Subject: NCAT Legal Bulletin Issue 4 of 2015

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NCAT Legal Bulletin
Issue 4 of 2015
The NCAT Legal Bulletin provides a summary of relevant and interesting case law of significance to the work of the NSW Civil and Administrative Tribunal. This issue covers the period of July to December 2015.

From 1 March 2016, the Tribunal will have new jurisdiction to review decisions made by the Independent Liquor and Gaming Authority. Amendment to the Gaming and Liquor Administration Act 2007 will provide for the Tribunal to review certain licensing decisions by the authority.

The Tribunal's Guardianship Division Registry is moving from Balmain at the end of March 2016 to the Sydney CBD. From 5 April 2016, the Guardianship Division Registry will be located on Level 6, John Maddison Tower, 86-90 Goulburn Street, Sydney. NCAT's Principal Registry, Administrative and Equal Opportunity Division and Occupational Division Registry are also located in John Maddison Tower.
High Court of Australia
AusNet Transmission Group Pty Ltd v Federal Commissioner of Taxation [2015] HCA 25; 89 ALJR 385
5 August 2015

In brief: The High Court, by a majority, dismissed an appeal from the Full Court of the Federal Court, and held that payments under an electricity transmission licence which required, among other things, the holder to pay certain charges to the State government, were capital in nature under s 8-1(2)(a) of the Income Tax Assessment Act 1997 (Cth) and hence not deductible.

Read the decision on the High Court of Australia website.


Police v Dunstall [2015] HCA 26; 89 ALJR 677
5 August 2015

In brief: The High Court unanimously allowed an appeal from the Full Court of the Supreme Court of South Australia and held that the respondent’s breath analysis reading had been wrongfully excluded from evidence. In spite of there being only one avenue by which the statutory presumption could be displaced, this did not create a statutory right to have a blood test and the onus was still on the respondent to displace the presumption arising out the breath analysis reading.

Read the decision on the High Court of Australia website.

Smith v The Queen [2015] HCA 27; 89 ALJR 698
5 August 2015

In brief: The High Court unanimously dismissed an appeal from the Court of Appeal of Queensland where the appellant contended he was denied procedural fairness in a trial for one count of rape where the trial judge did not disclose to counsel the precise contents of a note from the jury containing interim votes and voting patterns and where, ultimately, the jury was permitted to consider a majority verdict under s 59A of the Jury Act 1995 (Qld), because the protean and changeable character of the jury’s deliberations made it such that it could not be relevant to an issue before the court.

Read the decision on the High Court of Australia website.

Tomlinson v Ramsey Food Processing Pty Limited [2015] HCA 28; 89 ALJR 750
12 August 2015

The question before the High Court in this matter was:

…whether the claiming by the Fair Work Ombudsman and the making by a court of declarations and orders in a civil penalty proceeding created an issue estoppel on which a respondent to that proceeding was entitled to rely in a subsequent common law proceeding brought against it by a worker.

The Court held:

…that the claiming and making of the declarations and orders created no issue estoppel, for want of sufficient connection in interest between the Fair Work Ombudsman and the worker.

Read the decision on the High Court of Australia website.

Filippou v The Queen [2015] HCA 29; 89 ALJR 776
12 August 2015

In brief: The High Court unanimously dismissed an appeal from the Court of Criminal Appeal of New South Wales against convictions and sentencing for two counts of murder, in circumstances where the appellant relied upon the partial defence of provocation and the primary judge, sitting by herself without a jury, proceeded to convict and sentence on the basis that the origin of the gun with which the murders were carried out was unknown because she could not be satisfied to the requisite standards of proof either that it came from the appellant or from one of the deceased.

Read the decision on the High Court of Australia website.

AstraZeneca AB v Apotex Pty Ltd; AstraZeneca AB v Watson Pharma Pty Ltd; AstraZeneca AB v Ascent Pharma Pty Ltd [2015] HCA 30
2 September 2015

In brief: The High Court, in an appeal from the Full Court of the Federal Court, examined what is meant by an inventive step, one requirement for a patent under the Patents Act 1990 (Cth), under s 7(2) and (3) of that Act and unanimously held that a patent which disclosed a method of treatment for hypercholesterolemia lacked such a step and was therefore invalid.

Read the decision on the High Court of Australia website.

