[2024] VCAT 681
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2024-07-18
Original judgment source is linked above.
The application must be made using the online form available at https://www.vcatt.gov.au/douments/forms/application-costs-or-fee-reimbursement-planning
The supporting information must explain the following:
a) The basis upon which costs are sought.
b) The amount and details of the costs claimed, including any itemised bills with invoices where relevant.
c) The basis on which the costs are calculated (for example, whether on a standard or indemnity basis and whether on the County Court or Supreme Court scale. Note that under Rule 1.07 of the Victorian Civil and Administrative Rules 2018 (Vic), the default scale of costs is now a standard basis on the County Court Scale).
d) The reasons why costs should be awarded having regard to the provisions of the Victorian Civil and Administrative Act 1998 (Vic).
e) A copy of any document relied upon in the costs application or supporting submissions.
If you make an application for costs in this proceeding, you will be required to pay an application fee. For more information, see the VCAT website.
Response from other parties to application for costs
(a) A submission which explain the party's position in respect of the application for costs, including any basis on the application for costs is opposed; and
(b) A copy of any documents relied on in the submission.
Peter O'Farrell and Tom Ellicott of Counsel instructed by Frenkel Partners.
The applicant called evidence from the following persons:
Barnaby Chessell and Jane Sharp of Counsel instructed by Norton Rose Fulbright.
Application under section 114(1) of the Planning and Environment Act 1987 (Vic) seeking an enforcement order for contravention of an agreement under section 173.
Between Foxhina Pty Ltd and the Minister for Planning dated 22 August 1989 and registered on CT Volume 9525 Folio 363 on 26 September 1989.
10 October 2023 accompanied by representatives of the parties.
This permit will expire if one of the following circumstances applies:
(a) The development is not stated within three years of the date of this permit.
(b) The development is not completed within five years of the date of this permit.
The Responsible Authority may extend the permit if a request is made in writing before the permit expires, or within six months afterwards.
The Responsible Authority may extend the time for completion of the development if a request is made in writing within 12 months after the permit expires and the development started lawfully before the permit expired.
4. The Owner hereby COVENANTS that it shall:
(a) As part of the works install appropriate fire protection of any windows on the eastern external walls which are located within three metres of a fire source feature on the adjoining property, such protection shall if so required include drench sprinklers.
(b) Maintain such fire protection of windows at its own expense unless or until the windows are removed in accordance with Clause 5.
5. In the event that:-
(a) As part of the works the Owner installs or constructs windows to the eastern adjoining property boundary; and
(b) At some future date an application for the demolition or part demolition of the existing building on the eastern adjoining property is granted and building approval is given for the construction of a new building or extensions to the existing building on the adjoining eastern property
- - the Owner undertakes to the Responsible Authority and HEREBY FURTHER COVENANTS that it shall take the following steps as soon as it is reasonably practicable with respect to any windows which will be within three metres of a fire source on the adjoining property namely -
- remove all existing glass panes and aluminium frames;
- install block work to openings left by removal of panes and frames as above;
- reinstate internal finishes affected by the removal of the panes and frames;
- finish exposed external installed block work to blend with the external finishes; and
- or such other steps as may be agreed with the Responsible Authority prior to the removal of the windows.
The rights and liabilities of parties under a provision of a contract are determined objectively, by reference to its text, context (the entire text of the contract as well as any contract, document or statutory provision referred to in the text of the contract) and purpose.
In determining the meaning of the terms of a commercial contract, it is necessary to ask what a reasonable businessperson would have understood those terms to mean. That inquiry will require consideration of the language used by the parties in the contract, the circumstances addressed by the contract and the commercial purpose or objects to be secured by the contract.
Ordinarily, this process of construction is possible by reference to the contract alone. Indeed, if an expression in a contract is unambiguous or susceptible of only one meaning, evidence of surrounding circumstances (events, circumstances and things external to the contract) cannot be adduced to contradict its plain meaning.
