MM Constructions (Aust) Pty Ltd v Port Stephens Council

Case [2012] NSWCA 417


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: MM Constructions (Aust) Pty Ltd v Port Stephens Council [2012] NSWCA 417
Hearing dates:20 and 21 September 2012
Decision date: 19 December 2012
Before: Allsop P at [1];
Basten JA at [203];
Bergin CJ in Eq at [229]
Decision:

Appeal dismissed with costs.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords:

TORTS - negligence - duty of care - economic loss - local government - processing and assessment of development application - no relevant reliance or assumption of responsibility - no vulnerability - posited duty not conformable with statutory scheme - lack of coherence with administrative law - no duty to avoid foreseeable economic loss

TORTS - misfeasance in public office - local government officer - processing and assessment of development application - credit findings by primary judge - no failure by primary judge adequately to explain credit findings
Legislation Cited: Civil Liability Act 2002 (NSW), s 43A
Corporations Act 2001 (Cth)
Environmental Planning and Assessment Act 1979 (NSW), s 5, s 79C, s 82, s 96, s 97
Land and Environment Court Act 1979 (NSW)
Real Property Act 1900 (NSW)
Supreme Court Act 1970 (NSW), s 69
Cases Cited: Caledonian Collieries Ltd v Spiers [1957] HCA 14; 97 CLR 202
Crimmins v Stevedoring Industry Finance Committee [1999] HCA 59; 200 CLR 1
Fox v Percy [2003] HCA 22; 214 CLR 118
Giannarelli v Wraith [1988] HCA 52; 165 CLR 543
Goodrich Aerospace Pty Limited v Arsic [2006] NSWCA 187; 66 NSWLR 186
Goose v Wilson Sandford & Co [1998] EWCA (Civ) 245
Kuru v New South Wales [2008] HCA 26; 236 CLR 1
L Shaddock & Associates Pty Ltd v Council of the City of Parramatta (No 1) [1981] HCA 59; 150 CLR 225
Mabo v Queensland [1988] HCA 69; 166 CLR 186
McGlen-McLeod v Galloway [2012] NSWCA 368
McGovern v Ku-Ring-Gai Council [2008] NSWCA 209; 72 NSWLR 504
Mitchell v Cullingral Pty Ltd [2012] NSWCA 389
MM Constructions (Aust) Pty Ltd v Port Stephens Council (No 6) [2011] NSWSC 1613
Modbury Triangle Shopping Centre Pty Ltd v Anzil [2000] HCA 61; 205 CLR 254
Monie v Commonwealth of Australia [2005] NSWCA 25; 63 NSWLR 729
NAIS v Minister for Immigration and Multicultural and Indigenous Affairs [2005] HCA 77; 228 CLR 470
New South Wales v Paige [2002] NSWCA 235; 60 NSWLR 371
Northern Territory v Mengel [1995] HCA 65; 185 CLR 307
Precision Products (NSW) Pty Ltd v Hawkesbury City Council [2008] NSWCA 278; 74 NSWLR 102
Stuart v Kirkland-Veenstra…

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AGLC
MM Constructions (Aust) Pty Ltd v Port Stephens Council [2012] NSWCA 417
Case
[2012] NSWCA 417
Decision Date

CaseChat Overview and Summary

MM Constructions (Aust) Pty Ltd appealed to the Court of Appeal of New South Wales against a decision of the primary judge who had dismissed its claims against Port Stephens Council. The dispute concerned the council's processing and assessment of a development application, with MM Constructions alleging negligence and misfeasance in public office.

The Court of Appeal was required to determine whether the council owed MM Constructions a duty of care to avoid economic loss arising from the assessment of its development application. It also had to consider whether any officer of the council had committed the tort of misfeasance in public office, and whether the primary judge had adequately explained her credit findings in relation to the evidence presented.

The Court of Appeal found that no duty of care was owed by the council to MM Constructions to avoid foreseeable economic loss. Applying established principles, the court held that there was no relevant reliance by MM Constructions on the council, nor any assumption of responsibility by the council that would give rise to such a duty. Furthermore, the court found that MM Constructions was not vulnerable in a way that would justify imposing a duty of care, and that the posited duty was not conformable with the statutory scheme governing development applications, nor coherent with administrative law principles. Regarding the misfeasance claim, the court found no error in the primary judge's credit findings.

The appeal was dismissed with costs.

Orders

Orders of the court

Appeal dismissed with costs.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

BERGIN CJ

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Ratio Decidendi

Legal Principle Established

Established by: BERGIN CJ

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