The 2009 Contempt Proceedings
34On 24 February 2009, BBWC filed a notice of motion seeking variation of order 2 of the 2007 consent orders by deleting "28 February 2008" and replacing it with "28 February 2010", with the effect of seeking to suspend the restraining order in order 1 until 28 February 2010.
35On 26 March 2009, the council filed a notice of motion and statement of charge of contempt in the Court ("the 2009 contempt proceedings"). The statement of charge was as follows:
[BBWC] is charged that, as and from 28 February 2009, and continuing, [BBWC] has committed contempt of court, and remains in contempt of court, in that it has acted, and continues to act, in contravention of an order, namely Order 1, made by the Court in these proceedings on 9 August 2007.
36On 2 April 2009, there was a hearing before Lloyd J of BBWC's motion to vary the 2007 consent orders so as to seek suspension of order 1 until 30 June 2009.
37On the same date, there was a mention of the council's contempt motion in the same proceedings. Mr Wayne Brown was present in Court throughout the proceedings on 2 April 2009.
38On 17 April 2009, Lloyd J dismissed BBWC's motion to vary the 2007 orders (Pittwater Council v Brown Brothers Waste Contractors Pty Ltd [2009] NSWLEC 50).
39On the same day, BBWC pleaded guilty to the charge of contempt.
40On 27 March 2009 there was a telephone conference between BBWC's solicitor, Mr Hudson, and counsel, Mr Philip Clay. A file note of this meeting dated 30 March 2009 by Mr Hudson, stated that it was the view of Mr Clay of the 1995 consent that:
...it probably doesn't allow storage of containers with material in it and coupled with the way the order was framed previously it may be that you are in contempt of the order if you do have material on site that is stored as it is waste and therefore in a sense part of a waste management facility which you have an injunction against you from doing.
41On 22 June 2009, there was a hearing as to the appropriate sentence to be imposed in respect of the guilty plea. Written submissions filed by the council that day contained the following contention:
28. Construction of Order 1. It is plain that order 1 made on 8 August 2007 has two limbs. Even if there be scope for argument about what activities would amount to use "for the purpose of a waste management facility", there is no scope for argument that the respondent has at all material times been forbidden from:
(a) storing,
(b) sorting, and
(c) stockpiling
"materials and things" on the Property. From that prohibition there is carved out one exception, namely, the storage of trucks and waste containers.
29. The following propositions are, it is submitted, incontestable.
(a) First, the order on its face distinguishes "materials and things" and "trucks and waste containers".
(b) Secondly, at the core of the "material and things" the subject of the prohibition is waste.
(c) Thirdly, the order prevents the storage of waste in absolute terms. It does not matter whether the storage is loose on the ground, or in a container; it is forbidden.
30. Yet, seemingly, BBWC contends that storing of waste on the Property, so long as it is in a waste container, is permitted. That contention should be rejected. There is no basis for construing the carve-out, limited as it is to "trucks and waste containers", in a way which subverts the force of the prohibition, so as to permit the storage of waste.
31. Further, the first limb of the order supports that construction. The prohibition upon the use of the land as a waste management facility is wholly consistent with the second limb prohibiting storage of waste in bins. On the other hand, the construction for which BBWC contends is inconsistent with the prohibition upon the use of the land as a waste management facility. For whenever there is regular storage of waste on land (whether in a skip bin or otherwise), then management of that waste (even in a rudimentary fashion) is contemplated.
32. Further submissions will be made following the cross-examination of Mr Wayne and Gary Brown. It may be noted that the respondent, although having pleaded guilty, and facing this hearing as to penalty, has taken no steps to clarify with the Court or the Council whether its conduct of storing waste in waste bins on the property was authorised, and has adopted a course materially different from that contained in Mr Wayne Brown's affidavit of 2 April 2009 where, among other things, he swore (para 11) that:
"Skips that arrive on Monday, Tuesday, Wednesday and Thursday with waste would be taken to the tip on the next day. Skips that arrive on Friday or Saturday would be taken to the tip on the following Monday."
42At the hearing, however, Mr Clay, on behalf of BBWC stated the following (22/06/09 T3.25-3.33):
It's not a criticism of Mr Leeming in any sense your Honour, can I put it this way, it is accepted that it is a breach of the order to bring onto the site bins with waste within them and leave them at the site overnight as the case may be or Mr Leeming says one bin might be there for two weeks a particular type of bin. So that in terms of the order itself it distinguishes between containers and waste and whilst there is potentially some ambiguity in the terms of the development consent, but in terms of the order itself the advice I've given to the respondent and the respondent accepts is that waste is material, material in a container and that it is a breach of the order to bring on to the site waste in a waste container giving rise to its storage.
43This caused the foreshadowed construction issue to fall away.
44Later in cross-examination Mr Wayne Brown gave the following evidence (22/06/09 T45.18-45.43 and 46.16-46.37):
Q. Mr Brown, do you believe that your company may lawfully bring to its site a full bin of waste and leave it there overnight?
A. I did, but after conversations today, I don't think so.
Q. Do you have any doubt about it?
A. It goes back to the original DA, so, not 100 per cent, no.
Q. My question was, do you have any doubt about it, and do you say that you're not - you don't have an absolutely clear cut view one way or the other? Is that the position?
A. That's right.
Q. Do you think there's some legal uncertainty about whether your company can bring back a full bin of waste and store it on the land overnight?
