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Mandurah Enterprises Pty Ltd v Western Australian Planning Commission [2010] HCA 2 (3 February 2010)
Last Updated: 3 February 2010
HIGH COURT OF AUSTRALIA
FRENCH CJ,
GUMMOW, HAYNE, CRENNAN AND BELL JJ
MANDURAH ENTERPRISES PTY LTD & ORS APPELLANTS
AND
WESTERN AUSTRALIAN PLANNING COMMISSION RESPONDENT
Mandurah Enterprises Pty Ltd v Western Australian Planning Commission
[2010] HCA 2
3 February 2010
P15/2009
ORDER
- Appeal
allowed in part.
- Declare
that:
(a) the taking order of 5 August 2003 made under s 177 of the Land
Administration Act 1997 (WA) relating to:
(i) Lot 7 on Plan 8565, being the whole of the land contained in
Certificate of Title Volume 1936 Folio 292 ("lot 7");
(ii) Lot 8 on Plan 8565, being the whole of the land contained in
Certificate of Title Volume 1936 Folio 291 ("lot 8");
(iii) Lot 30 on Diagram 74229, being the whole of the land contained in
Certificate of Title Volume 1838 Folio 943 ("lot 30");
and
(iv) Lot 49 on Plan 17900, being the whole of the land contained in
Certificate of Title Volume 1957 Folio 286,
was invalid so far as it purported to apply to those portions of lots 7
and 8 zoned urban under the Peel Region Scheme and that
portion of lot 30 zoned
industrial under the Peel Region Scheme; and
(b) the interests of the appellants in those portions of lots 7 and 8 zoned
urban under the Peel Region Scheme and in that portion
of lot 30 zoned
industrial under the Peel Region Scheme were not extinguished pursuant to s
179(b) of the Land Administration Act 1997 (WA) following registration of
the taking order under s 179.
- Set
aside orders 1, 3, 4 and 5 of the orders of the Court of Appeal of the Supreme
Court of Western Australia made on 17 October 2008,
save for so much of orders
1, 3 and 4 as allow the appeal in respect of the zoned portion of lot 30, and in
lieu thereof order that:
(a) the appeal be allowed in respect of the zoned portions of lots 7
and 8; and
(b) the orders of the primary judge made on 23 February 2007 be set
aside.
- Respondent
to pay one half of the appellants' costs in this Court, and one half of the
appellants' costs in the Court of Appeal and
at first instance.
- The
application for declaratory and other relief otherwise be referred back to the
primary judge for determination in accordance
with these reasons and
orders.
On appeal from the Supreme Court of Western Australia
Representation
R I Viner QC with L E Rowley for the appellants (instructed by Deacons
Lawyers)
R M Mitchell SC with C S Bydder for the respondent (instructed by State
Solicitor for Western Australia)
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
Mandurah Enterprises Pty Ltd v Western Australian Planning Commission
Real property – Compulsory acquisition – Parts of various lots
reserved under town planning scheme for Primary Regional
Roads – Whole
lots subsequently acquired for purpose of railways and primary regional roads
– Whether land reserved for
one purpose could be acquired for another
purpose – Whether valid acquisition under s 13 of Town Planning and
Development Act 1928 (WA) – Whether valid acquisition under s 161 of
Land Administration Act 1997 (WA) ("Land Act").
Real property – Compulsory acquisition – Section 161 of Land Act
provided that acquisition must be for purposes of public work –
Portions of lots cut off from access to public roads by railway
– Whole
lots acquired to avoid statutory obligation to construct crossings –
Whether acquisition incidental to purposes
of public work – Whether
compulsory acquisition of whole lots valid – Whether severance possible
where same taking order
effected both valid and invalid
acquisitions.
Words and phrases – "for the purpose of a town planning scheme", "for the
purposes of the work", "public work", "railway purposes".
Land Administration Act 1997 (WA), ss 161, 177, 179.
Public Works Act 1902 (WA), s 95.
Town Planning and Development Act 1928 (WA), s 13(1).
- FRENCH
CJ, GUMMOW, CRENNAN AND BELL JJ. This appeal from the Court of Appeal of the
Supreme Court of Western Australia ("the Court
of Appeal") concerns the validity
of a taking order which effected the compulsory acquisition of four lots of
land, on and adjacent
to which the Perth to Mandurah railway was subsequently
constructed. In particular the appeal concerns the power of the respondent,
the
Western Australian Planning Commission ("the WAPC"), to compulsorily acquire the
land, and more particularly to do so in circumstances
where not all of the land
was required for the construction of the railway.
- On
8 August 2003, the WAPC became the registered proprietor of land previously
belonging to the appellants, under the Transfer of Land Act 1893
(WA) ("the Transfer of Land
Act")[1]. Three
days prior, on 5 August 2003, a taking order had been issued under s 177 of the
Land Administration Act 1997 (WA) ("the Land Act"), declaring that
the land described in the Schedule to the taking order had been compulsorily
taken under the Land Act ("the taking order"). The Schedule to the taking order
included land described as lot 7, lot 8, lot 30 and lot 49 (collectively,
"the
lots") in the local government area of the City of Mandurah. It also included
several other properties. The first appellant,
Mandurah Enterprises Pty Ltd,
was the registered proprietor of lots 7 and 49. The second appellants, Neil
Robert Graham and Valmai
Evelyn Graham, were the registered proprietors of lots
8 and 30.
- Lot
7 is contiguous with and to the west of the TAFE Peel Regional Campus ("the
TAFE"). Lot 8 is contiguous with and to the west
of lot 7. Lot 30 is
contiguous with and to the west of lot 8. Lot 49 adjoins the north-west corner
of the TAFE and lies to the
north-east of lots 7, 8 and 30. Each of the lots
fell within the Peel Region Scheme ("the PRS"), a regional planning scheme
prepared
by the WAPC under s 18(1)(ba) of the Western Australian Planning
Commission Act 1985 (WA) ("the Commission
Act")[2]. In
October 2002 the PRS was gazetted, showing that part of each of lots 7, 8 and 30
and all of lot 49 were reserved for Primary
Regional Roads. That reservation
represented 3.8%, 41% and 52% of lots 7, 8 and 30 respectively. The balance of
lots 7 and 8 were
zoned "urban" and the balance of lot 30 was zoned
"industrial".
