Issue 1: Land vested in Her Majesty
18Understandably, the Land Council relies upon the fact that the "State of New South Wales" was the registered proprietor of Lot 7016 under the provisions of the Real Property Act at the date of the Land Claim. The nomination of the State as the registered proprietor had the consequence that, for the purpose of s 36(1) of the Land Rights Act, the land was vested in Her Majesty.
19In Gandangara Local Aboriginal Land Council v Minister Administering the Crown Lands Act [1996] NSWLEC 223, Bannon J was required to determine whether land was vested in Her Majesty for the purpose of the Land Rights Act where the "State of New South Wales" was recorded as the registered proprietor under the Real Property Act. When addressing that issue, his Honour said (at 13):
"Obviously the subject land is not vested in the land mass known as New South Wales or in its legislature. In my opinion, the registered proprietor is the Queen, the head of the government of New South Wales. I do not consider the vesting of the property under the title 'State of New South Wales' has the effect of vesting the property in a Minister or a statutory corporation on behalf of the Crown."
The effect of his Honour's conclusion was not disturbed on appeal (Gandangara Local Aboriginal Land Council v Minister Administering the Crown Lands Act (1997) 41 NSWLR 459 per Cole JA at 461 D and Beazley JA at 472 E-G).
20The Minister accepts that if the Register under the Real Property Act correctly records the registered proprietor of Lot 7016 at the date of the Land Claim, then it was vested in Her Majesty for the purpose of s 36(1) of the Land Rights Act. However, he disputes that the Register does correctly record the entity in whom the fee simple of the Lot was vested at that date.
21Although acknowledging that "the Torrens System constitutes title by registration" (Breskvar v Wall [1971] HCA 70; 126 CLR 376 at 385), the Minister submits that s 42 of the Real Property Act is, in the present case, "ousted". That occurs, so it is submitted, by operation of s 14(1) of the Commons Management Act.
22As further developed, the submission is that the provisions of s 14(1) have the effect that the Boggabri Common Trust held the estate in fee simple in Lot 7016 at the date of the Land Claim. While title was so held, that Lot was not "Crown land" within the meaning of the Crown Lands Act 1989 (NSW). The expression "Crown land" is defined in s 3 of the Crown Lands Act as follows:
"Crown land means land that is vested in the Crown or was acquired under the Closer Settlement Acts as in force before their repeal, not in either case being:
(a) land dedicated for a public purpose, or
(b) ... ".
Dedication of land as a common is dedication within the meaning of paragraph (a) of that definition.
23The Minister further submits that the provisions of s 14(2) of the Commons Management Act "dovetail" with the definition of "Crown land" in s 3 of the Crown Lands Act. Title to land dedicated as a common is vested in the common trust until the common is revoked. If dedication of the common is revoked "the estate in fee simple in the land that was subject to the common reverts to the Crown and the land reverts to being Crown land" (Respondent's outline submissions at [19]).
24Expressed succinctly, the Minister submits that s 14 "trumps the usual effect of registration because of the ouster of s 42 of the Real Property Act" (submissions at [21]). Initially, further support for the submission was said to be found in subsection (3) of s 14 of the Commons Management Act which provides:
"(3) The provisions of this section have effect despite anything contained in section 42 of the Real Property Act 1900."
25However, it was later acknowledged that subsection (3) was added to s 14 by the Real Property and Conveyancing Legislation Amendment Act 2009 (NSW). As is obvious, that legislation was enacted after the date of the Land Claim and for that reason is not relevant for present purposes: the amending Act is not expressed to have retrospective effect.
26Support for the Minister's contention that s 42 of the Real Property Act was "ousted" is also said to arise because the later enacted Commons Management Act "must be given effect at the expense of the earlier Act" (submissions at [20]). Judgments of the High Court in South-Eastern Drainage Board (SA) v Savings Bank of South Australia [1939] HCA 40; 62 CLR 603 (Latham CJ at 616 and Dixon J at 625) are cited in support of that submission. Application of the principle of interpretation there invoked turns upon inconsistency between the statutory provisions being considered. As Dixon J observed in that case (at 625):
"But, unless it is found impossible to reconcile the later statute with sec.6 [of the earlier Act], there is no room for the conclusion that the later Act must be regarded as meaning to operate upon land under the earlier Act and to do so inconsistently therewith."
