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[2021] NSWCA 206
Court of Appeal (NSW)
2021-05-28
Basten JA, Meagher JA, Leeming JA
Original judgment source is linked above.
Introduction In January 2011 a large volume of rain fell in the catchment of the Brisbane River. In its upper catchment, the Brisbane River was contained by the Wivenhoe Dam and, above it, the Somerset Dam. The dams had two functions, namely, to supply water to Brisbane and south-east Queensland, and to mitigate flooding of the Brisbane River. However, at the height of the heavy rainfall a volume of water released from the Wivenhoe Dam which, in combination with the inflows from downstream tributaries, led to the inundation of significant areas of Brisbane and Ipswich.
Issues on appeal
Leave to appeal
Jurisdiction and choice of law
Factual background
Operation of the dams: legal structure
(1) Restructuring Act
(2) Water Act and Water Supply Act
(1) Statutory provisions - Civil Liability Act
(2) Breach of statutory duty - Rodriguez' contention
(3) Exercise of functions
(4) Vicarious liability
(5) "public or other authority"
(6) Application of s 36 - Identification of standard
(1) An overview
(2) The purposes of Wivenhoe Dam and Somerset Dam
(3) Background to the Manual
(4) Legal status of Manual
(5) Overview of contents
(a) Section 1
(b) Sections 2-7
(c) Section 8
(d) Sections 9 and 10 and the Appendices
(6) Key considerations
(7) Degrees of tolerance
(1) Significance of the no release assumption
(2) Reasoning of primary judge
(3) Consideration
(a) Textual considerations
(b) Purposive considerations
(c) Circularity
(d) Other considerations
(e) Conclusion
(1) The grounds
(2) Ground 6 - quantitative use
(3) Ground 7 - "best forecast rainfall"
(4) Rainfall forecasts over time
(1) Background
(2) Issues at trial
(3) Issues on appeal
(1) Identifying the issues
(2) Rodriguez' application to rely on s 36(2)
(3) Reasons for ruling on notice of contention
(a) Section 36(2) was in issue at trial
(b) Reliance on schedule of findings
(c) Conditional grant of leave
(d) Submissions in support of contention
19 Simulations C, F and H (grounds 16-21); breaches on 2-5 January 2011 (grounds 22, 23(a))
(1) Overview
(2) Challenges to overarching findings as to simulations C, F and H (grounds 16-20)
(a) Simulation C
(b) Simulations F and H
(c) Disposition: grounds 16, 17 and 18
(d) Disposition: grounds 19 and 20
(e) Disposition: ground 21
(3) Breach of duty: 2 January (ground 22)
(a) Findings of primary judge
(b) Terminating December Flood Event
(c) Failing to make further substantial releases
(4) Breaches of duty: 3, 4 and 5 January (ground 23(a))
(a) Failure to reduce dam level
(b) Failure to declare a further flood event
(c) Disposition: ground 23(a)
20 Breaches on 6-10 January - (grounds 23(b), (c), 24, 25(a), (b))
(1) Overview
(2) Factual background
(3) 6 January - Mr Malone's day shift (ground 23(b))
(a) Summary of shift
(b) Findings of breach
(c) Disposition: ground 23(b)
(4) 7 January - Mr Malone's day shift (ground 23(c))
(a) Summary of shift
(b) Findings of breach
(c) Disposition: ground 23(c)
(5) 8/9 January - Mr Tibaldi's overnight shift (ground 24)
(a) Overview
(b) Summary of Mr Ayre's day shift
(c) Summary of Mr Tibaldi's overnight shift
(d) Findings of breach
(e) Disposition: ground 24
(6) 9 January - Mr Malone's day shift (ground 25(a))
(a) Summary of shift
The lower limit of the inflow to Somerset and Wivenhoe will be similar to the October 2010 flood while the upper limit is similar to the February 1999 floods. However, the starting level of the dams is much higher than in these historical events. This points to continued flood operations for Somerset and Wivenhoe until at least the weekend of 15/16 Jan …. It should be noted that these estimates are based upon forecast rainfall which may or may not eventuate. (emphasis in original)"
(b) Findings of breach
(c) Disposition: ground 25(a)
(7) 10 January - Mr Malone and Mr Tibaldi's day shift (ground 25(b))
(a) Overview
(b) Summary of shift
(c) Disposition: ground 25(b)
(1) Overview
(2) Paragraph 48(d): 10 January
(3) Paragraphs 48(e) and (f): use of forecasts
(4) Paragraph 48(b): keeping bridges open on 6 and 7 January
(5) Paragraph 48(c): strategy W1 rather than W3
(6) Relevant matters
(7) Whether breach of s 36(2) standard
(a) Mr Tibaldi's overnight shift on 8/9 January
(b) Mr Malone's day shifts on 6, 7 and 9 January
(c) Benefit of hindsight
(8) Conclusions
(1) Introduction
(2) Appellant's submissions
(3) Conclusion
(1) Identifying the issues
(2) Applicable law
(3) Issues raised
(4) Rodriguez' appeal
(5) Seqwater's appeal - ground 32
(1) Reasons of primary judge
(2) Consideration
(1) Costs of trial
(2) Costs of appeal
APPENDIX A 8 WIVENHOE DAM FLOOD OPERATIONS 8.1 Introduction Wivenhoe Dam is capable of being operated in a number of ways to reduce flooding in the Brisbane River downstream of the dam, depending on the origin, magnitude and spatial extent of the flood. Maximum overall flood mitigation effect will be achieved by operating Wivenhoe Dam in conjunction with Somerset Dam. The reservoir volume above FSL of EL 67.0 is available as temporary flood storage. How much of the available flood storage compartment is utilised, will depend on the initial reservoir level below FSL, the magnitude of the flood being regulated and the procedures adopted. Splityard Creek Dam is part of the overall Wivenhoe Area Project and it forms the upper pumped storage for hydro power generation. Splityard Creek Dam impounds a volume of 28,700 ML at FSL (EL 166.5). This volume can be emptied into Lake Wivenhoe within 12 hours and this water can affect the level in Wivenhoe Dam by up to 300mm when Wivenhoe Dam is close to FSL. Operation of the power station and release of water from Splityard Creek Dam to Lake Wivenhoe is outside the control of Seqwater, but should be considered when assessing the various trigger levels of Wivenhoe Dam. 8.2 Flood Release Infrastructure Radial Gates and an Auxiliary Spillway are the primary infrastructure used to release water during flood events at Wivenhoe Dam. The arrangement of the Radial Gates is shown in the diagram below: In addition to the five radial gates, the auxiliary spillway was constructed in 2005 as part of an upgrade to improve flood adequacy of this storage. The auxiliary spillway consists of a three bay fuse plug spillway at the right abutment. In association with other works constructed at the dam, this gives the dam crest flood an AEP of approximately 1 in 100,000. Another one bay fuse plug spillway may be constructed at Saddle Dam Two in the future. Pertinent information about the auxiliary spillway, including the initiation level for the specific bays is given in the following table. Auxiliary Spillway - Fuse Plug Details table - text version (13866, docx) The arrangement of the Auxiliary Spillway is shown in the diagram below. 