The Lowy Decision
54As both sides of the present argument rely on various judicial pronouncements in Lowy, it is necessary to consider that decision rather closely.
55Mr Lowy objected, on both legal and merit grounds, to his neighbour's proposal to extend a ground floor terrace on the area of his property at the edge of Sydney Harbour. The Council officers recommended consent be granted on certain conditions, but Council refused consent on the grounds of the proposal's "adverse impact on the aural and visual privacy of the adjoining dwelling".
56Mr Lowy's neighbour (Mr Paino) lodged a s 97 appeal, and Mr Lowy sought joinder, pursuant to Part 8 Rule 8 of the Supreme Court Rules 1970, as then applied to the matter. Cowdroy J refused joinder because it "necessarily gives rise to appeal rights", and possibly questions of costs, but he made a DBM order in favour of Mr Lowy.
57Lloyd J upheld Paino's appeal, and granted consent on conditions, holding that a relevant provision of the applicable LEP was a development standard and not a prohibition, and need not be complied with in the circumstances (SEPP 1). Mr Lowy appealed to a strong bench of the Court of Appeal (Mason P, Handley and Giles JJA), seeking reversal of Cowdroy J's decision, and relief (in the nature of certiorari) under s 69 of the Supreme Court Act from Lloyd J's decision, on the grounds of jurisdictional error or error on the face of the record.
58Mason P and Giles JA upheld Lloyd J's conclusion that the relevant provision of the LEP was a development standard, and so amenable to SEPP 1, but Handley JA found it to be a prohibition. Hence the appeal against the grant of consent was dismissed by a 2:1 majority.
59The court extended the time within which Lowy could apply for leave to appeal from Cowdroy J's decision, and granted such leave, but dismissed that appeal.
60Handley JA noted (at [7]-[8]) that the DBM order "substantially, if not completely, protected the objector's position in the appeal" by Paino to this court, but "did not in truth make him a party" - his Honour cited s 57(1) of the Court Act, but continued:
8... Assuming, for present purposes, that the objector had standing as a party to the notice of motion to appeal from the refusal of Cowdroy J to order that he be made a party to the appeal, leave to appeal would be required (s 57(4)). No such application was made. Its only purpose would have been to obtain a right of appeal to this Court if the developer succeeded. This Court discourages applications for leave to appeal in interlocutory matters of practice and procedure, especially where the application can be seen as premature, and it is virtually certain that leave to appeal would have been refused. The objector and his advisers acted properly in not making such an application.
61The analysis of the whole matter, in both its relevant contexts, by Giles JA, is of relevance and interest, and should be quoted at regrettable length. After noting the history I have shortly recited, his Honour said (at [76]-[89]):
76Mr Lowy wished further to contest the grant of consent to the extension of the terrace. Section 57 of the Land and Environment Court Act 1979 ("the Court Act") provides that a "party to proceedings" may appeal to the Supreme Court, but Mr Lowy had been refused joinder as a party to the Land and Environment Court proceedings. ...
77... Any appeal from the decision of Lloyd J pursuant to s 57 of the Court Act was confined to a question of law, and Mr Lowy relied on the same wrong holding for error of law in the event that he was able to prosecute an appeal.
78The active parties in this Court were Mr Paino and Mr Lowy. The Land and Environment Court and the Council were joined in the summons, but both filed submitting appearances.
79In my opinion Lloyd J was not in error in regarding the relevant provision of the LEP as a development standard. Mr Lowy must therefore fail in this Court. Since it may be material to the further rights of the parties, however, it is appropriate to address to some extent other issues raised.
The appellate route
80Mr Lowy made clear that this was very much a fall-back. However, whether he can appeal is material to whether the discretionary remedy of certiorari should be granted.
81The issues raised, apart from error of law in regarding the relevant provision of the LEP as a development standard, were whether Mr Lowy should have an extension of time to apply for leave to appeal from the decision of Cowdroy J, whether he should have leave to appeal, whether Cowdroy J was in error in refusing to join him as a party, and whether he should have an extension of time to appeal from the decision of Lloyd J. It was not disputed that, if this Court overturned Cowdroy J's decision and ordered that Mr Lowy be joined as a party to the Land and Environment Court proceedings, Mr Lowy would have current standing to obtain an extension of time to appeal from the decision of Lloyd J and prosecute that appeal.
82There was also some discussion, initiated by the Court, of Mr Lowy's standing to appeal by virtue of the leave granted by Cowdroy J to appear in order to call evidence, cross-examine witnesses and make submissions.
83For the reasons which follow, I do not think that error has been shown in Cowdroy J's refusal to join Mr Lowy as a party.
84Under the EPA Act the procedures by which development consent is obtained differ according to the category of development. Particular provisions apply for local development, State significant development, designated development and integrated development, and the categories can overlap. Mr Paino's development was not in any special category. In particular, it was not designated development as provided in the EPA Act.
...
89Under the EPA Act the contest was between Mr Paino as the applicant for consent and the Council as the consent authority. Participation rights in some circumstances given to others did not arise. Mr Lowy was not a party to Mr Paino's appeal, and was not given an entitlement to be heard as if a party to the appeal.