27For reasons that follow, I am not persuaded that there is inconsistency between the provisions of s 42 of the Real Property Act and s 14 of the Commons Management Act. I do not accept that s 14 operates in the manner for which the Minister contends.
28Consideration of s 14(1) of the Commons Management Act must commence with its text. The opening words "[f]or the purposes of this Act" are words of limitation. It cannot be assumed that the words have no work to do. Had it been the legislative intent that the interest vested in a trust of common land be an estate in fee simple for any purpose, the opening words of the subsection would be unnecessary.
29The concluding words of the subsection "unless it already has such an estate by virtue of some other enactment or instrument" support the conclusion just expressed. Those words acknowledge that there may be some other basis upon which an estate in fee simple is held by the trust, for example, by conveyance, transfer or grant effected otherwise than by operation of the subsection. However, unless an estate in fee simple has been acquired "independently", the title that is vested "by virtue of [the] subsection" is qualified as being for the purposes of the Act. It is not contended by the Minister that the interest of the trust in Lot 7016 was created otherwise than by virtue of s 14(1).
30Provisions similar to, although not identical with, s 14 of the Commons Management Act have been found in Crown lands legislation for many years. Part 3B of the Crown Lands Consolidation Act 1913 (now repealed) was headed "Management of and dealings with dedicated or reserved lands and certain other lands". Section 37X (a section within Pt 3B), relevantly provided:
"Estate of trustees.
37X(1) Except to the extent that the trustees of a reserve have an estate in fee simple in the reserve apart from this section, the trustees shall, for the purposes only of this Part and of any by-law, be deemed to have that estate in the reserve."
31Part 5 of the current Crown Lands Act is headed "Dedication and reservation of land". Section 100, found in Pt 5, relevantly provides:
"100 Estate of trust
(1) For the purposes only of this Part and a by-law under this Part, a reserve trust that, but for this section, would not have an estate in fee simple in the reserve has such an estate.
(2) The reserve trust is not capable of alienating, charging, granting leases of or licences or easements in respect of, or in any way disposing of the whole or any part of the reserve, except in accordance with this Part.
(3) Revocation of the dedication or reservation of the whole or part of a reserve divests the reserve trust of any estate in the land affected by the revocation."
32The consequence for an Aboriginal land claim under the Land Rights Act, where the land in question was vested in a trustee pursuant to s 100 of the Crown Lands Act, was addressed by Bannon J in Daruk Local Aboriginal Land Council v Minister Administering the Crown Lands Act (1992) 76 LGRA 337. Having noted that s 100(1) of the Crown Lands Act was in substantially the same terms as s 37X(1) of the Crown Lands Consolidation Act, Bannon J said (at 340-341):
"Both under the Crown Lands Consolidation Act and the Crown Lands Act, the vesting of the land in the trustees is for limited purposes only under those Acts, and I have reached the conclusion that the land claimed was, at the relevant date, vested in Her Majesty for the purposes of s 36(1) of the Act."
33The limiting operation of the opening words of s 100(1) of the Crown Lands Act was considered by Pearlman J in Prince Alfred Park (D500038) Reserve Trust v State Rail Authority of New South Wales (1997) 96 LGERA 75. Her Honour was there determining a claim for compensation made under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW). In seeking to apply the provisions of the that Act, it was necessary for her Honour to determine whether the Reserve Trust held an "interest in land", as that expression was defined in that Act, the first limb of which was the holding of "a legal or equitable estate or interest in the land". In addressing that aspect of the case, her Honour said (at 79):
"Section 100 of the Crown Lands Act provides that, for the purposes only of Pt 5 of that Act, a reserve trust has an estate in fee simple in the reserve of which it is the trustee. In the respondent's contention, which I think is patently correct, the applicant does not have an estate in fee simple in Prince Alfred Park for the purpose of any other Act, and in particular, for the purpose of the Just Terms Act. It follows that it does not have an estate in fee simple for the purpose of limb (a) of the definition of 'interest in land'."
