Bruce Kerr Pty LTD v Gosford City Council [1988] NSWLEC 140
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Land and Environment Court
of New South Wales
CITATION : Bruce Kerr Pty LTD v Gosford City Council [1988] NSWLEC 140
APPLICANT
Bruce Kerr Pty Ltd
PARTIES :
RESPONDENT
Gosord City Council
FILE NUMBER(S) : 20451 of 1987
CORAM: Holland J
KEY ISSUES: :-
LEGISLATION CITED: Land and Environment Court 1979
Local Government Act 1919
Kogarats Municipal Council v. Kent (1981);
Strathfield Municipal Council v. Drew (1985);
CASES CITED: Jurkovic v. City Of Port Adelaide (1979);
Doran Developments Pty. Ltd v. Newcastle City Council (1985);
Brimbella v. Mosman Municipal Council (1985);
Parramatta City Council v. Peterson (1987)
DATES OF HEARING:
DATE OF JUDGMENT:
09/29/1988
APPLICANT
Donnellan
LEGAL REPRESENTATIVES: RESPONDENT
Mr McKenzie
JUDGMENT:
<P>HIS HONOUR: This is an appeal to the Court by Gosford City Council
(appellant) under s.56A of the <U><A
href="http://www.austlii.edu.au/au/legis/nsw/consol_act/laeca1979274/">Land and
Environment Court Act</U>, 1979</A>, against orders made by the Senior Assessor
on 2 March <A
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in a Class 2 application by Bruce Kerr Pty. Limited (respondent). The Council
claims that the Senior Assessor made certain errors of law in reaching his
decision.
<P>
<P>It is necessary to go back to an earlier application to the Court by Bruce
Kerr Pty. Limited
<P>
<P>That company had brought Class 1 proceedings in 1985 (No. 10291 of 1985)
pursuant to the <U><A
href="http://www.austlii.edu.au/au/legis/nsw/consol_act/epaaa1979389/">Environmental
Planning and Assessment Act</U>, 1979</A>, to appeal against certain conditions
attached to an approval given by the Council on 15 June 1984 in connection with
a proposed subdivision of land. Those proceedings were disposed of by an order
of the Court made on 28 August 1985 amending certain of the conditions.
<P>
<P>The company brought these present Class 2 proceedings on 2 September 1987
under s.341 of the <U>Local Government Act</U>, 1919, on the ground that the
Council had neglected and delayed to give within the statutory period a decision
with respect to an application for approval of plans lodged in connection with
the same proposed subdivision. They were heard by the Senior Assessor over a
period of six days in November 1987.
<P>The first question that arises on this appeal concerns the nature of the
application that was before the Senior Assessor.
<P>
<P>When the case was before him the Council contended that the application of
the respondent to which the Council had given its conditional approval on 15
June 1984 and to which, on appeal, the Court's order of 28 August 1985 amending
the conditions had been made was an application for approval of a subdivision
and that, consequently, the Council's and then the Court's conditional approvals
were approvals of a subdivision.
<P>
<P>One of the conditions of both approvals, to be more fully set out later, was
that minimum levels of filling of the allotments were to be 300mm. above the
calculated flood level "as approved by the City Engineer". In the proceedings
before the Senior Assessor it was claimed that the City Engineer had neglected
to make a decision with respect to the requisite approval to be given by him and
the Court was asked to give that approval.
<P>
<P>The Council contended before the Senior Assessor that, for the above reasons,
the application before him under Class 2 was incompetent and he had no
jurisdiction to entertain it, firstly, because, whilst it professed to be a
Class 2 appeal under Part XII of the <U>Local Government Act</U>, 1919, seeking
approval of a subdivision, it could not be so as such an application had already
been made and dealt with by both the Council and the Court and the right of
appeal was spent and, secondly, whilst it professed to seek approval of the
Court to proposed subdivision plans, it was really seeking to redress the City
Engineer's alleged neglect of duty to decide the matter for his approval and so
was in the nature of an application to the Court for a mandamus and that would
have to be a Class IV application beyond the Senior Assessor's jurisdiction. It
was also submitted that it was not open to the Court, whether by Assessor or
Judge, to usurp the function committed to the City Engineer by the condition in
question.
<P>
<P>The Senior Assessor rejected these submissions, holding that the approvals
given by the Council and the Court had been only development consents and that
the current appeal to the Court was against the Council's neglect to decide an
application for subdivision approval arising out of the Court's development
consent given by its order of 28 August 1985.
<P>
<P>Although the same grounds were repeated as grounds of appeal in the Notice of
Motion instituting the present appeal, those as to jurisdiction (Nos. 1, 2, 3, 4
and 7) were abandoned on the first day of the hearing. The Council changed
horses. Mr. Davison, for the Council, informed the Court that the Council
accepted the Senior Assessor's judgment that only a development consent had been
given by the Council on 15 June 1984 and the Court's order of 28 August 1985. He
said that the Council would proceed on the footing that only a development
consent came into force by the Court's order of that date.
<P>
<P>On that basis, the Council then sought to impugn the Senior Assessor's
judgment and order on the following main grounds:-
<P>
<P><B>1.</B> Certain plans furnished to the Council on 30 October 1987 showed
levels of fill on the subdivision proposed by those plans that were different
from levels shown on the plans lodged prior to the commencement of the
proceedings on 2 September 1987. The proceedings were based on neglect to give a
decision within 40 days prior to 2 September 1987; but the new plans, lodged
after that date, constituted a new application which required a decision by the
Council thereon or the lapse of 40 days before a valid appeal to the Court could
be made. The Senior Assessor treated the new plans as representing the
subdivision application for which approval was being sought and adopted them by
reference in the order that he made although they had been lodged with the
Council after the proceedings had commenced. He had, so it was argued, no
jurisdiction to do so.
<P>
<P><B>2.</B> The application for which approval was sought was not a valid
application for subdivision approval in that it failed to comply with the
requirements of Ordinance 32, cl.2(c)(vii), (viii) and ((ix)) which provide that
the plans shall show as follows:-
<P>
<P>(vii)the shape and approximate dimensions of each separate parcel in the
subdivision
<P>
<P>(viii) the existing and proposed means of access to each separate parcel.
<P>(ix) the amount of land proposed to be provided as a public reserve.
<P>
<P>Therefore, it was contended, the Senior Assessor had no jurisdiction to
approve it.
<P>
<P><B>3.</B> The order made by the Senior Assessor consented to a subdivision as
indicated in plans which fixed levels of fill without the approval of the City
Engineer as required by the condition of the development consent earlier
mentioned. It was submitted that it was not open to the Senior Assessor to
substitute his approval for that of the City Engineer and to purport to do so
was beyond his jurisdiction.
<P>
<P><B>4.</B> The Senior Assessor expressed the view that although a monetary
contribution for certain external works might properly have been required under
s.94 of the <U><A
href="http://www.austlii.edu.au/au/legis/nsw/consol_act/epaaa1979389/">Environmental
Planning and Assessment Act</U>,</A> 1979, at the development consent stage, the
Court had no jurisdiction to impose such a contribution as part of a subdivision
consent. It was submitted that this was an erroneous view of the law.
<P>
<P>Before dealing with the Senior Assessor's reasons and the parties'
submissions, it is convenient to refer to some of the background material that
was before the Senior Assessor.
