3443/06 - OWNERS STRATA PLAN 4085 v MALLONE
JUDGMENT
1 HIS HONOUR: In this unfortunate case, the plaintiff is likely to suffer damage to its building through rocks falling off an area of a cliff face which is owned by the defendant.
2 The real villain appears to be the person who carelessly quarried in the area in the first half of the 20th Century. This person drilled holes for explosives to dislodge rock, but did not remove all the rock that had been shattered by the explosions. Over time, loose rocks have dislodged themselves from the cliff face and have descended the cliff and hit the plaintiff's building.
3 However, neither this person, nor the local council who, over objection of neighbours, sanctioned the building of the plaintiff's building close to the cliff face are sued. The action is between the plaintiff and the proprietor of the relevant part of the cliff face in nuisance and for a quia timet mandatory injunction.
4 There is virtually no contest as to the relevant facts and the principles of law involved in this case. Although the experts reached different views as to the appropriate methods of remediation, they hardly differed as to the cause of the present problem and neither was cross-examined. However, it is a very difficult task indeed to determine what just result should follow from those facts and principles.
5 The plaintiff is the Owners Corporation for Strata Plan 4085 and thus the owner of the Common Property of No 78 Undercliffe Road, Undercliffe. The building extends close to the foot of a cliff which is approximately 20 metres high for most of its length.
6 The defendant is the owner of No 12 Osroy Avenue, Earlwood. The defendant's house is at the top of the cliff.
7 The defendant is a pensioner who is not fluent in the English language. Her house appears to be her only substantial asset.
8 Most of the cliff face is the plaintiff's property. However, the boundary crosses the cliff face on the South Western corner and part of the face is owned by the defendant. Mr Shirley, the defendant's expert, has calculated that the major area of the cliff face (91.4%) is owned by the plaintiff with 6% being owned by the defendant and 2.6% by the owner of No 14 Osroy Avenue.
9 There is no direct evidence that rocks have fallen onto the plaintiff's building from the defendant's part of the cliff. The defendant acknowledges that an inference could be drawn that this is so. I indeed draw that inference and further infer that it is more likely than not that rocks will continue to so fall at irregular intervals.
10 I also find that the defendant did not engage in any activity on her land which has caused rocks to fall or has increased the risk of rocks dislodging from the cliff. Indeed the plaintiff acknowledges that this is so. The dislodgment has occurred through careless quarrying of a former proprietor or licensee of a former proprietor of the two parcels of land before subdivision and thereafter the action of natural forces such as erosion and vegetation putting its roots into cracks in the rock and splitting off fragments.
11 However, the plaintiff says that the defendant knows about the danger of rocks falling from her property to the plaintiff's property. Apart from anything else, she has been informed by the plaintiff's lawyers on a number of occasions since at least July 2005. The plaintiff says that the defendant has continued the nuisance as she has knowledge of it and has failed to take any reasonable steps to bring it to an end.
12 The proceedings were heard by me on 18 October, 2006. Mr M Cashion SC and Mr MA Izzo appeared for the plaintiff and Dr C Birch SC and Mr J Gruzman appeared for the defendant. I had a view of the locus with counsel on 11 October 2006.
13 It is to be noted that the plaintiff is the body corporate and that no individual lot owner is a party to the proceedings. I was a little concerned with this and said so. In particular, where the argument suggested that the rocks were a danger to humans, I wondered how far the body corporate had status to obtain an order.
14 Mr Cashion put that there was no doubt that the plaintiff had standing to bring these proceedings under s 227 of the Strata Schemes Management Act 1996 which provides that where the owners jointly have a right of action, that right may be exercised by the Body Corporate; see Owners-Strata Plan 43551 v Walter Construction Group Ltd (2004) 62 NSWLR 169. Some joint right is involved in this case, but other several rights may also be involved. Further, the ramifications of proceedings taken under that section are unclear. However, the defendant took no point on this question and the court proceeded to deal with the merits of the claim. I merely mention the point to show it has not been overlooked.
15 Despite intellectual difficulties as to how this point was reached, both sets of counsel agree generally on the principles of law to be applied.
16 I say this because, as Dr Birch points out, the law prior to 1940 was that generally speaking there was no liability on a landowner if rocks fell from his or her land as a result of weathering or other natural forces; see eg Pontardawe Rural District Council v Moore-Gwyn [1929] 1 Ch 656, 660. Likewise, there was no liability for the natural spread of prickly pear: Sparke v Osborne (1908) 7 CLR 51 and see Giles v Walker (1890) 24 QBD 656.
17 One starts a consideration of the modern law with the decision of the House of Lords in Sedleigh-Denfield v O'Callaghan [1940] AC 880 which approved the dissenting opinion of Scrutton LJ in Job Edwards Ltd v Birmingham Navigations [1924] 1 KB 341. Viscount Maugham stated the relevant principle, as follows (at 894-895):
"In my opinion an occupier of land 'continues' a nuisance if with knowledge or presumed knowledge of its existence he fails to take any reasonable means to bring it to an end though with ample time to do so. He 'adopts' it if he makes any use of the erection, building, bank or artificial contrivance which constitutes the nuisance. In these sentences I am not attempting exclusive definitions."
