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[2018] NSWCA 196
Court of Appeal (NSW)
2018-07-03
Bathurst CJ, Ward JA, Payne JA, Bryson J
Original judgment source is linked above.
[1975] AC 520 Daniels Corporation International Pty Ltd v ACCC (2002) 213 CLR 543; [2002] HCA 49 Deputy Commissioner of Taxation v Richard Walter Pty Ltd (1995) 183 CLR 168; [1995] HCA 23 Federal Commissioner of Taxation v Futuris Corporation Limited (2008) 237 CLR 146; [2008] HCA 32 Forrest & Forrest Pty Ltd v Wilson [2017] HCA 30; (2017) 91 ALJR 833 George v Rockett (1990) 170 CLR 104; [1990] HCA 26 Jones v The Commonwealth (1963) 109 CLR 475; [1963] HCA 43 Lee v New South Wales Crime Commission (2013) 251 CLR 196; [2013] HCA 39 Manson v Roads and Traffic Authority (Supreme Court (NSW), Bryson J, 6 May 1996, unrep) Manson v Roads and Traffic Authority of New South Wales [1996] NSWCA 339 Master Education Services Pty Ltd v Ketchell (2008) 236 CLR 101; [2008] HCA 38 Montreal Street Railway Co v Normandin [1917] AC 170 Mount Bruce Mining Pty Limited v Wright Prospecting Pty Limited (2015) 256 CLR 104; [2015] HCA 37 Municipal Council of Sydney v Campbell [1925] AC 338 Nicholas v Western Australia [1972] WAR 168 Ousley v The Queen (1997) 192 CLR 69; [1997] HCA 49 Plaintiff M47/2012 v Director General of Security (2012) 251 CLR 1; [2012] HCA 46 Plaintiff M68/2015 v Minister for Immigration and Border Protection (2016) 257 CLR 42; [2016] HCA 1 Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355; [1998] HCA 28 R v Toohey (1981) 151 CLR 170 R & R Fazzolari Pty Ltd v Parramatta City Council (2009) 237 CLR 603; [2009] HCA 12 Roads & Traffic Authority of New South Wales v Peak [2007] NSWCA 66 Robinson Helicopter Company Inc v McDermott [2016] HCA 22; (2016) 331 ALR 550 Samrein Pty Ltd v Metropolitan Water, Sewerage and Drainage Board (1982) 56 ALJR 678 Simpson v Attorney-General [1955] NZLR 271 Taylor v The Owners - Strata Plan No 11564 (2014) 253 CLR 531; [2014] HCA 9 The Baptist Union of NSW v Georges River Council [2017] NSWSC 347 Tolson v RMS [2014] NSWCA 161 Truth About Motorways Pty Ltd v Macquarie Infrastructure investment Management Ltd (2000) 200 CLR 591; [2000] HCA 11 X7 v R [2014] NSWCCA 273; (2014) 292 FLR 57 Texts Cited: Mark Aronson, Matthew Groves and Greg Weeks, Judicial Review of Administrative Action (6th ed, 2016, LawBook Co) Category: Principal judgment Parties: Roads and Maritime Services (Appellant/Cross-Respondent) Desane Properties Pty Ltd (Respondent/Cross-Appellant) Representation: Counsel:
Mr N Hutley SC / Mr S Kanagaratnam / Mr S Hartford Davis (Appellant/Cross-Respondent) Mr R Merkel QC / Mr D Pritchard SC / Mr D Krochmalik (Respondent/Cross-Appellant)
Crown Solicitor's Office (Appellant/Cross-Respondent) Levitt Robinson Solicitors (Respondent/Cross-Appellant) File Number(s): 2018/161676 (Appeal) / 2018/174176 (Cross-Appeal) Decision under appeal Court or tribunal: Supreme Court of New South Wales Jurisdiction: Equity Division Citation: [2018] NSWSC 553 Date of Decision: 01 May 2018 Before: Hammerschlag J File Number(s): 2017/243774
[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] In 2012 the NSW Government announced the WestConnex project, one of the largest integrated transport and urban revitalisation projects in Australia. WestConnex was divided into various stages including, relevantly, Stage 3B. Stage 3B involves the construction of an underground interchange at Rozelle (known as the Rozelle Interchange) and a connection to a future harbour crossing (known as the Western Harbour Tunnel). Since at least 2015, Roads and Maritime Services, the appellant, had identified that acquisition of privately-owned properties covering the area of the proposed Rozelle Interchange project, including a property owned by Desane Properties Pty Ltd, the respondent, would be required for the construction of the Rozelle Interchange and Western Harbour Tunnel. On 21 July 2016, the NSW Government publicly announced that following the completion of the construction work for the underground Rozelle Interchange, the area over the Interchange would provide up to 10 hectares of new