- The
appellants brought proceedings by originating summons in the Supreme Court of
Western Australia, seeking a declaration that the
taking order was invalid. The
primary judge (Le Miere J) found that the appellants did not establish that
the taking order
was
invalid[3]. The
appellants then appealed to the Court of Appeal (McLure and Buss JJA and Murray
AJA), which upheld the decision of the primary
judge except insofar as that
decision dismissed the appellants' application for declaratory relief in respect
of the portion of lot
30 zoned "industrial" under the
PRS[4].
- In
their appeal to this Court, the appellants submitted that the Court of Appeal
erred in holding that the taking of the whole of
the appellants' land was valid.
The appellants contended that the taking of the whole of lots 7, 8 and 30 was
invalid, and that therefore
the taking order by which the WAPC purported to take
the whole of lots 7, 8, 30 and 49 was invalid and of no effect. Issues which
were the subject of a Notice of Contention before the Court of Appeal were not
pursued in this appeal. What the appellants sought
from this Court was a
declaration of invalidity in respect of the taking order in relation to each of
the appellants' lots with the
consequence that there would need to be a fresh
valid taking order of only the reserved parts of lots 7, 8 and 30 and the whole
of
lot 49.
- The
purpose for which the land was taken is identified in the Schedule to the taking
order as "Railways" and "Primary Regional Roads".
The railway referred to is
the South-West Metropolitan Railway, and the Primary Regional Road referred to
is the North Mandurah
Bypass.
- The
intention in taking each of the lots was to build the South-West Metropolitan
Railway over the western parts of lots 7 and 8,
the eastern part of lot 30 and
the whole of lot 49, which lot was wholly acquired for railway purposes.
However, it was not contentious
that lots 7 and 8 were taken in their entirety
because, when the railway was constructed over the western parts of lots 7 and
8,
the eastern parts of lots 7 and 8 not used for the railway could not be
accessed by any public road.
- In
such circumstances the Public Transport Authority was required by s 102 of
the Public Works Act 1902 (WA) ("the Public Works Act") to construct such
crossings as may be necessary to allow access to the land. The whole of
lot 30 was taken in the mistaken
belief that the construction of the
railway would prevent access to the balance of the lot via any public road and
therefore give
rise to the abovementioned obligation to build a crossing. The
zoned portion of lot 30 taken under the taking order was incapable
of being
used for the purposes of the railway. So much was held by the Court of Appeal
and is not in dispute. In oral submissions
this Court was told that after the
Court of Appeal had decided the invalidity of the taking order as it related to
the zoned part
of lot 30, by agreement between the parties, that part has been
returned to the ownership of the second appellants without prejudice
to rights
to be pursued in this appeal. It appears a subdivision has been effected by
agreement of the parties, and there has been
a transfer of the relevant part
under the provisions of the Transfer of Land Act. The main significance for
this appeal of the taking of lot 30 concerns severance which is discussed later
in these reasons. The
claims in relation to the zoned portions of lots 7 and 8
constituted a prominent part of the argument.
- These
reasons seek to show that the taking order is valid with respect to the reserved
portions of lots 7, 8 and 30, and the whole
of lot 49, but invalid in respect of
the zoned portions of lots 7, 8 and 30, and accordingly, the appeal succeeds in
part.
The applicable legislation
- Of
a task of construing legislation spread across several revenue statutes of some
density of expression, Kitto J said it was the
duty of the Court to peer into
"this dark jungle, full of surprises and
mysteries"[5].
The present task may not be of that order, but the applicable legislation does
comprise no less than four statutes and a town planning
scheme, and an
appreciation of the relationship of each to the others is necessary for
determination of the issue on the appeal concerning
the powers of the WAPC.
The Planning Act
- A
power of compulsory acquisition was, at the relevant time, contained in s 13 of
the Town Planning and Development Act 1928
(WA)[6] ("the
Planning Act"), under which compliance with the notification provisions of the
Land Act referred to below was not required. Section 13 provided:
"(1) The responsible authority may, for the purpose of a town planning
scheme, in the name and on behalf of such authority –
(a) purchase any land comprised in such scheme from any person who may be
willing to sell the same; or
(b) with the consent of the Governor, take compulsorily, under and subject to
Part 9 of the Land Administration Act 1997, (but subject to subsection
(2)), any land comprised in such scheme, and whether situate within or without
the boundaries of the
district of such responsible authority.
(2) When any land is taken compulsorily under the powers conferred by this
section the provisions of
(a) sections 170 to 175 inclusive; and
(b) section 184,
of the Land Administration Act 1997, shall not apply to or in respect of
the land or the taking or in any manner whatsoever, and that Act shall be read
and construed
as if the provisions were deleted." (emphasis
added)
Sections 170 to 175 and s 184 of the Land Act are provisions dealing with
notification of intention to take an interest in land.
- It
was agreed that the WAPC had the powers of a "responsible authority" in relation
to the relevant town planning scheme under s 37F
of the Commission Act.
The Land Act
- Part
9 of the Land Act also deals with the compulsory acquisition of interests in
land. Section 161 governs the power to take land for public works as
follows:
"(1) Whenever the Crown, the Governor, the Government, any Minister of the
Crown, any State instrumentality or any local government
is authorised, by this
Act, the Public Works Act 1902 or any other Act, to undertake, construct
or provide any public work, and the use of any land or any interest in land is
required
for the purposes of the work, then, unless otherwise specially
provided –
(a) any interest in the land held by a person other than the Crown may be
taken;
..." (emphasis added)
"Public work" is defined in s 2 of the Public Works Act (definitions from which
are incorporated into Pt 9 of the Land Act by s 151 of that Act) to mean and
relevantly include:
"(2) any railway authorised by special Act or any work whatsoever authorised by
any Act".
It should also be noted that "railway" as referred to in s 151 has the same
meaning as in the Public Works Act. Section 95 of the Public Works Act
relevantly defines "railway" as including "the land upon which any railway is
made or authorised to be made" and "all land taken,
purchased, or acquired for
railway purposes".
- Section
178(2) of the Land Act relevantly provides that a taking order may, as
necessary:
"...
(d) provide that specified interests are to be disposed of or granted in land
affected by the order to specified persons;
...
(f) provide as necessary for the cancellation, amendment or issue of ...
certificates of title."
