shall be by way of 'rehearing'. The result of this interpretation is that all the functions and discretions the council could have exercised when considering the application are open to the Land and Environment Court on appeal and not only those strictly necessary to the approval." 44 I have already determined that incidental to the function of determining an application made to it under s 96 of the Act, the Council had power to accept an amendment made by Jaimee to its application. Given the existence of that power on the part of the Council when exercising its function, s 39(2) would seem to provide amply for the power of the Court to accept an amendment made to the s 96 application. That application was for modification of three conditions attaching to the development consent; the amendment proposed is to delete from the application one of the conditions sought to be modified. 45 As I understand the Council's submission, it accepts that if, contrary to its primary submission, it was open to Jaimee to amend its s 96 application prior to determination by the Council, then by force of s 39(2) of the Court Act, it was open to the Court to accept an amendment of the application. So much must follow from the citation by the Council of the decision of Bignold J in Ervin Mahrer v Strathfield Council (No. 2) [2001] NSWLEC 140; (2001) 115 LGERA 259. There, Bignold J discussed the power of the Court to allow amendment to a development application by applying cl 55 of the Regulation. 46 For reasons already identified, the Council submits that as there is no power analogous to cl 55 of the Regulation pertaining to amendment of an application made under s 96 of the Act, s 39(2) of the Court Act cannot itself be the source of such a power. I have already determined that Jaimee's application was capable of lawful amendment independently of s 39(2). By parity of reasoning, it is therefore open to the Court to allow an amendment to be made to the application in reliance upon s 39(2). 47 Mr C W McEwen SC, on behalf of Jaimee, submitted that s 68 of the Court Act was also a source of power upon which reliance could be placed to allow the amendments sought. For its part, the Council submitted that the section provided no foundation for the amendments sought, having regard both to the terms of the section itself and its rejection as a source of power to amend a development application by Bignold J in Ervin Mahrer v Strathfield Council (at [54]). Given my determination that an amendment is open to be made and accepted independently of s 68, it is unnecessary that I express a concluded view as to the ambit of the power available under s 68. However, a question related to that power, as well as the power available to allow an amendment of the original application in the course of an appeal under s 96(6), is required to be acknowledged. 48 It can be accepted, as the Council contends, that it is not open to the Court to entertain what is tantamount to a new application. It is the determination, actual or deemed, by the consent authority, of the application made by an applicant that founds the jurisdiction of the Court to entertain an appeal, in this case under s 96(6) of the Act. The Council contends that by amending the s 96 application so as to remove Condition 7 from consideration, the application is so changed that it cannot be considered to be the application considered by the Council and therefore is not an application in respect of which an appeal could be brought under s 96(6). 49 I do not agree. The application for modification made to the Council by Jaimee related to three disparate conditions. The fact that two of those conditions determine the quantum of contributions to be made does not deny their description as being disparate. Each of them was dependant upon a different source of power; in the case of Condition 7 it was cl 27P of South Sydney Local Environmental Plan 1998, while in the case of Condition 8 it was s 94 of the Act. 50 Amendment of the application by removing one of the conditions originally sought to be deleted, thereby maintaining the status quo in respect of that condition, cannot, in my opinion, be seen to be formulating a new application. Such an approach accords with the principle summarised by Bignold J in Ervin Mahrer v Strathfield Council where his Honour said (at [78]): "The principle deduced or derived from the decision in Manchil and which has been consistently and often applied by this Court, I think can be aptly formulated as follows: 'Whereas a planning appellate body has no jurisdiction to entertain an original development application, it may in determining an appeal, exercise the power vested in the consent authority to allow an amendment to be made to the development application (that was the subject of that authority's determination and which enlivened the appeal) provided that the amendment does not convert the original concept into something substantially different.'"