Fuller-Lyons v New South Wales [2015] HCA 31
2 September 2015

In brief: The High Court unanimously allowed an appeal from the Court of Appeal of New South Wales and restored the primary judge’s award of damages, in a case of negligence, to the appellant who had fallen from a train. The High Court held that if the primary judge’s factual finding was correct (in the sense of being available on the evidence), the existence of other possible explanations for the known facts did not justify the Court of Appeal’s overturning that finding.

Read the decision on the High Court of Australia website.

Duncan v Independent Commission Against Corruption [2015] HCA 32
9 September 2015

In brief: The High Court unanimously dismissed an application for a declaration that Pt 13 of Sch 4 of the Independent Commission Against Corruption Act 1988 (NSW), inserted by the Independent Commission Against Corruption Amendment (Validation) Act 2015 (NSW), was invalid on the proper construction of the legislation.

Read the decision on the High Court of Australia website.

Commonwealth of Australia v Director, Fair Work Building Industry Inspectorate; Construction, Forestry, Mining and Energy Union v Director, Fair Work Building Industry Inspectorate [2015] HCA 46
9 December 2015

In brief: The High Court unanimously held that the principle in Barbaro does not apply to civil penalty proceedings. In Barbaro, a plurality of the High Court held that criminal prosecutors are not permitted to make a submission to a sentencing judge nominating a quantified range of sentences that the prosecution considers to be open. In the present case, the High Court held that the task of a court is to determine whether, in all the circumstances, the agreed penalty is an appropriate penalty. The court is not bound to accept the agreed penalty if it does not consider it appropriate.

Read the decision on the High Court of Australia website
Court of Appeal of New South Wales
Ibrahim v Medical Board of Australia [2015] NSWCA 207
20 July 2015 – Macfarlan and Gleeson JJA and Simpson J

The Court of Appeal dismissed an appeal from the Occupational Division of the Civil and Administrative Tribunal (constituted by O’Connor ADCJ, Deputy President; Drs King and Toh, Professional Members; and Dr Mair, Lay Member: [2014] NSWCATOD 108). The appellant, an international medical graduate from Egypt, applied to the NSW Board of the Medical Board of Australia for limited registration under s 67 of the Health Practitioner Regulation National Law (NSW) (the National Law). His application was refused, in part because the Board was of the view that the appellant’s activities in NSW did not meet the Recency of Practice Standard. His appeal to the Civil and Administrative Tribunal pursuant to s 175 of the National Law was dismissed. In the Court of Appeal, the appellant argued that the Tribunal erred in its interpretation of the definition of ‘practice’ for the purpose of the Recency of Practice Standard ([50]-[51]). The Court of Appeal considered the Tribunal’s discussion of the meaning of ‘practice’, and held that by providing three examples of environments in which a medical practitioner may use his or her of professional knowledge so as to satisfy the definition of “practice”, the Tribunal had not set a higher standard than that required by the definition, but merely provided illustrations (see [59]-[63]).

Read the decision on the NSW Caselaw website.

Qasim v Health Care Complaints Commission [2015] NSWCA 282
22 September 2015 – McColl, Meagher and Ward JJA

The Court of Appeal considered an appeal brought by a former specialist endocrinologist and consultant physician whose registration as a health practitioner was cancelled as a result of proceedings in the Occupational Division of the Civil and Administrative Tribunal (constituted by Garling ADCJ, Principal Member; Drs Gleeson and Anderson, Professional Members; and Prof Chisholm, Lay Member: [2014] NSWCATOD 42).

In dismissing the appeal with costs, Meagher JA (with whom the Court agreed) held the following on the Tribunal’s decision to prefer the evidence of one expert’s evidence over that of another at [41]:

… In reaching its conclusion to prefer the evidence of Dr Samuels [over the contrary evidence of Dr Smith], the Tribunal stated that it also took into account the behaviour of Dr Qasim appearing for herself during the hearing. As a Tribunal with specialist members, it was entitled to draw upon their expertise in assessing whether Dr Qasim’s conduct and demeanour during the proceeding was consistent with Dr Samuels’ opinion: see Re Anderson & Medical Practitioners Act (1967) 85 WN (Pt 1) (NSW) 558 at 570 (Sugerman JA) and Kalil v Bray [1977] 1 NSWLR 256 at 260-261 (Street CJ). (emphasis added)

However if the Tribunal is to take this course, it must ensure that the parties are sufficiently informed and given an opportunity to address the point in order to satisfy the requirements of procedural fairness. At [41], Meagher JA also held in this case:

There was no denial of procedural fairness in that respect because the appellant was given notice at the commencement of the hearing that the Tribunal might do so.

