[2024] WASC 333
General information, not legal advice.
Supreme Court of WA
2024-09-11
Seaward J
Original judgment source is linked above.
(1) Has Mr Bajaj established an arguable case that the Magistrate made a jurisdictional error such that a show cause order should be issued?
(2) If so, are there exceptional circumstances to justify the grant of a stay of the relevant orders made by the Magistrate pending final determination of the review order application?
HER HONOUR: ... What's left in this is these claims for compensation - so loss of amenity and property damage. And they will all turn on the conduct - the negligent or intentional conduct of one party or the other.
BAJAJ, MR: Correct.
HER HONOUR: So I'm going to have to have a trial about that. You say you've gone and repaired something. They say you have done it in a negligent fashion, and you've caused damage to their property. I don't know what else was said.
(a) that party may not, without leave of the Court, lead evidence from that witness if the substance of the evidence is not included in the statement served;
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> (b) subject to objections as to the admissibility of any evidence in a statement, the statement will stand as the evidence in chief of the witness; and
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> (c) that party shall have the statement ready for tender at the Trial, together with copies for each party, the witness and the Court.
Notice In the matter of an application under the Magistrates CouRT Act 2004 section 36 for a stay, and the review order against NATASHA OWEN-CONWAY, MAGISTRATE of the MAGISTRATE COURT OF WESTERN AUSTRALIA at PERTH EX PARTE Ramesh BAJAJ; and the affidavit of Ramesh Bajaj sworn on 26 August 2024.
At the hearing below in the *Supreme Court/Court of Appeal, Ramesh Bajaj will apply for an order 2 in a Case No. MC/CIV/PER/RSTN/8786 of 2024 and directions under order 3 to 9, since decision by order 1 be stayed until a review order hearing that order 2 to 9 of the Magistrates Court at Perth made 31 July 2024, be set aside.
(1) In order 1, the Magistrate dismissed the tenants' application for termination of the residential tenancy agreement and instead ordered the termination of the residential tenancy agreement pursuant to s 60(1)(a)(i) of the RT Act.
(2) In making order 1, Mr Bajaj submits that the Magistrate made a determination that:
(a) the tenants' breaches of the residential tenancy agreement, as alleged by Mr Bajaj in his application, had been established; and
(b) Mr Bajaj's breaches of the residential tenancy agreement, as alleged by the tenants in their application, had been rejected.
(3) In light of the matters in (1) and (2), the Magistrate had no jurisdiction to list the tenants' compensation claim for trial or programme it to a trial under the RT Act as the claim was the subject of an Anshun estoppel and the matter was res judicata.
(4) To the extent the Magistrate did proceed to list the tenants' compensation claim for trial, and to apply the minor claims procedure, the Magistrate did not have jurisdiction to do so under s 6 or s 8 of the Magistrates Court (Civil Proceedings) Act 2004 (WA).
(1) The Magistrates Court, as a court of common law, has implied powers to control proceedings, including to dismiss a proceeding if the matter is an abuse of process.
(2) The Magistrate did not have jurisdiction to make orders 2 - 9 (for the reasons referred to above in relation to Mr Bajaj's first alleged jurisdictional error).
(3) The failure by the Magistrate to turn her mind to and consider whether the court had jurisdiction to consider the tenants' compensation claim as a minor case claim.
(4) The failure by the Magistrate to turn her mind to and consider whether, in light of the above matters, programming the tenants' compensation claim to trial as a minor case claim was an abuse of process which would incur costs and time on behalf of the court and the parties and otherwise be procedurally unfair on Mr Bajaj and inconsistent with the objectives of the minor case procedure.
(a) the Magistrates Court had or has no jurisdiction conferred by or under the Act in respect of the proceedings; or
(b) that a party to the proceedings has been denied natural justice.
(a) the reference to 'no jurisdiction' in s 26(2) of the RT Act should be taken to mean jurisdictional error;
(b) at the first stage in the process the court is empowered to make a review order requiring the decision-maker to show cause if the material before the court demonstrates an arguable case in relation to a ground of jurisdictional error or a denial of natural justice. That is, if the material demonstrates that the case has reasonable prospects of success; and
(c) an application under s 36 of the MC Act is concerned only with the legality of decisions, and not the merits.
First, if an inferior court or an anomalous tribunal mistakenly asserts or denies the existence of jurisdiction. Second, if it misapprehends or disregards the nature or limits of its functions or powers in a case where it correctly recognises that jurisdiction does exist. Third, if it is an essential condition of the exercise of jurisdiction with respect to a particular matter that a certain event or requirement has in fact occurred or been satisfied ( [...] a jurisdictional 'fact') there will be jurisdictional error if the court or a tribunal purports to act in circumstances where that event has not in fact occurred or that requirement has not in fact been satisfied even though the matter is the kind of matter which the court has jurisdiction to entertain. Fourth, jurisdictional error will occur where an inferior court disregards or takes account of some matter in circumstances where the statute establishing it and conferring its jurisdiction requires that that particular matter be taken into account or ignored as a precondition of the existence of any authority to make an order or decision in the circumstances of the case. Fifth, it will exceed its authority and fall into jurisdictional error if it misconstrues the statute establishing it and conferring jurisdiction and thereby misconceives the nature or the function which it is performing or the extent of its powers in the circumstances of the case.
... whether or not the applicant has demonstrated that "there are special circumstances sufficient to satisfy the Court that it is just and reasonable to order a stay so as to preserve the subject matter and integrity of the litigation".