A. Ambiguity, yes, in the original DA.
Q. Just so that we're clear, my question was addressed to what was lawful by your company, and more precisely I mean, do you think, consistently with the orders, breach of which your company has pleaded guilty to, you can bring back a full bin of waste and store it overnight on the property?
A. Do we believe that? Sorry?
Q. Do you, sir, believe that, consistently with your company's obligation to obey this Court's order, you can pick up a full bin of waste, bring it back to the property and store it there overnight?
A. I don't now, no. Don't now.
...
Q. Now, I understood when, if you remember, Mr Clay asked you some questions about when in your affidavit your company has a state of mind or believes something, that's your personal belief; is that how we're to read this affidavit?
A. Correct.
Q. Well, do you, Mr Wayne Brown, believe today that you're able to store full bins on the property?
A. Well, as I said - yes, but I think that's changed today, after talks with our solicitors.
Q. Well, let's be more precise. At twenty to one this afternoon--
A. No.
Q. So you would no longer maintain what you say in the first sentence of paragraph 18 on page 5 of your affidavit sworn today?
A. Correct.
Q. That's because, is it, you now understand that the orders of the Court prohibit Brown Brothers Waste Contractors from taking full bins of property from customers and storing them overnight on the property?
A. Correct.
45In final addresses, Mr Clay submitted that it was not necessary to include any element of personal deterrence in the imposition of an appropriate penalty on BBWC because, albeit belatedly, Mr Wayne Brown, as the mind and will of the company, understood and accepted that it was contempt to store skip bins full of waste on the property (22/06/09 T94.35).
46On 9 December 2009, the Court made the following orders in the 2009 contempt proceedings (Pittwater Council v Brown Brothers Waste Contractors Pty Limited (No 2) [2009] NSWLEC 210):
(a)BBWC was convicted of the charge of contempt of Court as particularised in the statement of charge;
(b)BBWC was fined $45,000; and
(c)BBWC was ordered to pay the council's costs of the contempt proceedings up to and including 22 June 2009 - a sum amounting to $105,000.
47In Brown Brothers Waste Contractors (No 2) the Court noted the following concerning Mr Wayne Brown's state of mind (at [7], [49] and [57]-[60]):
7 While BBWC pleaded guilty on 17 April 2009, during the course of these proceedings it became apparent that Mr Wayne Brown did not understand that his company was in breach of the Court order by reason of the storage of skip bins containing waste material on the Premises. He gave evidence to this effect notwithstanding that a plea of guilty had been entered in relation to the charge and the charge having been particularised as the storage "of any materials" on the Premises. I shall return to the implications of this belief below.
...
49 However, Mr Brown went on to admit in his affidavit that "full bins stayed overnight on the Property during this period because the company believed and still believes that its able to store full bins on the Property" (emphasis added). Mr Brown also admitted that some of the full bins were stored on the Premises without cover during this period as the company "was not aware it had to cover full bins and is still not aware of any such requirement".
...
57 As referred to above, Mr Brown confessed that until the date of the hearing, he believed that he could lawfully bring full bins of waste onto the Premises. That is to say, it was his view that he was, and always had been, permitted to store bins full of waste material on the Premises. He stated that this belief came from ambiguity with the terms the original DA and the Court order.
58 Mr Brown stated that he had only briefly read the Court orders "sometime ago" but that his interpretation of the orders was that BBWC could store containers with waste on the Premises for an unlimited period of time.
59 Mr Brown went on to claim that he did not understand the letter received from Council at the end of March to mean that the Council was of the view that BBWC could not bring back full skips of material onto the Premises. It was not until sometime subsequent to this letter that he became aware of Council's position.
60 According to Mr Brown, it was his solicitor who told him that pursuant to the Development Consent BBWC could store containers on site with waste in them. Mr Brown stated that his solicitors told him that the order was ambiguous inasmuch as it was not clear whether or not the prohibition against the storage of containers applied to empty or full containers. Mr Brown was unable to give any further details of the advice provided nor identify which solicitor had given this advice. He stated that the advice had been given either immediately after the hearing on 2 April 2009 or the following working day.
48Ultimately the Court concluded, however, that (at [67]-[70]):
67 I do not accept that his solicitors gave him the advice that he claims to have received, namely, that the terms of the Court order were ambiguous. The details given by Mr Brown of this very important piece of evidence were too vague for it to be credible. Rather, I find beyond reasonable doubt that any ambiguity in the order was the exclusive product of Mr Brown's state of mind, which he then sought to take advantage of.
68 Had this advice been given, it is unbelievable that in the face of potential contempt proceedings Mr Brown would not have done more to clarify the ambiguity with his legal representatives and would not have sought to err on the side of caution by ensuring compliance with the orders.
69 I find beyond reasonable doubt that Mr Brown chose to continue to receive full skip bins and to store them on the Premises if they could not be taken to the tip the same day with the knowledge that he was possibly breaching the Court order and with the knowledge that the Council was of the view that he was breaching the Court order.
70 I also find beyond reasonable doubt that this decision was taken purely for financial gain. I regard as spurious the distinction between acts of the company motivated by the desire to offer good service and acts of the company motivated by a desire to maintain or increase its business, and therefore, revenue. They are, in my view, one and the same.
49At all material times BBWC was represented by solicitors and counsel during the 2009 contempt proceedings.