34Section 100 of the Crown Lands Act was also considered by Sheahan J in Ashfield Municipal Council v Roads and Traffic Authority of New South Wales [2000] NSWLEC 117, another case requiring the determination of compensation under the Land Acquisition (Just Terms Compensation) Act. Having made reference to the provisions of s 100(1), his Honour said (at [49]):
"49 I accept Mr Ayling's contention that this means that the Crown holds the fee simple of the trust lands, but vests in the Council, for the purposes of the Council's exercise of its functions as trustee or trust manager under the CLA, those incidents of the fee simple which the Council needs in order to achieve those purposes."
35In Townsend v Waverley Council [2001] NSWSC 384; 120 LGERA 224, Barrett J (as his Honour then was) was required to determine a claim of title by adverse possession to an area of land forming part of an adjoining public park. The land in question was part of a larger parcel of land that had been compulsorily acquired by a State instrumentality in 1886. The land was acquired for a public park. Following acquisition, Waverley Council was appointed as trustee of the land. By operation of a number of legislative provisions following its appointment, that Council came to hold the land as a reserve trust under the provisions of s 100 of the Crown Lands Act. In the context of considering the operation of that section, his Honour observed (at [20]):
"The Act of 1989 thus follows the pattern of earlier legislation. It enacts that a reserve trust has an estate in fee simple in the relevant reserve for the purposes of Part 5 of that Act itself and a by-law under that Part. The statute is not the source of an estate in fee simple for any other purpose, with the result that such an estate cannot be said to exist when some different statute or other legal context is under consideration. The statutory fiction, if it may be so described, does not exist for all purposes of the Crown Lands Act 1989 itself."
36The Minister submits that the judicial exegesis given to s 100 of the Crown Lands Act should not be applied to s 14(1) of the Commons Management Act. He submits that while the latter subsection is expressed to apply for the purpose of the Act as a whole, the respective provisions of the Crown lands legislation that are addressed in the decided cases are expressly confined in their operation "for the purpose(s) only" of the Part of the Act in which the section is found. Emphasis is placed upon the use of the adverb "only" in s 100(1) of the Crown Lands Act and its absence from s 14(1) of the Commons Management Act.
37I do not accept that the distinction drawn by the Minister between the respective statutory provisions reflects a difference of any relevant consequence. The Crown Lands Act addresses a number of disparate topics pertaining to Crown land. It is therefore understandable that in addressing the separate topic of dedication and reservation of areas of Crown land (Part 5) and making provision for reserve trusts in respect of land so dedicated or reserved, the exercise of power by the reserve trust, including that which would otherwise be consequent upon the grant of an estate in fee simple, would be confined to the exercise of the powers conferred by that Part of the Act. Other parts of the Act address different powers to deal with Crown land. For example, by s 76 certain Crown land may be vested in a Local Government Act council "in fee simple", with potentially different consequences for such vesting from those afforded by the vesting of land in a reserve trust under s 100: s 77 of the Crown Lands Act demonstrates that proposition. Thus, the necessity to confine the operation of s 100 to Pt 5, a limitation emphasised by use of the adverb "only" in subsection (1) of that section.
38However, the fundamental flaw in the Minister's submission seeking to distinguish the cases directed to s 100 of the Crown Lands Act is that it fails to address or assign any legislative purpose to the opening words of s 14(1) of the Commons Management Act. As I have earlier indicated, had it been the legislative intent to invest title in a common trust for any purpose, transcending the performance of functions under the Commons Management Act, such that the title held good for the purpose of any legislative enactment, the opening words "[f]or the purposes of this Act" would be superfluous.
39Beyond the comparison between the terms in which each of s 14 of the Commons Management Act and s 100 of the Crown Lands Act are expressed, there are similarities that are apparent between the two Acts operating at a broader level, indicating a legislative intent that they should operate to similar effect. Both Acts deal with land reserved or dedicated under Crown lands legislation and establish a trust for the management of that land. As the Long title to the Commons Management Act indicates, the purpose of that Act is to provide for the management of commons through the statutory vehicle of a trust.
40By s 8(1) of the Commons Management Act, a trust is charged with responsibility for the "care, control and management" of the common. So also, by s 92(5) of the Crown Lands Act, a reserve trust is charged with the "care, control and management" of any reserve of which it is appointed trustee.