8.3 Initial Flood Control Action Once a Flood Event is declared, an assessment is to be made of the magnitude of the Flood Event, including: • A prediction of the maximum storage levels in Wivenhoe and Somerset Dams. • A prediction of the peak flow rate at the Lowood Gauge excluding Wivenhoe Dam releases. • A prediction of the peak flow rate at the Moggill Gauge excluding Wivenhoe Dam releases. The spillway gates are not to be opened for flood control purposes prior to the reservoir level exceeding EL 67.25. 8.4 Flood Operations Strategies There are four strategies (W1 to W4) used when operating Wivenhoe Dam during a flood event as outlined below. These strategies are based on the Flood Objectives of this manual. As outlined in Section 3, the objectives, listed in descending order of importance, are as follows: • Ensure the structural safety of the dams; • Provide optimum protection of urbanised areas from inundation; • Minimise disruption to rural life in the valleys of the Brisbane and Stanley Rivers; • Retain the storage at Full Supply Level at the conclusion of the Flood Event. • Minimise impacts to riparian flora and fauna during the drain down phase of the Flood Event. Within any strategy, consideration is always given to these objectives in this order, when making decisions on dam releases. The strategy chosen at any point in time will depend on the actual levels in the dams and the following predictions, which are to be made using the best forecast rainfall and stream flow information available at the time: • Maximum storage levels in Wivenhoe and Somerset Dams. • Peak flow rate at the Lowood Gauge (excluding Wivenhoe Dam releases). • Peak flow rate at the Moggill Gauge (excluding Wivenhoe Dam releases). Strategies are likely to change during a flood event as forecasts change and rain is received in the catchments. It is not possible to predict the range of strategies that will be used during the course of a flood event at the commencement of the event. Strategies are changed in response to changing rainfall forecasts and stream flow conditions to maximise the flood mitigation benefits of the dams. When determining dam outflows within all strategies, peak outflow should generally not exceed peak inflow. A flowchart showing how best to select the appropriate strategy to use at any point in time is shown below: Strategy W1 table - text version (14093, docx) The intent of Strategy W1 is to not to submerge the bridges downstream of the dam prematurely (see Appendix I). The limiting condition for Strategy W1 is the submergence of Mt Crosby Weir Bridge that occurs at approximately 1,900 m3/s. For situations where flood rains are occurring on the catchment upstream of Wivenhoe Dam and only minor rainfall is occurring downstream of the dam, releases are to be regulated to limit, as much as appropriate in the circumstances, downstream flooding. The following strategies require a great deal of control over releases and knowledge of discharges from Lockyer Creek. In general, the releases from Wivenhoe Dam are controlled such that the combined flow from Lockyer Creek and Wivenhoe Dam is less than the limiting values to delay the submergence of particular bridges. The diagram above shows the location of the impacted bridges and the approximate river flow rate at which they are closed to traffic. Strategy W1A Twin Bridges, Savages Crossing and Colleges Crossing Lake Level greater than 67.25 m AHD [Maximum Release 110 m3/s] Firstly, endeavour to maintain Twin Bridges trafficable by limiting the combined flows from Wivenhoe Dam and Lockyer Creek to a maximum of 50 m3/s. Once Twin Bridges is closed to traffic, endeavour to maintain Savages Crossing trafficable by limiting the combined flows from Wivenhoe Dam and Lockyer Creek to a maximum of 110 m3/s. Once Savages Crossing is closed to traffic, endeavour to maintain College's Crossing trafficable by limiting the combined flows from Wivenhoe Dam and Lockyer Creek to a maximum of 175 m3/s. Note that College's Crossing can be impacted by tidal influences. When the flood event subsides, all gates are to be closed when the dam achieves FSL in accordance with Section 8.5. Strategy W1B College's Crossing and Burtons Bridge Lake Level greater than 67.50 m AHD [Maximum Release 380 m3/s] No consideration is given to maintaining Twin Bridges or Savages Crossing open. Endeavour to maintain College's Crossing trafficable by limiting the combined flows from Wivenhoe Dam and Lockyer Creek to a maximum of 175 m3/s. Once College's Crossing is closed to traffic, endeavour to maintain Burtons Bridge trafficable by limiting the combined flows from Wivenhoe Dam and Lockyer Creek to a maximum of 430 m3/s. Strategy W1C Burtons Bridge and Kholo Bridge Lake Level greater than 67.75 m AHD [Maximum Release 500 m3/s] No consideration is given to maintaining College's Crossing open. Endeavour to maintain Burtons Bridge trafficable by limiting the combined flows from Wivenhoe Dam and Lockyer Creek to a maximum of 430 m3/s. Once Burtons Bridge is closed to traffic, endeavour to maintain Kholo Bridge trafficable by limiting the combined flows from Wivenhoe Dam and Lockyer Creek to a maximum of 550 m3/s. Strategy W1D Kholo Bridge and Mt Crosby Weir Bridge Lake Level greater than 68.00 m AHD [Maximum Release 1900 m3/s] No consideration is given to maintaining Burtons Bridge open. Endeavour to maintain Kholo Bridge trafficable by limiting the combined flows from Wivenhoe Dam and Lockyer Creek to a maximum of 550 m3/s. Once Kholo Bridge is closed to traffic, endeavour to maintain Mt Crosby Weir Bridge trafficable by limiting the combined flows from Wivenhoe Dam and Lockyer Creek to a maximum of 1900 m3/s. Strategy W1E Mt Crosby Weir Bridge and Fernvale Bridge Lake Level greater than 68.25 m AHD [Maximum Release 1900 m3/s] No consideration is given to maintaining Kholo Bridge open. Endeavour to maintain Mt Crosby Weir Bridge trafficable