Section 178(3) provides:
"The interests which may be disposed of or granted under subsection (2)(d)
include the fee simple, a lease of Crown land or
any easement or
obligation."
Section 180 provides that a taking order may be annulled or amended within 90
days after its registration and s 187 permits the Minister to cancel the
designation of land as required for a public work when it is not so required.
- Division
3 of Pt 9 (ss 168-181) specifies the procedure for taking an interest in
land without agreement. Section 170(1) provides that, where it is proposed to
take interests in land without agreement, the Minister must issue a notice of
intention to
take. Section 170(2) contains an exception, that is, that a notice
of intention need not be issued "if the proposed taking is for the purpose of a
railway
authorised by a special Act." It is further required that the notice be
sent to the Registrar of Titles or Registrar of Deeds, as
appropriate, and for
the relevant Registrar to register that notice (s 170(3) and s 170(4)). The
WAPC did not register a notice
of intention before making the taking order in
this matter. Section 175 covers objections to a proposed taking.
- Section
177 outlines the process for making a taking order where a notice of intention
has been registered, in sub-s (1), or where
a notice of intention is not
required, in sub-s (2) which provides:
"If a special Act has been passed authorising the construction of a railway, the
Minister may make a taking order consistent with
that
Act."
- The
effect of the registration of a taking order is relevantly described in
s 179 as follows:
"On the registration of a taking order in relation to land –
(a) the order has effect according to its terms;
(b) if the order provides that the land is taken – every registered and
unregistered interest in the land not preserved under
section 178(2)(a) is
extinguished, and each person who formerly held such an interest has that
holding converted into a claim
for compensation under Part 10;
..."
Once the statutory process encapsulated in ss 178 and 179 is completed, an
entry is made in the Register established under s 48 of the Transfer of Land
Act, recording the making of the order and the new registered proprietor of the
land, which in this case was the WAPC.
- The
assessment of compensation for loss suffered as a result of compulsory
acquisition is dealt with in Pt 10 (ss 202-258). It can be noted that
s 241(2) provides that, in the case of an interest in land taken for a
railway or other work authorised
by a special Act, regard is to be had to the
value of the land, with improvements, as at the first day of the session of
Parliament
in which the Act was introduced.
The Railway Act
- The
Railway (Northern and Southern Urban Extensions) Act 1999 (WA)
("the Railway Act") provides the specific authority to construct the
Jandakot-Rockingham-Mandurah railway in s 4 as follows:
"(1) A railway, and all necessary, proper and usual works and facilities in
connection with the railway, may be constructed and maintained
along the line
described in Schedule 2.
(2) Despite the deviation specified in section 96(1) of the Public Works Act
1902, the railway may deviate to a distance of 4 kilometres on either side
of the line described in Schedule 2."
Schedule 2 describes the line in general terms by reference to existing maps,
roads and railway lines.
- The
Railway Act is a "special Act" for the purposes of s 177(2) of the Land Act
set out above authorising the construction of a railway. Section 151 of the
Land Act incorporates the definition of "special
Act"[7]:
"any Act of the Parliament of Western Australia with which this Act is
incorporated, authorising the construction of a public
work".
Section 96(1) of the Public Works Act provides that:
"Every railway shall be made only under the authority of a special Act which
shall state as nearly as may be the line of the railway
and the 2 termini
thereof; but it shall be lawful to deviate from such line at a distance of 1.6
kilometres on either side thereof,
or such other distance as may be provided in
any special Act."
The Public Transport Authority and its powers
- The
Public Transport Authority is established by s 5 of the Public Transport
Authority Act 2003 (WA). Its main function, specified by s 12,
is "to provide and operate safe and reliable public passenger transport
services, either directly or through persons with whom it
contracts." The
Public Transport Authority may do the following things in respect of any railway
authorised by a special Act, under
s 99(1) of the Public Works Act:
"...
(c) Make the railway upon, across, over, or under any road, street ...;
...
(i) Do all acts necessary for making, equipping, maintaining, altering,
repairing, and using the railway."
Under ss 101(2)(a) and 104 of the Public Works Act, the Public Transport
Authority has the power to alter or close roads. Such power is also implicit in
s 99(1)(i), set out above.
- The
Public Transport Authority also has duties regarding provision of access to
land. Section 102 of the Public Works Act provides:
"Where the making of a railway line has cut off all access by road to land other
than Crown land, the Public Transport Authority
shall make such crossing or
crossings as may be necessary to give access to such
land."
"Road" is defined in s 84 of the Public Works Act as "a public highway", and
therefore the duty in s 102 is not discharged if land remains accessible by
private road only.
The Peel Region Scheme
- It
is accepted that the PRS is a "town planning scheme" within the meaning of s 13
of the Planning Act, set out above. The purpose
of the PRS is stated in cl 5 as
being to:
"(a) provide for the reservation and protection of land for regional transport,
conservation, recreation and public uses;
(b) provide for the zoning of land for living, working and rural land uses;
(c) provide a mechanism for landowners to be compensated in a fair and equitable
manner where land is reserved for a public purpose;
(d) provide an opportunity for the formal environmental assessment of regional
planning proposals and provide increased certainty
to such proposals;
(e) provide a mechanism for certain development of regional significance, and
development in areas of regional significance, to be
considered and approved by
the Commission; and
(f) identify and protect land having strategic importance for industrial and
future urban use."
Land reserved under the PRS for a public purpose is defined as "reserved land"
under cl 2(2) of the PRS, and cl 9 provides:
"The lands shown as Reserved Lands on the Scheme Map are reserved under the
Scheme for the public purposes shown on the Scheme
Map."
Categories of public purpose are outlined in cl 10 of the PRS and relevantly
include:
"...
(b) Primary Regional Roads – to provide a regional road network to
accommodate current and future transport needs on roads
declared under the
Main Roads Act 1930;
...
(d) Railways – to provide for the passage of trains, the marshalling,
maintenance and storage of rolling stock, and the conveying
of the public and
freight by rail;
..."
- The
PRS also deals with zoning of land. Clause 11 provides:
"(1) The region is classified into the zones shown on the Scheme Map.
(2) The zones are delineated and depicted on the Scheme Map according to the
legend on the Scheme Map."
Clause 12 relevantly provides:
"Land is classified into zones under the Scheme for the following purposes
–
(a) Urban – to provide for residential development and associated local
employment, recreation and open space, shopping, schools
and other community
facilities;
...
