HEADNOTE
[This headnote is not to be read as part of the judgment]
The respondents (the owners) in this proceeding are the owners of a property in Vaucluse, Sydney, who sought development approval to demolish an existing dwelling and to erect a new dwelling with one storey at the front and three stories at the rear, a swimming pool and a sauna. Development consent was refused by the Woollahra Municipal Council (the Council) and the owners appealed to the Land and Environment Court. Following a mandatory conciliation conference, the owners and the Council reached agreement and the Court gave effect to the agreement by an order granting consent to the proposal. Five neighbours, who had lodged objections to the proposed development, sought judicial review of the Court's order.
The proceeding in the Land and Environment Court commenced at the site of the proposed development on 9 June 2022. The hearing was conducted by Commissioner Espinosa. Although they were not parties to the proceeding, the neighbours, with their experts and lawyers, were present and were able to explain their objections to the proposal to the Commissioner. The following day the conciliation conference commenced with only the parties, that is the owners and the Council, present. An in-principle agreement was reached, followed by further negotiations, and the preparation of terms and conditions which were to form the basis of consent orders. The neighbours were unhappy with the outcome, but, not being parties to the proceeding, they had no right of appeal in the Land and Environment Court. They sought to challenge the outcome by way of judicial review, pursuant to s 69 of the Supreme Court Act 1970 (NSW).
In disposing of the proceedings to reflect the agreement reached between the parties the Commissioner was obliged to give effect to the agreement, so long as the decision "was one that the Court could have made in the proper exercise of its functions": Land and Environment Court Act 1979 (NSW) (Court Act), s 34(3).
The grounds of review raised the following issues, namely whether the Commissioner:
(1) failed to consider terminating the conciliation conference;
(2) denied the applicants procedural fairness by not addressing their concerns;
(3) failed to take into account an amendment to the local environmental plan;
(4) granted a consent which was legally uncertain.
The Court (Basten AJA, Payne JA and Kirk JA agreeing) dismissed the summons for review, holding:
As to terminating the conciliation conference:
(1) Section 34AA(3) of the Court Act conferred power on the Commissioner to terminate the conciliation conference, thus qualifying the mandatory nature of the process, but imposed no duty to terminate or consider terminating the conciliation conference. In circumstances where the applicants conceded that the circumstances did not give rise to a duty to terminate, it is neither necessary nor appropriate to explore the circumstances in which the power to terminate under s 34AA(3) might or should be exercised. There would need to be unusual circumstances which would require the Commissioner to terminate without a request from a party: [29]-[31].
Macedonian Orthodox Community Church St Petka Inc v His Eminence Petar The Diocesan Bishop of the Macedonian Orthodox Diocese of Australia and New Zealand (2008) 237 CLR 66; [2008] HCA 42 applied
(2) In any event the factual premise of the ground was not established. The Commissioner was aware that the applicants had written to the Council seeking termination, in which circumstance it should not be inferred that the Commissioner did not consider the possibility of termination: [32].
As to procedural fairness:
(3) The High Court has held that reference to "legitimate expectations", as an element of procedural fairness, should be eschewed: [35]. In this case, the applicants subjective beliefs were irrelevant: [42].
Minister for Immigration and Border Protection v WZARH (2015) 256 CLR 326; [2015] HCA 40 applied; Re Minister for Immigration and Multicultural and Indigenous Affairs; Ex Parte Lam (2003) 214 CLR 1; [2003] HCA 6 considered
(4) Procedural fairness requires that a person who may be adversely affected by a decision should have an opportunity to be heard. The content of the obligation depends on the statutory context. In the present circumstances, the statutory context includes the objective of providing "increased opportunity for community participation in environmental planning and assessment". That purpose was effected by giving the applicants notice of the development proposal, an opportunity to make submissions to the Council and an opportunity to explain their objections at the on-site inspection: [37]-[39].
Environmental Planning and Assessment Act 1979 (NSW), ss 1.3(j);
Morrison Design Partnership Pty Ltd v North Sydney Council [2007] NSWLEC 802; 159 LGERA 361 applied
(5) Procedural fairness is an obligation owed by the court to the parties, as is the obligation to consider material before the court. The applicants raised no case that these obligations were breached, except to the extent that they challenged the Commissioner's understanding of her function under s 34(3) of the Court Act: [50].
(6) The constraint under s 34(3) of the Court Act that the agreed decision must be "one that the Court could have made in the proper exercise of its functions" engages a consideration of any jurisdictional constraints on the power of the Court to make the order. It reflects the general law principle that parties cannot confer jurisdiction on a court or tribunal by consent. A Commissioner presiding over a conciliation process is not required to make an independent determination on the merits. Nor does reference to the "proper exercise of its functions" have that consequence: [4]-[6] (Kirk JA); [62]-[65]; [67]-[80].
Australian Railways Union v Victorian Railways Commissioners (1930) 44 CLR 319; [1930] HCA 52; Thomson Australian Holdings Pty Ltd v Trade Practices Commission (1981) 148 CLR 150; [1981] HCA 48 referred to; Al Maha Pty Ltd v Huajun Investments Pty Ltd [2018] NSWCA 245; 233 LGERA 170; AQC Dartbrook Management Pty Ltd v Minister for Planning and Public Spaces (2021) 105 NSWLR 152; [2021] NSWCA 112 followed; El Khouri v Gemaveld Pty Ltd [2023] NSWCA 78 explained
Failing to take into account an amendment to the local environmental plan
(7) Although the Commissioner did not refer to an amendment made to cl 6.2 of the Woollahra Local Environmental Plan 2014, which had application, it merely introduced matters for evaluative consideration by a consent authority, and not a jurisdictional constraint. In any event, the Commissioner referred to the substantive issues of structural integrity and groundwater: [85].
Granting consent which was legally uncertain
(8) The factual premise for this ground was not made good. In any event, while a consent to a significantly different set of works from those the subject of the development application might be invalid, the claim of inconsistency between a condition of the consent and the plans, as to the location of a stormwater absorption trench failed to engage that criterion: [88].