by limiting the combined flows from Wivenhoe Dam and Lockyer Creek to a maximum of 1900 m3/s. Once Mt Crosby Weir Bridge is closed to traffic, endeavour to maintain Fernvale Bridge trafficable by limiting the combined flows from Wivenhoe Dam and Lockyer Creek to a maximum of 2000 m3/s. If the level reaches EL 68.5 m AHD in Wivenhoe Dam, switch to Strategy W2 or W3 as appropriate. Strategy W2 table - text version (14267, docx) The intent of Strategy W2 is limit the flow in the Brisbane River to less than the naturally occurring peaks at Lowood and Moggill, while remaining within the upper limit of nondamaging floods at Lowood (3,500 m3/s). In these instances, the combined peak river flows should not exceed those shown in the following table: Strategy W2 Target Maximum Flow table - text version (14061, docx) Strategy W3 table - text version (14183, docx) The intent of Strategy W3 is to limit the flow in the Brisbane River at Moggill to less than 4000 m3/s, noting that 4000 m3/s at Moggill is the upper limit of non-damaging floods downstream. The combined peak river flow targets for Strategy W3 are shown in the following table. In relation to these targets, it should be noted that depending on natural flows from the Lockyer and Bremer catchments, it may not be possible to limit the flow at Moggill to below 4000 m3/s. In these instances, the flow at Moggill is to be kept as low as possible. Strategy W3 Target Maximum Flow table - text version (12780, docx) Strategy W4 table - text version (14118, docx) The intent of Strategy W4 is to ensure the safety of the dam while limiting downstream impacts as much as possible. This strategy normally comes into effect when the water level in Wivenhoe Dam reaches 74.0 m AHD. However the Senior Flood Operations Engineer may seek to invoke the discretionary powers of Section 2.8 if earlier commencement is able to prevent triggering of a fuse plug. Under Strategy W4 the release rate is increased as the safety of the dam becomes the priority. Opening of the gates is to occur generally in accordance with the requirements of Section 8.6, until the storage level of Wivenhoe Dam begins to fall. There are no restrictions on gate opening increments or gate operating frequency once the storage level exceeds 74.0 AHD, as the safety of the dam is of primary concern at these storage levels. However the impact of rapidly increasing discharge from Wivenhoe Dam on downstream reaches should be considered when determining gate opening sequences. Strategy W4A - No Fuse Plug Initiation Expected Lake Level between 74.0 and 75.5 m AHD [No Maximum Release] Strategy 4A applies while all indications of the peak flood level in Wivenhoe Dam are that it will be insufficient to trigger operation of the first bay of the fuse plug by reaching 75.5 m AHD. Gate openings are generally to occur at the minimum intervals and sequences as specified in Section 8.6 until the storage level of Wivenhoe Dam begins to fall. However, to protect the safety of the dam, minimum opening intervals can be reduced and gate opening sequences can be modified. Strategy W4B - Fuse Plug Initiation Possible Lake Level greater than 75.5 m AHD [No Maximum Release] Strategy W4B applies once indications are the peak flood level in Wivenhoe Dam may exceed EL75.5 and trigger the fuse plug under normal operations. Two scenarios are possible under this strategy. The first scenario is where it may be possible to prevent fuse plug initiation by early opening of the gates. The second scenario is where fuse plug initiation cannot be avoided. The actions associated with these scenarios are contained in the following table: W4B Fuse Plug Initiation Possible table - text version (14471, docx) 8.5 Gate Closing Strategies In general, gate closing commences when the level in Wivenhoe Dam begins to fall and is generally to occur in the reverse order to opening. The final gate closure should occur when the lake level has returned to Full Supply Level. The following requirements must be considered when determining gate closure sequences: • Where possible, total releases during closure should not produce greater flood levels downstream than occurred during the flood event. • The maximum discharge from the dam during closure should generally be less than the peak inflow into Wivenhoe Dam experienced during the event. The discharge from Wivenhoe Dam includes discharge from triggered fuse plugs, gates, regulator cone dispersion valve and hydro release. • If, at the time the lake level in Wivenhoe Dam begins to fall, the combined flow at Lowood is in excess of 3,500 m3/s then the combined flow at Lowood is to be reduced to 3,500 m3/s as quickly as practicable. • The aim should always be to empty stored floodwaters stored above EL 67.0m within seven days after the flood peak has passed through the dams. However, provided a favourable weather outlook is available, this requirement can be relaxed for the volume between EL 67.0m and EL 67.5m, to obtain positive environmental outcomes. • If the flood storage compartments of Wivenhoe Dam and Somerset Dam can be emptied within seven days, the maximum flow in the Brisbane River at Lowood should not exceed 3,500 m3/s. • To minimise the stranding of fish downstream of the dam, final closure sequences should consider Seqwater policies relating to fish protection at the dam. There may be a need to take into account base flow when determining final gate closure. This may mean that the lake level temporarily falls below Full Supply Level to provide for a full dam at the end of the Flood Event. 