(d) Industrial – to provide for manufacturing industry, the storage and
distribution of goods and associated uses;
..."
- Clause
18 provides that, subject to cll 19 and 20, a person must not commence or carry
out development on reserved land or development
of a kind or class specified in
a resolution made by the WAPC unless that person has applied for and obtained
the planning approval
of the WAPC.
- Clause
19 relevantly provides:
"The following development on reserved land does not require the planning
approval of the Commission –
...
(e) development on reserved land owned by or vested in a public authority that
is –
...
(iii) works on land reserved for Railways, or for Primary Regional Roads or
Other Regional Roads, for the purpose of or in connection
with a railway, but
this does not include the construction or alteration of a railway station or any
related car parks, public transport
interchange facilities, or associated means
of pedestrian or vehicular access;
..."
Clause 20(b) of the PRS provides that reserved land owned by or vested in a
public authority may be used by the public authority
without the approval of the
WAPC if the land is used for any purpose for which the land may be lawfully used
by the public authority.
The issues
- Essentially
two issues arise on this appeal:
(1) Power: What was the proper extent of the power of the WAPC, under
the Commission Act, s 13 of the Planning Act or s 161 of the Land Act,
to acquire land for the purposes of the PRS? In particular, could a taking
order authorise the taking of more land than was reserved
or required for a
Primary Regional Road, or land reserved for one purpose to be used for another
purpose? Could a taking order authorise
the taking of more land than was
required for the actual construction of a railway and land not reserved for any
public purpose under
the PRS?
(2) Severance: Could part of a lot or the whole of a lot be severed from
a taking order where that part or the whole could not be validly taken
so as to
uphold the taking of the other part of a lot or other lots?
- The
issues so framed were said to give rise to four questions:
(1) By what power was the taking order made, there being alternative possible
sources of power?
(2) Was the taking of the whole (ie the reserved and zoned parts) of lots 7 and
8 (and 30) valid?
(3) Was the taking of the zoned portions of lots 7 and 8 (and 30) for the
purpose of avoiding a statutory requirement to construct
a crossing
valid?
(4) If the taking of the zoned portions of lots 7 and 8 (and 30) was invalid,
could those parts be severed from the reserved parts
of those lots and could the
taking of the balance (ie the reserved parts) of lots 7, 8 and 30 and the taking
of the whole of lot
49 be valid?
In essence, the WAPC raised the same questions but approached them in a
different order.
Submissions
- The
appellants submitted that the Court of Appeal erred in holding that lots 7, 8,
30 and 49 were validly taken by the taking order,
save for the portion of lot 30
zoned for industrial use. The Court of Appeal is also said to have erred in
construing the power
of the WAPC under the Planning Act and the Land Act as
extending to a valid compulsory acquisition of the whole of the land, for the
purpose of constructing a railway on only some parts
of the zoned portions of
lots 7 and 8 for the purpose of avoiding the statutory duty under s 102 of the
Public Works Act to construct a crossing so as to give access to lots 7 and 8.
The appellants further argued that the Court of Appeal should have
held that the
purported taking of lots 7, 8, 30 and 49 was beyond the power of the WAPC either
under s 13 of the Planning Act or
under s 161 of the Land Act and was therefore
invalid and of no effect.
- Further,
in respect of the finding that the taking of the zoned part of lot 30 was
invalid, the appellants submit that the valid
taking cannot be severed from the
invalid taking, and that the invalidity of part of the taking order means the
entire taking order
is invalid.
- The
WAPC contended that the taking order was a valid exercise of power under the
Land Act, s 161 of which was said to have authorised the taking of
lots 7, 8, 30 and 49 other than that portion of lot 30 zoned for industrial
use. Alternatively, it was submitted that s 13 of the Planning Act at
least authorised the WAPC to take that part of the lots
in question classified
as reserved under the PRS for railway purposes, and accordingly the taking order
to that extent was valid
under s 13 of the Planning Act. Importantly, it
was conceded by the WAPC that s 13(1) of the Planning Act did not support
the taking of those parts of the land which had been zoned under the PRS, which
concession explained the WAPC's reliance on s 161 of the Land Act. For the
reasons which follow, the appeal should be allowed in part, chiefly by reference
to the language of the applicable legislation.
The power of the WAPC to take land
- The
power to compulsorily acquire land is a power to take land for the purpose for
which the power is
granted[8].
Compulsory acquisition and associated compensation is entirely the creation of
statute[9]. The
submissions concerning s 13 of the Planning Act and s 161 of the Land
Act raise questions of statutory interpretation to be assessed by reference to
the statutory presumption against an intention to interfere
with vested property
rights[10].
Taking land "for the purpose of a town planning scheme"
- Section
13 of the Planning Act, set out above, permitted the taking of land "for the
purpose of a town planning scheme", here, the
PRS. The Court of Appeal (McLure
JA, with whom Buss JA and Murray AJA agreed on this point) concluded correctly
that in order to
be "for the purpose of a town planning scheme" the acquisition
must be consistent with the terms and effect of the scheme in
question[11].
That conclusion was based on the natural and ordinary meaning of the language of
s 13, its distinction from s 161 of the Land Act which provided for
the acquisition of land for "the purposes of [a public] work", and the fact that
such a construction is consonant
with the dispensation of public consultation
requirements in ss 170-175 of the Land
Act[12]. The
legislature dispensed with these requirements due to the fact that the
opportunity for objections and public submissions regarding
the making or
amendment of a regional planning scheme had been conferred through other
legislation[13].
- There
is no doubt that the taking of the whole of lot 49 and the portions of lots
7, 8 and 30 reserved under the PRS for purposes
identified in conjunction with
the reservation would answer the description of land taken "for the purpose of"
the PRS. Accordingly,
if land reserved for "Primary Regional Roads" may be
acquired for the purposes of "Railways" (both of which are identified purposes
in the PRS) the compulsory acquisition of lot 49 and the reserved portions of
lots 7, 8 and 30 would be for the purposes of the PRS
and therefore within the
power conferred by s 13(1)(b) of the Planning Act. By way of contrast, the
compulsory acquisition
of the zoned portions of lots 7, 8 and 30 is not for the
purposes of the PRS and a taking of them is beyond the power granted under
s 13(1)(b), in the sense explained in Thompson v Randwick
Corporation[14],
set out
below[15]. As
mentioned above, the WAPC concedes this point concerning s 13(1)(b) in
respect of the zoned portions of lots 7, 8 and 30.
