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[2020] WASCA 78
Court of Appeal (WA)
2020-05-22
Buss P
Original judgment source is linked above.
(1) criminal damage by fire, contrary to s 444(1)(a) of the Criminal Code (WA) (count 3); and
(2) attempted fraud, contrary to s 409(1)(c) of the Code (count 2).
The appellant was sentenced to 4 years 4 months' immediate imprisonment on count 3, to be served cumulatively with a sentence of 8 months' immediate imprisonment imposed on count 2. The total effective sentence of 5 years' immediate imprisonment was backdated to 9 May 2018, and the appellant was made eligible for parole. The appellant now appeals against these sentences.
The fire resulted in extensive damage to the building, rendering it unstable, unusable and likely to be demolished. The damage to the premises has been estimated by an insurance loss adjuster to be between $14.4 million and $19.9 million. Those figures were described by your counsel as being rubbery because they depend on a number of assumptions being made which may not eventuate. That may be so, but, having read the loss adjuster's report, I am satisfied the lower figure is a realistic assessment. Ultimately the damage was in the millions of dollars, and the building may be unusable. If you believed that $600,000 to $700,000 damage would only cover a refitting of the building, it could not have come as a surprise to you that the much greater damage actually caused would cost in the millions of dollars. (emphasis added)
You were charged with the arson offence at that stage and appeared in the Magistrates Court on a later date. Shortly before your appearance which was to be on 19 July 2017 your lawyers spoke with the investigating officer to say you were prepared to offer assistance.
Sentencing judge's approach Seriousness of offending
However, it was never intended that you would lodge the claim or pursue it for Mr Pourzand. Your criminal responsibility is less than his, but your contribution was crucial. Further, while I accept that at the time you committed the arson your belief was that the claim would be for $600,000 to $700,000, you became aware that the actual damage to the building was in the millions of dollars and that Mr Pourzand was going to pursue a claim for all the damage. The attempted fraud was a continuing offence and the only reasonable inference from the materials on the brief is that you expected the claim would be made and pursued by Mr Pourzand. He had made that clear to you when he told you he hoped they would pull the building down and said you had done a good job.
Your criminal responsibility for that offence did not stop the moment you left the building, which was on fire. You continued to be a party to the attempted fraud. You did nothing to prevent it or to bring the truth to light until you were charged.
(1) The offence was premeditated and involved a great deal of planning.[36]
(2) The offence was committed as part of a plan to commit fraud upon the insurance company for a very substantial sum.[37]
(3) The appellant was motivated by the promise of a significant financial benefit.[38]
(4) The extent of the damage that the appellant intended to cause was very substantial.[39]
(5) The damage actually caused amounted to the destruction of a very valuable property.[40]
(6) The nature of the fire was such that Fire and Emergency Services officers were unnecessarily put at risk.[41]
(1) The size of the claim that the appellant believed would be made.[42]
(2) The planning and degree of deception.[43]
(1) Actions such as turning the electricity off before the fire indicated that the appellant had regard for the potential consequences of his actions and did things with the intention of moderating the fire and its risk.[44]
(2) The appellant's prior good character and the positive contribution which he had made to the community in the past.[45]
(3) The appellant was vulnerable to being manipulated into committing the offences.[46]
(4) The appellant had protective factors, such as family support, that reduced the appellant's risk of reoffending in the future.[47]
(6) The appellant pleaded guilty and cooperated with the authorities.[49]
Section 9AA of the Sentencing Act
Your plea of guilty in respect of each offence is a significant mitigating factor. Under s 9AA of the Sentencing Act 1995 (WA) I am able to reduce your sentence for each offence by up to 25 per cent for your plea of guilty to reflect the benefits to the State and to the victim and witnesses. The maximum may be allowed only where a plea has been entered at the first reasonable opportunity. The reduction is from the sentence that would otherwise be appropriate having regard to the seriousness of your offending before taking into account mitigating factors.
As I said at the start, your guilty pleas were entered at the first reasonable opportunity. The State accepts that. However, it does not follow that you should receive the maximum reduction.