parkland and open space. The area proposed to be transformed into parkland and open space included the area occupied by the respondent's property. On 26 May 2017, following a negotiation period, the appellant issued the respondent a Proposed Acquisition Notice ('PAN') in order to begin the compulsory acquisition process under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW). While the PAN and accompanying compensation form reflected the information in the Land Acquisition (Just Terms Compensation) Act 1991 (NSW), they departed in some respects from the form for such notices which had been approved by the Minister pursuant to s 15(a) of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) ('Approved Form'). The respondent challenged the PAN, claiming that it was invalid for failure to comply with the Approved Form. The respondent also claimed that the appellant was actuated by an improper purpose in issuing the PAN because it sought to acquire the property for meeting the NSW Government's commitment to parkland and open space irrespective of whether the Rozelle Interchange project proceeded. The respondent also sought an injunction preventing the appellant from acting on the PAN. The primary judge found that the PAN was invalid because it departed from the Approved Form in material respects, in circumstances where the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) required strict compliance with its procedural requirements. Further, the primary judge found that compliance with the procedural requirements of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) was a necessary precondition to the exercise of the appellant's power compulsorily to acquire property. The primary judge found that the Approved Form departed from the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) (which had been amended in 2016) to the extent that it was inconsistent with the Act, and thereby could not validly invoke the machinery of the Act. The primary judge further found that, by means of statutory implication, s 15 of the Act requires that a valid PAN state the particular public purpose for which the subject land is proposed to be acquired, and that the PAN issued by the appellant failed to meet this requirement. Finally, the primary judge found that the appellant was actuated by an improper purpose at the time it issued the PAN because it would not have issued the PAN but for the desire to provide open space and parkland. The primary judge thus found for the respondent but refused to grant the injunctive relief sought by the respondent (that being put in issue by the appellant's cross-appeal). On appeal the issues were: (i) Whether the primary judge erred in finding that the PAN was invalid for lack of compliance with the Approved Form and that compliance was a necessary precondition for a lawful acquisition; (ii) Whether the primary judge erred in finding that the Approved Form could no longer invoke the machinery of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) following the 2016 amendment to the Act; (iii) Whether the primary judge erred in finding that the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) required that the PAN strictly comply with the Approved Form; (iv) Whether the primary judge erred in finding that the PAN did not substantially comply with the Approved Form; (v) Whether the primary judge erred in finding that there was a requirement that the PAN state the public purpose for which the acquisition was sought; (vi) Whether the primary judge erred in finding that the appellant was actuated by an improper purpose in issuing the PAN. The respondent cross-appealed. The issue on the cross-appeal was: (vii) Whether injunctive relief restraining the appellant from acting on the PAN should be granted in the event that the PAN was not invalid but still unlawful. The Court (Bathurst CJ, Ward JA, Payne JA) held, allowing the appeal and dismissing the cross-appeal: In relation to issue (i), The PAN was not invalid. As a matter of construction, the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) as a whole evinces an intention that failure to comply with