- This
leads to the appellants' contention that as the reserved parts of lots 7, 8 and
30 were reserved for "Primary Regional Roads"
under the PRS, and since the
reserved parts were not reserved for "Railways" under the PRS, the land taken
for the railway was taken
for an improper purpose. In
Thompson[16]
improper purpose in the context of the resumption of land was explained
thus:
"[T]he Council, in attempting to resume more land than is required to construct
the road, is not acting in good faith. By that we
do not mean that the Council
is acting dishonestly. All that we mean is that the Council is not exercising
its powers for the purposes
for which they were granted but for what is in law
an ulterior purpose."
- In
answer to the allegation that the taking was for an improper purpose, the WAPC
relied on the location of the railway reservation
in the PRS immediately to the
north and south of the taken land as evidencing that it was within the
contemplation of the PRS that
the railway would run into and share land with the
proposed North Mandurah Bypass. More importantly, the WAPC relied on
cl 19(e)(iii)
of the PRS, set out above, which provides that land reserved
for Primary Regional Roads may be developed without development approval
for the
purpose of, or in connection with, a railway (except for the construction of a
railway station, amongst other exceptions).
In terms, the PRS authorised the
taking of the reserved part of the lots for railway purposes, which has the
effect that the taking
of the reserved land was not for a purpose ulterior to
the PRS. Accordingly, s 13(1) of the Planning Act was the source of
power
for the taking of the reserved portions of lots 7, 8 and 30 and the whole of lot
49.
Taking land "for the purposes of [a public] work"
- Section
161 of the Land Act works differently from s 13 of the Planning Act.
Section 161 permits an authority under the Act to take land for the undertaking,
construction or provision of a "public work", an expression of wider import than
the phrase "for the purpose of a town planning scheme"
occurring in s 13(1)
of the Planning Act. However, the permission in s 161 is limited by the
provision that any taking must
be "for the purposes of the work". It has
already been explained that the railway was a "public work" for the purposes of
s 161
and that "railway" was defined to include "railway purposes" in s 95
of the Public Works Act. The question arising under s 161 is whether
acquiring land for the admitted purpose of avoiding the obligation to construct
a crossing is capable of being a "railway purpose" so as to fall within
s 161 as a "purpose of the work". A majority of the
Court of Appeal
(McLure and Buss JJA, Murray AJA dissenting) found that such an acquisition is
capable of being for a railway purpose
within
s 161[17]
and was not an improper purpose as that was explained in
Thompson[18].
Buss JA essentially found that the purpose for which the zoned parts of lots 7,
8 and 30 were taken was incidental to the "undertaking,
construction or
provision" of the
railway[19].
Murray AJA found that the acquisition, so as to avoid the operation of
s 102 of the Public Works Act, was not for railway
purposes[20].
As urged by the appellants, that conclusion must be upheld. The WAPC contended
that the acquisition of the zoned portions of lots
7 and 8 was for the purpose
of giving effect to the decision of the Public Transport Authority regarding the
level crossing (ie not
to construct it) and it therefore constituted a use of
the zoned portions for the purpose of the railway. That convoluted proposition
should not be accepted. Alternatively, it was contended that the use of the
land, being a passive holding of the land, was incidental
to the undertaking,
construction or provision of the railway. Reliance was placed on the definition
of "public work" to include
"proper and usual works and facilities in connection
with"[21] the
railway, the expression "any work incidental to" the
railway[22] and
the expression "land required for or in connection with" the
railway[23].
- The
evidence of the decision to acquire the zoned portions of lots 7 and 8 (and 30)
was contained in the affidavit of Mr Hillyard,
who recommended the acquisition
as follows:
"It is further proposed to take several severed portions of land which would
otherwise become landlocked as a result of the construction
of the railway or
require the installation of level crossings, which is not favoured by the
WAGRC."[24]
- It
was contended by the appellants that the acquisition was not a use "for the
purposes of [a public] work", ie the railway, as contemplated
by s 161. It
was further submitted that in determining whether the taking was incidental to
the undertaking, construction or
provision of the railway on the reserved
portions of lots 7, 8 and 30 and the whole of lot 49, it was essential to ask
whether the
taking is necessary to the exercise of the power to otherwise take.
As pointed out in Hudson v
Venderheld[25],
the notion of a necessity "must be limited by the extent of the need".
- Acquiring
land for the purpose of avoiding the construction of a level crossing is
patently not acquiring land for the purpose of
a railway or for purposes
incidental to the undertaking, construction or provision of a railway. To find
otherwise would be to stretch
impermissibly the natural and ordinary meaning of
the phrases relied on such as "in connection with" and "incidental to" the
railway.
The zoned portions of lots 7 and 8 (and 30) were not actually
required, or necessary, for the work of constructing the railway.
Nor could it
be said that they were required for "proper and usual works ... in connection
with the railway" as they were not acquired
for any works whatsoever. Rather
they were required to avoid the obligation to undertake crossing works. On this
analysis s 161(1)(a)
does not authorise the taking of the portions of lots
7 and 8 (and 30) which were zoned urban (or industrial) under the PRS.
- Three
of the four questions set out
above[26] can
now be answered as follows:
(1) s 13(1)(b) of the Planning Act is the source of power of the taking order
insofar as it covers the portions of the lots reserved
under the
PRS;
(2) the taking of the reserved portions of lots 7 and 8 (and 30) is valid by
reference to s 13(1)(b) of the Planning Act; the
taking of the zoned
portions of lots 7 and 8 (and 30) is invalid and that taking is not authorised
by either s 13(1) of the
Planning Act or s 161 of the Land Act;
and
(3) the taking of the zoned portions of lots 7 and 8 (and 30) for the purposes
of avoiding a statutory requirement to construct a
level crossing is
invalid.