<P>
<P>The original consent was by letter dated 15 June 1984 from the Council to the
respondent. I quote the relevant parts underlining some important words:-
<P>
<P>"<U>Development Application</U> No. 4676. <U>Proposed Subdivision</U> of Lot
2, D.P.539861, Lot 8, D.P. 512665, Land in D.P. 432634 and Lot 10, D.P.371447
Cowper and Neera Roads,
<U>Umina.________________________________________________</U>
<P>
<P>Dear Sirs,
<P>
<P>The above-mentioned <U>Development Application</U> was placed before the
Council at its meeting held on 12th June, 1984.
<P>
<P>I am pleased to advise that Council <U>approved the application for the
subdivision</U> of (re-describing the above land) into two hundred and fiftyfive
(255) allotments <U>in seven (7) stages plus public and drainage reserves</U>,
subject to the following conditions:-
<P>l.(a) Compliance with the terms of the <U>amended deed of agreement</U>.
<P>
<P>2. Submission of engineering plans for the following to be in accordance with
Council's specifications and approved by the City Engineer:-
<P>
<P>........
<P>
<P>(d) construction of water supply and sewerage mains.
<P>
<P>........
<P>
<P>3. Completion of construction in accordance with approved engineering plans
and specifications to incorporate:
<P>
<P>(a) the design details and method of construction of the subdivision, site
filling and other related matters be specified by an experienced Geotechnical
Engineer and verified by that Engineer before commencement of construction
<P>
<P>(b) subdivision works proceed in stages with differing design criteria being
adopted for filled areas and natural areas of the site.
<P>
<P>........
<P>
<P>11. Filling of all allotments to the Council's requirements. Minimum level to
be 300mm above the calculated flood level as approved by the City Engineer. All
fill to be graded to eliminate the ponding of water.
<P>
<P>14. On completion of the engineering works a Work as Executed plan shall be
submitted before the linen plans are certified....
<P>
<P>18. Submission of a final linen survey plan, together with any instrument
creating an easement and restriction as to user pursuant to Section 88B of the
<U>Conveyancing Act</U>.
<P>
<P>20. Dedication of the following parcels as public reserve:
<P>
<P>(a) Iluka Lagoon
<P>(b) 2000m<SUP>2</SUP> of land fronting Cowper Road extension
<P>(c) Land shown on the plan west of Neera Road (about 1.06 ha).
<P>(d) Land shown on the plan north of Myola Road (about 2.5 ha).
<P>22. Dedication of the land indicated on the plan as Drainage Reserve.
<P>
<P>.........."
<P>
<P>The plan of subdivision to which the above consent applied and referred was
identified by its having been stamped with Council's official approval stamp as
"Development Application No. 4676". It was signed and dated 15 June 1984. As to
the requirements of Ordinance 32, cl.2(c)(vii), (viii) and (ix), the plan would
appear to comply in every respect and the contrary was not argued by counsel for
the appellant. It contains notations which must be taken to have been approved.
Note 5 reads "The project is to be stage developed".
<P>
<P>In the proceedings before the Court in No. 10291 of 1985 the respondent's
development application and the abovementioned consent and stamped plan were
annexed to the application. The development application, although on a form
describing it as an application for development consent, described the
development proposed as a subdivision of the land into 255 lots. The Court's
order amending certain of the conditions (which did not include any quoted
above) began with the words, "The development consent dated 15 June 1985 be
confirmed with the following amendments to the conditions therein:"
<P>
<P>In dealing with the objections to jurisdiction made to him as to the nature
of the application, the Senior Assessor said at p.3 of his judgment:-
<P>
<P>"I find the arguments raised by the applicant more acceptable than those of
the respondent. Thus in relation to this initial hurdle, I have concluded that
the Court does have power to deal with this matter in Class II of its
jurisdiction in that, whether it was the intention of the Council or otherwise,
a development consent together with a subdivision consent did not issue in the
first instance: Certainly this was not provided for in the consent issued by the
Court in 1985. Thus I am satisfied that a development consent only was issued
with the intention to have the applicant seek subdivision approval on a
progressive basis in relation to the various stages of the Development Consent."
<P>
<P>The above finding is not now challenged but is, as indicated above, accepted
by the Council.
<P>The appellant's objections as to form were directed at the plans furnished to
the Council on 30 October 1987 which, it was said, were adopted by the Senior
Assessor as representing the application he had to decide and as indicating the
subdivision to which the Court's approval was given. Those plans were admitted
and referred to as Exhibit 4 before the Senior Assessor.
<P>
<P>On the question of form the Senior Assessor said, at p.3:-
<P>"In regard to the respondent's submission that, if the application before the
Court is indeed an application under Part XII A (sic) of the Local Government
Act, then it fails to comply with cl. 2 of Ordinance 32, again I am not disposed
to accept the arguments put. I believe it is clear enough from the documents
provided to the Court, in various exhibits, that in relation to the first stage
of the development there is sufficient information provided in relation to:
<P>
<P>* The shape and approximate dimension of each separate parcel in the portion
of the subdivision sought to be approved.
<P>
<P>* The existing and proposed means of access to each separate parcel.
<P>
<P>* The amount of land proposed to be provided as public reserve.
<P>
<P>* The residue of the subdivision subject to development consent has been
shown separately."
<P>
<P>In my opinion, the Senior Assessor made no error of law in arriving at that
conclusion having regard to the history of the case and the conduct of the
parties in the litigation.
<P>
<P>The record of the proceedings shows that there was lodged with the
application before the Senior Assessor a large number of plans, drawings and
documents which had been furnished to the Council long before the proceedings
were commenced. They were lodged upon the footing that the overall plan of
subdivision, a plan fully complying with Ordinance 32, had been lodged as the
original development application, had been approved by the Council in 1984 and
adopted by the Court in 1985.
<P>
<P>The approval which then subsisted sanctioned expressly the carrying out of
the subdivision in 7 stages. The intention was, as the Senior Assessor said, "to
have the applicant seek subdivision approval on a progressive basis in relation
to the various stages of the Development Consent".
<P>
<P>As the conditions indicate, engineering plans for works overall and works in
various stages had to be submitted for approval. Some of these had been
submitted and approved and, in fact, sewerage and water supply works had been
both approved and carried out. Specialist reports had been furnished to the
Council, including, in 1984, a hydrographic study (to enable the Council to
determine the flood level for 1 in 100 year return frequency and from that to
approve the fill levels in the area of the subdivision) and, in June 1986, a
Major Drainage Strategy Study by a firm of Consulting Engineers. There was
evidence that the Council's policy was to adopt the 1 in 100 year flood level
for residential development with the result that for the subdivision in question
the level of filling would be 300mm above that level.
<P>
<P>Then in 1986, in or after August of that year, a plan and comprehensive set
of drawings and reports were submitted for approval. The date August 1986 comes
from the plan and drawings No. 8622 a copy of which appears in Ex. 4. A Memo.
between Council officers dated 18 August 1987, which was Ex. 8 before the
Assessor and Ex. 5 before me, indicates that the plan, drawings and reports were
submitted to the Council for approval in October 1986.
<P>
<P>The cover sheet for this plan and drawings was labelled "Land Subdivision at
Umina Beach" and listed the same parcels of land as in the development consent.
<P>
<P>The plan No. 8622 was labelled "Project. Proposed Residential subdivision
Stages 1 & 2". It showed a readily identifiable section of the total plan of
subdivision in the plan stamped with the Council's Development Consent on 15
June 1984 to which I have already referred. The section shown contained the
layout of lots and roads and proposed finished contour levels. It contained the
notation "l:l00 year Flood Level RL3.7". The accompanying drawings showed
engineering detail of road and drainage works to be carried out in that section.