18 In the Job Edwards case, Scrutton LJ quoted "the law in principle" from Salmond's Law of Torts 5th edition (Sweet & Maxwell, London, 1920) page. 260 (at 359-360):
"When a nuisance has been created by the act of a trespasser, or otherwise without the act, authority, or permission of the occupier, the occupier is not responsible for that nuisance unless, with knowledge or means of knowledge of its existence, he suffers it to continue without taking reasonably prompt and efficient means for its abatement."
19 In Hargrave v Goldman (1963) 110 CLR 40 at 51-52 per Taylor and Owen JJ, the High Court approved Sedleigh-Denfield, quoting the identical passage from Salmond as the correct test of liability.
20 Taylor and Owen JJ also noted (at 51) that the same principle had been applied previously in Australia in Torette House Pty Ltd v Berkman [1939-1940] 62 CLR 637.
21 In Torette, Dixon J quoted from Noble v Harrison [1926] 2 KB 332 at 338 per Rowlatt J setting out three circumstances in which liability for nuisance will arise, the third of which overlaps with the principle in Sedleigh-Denfield (quoted at 657):
"(3) if, when it has arisen without his own act or default, he omits to remedy it within a reasonable time after he did or ought to have become aware of it."
22 There is therefore no question that the plaintiff has correctly based its claim for a mandatory injunction on the principle in Sedleigh-Denfield establishing its cause of action in nuisance. There is no question that the defendant owes a duty to take reasonable care to abate the nuisance caused by rocks falling from its land onto the plaintiff's property. The fundamental question concerns the scope of that duty.
23 In Goldman v Hargrave (1966) 115 CLR 458 the Board of the Privy Council upheld the decision of the High Court in Hargrave v Goldman, finding in favour of the respondent on the basis of negligence. In Leakey v National Trust for Places of Historic Interest or Natural Beauty [1980] QB 485 the English Court of Appeal held (at 514-515) that the outcome in Goldman v Hargrave did not turn upon a distinction between the forms of action in negligence and nuisance, otherwise observing (at 517) that the duty owed in nuisance had come to be expressed as a duty of care as a consequence of the historical development of that concept in the law of torts. Having found that a duty of care arose, the High Court similarly concluded (at 53) that, " … it is of no consequence whether his liability rests in negligence or nuisance."
24 Fundamental to the outcome of the present case is a determination of the scope and content of the defendant's duty to abate the nuisance caused by rocks falling from its property onto the property of the plaintiff.
25 The scope of the duty recognised in Sedleigh-Denfield was discussed in Goldman v Hargrave (at 467-468). The Privy Council said the scope of the duty was limited to taking reasonable steps to abate the nuisance, identifying factors such as (at 464, 467-486):
v Effort, and;
v Expense.
26 According to the Privy Council the standard of reasonableness varies according to the individual circumstances of the occupier, their individual financial and physical capacity to abate the nuisance, as well as the relative resources of the threatened neighbour, and objective factors relevant to the standard of the duty such as the magnitude of the risk. Thus arises a "measured duty of care", so that (at 467):
"… where the hazard could have been removed with little effort and no expenditure, no problem arises. But other cases may not be so simple. In such situations the standard ought to be required of the occupiers what it is reasonable to expect of him in his individual circumstances. Thus, less must be expected of the infirm than of the able bodied: the owner of a small property where a hazard arises which threatens a neighbour with substantial interests should not have to do so much as one with larger interests of his own at stake and greater resources to protect them: if the small owner does what he can and promptly calls on his neighbour to provide additional resources, he may be held to have done his duty: he should not be liable unless it is clearly proved that he could, and reasonably in his individual circumstance should, have done more."
27 The Board asserted (at 468) that such limitation was consistent with the majority decision in Job Edwards Ltd v Birmingham Navigations [1924] 1 KB 341, given the cost to the occupier of removing the hazard estimated at £1000; with the reasoning of Scrutton LJ (dissenting) in the Job Edwards case approved in Sedleigh-Denfield; and with Pontardawe Rural District Council v Moore-Gwyn [1929] 1 Ch 656, "where to maintain the rocks in a state of safety would have cost the occupier some £300".
28 The Board pointed out (at 464) that Scrutton LJ had pondered a different set of facts where liability would be imposed "if by reasonable care he can render it harmless, as if by stamping on a fire", juxtaposing this with the "very simple step" required to abate the nuisance in Sedleigh-Denfield, that of placing a grid in the drain. Similarly, the Board noted (at 467) that in Hargrave v Goldman the occupier was held liable by the High Court for failing to take the very simple and reasonable step of dousing the flames in water to prevent the spread of fire to neighbouring property.
29 In Leakey v National Trust for Places of Historic Interest or Natural Beauty [1980] QB 485, Megaw LJ said:
"The defendant's duty is to do that which is reasonable for him to do. The criteria of reasonableness include, in respect of a duty of this nature, the factor of what the particular man - not the average man - can be expected to do, having regard, amongst other things, where a serious expenditure of money is required to eliminate or reduce the danger, to his means.