These answers direct attention to the effect of the invalidity of the taking
order in relation to the zoned portions of lots 7 and
8 (and 30). That requires
consideration of the operation of s 179 of the Land Act. The taking order
recited that the relevant certificates of title were to be cancelled and new
certificates of title to be issued
for the lands taken. Provision for
cancellation of certificates of title in the taking order was authorised by
s 178(2)(f) of the Land Act. Cancellation was evidently to be effected
pursuant to, but not by operation of, the order. Section 179(a) provided that
on the registration of the taking order it would have effect "according to its
terms". By s 179(b), which applied to the taking order in this case, every
registered and unregistered interest in the land would be extinguished. The
"registration" process applicable to the taking order was not elaborated in
s 179. The term "registered" was defined in s 3(1) of the Land Act as
"registered under Part IIIB of the TLA", TLA being defined in s 3(1) as the
Transfer of Land Act. However, Pt IIIB does not make and, as the Court was
informed by senior counsel for the WAPC, never has made provision for the
registration of taking
orders for the purposes of s 179. In this case the
existence of the order was endorsed on the relevant certificates of title
under
the heading "Limitations, Interests, Encumbrances and Notifications". Its
"registration" was not a process for which the Transfer of Land Act provided.
It was a process for which the Land Act provided with the consequences set out
in s 179. The endorsement of the order could not therefore be seen as the
endorsement on the certificate of a registered interest for the
purposes of the
Transfer of Land Act. Given that s 179(b) allows for a partial
extinguishment to save specified interests preserved pursuant to
s 178(2)(a), it is, as a matter of construction, capable of an application
limited to interests validly taken.
- The
findings that the taking order, insofar as it concerns the reserved portions of
the lots, is valid, and that it is invalid insofar
as it concerns the portions
of lots 7 and 8 (and 30) zoned under the PRS, have the consequence that the
taking order cannot operate
under s 179(b) of the Land Act to extinguish
the whole of the appellants' interests in their land. The extinguishment effect
of s 179(b) can only apply to so much of the land as is validly included in
the taking order as having been taken. The taking order recites
relevantly that
Certificates of Title Volume 1936 Folio 292 (lot 7), Volume 1936 Folio 291 (lot
8) and Volume 1838 Folio 943 (lot
30) "are to be totally cancelled and new
Certificates of Title are to be issued for the lands taken".
- To
the extent that the taking order so expressed includes the portions of lots 7
and 8 (and 30) zoned under the PRS which are invalidly
taken, the total
cancellation of the relevant certificates of title referred to in the taking
order is erroneous. This would appear
to give rise to a claim in
personam, a personal equity in each of the appellants of the kind referred
to in Frazer v
Walker[27],
to rectify the Register. The necessary mechanical steps would likely include a
subdivision so as to isolate the zoned portions
of the lots from the portions
reserved under the PRS. The taking order and the relevant entries in the
Register would require consequential
amendment to achieve a transfer of
ownership, to the appellants, of the portions zoned under the PRS. Some such
course has already
been followed in respect of lot 30, which is now back in the
ownership of the second appellants.
- Further,
s 200 of the Transfer of Land Act empowers a judge to direct the Registrar
to cancel a certificate of title "[u]pon the recovery of any land estate or
interest by
any proceeding at law or in equity from the person registered as
proprietor ... and to substitute such certificate of title or entry
as the
circumstances of the case may require".
- In
this context, it needs to be noted that all questions of the indefeasibility of
the WAPC's title, and questions arising out of
the appellants' delay in
asserting their rights, have been expressly reserved by the consent of the
parties, to be dealt with by
the primary judge on a further hearing of the
application. Any claim to enforcement of the appellants' personal equities
mentioned
above can be expected to constitute part of the further hearing.
Severance
- The
fourth question asked concerns severance. The appellants observed that
severance can be applied to widely differing classes
of instruments, contracts,
legislation, subordinate legislation, warrants, or even to an invalid condition
imposed upon a town planning
consent. However, the appellants submitted that
this was not a case for severance essentially because the taking order did not
distinguish
between the reserved and zoned portions of lots 7 and 8 (and 30).
It was contended that severance is an inappropriate remedy in
the context of
compulsory acquisition. It was further submitted that if the acquiring
authority cannot proceed with all the resumptions
in the taking order it has no
power in relation to any of them. As such, the taking order is ultra
vires, invalid and of no effect.
- The
WAPC submitted that the ordinary common law principles of severance can be
applied in the compulsory acquisition of land. Further,
the WAPC pointed out
that the steps necessary to create a separate lot of the eastern balance of lots
7 and 8 (and of the western
balance of lot 30) are mechanical steps which can be
taken. A survey is ordinarily required for the issue of a certificate of title
for a subdivided
lot[28] but it
is not a requirement specified in the Land Act as a precondition of making a
valid taking order.
- Estates
Development Co Pty Ltd v State of Western
Australia[29]
supports the proposition that the challenged acquisitions by the taking order do
not have to be considered in globo and that suggests that the common law
principle of severance might be applied in the context of compulsory acquisition
of land, at
least in respect of different lots. Some of the difficulties in the
application of the common law principle of severance have been
pointed out in
SST Consulting Services Pty Ltd v
Rieson[30].
However, it is unnecessary to make any final determination on the issue of
severance because relief applicable to the findings set
out above in these
reasons renders severance otiose.
Conclusions
- The
taking order of 5 August 2003 is valid in respect of the reserved portions of
lots 7, 8 and 30 and the whole of lot 49. It is
invalid in respect of the zoned
portions of lots 7, 8 and 30. This result constitutes substantial but partial
success for the appellants
as the WAPC's submissions have succeeded in respect
of the reserved portions of lots 7, 8 and 30 and the whole of lot 49. Whilst
lot 30 has been restored to the ownership of the second appellants, all rights
were reserved by the parties, and declaratory relief
is sought by the appellants
in respect of all four lots.
Orders
- The
orders made by the Court of Appeal on 17 October 2008, save for so much of
orders 1, 3 and 4 as allow the appeal in respect of
that portion of lot 30 on
Diagram 74229 zoned "Industrial" under the Peel Region Scheme, and save for
order 2, be set aside and in
lieu thereof it should be ordered that the orders
of the primary judge made on 23 February 2007 be set aside, and that the appeal
be allowed in respect of the zoned portions of lots 7 and 8.