<P>
<P>In the above Memo. of 18 August 1987 between Council officers there appears
the following:-
<P>"(d) <U>Request for Extension of Time</U>
<P>
<P>The subdivision approval issued by the Land and Environment Court will expire
on the 28 August 1987 and the developer has requested an extension of time for
two (2) years under Section 335 of the Environmental Planning and Assessment Act
outlining the following:-
<P>
<P>"i) Engineering plans for the construction of roads and drainage submitted to
the City in October 1986 have not been released to me. Although Council's
engineering staff have indicated that they are satisfactory.
<P>
<P>ii) Engineering calculations and reports concerning downstream drainage and
flood levels submitted in October 1986 to assist Council to determine the height
of filling have not resulted in a determination.
<P>
<P>iii) Engineering plans and specification required to be submitted to other
authorities have been delayed in transmission and decision beyond my control."
<P>
<P>The internal engineering roadwork plans for the subdivision as submitted in
October 1986 are satisfactory but release of these plans is dependent upon final
levels being set as a result of the assessment of drainage options.
<P>
<P>It is current practice to grant a one year extension of time to developments
after the submission of satisfactory reasons. Because of the circumstance
outlined above there is no objection to an extension of time until 28 August <A
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name=disp4><IMG alt="<<" border=0
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<P>
<P>There was other material also before the Senior Assessor but, in my opinion,
the foregoing was enough for him to found a conclusion that all information
necessary to satisfy Ordinance 32, cl.2 was before the Council at the time the
approval for the original plans contained in Ex. 4 was sought in October 1986.
To the extent that it was not in the Stage 1 and 2 section plan and drawings, it
was already in the original subdivisional plans approved by the Council in 1984
and the material subsequently furnished to the Council in furtherance of the
subdivision project up to October 1986.
<P>
<P>Apart from there having been evidence before him to support his finding on
this matter, it was, in my opinion, not open to the Council before the Senior
Assessor or before the Court on this appeal to contend that there were
deficiencies in the forms required by Ordinance 32. Until the hearing of this
appeal it was the Council's position that subdivision approval had already been
granted for the whole of the land of which that shown in the plan in Ex. 4 was a
part being a section consisting of two stages of the overall plan. The Council's
contentions before the Senior Assessor were that such subdivision approval had
been granted and was subsisting. The subdivision approval which the Council
claimed had been given contemplated and approved development in stages and
called for subsequent submissions of plans and detail for each stage being
proceeded with. It was totally unnecessary for the purposes of the Act,
Ordinance 32 and due consideration to be given to a stage proposal in the
present case for the plans originally approved as subdivisional plans to be
resubmitted. It is apparent from the Memo. of 18 August 1987 that the original
approved plans were sufficient for dealing with the plans for which approval was
sought in October 1986. There was no evidence that the Council ever called for
or needed any fresh plan of subdivision. In my opinion the Council is estopped
by its conduct both before and at the hearing before the Senior Assessor from
asserting that the application before the Senior Assessor, treated as an
application for subdivision approval, was invalid for failing to comply with
Ordinance 32.
<P>
<P>The Council argued incidentally that the application as represented by the
plan in Ex. 4 was invalid because the plan did not show as a separate lot the
whole of the remainder of the subject land not the subject of the stage
development. It was contended that without this the plan could not be registered
even if approved. In the circumstances here, it was not essential for the
residue to be shown by the plan in Ex. 4 when the residue was already able to be
established from the earlier approved plan. It would be sufficient to show it in
the linen plan when presented for the Town Clerk's certificate under s.327 of
the <U>Local Government Act</U>. Moreover, conditions 14 and 18 of the
development consent contemplated that a "Work as Executed" plan would be
submitted before submission of a "final linen survey plan" and that the plan
last mentioned would complete the procedure. There is therefore no basis for
saying that the Senior Assessor was in error for treating the Ex. 4 plan as
valid when it failed to show the residue of the land as a separate lot.
<P>It was also argued that the plan in Ex. 4 was deficient for not showing how
the residue was to be dealt with, what access was proposed to and through the
residue and what land was designated for public reserves. The proposals in all
these respects were indicated on the earlier plans to which I have referred. No
public reserves were proposed within the Ex. 4 area. Those proposed for the
whole subdivision were in other parts of the land and were shown in the original
plan approved. The argument really is that to form the basis for a valid
approval of the subdivision of land the plan submitted for approval must always
be in all respects complete within itself and cover the whole area to be
eventually subdivided even if approval is being sought for but one stage of a
multi-stage development. In my opinion, the question is whether the Council had
been furnished with all the plans, information and other material required by
law and necessary for a proper decision finally to be made in respect to a
proposed subdivision of a particular parcel of land and it is not essential, at
least before the linen plan is lodged, for everything to be in one plan or
document. Therefore, I reject these criticisms of the Senior Assessor's
judgment.
<P>
<P>In so far as it was sought to rely on the plans approved or the terms of and
conditions imposed by the development consent granted by the Court on 28 August
1985, counsel for the appellant argued that the respondent had to show that that
consent was subsisting and had not elapsed by effluxion of time on 28 August
1987: s.99 <U><A
href="http://www.austlii.edu.au/au/legis/nsw/consol_act/epaaa1979389/">Environmental
Planning and Assessment Act</U>, 1979</A>. It was submitted that the respondent
had failed to establish that before the Senior Assessor.
<P>
<P>The point had been taken before the Senior Assessor and in the Grounds of
Appeal here: ground 4. It was abandoned at the outset of the appeal but
resurrected to counter arguments by the respondent that looked for support to
the existence of the development consent.
<P>
<P>The Senior Assessor rejected the appellant's contention in his judgment (at
p.4) as follows:-
<P>
<P>"With regard to the final submission made by the respondent, that there is
not a current development consent, I find this impossible to sustain because it
appears that, since the development consent was granted, work has been
undertaken on the site associated with installation of services and roads and
further this has been on the basis of detailed engineering drawings earlier
approved by the Council."
<P>
<P>The only error of law suggested in regard to this finding was that there was
insufficient evidence to justify it.
<P>
<P>In my opinion that is not so. There was evidence from an officer of the
Council that, subsequently to and in pursuance of the development consent, the
respondent had applied for and been given approvals by the Council of plans for
sewerage and water supply works in the proposed subdivision including the type
of filling to be used in connection therewith (Transcript 6 November 1987, pp.7,
16). A witness called by the Council who lived in the vicinity was lead to give
evidence in chief of works carried out by the respondent in filling the northern
part of a swamp area in the subdivision over a period of 6 to 8 months prior to
his giving evidence. That would be March to May 1987. He also gave evidence that
there had been intensive filling works carried out from early to mid 1987 on the
northern, southern and eastern perimeters of the area and he produced
photographs in support which the Council tendered (Transcript 9 November 1987,
p.3). A Consulting Engineer called by the respondent commented upon the works
referred to in the evidence last mentioned and shown in the photographs and
explained their nature and purpose (Transcript 10 November 1987, p.11). He also
referred in his evidence to filling placed in connection with the sewerage and
water supply approvals (Transcript 10 November 1987, p.13) and said that a
considerable amount of money had been spent by the respondent on the sewerage
works approved by the Council (Transcript 1987, p.28). He was not cross-examined
on that evidence and it was not challenged by any evidence adduced by the
Council.
