Clarence City Council v Commonwealth of Australia [2024] FCAFC 8

Federal Court of Australia

Clarence City Council v Commonwealth of Australia [2024] FCAFC 8 Appeal from: Clarence City Council v Commonwealth of Australia [2022] FCA 1492

File number(s): TAD 3 of 2023 TAD 4 of 2023

Judgment of: MARKOVIC, STEWART AND ANDERSON JJ

Date of judgment: 15 February 2024

Catchwords: CONTRACTS – Appeal from orders of primary judge refusing Councils' application for declarations in respect of the construction of leases between Commonwealth and lessees of airports – where Councils not party to the leases –meaning of "trading or financial operations" in the leases – whether common user areas of terminal precincts in airports are areas on which "trading or financial operations" are undertaken – whether lessees required to make payments in accordance with valuations made by the Valuer-General pursuant to the Valuation of Land Act 2001 (Tas) and notified to them by the relevant council – appeal dismissed CONTRACTS – Lessees' notices of contention that leases did not create a positive obligation on the lessees to make rates equivalent payments to councils – whether leases only require lessees to use reasonable endeavours to enter into an agreement with the councils – where text, context and purpose of leases support construction of leases creating positive obligation to make rates equivalent payments

Legislation: Constitution ss 52, 114 Airports Act 1996 (Cth) ss 3, 31, 32, 141, 155 Airports (Transitional) Act 1996 (Cth) Federal Airports Corporation Act 1986 (Cth) (repealed) ss 6, 7, 56 Prices Surveillance Act 1983 (Cth) ss 20, 21, 37A Airports Regulations 1997 (Cth) reg 7.03 Land Valuation Act 1971 (Tas) (repealed) s 28 Local Government Act 1993 (Tas) Valuation of Land Act 2001 (Tas) s 90