62Giles JA went on to discuss the applicability to this court, and the operation, of Part 8 Rule 8 of the Supreme Court Rules, and some authorities relevant to it, and continued ([94]-[103]):
94Implicitly, however, Cowdroy J found that Mr Lowy was not a necessary party. His Honour's reasons must be read as a whole in order to understand his conclusion as to Pt 8 r 8.
95His Honour said (Paino v Woollahra Municipal Council [2002] NSWLEC 51 at [14]-[15]):
"14. The joinder of a party is a serious matter because it necessarily gives rise to appeal rights and also ultimately possibly to questions of costs. Mr Craig of senior counsel, who appeared with Mr Maston for the objector, was unable to nominate any specific case in this Court where in such a matter as that before the Court a joinder had been made.
15. In this case the Court is satisfied that the interests of justice would not be served by making an order joining the objector as a party. It could defeat the purpose of achieving an expeditious and cost effective result in the proceedings. However, that is not the end of the matter. The question is whether some other form of relief should be granted."
96His Honour went on to consider the grant of leave to appear in order to call evidence, cross-examine witnesses and make submissions. He noted hat the Council was undecided whether to oppose the appeal actively, and said at [21]:
"21. In this case the court considers that the objector is entitled to be apprehensive that his interests might not be served if some form of representation is not permitted. The alleged impact on his property could be severe. There may be matters which have not been fully investigated and will not be investigated if council determines not to proceed with opposition to the Class 1 appeal."
97This is not consistent with finding that Mr Lowy was a necessary party. Necessity for joinder as a party involves how else the position of the party applying to be joined can adequately be met. His Honour considered that Mr Lowy's position would be adequately served by participation, short of joinder as a party, pursuant to the leave granted.
98The Council was a proper contradictor in the appeal. Cowdroy J noted its indecision, but the Council had not determined to acquiesce in the appeal (and in fact the Council participated to uphold its refusal of consent). Mr Lowy had an obvious interest. But it was not a case in which there was no active contradictor ... The dispute, that is, the question whether Mr Paino should have his development consent, could be effectually and completely determined and adjudicated upon with Mr Lowy's participation pursuant to the leave granted.
99With respect, it can not be said that Cowdroy J's treatment of the matter was satisfactory. However, assuming that there is room for Pt 8 r 8 so far as it provides for joinder of a necessary party, I do not think that error has been shown in the implicit finding that Mr Lowy was not a necessary party.
100I earlier adverted to discussion of Mr Lowy's standing to appeal by virtue of the leave granted by Cowdroy J to appear in order to call evidence, cross-examine witnesses and make submissions. It appears that an order granting leave of this kind is regularly made in the Land and Environment Court, and has achieved the shorthand of a "Double Bay Marina order" (from Double Bay Marina Pty Ltd v Woollahra Municipal Council (1985) 54 LGRA 313 at 314). Its basis is said to be s 38 of the Court Act. It is not necessary to investigate whether this is a sound basis.
101... Cowdroy J did not intend that the leave granted would amount to making Mr Lowy a party to the proceedings, since he refused to join him as a party, or that Mr Lowy should be able to appeal, since a reason for the refusal was that he should not have appeal rights. His Honour adverted to at least some consequences of joinder as a party when he noted that joinder "gives rise to appeal rights and also ultimately possibly to questions of costs", clearly enough intending that neither consequence should flow from the leave granted. Other consequences would have included the ability to have discovery and inspection of documents and to administer interrogatories. Perhaps a participant in proceedings may be made an intervener with a right of appeal inadvertently, but not in these circumstances.
102Mr Lowy's counsel also eschewed any submission that for the purposes of the right of appeal to this Court conferred by s 57 of the Court Act on "[a] party to proceedings" the leave granted sufficiently made Mr Lowy a party to the proceedings.
103Since Cowdroy J did not wrongly refuse to join Mr Lowy as a party to the Land and Environment Court proceedings, Mr Lowy can not succeed by the appellate route. I see no sufficient reason to decline to extend time and, since the matter has been fully argued, I would grant leave to appeal from the decision of Cowdroy J, but the appeal should be dismissed. Mr Lowy does not get to an appeal from the decision of Lloyd J.
63Mason P expressed (at [2]) his agreement with Giles JA on the consent issue and with the orders his Honour proposed (at [126]), but added the following caveat on the joinder/DBM issue:
4I would reserve my position on the procedural aspect of the appeal insofar as Giles JA is satisfied that Cowdroy J did not wrongly refuse to join Mr Lowy as a party to the Land and Environment Court proceedings. I am troubled about the propriety of framing the order with the specific intent of restricting appeal rights and for no other apparent reason.
5Furthermore, if there is power to make a "Double Bay Marina order" (cf Double Bay Marina Pty Ltd v Woollahra Municipal Council (1985) 54 LGRA 313 at 314) stemming from s 38 of the Land and Environment Court Act 1979, then I am far from convinced that the active intervener status thereby conferred did not make Mr Lowy a party, with ensuing appellate rights (cf O'Keeffe Nominees Pty Ltd v BP Petroleum Ltd (1995) 55 FCR 591), regardless of Cowdroy J's intention otherwise.