<P>
<P>At the very end of the hearing before the Senior Assessor there was a
discussion between the solicitors appearing then for the parties and the Senior
Assessor as to what point the Council was really seeking to make in some written
submissions on the matter, the solicitor for the respondent remarking that the
Council had not raised the question throughout its case and that if it was to be
pressed as an issue he was in a position to adduce a great deal more evidence as
to the works already carried out by the respondent pursuant to the development
consent. The solicitor for the Council then explained that the only reason he
raised the question was that he could not recall the works done having been
related by the evidence to the development consent in question. He suggested
that they might have been done pursuant to the deed referred to in condition
1(a) of the development consent (quoted above) or to an earlier development
consent that was given in 1974. (The deed and an amending deed are in evidence
on this Appeal and are dated 18 December 1972 and 1981 respectively).
<P>
<P>The following passages appear in the transcript (25 November 1987, pp.6-7):-
<P>
<P>"<U>DONNELLAN</U>: Yes I do remember my learned friend putting that and my
recollection about this and the reason that I put the point in the submissions
was that I do not remember him associating the works which were referred to with
a particular development consent upon which this subdivision consent follows.
<P>
<P><U>SENIOR ASSESSOR</U>: But there is only one DA, is there not? I mean that's
common ground isn't it that whether the applicant says it's a DA without a
subdivision or the council says it's a DA with a subdivision and then this other
argument becomes an element of the subdivision there was no argument that it was
the DA we were dealing with in the argument about the conditions.
<P>
<P><U>DONNELLAN</U>: Yes but the question which I think was not cleared up was
whether the filling was done pursuant to the deeds which are in evidence and to
the development consent that was given in 1974 or whether the works were done
pursuant to the development consent which was given in 1984-1985, that was the
point of my submission there that there was no attachment of the works which
were quite plainly done to a particular development consent and it's the
question of which development consent this subdivision hangs upon. I will say
this Mr. Senior Assessor that I do not put that forward as the strongest point
of my arguments.
<P>
<P><U>SENIOR ASSESSOR</U>: That helps me somewhat, I think in reality it's
something that I am just going to have to deal with as an issue and I suppose
that will mean inevitably that it represents an appellable issue in that it has
been raised by both of you and as well as you can dispose of. I think I shall
just have to grapple with it and take it on board.
<P>
<P><U>DONNELLAN</U>: Well the thing that one is Mr. Senior Assessor that I think
it depends on what you find the facts were to be that were given and I certainly
don't dispute that my learned friend did advance some evidence that there were
substantial works done, I don't deny that for a minute and point no. 6 really
has a very narrow compass indeed, it's just a question of whether the works that
were done were attached to the development consent upon which he relies and of
course one of the difficulties that we face in formulating these is that to a
large extent we do have to rely on our memory not having the benefit of the
transcript and as I say Mr. Senior Assessor it's not the strongest point of my
case and I don't put it forward as such, I put it forward to cover the point.
<P>
<P><U>SENIOR ASSESSOR</U>: I certainly won't be getting a transcript I rely on
and it's almost every instance and notes and my recollection as I say it seems
to me I will just have to dispose of this particular issue as one of the many
issues in the matter."
<P>
<P>In my opinion the evidence I have mentioned amply supports a conclusion that
the works in question had been carried out in pursuance of the development
consent granted by the Court in August 1985 and within the period of two years
allowed by s.99(2)(a). There being evidence before him on which the Senior
Assessor could find as he did and conclude that the development consent was
subsisting at the relevant time, the Council's contention on this matter must be
rejected.
<P>
<P>Turning to the ground of appeal that I listed above as the first ground,
namely, that the plans furnished to Council on 30 October 1987 and adopted by
the Senior Assessor constituted a fresh application made after the proceedings
began, the judgment appealed from contains the following, at pp.3-4:-
<P>
<P>"Secondly, in relation to the respondent's contention that the plans
originally submitted to the Council have been substituted by plans that are so
significantly different, in terms of flood plain level, that they should
constitute a fresh application, again I do not accept this submission. It seems
clear enough that the particular level at which the 1 in 100 year flood was
anticipated to occur, was contemplated as being included in the drawings
associated with the individual stages of development."
<P>
<P>When the course of the proceedings is examined, the appeal in relation to
this finding is, I think, untenable.
<P>
<P>I have already mentioned that there was lodged with the application that came
before the Senior Assessor a large number of plans, drawings and documents which
had been furnished to the Council before the proceedings were commenced,
including the plan and drawings submitted in October 1986 a copy of the original
of which is in Ex. 4. I mentioned that in the original the relevant flood level
was noted as "R.L.3.7". The only difference from the original print is that in
the documents in Ex. 4 there is hand marked and noted in red a number of
amendments. The cover sheet is marked in red, "Notations Amended 30.10.87".
<P>
<P>The principal amendments appear on sheet 1b of plan No. 8622 which is a plan
of finished contour levels. It has a notation column in which notes in red have
been added as follows:-
<P>
<P>"R.L.4.35 adopted as l : 100 yr Flood Level at Existing Conditions".
<P>
<P>"Raise All Design Or Finished Levels O.5M. Except Where Indicated 'Hold'.
Regrade On Site Where Indicated".
<P>
<P>This last note appears under a note that was added in black: "29.10.87
Contours Amended".
<P>
<P>On the contour plan there are notes in red at various places reading "Hold"
or "Regrade". Corresponding notes in red appear at appropriate places throughout
the rest of the drawings, generally in the form: "Raise all design levels O.5M".
<P>
<P>The explanation for and origin of Ex. 4 emerged clearly in the course of the
proceedings.
<P>
<P>Condition 11 of the development consent required all allotments to be filled
to a minimum level of 300mm above the calculated flood level. The calculated
flood level was expected to be that for a 1 in 100 year flood frequency. That
had been established and was the subject of studies and reports earlier
furnished to the Council. The Council had adopted the 1 in 100 year flood as its
standard in approving fill levels for residential land.
<P>
<P>The levels of the allotments in the subdivision required to protect them from
risks of flooding in the area depended in part on conditions external to the
subject site. In the Memo of 18 August 1987 the implications of Condition 11
were referred to and I quote part of what was written there:-
<P>"Council's current policy is to adopt the 1 in 100 year flood level for
residential development. Thus the level of filling required for this subdivision
would be the 1 in 100 year level plus 300 mm. Naturally the 1 in 100 year flood
level is effected by the hydraulic characteristics of the downstream drainage
systems. In this case, the size and shape of the existing open channels and the
man-made drainage structures.
<P>
<P>Therefore the developer has two options to determine the fill level:-
<P>
<P><U>Option 1</U>: Calculate the 1 in 100 year level based on existing
conditions.
<P>
<P><U>Option 2</U>: Improve the downstream natural and man-made structures hence
increase the stormwater discharge and thus lower the 1 in 100 year calculated
level."
<P>
<P>The downstream works to improve the existing drainage system and thus lower
the fill level involved engineering works in the improvement or construction of
drainage channels and the construction of a new bridge over Mt. Ettalong Road.
In preparing the original plans that were lodged in October 1986, the printed
originals in Ex. 4, it was assumed that it was intended by the Council that such
works would be carried out and hence the fill levels could be lower. Accordingly
the level "RL.3.7" was proposed. Then followed protracted delay on the part of
the Council with no decision on the matter, indeed, a virtual standstill which
led to the commencement of these present proceedings.
<P>
<P>Thus, as commenced, and throughout, the applicant in the proceedings before
the Senior Assessor sought a decision of the Court to break a stalemate. The
level "RL.3.7" was simply a proposal for approval; but it was based upon an
assumption that might or might not become a reality. Accordingly, the applicant,
for illustrative purposes for use at the hearing, took another set of plans
identical with the originals, and marked them with the levels (i.e. "RL.4.35)
which the applicant would propose as appropriate if the original assumption was
false and the existing conditions downstream and external from the site remained
the same. A copy of these was furnished to the Council on 30 October 1987 before
the hearing commenced.