- Declarations
should be made in the following terms:
- The
taking order of 5 August 2003 made under s 177 of the Land
Administration Act 1997 (WA) relating to:
(i) Lot 7 on Plan 8565, being the whole of the land contained in Certificate of
Title Volume 1936 Folio 292 ("lot 7"); and
(ii) Lot 8 on Plan 8565, being the whole of the land contained in Certificate
of Title Volume 1936 Folio 291 ("lot 8"); and
(iii) Lot 30 on Diagram 74229, being the whole of the land contained in
Certificate of Title Volume 1838 Folio 943 ("lot 30"); and
(iv) Lot 49 on Plan 17900, being the whole of the land contained in Certificate
of Title Volume 1957 Folio 286,
was invalid so far as it purported to apply to those portions of lots 7 and 8
zoned urban under the Peel Region Scheme and that
portion of lot 30 zoned
industrial under the Peel Region Scheme.
- The
interests of the appellants in those portions of lots 7 and 8 zoned urban under
the Peel Region Scheme and in that portion of
lot 30 zoned industrial under the
Peel Region Scheme were not extinguished pursuant to s 179(b) of the
Land Administration Act 1997 (WA) following registration of the taking
order under s 179.
- The
appeal otherwise should be dismissed.
- Having
regard to all the circumstances, the WAPC should pay one half of the appellants'
costs in the Court of Appeal and at first
instance and one half of the
appellants' costs of this appeal.
- The
application for declaratory and other relief should otherwise be referred back
to the primary judge for determination of the
outstanding issues in accordance
with these reasons and orders.
- HAYNE J.
The facts and circumstances giving rise to this appeal are set out in the joint
reasons of French CJ, Gummow, Crennan
and Bell JJ. I need not repeat
them.
- For
the reasons their Honours give, there was power to take a part of each of lots
7, 8 and 30 for the purposes sought, but there
was not power to take the whole
of any of those lots. The taking order provided that each of those lots was
wholly taken. It directed,
so far as is now relevant, that Certificates of
Title Volume 1936 Folio 292 (lot 7), Volume 1936 Folio 291
(lot 8),
and Volume 1838 Folio 943 (lot 30) "are to be totally
cancelled and new Certificates of Title are to be issued for the
lands taken".
I agree with their Honours that the total cancellation of those Certificates of
Title and the issue of new Certificates
was beyond power.
- As
their Honours foreshadow, the want of power to take the whole of the land
comprising each of lots 7, 8 and 30 may well found
claims in personam, at
the suit of the present appellants as former registered proprietors, against the
Western Australian Planning
Commission ("the WAPC"). Questions concerning what
is alleged to be the indefeasibility of the WAPC's title having been expressly
reserved by consent of the parties (to be dealt with by the primary judge on a
further hearing of the matter) it would not be appropriate
now to express any
opinion about the availability of in personam claims.
- I
differ from their Honours about the relief that should be granted in this Court.
More particularly, I do not consider that it should
be declared that the taking
order is properly described as being "valid" or "invalid" as to part. At least
in the present context,
reference to validity or invalidity is to be understood
not just as a reference to the presence or absence of power to make the taking
order, but as a statement about the legal efficacy of the taking order. To
declare that the taking of the whole of a particular
piece of land, or the
direction to cancel wholly a Certificate of Title, is valid as to part but
invalid as to the balance, decides
that the taking or the direction is legally
effective as to part, but legally ineffective as to the balance.
- No
satisfactory foundation was established for concluding that the taking order
could be read down in its operation with respect
to a particular lot that it
provided should be wholly taken. Whereas the order could readily be given
distributive and discrete
operation with respect to each of the lots separately
identified in the Schedule to the taking order, no such distributive or discrete
operation can be given to the taking order's operation on a part of one of the
lots which the taking order provided were wholly taken.
- No
foundation for reading down the taking order in its operation with respect to
any of lots 7, 8 or 30 is provided by s 178 or s 179 of the
Land Administration Act 1997 (WA) ("the Land Act"). Those provisions
allow taking of part of an identified piece of land; they allow preservation of
specified interests in land
affected by a taking order. But the taking order
now in question was expressed as taking the whole of each of lots 7, 8 and
30; it was not expressed as taking part. The taking order now in question did
not seek to preserve any relevant interest in the
land comprised in any of those
lots.
- Moreover,
I consider that, in the circumstances of this case, there is no little danger
that the use of the language of validity
and invalidity may mislead. Discussing
the supposed distinction between void and voidable administrative
actions[31],
H W R Wade
observed[32]:
"[T]here is no such thing as voidness in an absolute sense, for the whole
question is, void against whom? It makes no sense to speak
of an act being void
unless there is some person to whom the law gives a remedy. If and when that
remedy is taken away, what was
void must be treated as valid, being now by law
unchallengeable."
The terms and operation of the taking order at issue in the present appeal
intersect with a system of title by registration. In
accordance with the taking
order, the WAPC was registered as proprietor of the whole of each of
lots 7, 8 and 30 on 8 August
2003. The critical question for the
ultimate resolution of the appellants' claim is whether a remedy, in the form of
claims in personam,
is available to undo what has been done in reliance upon the
direction in the taking order. Regardless of whether the taking order
was
"registered", or registered under provisions made by the Transfer of Land Act
1893 (WA), the critical step the appellants need undone is the registration
of the WAPC as registered proprietor of each of the lots in
question. Only
after the question about availability of a remedy to achieve that end has been
answered will it be appropriate and
possible to describe the relevant direction
in the taking order, in so far as it applied to lots 7, 8 and 30, as
"invalid",
"valid", or "valid in part". Invalidity in this case turns on
whether there is a remedy for what was done without power.
- I
would therefore make orders that the appeal to this Court be allowed. Having
regard to the limited relief sought by the appellants
in their Notice of Appeal
to this Court, so much of order 1 of the Court of Appeal made on
17 October 2008 as dismissed
their appeal to that Court and order 5 of
those orders should be set aside. In their place there should be orders that:
(a)
the appeal to that Court is allowed; (b) the orders of
Le Miere J made on 23 February 2007 are set aside; and
(c) there
should be a declaration that the WAPC had no power to take so much of the land
described in Certificate of Title Volume 1936
Folio 292 (lot 7),
Certificate of Title Volume 1936 Folio 291 (lot 8), or Certificate of
Title Volume 1838 Folio
943 (lot 30) as was not reserved land and
accordingly that the direction in the taking order made on 5 August 2003,
that
Certificates of Title Volume 1936 Folio 292, Volume 1936 Folio 291 and
Volume 1838 Folio 943 be totally cancelled and new Certificates
issued, was
beyond power. In my opinion, the WAPC should pay the appellants' costs both in
this Court and in the Court of Appeal.
