[2023] WASAT 7
General information, not legal advice.
State Administrative Tribunal (WA)
2023-02-17
Original judgment source is linked above.
CITATION : OWNERS OF STRATA PLAN 58161 and HANSSEN PTY LTD [No 2] [2023] WASAT 7
Constitutional law - Judicial power - Federal jurisdiction - Whether tribunal had jurisdiction to hear and determine complaint - Building Services (Complaint Resolution Administration) Act 2011 (WA) - Building remedy order - Claim that proceeding is in federal jurisdiction - Whether the claim or defence is genuinely raised - Whether claim or defence not incapable on its face of legal argument - How tribunal forms opinion as to whether claim is not incapable on its face of legal argument - Incorporation under Corporations Act insufficient to bring proceedings within federal jurisdiction - Whether claim as to federal jurisdiction not incapable of legal argument notwithstanding decision of intermediate court of appeal rejecting similar claim - Commonwealth Constitution ss 75, 76, 77.
Building Services (Complaint Resolution Administration) Act 2011 (WA)
Corporations Act 2001 (Cth)
Trade Practices Act 1974 (Cth)
Wrongs Act 1958 (Vic)
ACCC v Daniels Corporation International Pty Ltd [2001] FCA 244; (2001) 108 FCR 123
Burns v Corbett [2018] HCA 15; (2018) 265 CLR 304
Citta Hobart Pty Ltd v Cawthorn [2022] HCA 16; (2022) 96 ALJR 476
Daniels Corporation International Pty Ltd v ACCC (2002) 213 CLR 54
Hobart International Airport Pty Ltd v Clarence City Council [2022] HCA 5; (2022) 96 ALJR 234
Mulley v Hayes [2021] FCA 1111; (2021) 286 FCR 360
Mustac v Medical Board of Western Australia [2007] WASCA 128
Oliver v Nine Network Australia Pty Ltd [2019] FCA 583
Owners of Strata Plan 58161 and Hanssen Pty Ltd [2022] WASAT 77
Seven Network v Cricket Australia (2021) 383 ALR 53
Smith v National Australia Bank Limited [2022] FCA 1186
Thurin v Krongold Constructions (Aust) Pty Ltd [2022] VSCA 226
WorkPac Pty Ltd v Rossato [2020] FCAFC 84; (2020) 278 FCR 179
WorkPac Pty Ltd v Rossato (2021) 271 CLR 456
WorkPac Pty Ltd v Skene [2018] FCAFC 131; (2018) 264 FCR 536
The Tribunal's duty to ensure it has jurisdiction
... where the source of the rights and duties that are in issue between the parties is a Commonwealth law, the matter will properly be characterised as one 'arising under' that law. That will include a matter where the claim is one directly founded on a law of the Commonwealth. It will also include a claim at common law or equity, or under a law of a State, where the claim concerns a right or property which is the creation of federal law. In contrast, where the source of the rights and duties in issue between the parties is a law of a State or the common law, and the only connection with a law of the Commonwealth is that such a law is the source of one party's legal capacity to sue or be sued (and where that capacity is not in issue between the parties), the matter will not properly be characterised as one 'arising under' the Commonwealth law. Rather, the party's capacity is merely an incidental consideration.[25]
The submissions advanced by the parties in relation to the constitutional argument
(a) The same argument was carefully put to the Victorian Court of Appeal and the court expressly acknowledged that the question required a detailed consideration of the relevant High Court authorities;
(b) The conclusion of the Court of Appeal in Thurin resulted from careful and detailed analysis which proceeded over about 40 paragraphs of the court's reasons;
(c) If the argument amounted to constitutional or legal nonsense, it would not have been supported by the carefully reasoned obiter of Lee J in Oliver v Nine Network Australia Pty Ltd[29](Oliver) and Mulley v Hayes,[30] (Mulley) nor would it have been advanced by senior counsel in a number of recent cases,[31] nor would the argument have been referred to the Victorian Court of Appeal for determination in Thurin;
(d) If the argument amounted to constitutional or legal nonsense, the Attorney General would not have submitted, at an earlier stage in these proceedings (before Thurin was delivered), that the constitutional argument was capable of legal argument on its face;
(e) If the argument amounted to constitutional or legal nonsense, it would not have been necessary for the Tribunal to adjourn the Dismissal Application to await the decision in Thurin; and
(f) If the argument amounted to constitutional or legal nonsense, the Victorian Court of Appeal in Thurin would not have carefully articulated, in obiter, the reasons why it concluded the argument to be incorrect.
How is the Tribunal to form its opinion as to whether it has jurisdiction in this case?
Our opinion as to the existence of jurisdiction in this case
I certify that the preceding paragraph(s) comprise the reasons for decision of the State Administrative Tribunal.
[1] Under s 36 of the BSCRA Act, a building remedy order consists of an order that a person who carried out a regulated building service do one of the following: remedy the building service as specified in the order (s 36(1)(a)); pay an aggrieved person such costs of remedying the building service as the Commissioner or the Tribunal considers reasonable and specifies in the order (s 36(1)(b)); or pay to the aggrieved person a sum to compensate the aggrieved person for the failure to carry out the building service in a proper and proficient manner or for faulty or unsatisfactory building work (s 36(1)(c)).