8.6 Gate Operation Sequences Radial Gate Opening Operations When dam outflows are less than 4,000 m3/s, rapid opening of the radial gates can cause undesirable rapid rises in downstream river levels. Accordingly, when dam outflows are less than 4,000 m3/s, the aim in opening radial gates is to operate the gates one at a time at intervals that will minimise adverse impacts on the river system. The table below shows the target minimum interval for gate operations in these circumstances. This target interval can be reduced if the gates are at risk of being overtopped or the safety of the dam is at risk. Target Minimum Interval Radial Gate Opening table - text version(12905, docx) When dam outflows exceed 4,000 m3/s, the impact of rapid gate openings on downstream water levels is reduced due to the already elevated river levels. Under these circumstances, the safety of the dam will generally be of primary concern and therefore there are no minimum gate opening intervals in these circumstances. Under extreme circumstances, the mechanical capability of the radial gate operating system provides the facility to open each radial gate more than five metres within a one hour period. Accordingly, unless a mechanical breakdown is experienced, physical gate opening capability in unlikely to be a constraint in meeting projected outflow targets. Radial Gate Closing Operations When dam outflows are less than 4,000 m3/s, rapid closure of the radial gates can cause adverse impacts to the river system. Accordingly, when dam outflows are less than 4,000 m3/s, the aim in closing radial gates is to operate the gates one at a time at an interval that will minimise adverse impacts on the river system as outlined in the table below. Target Minimum Interval Radial Gate Closure table - text version (12774, docx) When dam outflows exceed 4,000 m3/s, the impact of rapid gate closings is reduced due to the already elevated river levels. However, given that the safety of the dam is unlikely to be at risk if decisions are made to close radial gates, the target of operating the gates one at a time in accordance with the time interval shown in the above table remains. Rapid closure of radial gates is permissible however, when there is a requirement to preserve storage or to reduce downstream flooding. When determining gate closure sequences, consideration should also be given to following the calculated natural recession of the flood in the river to aim to ensure that the recession impacts are not greater than those that would have been experienced had the dam not been constructed. Protection of the Spillway Walls The flip bucket spillway is designed to control the discharge from the reservoir and to dissipate the energy of the discharge. The flip throws the discharge clear of the concrete spillway structures and into a plunge pool where the energy is dissipated by turbulence. Under nonsymmetric flow conditions or when Gates 1 and 5 are not operating, the discharge jet may impinge on the walls of the plunge pool. As these walls have been excavated into erodible sandstone rock, this impingement may cause non-predictable erosion. Upstream migration of this erosion is to be avoided. This can be achieved by operating Gates 1 and 5 to deflect the discharge away from the walls of the plunge pool. Therefore in operating the spillway, the principles to be observed in order of priority are: (i) The discharge jet into the plunge pool is not to impinge on the right or left walls of the plunge pool. (ii) The flow in the spillway is to be symmetrical. Normal Gate Operation Sequences Under normal operation, only one gate is to be opened at any one time and the sequences shown in the table below are to be adopted. Generally gates are operated in the order of 3,2,4,1,5. Variations are allowed at any time to protect the structural safety of the dam. It should also be noted that: • Gates are numbered 1 to 5 from the left bank looking downstream • Flow in spillway to be as symmetrical as possible. Radial Gate Opening Sequences - text version (35675, docx) During the initial opening or final closure sequences of gate operations it is permissible to replace the discharge through a gate by the immediate opening of a regulator valve (or the reverse operation). This allows for greater control of low flows. Gate Failure or Malfunction Procedures Gate operating procedures in the event of equipment failure are contained in Appendix G. If one or more gates are inoperable during the course of the flood event, the gate openings of the remaining gates are to be adjusted to provide the required discharge from the dam. These adjustments should ensure that: • The impact of the flow on the sidewalls of the plunge pool should be minimised, and • The flow in the spillway is as symmetrical as practicable. Radial Gate Turbulence Considerations Unless in the process of lifting the gates clear of the flow, the bottom edge of the radial gates must always be at least 500 millimetres below the release flow surface. Having the bottom edge of the gates closer to the release flow surface than 500 millimetres may cause unusual turbulence that could adversely impact on the gates. This procedure has never been undertaken in practice and should be observed closely when being undertaken. Variations to the procedure are allowed to protect the structural safety of the dam. Lowering Radial Gates that have been lifted Clear of the Release Flow When lowering radial gates that have been lifted clear of the release flow, the bottom edge of the gates must be lowered at least 500 millimetres into the flow. Lowering gates into the release flow less than this amount may cause unusual turbulence that could adversely impact on the gates. This procedure has never been undertaken in practice and should be observed closely when being undertaken. Variations to the procedure are allowed to protect the structural safety of the dam. 8.7 Modification to Flood Operating Procedures if a Fuse Plug Triggers Where the operation of a fuse plug spillway bay has been triggered, the flood operation procedures are to be modified such that: • The discharge from the triggered fuse plug is to be taken into account when determining total flood releases from the dam; • The gates are to be operated, to the extent possible, so that the same discharge restrictions apply as would have if the fuse plug embankment was intact. 8.8 Modification to Flood Operating Procedures if a subsequent flood event occurs prior to the reconstruction of Triggered Fuse Plugs Where the operation of any or all of the fuse plug spillway bays has been triggered and a flood event occurs before the fuse plug can be reinstated, the flood operation procedures are to be modified such that: • The discharge from the triggered fuse plug is to be taken into account when determining total flood releases from the dam; • The gates are to be operated, to the extent possible, so that the same discharge restrictions apply as would have if the fuse plug embankment was intact. • Discharge from the Auxiliary Spillway will occur before the Gate Trigger Level of EL 67.25 m AHD. This flow should be taken into account when applying the flood operation strategies relevant to the low level bridge crossings.
