Clarence City Council v Commonwealth of Australia [2022] FCA 1492

Federal Court of Australia

Clarence City Council v Commonwealth of Australia [2022] FCA 1492 File number(s): TAD 25 of 2018 TAD 27 of 2018

Judgment of: O'CALLAGHAN J

Date of judgment: 13 December 2022

Catchwords: DECLARATORY RELIEF – municipal councils seek declarations in respect of the interpretation and application of leases between Commonwealth and lessees of airports – where councils not party to the leases – where parties to leases agree that lessees have acted, and will continue to act, in accordance with their understanding of the relevant terms of the leases – whether on their proper construction leases created a positive/substantive obligation on the lessee to make payments to councils or only to use reasonable endeavours to enter into an agreement with them – meaning of "trading or financial operations" – whether areas identified by councils are areas on which "trading or financial operations" are undertaken within the meaning of leases – whether lessees required under leases 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 – where certain questions hypothetical – declaratory relief cannot be claimed as a way of answering a hypothetical question divorced from a real controversy which will produce no foreseeable consequences CONTRACTS – accord and satisfaction – estoppel

Legislation: Constitution ss 52, 52(i), 114 Airports Act 1996 (Cth) ss 5, 7, 141, 141(2), 143, 153 (repealed), 154 (repealed), 154(b) (repealed), 155, 155(1), 192 (repealed) Airports (Transitional) Act 1996 (Cth) ss 3, 22 Commonwealth Places (Application of Laws) Act 1970 (Cth) ss 3, 4(1) Competition and Consumer Act 2010 (Cth) Part IIIA Federal Airports Corporation Act 1986 (Cth) (repealed) ss 6, 7, 7(2)(a), 8, 8(1)(b), 56, 56(1), 56(2A), 56(9), 56(10) Federal Court of Australia Act 1976 (Cth) s 21 Parliamentary Privileges Act 1987 (Cth) ss 16, 16(2), 16(2)(a), 16(2)(b), 16(3) Prices Surveillance Act 1983 (Cth) (repealed) ss 20, 21, 27A Airports Regulations 1997 (Cth) regs 7.02A, 7.03, 7.03(1)(b) Federal Court Rules 2011 (Cth) rr 16.07, 16.07(1), 16.07(2) Land Valuation Act 1971 (Tas) (repealed) ss 3, 12, 12(1), 26, 26(1) Local Government Act 1993 (Tas) ss 86, 90, 123, 123(1) Valuation of Land Act 2001 (Tas) ss 3, 11, 11(1), 20, 20(1), 28, 28(1), 30, 30(4)(a), 30(4)(b), 45, 45(1), 51