The Court also considered the question of costs in proceedings under the Health Practitioner Regulation Uniform Law (NSW), which was the subject of a cross-appeal by the Health Care Complaint Commission. Clause 13 of Sch 5D of the Health Practitioner Regulation Uniform Law (NSW) provides in part:

13 Tribunal may award costs [NSW]

(1) The Tribunal may order the complainant (if any), the registered health practitioner or student concerned, or any other person entitled to appear (whether as of right or because leave to appear has been granted) at an inquiry or appeal before the Tribunal to pay costs to another person as decided by the Tribunal
(4) This clause applies instead of section 60 (Costs) of the Civil and Administrative Tribunal Act 2013.

The Court held that, in circumstances such as those referred to in cl 13(1), “ordinarily costs should follow the event unless there are reasons to conclude otherwise” (at [85], which also contains a list of authorities for the proposition) and, finding no such reasons, gave leave to appeal, allowed the cross-appeal and substituted in place of the Tribunal’s order as to costs an order that the appellant pay the Commission’s costs in proceedings before the Tribunal and on appeal before the Court.

Read the decision on the NSW Caselaw website.

Navazi v New South Wales Land and Housing Corporation [2015] NSWCA 308
2 October 2015 – Leeming JA, Sackville AJA and Adamson J

The Court of Appeal refused the applicant, a public housing tenant, an extension of time and dismissed his claims for judicial review of decisions of the Consumer, Trader and Tenancy Tribunal and the District Court. Leeming JA gave a separate but mostly concurring judgment, in which his Honour considered there to be no utility in granting an extension of time where the tenant is clearly unwilling and unable to pay the rent and hence, with the passage of time, simply falls further and further into debt ([3]-[6]).

At [56], Sackville AJA held that section 113 of the Residential Tenancies Act 2010 (NSW) allows the Tribunal to terminate notwithstanding a defect in the notice of termination, if it is satisfied that the notice satisfies the broad criteria stated in s 113.

Sackville AJA did not decide whether Appeal Panel decisions are binding on the District Court, but did indicate that such decisions should be very persuasive authority to the District Court: ‘the [Appeal Panel] decision … added considerable weight to the argument that could have been put to the District Court’ (at [70]).

Read the decision on the NSW Caselaw website.

Jensen Laundry Systems Australia Pty Ltd v Raskopoulos [2015] NSWCA 352
18 November 2015 – Meagher and Gleeson JJA

The Court of Appeal heard an application for leave to appeal (and to the extent necessary, an application for an extension of time in which to seek that leave) against a number of interlocutory orders made in the Supreme Court by a single judge, being orders granting leave to file a further amended statement of claim to join additional defendants, an order vacating the trial date and an order dismissing an application that the judge disqualify himself from hearing the proceedings on the basis of actual or apprehended bias (for which his Honour gave short reasons). In dismissing the application with costs, the Court held at [17]:

The extent of the duty to give reasons depends on the nature of the particular decision, the circumstances in which it is made and the purpose that the statement of reasons is intended to serve. In many procedural applications, there is no need for the court to provide any or detailed reasons. Here, when the relevant orders were announced on 6 and 8 May 2015, there were no reasons provided, that was obvious, and there was no request that they be provided. If a party is considering a challenge to interlocutory orders made in pre-trial directions or in the course of a trial, and it is apparent that the primary judge does not propose to give reasons, a request for reasons should be made at the time or as soon as possible thereafter. In this case the absence of reasons for the orders made, in circumstances where there is no obvious error in the exercise of the relevant discretion and no real utility in the pursuit of the proposed appeal, has not resulted in any substantial injustice to the applicants.

Read the decision on the NSW Caselaw website.

Bull v Australian Quarter Horse Association [2015] NSWCA 354
19 November 2015 – Bathurst CJ, Beazley P and Sackville AJA

The Court of Appeal dismissed an appeal from Mr Bull, a breeder of quarter horses, against a decision of the Supreme Court, which held that the Regulations of the First Respondent, the Australian Quarter Horse Association (AQHA), prevented the registration of a cloned imported horse. One issue on appeal was whether an implied term existed in the agreement between AQHA and its members to the effect that an amendment to Regulations would not be binding on members until they had received notification of such amendment. The Court decided that no implied term could be found and summarised the test for implied terms in formal contexts and noted that the test is less rigorous for informal contracts, at [51]–[52]:

[51] Where the relationship between the parties occurs in a formal context, it is accepted that for a term to be implied into a contract, five conditions are to be satisfied: BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 at 283; Secured Income Real Estate (Australia) Ltd v St Martins Investments Pty Ltd [1979] HCA 51; 144 CLR 596; Codelfa Construction Pty Ltd v State Rail Authority of NSW [1982] HCA 24; 149 CLR 337. The conditions necessary to be satisfied for a term to be implied are that the term must (1) be reasonable and equitable; (2) be necessary to give business efficacy to the contract; (3) be so obvious that “it goes without saying”; (4) be capable of clear expression; and (5) must not contradict any express term of the contract: BP Refinery v Shire of Hastings at 283.