(a) where the lessor or tenant gives notice of termination under this Act and -
(i) the tenant delivers up vacant possession of the premises on or after the expiration of the period of notice required under this Act; or
(ii) a competent court, upon application by the lessor, terminates the agreement under section 71;
(1) A lessor may give notice of termination of a residential tenancy agreement to the tenant upon the ground that the tenant has breached a term of the agreement and the breach has not been remedied.
(2) Where a lessor gives notice of termination under this section, the period of notice shall be not less than 7 days before the day on which the tenant is required under the notice to give the lessor possession of the premises.
(3) Where notice of termination is given under this section upon the ground of a breach of the agreement other than the agreement to pay rent, the notice is ineffectual unless a notice specifying the breach and requiring that it be remedied is given to the tenant not less than 14 days before the notice of termination is given.
(1) Where a lessor or a tenant under a residential tenancy agreement gives notice of termination to the other under this Act except under section 70A and the tenant fails to deliver up possession of the premises on the day specified, the lessor may, subject to section 62(5)(a), within 30 days after that day, apply to a competent court for an order terminating the agreement and an order for possession of the premises.
(2) Subject to this section, a competent court shall, upon application under this section, make an order terminating the agreement and an order for possession of the premises, if it is satisfied -
(a) that notice of termination was given by the lessor or tenant to the other and that it complied with and was given in accordance with this Act; and
(b) where the notice was given by the lessor upon a particular ground prescribed by this Act, other than a notice given by a lessor on a ground referred to in section 71C or 71H, that the lessor has established that ground and, in the case of notice upon the ground of a breach by the tenant of a term of the agreement, that the breach is in all the circumstances such as to justify termination of the agreement; and
(5) Subject to subsection (3)(a), where the court terminates a residential tenancy agreement and makes an order for possession of the premises under this section, it shall specify the day as from which the orders shall operate, being within 7 days after the day on which the orders are made.
Where a lessor or tenant under a residential tenancy agreement or a party to an agreement for an option to enter into a residential tenancy agreement claims that a breach of the agreement has occurred or that a dispute has arisen under the agreement, the lessor or tenant may apply for relief to a competent court.
A prescribed dispute is a minor case for the purposes of Part 4 of the Magistrates Court (Civil Proceedings) Act 2004 and the jurisdiction conferred by subsection (1) is to be exercised accordingly.
(a) hear the application in such manner as it considers best suited to the purposes of the act;
(b) decline to entertain the application if it considers that the application is frivolous;
(c) adjourn the hearing to any time or place or to a time and place to be fixed; and
(d) generally give all such directions and do all such things that it thinks necessary or expedient in the proceedings.
Issue 1 - has Mr Bajaj established an arguable case that the Magistrate made a jurisdictional error? Claim 1 - no jurisdiction
HER HONOUR: What is the basis of your claim for termination?
COLE, MR: Well, basically, my understanding is that we have a contract with Mr Bajaj to deliver a property in fair working order , which - - -
HER HONOUR: Yes. But have you issued a breach notice?
COLE, MR: Several dozen.
HER HONOUR: And have you issued a termination notice for noncompliance with the breach notice?
COLE, MR: No.
HER HONOUR: Okay. That's the end of that, then.
...
HER HONOUR: ... Your application for termination can't be granted because you haven't issued a notice pursuant to your breach notices.
HER HONOUR: ... But as I see it, there's a falling-out, whatever the reason; there always is. The fixed-term tenancy, they indicate that they don't want to stay, but they don't do anything about it. They issue various breach notices, which may or may not be valid. I don't know. They say that you've damaged this, and you didn't repair that, and this has now been damaged. That's really the guts of their claim. But they don't terminate because they don't issue a notice of termination based on any of those breach notices. You have. You've brought it to an end by your notice. I'm satisfied of that.
BAJAJ, MR: My only - can I - - -
HER HONOUR: But hang on. Hang on. What's left in this is these claims for compensation - so loss of amenity and property damage. And they will all turn on the conduct - the negligent or intentional conduct of one party or the other.
BAJAJ, MR: Correct.
HER HONOUR: So I'm going to have to have a trial about that. You say you've gone and repaired something. They say you have done it in a negligent fashion, and you've caused damage to their property. I don't know what else was said.
(emphasis added)
COLE, MR: ... You 're not making judgment today, sorry .
HER HONOUR: No, I'm not making judgment.
COLE, MR: Yes.
HER HONOUR: My job today is to try and make the parties understand these are the issues that you will have to address in the -
COLE, MR: Yes.
HER HONOUR: - hearing.
Issue 2 - has Mr Bajaj established that a stay should be ordered?
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[4] ts 31/07/2024, 19 - 26, 32 - 45, 62.
[15] Rayney v AW [2009] WASCA 203 [25] - [34].
[16] Bajaj v Magistrate Trevor Darge [2021] WASCA 218 [47] - [54].
[17] Bajaj v Magistrate Trevor Darge [2021] WASCA 218 [53]. See also Re Carey; Ex parte Exclude Holdings Pty Ltd [2006] WASCA 219; (2006) 32 WAR 501 [181]; Re The State Administrative Tribunal; Ex parte McCourt [2007] WASCA 125; (2007) 34 WAR 342 [16], citing Craig v South Australia [1995] HCA 58; (1995) 184 CLR 163 (177 ‑ 178).
[18] Zucal v Harper [2005] WASCA 76; (2005) 29 WAR 563 [58].
[19] RT Act s 20(a), s 20(b), s 20(h) and s 20(m).
(2006) 32 WAR 501
(2007) 34 WAR 342
(2005) 29 WAR 563
(1995) 184 CLR 163