Douglas v Water Administration Ministerial Corporation

The plaintiff, Douglas, brought proceedings against the Water Administration Ministerial Corporation (WAMC) in the Supreme Court of New South Wales. The dispute concerned the WAMC's decision to refuse Douglas's application for a water access licence under the *Water Act 1912* (NSW). Douglas sought to challenge this refusal, arguing that the WAMC had acted unlawfully in its determination. The matter proceeded to the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether the WAMC had properly exercised its discretion in refusing Douglas's application for a water access licence. Specifically, the court had to consider whether the WAMC had taken into account irrelevant considerations or failed to take into account relevant considerations when making its decision, and whether the decision was otherwise so unreasonable that it could be characterised as an error of law.

The Court of Appeal found that the WAMC had erred in law by failing to consider the specific circumstances of Douglas's application and by applying a policy that was not authorised by the *Water Act 1912*. The court held that the WAMC's discretion was not unfettered and that it was required to consider the merits of each individual application. The court emphasised that administrative decision-makers must act in accordance with the statutory powers conferred upon them and that decisions must be based on relevant considerations.

The Court of Appeal allowed Douglas's appeal, set aside the WAMC's decision to refuse the licence, and remitted the matter back to the WAMC for reconsideration according to law.