[52] A contract between a large association such as AQHA, which amongst other things is directed to the maintenance and preservation of the pedigree of quarter horses in Australia and therefore to the protection of the commercial interests and investment of its members in their quarter horses, is properly to be regarded as a formal contract to which these principles apply. This is to be contrasted with an informal contract, where the test for implied terms is less rigorous: see Byrne v Australian Airlines Ltd [1995] HCA 24; 185 CLR 410 at 422.

Read the decision on the NSW Caselaw website.

Saad v Fares [2015] NSWCA 385
25 November 2015 – Beazley P, Leeming JA and Emmett AJA

The Court of Appeal granted leave to appeal (to the extent leave was required) and allowed the appeal from a judgment of the District Court in proceedings for personal injury (caused by dog). The Court discussed the obligation to give reasons in the context, extracted at [21] of the judgment, where the District Court Judge had made positive findings that certain witnesses had invented or fabricated evidence. Leeming JA (with whom Beazley P and Emmett AJA agreed) held at [26]-[33]:

[26] It was necessary for the primary judge to give reasons for those findings. In some cases, very little by way of reasons is required. In Soulemezis v Dudley (Holdings) Pty Ltd (1987) 10 NSWLR 247 at 280 McHugh JA said:

“Where the resolution of the case depends entirely on credibility, it is probably enough that the judge has said that he believed one witness in preference to another; it is not necessary ‘for him to go further and say, for example, that the reason was based on demeanour’: Connell v Auckland City Council [1977] 1 NZLR 630 at 632-633 per Chilwell J.”

[27] But Soulemezis concerned the sufficiency of the reasons of a judge of the Compensation Court in circumstances in which an appeal was confined to a question of law or in relation to the admission or rejection of evidence. As was made clear in Douglass v The Queen [2012] HCA 34; 86 ALJR 1086 at [12], it is important that the passage in Soulemezis not be applied unthinkingly in a different context. Following a trial in the District Court, the disappointed litigant is given a right of appeal, by way of rehearing, and not confined to questions of law.

[28] There is, at least on one view, a tension between the statement in Soulemezis reproduced above, and later decisions dealing with the obligation to give reasons, including Goodrich Aerospace Pty Ltd v Arsic [2006] NSWCA 187; 66 NSWLR 186 at [29]. Those decisions were considered by this Court in Resource Pacific Pty Ltd v Wilkinson [2013] NSWCA 33 at [47]-[58]. It is not necessary for present purposes to consider the precise content of the obligation, or to explore the tension in the authorities.

[29] It is not necessary to do so because Heydon, Crennan and Bell JJ dealt with a similar issue in Kuhl v Zurich Financial Services Australia Ltd [2011] HCA 11; 243 CLR 361. They said at [67] in relation to party-witnesses such as Caroline, Fadi and Donna [the appellants and defendants at first instance]:

“It is not sound judicial technique to criticise a party-witness for deliberately withholding the truth in a fashion crucial to a dismissal of that party's claim unless two conditions are satisfied. First, reasons must be given for concluding that the truth has been deliberately withheld. Secondly, the party‑witness must have been given an opportunity to deal with the criticism.”

[30] The present case is even stronger: it is not that the party-witnesses were found to have deliberately withheld evidence, but that, according to his Honour [the District Court Judge], they fabricated false evidence. Although, at least in large measure, the witnesses were squarely confronted with the proposition that they were lying, this is a case, like Kuhl, where no reasons at all were given for the view formed by the primary judge.

[31] It was important for the people subjected to the very serious findings made by the primary judge to know why his Honour had regarded their evidence to have been fabricated. In part, those findings may have reflected the witnesses’ demeanours. In part, they may have reflected the intrinsic unlikelihood that a friend of the family, recently released from prison, was present with his dog which had apparently been returned to him three days earlier, and the existence of which was seemingly uncorroborated by any documentary evidence. In part, the findings may have been affected by the evaluation of the testimony of the plaintiffs, and a consideration of the nature of the wounds suffered by Jisele. They may easily have been informed by a combination of these and other matters. The men and women who have been subject to the adverse findings are entitled to know why the primary judge reached them, not least so that they can contend, in an appeal by way of rehearing, that they should not have been made.