the provisions of Part 2 of the Act does not go to the validity of a PAN: [206]-[224] Land Acquisition (Just Terms Compensation) Act 1991 (NSW), ss 10A, 11, 12, 13(1), 14(3), 15, 16(1), (3), 17, 19, 31, 33, 42, 69; Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355; [1998] HCA 28; Master Education Services Pty Ltd v Ketchell (2008) 236 CLR 101; [2008] HCA 38; ASIC v DB Management Pty Ltd (2000) 199 CLR 321; [2000] HCA 7; Lee v New South Wales Crime Commission (2013) 251 CLR 196; [2013] HCA 39; Manson v Roads and Traffic Authority (Supreme Court (NSW), Bryson J, 6 May 1996, unrep); Manson v Roads and Traffic Authority of New South Wales [1996] NSWCA 339 applied. Clunies-Ross v Commonwealth (1984) 155 CLR 193; [1984] HCA 65; R & R Fazzolari Pty Ltd v Parramatta City Council (2009) 237 CLR 603; [2009] HCA 12; Forrest & Forrest Pty Ltd v Wilson [2017] HCA 30; (2017) 91 ALJR 833; Deputy Commissioner of Taxation v Richard Walter Pty Ltd (1995) 183 CLR 168; [1995] HCA 23; Federal Commissioner of Taxation v Futuris Corporation Limited (2008) 237 CLR 146; [2008] HCA 32 distinguished. In relation to issue (ii), The Approved Form did not cease to be able validly to invoke the machinery of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) following the 2016 amendment to the Act. On its proper construction, s 15(a) of the Land Acquisition (Just Terms Compensation Act 1991 (NSW) does not require that any Approved Form precisely adopt the language of the Act at the date of the issue of a PAN or lead to the conclusion that any difference between the language in an Approved Form and the Act give rise to invalidity of the Approved Form: [249]-[254] Land Acquisition (Just Terms Compensation) Act 1991 (NSW), s 15(a) applied. In relation to issue (iii), The PAN was not required strictly to comply with the Approved Form. The Land Acquisition (Just Terms Compensation) Act 1991 (NSW) (in particular see ss 16(1), 33 and 69), does not evince an intention that strict compliance is necessary. It follows that s 80(1) of the Interpretation Act 1987 (NSW) applies to make it sufficient that the PAN substantially complied with the Approved Form: [225]-[230] Interpretation Act 1987 (NSW), ss 5(2), 80(1); Land Acquisition (Just Terms Compensation) Act 1991 (NSW), ss 16(1), 33, 69; Adams v Lambert (2006) 228 CLR 409; [2006] HCA 10 applied. In relation to issue (iv), The PAN substantially complied with the Approved Form. The reference to "the disadvantage resulting from relocation" in the PAN was an accurate statement about a statutory entitlement which entitlement was materially the same as the repealed concept of "solatium" referred to in the Approved Form. One was merely the Latin cognate of the English phrase: [233]-[243] Land Acquisition (Just Terms Compensation) Act 1991 (NSW), ss 37, 55, 60; Tolson v RMS [2014] NSWCA 161 applied. The identification of a period of "within 45 days" for the giving of a compensation offer referred to in the PAN was a legally correct statement about the obligation imposed on an authority of the State by s 42(1) of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) and encompassed the period identified in the Approved Form of "generally within" 30 days: [244]-[248] Land Acquisition (Just Terms Compensation) Act 1991 (NSW), ss 42(1), (4) applied. In relation to issue (v), There was no requirement for a valid PAN to state the public purpose for which acquisition was sought. There is nothing in the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) requiring the implication of such a requirement because the legislative scheme facilitates the provision to the owner of land to whom a PAN is issued of much more information than a bare statement of the public purpose: [255]-[277] Land Acquisition (Just Terms Compensation) Act 1991 (NSW), ss 3(1)(c), 10A, 47, 54, 55, 56; Public Works Act 1912 (NSW), s 42; Taylor v The Owners - Strata Plan No 11564 (2014) 253 CLR 531; [2014] HCA 9 applied. Roads & Traffic Authority of New South Wales v Peak [2007] NSWCA 66 considered. Municipal Council of Sydney v Campbell [1925] AC 338; Campbell v Municipal Council of Sydney (1923) 24 