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[2022] NSWCA 167
Court of Appeal (NSW)
2022-06-08
Gleeson JA, Beech-Jones JA, Parker J
Original judgment source is linked above.
Solicitors: Colquhoun v Colquhoun (Appellants) DC Balog & Associates (Respondents) File Number(s): 2021/296713 Decision under appeal Court or tribunal: Supreme Court Jurisdiction: Equity Citation: Sheppard v Smith [2021] NSWSC 1207 Date of Decision: 23 September 2021 Before: Parker J File Number(s): 2019/306802
[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] The Appellants and the Respondents are the owners of adjacent properties in inner Sydney (being "Number 6" and "Number 8" respectively). Number 8 has the benefit of a right of way over an L-shaped strip of land at the rear and side of Number 6 which if trafficable would provide access from the rear of Number 8 to the street (the "L- shaped strip"). The right of way was granted in 1885 when a much larger area of land was subdivided. It was expressed in unqualified terms, although its purposes at least included the facilitation of the removal of "night soil" (ie, a "dunny lane"). The L-shaped strip did not originally form part of Number 6. Number 8 was brought under the Real Property Act 1900 prior to its acquisition by the Respondents in 2008, however, indefeasible title to the property was not granted until 2010. The primary judge found that, at that time, the Respondents took "active steps" to record the right of way on the title to Number 8. The Appellants acquired Number 6 in 2012. Number 6 was brought under the Real Property Act around 1995 but the L-shaped strip was not part of the title until a possessory title application was granted in 2019. The new title recorded the existence of the right of way over the land in favour of Number 8. After the connection of sewers in around 1908, traffic along the right of way ceased and it fell into disuse. Fences between Number 6 and Number 8 were extended to the rear fences across the entrance to the right of way. On Number 6 a gate was constructed at the point where the L-shaped strip met the street. A garden bed was built at the rear of Number 6 in the area of the right of way, save for a manhole cover in the corner. A fishpond was built at one end of the garden bed. After 2010 the Respondents replaced the fence between Number 6 and Number 8 with a wooden paling fence built entirely on Number 8's property. They placed a metal post in the area of the right of way. They constructed a knee-high concrete wall against the rear fence to Number 8 which impeded access to the right of way, and built a garden shed in their backyard close to the new fence. They later removed the shed. After the Appellants acquired Number 6, they replaced the garden bed and fishpond with a waist-high brick wall along the boundary with number 4. They also extended a room across the right of way to the boundary with number 4. In 2019 the Appellants commenced proceedings against the Respondents seeking an order under s 89(1) of the Conveyancing Act 1919 that the right of way be extinguished. The Appellants relied on all three limbs of s 89(1) as the basis for extinguishment, namely that: (i) by the "acts or omissions" of the persons from time to time entitled to the easement it "may reasonably be considered [that they] have abandoned the easement" (s 89(1)(b)); (ii) that the easement "ought to be deemed obsolete" or that the continued existence of the easement "would impede the reasonable user of the land subject to the easement … without securing practical benefit to the persons entitled to the easement" (s 89(1)(a)); and (iii) that the proposed extinguishment of the easement "will not substantially injure the persons entitled to the easement" (s 89(1)(c). The Appellants also relied on s 89(1A) which provides that, for the purposes of s 89(1)(b), an easement may be treated as abandoned if the Court is satisfied that the easement has not been used for at least 20 years before the application under subs (1) for extinguishment (or modification) is made. The primary judge (Parker J) dismissed the proceedings. The decision was appealed. The principal issues arising on the appeal were whether the primary judge erred: (i) in finding that the Respondents manifested an intention not to abandon the right of way in December 2010 when the right of way was noted on the certificate of title to Number 8; (ii) in failing to find an intention on the part of the Respondents to abandon the right of way; (iii) in failing to find an intention of the part of the prior owners of Number 8 to abandon the right of way; (iv) in finding that the right of way was not obsolete; and (v) in failing to find that the extinguishment of the easement would not substantially injure the Respondents. The Court held, by Beech-Jones JA (Gleeson JA and Basten AJA agreeing) dismissing the appeal: In relation to issue (i):
JUDGMENT
Title to Number 6, Number 8 and the L-Shaped Strip
Dealings with and Use of the L-Shaped Strip
The Notation of the Right of Way on the Respondents' Title
Abandonment - s 89(1)(b)
The Primary Judge's Reasoning on Abandonment
Grounds of Appeal Relating to Abandonment
Abandonment: Approach
Ground 3: Erred in Finding a Manifest Intention
Ground 2: Erred in Not Finding an Intention to Abandon
Ground 4: Subjective Considerations
Ground 5: Ms McJannet and the Respondents' Conduct
The Trial Judge's Approach
Ground 6: Alleged Error in Relation to Obsolescence
Reasoning of the Primary Judge
Ground 7: Substantial Injury
Conclusion
Endnotes
Sheppard
Smith