IS THERE A LEASE, A BARE LICENCE OR A LICENCE COUPLED WITH AN EQUITABLE RIGHT TO OCCUPY THE THIRLMERE PROPERTY?
- As I have said, the defendants have been in occupation of the Thirlmere property since March 2011. When they moved into the premises, no lease was signed. However, they have been in exclusive possession of the property. The fact of exclusive possession may be an indicia that the parties have entered into a lease but it does not provide conclusive evidence of the existence of a lease. [11] There are no other indicia of a lease or evidence that the parties entered a landlord and tenant relationship. The defendants have not paid, or been asked to pay, any rent. [12] Further, the length of occupancy was not certain. The agreement was that the plaintiff would enjoy possession of the Thirlmere property while the Tahmoor rebuild was being undertaken. There were estimates as to how long that might take (9-12 months) but there was no certainty as to the length of the occupancy. It was dependant on a contingency and the date that the contingency would come into effect was not known. [13]
- I do not accept, as a matter of law, that the parties entered into a contractual relationship in the nature of a lease or that there is any ongoing legal relationship of landlord and tenant. Even if there was such a relationship, the plaintiff has, by now, provided ample notice requiring the defendants to vacate the premises. [14]
- I accept the plaintiff's submission that the defendants have occupied the premises on what was described as a bare licence. I do not accept the defendants' contention that if there is a licence, it is a "license coupled with equity" or that there is some kind of equitable estoppel precluding the plaintiff from taking possession of its land.
- I do not accept that the defendants altered their position in consequence of any relevant representation or inducement made by the plaintiff that caused the defendants to assume the existence of a legal relationship that would entitle them to continue in occupation of the Thirlmere property until the dwelling at Tahmoor meets their (subjective) expectations. [15] I do not accept that the plaintiff gained a financial advantage in its dealing with the defendants so as to create in the defendants a legal right to remain in occupation of the land until the Tahmoor dwelling has been built to a condition that they determine is acceptable.
- To demonstrate an equitable interest or estoppel, the defendants must establish that the plaintiff induced or encouraged an expectation or assumption in the defendants that they acquired a relevant interest in the Thirlmere property and that the defendants, upon this assumption, acted to their detriment. [16] In Waltons Stores, [17] Brennan J set out six things that need to be proved to establish an equitable estoppel. While the defendants appear to assert an estoppel based on expenditure they incurred on the maintenance or improvement of the Thirlmere property, the plaintiffs point out that no documentary evidence of this expenditure has been produced. [18] Conversely, the plaintiff's evidence establishes that it has paid for almost all of the outgoings relating to the Thirlmere property. This includes (but is not limited to) costs associated with pest control, repairs to electrical appliances, water rates, removalists, hedge-trimming, gutter cleaning and installation of cable television (Foxtel).
- Since March 2012, the plaintiff has issued the defendants with several notices requesting them to vacate the property. Throughout that period, attempts have been made to address problems with the Tahmoor property identified by the defendants. After the defendants refused to deal with the public servants employed by the plaintiffs, there were attempts at negotiation at the highest level of government. The Minister visited the property and listened to the defendants' complaints. More recently, attempts have been made to provide compensation to the defendants based on the report of an independent builder. In the circumstances, even if all of the other conditions of an estoppel were established (which they are not), it could not be held that the plaintiff has failed to act to avoid the detriment by fulfilling the assumptions or expectations of the defendants. [19]
- In the context of the litigation, and in an attempt to avoid it, the plaintiff has attempted to compensate the defendant for various out-of-pocket expenses and expenses including rectification of the flaws and faults that the defendants say continue to plague the Tahmoor dwelling. All attempts to settle the matter on terms have been rejected. This included an open-ended offer made on 30 March 2017 (that is, a few days before the hearing) to pay a total of $45,062.50 for a number of defects in the Tahmoor property that the defendants, and an independent builder, have identified. The plaintiff also offered to pay the sum of $14,201 for what is described as the defendants' "alleged out-of-pocket expenses".
- An offer in almost identical terms was included in the material tendered by the defendants and annexed to their affidavit dated 16 February 2017. As I understand it, the defendants tendered that document as evidence of the fact that there continued to be serious defects in the Tahmoor house and as part of their case that their continued occupation of the Thirlmere property was legally justified. The list of defects disclosed is derived from a combination of the defendants' complaints and a report of an independent builder (Taylor Thompson Whitting) dated 25 July 2016. Again, that report was annexed to the defendants' affidavit. While the defendants appeared to accept that report on its face, they also complained that the builder (who was independent of the parties) made only a cursory inspection. For example, it was submitted that the builder did not enter the roof cavity and pull up floorings in order to assess the extent of the damage. In any event, the defendant relied on that report to establish that defects exist and remain in their rebuilt Tahmoor home. However it is impossible to ignore the conclusion of the independent building inspection report:
"Generally the home is of very high standard with some very minor defects, the gutter being the most serious. The house has not deteriorated for the 5 years it has been left empty. Any remaining shrinkage of concrete and timber is insignificant."
- The reference to the house being vacant for five years is a reference to the period between 9 March 2012 when the first occupation certificate was created and the date of the independent builder's report.
- It may be that the defendants have a legitimate grievance compensable by damages. However, they have not acquired an equitable interest in the house and land that they have occupied on a licence from the plaintiff since 2011. All recent offers of compensation made by the plaintiff have been steadfastly refused.
- The plaintiff has done what it can and has acted in good faith. It needs the Thirlmere property to accommodate other people whose houses have been damaged by mining activity, who have made claims under the Act and who need to be relocated while repairs are being made to their homes. Neither equity (nor the operation of "idiosyncratic notions of justice or fairness") [20] give rise to a legal interest under which the defendants may remain in possession of the plaintiff's land.