41Just as s 100(3) of the Crown Lands Act divests a reserve trust of its estate in land if the reservation or dedication of that land is revoked, so also by s 14(2) of the Commons Management Act a common trust "ceases to have" the estate in fee simple vested in it by subsection (1) of the same section if the common is revoked. Those provisions are significant. They are demonstrative of a legislative intent that the land title held by the trust is in aid of its management function rather than reflecting an intent to change the underlying title to the land.
42Section 16 of the Commons Management Act constrains the power of a common trust to enter into any "transaction" with respect to the land vested in it. A "transaction" is defined in s 3 to include a transfer, conveyance, lease or grant of any licence in respect of land. The constraints imposed by s 16 are, in substance, to the same effect as ss 102, 103 and 104 of the Crown Lands Act, as those provisions relate to land vested in a reserve trust. As the Land Council submits, the fact that the common trust may, in accordance with s 16, sell land that is the subject of the trust does not manifest an intention to require a change in title in favour of the trust enabling it so to do. By analogy, it could not be suggested that the power of the Minister to sell Crown land pursuant to s 34 of the Crown Lands Act is not able to be exercised unless title to land of which the State of New South Wales is the registered proprietor is first transferred to the Minister.
43The close similarities between the provisions of Pt 5 of the Crown Lands Act, addressing the creation and management of reserves under that Part, and the provisions of the Commons Management Act addressing the management of Commons suggests to me that the jurisprudence directed to s 100 of the Crown Lands Act is appropriate to be applied to the operation of s 14(1) of the Commons Management Act. That is, the latter section creates a "statutory fiction" (Townsend) of title that does not impact upon the real or underlying title to common land.
44In response to any such conclusion, the Minister relies upon the decision of the Court of Appeal in Mogo Local Aboriginal Land Council v Eurobodalla Shire Council [2002] NSWCA 12; 54 NSWLR 15. A claim made under s 36(3) of the Land Rights Act had been refused by the Minister on the ground that at the date of claim the land was lawfully used and occupied by Eurobodalla Shire Council for public recreation and camping. While the Land Council appealed to this Court pursuant to s 36(6) of the Land Rights Act, Eurobodalla Council commenced separate proceedings in the Supreme Court seeking a declaration that the land was not vested in Her Majesty and therefore did not fall within the definition of claimable Crown lands in s 36(1) of the Land Rights Act. The Council also sought a declaration that it held the estate in fee simple in the land for which the claim was made. The basis for that claim will be explained shortly. However, it was from orders made in favour of the Council in those proceedings that the Land Council appealed to the Court of Appeal.
45The decision on appeal affirmed the decision at first instance to the effect that the land in question (lot 8) was not vested in Her Majesty and that the estate in fee simple was vested in the Council. The leading judgment was delivered by Giles JA (Hodgson JA and Rolfe AJA agreeing). At [29] his Honour said:
"Even if lot 8 had initially been vested in the shire council as a public reserve, in my opinion it was not thereby in a position akin to that of the municipal authorities earlier mentioned. The right to exercise every imaginable act of ownership may be circumscribed, by common law and by statute, while leaving the landowner's interest an estate in fee simple. But I see no reason to conclude that the vesting in the shire council of an estate in fee simple in lot 8, upon resumption and purportedly again upon the registration of deposited plan 258299, passed only powers of control and management and such proprietary interest as was necessary for the shire council's functions."
46Giles JA continued at [30]:
"Unlike the cases on which the land council relied, what was vested in the shire council was unequivocally an estate in fee simple. It was not a collection of rights to be found only in, and limited by, a purpose or function ...".