In deciding on the appropriate reduction, I am entitled to take into account the strength of the case against you at the time you entered your guilty pleas. Where the prospects of the State securing a conviction against an accused are strong because of the strength of the evidence, the benefit to the State of a guilty plea is not as great as where the prospects of conviction are smaller. In your case, once you had made the admissions in your second interview, supported by the recordings you made and other circumstantial evidence, the case against you was overwhelming.
Your co-operation with the police that resulted in that overwhelming case will be taken into account separately.
Given the strength of the case against you, I have decided that I should allow a reduction of 20% under s 9AA for your pleas of guilty.
(emphasis added)
The recordings you had made with your conversations with Mr Pourzand were significant items of evidence, but your participation in the second interview, in which you gave details of the criminal enterprise, provided the police with a much clearer picture of what had happened with other avenues of inquiry to strengthen the case against both you and Mr Pourzand. The fact that you were prepared to provide a statement at that stage meant that you were also prepared to be a potential witness in any prosecution of Mr Pourzand.
I accept that your co-operation came from remorse. The combination of that with the value of your assistance means that you should receive a significant reduction for your past co-operation.
Ground 1: Reduction under s 9AA of the Sentencing Act
The learned sentencing Judge erred in law by failing to afford the appellant the maximum 25% discount for pleading guilty pursuant to s 9AA Sentencing Act 1995.
Section 9AA: general principles
fixed term has the meaning given in section 85(1);
head sentence, for an offence, means the sentence that a court would have imposed for the offence if -
(a) the offender had been found guilty after a plea of not guilty; and
(b) there were no mitigating factors;
victim has the meaning given in section 13.
(2) If a person pleads guilty to a charge for an offence, the court may reduce the head sentence for the offence in order to recognise the benefits to the State, and to any victim of or witness to the offence, resulting from the plea.
(3) The earlier in the proceedings the plea is made, the greater the reduction in the sentence may be.
(4) If the head sentence for an offence is or includes a fixed term, the court must not reduce the fixed term under subsection (2) ‑
(a) by more than 25%; or
(b) by 25%, unless the offender pleaded guilty, or indicated that he or she would plead guilty, at the first reasonable opportunity.
(5) If a court reduces the head sentence for an offence under subsection (2), the court must state that fact and the extent of the reduction in open court.
(6) This section does not prevent the court from reducing the head sentence for an offence because of any mitigating factor other than a plea of guilty.
[I]n order to recognise the benefits to the State, and to any victim of or witness to the offence, resulting from the plea.
(a) securing the conviction of a person who has committed a criminal offence;
(b) the Office of the Director of Public Prosecutions (WA) not having to use resources in the preparation and conduct of a criminal trial;
(c) if the accused has been or would otherwise have been granted legal aid, the Legal Aid Commission (WA) not having to use resources in the preparation and conduct of a defence;
(d) avoiding the time and expense involved in summoning and empanelling jurors for a criminal trial; and
(e) the more expeditious and efficient resolution of proceedings in the criminal justice system than would otherwise be the case.
It is important to always bear in mind the underlying purpose of allowing and quantifying a discount for a plea of guilty. The purpose is to encourage those who are guilty to enter their pleas at the earliest possible stage, and thereby maximise the benefits of those pleas to the State and any victims or witnesses. Discounts act not merely as a reward to the individual, but as an encouragement to others. Too parsimonious an approach to the awarding of a discount may discourage others from entering a plea of guilty. Even when the prosecution case is overwhelming a discount should be given to ensure that accused persons do not view the entering of a plea of guilty as being pointless.
He made full admissions in that second interview, and provided a statement four days later, a witness statement. In those circumstances it would be inconceivable that he would plead not guilty... [i]f he was providing or offering to provide assistance in the prosecution of Mr Pourzand.
The learned sentencing Judge erred by proceeding on an incorrect factual basis that the range of damage sustained during the arson was between $14.4 million and $19.9 million.
PARTICULARS
Thus it can be seen that the potential repair / reinstatement range in round terms may fall somewhere within the range $14,000,000 to $16,000,000, depending on which logic is utilised.
We must stress that the figures quoted, based on costs supplied per square metre of building, are very precautionary and only a rough guide. Accurate costs will only be established on completion of a scope of works and an accurate costing thereof. Furthermore if works were to be undertaken then the above estimates do not take into account any mitigation / salvage effort which may include re-design works to mitigate costs. Obviously detailed scoping by engineers and architects may result in savings. Any such savings are unknown and not provided for in the above.
