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[2021] NSWCA 130
Court of Appeal (NSW)
2021-06-16
Basten JA, Leeming JA, Preston CJ, Mr J, Ms J
Original judgment source is linked above.
Solicitors: Hazan Hollander (Appellant) BAL Lawyers (Respondent) File Number(s): 2021/55366 Decision under appeal Court or tribunal: Land and Environment Court Jurisdiction: Class 1 Citation: [2020] NSWLEC 184 Date of Decision: 23 December 2020 Before: Pain J File Number(s): 20/156307
[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]
HEADNOTE [This headnote is not to be read as part of the judgment] R.I.G. Consulting Pty Ltd (RIG) applied under the Environmental Planning and Assessment Act 1979 (NSW) for development consent to subdivide an existing neighbourhood lot into three lots pursuant to s 22 of the Community Land Development Act 1989 (CLD Act). Queanbeyan-Palerang Regional Council (the Council) refused consent to the subdivision. The Council's reasons included that cl 4.1B of Palerang Local Environmental Plan 2014 (PLEP) precluded the grant of development consent to the subdivision because, first, the average size of all the lots created by the subdivision would be less than the minimum size shown on the Lot Size Map in relation to the land, contrary to the requirement of cl 4.1B(4)(a) PLEP and, secondly, the existing neighbourhood lot proposed to be subdivided was a "resulting lot", as defined in cl 4.1B(6) PLEP, which cannot be subdivided for the purposes of residential accommodation by reason of cl 4.1B(5) PLEP. RIG appealed against the Council's refusal of consent to the Land and Environment Court. The primary judge determined four separate questions, and subsequently dismissed RIG's appeal. RIG contended that the primary judge erred in holding that cl 4.1B(4)(a) of PLEP applied to the proposed subdivision so that the grant of development consent to the proposed subdivision was precluded by that subclause, and that the lot proposed to be subdivided was a "resulting lot" within the meaning of cl 4.1B(6) of PLEP so that the grant of development consent was precluded by cl 4.1B(5) of PLEP. The questions for the Court of Appeal included: (i) whether cl 4.1B(4) of PLEP applied to the proposed subdivision; (ii) whether grant of development consent to the proposed subdivision was precluded by cl 4.1B(4) of PLEP; (iii) whether the existing neighbourhood lot proposed to be subdivided was a "resulting lot" within the meaning of cl 4.1B(6) of PLEP; and (iv) whether the grant of development consent to the proposed subdivision is precluded by cl 4.1B(5) of PLEP. The Court dismissed the appeal and held: In relation to (i) and (ii) (1) Clause 4.1B(4) did apply to the subdivision. Because cl 4.1 of the PLEP did not apply to subdivision under the CLD Act, the phrase "despite clause 4.1" in cl 4.1B(4) had no work to do: [9], [20]-[23], [55]. (2) Because the clauses were not engaged, the direction after cl 4.1(3) and cl 4.1AA(4) of the Standard Instrument - Principal Local Environmental Plan was not engaged and was not relevant to the interpretation of cl 4.1B(4): [9]-[10], [17]-[19], [23], [64]-[65]. (3) If the direction had been engaged, RIG's argument that cl 4.1B(4) can only ever operate as an exception to a minimum subdivision lot size development standard fixed by either cl 4.1 or cl 4.1AA of PLEP nevertheless failed. An exception was permitted but was not mandatory. The direction was silent as to the form in which an exception may be made. The direction permitted an exception if the development standard applied to a particular kind of subdivision, but not if the development standard does not apply: [9], [10], [65]-[70]. In relation to (iii) and (iv) (4) Clause 4.1B(5) applies to preclude development consent being granted for the proposed subdivision of the existing neighbourhood lot, which is a resulting lot; a "resulting lot" is defined as including a lot created by a subdivision under cl 20 of Yarrowlumla Local Environmental Plan 2002. The lot proposed to be subdivided was so created: [5], [13], [14], [79], [80].
