[2016] VCAT 79
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2016-01-12
Original judgment source is linked above.
The Water Act Claim
(a) In 2011 Mr Miglas had some work done to lot 3 to build another wall on the eastern boundary and to provide car parking. The excess fill from the construction of the wall was left uncompacted on the eastern side of the common property driveway. Rain water carried some of the loose fill to the open drain and silted it up, so that it blocked the drain.
(b) In 2013 Mr Miglas built a rock wall along the fence line, over part of the drain. Although Mr Miglas' contractor proposed to lay a pipe beneath the wall so that there would still be an effective drain, Mr Miglas took away the pipe.
(c) In 2014 Mr Miglas removed the rock wall but filled up the area where the drain had been, and placed a rock near the fence line and the gate from the driveway into lot 2, causing water to be diverted onto the driveway and into lot 2.
(a) a person interferes with a reasonable flow of water onto any land or by negligent conduct interferes with a flow of water onto any land which is not reasonable; and
(b) as a result of that interference water causes -
(ii) damage to the property (whether real or personal) of any other person; or
the person who interfered with the flow is liable to pay damages to that other person in respect of that injury, damage or loss.
(1) The Tribunal has jurisdiction in relation to all causes of action (other than any claim for damages for personal injury) arising under sections 15(1), 16, 17(1) and 157(1) of this Act ...
(3) In exercising jurisdiction conferred by subsection (1), the Tribunal -
(ab) may make an order for payment of a sum of money awarding damages in the nature of interest; or
20 Matters to be taken into account in determining whether flow is reasonable or not reasonable
(1) In determining whether a flow of water is reasonable or not reasonable, account must be taken of all the circumstances including the following matters -
(a) whether or not the flow, or the act or works that caused the flow was or were authorised;
(e) the uses to which the lands concerned and any other lands in the vicinity are put;
(a) In his verified witness statement Mr Woollard gave evidence, again uncontradicted, that in July 2011 several truckloads of fill were dumped in lot 3 near the eastern side of the common property driveway during the course of construction of a wall, that silt from the fill was carried into the open drain, that the drain became blocked with silt and that water flooded across lot 2 instead of being carried by the drain.
(b) An annual general meeting of the owners corporation was held on 26 February 2013. Mr Woollard and Mr Miglas were present at the meeting. According to minutes of the meeting (apparently prepared in Mr Miglas' office, because the minutes were headed in a way that recorded the office's email address), 'general business' at the meeting included the following:[57]
The owners of Lot 2 had expressed their concern that the clean fill had been unsightly, and should be leveled out. Also pointed out was the fact that the un-compacted fill in heavy rain was subsequently washing into and blocking the drainage system on Lot 2.
James & Phillip offered to level out the fill at their expense provided they have permission to do so as it is private land.
Anatol assured the meeting that action would be taken to remedy the situation.
That entry in the minutes appeared to have recorded Mr Miglas' acknowledgment that uncompacted fill had been washing into and blocking the drain.
(c) In his report Mr Wenning accepted that the placement of fill material on lot 3 caused siltration of surface water flows. He went on to say in his report that he did not believe that the siltration caused an increase in the flow of water, but during cross-examination he agreed that he had not been made aware of the existence of the open drain and that fill which was left unstabilised would result in siltration that could block an open drain.
If I cause something to be done it is as if I have done it myself and if it causes damage it is no answer for me to say to the person who suffered that damage: "I did it using an independent contractor."[61]
The Senior Member went on to distinguish the Trycala decision on the basis that, in that case, there was no allegation that the occupier had caused or instructed the contractor to deposit the dirt where it did and that the case that the applicant put was consistent with the contractor merely having done it 'incidentally'.[62]
The excavator operator went and bought a pipe to put in the existing drain where the rock wall was going to go on top. James then offered to install a pit on Lot 3 however the excavator said don't worry about a pit and that he would ensure that there was still adequate drainage under the rock wall. However the excavator told James the next day when putting in the rock wall that Anatol had taken out the drain pipe that had been purchased for this purpose.
The natural water course has been totally altered by excess spoil and fill being placed outside property on eastern wide of driveway. This has caused storm water to be diverted out onto the driveway and into Factory 2.
To rectify problem a 900mm & 600 mm pit needs to be constructed in the centre of drive at property entrance. A cut off / aggy drain needs to be installed from pit to south east corner of property.
The quotation was for $7,810.00 for the cost of removing concrete, constructing the pit, installing the drain and reinstating the concrete.
The solution proposed by Piping Hot Plumbing would partially intercept sub-soil water and surface stormwater along the northern boundary of Unit 3. However, due to the topography of the property, and gradients in the common driveway, I do not believe that the solution proposed by Piping Hot Plumbing would satisfactorily intercept all overland flows for a rainfall event with an Average Recurrence Interval ≥ 10 years for 5 minutes which for Montrose is approximately 100 mm/h.[66]
The Quote / Stormwater Report of Piping Hot Plumbing does not contain any assessment of the condition or capacity of the existing drainage facilities. For the most part, the solution proposed by Piping Hot Plumbing would intercept the flows at a higher level in the stormwater drainage system, and not provide or add any additional capacity to stormwater drainage that the Applicant claims now floods on Unit 2.[67]
By his saying that the proposed works would intercept the flows 'at a higher level' I have taken Mr Wenning to mean that there would be a pit at the point where the driveway meets lot 2, further to the south than the existing pit within lot 2.
Mr Jolson submitted that the concept of damage under the Act was not limited to actual quantifiable damage to property. I did not understand Mr Jolson to be submitting that that remedy was available where, as here, no actual damage (absent a claim for injury or loss) was found by the Tribunal to have taken place.
(a) There should be a declaration that the wings of the square are common property.
