[2024] VCAT 189
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2024-02-29
Original judgment source is linked above.
A specified person or a party to the agreement may apply to the Tribunal for the determination of a matter relating to the interpretation of an agreement under section 173.
That the use and development of 96 Albert Ruttle Drive, Inverloch for a single dwelling will not contravene the obligations in the Section 173 Agreement dated 11 November 1996, being Instrument No U792700N registered on Certificate of Title Volume 11955 Folio 095.
(2) The Tribunal may determine the matter and may do one or both of the following -
(a) make any declaration that it considers appropriate;
(b) direct a specified body to take, or refrain from taking, action specified by the Tribunal.
The Agreement is registered on the title to the Land. The Land is covered with vegetation and a water body, and devoid of any built form, as seen in the aerial image of the land below.[2]
The initial recitals of the Agreement are reproduced below.
The owner of the Land at that time was also the owner of all the land in the proposed 30 lot subdivision. Below is a copy of the overall development plan ('ODP') attached to the agreement as well as an aerial image of the entirety of the land contained in the ODP, as it appears on 8 January 2023.[4]
The council submits that the land shown as 'Reserve' on the eastern side of the subdivision in the ODP encompasses the area above and below the thick black line, as well as to the west of that line, despite that fact that the area to the south of the thick black line is consistent with the shape of the Land and is the only area burdened by the Agreement. It is noticeable, however, that the areas to the north and north-east of the Land have not been developed with any dwellings and appear to include water bodies. That area is now a single odd shaped lot and is known as lot 29 of plan of subdivision 524032 and also 26 John Flagg Rise, as seen in the planning property report mapping, below.
Section 174 of the Act, in its current form, provides:
The Supreme Court decision of Quigley J in TPSC Pty Ltd v Kingston City Council [2018] VSC 313 ('TPSC') sets out the principles of construction of a contract, by reference to the High Court decision of Mount Bruce Mining Pty Ltd v Wright Prospecting (2015) 256 CLR, including the following:
In TPSC, Justice Quigley then set out the additional considerations that apply to the construction of an agreement entered pursuant to section 173 of the PE Act:[5]
79 In support of its case, the Applicants say that:
17 Per Justice Morris (as he then was) in Solid Investments at [43].
Section 174 of the PE Act describes the matters that may be included in a section 173 agreement, as follows:
Would the use and development of a dwelling on the Land contravene the obligations in the Agreement?
it follows that the Reserve and the Wetlands, for the purpose of the Agreement, cover the entirety of the Land, even though there is not a clear delineation of where each sits within the Land. However, if one was to review the Agreement and then physically inspect the Land, it would be sensible to infer that the body of water comprises the Wetlands, with the remainder of the Land constituting the Reserve.
Consideration of the proposed use and development
Consistency with planning controls and decisions of the Tribunal dealing with the use of public spaces for private purposes
The café and BLSC are not open at all times but this does not mean that the uses are inconsistent with the Vesting Act. It simply means that very small parts of the review site cannot be used by the public at certain times. It does not prevent the review site in its totality from being used for public recreation and as a place of public resort.
Specifics of use and development - an alternative declaration
At the conclusion of the hearing, consistent with material tabled prior to the hearing, the applicant also requested the Tribunal to consider whether it was prepared to make an alternative declaration, specifying that the dwelling to be constructed must be constructed in a specific location (as shown in a proposed plan of subdivision filed by the applicant, below, noting that this includes a subdivision that is not proposed by this application) with an identified building envelope. The applicant confirmed that the area of the building envelope would comprise 3 per cent of the area of the Land.
[1] The submissions 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] From www.nearmap.com.au, taken on 8 January 2023.
[3] On 3 April 2018 a restrictive covenant was also registered on the title to the Land. Among the restrictions included in the covenant is a limitation on development to a single dwelling on the lot. This covenant also applies to all other lots within plans of subdivision 344899X and 524032Q.
[4] From www.nearmap.com.au. The Land is identified by a blue marker.
[5] I have not included the footnotes referenced in this citation.
[7] I note that these sections are not described as 'Recitals' within the Agreement and there is no specific explanation as to their purpose. However, it is clear that these sections, which I refer to as 'Recitals' comprises a summary and explanation of the background to and purpose for the Agreement. I agree with the submissions of the Applicant, that the Recitals ought to be viewed as an aid to construction of the operative provisions of the Agreement. Sections A to F are headed 'Whereas:' with the substantive provisions included under the heading 'Now this agreement witnesseth as follows:'.
[8] Paraphrasing the applicant's written submissions, at [4].
[12] Within the applicant's written submissions at [22].
The Reserve Inverloch Pty Ltd
Bass Coast SC [2024] VCAT 189
(1956) 95 CLR 420
(2015) 256 CLR 104