[2] Under s 51 of the BSCRA Act, if the Commissioner is satisfied that a BRO issued under s 36(1)(a) of the Act has not been complied with by the person to whom it was given, the Commissioner may revoke the order and make a monetary order - that is, a building remedy order of the kind specified in s 36(1)(b) or (c) of the BSCRA Act. However, the Commissioner is unable to make an order requiring payment of an amount greater than $100,000 unless the respondent consents (s 37(2) and (3) BSCRA Act).
[3] Under s 55 of the BSCRA Act, if the Commissioner is dealing with a matter under s 51 of the Act, as was the case here, the Commissioner may, with the consent of the Tribunal, transfer that matter to the Tribunal. In making a monetary order, the Tribunal is not subject to the same monetary limits as the Commissioner (see s 38 of the BSCRA Act).
[4] Respondent's submissions dated 4 March 2022 at [9].
[5] Under s 76 of the Constitution, the Commonwealth Parliament may make laws conferring original jurisdiction on the High Court in any matter arising under the Constitution or involving its interpretation (s 76(i)) or arising under any laws made by the Parliament (s 76(ii)).
[6] Respondent's submissions dated 4 March 2022 at [8].
[7] Respondent's submissions dated 8 November 2022 at [14].
[8] Cf Citta Hobart Pty Ltd v Cawthorn [2022] HCA 16; (2022) 96 ALJR 476 (Citta) at [29].
[9] Citta Hobart Pty Ltd v Cawthorn [2022] HCA 16; (2022) 96 ALJR 476.
[13] Citta at [17]; see also at [63] and [65] (Edelman J).
[14] Mustac v Medical Board of Western Australia [2007] WASCA 128 at [48] (Martin CJ, Wheeler JA and Buss JA agreeing).
[15] Burns v Corbett [2018] HCA 15; (2018) 265 CLR 304 esp at [43], [50] (Kiefel CJ, Bell and Keane JJ), [68] - [69], [119] - [120] (Gageler J), [145] - [146] (Nettle J), [150] - [151], [187] - [188], [192] - [193] (Gordon J), [203] - [205], [252] - [257], [260] (Edelman J).
[17] Thurin v Krongold Constructions (Aust) Pty Ltd [2022] VSCA 226.
[18] Owners of Strata Plan 58161 and Hanssen Pty Ltd [2022] WASAT 77.
[19] Citta at [24], [25]; see also at [63], [65] (Edelman J).
[26] Respondent's submissions dated 8 November 2022 at [25].
[27] Respondent's submissions dated 8 November 2022 at [25].
[28] Respondent's submissions dated 8 November 2022 at [18] and Respondent's submissions dated 29 November 2022 at [17].
[29] Oliver v Nine Network Australia Pty Ltd [2019] FCA 583 at [16].
[30] Mulley v Hayes [2021] FCA 1111; (2021) 286 FCR 360, 378 - 379 at [55].
[31] Counsel for Hanssen referred to Hobart International Airport Pty Ltd v Clarence City Council [2022] HCA 5; (2022) 96 ALJR 234; Seven Network v Cricket Australia (2021) 383 ALR 53, 66; and Thurin.
[32] Respondent's submissions dated 29 November 2022 at [20] - [27], referring to ACCC v Daniels Corporation International Pty Ltd [2001] FCA 244; (2001) 108 FCR 123 cf Daniels Corporation International Pty Ltd v ACCC (2002) 213 CLR 54; WorkPac Pty Ltd v Skene [2018] FCAFC 131; (2018) 264 FCR 536 and WorkPac Pty Ltd v Rossato [2020] FCAFC 84; (2020) 278 FCR 179 cf WorkPac Pty Ltd v Rossato (2021) 271 CLR 456.
[33] Respondent's submissions dated 29 November 2022 at [5] - [12].
[34] Attorney General's submissions dated 25 July 2022 at [43].
[35] Attorney General's submissions dated 25 July 2022 at [45].
[36] Attorney General's submissions dated 22 November 2022 at [14].
[37] Smith v National Australia Bank Limited [2022] FCA 1186.
[38] Attorney General's submissions dated 22 November 2022 at [15].
[39] Attorney General's submissions dated 22 November 2022 at [16].
[40] Applicant's supplementary submissions dated 22 November 2022 at [1].
[43] Cf Citta at [67] (Edelman J).
[45] Cf Citta at [65] (Edelman J).
[47] Mustac v Medical Board of Western Australia [2007] WASCA 128 at [48] (Martin CJ, Wheeler JA and Buss JA agreeing).
[48] Cf Mustac v Medical Board of Western Australia [2007] WASCA 128 at [37] (Martin CJ).
[49] Respondent's submissions 8 November 2022 at [12].
(2021) 271 CLR 456
(2018) 265 CLR 304
(2002) 213 CLR 54
(2022) 96 ALJR 234
(2021) 286 FCR 360
(2001) 108 FCR 123
(2022) 96 ALJR 476
(2021) 383 ALR 53
(2020) 278 FCR 179
(2018) 264 FCR 536