<P>
<P>At the hearing it emerged that, for reasons not material on this appeal, the
Council had no plans, intentions or funds allocated to carry out the downstream
works, which meant, in effect that, if an approval were to be given to stages 1
and 2 as sought by the applicant, it would have to be on the basis of the
existing conditions external to the site. The plan with the notations in red
thus conveniently represented for the Court the applicant's view as to the
appropriate fill levels on that basis but otherwise remained identical with the
plans in the original application. Indeed, the applicant's proposal as to fill
levels if the status quo was to remain could have been put by reference to the
original plan and by oral evidence and submissions as to the higher levels
suggested by the applicant's experts. Ex. 4 was an instrument of convenience, no
more, and in no relevant sense was it a fresh application as the Council
contended.
<P>
<P>Moreover, it is, in my opinion, not open to the Council to object to the use
of Ex. 4 for the purposes of the proceedings or to contend that it constituted a
fresh application which the Senior Assessor had no jurisdiction to entertain,
because its tender and admission into evidence was made and procured by the
Council itself, as the following extracts from the transcript of the hearing on
5 November 1987 at pp.25 to 28 demonstrate:-
<P>
<P>"<U>GOOLEY</U>: A: 14, the levels of fill, roadworks and drainage within the
subdivision depicted in the engineering plan submitted by the respondent are
predicated upon the proposed drainage works being carried out as also shown in
the engineering plans in Etymalong Creek and upon the construction of a new
bridge also depicted over Mt. Ettalong Road. I think that should say: over
Ettalong Creek, there.
<P>
<P>Q: Now, the plans to which you are referring, or the engineering plans to
which you are referring were which plans in relation to those that have been put
before you? A: Well, they are the---
<P>
<P>Q: Are they the June, 1984 plans or the---
<P>
<P>A: They were the June 1984 plans or the plans - I don't think they were
actually submitted in June 1984 I think they were around about 1986 that's when
the plans were submitted.
<P>
<P><U>McKENZIE</U>: Q: Now as I understand it you don't have a complete set of
those plans? A: There is not a full set there at the moment no, but they are
similar to the latest plans we have got only for the discrepancy in levels.
<P>
<P><U>McKENZIE</U>: Mr. Assessor the set that you had, and I don't know what it
is yet but I did notice when the witness was looking at it there were no red
annotations on it, so it would probably be more convenient for the court to have
the one which has the red in it rather than working from a photostat of it.
<P>
<P><U>SENIOR ASSESSOR</U>: I really rather that be taken away if it is confusing
as compared with what we are now working from.
<P>
<P><U>McKENZIE</U>: I would seek to tender the set that is amended in red and
has been identified by the witness
<P>
<P><U>RIGG</U>: No objection.
<P>
<P><U>TENDERED, ADMITTED AND MARKED EXHIBIT 4 - PLANS</U>
<P>
<P><U>McKENZIE</U>: Q: May the witness be shown exhibit 4 again?
<P>
<P><U>SENIOR ASSESSOR</U>: Just in terms of the witness's last response, I
wonder if by any chance the levels that he has referred to happen to be
coincident with the levels that the applicant is seeking, it would materially
shorten the proceedings if that happened to be the case?
<P>
<P><U>McKENZIE</U>: By agreement of the parties exhibit 4 shows what the
applicant is seeking. So the red annotations will indicate--
<P>
<P><U>SENIOR ASSESSOR</U>: Represent some difference between that and what the
Council's engineers saw as coming from the study?
<P>
<P><U>McKENZIE</U>: Yes."
<P>(The witness, Mr. Gooley, is the Council's strategic engineering manager. Mr.
McKenzie of the bar appeared for the Council).
<P>
<P>In his judgment, at pp.6 to 7, the Senior Assessor referred to the matter
thus:-
<P>
<P>"Mr. Gooley goes on to point out that the levels of fill, roadworks and
drainage suggested by the applicant in his subdivision engineering drawings are
predicated upon the construction of engineering works in Ettymalong Creek
downstream and of the new bridge over Mount Ettalong Road.
<P>
<P>In response to questions Mr. Gooley indicated that further engineering
drawings had been submitted to Council shortly before the commencement of the
case and these had been annotated in red to indicate relative levels of finished
works which, as he put it "appeared to be generally consistent with the
direction in which the Council was heading based on the consultants
recommendations". In this context he indicated that the concern Council held was
that the Ettalong swamp acted as a retention pond in relation to flood waters.
<P>
<P>It should be noted here that drawings referred to, annotated with R.L.s in
red, were substituted in Court at the request of the respondent and have been
referred to as Exhibit 4 throughout this determination."
<P>
<P>I can find no error of law in the manner in which the Senior Assessor dealt
with Ex. 4 and I reject the proposition that Ex. 4 amounted to a fresh
application made after the commencement of the proceedings.
<P>Coming to the third main ground of appeal, that the Senior Assessor purported
to substitute his approval for the City Engineer's that was required by
Condition 11 and had no power to do so, it is necessary to quote from the Senior
Assessor's judgment to show how he approached the matter:-
<P>
<P>"Further Mr. Donnellan says, that in seeking to force the Council to
undertake the duty imposed upon itself by cl. 11 of the consent, this represents
a matter more properly dealt under Class IV of the Court's jurisdiction, by way
of an application for a writ of Mandamus. Again I would only be prepared to
accept this submission if it had been demonstrated that the more recent
documentation provided by the applicant constituted a detailed amplification of
an earlier consent involving both subdivision and development. As earlier
stated, I am persuaded that what was ultimately provided by the Council was a
development consent alone: What has more recently been presented to the Council
represents a subdivisional application for a stage of the ultimate development.
In this respect it is apparent that the necessary analytical work to establish
the 1 in 100 year flood level has been undertaken by the applicant. Further he
has made the assumption that it should have been possible for the Council to
accept that the level proposed by the applicant was an appropriate response to
the terms of cl. 11. In the event the Council did not." (pp.9-10)
<P>
<P>"Finally in relation to the terms of Condition 11, Mr. Donnellan says, that
at the end of the day, the Court is placed in the same position as the Shire
Engineer in that it needs to be satisfied that the level as proposed by the
applicant, for the one in one hundred year flood event is correctly established.
Ultimately the Court has to make a relative judgement as to the probable level
of impact of flood waters on the surrounding residential area." (p.10)
<P>
<P>"<B>CONCLUSIONS</B>
<P>
<P>From the outset this matter was made more complex by the respondents claim
that the Court had no power to deal with the matter in Class II of its
jurisdiction: Rather it was a question to be resolved through a Class IV action
involving Mandamus and the Council's responsibility to establish a flood level
associated with a 1 in 100 year flood. By contrast the applicant has sought to
disassociate the subdivision application from the terms of the development
consent and, in particular, cl. 11, dealing with the approval of the City
Engineer of a 1 in 100 year flood level.
<P>
<P>....
<P>
<P>In the ultimate I have concluded that while indeed the Court has before it a
subdivision application which responds to the earlier consented to development
consent, contrary to the submission of Mr. Rigg such a subdivision necessarily
must satisfy the provisions of cl. 11 of the condition of development consent.
