Minister for Local Government v Blue Mountains City Council

The Minister for Local Government sought to appeal a decision of the Supreme Court of New South Wales, which had granted an interim injunction restraining the Minister from appointing an administrator to the Blue Mountains City Council. The core of the dispute concerned the jurisdiction of the Supreme Court to grant injunctive relief in circumstances where the Minister was proposing to exercise powers under the *Local Government Act 1993* (NSW) to suspend a council and appoint an administrator.

The legal issues before the Court of Appeal were whether the Land and Environment Court's Class 4 jurisdiction was exclusive, thereby precluding the Supreme Court from entertaining the application for injunctive relief. Further, the Court considered whether the Supreme Court had erred in granting an interim injunction, particularly in relation to the requirements for an ex parte application and the onus on the moving party to renew such an order. The Court also examined the substantive grounds for the Minister's proposed action, specifically whether the Minister reasonably believed the appointment of an administrator was necessary to restore the proper or effective functioning of the council, and whether a factual error in the Minister's notification to the Council vitiated the exercise of this power.

The Court of Appeal held that the Land and Environment Court's Class 4 jurisdiction was not exclusive in a manner that would prevent the Supreme Court from granting injunctive relief. The Court reasoned that the Supreme Court retained its inherent jurisdiction to grant such relief, even where the Land and Environment Court might also have jurisdiction. Regarding the substantive grounds, the Court found that there was a serious question to be tried as to whether the Minister had formed the requisite belief for the appointment of an administrator, particularly in light of a factual error in the notification provided to the Council. The Court allowed the appeal, setting aside the interim injunction previously granted by the Supreme Court.