We do however trust that this preliminary overview is of some assistance as some logic / science has been applied to the question.
FIANNACA J: So how rubbery?
VANDONGEN, MR: Well, you can see from the report high level estimates that can change dramatically according to whether or not the assumptions upon which the report is based are correct or not.
FIANNACA J: $10 million?
VANDONGEN, MR: I don't know.
FIANNACA J: $5 million?
VANDONGEN, MR: I don't know.
FIANNACA J: We're talking, Mr Vandongen, about a very significant - - -
VANDONGEN, MR: Yes.
FIANNACA J: - - - degree of damage, if not destruction, of a commercial building and it doesn't seem to me to be particularly surprising that the cost would be somewhere in the millions given that your client seemed to think that smoke damage could amount to six to $700,000.
VANDONGEN, MR: What your Honour says is perfectly correct and I wouldn't argue with that, but it at least places the estimate in the statement of material facts in its proper context. I can't do any more than point to those shortcomings in the estimates that have been arrived at.
My learned friend also said at the very outset that the facts are accepted, and the facts include that the ultimate cost was between 14.4 and 19.9. At the time that that was handed up I indicated that the 14.4 million was the lowest end of the repair option and the 19.9 was the highest end of the demolish and rebuild option. So, yes, they are rubber figures, but in the State's submission they have some hard outlines at those ends which allow your Honour to understand the scope. And I appreciate that there were difficulties in the way that that estimation was done, but they're quite detailed estimations and those difficulties are because of the nature of the fire.
The fire resulted in extensive damage to the building, rendering it unstable, unusable and likely to be demolished. The damage to the premises has been estimated by an insurance loss adjuster to be between $14.4 million and $19.9 million. Those figures were described by your counsel as being rubbery because they depend on a number of assumptions being made which may not eventuate. That may be so, but, having read the loss adjuster's report, I am satisfied the lower figure is a realistic assessment. Ultimately the damage was in the millions of dollars, and the building may be unusable. If you believed that $600,000 to $700,000 damage would only cover a refitting of the building, it could not have come as a surprise to you that the much greater damage actually caused would cost in the millions of dollars.
...
Between 12.16 am and 8.00 am on 15 March 2017, Mr Pourzand made a claim upon the insurance company through his insurance broker for the damage to the building. If the insurance claim had been met, the payment was expected to be between $14.4 million and $19.9 million. The insurance company did not pay on the claim, and on 8 September 2017 Mr Pourzand withdrew the claim. At the time that the prosecution was commenced in this court, the insurance company had paid out over $207,000 on security assessments and similar activities. However, the State said that Mr Pourzand subsequently paid that sum to the insurance company, so that ultimately there was no financial detriment to the insurer.
...
Factors that were more serious in the present case include the extent of the damage actually caused, which has been valued at between $14.4 million and $19.9 million, compared to between $1.25 million and $2.3 million in the Premier Hotel case. The hotel in that case was not destroyed. The intent to defraud was also significantly less in that case. Further, the benefit you stood to gain was much greater than the payment received by the four offenders who were recruited in that case. Also, you alone did all the things necessary to commit the arson in this case.
In response to the fire, numerous firefighters attended and conducted fire-suppression activities for in excess of six hours. Significant damage was caused to the building, rendering it unstable, unusable, and likely to be demolished. The cost to the Department of Fire and Emergency Services to attend was approximately $38,000, which sum has since been reimbursed by you. The value of the damage to the premises is estimated to be between $8.85 and $19.9 million.
Between 12.16 am and 8 am on 15 March 2017, you made a claim under the insurance policy through your insurance broker. If the claim was paid, it was expected at that time to be between $14.4 million and $19.9 million, though subsequent reports indicate that the figure at the lower end could be as low as $8.85 million. No claim was ever paid. However, the insurance company did pay out over $500,000 on security, assessments and other related costs, which sum has been reimbursed by you. (emphasis added)
A sentencing judge cannot ordinarily be said to have erred by proceeding in a manner contrary to, or without having regard to, evidence which was not before the sentencing court. A miscarriage of justice may arise from the absence of material evidence before the primary court. However, it is clear that such a miscarriage will not arise in all cases, and that the identification of miscarriage must be undertaken consistently with the nature of an appeal, in a manner that does not 'have the practical effect of obliterating the distinction between original and appellate jurisdiction'.
