The premises at 61 Rose Street, Wee Waa
10In January 2006, Mr McNeil owned the Property. The Property consists of two separate parcels of land, being Lot 1 in DP 998352 (Lot 1) and Lot 2 in DP 226829 (Lot 2). Lot 1 and Lot 2 together form a rectangle. Lot 2 consists of a rectangular strip at the northwest corner of Lot 1.
11As at January 2006, there was situated on the Property a shop that had been a commercial bakery. The shop faced Rose Street, which is the main street of Wee Waa. Inside the shop was a type of baker's oven known as a "Scotch Oven". Attached to the shop was a residence. Also erected on the Property were an amenities block and a wash house, as well as a separate toilet building. There was also a freestanding shed in the back northwest corner, a small part of which encroached onto Lot 2.
12Mr McNeil's father had conducted a commercial bakery on the Property and Mr McNeil had assisted his father from time to time in that enterprise. The bakery closed in the 1980s but the equipment remained in situ. Mr McNeil's parents continued to reside in the residential part of the building on the Property until the death of Mr McNeil senior in about 2003. Later in that year, Mr McNeil's mother moved into other accommodation in Wee Waa.
13 In October 2003, the Council gave approval for part of the shop building on the Property to be used as a pizza shop and after the approval was given, that part was used for that purpose. However, on 29 January 2006, the part of the building that was being used as a pizza shop suffered damage in a fire. The shop front and the residential part of the building on the Property were largely destroyed by the fire.
14The Council gave to Mr McNeil a clean-up notice under s 91 of the Protection of the Environment Operations Act 1997 (the Protection of the Environment Act). The notice (the clean-up notice), which was dated 7 February 2006, was stated to apply to "the land at Lot 1, DP 998352, 61 Rose Street, Wee Waa". The clean-up notice stated that that land had been contaminated with friable asbestos as a result of fire and required that all current clean-up activities on the site cease and that an appropriately licensed contractor be required to undertake all clean-up works associated with the site. The clean-up notice stated that the clean-up works must commence within 14 days, and that all clean-up activities were to comply with the Protection of the Environment Act, as well as associated regulations and any other relevant statutory requirements. The clean-up notice also stated that failure to comply would result in the Council initiating the appropriate clean-up works and recovery of costs accordingly.
15On 13 February 2006, Mr McNeil's solicitors responded to the clean-up notice, saying that Mr McNeil would require an extension on the time limit for commencement of the clean-up works to arrange the appropriate clean-up facilities. The letter requested that the Council delay any further action until such time as appropriate arrangements had been completed. The letter stated that Mr Neil believed that he "should be aware of the proper facilities to clean up this matter within one month". By letter dated 20 February 2006, the Council responded indicating that remediation of the site must commence prior to 14 March 2006.
16On 14 March 2006, Mr McNeil's solicitors wrote to the Council again, saying that Mr McNeil had made enquiries of contractors authorised to remove friable asbestos and had been informed that a particular contractor currently in the vicinity could not "appropriately remove the asbestos as no suitably licensed vehicle is in this area". On 16 March 2006, the Council replied, saying that an inspection of the site on 15 March 2006 determined that clean-up works had commenced in accordance with the clean-up notice and that no further extension of time was required. However, the letter said that, if remediation of the site did not occur within a reasonable time frame, as determined by the Council, further requirements may be placed on Mr McNeil. By letter of 4 April 2006, the Council indicated that it expected that the required works would be completed by the end of May 2006.
17On 5 May 2006, the Council wrote to Mr McNeil requesting a meeting with Council staff to discuss the remediation and future options for management of the site, which was described in the letter as "Lot 1, DP 998352, being 61 Rose Street, Wee Waa". The letter said that it was hoped that the meeting would provide further direction to the remediation works and an outcome acceptable to all parties involved.
18It is not clear what happened next. However, on 23 June 2006, the Council gave notification under s 132 of the Local Government Act of a proposed order under s 124 (the s 132 notice). The s 132 notice said that the proposed order under s 124 would apply to the site known as "Lot 1, DP 998352, 61 Rose Street, Wee Waa" and would require the following:
"Restoration of the land to a safe and healthy condition".
The s 132 notice went on to say that that was required because the site was not in a safe and healthy condition as a result of "the presence of a dilapidated structure and the presence of friable asbestos waste". The s 132 notice said that the restoration of the land must be undertaken in accordance with, inter alia, the following three requirements:
"An appropriately licensed contractor is required to undertake all clean-up works associated with the site to restore safe and healthy conditions.
All clean-up activities ... are to comply with the [Protection of the Environment Act], as well as associated regulations ... and any other relevant statutory requirements.
The contractor is to provide the Council with a written report of all clean-up activities being undertaken in relation to the above mentioned land." [emphasis added]
The s 132 notice stated that it was proposed that the order under s 124 would specify a period of 28 days in which compliance would be required. The notice ended by saying that Mr McNeil could relieve the need for the Council to consider serving an order under s 124 by completing the required restoration works in accordance with those three requirements prior to 7 July 2006.
19The work specified in the s 132 notice was not completed by 7 July 2006. There is some contention as to what was required and who was qualified to carry out the work. That is the essence of the dispute in the proceeding.