Endnotes
Queensland Bulk Water Supply Authority t/as Seqwater
Rodriguez & Sons Pty Ltd
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[1978] HCA 31 George v Federal Commissioner of Taxation (1952) 86 CLR 183; [1952] HCA 21 Giles v Thompson [1994] 1 AC 142 Gill v Donald Humberstone & Co Ltd [1963] 1 WLR 929 Griffiths v Kerkemeyer (1977) 139 CLR 161; [1977] HCA 45 Grincelis v House (2000) 201 CLR 321; [2000] HCA 42 Hamcor Pty Ltd v Queensland [2014] QSC 224 Hamcor Pty Ltd v State of Queensland [2016] 1 Qd R 271; [2015] QCA 183 Hollis v Vabu Pty Ltd (2001) 207 CLR 21; [2001] HCA 44 Housman v Camuglia [2021] NSWCA 106 James Hardie & Coy Pty Ltd v Wyong Shire Council (2000) 48 NSWLR 679; [2000] NSWCA 107 John Pfeiffer Pty Ltd v Rogerson (2000) 203 CLR 503; [2000] HCA 36 Kars v Kars (1996) 187 CLR 354; [1996] HCA 37 Kuru v New South Wales (2008) 236 CLR 1; [2008] HCA 26 Labuda v Langford [2001] ACTSC 126; 36 MVR 154 Leichhardt Municipal Council v Montgomery (2007) 230 CLR 22; [2007] HCA 6 MBP (SA) Pty Ltd v Gogic (1991) 171 CLR 657; [1991] HCA 3 National Insurance Co of New Zealand Ltd v Espagne (1961) 105 CLR 569; [1961] HCA 15 NEAT Domestic Trading Pty Ltd v AWB Ltd (2003) 216 CLR 277; [2003] HCA 35 O'Brien v Dawson (1942) 66 CLR 18 Oceanic Crest Shipping Company v Pilbara Harbour Services Pty Ltd (1986) 160 CLR 626 O'Toole v Charles David Pty Ltd (1990-1991) 171 CLR 232; [1990] HCA 44 Pioneer Mortgage Services Pty Ltd v Columbus Capital Pty Ltd (2016) 250 FCR 136; [2016] FCAFC 78 Plaintiff S157/2002 v Commonwealth of Australia (2003) 211 CLR 476; [2003] HCA 2 Plymouth Brethren (Exclusive Brethren) Christian Church v The Age Company Ltd (2018) 97 NSWLR 739; [2018] NSWCA 95 Powercor Australia Ltd v Thomas (2012) 43 VR 220; [2012] VSCA 87 Prince Alfred College Inc v ADC (2016) 258 CLR 134; [2016] HCA 37 Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355; [1998] HCA 28 Puntoriero v Water Administration Ministerial Corporation (1999) 199 CLR 575; [1999] HCA 45 Queensland v Masson [2020] HCA 28; 94 ALJR 785 R v Panel on Take-overs and Mergers; Ex parte Datafin Plc [1987] 1 QB 815 Re Anti-Cancer Council (Vic); Ex parte State Public Services Federation (1992) 175 CLR 442; [1992] HCA 53 Redding v Lee (1983) 151 CLR 117; [1983] HCA 16 Renmark Hotel Inc v Federal Commissioner of Taxation (1949) 79 CLR 10; [1949] HCA 7 Roads and Maritime Services v Grant [2015] NSWCA 138 Screenco Pty Ltd v R L Dew Pty Ltd (2003) 58 NSWLR 720; [2003] NSWCA 319 Sempra Metals Ltd v Inland Revenue Commissioners [2008] 1 AC 561 Soblusky v Egan (1960) 103 CLR 215; [1960] HCA 9 South West Helicopters Pty Ltd v Stephenson (No 2) (2018) 98 NSWLR 96; [2018] NSWCA 99 Southern Properties (WA) Pty Ltd v Executive Director of the Department of Conservation and Land Management (2012) 42 WAR 287; [2012] WASCA 79 Stovin v Wise [1996] AC 923 Strong v Woolworths Ltd (2012) 246 CLR 182; [2012] HCA 5 Sutherland Shire Council v Heyman (1985) 157 CLR 424; [1985] HCA 41 Suttor v Gundowda Pty Ltd (1950) 81 CLR 418; [1950] HCA 35 Thompson v Australian Capital Television Pty Ltd (1996) 186 CLR 574; [1996] HCA 38 Van Gervan v Fenton (1992) 175 CLR 327; [1992] HCA 54 Voli v Inglewood Shire Council (1963) 110 CLR 74; [1963] HCA 15 Zhang v ROC Services (NSW) Pty Ltd (2016) 93 NSWLR 561; [2016] NSWCA 370 Zheng v Cai (2009) 239 CLR 446; [2009] HCA 52 Texts Cited: J Carter, The Construction of Commercial Contracts (Hart Publishing, 2013) P Craig, Administrative Law (8th ed, 2016, Sweet & Maxwell) R Creyke and J McMillan, "Soft Law versus Hard Law" in Pearson, Harlow and Taggart (eds) Administrative Law in a Changing State: Essays in Honour of Mark Aronson (Hart Publishing, 2008) R Douglas, G Mullins and S Grant, Annotated Civil Liability Legislation - Queensland, (3rd ed, Lexis Nexus Butterworths 2012) J Edelman (ed), McGregor on Damages (21st ed, 2021, Thomson Reuters) R Garnett, Substance and Procedure in Private International Law (Oxford University Press, 2012) H Luntz and S Harder, Assessment of Damages for Personal injury and Death (5th ed, LexisNexis, 2021) G Weeks, Soft Law and Public Authorities (Hart Publishing, 2016) Qld Govt Gazette, vol 353, no 15 published 22 January 2010 Category: Principal judgment Parties: 2020/189434: Queensland Bulk Water Supply Authority t/as Seqwater (Appellant) Rodriguez & Sons Pty Ltd (First Respondent) SunWater Ltd (Second Respondent) State of Queensland (Third Respondent)
King & Wood Mallesons - Queensland Bulk Water Supply Authority t/as Seqwater Maurice Blackburn - Rodriguez & Sons Pty Ltd Norton Rose Fulbright Australia - SunWater Ltd Crown Law - State of Queensland File Number(s): 2020/189434; 2020/189716 Decision under appeal Court or tribunal: Supreme Court Jurisdiction: Common Law Division Citation: [2019] NSWSC 1657; [2020] NSWSC 650; [2020] NSWSC 1498; [2021] NSWSC 145; [2021] NSWSC 483 Date of Decision: 29 November 2019 Before: Beech-Jones J File Number(s): 2014/200854
headnote [This headnote is not to be read as part of the judgment] The appellant, Queensland Bulk Water Supply Authority ("Seqwater"), owns and operates two dams in south-east Queensland, west of Brisbane. Outflows from Somerset Dam on the Stanley River flow into Wivenhoe Dam, which is on the Brisbane River. The dams supply water for south-east Queensland, including the City of Brisbane. The dams also mitigate downstream flooding by storing water at the peak of heavy rains and releasing it over time. The operation of the dams in flood events is directed by flood engineers following strategies described in a Flood Operations Manual. In ascending order of priority, the strategies address the protection of bridges from submergence, urban areas from inundation and the dams from structural failure. The Manual recorded the flows at which the downstream bridges would be submerged, and the maximum flow