That is to say the proposed subdivision must incorporate a filling level which
lies 300 mm above the calculated flood level and as approved by the City
Engineer. The question then becomes whether the Court is entitled to substitute
its approval for that of the City Engineer when he has failed to carry out a
necessary step in terms of the approval of the subdivision application. It seems
to me in this regard that cl. 39(2) of the Land and Environment Court Act has
very deliberately thrown a broad net in terms of what the Court may do, standing
in the shoes of a Council. In part this clause says:-
<P>
<P>'The Court shall for the purposes of hearing and disposing of an appeal, have
all the functions and discretions, which the person or body whose decision is
the subject of the appeal had in respect of the matter the subject of the
appeal.'
<P>
<P>On the basis of this it seems to me that the failure of the Engineer to act
is inevitably a failure of his Council to carry out a self imposed obligation
and a necessary part of dealing with the subdivision application. Clearly no
relevant action occurred: Rather a protracted negotiation has been carried out
between the applicant and the respondent which appears, at least on the face of
it, to derive from the respondent's attempt to have generalised problem of
nuisance flooding solved in the vicinity of the subject land." (pp.17-18)
<P>
<P>For the Council it was contended that s.39(2) of the <U>Land and Environment
Court Act</U>, 1979 vested power in the Court to act as the Council only in so
far as it was necessary to hear and dispose of the appeal in question and then
to exercise for that purpose only the functions and discretions the Council had
in respect of the subject matter of the appeal: See <U>Kogarah Municipal Council
v. Kent</U> (1981) 46 L.G.R.A. 334; <U>Strathfield Municipal Council v. Drew</U>
(1985) 1 N.S.W.L.R. 338.
<P>
<P>It was submitted that, in relation to Condition 11 of the development
consent, the Council's functions and discretions had already been exercised and
later endorsed by the Court's own order in 1985, they had been exercised by
designating the City Engineer as the arbiter of the levels of filling so that
from then on approval of the levels was his function and discretion, not the
Council's, and, therefore, not the Court's under s.39(2).
<P>
<P>For the respondent it was contended, firstly, that in relation to the
subdivision application that was before the Senior Assessor, Condition 11 was
material only in so far as it fixed the minimum level of filling because the
City Engineer's only function under that condition was to decide upon the flood
level probability factor, that is, whether the flood level chosen would be for a
flood with a calculated return frequency of once in 100 years or some other.
From the data already established, known and available, the level of the fill to
be above that flood level followed automatically and, for the purposes of the
subdivision, could be any height above that flood level provided it was a
minimum of 300mm. It was submitted that, as Ex. 5 (earlier quoted) showed, the
City Engineer and the Council had already approved and adopted the flood level
of one in 100 years as appropriate for residential subdivisions which left only
one question, namely, what level of fill, having regard to conditions presently
existing in the subdivision and surrounding areas, will be at least 300mm above
that flood level. As the answer is something that automatically follows and
merely needs to be set down on paper as a specification for the filling
contractor to work to, there was nothing for the City Engineer to "approve" in
any relevant sense.
<P>
<P>Secondly, it was submitted that the Council had, in effect, used Condition 11
for the ulterior purpose of avoiding a situation where, if works to improve
downstream drainage, which the Council itself did not wish to carry out, were
not carried out by the developer, they or other flood prevention works might
have to be carried out by the Council because of the possibility of some
increased downstream flooding resulting from filling and other works carried out
on the subdivision area. The Council had, it was suggested, used the apparent,
but not real, need for the City Engineer's "approval" of the plans in question
as a convenient excuse for delaying and stalling the progress of the proposed
subdivision because there was no reason, apart from deliberate abstention by the
City Engineer, not to decide and specify the appropriate fill levels for the
works proposed.
<P>
<P>In the course of answering the accusations of delay by the Council, its
solicitor referred to the City Engineer's position (at pp.63-64) of the
transcript for 11 November 1987) as follows:-
<P>
<P>"The other point which I wish to make Mr. Senior Assessor is in relation to
condition 11 my learned friend made some play of the fact that it was the city
engineer who was obliged to calculate the flood level. Now, he's not obliged to
calculate it, he's only obliged to approve it and the calculation of the flood
level may be something which he is required to do in order that he might
reasonably give an approval but that condition does not oblige him to calculate
it, it obliges him to approve it and that is essentially what he has been
refusing to do.
<P>
<P><U>SENIOR ASSESSOR</U>: I presume from that submission the court is in the
same position as the council's city engineer? It equally could decide to approve
a calculated flood level?
<P>
<P><U>DONNELLAN</U>: Yes, I think that is probably correct but it would have to
be on the basis on the reasonableness of the level as put. Maybe calculating it
and approving it amount to the same thing, Mr. Senior Assessor. I have no
further submissions thank you."
<P>
<P>Thirdly, the respondent relies on the concession by Mr. Donnellan at the end
of the above passage that the Court is in the same position as the Council for
submitting that the Council ought not be allowed now to resile from that
position and, fourthly, it was submitted that, in any event, the Council must
bear the ultimate responsibility for the purposes of s.341 of the <U>Local
Government Act</U> of neglect by an officer of the Council to make a decision
deputised to him to make in relation to an application for consent to subdivide
land.
<P>
<P>The parties were not able to refer me to any authority on the point. The
cases cited above do not deal with the present question. However, I think that
the answer lies in a consideration of the relative positions of the Council, its
officers and applicants. It is the Council that is charged with the authority
and the responsibility to decide development applications: <U><A
href="http://www.austlii.edu.au/au/legis/nsw/consol_act/epaaa1979389/">Environmental
Planning and Assessment Act</U>, 1979</A>, ss.77(3), 91(1); and subdivision
applications: <U>Local Government Act</U>, 1919, ss.323(1), 331(1)(2); so it
follows that applicants are entitled, in the end, to look to Councils for the
performance of that responsibility. A Council's officers are its servants and
agents in dealing with such matters. Even where functions of the Council have
been delegated to them and their acts within the scope of the delegation are to
be deemed those of the Council, the Council remains free to exercise all or any
of the delegated functions itself: <U>EPA Act</U>, s.151(7); <U>Local Government
Act</U>, s.530A(8); and, of course, to revoke the delegation, s.151(5);
s.530A(4). Thus, when a condition of a development or other consent requires
that something be done to the satisfaction of or to a standard or in a manner
approved by a designated Council officer, the Council cannot be said to be
absolved from responsibility if the officer fails to act or decide the matter
when at all times it was in the Council's power to act or decide the matter
itself. And where the neglect or delay beyond the statutory period is that of
the officer, it could not be argued, and was not here argued, that an appeal to
this Court would not arise because the neglect or delay was an officer's and not
the Council's.
<P>
<P>The question then is whether on appeal, the Court is to be regarded as being
in a position inferior to the Council in considering and dealing with the same
matter. It was suggested that the Council was entitled to depend on the guidance
and advice of the City Engineer as its own expert and would be deprived of it if
the Court chose to substitute its own judgment. It was submitted that s.39(2)
should not be interpreted as going so far.
<P>
<P>In my view, the Court, under s.39(2), is required to stand in the Council's
shoes for the purposes of the matter in hand and consider whether in all the
circumstances it ought to give or decide, as the Council itself could have done,
the approval or matter which the officer designated by the Council failed or
neglected to give or decide.
<P>
<P>As to having the benefit of expertise, the Court is organised to provide
Assessors with high degrees of expertise in appropriate fields to preside over
and determine the issues in matters in Classes 1, 2 and 3 and both parties are
at liberty to call expert witnesses to support their cases and assist the Court
to arrive at a proper decision. Incidentally, in the present case, the Council
and the respondent both exercised their rights in this respect to the full.