[32] What is more, the findings were made on a wholesale basis. They applied to “the evidence of the Saad family”. No distinction was made between the different quality of the evidence given by Fadi (who could provide only limited corroboration, since he was absent) as opposed to Donna, Caroline and Antoinette.

[33] Further, there is nothing to explain why positive findings of fabrication, as opposed to a rejection of the evidence, were made. Section 140(2)(c) of the Evidence Act 1995 (NSW) applied, although it was not mentioned by his Honour, nor is there anything to suggest that he attended to the Briginshaw requirement of clear and cogent proof of the findings made: Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 67 ALJR 170.

Read the decision on the NSW Caselaw website.

Fraser v Health Care Complaints Commission [2015] NSWCA 421
23 December 2015 – Basten, Ward and Leeming JJA

The Court of Appeal dismissed an appeal against the decision of the Civil and Administrative Tribunal, Occupational Division. The appellant was a registered nurse until the Tribunal cancelled her registration for professional misconduct. The professional misconduct consisted of the appellant providing experimental cancer treatment to four patients while recklessly indifferent to the fact that her supervisor was not registered medical practitioner. Grounds 1–9 of the appeal challenged the Tribunal’s finding that the appellant was recklessly indifferent to this fact. The appellant argued that the Tribunal had erred in applying an objective test. In finding that the Tribunal did apply a subjective test, the Court of Appeal quoted (with approval) the following statement of Edelman J in Guidice:

It is possible that the references by the Tribunal to 'should have been aware' and 'should have considered' might be read as shorthand references to

A matter that any reasonable practitioner would have been aware so that the inference to draw from the circumstances was that this practitioner was aware that the statement might be untrue and made that statement without satisfying himself that it was true and regardless of the consequences.

Read the decision on the NSW Caselaw website.
Court of Appeal of Victoria
Grocon Constructors (Victoria) Pty Ltd v APN DF2 Project 2 Pty Ltd [2015] VSCA 190
23 July 2015 – Santamaria, Kyrou and McLeish JJA

The Victorian Court of Appeal considered the distinction between implying a term into a contract and the rectification of a contract, stating that (at [137]): ‘[a] term implied into a contract is one which it is presumed that the parties would have agreed upon had they turned their minds to it, whereas rectification will occur where a term has been omitted which should have been included and was actually agreed upon by the parties.’

The Court of Appeal also considered the distinction between inference and implication. The Court quoted, with approval, the distinction between the two processes set out in Deane J’s judgment in Hawkins v Clayton (1988) 164 CLR 539. Justice Deane identified two ‘stages’, which he said may well overlap, for the ascertainment of the relevant terms (at [176] of the Victorian Court of Appeal decision):

The first stage was described as ‘essentially one of inference of actual intention’, and entailed an inquiry as to ‘what, if any, are the terms which can properly be inferred from all the circumstances as having been included in the contract as a matter of actual intention of the parties’. The second stage was described as ‘one of imputation’ and entailed an inquiry as to ‘what, if any, are the terms which are, in all the circumstances, implied in the contract as a matter of presumed or imputed intention’

Read the decision on the AustLII website.
Supreme Court of Australia
Lawrence v Gunner; Gunner v Lawrence [2015] NSWSC 944
16 July 2015 – Stevenson J, Equity Division

In this case, Stevenson J considered s 81 of the Residential Tenancies Act 2010, which regulates the termination of residential tenancies. Justice Stevenson noted that (at [521]):

[521] Significantly, and most unfortunately, s 81 does not confer power on a court to terminate a residential tenancy agreement, even if the CTTT or NCAT has transferred proceedings to that court pursuant to the provisions I have mentioned [cl 6 of Sch 4 of the Civil and Administrative Tribunal Act 2013].

In the circumstances Stevenson J was inclined to make a declaration as to a party’s entitlement to termination of a residential tenancy agreement and to remit the matter to NCAT to make the order under ss 81 and 83 of the Residential Tenancies Act 2010. However, this course of action was deferred until the parties had an opportunity to address it.

Read the decision on the NSW Caselaw website.