(b) Mr and Mrs Miglas should be ordered to remove from the wings the barricades which obstruct them, but nothing in the order should require them to move the feet of the hopper.
(c) The owners corporation should be ordered to lodge with the Registrar of Titles another amending plan of subdivision which:
(i) describes the common property, and the boundaries between lot 3 and the common property, in the same way as I have determined they should be described; and
(ii) removes any reference to upper and lower boundaries to any of the lots.
(d) All other claims, including the Water Act claim, should be dismissed.
[1] The plan of subdivision was registered under the Strata Titles Act 1967, so the individual parcels of land (other than common property) shown on the plan were called units, as provided for in that Act.
[2] The amended plan was registered under the Subdivision Act 1988, so the individual parcels of land (other than common property) shown on the amended plan were called lots, as provided for in that Act.
[3] Section 162 defines 'an owners corporation dispute' in such a way that it includes a dispute or matter relating to an alleged breach of the rules of the owners corporation. The model rules set out in Schedule 2 of the Owners Corporations Regulations 2007 prohibit a lot owner or occupier from obstructing the lawful use and enjoyment of the common property by any person entitled to use the common property. There was no dispute that the rules of the owners corporation involved in this proceeding are the model rules.
[4] Section 19 of the Water Act provides that the Tribunal has jurisdiction in relation to all causes of action arising under s 16 (amongst others).
[5] The Tribunal book was received as Exhibits H and 5. Mr and Mrs Miglas agreed that all of the documents in the Tribunal book that were referred to in evidence could be treated as part of the evidence, but did not agree that all other documents in the Tribunal book were necessarily part of the evidence. I do not think that there is any dispute that each document in the Tribunal book to which I refer in these reasons became part of the evidence by virtue of the tendering and receipt of the Tribunal book.
[6] Certificate of Title volume 9692 folio 802.
[10] Sheet 3 of the 1988 plan (Tribunal book p 133) contained a schedule of unit entitlement and unit liability. It specified that unit 1 had 520 points out of 720 and that unit 2 had 200 points out of 720. In these two proceedings nothing turns upon the difference in unit entitlement or upon what became lot entitlement for lot 2 and for other lots.
[11] Subdivision Act 1988 Schedule 2 clause 2(1)(a), (c) and (d).
[18] Subdivision Act Schedule 2 clause 3(2).
[19] In 2005 the section of the Subdivision Act which so provided was s 28(d) and (e). Following amendment to the Act in 2006 the sections which now so provide are ss 30(1)(a) and 31.
[21] See footnotes 12, 18 and 19 above.
[28] There was no evidence of who prepared the documents, but they appear to have been prepared by someone with legal knowledge or clerical skill, or with both.
[31] Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 at 180-181.
[32] The Amended Points of Claim in proceeding OC2345/2014 made those allegations in paragraphs 10-13. The Tribunal book pp 27-46 included the Amended Points of Claim.
[34] Tribunal book pp 184-248, especially p 215.
[36] (1866) LR 1 HL 129 at 140-141.
[37] Amalgamated Investment & Property Co Ltd v Texas Commerce International Bank Ltd [1982] 1 QB 84 at 103, per Robert Goff J.
[38] (1866) LR 1 HL 129 at 170-171.
[40] [1982] QB 133 at 151-152.
[43] Inwards v Baker [1965] EWCA Civ 4; [1965] 2 QB 29 at 37.
[44] ER Ives Investments Ltd v High [1966] EWCA Civ 1; [1967] 2 QB 379.
[45] [1967] 1 QB 379 at 392.
[46] [1966] EWCA Civ 1; [1967] 2 QB 379 at 404.
[47] Meagher, Gummow & Lehane's Equity Doctrines & Remedies, 5th ed, (2015), para [17-130].
[48] Mr Rimmer's submission dated 7 August 2015, especially paragraph 24, but also paragraphs 4(a), (c) and (d), 16 and 22.
[49] Mr Triaca's submission dated 7 August 2015, paragraphs 60 and 67.
[50] Walker & Sopov v Registrar of Titles [2001] VSC 354 at [47].
[51] [2008] VSCA 118; (2008) 20 VR 362 at 374. The other members of the Court of Appeal agreed with the reasons of Dodds-Streeton JA for dismissing the appeal.
[53] Owners Corporations Act 2006 ss 162, 165(1)(a).
[55] Subdivision Act s 32(c), s 34D(1)(a), (2). See paragraphs 21 and 22 above.
[57] Tribunal book pp 263-266, especially p 264.
[61] [2013] VCAT 1748 at [15].
[62] [2013] VCAT 1748 at [16], where the Senior Member cited a passage from the Trycala decision, [2001] VCAT 1445 at [14]. Another decision that Mr Triaca cited, Yarra Valley Water Ltd v Henley Arch Pty Ltd [2009] VCAT 504, can be distinguished in the same way. An occupier of land escaped liability for the consequence of its independent contractor, engaged to install a tree-root barrier, having broken a sewerage pipe and caused a blockage. The breaking of the pipe was not something that the occupier had engaged or instructed the contractor to do.
[68] [1998] VSC 157 at [25], per Balmford J.
[71] Kopitschinski v Song [2007] VCAT 1958.
[72] McGregor on Damages, 14th edition, paragraph [260] cited with approval in J.L.W. (Vic) Pty Ltd v Tsiloglou [1994] VicRp 16; [1994] 1 VR 237 at 241 (per Brooking JA, with whom the other members of the Court of Appeal agreed).
[73] J.L.W. (Vic) Pty Ltd v Tsiloglou [1999] 1 VR 237 (statutory cause of action under s 82(1) of the Trade Practices Act 1974).
Kinson
James & Phillip Woollard Pty Ltd
(2004) 219 CLR 165
(1990) 170 CLR 394
(2008) 20 VR 362