Issues raised by the appellant's supplementary submissions
You have said that Mr Pourzand's original plan was to use gas cylinders, which you refused to use because you believed there was a danger of explosion and people getting hurt, although there was no suggestion there would be anyone else at the premises.
Finally, in terms of aggravating factors, the nature of the fire, even on your belief, was such that Fire and Emergency Services would need to attend to put it out and the lives of officers could be put at risk.
You claim to have left the backdoor open to avoid an explosion of fire through the door if firefighters had to open it. You claim that you wanted to avoid injury to the firefighters and that you thought they could fight the fire through the open door. I accept that you had those thoughts, but at the same time they indicate that you believed a fire was likely to develop of such a size as to put the lives of firefighters at risk if they had to break through the door. While you did not believe the building would be destroyed, you knew you were creating a very significant and dangerous fire. (emphasis added)
First, the offence was premeditated and involved a great deal of planning, both in terms of how to commit the arson and how to avoid detection. You made important contributions to that planning and took the initiative with some of the purchases you made and the way in which you proceeded to light the fire.
Fifthly, the damage actually caused amounted to destruction of the building, which was a very valuable property. While you are to be sentenced on the basis that you only intended to cause damage and believed that was what would occur, not that the building would be destroyed, the objective reality of what happened increases the seriousness of your offending because it demonstrates how dangerous your actions were and the obvious fact, as I said earlier, that fires are difficult to control. At the very least, this fact neutralises the facts that were put on your behalf in mitigation, which were said to demonstrate an intention to moderate the fire. I will come to those shortly.
Finally, in terms of aggravating factors, the nature of the fire, even on your belief, was such that Fire and Emergency Services would need to attend to put it out and the lives of officers could be put at risk. The fact is they were unnecessarily put at risk because of your offending. (emphasis added)
As for the attempted fraud, the size of the claim that you believed would be made is an aggravating factor. This was an attempted fraud on a large scale, which became significantly larger after the fire.
The planning and degree of deception, including the removal of CCTV devices, the creation of an alibi and the making of arrangements for the collection of goods to create the impression that Mr Pourzand was genuinely moving his business chattels out of the building, are further aggravating factors. (emphasis added)
You enabled the attempt to be committed by causing the damage by fire which was to be the basis of the claim. However, it was never intended that you would lodge the claim or pursue it for Mr Pourzand. Your criminal responsibility is less than his, but your contribution was crucial.
The sentencing judge went on to make clear that it was Mr Pourzand who was going to pursue the insurance claim.[100]
I have given consideration to whether it would be appropriate to suspend the sentence conditionally or otherwise. Taking into account all relevant factors that I have referred to in these remarks, I am positively satisfied that suspension is not appropriate in this case because of the seriousness of the offending and because I do not consider your personal circumstances to be exceptional. ... Your case calls for an immediate term of imprisonment.
You have said you would like to compensate the Department for the expenses of attending the fire and putting it out, or at least make a contribution, but that is unrealistic at this stage, given your financial circumstances.
[The appellant] has raised with me in the last day or two the prospect of - there's in the statement of material facts a reference to a cost of $38,000 incurred by the Fire Department in terms of the fighting of the fire, and has said that he would be prepared to pay for that, at least his share of it, given that Mr Pourzand was the person who counselled him to commit the offence.
But I think the reality of that is that that would only be feasible if your Honour was to impose a suspended term of imprisonment because the reality is that he would not be in a position to pay that. And if your Honour was to release him on a suspended term of imprisonment, then it would be on a monthly payment plan I think rather than being able to pay it in a lump sum. So there is I suppose the capacity to do that but not a capacity if he was incarcerated.
Conclusion as to matters raised by supplementary submissions
One matter that he has articulated to us specifically is that he wishes to challenge the basis of the damage report. He is of the view that he can prove by other evidence that the damage was in fact nothing like $8 million, it was something like $800,000. He says he can do that through other evidence. We're not privy to it but ... it just places us in a difficult position, your Honour, to continue.