Tu v CH Real Estate Pty Ltd t/as Raine & Horne Campbelltown [2015] NSWSC 1728
23 November 2015 – Davies J

In proceedings in which the principal issue was ‘the existence or otherwise of a retail lease of the premises’, the Supreme Court held that the Civil and Administrative Tribunal (Tribunal) does not have jurisdiction to ‘determine whether or not a retail shop lease existed’. Although ss 3, 63, 70 and 71 of the Retail Leases Act 1994 (NSW) grant the Tribunal jurisdiction to decide retail tenancy claims (defined in s 70), nothing in these provisions extends ‘to the situation where a party alleged that there was such a lease although that lease was disputed by the other party.’ This is because (at [35]):

While s 3 made it clear that the agreement [retail shop lease] could be express or implied and it was not necessary for it to be in writing, the section was posited on the basis that there was an agreement in that regard. … It would have been easy for the Act to have included in either of the definitions of “retail tenancy dispute” or “retail tenancy claim” a reference to a claim or dispute that included an assertion of the existence of an agreement although such assertion was denied. I am strengthened in that view by the fact that, notwithstanding s 75(2), exclusive jurisdiction was not given to the Tribunal to determine all matters involving disputes relating to retail leases – see ss 6, 6A(1), 75(1),(4), 76(1)(a), (2), 76A(1).

Read the decision on the NSW Caselaw website.

Black v Brereton [2015] NSWSC 1781
27 November 2015 – Button J

The Supreme Court dismissed an application for leave to appeal against a decision of the Appeal Panel of the Civil and Administrative Tribunal (the Appeal Panel Proceedings). The Appeal Panel Proceedings were heard on the papers and affirmed the Tribunal’s decision at first instance. Seven grounds of appeal were argued in the Supreme Court. Ground one — failure to accord procedural fairness — was said to arise because the Appeal Panel decided the matters on the papers, where the transcript of the proceedings was inadequate, in that much of the Appellant’s evidence was unable to be transcribed. However, although the Appellant’s written submissions had requested an oral hearing in the Appeal Panel Proceedings, nothing was said about the possible inadequacy of the transcript. Justice Button, in rejecting this ground of appeal, held (at [25]–[26]):

[25] In short, unassisted by submissions pointing to the asserted inadequacy of the transcript, I do not consider that it was incumbent upon the Appeal Panel, of its own motion, to determine that any characteristic of the transcript ultimately supplied meant that there was a necessity for an oral hearing.

[26] It is one thing to accept that the Appeal Panel should have considered any such submission if it had been made, and should have provided procedural fairness to [the Appellant] if it had done so; it is quite another to say that the Appeal Panel was called upon to consider such matters without the benefit of submissions.

Ground two — incorrect application of legislation and legal principle — was said to be founded upon ‘the failure of the Tribunal member to join parties and order reports from experts, and that that erroneous approach was thereafter affirmed by the Appeal Panel.’ Justice Button rejected this ground of appeal and held (at [31]––33]):

[31] Turning to my determination, in considering this ground it needs to be recalled that what needs to be identified by [the Appellant] are errors of law in the reasons for decision of the Appeal Panel, not an analysis of the reasons given at first instance.

[32] Bearing in mind that the proceedings before the Appeal Panel were the determination of errors of law said to have been committed at first instance, and the determination of whether leave should be granted with regard to errors of mixed fact and law said to have been committed at first instance, I consider that there needs to be a close focus by me upon the grounds of appeal actually mounted before the Appeal Panel.

[33] It is true that the reasons for decision of the Appeal Panel say nothing about the joinder of parties or the ordering of expert reports. But that is for the simple reason that no ground of appeal placed before the Appeal Panel contended that any such error had been committed by the Tribunal member.

Read the decision on the NSW Caselaw website.

Vega v Health Care Complaints Commission [2015] NSWSC 1927
10 December 2015 – Campbell J

The Plaintiff, a registered nurse, appealed to the Supreme Court (under ss 83 and 84 of the Civil and Administrative Tribunal Act 2013 (NSW)) from a decision of the Occupational Division of the Civil and Administrative Tribunal (the Tribunal Decision) and sought a stay of further proceedings in the Tribunal, pending disposition of his appeal. The Tribunal Decision found the Plaintiff guilty of unsatisfactory professional conduct and professional misconduct and, consequently, Stage 2 of the disciplinary proceedings (the imposition of protective orders) was underway in the Tribunal. In exercising the direction to grant a stay until the disposal of the Supreme Court appeal, Campbell J was guided by (at [8]):

two salient principles or considerations: the first being the Court should be satisfied the appeal is fairly arguable; and the second that the plaintiff is likely to suffer irreparable damage if the stay is not granted. This is sometimes expressed as the plaintiff needing to demonstrate that his right of appeal may be rendered nugatory if the stay is not granted.

