Clarence City Council v Commonwealth of Australia [2020] FCAFC 134

FEDERAL COURT OF AUSTRALIA

Clarence City Council v Commonwealth of Australia [2020] FCAFC 134 Appeal from: Clarence City Council v Commonwealth of Australia [2019] FCA 1568

File numbers: TAD 35 of 2019 TAD 36 of 2019

Judges: JAGOT, KERR AND ANDERSON JJ

Date of judgment: 6 August 2020

Catchwords: HIGH COURT AND FEDERAL COURT – jurisdiction of the Federal Court – power to award declaratory relief – nature of a declaratory judgment – standing to seek declaratory relief – discretion to award declaratory relief – municipal councils seek declaration in respect of the interpretation and application of leases to which they are not a party – leases between Commonwealth and corporate lessees of airports – contractual mechanism for payment of rates, land tax and other taxes by lessees to councils – mechanism contemplates that councils will participate in, and derive benefits under, the leases – Commonwealth and lessees in agreement as to calculation of payments – councils dispute calculation of payments – whether councils have standing to seek declaratory relief – whether councils have a sufficient interest in declaratory relief – whether "matter" arises under laws made by Commonwealth Parliament CONSTITUTIONAL LAW – judicial power of the Commonwealth – requirement for a "matter" – whether there is a "matter" before the Court – whether there is a justiciable controversy – whether there is an enforceable right, duty or liability to found a "matter" CONTRACTS – doctrine of privity of contract – scope and effect – difference between executory and declaratory judgments – whether councils lack standing to seek declaratory relief because of inconsistency with doctrine of privity of contract – accord and satisfaction – estoppel Held: appeals allowed – notices of contention dismissed – a "matter" exists before the court – councils have standing to seek declaratory relief – councils have real commercial and practical interest in declaratory relief