I consider that the appellants have
substantially succeeded on the issues thus far argued and costs should follow
that event. The
costs of trial should abide the outcome of the further
litigation of the matter. In accordance with the agreement of the parties
reserving the issues of indefeasibility there should be a further consequential
order remitting the proceedings to the trial judge
for further hearing and
determination of the remaining issues in the proceedings.
[1] Pursuant to s 63 of the
Transfer of Land Act, certificates of title are conclusive evidence that the
WAPC is the proprietor of the land with an estate of fee simple.
[2] This Act was repealed by the
Planning and Development (Consequential and Transitional Provisions) Act
2005 (WA) but the parties agreed that there is no material difference
in the replacement provisions.
[3] Mandurah Enterprises Pty Ltd v
Western Australian Planning Commission [2007] WASC 43.
[4] Mandurah Enterprises Pty Ltd v
Western Australian Planning Commission [2008] WASCA 211; (2008) 38 WAR 276.
[5] Livingston v Commissioner of
Stamp Duties (Q) [1960] HCA 94; (1960) 107 CLR 411 at 446; [1960] HCA 94.
[6] This Act was repealed by the
Planning and Development (Consequential and Transitional Provisions) Act
2005 (WA).
[7] Defined in s 2 of the Public Works
Act.
[8] See Thompson v Randwick
Corporation (1950) 81 CLR 87; [1950] HCA 33 ("Thompson"); Marshall
v Director General, Department of Transport (2001) 205 CLR 603; [2001] HCA
37 ("Marshall").
[9] Walker Corporation Pty Ltd v
Sydney Harbour Foreshore Authority [2008] HCA 5; (2008) 233 CLR 259 at 269-270 [29]- [30]
per Gleeson CJ, Gummow, Hayne, Heydon and Crennan JJ; [2008] HCA 5; R
& R Fazzolari Pty Ltd v Parramatta City Council [2009] HCA 12; (2009) 237 CLR 603 at
619 [41] per French CJ; [2009] HCA 12.
[10] Clissold v Perry [1904] HCA 12; (1904)
1 CLR 363 at 373 per Griffith CJ; [1904] HCA 12; Western Australian Planning
Commission v Temwood Holdings Pty Ltd [2004] HCA 63; (2004) 221 CLR 30 at 49 [43] per
McHugh J; [2004] HCA 63. See also the remarks of Gaudron J in
Marshall [2001] HCA 37; (2001) 205 CLR 603 at 623 [37]- [38].
[11] Mandurah Enterprises Pty Ltd
v Western Australian Planning Commission [2008] WASCA 211; (2008) 38 WAR 276 at 285 [41].
[12] Mandurah Enterprises Pty Ltd
v Western Australian Planning Commission [2008] WASCA 211; (2008) 38 WAR 276 at 286 [42]- [46]
per McLure JA.
[13] Second Reading Speech, Western
Australia, Legislative Assembly, Parliamentary Debates (Hansard), 21
November 1957 at 3442.
[14] [1950] HCA 33; (1950) 81 CLR 87 at 105-106 per
Williams, Webb and Kitto JJ.
[15] At [35].
[16] [1950] HCA 33; (1950) 81 CLR 87 at 105-106 per
Williams, Webb and Kitto JJ.
[17] Mandurah Enterprises Pty Ltd
v Western Australian Planning Commission [2008] WASCA 211; (2008) 38 WAR 276 at 288 [60] per
McLure JA.
[18] [1950] HCA 33; (1950) 81 CLR 87 at 105-106 per
Williams, Webb and Kitto JJ.
[19] The language derives from
s 161(1) of the Land Act, set out above. See Mandurah Enterprises Pty
Ltd v Western Australian Planning Commission [2008] WASCA 211; (2008) 38 WAR 276 at 303
[138]- [139].
[20] Mandurah Enterprises Pty Ltd
v Western Australian Planning Commission [2008] WASCA 211; (2008) 38 WAR 276 at 306 [157].
[21] Railway Act, s 4(1).
[22] Public Works Act,
s 2(21).
[23] Public Works Act,
s 2(22).
[24] The WAPC was the acquiring
authority; the WAGRC, that is the Western Australian Government Railways
Commission, was the constructing
and operating authority. It should also be
noted that the Public Transport Authority became the successor to the WAGRC
between the
making of the original report and the making of the taking
order.
[25] [1968] HCA 17; (1968) 118 CLR 171 at 175 per
Barwick CJ, Kitto, Taylor and Owen JJ; [1968] HCA 17, citing Board of Fire
Commissioners (NSW) v Ardouin [1961] HCA 71; (1961) 109 CLR 105 at 118 per Kitto J; [1961]
HCA 71; see also Marshall [2001] HCA 37; (2001) 205 CLR 603 at 626-627 [47] per McHugh
J.
[26] At [28] above.
[27] [1967] 1 AC 569 at 585. See
also Bahr v Nicolay [No 2] [1988] HCA 16; (1988) 164 CLR 604 at 637-638 per Wilson and
Toohey JJ, 653-654 per Brennan J; [1988] HCA 16.
[28] Transfer of Land Act,
ss 166 and 166A; see also the definition of "lot" in s 3(1) of the Land
Act, and in s 2(1) of the Planning Act.
[29] [1952] HCA 42; (1952) 87 CLR 126 at 142 per
Dixon CJ, Webb and Kitto JJ; [1952] HCA 42; see also Thames Water Authority v
Elmbridge Borough Council [1983] QB 570 at 577-581 per Dunn LJ, 583-585 per
Dillon LJ, 585-586 per Stephenson LJ.
[30] [2006] HCA 31; (2006) 225 CLR 516 at 530 [43]
per Gleeson CJ, Gummow, Hayne, Heydon and Crennan JJ; [2006] HCA 31.
[31] H W R Wade,
"Unlawful Administrative Action: Void or Voidable?", (1967) 83 Law
Quarterly Review 499 at 507-515 ("Wade"). See also Minister for
Immigration and Multicultural Affairs v Bhardwaj (2002) 209 CLR 597 at 643
[144]; [2002] HCA 11.
[32] Wade at 512.
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