(1) Leave to appeal is granted on ground 2 set out in the Amended Appellant's Case filed on 7 May 2019.
(2) The respondent's application in an appeal filed on 30 May 2019, for leave to adduce additional evidence in the appeal, is granted.
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[2] As there is no challenge to this decision, it is unnecessary for this court to consider the basis on which a plea may be withdrawn following conviction of the charged offence.
[4] The State of Western Australia v [NI] [2018] WASCSR 82 [102] - [104].
[10] Sentencing remarks [14] - [15].
[12] Sentencing remarks [17] - [20].
[14] Sentencing remarks [24] - [25], [28].
[16] Sentencing remarks [30]. See also [131].
[19] Sentencing remarks [34] - [35].
[21] Those details were also provided on 28 July 2017 in a signed statement to the police (see Sentencing remarks [37]).
[24] Sentencing remarks [40] - [41].
[27] Sentencing remarks [44] - [46].
[28] Sentencing remarks [47], [56] - [57].
[30] Sentencing remarks [61] - [63].
[34] Sentencing remarks [80] - [82].
[35] Sentencing remarks [82] - [83].
[50] Sentencing remarks [100] - [104].
[51] Sentencing remarks [115] - [116].
[52] Sentencing remarks [34], [118] - [122].
[54] Sentencing remarks [140] - [144].
[57] Sentencing remarks [147] - [154].
[58] Sentencing remarks [35], State's Outline of Submissions in relation to sentence, par 5 (AB 218), Offender's Supplementary Submissions on sentence, par 8 (AB 238 - 239), primary ts 40, 43 - 45, Committal Report.
[60] State's Outline of Submissions in relation to sentence, par 5 (AB 218), Offender's Supplementary Submissions on sentence, par 8 (AB 238 - 239), primary ts 40.
[61] State's Outline of Submissions in relation to sentence, par 6 (AB 218), Offender's Submissions on sentence, par 20 (AB 229), State's Further Submissions as to sentence, par 8 (AB 234), primary ts 40, 68.
[62] Sentencing remarks [3], [101].
[63] Mussarri v The State of Western Australia [2018] WASCA 46 [42] - [52] (Buss P).
[64] Hume v The State of Western Australia [2019] WASCA 53 [46].
[65] Section 9AA(1) of the Sentencing Act (definition of 'head sentence').
[67] Kirby v The State of Western Australia [2016] WASCA 199 [24] and cases there cited.
[68] Abraham v The State of Western Australia [2014] WASCA 151; (2014) 244 A Crim R 1 [56] (Buss JA, McLure P agreeing).
[71] Beins v The State of Western Australia [No 2] [2014] WASCA 54 [58]; Abraham [58] - [61]; Kirby [26].
[72] Winmar v The State of Western Australia [2018] WASCA 155 [31].
[73] Gobetti v The State of Western Australia [2017] WASCA 130 [79], adopted in Winmar [31] and Ugle v The State of Western Australia [2018] WASCA 97 [23].
[74] House v The King (1936) 55 CLR 499, 505.
[76] Responsive submissions provided by the appellant by email dated 1 May 2020, par 2.
[78] See Francis v The State of Western Australia [2019] WASCA 43 [83].
[81] See the figure at AB 261, being the minimum cost of rebuilding, and the figure at AB 262, being the maximum cost of a full demolition and rebuild.
[86] Sentencing remarks [30], [32], [131].
[87] Affidavit of Leslie Navin Gabriel sworn 30 May 2019, annexure B (AB 14 - 43).
[89] The State of Western Australia v Pourzand [2019] WASCSR 50 [10] - [11].
[90] Wellstead v The State of Western Australia [2019] WASCA 130 [91], referred to with evident approval in Vander Waide v The State of Western Australia [2019] WASCA 148 [43].
[97] Sentencing remarks [89] - [90].
[98] Sentencing remarks [91] - [92].
[100] Sentencing remarks [82] - [83].
[101] Sentencing remarks [125] - [138].
[109] This matter was raised with the appellant at appeal ts 47.
(1936) 55 CLR 499