beyond which urban areas would be inundated. Releases of water from Wivenhoe flow east down the Brisbane River through Brisbane and Ipswich. Before reaching the city two major tributaries, Lockyer Creek and the Bremer River, flow into the Brisbane River. Roughly half the catchment of the Brisbane River lies above Wivenhoe and half below it. Flows below Wivenhoe are measured at Lowood, being the junction with Lockyer Creek, and at Moggill, just below the Bremer River junction and before the Brisbane River enters the urban areas. In early January 2011, torrential rains fell in the catchment of the Brisbane River and its tributaries. A large volume of water was released from Wivenhoe Dam to prevent it overtopping, which, once combined with heavy downstream flows, flooded large areas of Brisbane and Ipswich. In 2014 the respondent, Rodriguez & Sons Pty Limited ("Rodriguez"), the owner of a Brisbane sporting goods store which had suffered loss as a result of the flooding, commenced a class action against Seqwater, SunWater Ltd and the State of Queensland on behalf of some 6500 group members, alleging that negligent operation of the dams had resulted in widespread property damage. Rodriguez alleged that the flood operations engineers should have made substantial releases from the dams before the heaviest of the forecast rain to create extra storage capacity. Rodriguez alleged that had the engineers followed the Manual, they would not have had to make substantial releases of water to prevent the dams from overtopping at a time of high flows from Lockyer Creek and the Bremer River. The primary judge delivered his principal judgment on 29 November 2019, finding in Rodriguez' favour on the question of liability. Several additional judgments followed assessing and awarding damages to Rodriguez and three group specific members, answering common questions in respect of group members generally, and dealing with costs. The orders apportioned liability between the three defendants, namely 50% to Seqwater, 30% to SunWater and 20% to the State. (Other questions and the assessment of damages payable to group members remained to be determined.) Seqwater appealed against these findings. Prior to the hearing of the appeal, Rodriguez settled its claims against SunWater and the State. The issues before the Court were whether, contrary to findings made by the primary judge: (1) a lower standard of care provided statutory protection to Seqwater, limiting the circumstances in which it could be liable in damages; (2) flood mitigation strategies under the Manual were not to be determined by assuming that no releases of water would be made; (3) the strategies did not require decisions based on forecast rainfall but only "rain on the ground"; (4) releases were not permitted which would take the dams below Full Supply Level; (5) the reference in the Manual to releases not exceeding "peak inflow" precluded high releases in advance of heavy rainfall; (6) the engineers acted reasonably in opening sluice gates at Somerset Dam in order to co-ordinate the storage levels in the two dams; (7) the Senior Flood Operations Engineer bore primary responsibility for determining strategies; (8) the engineers were not required to have made releases in accordance with simulations prepared by Dr Christensen; (9) it was reasonable to terminate the December Flood Event on 2 January; (10) the strategies adopted by the engineers from 6-10 January were reasonable; (11) breaches of duty for which Seqwater was liable had not been shown to cause loss to the claimants where damage resulted from a series of sequential breaches; (12) the commercial value of cleaning undertaken by volunteers was fully recoverable; (13) interest was payable on damages awarded for cleaning services provided gratuitously by volunteers; (14) the apportionment of 50% of the damages against Seqwater was just and reasonable; and (15) costs should have been apportioned on the basis of liability. The Court (Basten, Meagher and Leeming JJA) held: As to (1) - statutory protection for Seqwater (1) Section 36 of the Civil Liability Act 2003 (Qld) should not be read down to apply only to proceedings where the cause of action was breach of statutory duty. The omission of "duty" from s 36 suggested that the section was not limited to any particular cause of action; the term appeared only in the heading to that section and did not limit its operation: [69]. (2) The reference to "functions" in s 36 applied to the functions of Seqwater provided for by statute, including flood prevention and floodwater control. The case against Seqwater correctly assumed it had functions with respect to the operation of the dam for flood mitigation purposes and that it was required to exercise its powers in accordance with a flood mitigation manual: [82]. (3) Where Seqwater employed engineers to carry out its statutory functions, the acts or omissions of the engineers were attributable to Seqwater. Seqwater was therefore vicariously liable for the acts of the flood engineers: [102]. (4) Seqwater is a public authority for the purposes of s 36, as it was established under statute, has the functions and powers conferred on it by the statute, does not have members of its corporate body who would benefit from its exercise of its functions, and its dominant purpose was to supply water for the benefit of residents and businesses in south-east Queensland. Although Seqwater was required to carry out its functions as a commercial enterprise, this did not prevent its functions from being those of a public authority: [116], [117], [121]. (5) Although s 36(2) adopts the language of Wednesbury unreasonableness, the standard adopted by the statute should not be paraphrased or reformulated by reference to the Wednesbury standard in administrative law cases: [135]-[137]. For an authority