<P>
<P>In my opinion the Senior Assessor made no error of law in concluding that he
had jurisdiction to determine the application as to the levels of fill
notwithstanding the terms of Condition 11 of the development consent. It is
unnecessary to decide whether the respondent is correct in its analysis of the
position reached in relation to that condition. I am inclined to agree with it
except that Condition 11 did not itself state that the flood level factor was to
be based on a 1 : 100 year flood and the requisite levels of fill yet had to be
specified on the plan and drawings designating the work to be done. In those
respects and in that sense there were plans and drawings to be "approved" for
the purposes of the subdivision and the City Engineer could be said to have been
contemplated by Condition 11 as the person to signify that approval. That has
now been done by the Senior Assessor for the Court when he made his order
approving the subdivision by reference to Ex. 4.
<P>
<P>The final ground of appeal was that the Senior Assessor erred in deciding
that he had no jurisdiction to require a monetary contribution for external
works as a condition of granting subdivision approval.
<P>
<P>At the hearing the respondent had pointed to the amended deed of agreement
referred to in Condition 1(a) of the development consent. As I have said, the
original and amending deed were tendered. Together they provide for specified
areas of land to be dedicated to the public as public reserves and transferred
to the Council as a condition of Council approving the development of the land
as a residential subdivision. Clause l(b) of the main deed contained the
following:-
<P>
<P>"Council acknowledges that in the event of subdivision proceeding by way of
various stages that such dedication shall be accepted by the Council as the
total contribution for parks, gardens, recreation area and/or public reserves in
respect of the subdivision or subdivisions of all the lands aforesaid. The
Council further acknowledges that no further lands or monetary contribution for
any reason whatsoever shall be hereafter required by the Council on any
application for a subdivision of all or any of the aforesaid lands."
<P>It was contended for the respondent that in agreeing to give consent on the
basis negotiated the Council must be taken to have accepted responsibility for
any downstream drainage or bridge works required as a result of the subdivision.
Notwithstanding this, the respondent made in Court an open offer, afterwards
reduced to writing to contribute cash and documentation (engineering plans,
etc.) relating to the external works. After a two week's adjournment for the
Council to consider the offer, it was rejected by the Council because one term
limited the Council's right to appeal from the Senior Assessor's decision. In
spite of its rejection the respondent undertook to keep the offer open for
twelve months.
<P>
<P>The Senior Assessor came to the conclusion that in the dealings between the
parties and the consents given by the Council, the responsibility for bearing
the cost of carrying out downstream external drainage and bridge works remained
the responsibility of the Council; but he also concluded that the catchment area
as represented by the subdivision site would contribute approximately 7% of the
run-off required to be dealt with by the external works. He then said (Judgment
p.18) as follows:-
<P>
<P>"To this extent a contribution under s.94 applied at the development consent
stage may well have been appropriate, however, this was not imposed by the
Council. By contrast and again acknowledging the offer made at Court and
subsequently refused by the Council, <U>I have concluded that it is beyond power
to impose such an offer as a condition of a subdivision consent</U>. Indeed, in
terms of the legal frame of reference, it is quite clear that "the horse has
bolted". It it were proper to apply a s.94 condition at the development
application stage, that opportunity has been missed. Further <U>such an omission
cannot be rectified post hoc, by negotiations or by the imposition of some form
of contribution as a part of the subdivision consent</U>."
<P>(Emphasis added)
<P>
<P>There is an issue between the parties as to what was meant by this passage of
the judgment.
<P>
<P>Counsel for the appellant contended that the Senior Assessor, clearly
directing his mind to the question of his powers, simply misdirected himself on
the law and failed to acknowledge authority affirming the Court's power to
require a monetary contribution to external works associated with or occasioned
by a proposed subdivision for which approval was being sought. Counsel referred
to <U>Old v. North Sydney Municipal Council</U> (1950) 18 L.G.R. (NSW) 1 at P.7;
<U>Doonside Properties Ltd. v. Holroyd Shire Council</U> (1958) 4 L.G.R.A. 337
at p.338; <U>Wallis & Moore Pty. Ltd. v. Kogarah Municipal Council</U>
(1973) 1 L.G.A.T.R. (NSW) 292 at 294; <U>Bartlett v. Wingecarribee Shire
Council</U> (1985) 19 A.P.A.D. 103 at pp.107-108; <U>Cardwell Shire Council v.
King Ranch Australia Pty. Ltd.</U> (1984) 54 L.G.R.A. 110; and see <U>Coupe v.
Mudgee Shire Council</U> (1986) 61 L.G.R.A. 281 at p.284 where the test applied
to a subdivision case by the High Court in the <U>King Ranch</U> case (supra)
was applied to a case of building approval.
<P>
<P>In my opinion these cases support the proposition that, in considering an
application for approval of a subdivision, a Council may take into account
detrimental effects of the subdivision upon the drainage of lands external to
the site and may require as a condition of approval a reasonably related
monetary contribution towards the costs of executing works to alleviate the
effects anticipated.
<P>
<P>According to the respondent's submissions, on a proper understanding of what
the Senior Assessor said, he did not deny the above proposition but, in the
exercise of the Court's discretion, that was open to him, he refused in the
special circumstances of the case to exercise it in the Council's favour .
<P>
<P>As circumstances against requiring a monetary contribution, the respondent
referred, inter alia, to the amended deed of agreement; the fact that the
Council was not contemplating carrying out the works, had no funds, no plans and
no intention in that regard at the time of the hearing; there was evidence, and
it was found, that the effect of the subdivision on downstream flooding would be
so slight as to be of little significance; and the Council had refused a
valuable and continuing offer of cash, design plans, expert reports and other
valuable material to assist it if the works needed to be done or were carried
out.
<P>
<P>It was also pointed out that the Council's solicitor in the course of
argument did not seek a monetary contribution but argued to the Senior Assessor
that the Council was not entitled to attach a condition to a subdivision
approval requiring the applicant to either contribute money for or carry out
drainage works external to the site, with the consequence that the applicant
ought not be given approval unless the applicant was in a position to
demonstrate that the applicant had the power to procure the works to be done
that would alleviate the off-site effects of its subdivision. (Transcript 11
November 1987, p.56).
<P>
<P>It was further submitted for the respondent that the true meaning of the
words used by the Assessor in this part of his judgment was only that a
contribution under the authority of s.94 of the <U>Environmental Planning and
Assessment Act</U>, 1979 could not be exacted on approval of a subdivision under
s.333 of the <U>Local Government Act</U>, 1919. It was suggested that he was
only rejecting a s.94 type condition and it should be assumed that he was aware
of his power to attach conditions independently of that section but was
declining to do so.
<P>
<P>Counsel for the appellant argued that the deed relied on by the respondent in
its submissions must be disregarded because a Council could not fetter its
discretion in the manner attempted by the deed: <U>Jurkovic v. City of Port
Adelaide</U> (1979) 41 L.G.R.A. 71 at pp.78-79; <U>Doran Developments Pty. Ltd.
v. Newcastle City Council</U> (1982) 13 A.P.A.D. 436 at p.447. He submitted also
that the deed was ultra vires the Council; but, even if valid, was inoperative
until the land referred to was actually dedicated.
<P>
<P>There are two sentences in what the Senior Assessor said that make it
difficult to accept the respondent's submissions (a) that he was not denying
that he had the power to require a monetary contribution as a condition of
granting the Court's approval to the proposed subdivision and (b) that he was
simply, in his discretion, refusing to exercise it. I have underlined them in
the quotation from his judgment. They leave me in the position that I cannot be
confident that the Senior Assessor did not mean what he appears to be saying. I
am fully conscious that the language used in a lay Assessor's judgment is not to
be read too strictly: see <U>Brimbella v. Mosman Municipal Council</U> (N.S.W.
