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[2001] VSC 129
Supreme Court of Victoria
2001-05-03
SMITH J
Original judgment source is linked above.
Administrative Law - appeal from VCAT - right of one co-owner to apply for permit over common property - natural justice.
"Insofar as the proposed development relates to the common property of body corporate number 18926, the application is unauthorised and invalid not having been made by or on behalf of the body corporate, the only body possessing the capacity to make such an application in respect of the common property.:
An additional ground to review served on 31 July was as follows:
"5. Neither application for a planning permit was or is competent on account of non-compliance with the provisions of the Sub-Division Act 1988: see Sub-Division Act 1988 s. 5; Sub-Division (Body Corporate) Regulations 1989 (Statutory Rule No. 249/1989) and Strata Tiles Act 1967. Accordingly neither decision of the responsible authority is valid."
She presented her submissions on these matters and was supported by the objectors who were present in person. Submissions were made in response on behalf of the responsible authority and its submissions were supported by Mr Jewell on behalf of the permit applicants. The argument on what was described as the "preliminary point" concluded mid afternoon and it was agreed amongst the parties that even if a ruling on the preliminary point could be given forthwith it would be impossible to conclude the hearing that day. The Tribunal noted in its subsequent reasons that no party was enthusiastic at the prospect of proceeding to more general planning merits without a determination on the "preliminary point". The Tribunal stated:
"We elected to reserve our ruling on the 'preliminary point' leaving the parties to consider the most convenient course for the further hearing of the matter once the reserved ruling was published."
Submissions at the Tribunal hearing - objectors
"A member must not, and must ensure that the occupier and other members does not - (a) use the common property or permit the common property to be used in such a manner as to unreasonably interfere with or prevent its use by other members of occupants of lots or their families or visitors."
"(c) the owners for the time being of the lot are the members of the body corporate while they are owners; and (d) any common property vests in those owners as tenants in common in shares proportional to their lot entitlements".
Submissions at the Tribunal hearing - the council
"primarily concerned with or called upon to make determinations as to title or to decide issues under the general law of property".
It noted, however, that there may be occasions where it is proper for the tribunal to determine issues of title.[1] The tribunal then stated that the effect of the argument for the authority was that not only that the title issue raised by Ms. Hickey did not render the grant of a permit illegal but that the title issue would be an irrelevant consideration in determining whether to grant a permit. The tribunal then referred to s. 48 of the Act. After referring to its heading "What if the applicant is not the owner?", the section was quoted:
"(1) If the applicant is not the owner of the land for which the permit is needed, an application must -
(b) include a declaration by the applicant that the applicant has notified the owner about the application.
(2) The person must not obtain or attempt to obtain a permit by wilfully making or causing to be made any false representation or declaration either orally or in writing."
The Tribunal then noted the effect of s. 57 of the Act which gives a right of objection to a permit application for use or development to "any person who may be affected by the grant of a permit". The Tribunal then asked the rhetorical question - why does the statute require the owner to consent or to be notified if issues of title are irrelevant? They noted that there were ample provisions to protect the owner of land who has an interest as an owner or occupier of nearby land. The Tribunal reasoned that s. 48 was enacted upon the premise:[2]
"that the owner of land the subject of a permit application for use or development has an interest in the character of owner in the outcome of the application and has a right to be heard in that character under section 57 as an objector."
It then noted that it interpreted the word "owner" in s. 48 to refer to the holder of the fee simple interest in land as opposed to short term lease holders, purchasers, option holders and the like.
"We are persuaded the issues raised by Ms. Hickey as to ownership are relevant to the exercise of the discretion to issue or not issue a permit. As at present advised, we regard those issues as so significant that they would in themselves justify determination by this Tribunal that no permit should issue and that the responsible authority's determination should be set aside."
The Tribunal then indicated that it would fix the matter for directions to consider the further conduct of the application.
" GROUNDS OF APPEAL A1 - The Tribunal erred in having regard to the fact that the first respondent as the owner of Unit 1, 49 Robe Street, St Kilda ("Unit 1") had not provided her consent to the proposed use and development of the subject land. A2 - the Tribunal erred in finding that the views of the first respondent as owner of Unit 1 in relation to non planning considerations were relevant to its decision. A3 - The Tribunal erred in having regard to an irrelevant consideration, namely that the first respondent as the owner of Unit 1 had not provided her consent to the proposed use and development of the subject land. A4 - the Tribunal erred in regarding the absence of the consent of the first respondent as determinative of the application before it. A5 - the Tribunal erred in determining the application before it solely on the basis of the proprietary rights asserted by the first respondent. A6 - The Tribunal denied the appellant, and the fifth and sixth respondents (as applicants for the permit, and respondents to the application for review):- (a) natural justice; (b) procedural fairness - in determining the application before it without hearing the merits of the application. A7 - the Tribunal denied the appellant and the fifth and sixth respondents: - (a) natural justice; (b) procedural fairness - by finding the first respondent's argument in relation to the absence of consent to be of such significance as to be determinative of the application before it without having regard to any other considerations bearing upon the merits of the application. B - The questions of law which arise for determination are as follows:- Questions of Law B1 - Was the absence of consent of the first respondent to the proposed use and development of the subject land a relevant planning consideration? B2 - Did the Tribunal have regard to an irrelevant consideration, namely the absence of consent by the first respondent to the proposed use and development of the subject land? B3 Was the consent of the first respondent to the proposed use and development of the subject land a mandatory consideration to which the Tribunal was obliged to have regard and give effect? B4 - Was the absence of the consent of the first respondent to the proposed use and development of the subject land determinative of or fatal to the application for a permit? B5 Did the Tribunal deny the appellant and the fifth and sixth respondents:- (a) natural justice; (b) procedural fairness in determining the application before it without:- (c) hearing the merits of the case; (d) having regard to any other considerations bearing on the merits of the application?"
"28A. Dealings with common property. (1) The share in the common property of a member of a body corporate cannot be dealt with except - (a) as part of a dealing with the member's lot; or (b) under section 32 or 32A; or (c) by the body corporate in accordance with the regulation."
Sub-sections (3) and (4) of Section 28 refer to title matters and Section 32 and 32A also refer to matters going to title and boundaries. The expression "dealing" is not defined in the Sub Division Act 1988. The term is one used in the Transfer of Land Act 1958 and I suggest that in the Subdivision Act 1988 it relates to dealings of the kind referred to in that Act.
"As at present advised, we regard those issues as so significant that they would in themselves justify a determination by this Tribunal that no permit should issue . . .".
In my view the Tribunal was indicating that the issues raised by Ms Hickey were of such significance that they outweighed other relevant considerations. They did not ignore any other considerations.
"As at present advised, we regard those issues as so significant that they would in themselves justify a determination by this Tribunal that no permit should issue and that the responsible authority's determination should be set aside."
[1] citing Calabro v Bayside City Council {1999} VSC 509 and referring to the declaratory power s. 149B of the Planning and Environment Act.
[3] citing Riley v Pentilla [1974] VicRp 67; [1974] VR 547
[4] Northern NSW FM Pty Ltd v Australian Broadcasting Tribunal & Anor (1990) 26 FCR 39; Australian Trade Commission v Underwood Exports P/L (1997) 49 ALD 426; see discussion M. Batskos, Natural Justice and the Constitution of Tribunal Membership AIAL Forum No. 16.
Port Phillip City Council
Hickey [2001] VSC 129
(1994) 82 LG ERA 205
(1972) 129 CLR 270
(1990) 26 FCR 39