to be liable, the exercise of a power must be so unreasonable that the court cannot envisage any authority in that position considering it to be a reasonable exercise of the power: [137]. Civil Liability Act 2003 (Qld) s 36; Acts Interpretation Act 1954 (Qld), s 35C(1), applied. Board of Fire Commissioners (NSW) v Ardouin (1961) 109 CLR 105, 116; [1961] HCA 71; Darling Island Stevedoring and Lighterage Co v Long (1957) 97 CLR 36; [1957] HCA 26, applied; Attorney-General for the State of New South Wales v Quin (1990) 170 CLR 1; [1990] HCA 21; Avon Downs Pty Ltd v Federal Commissioner of Taxation (1949) 78 CLR 353; [1949] HCA 26; Crimmins v Stevedoring Industry Finance Committee (1999) 200 CLR 1; [1999] HCA 59; Plaintiff S157/2002 v Commonwealth of Australia (2003) 211 CLR 476; [2003] HCA 2; Puntoriero v Water Administration Ministerial Corporation (1999) 199 CLR 575; [1999] HCA 45; Prince Alfred College Inc v ADC (2016) 258 CLR 134; [2016] HCA 37; Renmark Hotel Inc v Federal Commissioner of Taxation (1949) 79 CLR 10; [1949] HCA 7; Re Anti-Cancer Council (Vic); Ex parte State Public Services Federation (1992) 175 CLR 442; [1992] HCA 53; Sutherland Shire Council v Heyman (1985) 157 CLR 424; [1985] HCA 41; Curtis v Harden Shire Council (2014) 88 NSWLR 10; [2014] NSWCA 314; Pioneer Mortgage Services Pty Ltd v Columbus Capital Pty Ltd (2016) 250 FCR 136; [2016] FCAFC 78; Southern Properties (WA) Pty Ltd v Executive Director of the Department of Conservation and Land Management (2012) 42 WAR 287; [2012] WASCA 79; Stovin v Wise [1996] AC 923, considered. Hamcor Pty Ltd v Queensland [2014] QSC 224, not followed. As to (2) - the "no release" assumption (6) In determining the appropriate release strategy, the Manual required the engineers to predict the water level of each dam. Although initial assessments could well be based on predicted inflows without releases, the Manual did not require that engineers select a strategy on the assumption that no water would be released during the likely period of the flood. It was not unreasonable for the engineers to have regard to the water which was being released: [261], [285]. As to (3) - "rain on the ground" forecasts (7) Modelling was required to take into account predicted rainfall based on forecasts, not just rain on the ground measurements. The engineers were required to determine strategies and releases having regard to forecast rainfall, which was permitted by their real time flood modelling: [205], [291], [294]. As to (4) - releases bringing the dams below Full Supply Level (8) The Manual did not prohibit releases from being made during a flood event while the dams were below full supply level, however the engineers were not obliged to make releases in such circumstances, including if the December flood event had continued beyond 2 January: [319]-[322]. As to (5) - references to "peak inflow" precluded high releases prior to heavy rainfall (9) While the general purpose of flood mitigation is to reduce the peak levels of flow in the river, rather than exacerbate them, the Manual permitted the use of rainfall predictions to consider in advance what the "peak inflow" during a flood event would be; however, this was not the only reasonable reading of the Manual: [330], [340]. As to (6) - opening sluice gates at Somerset Dam (10) The Manual required coordinated releases from Wivenhoe and Somerset Dams, generally following an Operating Target Line (OTL). On 9 and 10 January releases were made from Somerset Dam by opening its sluice gates. There was no apparent negligence in seeking to follow the OTL: [604]. As to (7) - responsibilities of the Senior Flood Operations Engineer (11) The senior flood engineer was employed by SunWater. It was a relevant consideration in applying s 36(2) and apportioning liability, that Seqwater's engineers adhered to the strategy determined by the senior flood engineer: [659]. As to (8) - Dr Christensen's simulations (12) The principal significance of Dr Christensen's simulations was that they provided a counterfactual, consistent with non-negligent flood operations, which could form a basis for Rodriguez' causation and damages case. Contrary to Seqwater's submissions, Rodriguez' breach case did not require it to establish that on each day from 2 to 11 January the flood engineers were required to conduct flood operations in accordance with one or more of those simulations: [424]-[433]. As to (9) - terminating the December Flood Event on 2 January (13) Seqwater's engineer on duty on 2 January terminated the Flood Event when the level of Wivenhoe Dam reached 67.1m, when the dam had, for practical purposes returned to the FSL of 67.0m. That decision was not negligent. The Manual recognised that there was a degree of uncertainty inherent in measuring the water level of the dam. In addition, the weather forecasts did not predict significant rainfall: [455]-[460]. As to (10) - strategies on 6-10 January (14) The findings of breach of duty on 6, 7, 8 and 9 January were based on the "no release" assumption. The Manual did not require that assumption to be made. Absent that assumption, the evidence did not support a conclusion that a flood engineer must have adopted the strategies found to constitute reasonable flood operations; nor were there findings of breach if releases could be taken into account: [517], [519], [545], [573], [574], [602]. (15) There is no utility in resolving the grounds directed to breach on 10 January. Those breaches involved releasing a relatively small amount of water that was immaterial and had no relevance to the causation analysis: [611]-[614]. (16) Applying the s 36(2) standard, the four flood engineers acted by way of consensus, ultimately following the strategy determined by the Senior Flood Operations Engineer. Failure by Seqwater's flood engineers to depart from that