Court of Appeal 19.4.1985 not reported) per Kirby P. at p.11; <U>Parramatta City
Council v. Peterson</U> (1987) 61 L.G.R.A. 286 at p.288; but the words, "beyond
power to impose such an offer as a condition of a subdivision consent" and "such
an omission cannot be rectified post hoc.... by the imposition of some form of
contribution as a part of the subdivision consent" are very positive words.
Moreover, the tenor of the language used generally is not to my mind that of
reasoning to a decision on a matter of discretion.
<P>In so far as the first of the above passages refers to imposing on the
Council the offer that was made, it is correct; but the significant thought
expressed is in the phrase "beyond power" which suggests that it was
jurisdiction not discretion that was exercising the Senior Assessor's mind on
the monetary contribution aspect of the case. Whilst correct that the
respondent's offer, in its terms, could not be forced on the Council, it was not
correct that some condition making requirements of the respondent that provided
a financial contribution to the external works of equivalent value to the offer
or some other value was beyond the power of the Court.
<P>
<P>The second passage goes directly to the question of some form of contribution
and rules that out as something that "cannot" be done as part of the subdivision
consent.
<P>
<P>Reading the two passages together in their context I find myself led to the
conclusion that the Senior Assessor was of the view that the Court did not have
the power to approve the subdivision on condition that the respondent contribute
a sum of money to the external works if they were to be carried out. In this I
find him to have been in error on a question of law.
<P>
<P>Of course it does not follow that he would have decided to require or that
should have required a contribution. That was for him to decide and I must not
be taken to be expressing a view one way or the other. The facts and merits of
that question have not been debated before me. In the course of his arguments
the solicitor for the respondent did advance grounds for refusing as a matter of
discretion to require a contribution in the present case; but they were advanced
as a justification for the Senior Assessor's decision on the basis that he had
exercised a discretion. They were all relevant matters on discretion; but I am
persuaded that the Senior Assessor did not undertake an exercise of discretion
because he believed he had none to exercise.
<P>
<P>The Council's purported repudiation of the amended deed of agreement in the
argument put on its behalf on this appeal appears as an argument of convenience.
In my opinion, it is not the law that every agreement by which a Council
purports to restrict its discretion is necessarily ultra vires. The question is
whether it is contrary to the public interest and there must be cases where the
advantages gained by the Council as a quid pro quo for the restriction are in
the public interest and outweigh any public detriment that may flow from the
restriction accepted by the Council. However, that may be, on the question
whether or not in relation to the present application for subdivision approval a
contribution should be required in the public interest, the amended deed of
agreement, action taken in pursuance of it or the willingness of the other party
to honour it are part of the history and facts of the matter relevant for
consideration in deciding the question.
<P>
<P>As to the Council's failure to use its power under s.94 at the stage of
development consent, that too is a relevant consideration; but it does not
exclude an exercise of discretion at the subdivision approval stage. It is also
a relevant consideration that in this case the Council's position was that it
had given subdivision as well as development consent in 1984 without requiring a
contribution under s.94.
<P>
<P>I am not attempting to be exhaustive as to what would be relevant but only
commenting upon some of the matters raised in the present appeal. No doubt there
are others which both parties would wish to raise on the question if it were
under reconsideration.
<P>
<P>The Senior Assessor was not assisted by the solicitor for the Council when he
joined with the solicitor for the respondent in submitting that the Court could
not require a contribution. However, I do not think it right to accede to the
argument that the Council should not be permitted to resile from its position.
There is a substantial public interest in the question of the Court's power and
whether it ought to be exercised in the present case that transcends the rules
applied in adversary proceedings between ordinary litigants. The Court as well
as the Council must always be alive to the implications and side effects that
may flow to the public detriment from land development projects and, as well, to
the powers which the law invests in them to be exercised for the protection of
the public interest. If a position taken by a Council in litigation turns out to
be wrong in law in a matter affecting the interests of the public, it does not
necessarily follow that the Council will be thereby denied the opportunity of a
further hearing; but the Council's error will be relevant on questions of costs.
<P>The Senior Assessor decided against the Council on the merits of the
respondent's application and made an order approving it. He gave clearly his
reasons for doing so in his judgment. They have not been debated or challenged
in the present appeal which is limited to questions of law. His findings of fact
and decision on the merits is not open to challenge here and continues to stand.
Nothing that I have said is to be interpreted as re-opening any of the questions
he decided in the course of concluding that the consent which he gave, by the
order that he made, ought to be given or, except as now to be explained, as
questioning the form of that order.
<P>
<P>The sole error of law that I have found relates entirely to the question
whether or not a condition requiring a monetary contribution should be added to
the consent which the Senior Assessor gave, not to the question whether the
consent to the proposed subdivision should have been given. It is entirely for
him to decide as he thinks proper on all of the facts and circumstances put to
him by the parties whether such a condition should be added to his order or not
and, if it should be added, what the condition should be. It will be necessary
for that purpose to remit the matter to him for determination of that sole
issue; but, as a matter of form, the appropriate orders to make in doing so will
be to set aside his order consenting to the subdivision, not because it is
considered to be wrong in itself, but so that it may be re-made by him as the
order of the Court with or without a condition for contribution attached
according to the Senior Assessor's decision on the question of attaching such a
condition, such decision to be made after reconsideration of that matter in
accordance with this judgment.
<P>
<P>The parties should bear their own costs of the issue on which the Council
succeeded because both contributed to the error, the Council by the stand it
took on the matter before the Senior Assessor. I estimate one quarter of the
costs to be an appropriate proportion. The Council should be required to pay
three quarters of the respondent's costs of the Appeal for the issues on which
it failed here.
<P>
<P>The orders of the Court are as follows:-
<P>l. Appeal allowed.
<P>
<P>2. Order 2 of the Court constituted by the Senior Assessor made on 2 March <A
href="http://www.austlii.edu.au/cgi-bin/disp.pl/au/cases/nsw/NSWLEC/1988/72.html?query=%7E%201988#disp4"
name=disp5><IMG alt="<<" border=0
src="Bruce Kerr Pty Ltd v Gosford City Council [1988] NSWLEC 72 (29 September 1988)_files/contextup.gif"></A><B>1988</B><A
href="http://www.austlii.edu.au/cgi-bin/disp.pl/au/cases/nsw/NSWLEC/1988/72.html?query=%7E%201988#disp6"><IMG
alt=">>" border=0
src="Bruce Kerr Pty Ltd v Gosford City Council [1988] NSWLEC 72 (29 September 1988)_files/contextdown.gif"></A>
be set aside.
<P>
<P>3. Remit the proceedings to the Senior Assessor for determination in
accordance with this judgment of the question whether the above order should be
remade with or without a condition for contribution attached and, if with a
condition, determination of that condition and for remaking the said order in
accordance with his determination.
<P>
<P>4. Order that the appellant Council pay three quarters of the respondent's
costs of this Appeal.
<P>
<P>5. Each party to bear their own costs as to the remaining one quarter.
<P>
<P>6. Exhibits be returned.
<P>
<P>
<P>
<P>I HEREBY CERTIFY THAT THIS AND THE PRECEDING 30 PAGES ARE A TRUE AND ACCURATE
COPY OF THE REASONS FOR JUDGMENT HEREIN OF THE HONOURABLE MR. JUSTICE K.J.
HOLLAND.
<P>
<P>
<P><U>Associate</U>
<P></P></BODY></HTML>
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