47Despite their apparent attraction, the observations there made by his Honour do not, in the circumstances of this case, aid the Minister. Lot 8 was part of a larger area of land resumed by the Council pursuant to s 536 of the Local Government Act 1919 (now repealed). By dint of s 536A of that Act, upon publication of the resumption notice in the Gazette the resumed land was "vested in the Council for an estate in fee simple in possession freed and discharged from all trusts, obligations, estates, interests, contracts, charges, rates, rights of way, or easements whatsoever." The land so acquired was subsequently subdivided by the Council. It was by that subdivision that lot 8 was created as a separate lot and recorded on the deposited plan as being "dedicated as a public reserve". Upon registration of the deposited plan a certificate of title issued recording the Council as the registered proprietor. It is by reference to the title so recorded that Giles JA referred to the right of the holder of an estate in fee simple as a right "to exercise every imaginable act of ownership",applying the observations of the plurality in Fejo v Northern Territory of Australia [1998] HCA 58; 195 CLR 96 at [43], a decision relied upon by the Minister in the present case.
48After the deposited plan had been registered and the Council recorded as the proprietor of lot 8, a declaration was made by the Minister under s 25A of the Crown Lands Consolidation Act declaring lot 8, together with other lands, to be dealt with "as if they had been acquired under the Closer Settlement Acts or as Crown land within the meaning of the Crown Lands Consolidation Act, 1913." Wrongly, as the Court determined, the Registrar-General had then amended the Register by deleting the Council as registered proprietor and recording that the land had "become Crown land within the meaning of the Crown Lands Acts".
49The circumstances in which lot 8 came to be vested in the Council is significant. There can be no question that in acquiring the land by compulsory process under the Local Government Act, without any overlay of Crown lands legislation, the Council was vested with an "unequivocal" estate in fee simple in lot 8. It was not an estate that was limited "by purpose or function". Moreover, as Giles JA determined at [34], the effect of the declaration under s 25A of the Crown Lands Consolidation Act did not purport to alter the ownership of the land but determined only the manner in which the Council could deal with the land (see also at [28]).
50The position that there pertained is in marked contrast to the ownership of Lot 7016. That Lot was never acquired by the Boggabri Common Trust. It held an estate in fee simple in that Lot only by virtue of s 14(1) of the Commons Management Act. The Common was declared as such under Crown lands legislation. Unlike the vesting of the estate in fee simple in Mogo, or the right conferred by the Crown grant in Fejo, the collection of rights vested in the Boggabri Common Trust are "found only in, and limited by, a purpose or function" provided for in the Commons Management Act. While s 14(1) acknowledges the possibility of an estate being vested in a common trust by "some other enactment or instrument", thereby contemplating a circumstance of the kind that occurred in Mogo, no other "enactment or instrument" is identified in the present case in order to sustain the title of the Common Trust.
51The provisions of s 14(1) of the Commons Management Act, read in the context of the decisions to which I have earlier referred, are consistent with a principle that while a statute may vest land in fee simple in a public body, that vesting may only be sufficient to facilitate the performance of those statutory functions imposed by the statute under which the vesting of that estate occurs. That limited operation of a statutory provision of the kind found in s 14(1) was the subject of observations by Williams J in City of Perth v Crystal Park Ltd [1940] HCA 35; 64 CLR 153 where his Honour said (at 168):
"The word 'vest' is a word of elastic import, and a declaration that lands are vested in a public body for public purposes may 'pass only such powers of control and management and such proprietary interests as may be necessary to enable that body to discharge its public functions effectively' ...".
That part of the passage in his Honour's observations that appear by way of quotation are taken from the advice of the Privy Council in Attorney-General for Quebec v Attorney-General for Canada [1921] 1 AC 401 at 409 (cited with approval by Gummow J in Yanner v Eaton [1999] HCA 53; 201 CLR 351 at [94]). In the present context, I see no reason to differentiate between the "vesting" of an estate in fee simple and the holding of such an estate, as s 14(1) provides.
52For these reasons, I conclude that the statutory vesting or holding of an estate in fee simple in the Boggabri Common Trust pursuant to s 14(1) of the Commons Management Act does not impinge upon the underlying title to Lot 7016 nor do those statutory provisions result in a change in title to the land to which they relate. That title remains with Her Majesty. So understood, s 14(1) does not operate in a way that is inconsistent with or contradictory of the provisions of s 42 of the Real Property Act.
53For the purpose of s 36(1) of the Land Rights Act, Lot 7016 was, at the date of ALC 16751, vested in Her Majesty. Section 14(1) of the Commons Management Act does not operate to defeat that title.