strategy was not proven to be in breach of the s 36(2) standard. Even if their conduct departed from the Manual, that did not of itself entail a breach of that standard: [659], [662], [666], [669], [672], [676], [683], [687]. As to (11) - causation - a series of sequential breaches (17) The primary judge found that losses had been caused by the cumulative effect of several breaches by the flood engineers. That approach was artificial: it involved the dividing of a singular course of conduct into discrete temporal segments and assumed that each flood engineer could and should exercise independent judgment. The flood engineers acted in a collaborative manner. On that basis all were liable for each breach. The fact that a particular engineer was on duty at a particular time was not a critical factor. The complaint as to causation was therefore rejected: [697]-[698]. Civil Liability Act 2003 (Qld) ss 11, 31(1)(a), applied; Strong v Woolworths Ltd (2012) 246 CLR 182; [2012] HCA 5, referred to. As to (12) - quantifying the commercial value of cleaning by volunteers (18) It was not necessary nor appropriate to deal with the issue as to how cleaning services undertaken gratuitously were to be valued. There were contingent factual disputes, and uncertainty as to the legal basis upon which damages for such services were recoverable: there is doubt as to the application of principles developed in personal injury cases. The approaches to valuation advanced by the parties did not involve any question of law: [712], [715]-[717], [729]. Boensch v Pascoe (2019) 268 CLR 593; [2019] HCA 49 applied; Blundell v Musgrave (1956) 96 CLR 73; [1956] HCA 66; CSR Ltd v Eddy (2005) 226 CLR 1; [2005] HCA 64; Davidson v J S Gilbert Fabrications Pty Ltd [1986] 1 Qd R 1; Griffiths v Kerkemeyer (1976) 139 CLR 161; [1977] HCA 45; Powercor Australia Ltd v Thomas (2012) 43 VR 220; [2012] VSCA 87; Screenco Pty Ltd v R L Dew Pty Ltd (2003) 58 NSWLR 720; [2003] NSWCA 319, referred to. As to (13) - interest payable on damages for cleaning services (19) Claims for interest were in their nature compensatory and therefore Queensland law applied: [736]. John Pfeiffer Pty Ltd v Rogerson (2000) 203 CLR 503; [2000] HCA 36 applied. (20) In dealing with cleaning costs with respect to damaged chattels or property, there was no error in refusing to award interest: [750]. Screenco Pty Ltd v R L Dew Pty Ltd (2003) 58 NSWLR 720; [2003] NSWCA 319, applied. (21) With respect to interest on damages not reduced for charitable payments, there were issues of principle as to when and on what basis subventions operated to reduce damages; because these issues were not addressed, the approach of the primary judge accorded with current practice: [759]. Batchelor v Burke (1981) 148 CLR 448 at 455; [1981] HCA 30; Fire & All Risks Insurance Co Ltd v Callinan (1978) 140 CLR 427 at 432; [1978] HCA 31; Grincelis v House (2000) 201 CLR 321; [2000] HCA 42, referred to. As to (14) - apportionment of 50% of the damages against Seqwater (22) There are real doubts as to the statutory basis of apportionment: [704]. In the absence of a finding as to damages it was not appropriate to determine the issue. However, as Seqwater was the sole licensee responsible for controlling releases into the Brisbane River, it was difficult to envisage that its liability would be less than 50%: [709]-[710]. Civil Liability Act 2003 (Qld) ss 28(4) and 30(1) referred to. As to (15) - apportionment of costs (23) The ground challenging the costs order was brought as of right: [760]. The relevant law to the determination of this question was that of New South Wales, as the services generated in the plaintiff's costs were in New South Wales: [765]-[767]. Civil Procedure Act 2005 (NSW) s 98 applied; Law Reform Act 1995 (Qld) ss 6, 7; Civil Liability Act 2003 (Qld) s 32A referred to. Housman v Camuglia [2021] NSWCA 106; applied; James Hardie & Coy Pty Ltd v Wyong Shire Council (2000) 48 NSWLR 679; [2000] NSWCA 107; South West Helicopters Pty Ltd v Stephenson (No 2) (2018) 98 NSWLR 96; [2018] NSWCA 9; Labuda v Langford [2001] ACTSC 126; 36 MVR 154, referred to. (24) To apportion costs by reference to the apportionment of responsibility for damages did not of itself demonstrate error. The decision of the primary judge not to depart from the starting point of 50% liability did not disclose error: [763]; [773]-[774]. Chapman v Hearse (1961) 106 CLR 112; [1961] HCA 46; Voli v Inglewood Shire Council (1963) 110 CLR 74 at 101; [1963] HCA 15; Soblusky v Egan (1960) 103 CLR 215 at 239; [1960] HCA 9 referred to.
[2014] QSC 224
[2015] QCA 183
[2001] ACTSC 126
[1990] HCA 44
[2012] VSCA 87
[1992] HCA 53
[2012] WASCA 79
(1990) 170 CLR 1
(1949) 78 CLR 353
(1977) 136 CLR 214
(2016) 94 NSWLR 159
(1981) 148 CLR 448
(1956) 96 CLR 73
(1961) 109 CLR 105
(2019) 268 CLR 593
(2011) 82 NSWLR 420
(1961) 106 CLR 112
(2010) 78 NSWLR 393
(2015) 256 CLR 171
(1986) 162 CLR 1
(1999) 200 CLR 1
(2005) 226 CLR 1
(2014) 88 NSWLR 10
(1957) 97 CLR 36
(1978) 140 CLR 427
(1952) 86 CLR 183
(1977) 139 CLR 161
(2000) 201 CLR 321
(2001) 207 CLR 21
(2000) 48 NSWLR 679
(2000) 203 CLR 503
(1996) 187 CLR 354
(2008) 236 CLR 1
(2007) 230 CLR 22
(1991) 171 CLR 657
(1961) 105 CLR 569
(2003) 216 CLR 277
(1942) 66 CLR 18
(1986) 160 CLR 626
(2016) 250 FCR 136
(2003) 211 CLR 476
(2018) 97 NSWLR 739
(2012) 43 VR 220
(2016) 258 CLR 134
(1998) 194 CLR 355
(1999) 199 CLR 575
(1992) 175 CLR 442
(1983) 151 CLR 117
(1949) 79 CLR 10
(2003) 58 NSWLR 720
(1960) 103 CLR 215
(2018) 98 NSWLR 96
(2012) 42 WAR 287
(2012) 246 CLR 182
(1985) 157 CLR 424
(1950) 81 CLR 418
(1996) 186 CLR 574
(1992) 175 CLR 327
(1963) 110 CLR 74
(2016) 93 NSWLR 561
(2009) 239 CLR 446
(1976) 139 CLR 161
(2015) 70 MVR 520
(1991) 171 CLR 506
(2007) 18 VR 528
(1936) 55 CLR 499
[1986] HCA 33
[2000] HCA 36
[2008] HCA 26
[2009] HCA 52
[1936] HCA 40
[2001] HCA 44