However, sometimes, recourse to events, circumstances and things external to the contract is necessary. It may be necessary in identifying the commercial purpose or objects of the contract where that task is facilitated by an understanding "of the genesis of the transaction, the background, the context [and] the market in which the parties are operating". It may be necessary in determining the proper construction where there is a constructional choice. The question whether events, circumstances and things external to the contract may be resorted to, in order to identify the existence of a constructional choice, does not arise in these appeals.
Each of these events, circumstances and things external to the contract to which recourse may be had is objective. What may be referred to are events, circumstances and things external to the contract which are known to the parties or which assist in identifying the purpose or object of the transaction, which may include its history, background and context and the market in which the parties are operating, what is inadmissible is evidence of the parties' statements and actions reflecting their actual intentions and expectations.
Other principles are relevant in the construction of commercial contracts. Unless a contrary intention is indicated in the contract, a court is entitled to approach the task of giving a commercial contract an interpretation on the assumption "that the parties...intended to produce a commercial result". Put another way, a commercial contact should be construed so as to avoid it 'making commercial nonsense or working commercial inconvenience".
These observations are not intended to state any departure for the law as set out in Codelfa Construction Pty Ltd v State Rail Authority (NSW) and Electricity Generation Corporation v Woodside Energy Ltd. We agree with the observations of Kiefel ad Keane JJ with respect to Western Export Services Inc v Jireh International Pty Ltd.
Responsible authority may enter into agreements
(1) A responsible authority may enter into an agreement with an owner of land in the area covered by a planning scheme for which it is a responsible authority.
(2) A responsible authority may enter into an agreement on its own behalf or jointly with any other person or body.
(3) A responsible authority may enter into an agreement under subsection (1) with a person in anticipation of that person becoming the owner of the land.
(4) The responsible authority cannot apply to have the agreement referred to in sub-section (3) registered under section 181 until the person becomes the owner of the land but the agreement is binding on the parties.
(5) In this Division a reference to an owner in relation to Crown land includes an occupier of that land.
Form and contents of agreement
(1) An agreement must be under seal and must bind the owner to the covenants specified in the agreement.
(2) An agreement may provide for any one or more of the following matters -
(a) the prohibition, restriction or regulation of the use or development of the land;
(b) the conditions subject to which the land may be used or developed for specified purposes;
(c) any matter intended to achieve or advance -
(i) the objectives of planning in Victoria; or
(ii) the objectives of the planning scheme or any amendment to the planning scheme of which notice has been given under section 19;
(d) any matter incidental to any one or more of the objectives.
It is considered by the Responsible Authority that for the better protection of the adjoining land to the east and any building now or hereafter erected thereon that further conditions be imposed upon the development which shall be embodied as covenants by the Owner, its successors and assigns, in an agreement between the Responsible Authority and the Owner.
Interpretation of the operative clauses of the Agreement
[1] The submissions and evidence of the parties, any supporting exhibits given at the hearing, and the statements of grounds filed; have all been considered in the determination of the proceeding. In accordance with the practice of the Tribunal, not all of this material will be cited or referred to in these reasons.
[2] See paragraph 89 of the applicant's written submission for the relief sought by the applicant.
[3] See Tribunal Book (TB) at p.164 (Proposal 24).
[4] See TB19-57 for a copy of the planning permit and endorsed plans.
[7] See TB194-204 for Stage 3 Building Permit and endorsed plans.
[8] See email correspondence from applicant to Tribunal of 11 October 2023.
[10] In this regard, I note the concession made by Mr O'Farrell in his closing oral submission on 11 October 2023.
[15] See paragraph 34 of the respondents' written submission.
[16] See paragraph 32 of the applicants' written submissions.
[17] See TB20 for what the 2019 Planning Permit allows and TB26-30 for the relevant plans endorsed on 16 December 2024.
Seafirst Australia Pty Ltd
Melbourne CC [2024] VCAT 681
(2015) 256 CLR 104