Judgment
The grounds based on cl 4.1B(5)
The grounds based on cl 4.1B(4)
The nature of the appeal and outcome R.I.G. Consulting Pty Ltd (RIG) applied under the Environmental Planning and Assessment Act 1979 (NSW) (EPA Act) to subdivide an existing neighbourhood lot, Lot 4 in Neighbourhood Plan DP 285984, into three lots pursuant to s 22 of the Community Land Development Act 1989 (NSW) (CLD Act). Queanbeyan-Palerang Regional Council (the Council) refused consent to the subdivision. The Council's reasons included that cl 4.1B of Palerang Local Environmental Plan 2014 (PLEP) precluded the grant of development consent to the subdivision because, first, the average size of all the lots created by the subdivision (3.286ha) would be less than the minimum size shown on the Lot Size Map in relation to the land (6ha), contrary to the requirement of cl 4.1B(4)(a) and, secondly, the existing neighbourhood lot proposed to be subdivided is a resulting lot, as defined in cl 4.1B(6), which cannot be subdivided for the purposes of residential accommodation by reason of cl 4.1B(5).
The proper construction of cl 4.1B(4) of PLEP
Proper construction of cl 4.1B(5)
Conclusion and orders
Annexure The current form of the relevant clauses of Pt 4 of the Palerang Local Environmental Plan 2014 (PLEP) is as follows: "Part 4 Principal development standards 4.1 Minimum subdivision lot size (1) The objectives of this clause are as follows - (a) to minimise any likely impact of subdivision and development on the amenity of neighbouring properties, (b) to ensure that lot sizes and dimensions are appropriate having regard to the objectives of this Plan and the relevant zone and the likely future use of the land, (c) to ensure that lot sizes and dimensions allow dwellings to be sited to protect significant natural or cultural features. (2) This clause applies to a subdivision of any land shown on the Lot Size Map that requires development consent and that is carried out after the commencement of this Plan. (3) The size of any lot resulting from a subdivision of land to which this clause applies is not to be less than the minimum size shown on the Lot Size Map in relation to that land. (4) This clause does not apply in relation to the subdivision of any land - (a) by the registration of a strata plan or strata plan of subdivision under the Strata Schemes Development Act 2015, or (b) by any kind of subdivision under the Community Land Development Act 1989. 4.1AA Minimum subdivision lot size for community title schemes (1) The objectives of this clause are as follows - (a) to ensure that land to which this clause applies is not fragmented by subdivisions that would create additional dwelling entitlements. (2) This clause applies to a subdivision (being a subdivision that requires development consent) under the Community Land Development Act 1989 of land in any of the following zones - (a) Zone RU1 Primary Production, (b) Zone RU5 Village, (c) Zone R2 Low Density Residential, (d) Zone R5 Large Lot Residential, (e) Zone E3 Environmental Management, but does not apply to a subdivision by the registration of a strata plan. (3) The size of any lot resulting from a subdivision of land to which this clause applies (other than any lot comprising association property within the meaning of the Community Land Development Act 1989) is not to be less than the minimum size shown on the Lot Size Map in relation to that land. (4) This clause applies despite clause 4.1. 4.1A Lot averaging subdivision of certain land in Zone RU1 and Zone E3 (1) The objectives of this clause are as follows - (a) to prevent the fragmentation of certain land in Zone RU1 Primary Production and Zone E3 Environmental Management, (b) to enable appropriate subdivision design of that land having regard to topographical constraints, agricultural productivity, biodiversity values and environmental impacts. (2) This clause applies to land within Zone RU1 Primary Production or Zone E3 Environmental Management that is identified as "Y" or "C-M" on the Lot Averaging Map. (3) Despite clause 4.1, development consent may be granted to subdivide land to which this clause applies if - (a) the average size of all of the lots created by the subdivision will not be less than the minimum size shown on the Lot Size Map in relation to that land, and (b) each lot created by the subdivision will be at least 8 hectares, and (c) the total number of lots created by the subdivision having an area less than the minimum size shown on the Lot Size Map in relation to that land will not be more than 5. (4) Development consent must not be granted for the subdivision of a resulting lot for the purposes of residential accommodation. (5) In this clause - resulting lot means a lot able to be used for residential accommodation that - (a) was created by a subdivision under this clause (other than for a public purpose), or (b) in the case of land identified as "Y" on the Lot Averaging Map - was created under clause 12 of Yarrowlumla Local Environmental Plan 1993 or clause 19 of Yarrowlumla Local Environmental Plan 2002 by a subdivision that created at least one lot of less than 80 hectares for the purpose of residential accommodation, or (c) in the case of land identified as "C-M" on the Lot Averaging Map - was created by a subdivision under clause 14 (2A) of Cooma-Monaro Local Environmental Plan 1999 - (Rural), and includes a lot that would have been a resulting lot had it not been affected by - (d) a minor realignment of its boundaries that did not create an additional lot, or (e) a consolidation with adjoining land, or (f) a subdivision creating or widening a public road or public reserve or for another public purpose, or (g) a consolidation with an adjoining public road or public reserve or for another public purpose. 