Hume Coal Pty Limited v Alexander (No 3)

Hume Coal Pty Limited commenced proceedings against the Alexanders, seeking a declaration that it had a right to use a certain carriage way to access land for prospecting purposes, and an injunction to prevent the Alexanders and any third parties from interfering with its use of the carriage way. The dispute arose out of an exploration licence held by Hume Coal and an access arrangement it had entered into with a third party, Robert Koltai. The Alexanders opposed the claim and cross-claimed for an injunction restraining Hume Coal from using the carriage way.

The court was required to determine whether Hume Coal had a right to use the carriage way, and if so, whether it could be restrained from doing so by the Alexanders. The court also had to determine whether the Alexanders could be compelled to take reasonable steps to prevent third parties from interfering with Hume Coal’s use of the carriage way. In determining these questions, the court had to interpret the terms of the access arrangement, the relevant provisions of the Mining Act 1992, and the nature of the rights conferred by the exploration licence.

The court found that Hume Coal was entitled to use the carriage way to access the land for prospecting purposes, and that the Alexanders were unable to prevent it from doing so. The court held that the Alexanders had no proprietary interest in the carriage way and that Hume Coal’s rights under the access arrangement took precedence over any rights the Alexanders may have had to exclude others from the carriage way. The court also found that the Alexanders were required to take reasonable steps to prevent third parties from interfering with Hume Coal’s use of the carriage way. The court made the orders set out above.

The court reserved the question of costs and ordered that all exhibits be returned.