The amendment sought by Jaimee cannot properly be regarded as converting its original s 96(1A) application into something "substantially different". 51 For these reasons, I consider that the Court has the power to allow the amendment that Jaimee seeks to make to its s 96(1A) application. Amendment of the Class 1 application 52 It seems to me that if, as I have determined, it is open in these proceedings to permit amendment to the application first lodged with the Council, it is open to allow the initiating process lodged in this Court, namely the Class 1 application, to be amended so as to reflect amendment to the application that provides the foundation for the present proceedings. Nonetheless, the Council argues against this course being taken. 53 It seems to do so on a basis that varies little, if at all, from the basis upon which it opposes amendment to the s 96 application. It submits that the underlying application is a new application and therefore the Court cannot sanction amendment of its process so as to entertain what amounts to a new application. I have already addressed this submission and rejected it. 54 The Council next asserts that to allow the amendment sought to the Class 1 application would be to permit an appeal against part only of the Council's determination. That, so it submits, is not permissible. 55 Expressed at that level of generality, I do not accept it to be a correct statement as to the operation of either the provisions of s 96(6) or the provisions of the Court Act, at least as they apply to the present circumstances. It will be remembered that the Council had refused to accede to Jaimee's application to delete Condition 7. The relevant amendment sought to the Class 1 application is to identify as the decision appealed against the refusal by the Council to modify Condition 8 of the development consent. Given that the conditions sought to be modified were disparate in their operation, I see no reason, in principle, why an applicant cannot accept a refusal to accede to its application in one respect but seek to sustain an appeal by indicating dissatisfaction with a determination of the Council in respect of a disparate condition. 56 This position is in marked contrast to that which pertains in respect of a development consent that has been granted subject to conditions, one or more of which are conditions with which an applicant expresses dissatisfaction. In that circumstance, the conditions cannot be separated from the consent itself, the conditional permission given to carry out development being an integrated whole, with the consequence that any appeal pursuant to s 97 in those circumstances may properly involve consideration of the grant of the consent itself along with those conditions that are in contention. 57 I am satisfied that there is power in the Court to allow the Class 1 application to be amended in the manner in which Jaimee proposes in its amended application Class 1 dated 1 November 2010. Order 2 of the orders sought in that application may require modification in light of the observations contained in the Council's outline of submissions (at paragraph 21) but that is a matter which can be addressed at the substantive hearing. Discretion to allow the amendments sought 58 If, as I have determined, there is power to amend both the s 96 application and the Class 1 application to this Court, it is nonetheless necessary to consider whether, in the exercise of discretion, those amendments should be allowed. In my opinion they should. 59 The hearing of this matter has not yet been fixed. The purpose of the amendment is to reduce the issues that would otherwise be litigated between the parties. While the Council's submissions in this regard seem, in a sense, to be contradictory, in that it opposes the amendments that have been sought on the basis that it may be denied an opportunity to argue an issue that it wishes to argue, yet it seeks to maintain that even if the amendment is allowed it will still seek to advance an argument founded upon Condition 7. This said, I am satisfied that applying the guiding principles identified in Division 1 of Pt 6 of the Civil Procedure Act, it is appropriate to allow the amendments sought as they have the capacity to reduce the time of hearing and the costs occasioned to the parties involved in litigating the real issues that remain between them. 60 The extent to which Condition 7 is relevant to be agitated can be considered once the Council has filed an Amended Statement of Facts and Contentions responsive to those that I propose to allow for the applicant. As I have earlier indicated, the Council raises no objection to the amendment of the applicant's Facts and Contentions as they have been tendered before me as Exhibit A. Orders 61 The orders that I make are therefore as follows: 1. I give leave to the applicant to amend its Application for Modification made under s 96(1A) of the Environmental Planning and Assessment Act 1979 by removing from that application so much of it as seeks the deletion of Condition 7 of the development consent granted on 20 May 2010 in relation to the property known as 21 Collins Street, Alexandria. 2. I grant leave to the applicant to amend its Application Class 1 so as to rely upon the form of application entitled 'Amended Application Class 1' dated 1 November 2010 and filed in the proceedings. 3. I give leave to the applicant to rely upon the document entitled Amended Applicant's Statement of Facts and Contentions dated 15 November 2010 and filed in Court on 19 November 2010. 4. The applicant is to pay the respondent's costs of its motion for amendments in accordance with Orders 1, 2 and 3 unless within 7 days it notifies the Registrar by letter of its wish to argue costs, in which event it must file and serve with its letter an outline of the submissions it wishes to make in opposing such an order. **********
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Jaimee Pty Ltd
Council of the City of Sydney
[1982] HCA 2
(2001) 115 LGERA 259
(1982) 148 CLR 88
(1994) 63 SASR 318
(1995) 85 LGERA 339
(1993) 178 CLR 408
(1993) 30 NSWLR 258
(2007) 159 LGERA 151
(1998) 43 NSWLR 468
(2006) 145 LGERA 292