City of Perth v Crystal Park Ltd

The City of Perth appealed to the High Court of Australia against a decision of the Supreme Court of Western Australia concerning the ratability of certain land. The dispute arose when the City of Perth sought to levy rates on Crystal Park Ltd. for its occupation of a portion of a public reserve. Crystal Park Ltd. had leased this portion from the State Gardens Board, a statutory unincorporated body appointed to control and manage the reserve. The company objected to the rates, leading to the legal proceedings.

The central legal issue before the High Court was whether the land occupied by Crystal Park Ltd. was ratable property under the Municipal Corporations Act 1906-1938 (W.A.). Specifically, the court had to determine if the land fell within an exemption provided by section 380(5) of that Act, which exempted "land vested in any board under the Parks and Reserves Act, 1895, or in trustees for public resort and recreation." The court also considered the effect of an Order in Council purporting to vest the land in the State Gardens Board under the Land Act 1933-1937 (W.A.).

The High Court, by a majority (Starke and Williams JJ., with Rich A.C.J. doubting), held that the land was exempt from rating. Starke J. reasoned that section 380(5) of the Municipal Corporations Act referred to land vested in a board appointed under the Parks and Reserves Act, not necessarily vested by that Act itself. He concluded that the land in question, having been vested in the State Gardens Board by an Order in Council made under the Land Act, satisfied this condition. Williams J. adopted a broader interpretation of "vested," finding it sufficient that the State Gardens Board had control and management of the land, and that the Order in Council, despite potential technical issues, effectively vested the land in the board for the purposes of the exemption. The court applied the principle from *Municipality of South Perth v. Hackett* and found that the lease of the land for private gain did not remove the exemption.

Consequently, the High Court dismissed the City of Perth's appeal, affirming the decision of the Supreme Court of Western Australia. The land occupied by Crystal Park Ltd. was deemed not ratable, and judgment was entered in favour of the defendant and the third party.