In applying the ‘fairly arguable’ test, Campbell J stressed the importance bearing in mind ‘that the Court is in no position to make any final, or detailed, assessment of the appeal's prospects of success’ ([11]) and that ‘it is not possible to study, weigh and consider in any detail the reasons of the Tribunal’ ([12]). Justice Campbell found that the Plaintiff was likely to suffer irreparable damage if the stay was not granted because of (at [22])

his inability to advance proper argument before the Tribunal, especially his inability, because he maintains his innocence, to accept responsibility for his misconduct, is a most significant matter depriving him of the opportunity to mitigate the orders so far as they affect him personally. Given his livelihood is at stake, I consider that to be a significant matter.

Read the decision on the NSW Caselaw website.

Prothonotary of the Supreme Court of New South Wales v Dangerfield [2015] NSWSC 1895
14 December 2015 – Adams J

In this case, the Supreme Court considered the Local Court’s contempt of court provision (s 24 Local Court Act 2007 (NSW)), a provision very similar to the Civil and Administrative Tribunal’s contempt of court provision (s 73 Civil and Administrative Tribunal Act 2013 (NSW)). Faced with an apparent inconsistency between Killen v Lane and Maniam (No 1), Adams J held that the rule stated by Mahoney JA in Maniam (No 1) was applicable, given the judgment of Mahoney JA dealt with a provision ‘which reflects, in every relevant sense, that [provision] which governed … this case.’ Mahoney JA’s judgment included the following:

His Honour, in my opinion, followed a procedure appropriate in this Court for the exercise of the power given by s 203. It was proper that he first satisfy himself as to the appearance of contempt. There was no reason why he should not do this by detailing facts to the doctor and asking whether he disputed any of them.

It then was necessary for the judge to consider whether he would exercise the power to refer the matter to the Supreme Court. He was, in my opinion, in the circumstances of the present case under an obligation to give the doctor an opportunity to show why he should not do so. There is no precise procedure stipulated for this. It is in my opinion, at the least, not inappropriate that, if the doctor desired to show reasons why the power should not be exercised, he should be given the opportunity to do so by sworn evidence: it may be that, strictly, sworn evidence is the only or ordinary method of doing so. (Emphasis added)

Read the decision on the NSW Caselaw website.

The Owners – Strata Plan No 74602 v Brookfield Australia Investments Ltd [2015] NSWSC 1916
16 December 2015 – Stevenson J

This case provides a summary of the principles governing the remedy for defective building work, as set out by the High Court in Bellgrove v Eldridge [1954] HCA 36; 90 CLR 613 (see [38]–[40]) of Stevenson J’s judgment):

Assuming that each of loss and damage, breach and a relevant causal connection is established, Bellgrove v Eldridge is authority that the measure of damages for alleged defective work is the reasonable costs of rectification, and that:

the fundamental principle for damages is that the sum awarded should be such an amount as will put an injured party in the same position it would have been in if it had not sustained the injury or suffered the breach for which damages are claimed. As stated in Robinson v Harman (1848) 1 Exch 850 at 855; 154 ER 363 at 365, “where a party sustains a loss by reason of a breach of contract, he is, so far as money can do it, to be placed in the same situation, with respect to damages, as if the contract had been performed”;

in claims for building defects, the prima facie measure of damages is the “amount required to rectify the defects complained of and so give to [the plaintiff] the equivalent of a building on [his or her] land which is substantially in accordance with the contract” (at 617 per Dixon CJ, Webb and Taylor JJ);

the qualification to that general principle is that “not only must the work undertaken be necessary to produce conformity [with the contract], but that also, it must be a reasonable course to adopt” (at 618); and

it is a question of fact in each case as to what (if any) remedial work is “necessary” and “reasonable”.

In Tabcorp Holdings Ltd v Bowen Investments Pty Ltd [2009] HCA 8; 236 CLR 272, the High Court stated that the test of “unreasonableness” is only to be satisfied “by fairly exceptional circumstances”, for example where the innocent party was “merely using a technical breach to secure an uncovenanted profit” (at [17], citing Oliver J in Radford v De Froberville [1977] 1 WLR 1262).