SR (NSW) 179; Jones v The Commonwealth (1963) 109 CLR 475; [1963] HCA 43 distinguished. In any event, the covering letter accompanying the PAN clearly identified the public purpose of the proposed acquisition: [278]-[280] Manson v Roads and Traffic Authority of New South Wales [1996] NSWCA 339 applied. In relation to issue (vi), The appellant was not actuated by an improper purpose. The critical time for assessing purpose is not at the time the PAN is issued but at the time the power to acquire is exercised, being at the time of acquisition: [299]-[300] Land Acquisition (Just Terms Compensation) Act 1991 (NSW), ss 5, 7; Roads Act 1993 (NSW), s 177(1) applied. The appellant was not actuated by an improper purpose at the time the PAN was issued. The totality of the evidence, including the documentary evidence of the "guiding minds" of the appellant, was that the respondent's property would be used as a site for the construction of the Rozelle Interchange, including the Western Harbour Tunnel enabling works. While there remained uncertainty as to how the land would be used within the envelope of a construction site, there was no uncertainty that it would be used as part of a construction site and no need to identify the specific use with precision at the time the PAN was issued. The legitimacy of this purpose was not invalidated because there was a risk, inherent in every large-scale construction project, that the purpose may not at some future point be realised. To the extent that the appellant contemplated use of the property for open space and parkland, this was not until after the construction would be concluded and did not mean that the appellant was actuated by an improper purpose: [301]-[311] Australian Securities and Investments Commission v Hellicar (2012) 247 CLR 345; [2012] HCA 17; Samrein Pty Ltd v Metropolitan Water, Sewerage and Drainage Board (1982) 56 ALJR 678 applied. In relation to issue (vii), The issue of the grant of injunctive relief does not arise in circumstances where the PAN substantially complied with the Approved Form and was thus not unlawful: [291] In any event, the court would exercise its discretion to refuse injunctive relief in circumstances where the PAN provided legally accurate information about the respondent's rights under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW): [292]-[295]
Judgment
The primary judgment
Grounds of appeal
Notice of cross-appeal
Submissions of the parties
The cross-appeal
Consideration
Validity of the Proposed Acquisition Notice
Section 80 of the Interpretation Act and substantial compliance
The validity of the Approved Form and the Approved Claim Form after 2016
The public purpose issue
The notice of contention
The cross-appeal
The improper purpose issue
Conclusion and orders
Amendments 07 September 2018 - Typographical amendments made to paragraphs [96], [115], [172], [185(4)], [195], [210], [225], [233], [277], [300], [304].
Added the words "and submitted" to [144], line 2. 06 August 2019 - Typographical amendments made to paragraphs [12], [42], [80], [202], [211], [279], [301]. Changed date from 2016 to 2017 in paragraph [53]. Changed reference from section 1(a) to 1(ca) in paragraph[199] . Deleted words "s 11 and" in paragraph [227]. 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: 06 August 2019
Roads and Maritime Services
Desane Properties Pty Ltd
[1965] HCA 55
[2015] HCA 37
[2016] HCA 1
[2016] HCA 22
[2006] SASC 186
(2006) 228 CLR 409
(2009) 239 CLR 27
(2000) 199 CLR 321
(1993) 41 FCR 1
(2001) 208 CLR 199
(2012) 247 CLR 345
(1965) 113 CLR 365
(1984) 155 CLR 193
(2002) 213 CLR 543
(1995) 183 CLR 168
(2008) 237 CLR 146
(2017) 91 ALJR 833
(1990) 170 CLR 104
(1963) 109 CLR 475
(2013) 251 CLR 196
(2008) 236 CLR 101
(2015) 256 CLR 104
(1997) 192 CLR 69
(2012) 251 CLR 1
(2016) 257 CLR 42
(1998) 194 CLR 355
(1981) 151 CLR 170
(2009) 237 CLR 603
(2016) 331 ALR 550
(1982) 56 ALJR 678
(2014) 253 CLR 531
(2000) 200 CLR 591
(2014) 292 FLR 57
(2006) 95 SASR 83
(1990) 19 NSWLR 317
(1950) 81 CLR 87
(1951) 83 CLR 424
[2001] HCA 63
[2008] HCA 38
[2006] HCA 10
[2009] HCA 12
[2009] HCA 41
[2012] HCA 46
[2002] HCA 49