4.1B Lot averaging subdivision of land in Zone E4 (1) The objective of this clause is to ensure that the subdivision of land to which this clause applies has regard to the topographical constraints, agricultural productivity and biodiversity values of, and environmental impacts on, the land. (2) This clause applies to land in Zone E4 Environmental Living. (3) Despite clause 4.1, development consent may be granted to subdivide land to which this clause applies, other than under the Community Land Development Act 1989, if - (a) the average size of all the lots created by the subdivision will not be less than the minimum size shown on the Lot Size Map in relation to that land, and (b) none of the lots created by the subdivision will be less than 2 hectares. (4) Despite clause 4.1, development consent may be granted for the subdivision of land to which this clause applies, under the Community Land Development Act 1989, if - (a) the average size of all the lots created by the subdivision will not be less than the minimum size shown on the Lot Size Map in relation to that land, and (b) none of the lots created by the subdivision will be less than 1 hectare, and (c) the lot comprising the association property (within the meaning of that Act) will include land identified as having significant ecological, agricultural or cultural values. (5) Development consent must not be granted for the subdivision of a resulting lot for the purposes of residential accommodation. (6) In this clause - resulting lot means a lot able to be used for residential accommodation, being - (a) a lot that was created by a subdivision under this clause (other than for a public purpose), or (b) a lot that was created by a subdivision under any of the following provisions (other than a lot the area of which was excluded under the provision from the calculation of the average area of the lots to be created by the subdivision) - (i) clause 20 of Yarrowlumla Local Environmental Plan 2002, (ii) clause 13 (4) or 13A of Yarrowlumla Local Environmental Plan 1993, (iii) clause 14 (4) of Yarrowlumla Local Environmental Plan 1986, (iv) clause 11B (3) or 11C of Interim Development Order No 1 - Shire of Yarrowlumla, (v) clause 16 (3) of Tallaganda Local Environmental Plan 1991, and includes a lot that would have been a resulting lot had it not been affected by - (c) a minor realignment of its boundaries that did not create an additional lot, or (d) a consolidation with adjoining land, or (e) a subdivision creating or widening a public road or public reserve or for another public purpose, or (f) a consolidation with an adjoining public road or public reserve or for another public purpose." The current form of cl 4.1(4), cl 4.1AA(2)(a) and cl 4.1AA(4) was introduced by the Standard Instrument (Local Environmental Plans) Amendment (Minimum Subdivision Lot Size) Order 2018. The amendments made by this Order were as follows. Clause 4.1(4) of PLEP as made was omitted and the current cl 4.1(4) was inserted instead. Clause 4.1(4) as made had provided: "(4) This clause does not apply in relation to the subdivision of individual lots in a strata plan or community title scheme." The amendment to cl 4.1(4) was apparently intended to address the interpretation of the subclause in DM & Longbow Pty Ltd v Willoughby City Council [2017] NSWLEC 173. The amendment had the effect that cl 4.1 did not apply to any kind of subdivision under the CLD Act and not merely to subdivision of individual lots in a community title scheme. Clause 4.1AA(2)(a) of PLEP as made was omitted and the current cl 4.1AA(2)(a) was inserted instead. The only relevant change was to add, after the listing of the relevant zones, the words "but does not apply to a subdivision by the registration of a strata plan." The current cl 4.1AA(4) was inserted as a new provision after cl 4.1AA(3) of PLEP as made. Although cl 4.1 and cl 4.1AA were both optional provisions, once adopted in PLEP they became mandatory: cl 4A of the Standard Instrument (Local Environmental Plans) Order 2006. As a consequence, they were able to be amended by the further order of the Standard Instrument (Local Environmental Plans) Amendment (Minimum Subdivision Lot Size) Order 2018: s 3.20(4) of the EPA Act. DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 01 July 2021
R.I.G. Consulting Pty Ltd
Queanbeyan-Palerang Regional Council
[2012] VSCA 304
(1932) 47 CLR 1
(1999) 198 CLR 162
(2012) 44 VR 1
(2014) 86 NSWLR 499
(1997) 190 CLR 513
(2005) 64 NSWLR 114
(1986) 6 NSWLR 352
(1998) 194 CLR 355
(2001) 116 LGERA 319