Another circumstance in which “unreasonableness” may be established is where the cost of the “proposed rectification is out of all proportion to the benefit to be obtained” (Brewarrina Shire Council v Beckhaus Civil Pty Ltd [2006] NSWCA 361 at [82]-[88], citing South Parklands Hockey & Tennis Centre Inc v Brown Falconer Group Pty Ltd [2004] SASC 81 at 90; see also Wheeler v Ecroplot Pty Ltd [2010] NSWCA 61 per Macfarlan JA (with whom McColl and Basten JJA agreed) at [81]).

The decision also provides guidance on ss 18C, 18D(1) and 18D(1A) of the Home Building Act 1989 (NSW) (see [46]–[66]), including the finding that a developer is not a ‘non-contracting owner’ vis-à-vis its builders’ sub-contractors ([51]).

Read the decision on the NSW Caselaw website.

Symes v Mick Fabar Constructions Pty Ltd [2015] NSWSC 1922
16 December 2015 — Wilson J

The Court refused leave to appeal against an order made by the Appeal Panel of the Civil and Administrative Tribunal. The order dismissed the plaintiffs’ application for costs in their favour in relation to an appeal earlier heard by the Appeals Panel. The decision provides a summary of some of the factors relevant to the question of leave (at [11]–[12]):

[11] Ordinarily, an applicant for leave must demonstrate something more than that the primary decision maker was arguably wrong in the conclusion arrived at: Carolan v AMF Bowling Pty Limited [1995] NSWCA 69; Zelden v Sewell; Henamast Pty Ltd v Sewell [2011] NSWCA 56. Questions of finality are important, as are questions of proportionality, the latter of particular prominence here, where an issue as to costs before a Tribunal, proceedings before which are intended in part to restrain the costs of legal proceedings, could come to swamp the amount disputed in the original claim.

[12] As a general statement, it is appropriate to grant leave to appeal only where issues of principle or questions of general public importance are involved, or where there appears to be an injustice which is reasonably clear: Jaycar Pty Ltd v Lombardo [2011] NSWCA 284; Be Financial Pty Ltd as Trustee for Be Financial Operations Trust v Das [2012] NSWCA 164.

On the question of costs, the Court quoted, with approval, the Appeal Panel decision of Megerditchian v Kurmond Homes Pty Ltd [2014] NSWCATAP 120, where the Appeal Panel determined that familiar rule that costs follow the event does not apply to appeal proceedings (see [3]–[8] of Megerditchian and [36] of the Supreme Court judgment in Symes).

Read the decision on the NSW Caselaw website.

Tan v The Owners Strata Plan 22014 (No 2) [2015] NSWSC 1920
17 December 2015 — Robb J

This decision concerns the interests of justice exception to the proper plaintiff rule in Foss v Harbottle, which was held to apply to owners corporations created by the Strata Schemes Management Act 1996 (NSW) (SSM Act) in Carre v Owners Corporation – SP 53020 [2003] NSWSC 397; (2003) 58 NSWLR 302.

In Tan, the Owners Corporation argued that the interests of justice exception to the proper plaintiff rule did not apply, because there were other remedies to address the alleged wrong. These other remedies were ‘the availability of an application for judicial review by the plaintiffs in their own names, and an application by the plaintiffs to NCAT under s 190 of the SSM Act’ ([134]). Robb J indicated that a lot owner in a strata scheme under the SSM Act does have personal standing to seek an order in the nature of certiorari to quash orders made by NCAT, including in situations where there is an error of law on the face of the record (at [136]).

The Court considered the inter-relationship between NCAT and Supreme Court in the context of judicial review and an appeal, noting that:
  1. An application for judicial review would invoke the power of the Supreme Court under s 69 of the Supreme Court Act (see [138]);
  2. An appeal to the Supreme Court from NCAT orders would involve an application under s 83 of the Civil and Administrative Tribunal Act 2013 (NSW) (see [140]);
  3. ‘The effect of the court making an order in the nature of certiorari would be to quash the NCAT orders, and to revive the necessity for NCAT to redetermine the application before it in accordance with law’ (see [139]) and;
  4. ‘If the court gave leave, and the appeal was successful, the court could set aside NCAT’s decision, or vary it in an appropriate manner, and thus substitute its own decision for the decision of NCAT. While it would be available for this court to remit the case to be heard and decided again by NCAT, it is unlikely that it would do so. The effect of the appeal, whether successful or unsuccessful, would be finally to determine the dispute’ (see [141]).
Read the decision on the NSW Caselaw website.

NSW Civil and Administrative Tribunal, Level 9, 86-90 Goulburn Street, 2000, Sydney, Australia
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