20In any event, on 7 July 2006, the Council gave Mr McNeil a document purporting to be an order under s 124 (the s 124 order). The terms of the s 124 order as attached and hyperlinked to these reasons. It will be apparent from examination of the document that it is described as an order "relating to Lot 1, DP 998352, 61 Rose Street, Wee Waa". No mention is made of Lot 2. The reason for giving the order is stated to be that the site was not in a safe and healthy condition as a result of "the presence of a dilapidated structure and the presence of friable asbestos waste".
21Curiously, the document does not, in terms, require Mr McNeil to do what was foreshadowed in the s 132 notice. The s 132 notice asserted that the proposed s 124 order would require "restoration of the land to a safe and healthy condition" and that restoration must be undertaken in accordance with the three requirements described above. The s 124 order stated the reason for its issue and that "[t]he restoration of the land" had to be completed in accordance with three requirements. Those three requirements were identical to the three requirements in the s 132 notice. However, the s 124 order did not, in terms, require restoration to a safe and healthy condition, as had been foreshadowed in the s 132 notice.
22Mr McNeil took no steps under s 180 of the Local Government Act to appeal against the s 124 order. The three requirements specified in the s 132 notice and in the s 124 order were not completed by Mr McNeil.
23On 11 October 2006, the Council wrote to Mr McNeil saying that it intended to enter the premises of 61 Rose Street, Wee Waa on 16 October 2006 for the purpose of carrying out the order that had been issued to him on 7 July 2006 and with which he had failed to comply. The letter said that the Council had engaged contractors who would be carrying out the work as provided by s 678 of the Local Government Act. The letter also said that it was expected that the remediation work would be completed over a two week period, after which the Council would be seeking to recover all associated costs from Mr McNeil under s 678 of the Local Government Act.
24Between 16 and 19 October 2006, Hunter Tech Services (HTS) cleared the Property under the supervision of HLA Enviro Sciences Pty Limited (HLA). Each of HTS and HLA had been retained by the Council for that purpose. HTS rendered an invoice to the Council in the sum of $34,195 and HLA rendered an invoice to the Council in the sum of $7,865. Those two sums total $42,060.
25The Council subsequently commenced a proceeding in the Local Court in Narrabri against Mr McNeil, seeking recovery of the sum of $40,687.26 plus interest. The statement of liquidated claim sought payment of the sum of $40,687.26 for remediation of the Property being demolition and clean-up of asbestos contaminated material pursuant to s 124 of the Local Government Act. Subsequently, the proceeding was transferred to the District Court at Tamworth.
26In his third amended defence to the Council's claim, Mr McNeil denied that the Council was entitled to recover from him the sum claimed as a debt under s 678. The essence of his defence was that he was not given an order under s 124, in that the purported order was invalid because:
- the facts on which it purported to be based did not exist;
- it did not disclose the reasons for the order;
- it purported to require Mr McNeil to restore the site to a safe and healthy condition, which is a state or condition unknown to the law, without specifying precisely what work was required to restore the site to that state or condition; and
- if and in so far as it purported to require demolition and removal of any building, there is no power under s 124 to make such an order.
27In addition, the defence asserted that Mr McNeil did not fail to comply with the terms of an order under s 124 in that, as at the date that the s 124 order was given, the Property was not unsafe and unhealthy and, hence, the s 124 order did not require him to do anything. Finally, the defence asserted that the Council did not incur expenses under s 678 in doing all things as were necessary to give effect to the terms of any s 124 order given to Mr McNeil.
28Mr McNeil also filed a cross-claim in the District Court in which he claimed damages for trespass and negligence. The negligence claim was not pressed. His claim in trespass may be summarised as follows:
- Mr McNeil was at all material times the owner of the land being Lot 1 and was also the owner of Lot 2, which adjoined Lot 1 and upon which buildings were jointly constructed;
- the Council issued the s 132 notice to Mr McNeil on 23 June 2006, such notice being issued only in respect of Lot 1;
- the Council purported to issue the s 124 order to Mr McNeil on 7 July 2006, that order relating only to Lot 1.
- the s 124 order was invalid for the reasons set out in the third amended defence;
- both the s 132 notice and the s 124 order referred to the presence of a dilapidated structure and of friable asbestos waste as a result of a fire that partly destroyed one building;
- on about 16 October 2006, the Council entered and trespassed on the Property and proceeded to demolish all buildings and structures located on the Property, both Lot 1 and Lot 2, including detached buildings and structures;
- the entry onto the Property and the demolition of all buildings and the removal from the Property of all movable property was based on the premise that the s 124 order was valid;
- at the time that the Council entered upon the Property and demolished the buildings and structures, there was no relevant Council order requiring demolition;
- section 678 did not authorise the Council to take that action and, hence, the Council was a trespasser; and
- the various structures demolished had a total value of $853,136.
29On 3 April 2012, a judge of the District Court, after hearings in Tamworth and Sydney on 12, 13 and 14 September 2011, 31 October 2011, 1 November 2011 and 31 January 2012, directed judgment for the Council against Mr McNeil in the sum of $40,687.26 plus interest. The primary judge made an order in chambers on 8 May 2012 that that interest was calculated to be $59,764.26. On 22 June 2012, his Honour ordered Mr McNeil to pay the Council's costs up to 24 November 2010 on the party/party basis and on the indemnity basis thereafter. His Honour also ordered that the cross-claim be dismissed.