Owners Of Strata Plan 58161 and Hanssen Pty Ltd [No 2]

The Owners of Strata Plan 58161 brought an action against Hanssen Pty Ltd in the State Administrative Tribunal (SAT) under the Building Services (Complaint Resolution Administration) Act 2011 (WA), seeking a building remedy order. Hanssen challenged the SAT's jurisdiction, arguing the proceedings fell within federal jurisdiction. The SAT upheld Hanssen's challenge, and the Owners appealed to the Supreme Court of Western Australia. Hanssen cross-appealed, and the Supreme Court remitted the matter to the SAT to determine jurisdictional issues. Both parties appealed to the High Court.

The primary legal issue was whether the SAT had jurisdiction to hear and determine the complaint, given the potential federal jurisdiction under the Commonwealth Constitution. Specifically, the Court had to determine whether the claim or defence was genuinely raised and not incapable of legal argument. The Court also had to consider the incorporation of Hanssen under the Corporations Act and its impact on federal jurisdiction. Additionally, the Court examined whether the SAT's opinion on the jurisdictional claim was legally arguable, despite a prior rejection by an intermediate court of appeal.

The High Court held that the SAT's jurisdiction was correctly determined by considering whether the claim or defence was genuinely raised and not incapable of legal argument. The Court found that the incorporation of Hanssen under the Corporations Act did not bring the proceedings within federal jurisdiction. Furthermore, the Court concluded that the jurisdictional claim was not incapable of legal argument, despite the earlier decision by the intermediate court of appeal. The Court emphasised that the SAT could form an opinion on the jurisdictional claim and that such an opinion was legally arguable.

The Court allowed the appeal, set aside the orders of the Supreme Court, and remitted the matter to the SAT for reconsideration in light of the Court's decision. The Court also allowed Hanssen's cross-appeal, setting aside the orders of the Supreme Court in relation to the cross-appeal, and similarly remitted the matter to the SAT for reconsideration. The Court did not make any further orders regarding the jurisdictional issues.