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SAUNDERS v SOUTH CANBERRA HOLDINGS PTY LTD ACN 606 747 602 (Appeal) [2023] ACAT 71 (17 November 2023)
Last Updated: 17 November 2023
ACT CIVIL & ADMINISTRATIVE TRIBUNAL
SAUNDERS v SOUTH CANBERRA HOLDINGS
PTY LTD ACN 606 747 602 (Appeal) [2023] ACAT 71
AA 1/2022 (RT 319/2021)
Catchwords: APPEAL – residential tenancies – whether
structure is a fixture – who bears the evidentiary onus – whose
intention is relevant
and when it must be assessed – degree of annexation
– mode and structure of annexation – whether removal would
cause
damage – object or purpose of annexation – nature of property
subject to annexation – better enjoyment of
land – whether item to
be in position permanently or temporarily – structure is a fixture owned
by appeal respondent
– whether the structure is a mobile home or
manufactured home under the Act – nature of agreement – whether the
appellant is under an occupancy agreement or residential tenancy – whether
the right of the appellant to occupy the site has
been terminated and the effect
of this – which version of the Act applied to the agreement and the notice
of termination –
appeal allowed
Legislation cited: Legislation Act 2001 ss 75B, 84
Residential Tenancies Act 1997 ss 6A, 6B, 6F, 71C, 71E, 71EA, 71EK, 83,
Part 5A, Dictionary, Sch 1
Residential Tenancies Amendment Act 2020 (No 2)
Road Transport (Vehicle Registration) Act 1999
Cases cited: Agripower Barraba Pty Ltd v Blomfield [2015] NSWCA
30
Australian Provisional Assurance Co Ltd v Coroneo [1938] NSWStRp 35; (1938) 38 SR (NSW) 700
AWF Prop Co 2 Pty Ltd v Ararat Rural City Council [2020] VSC 853
Bangura & Fan [2013] ACAT 38
Billing v Pill [1954] 1 QB 70
Carr v Finance Corporation of Australia (No. 2) [1982] HCA 43; (1982) 150
CLR 139
Darmanin v Cowan [2010] NSWSC 1118
Elitestone Ltd v Morris [1997] UKHL 15
Eon Metals NL v Commissioner of State Taxation (WA) (1991) 22 ATR 601
Holland v Hodgson [1872] UKLawRpCP 24; (1872) L.R. 7 C.P. 328
Litz v National Australia Bank Ltd [1986] ANZ ConvR 883
May v Ceedive [2006] NSWCA 369
Metal Manufacturers Ltd v Commissioner of Taxation [1999] FCA 1712
N.H. Dunn Pty Ltd v L.M. Ericsson Pty Ltd (1979) 2 BPR 9241
National Australia Bank Limited v Blacker [2000] FCA 1458
National Dairies WA Ltd v Commissioner of State Revenue [2001] WASCA 112
Power Rental Op Co Australia, LLC v Forge Group Power Pty Ltd (in liq)
(receivers and managers appointed) [2017] NSWCA 8
Reid v Smith [1905] HCA 54; (1905) 3 CLR 656
Rocks v Southside Village [2018] ACAT 40
Saunders v South Canberra Holdings Pty Ltd ACN 606 747 602 [2023] ACAT
34
South Canberra Holdings Pty Ltd ACN 606 747 602 v Saunders [2021] ACAT
109
South Canberra Holdings Pty Ltd ACN 606 747 602 v Saunders [2022] ACAT
15
SPIC Pacific Hydro Pty Ltd v Chief Commissioner of State Revenue [2021]
NSWSC 395
State of New South Wales v Carver [2023] NSWSC 828
TEC Desert Pty Ltd v Commissioner of State Revenue [2010] HCA 49
Yallingup Beach Caravan Park v Valuer-General (1994) 11 SR (WA) 355
Tribunal: Temporary Presidential Member Prof P Spender
Senior Member R Orr KC
Date of Orders: 17 October 2023
Date of Reasons for Decision: 17 October 2023
AUSTRALIAN CAPITAL TERRITORY )
CIVIL & ADMINISTRATIVE TRIBUNAL ) AA 1/2022
BETWEEN:
KAYE SAUNDERS
Appellant
AND:
SOUTH CANBERRA HOLDINGS PTY LTD
ACN 606 747
602
Respondent
APPEAL TRIBUNAL: Temporary Presidential Member Prof P Spender
Senior Member R Orr KC
DATE: 17 November 2023
ORDER
The Tribunal orders that:
- The
appeal is allowed.
- The
decisions dated 11 November 2021 and 13 January 2022 are set aside.
- The
agreement dated 25 January 2013 between the appellant and respondent is
terminated with effect from 17 November 2023.
- The
appellant must give the respondent vacant possession of the site by 18 December
2023.
- The
structure erected on the site is a fixture. The obligation of the appellant to
give vacant possession by 18 December 2023 does
not require the appellant to
remove the structure, or to pay for or otherwise facilitate the removal of the
structure.
- The
Tribunal will hear the parties on the question of costs. The appellant and
respondent may make an application for costs by 1 December
2023, supported by
any evidence and submissions. The other party may respond to that application by
15 January 2024, with any evidence
and submissions. The Tribunal will determine
any application on the papers, unless an application is made for a hearing by a
party,
and the Tribunal makes an order to this
effect.
......................................
Temporary
Presidential Member Prof P Spender
For and on behalf of the Tribunal
REASONS FOR DECISION
- In
the reasons below, a reference to ‘ACAT’ or ‘tribunal’
refers to the ACT Civil and Administrative Tribunal
generally, whereas
‘Tribunal’ refers to the presently constituted tribunal. When
referring to the first instance decisions,
the Tribunal uses the expression
‘original proceedings’, ‘Original Tribunal’ or
‘Senior Member’.
Background
- Kaye
Saunders (Ms Saunders, original respondent, appellant) is a
long-term occupant of a site (site) at the Canberra South Motor Park in
Fyshwick (Southside Village) under a ‘licence to occupy’
dated 25 January 2013 (agreement). There is a structure on the site
(structure) in which Ms Saunders lived from around January 2003. South
Canberra Holdings Pty Ltd (South Canberra, original applicant,
appeal respondent) is the Crown lessee and current operator of the
Southside Village.
- In
summary terms, on 22 September 2020 Southside Village served a Notice of
Termination of Occupation Agreement on Ms Saunders seeking
vacant possession by
31 March 2021 (notice of termination). Ms Saunders did not give such
vacant possession.
- The
nature of the relationship between the parties and the right to terminate was
governed by the Residential Tenancies Act 1997 (RT Act). This Act
draws a distinction between a residential tenancy agreement and an occupancy
agreement. For some of the relevant period,
the Act provided, in summary, that a
residential tenancy agreement does not include an agreement for the right to
occupy a site in
a residential park for a manufactured home or mobile home. Part
5A of the RT Act was amended substantially by the
Residential Tenancies Amendment Act 2020
(No 2) (Amendment Act) with the relevant provisions coming into
effect on 3 March 2021. The Amendment Act added section 71EK, which
provided that a party
may only terminate an occupancy agreement for specified
reasons.
- Following
the language used in the parties’ submissions in the appeal, the relevant
provisions of the RT Act that operated after
the Amendment Act came into effect
are referred to below as the ‘New
Legislation’.[1] The version of
the RT Act that applied before the date the Amendment Act came into effect is
referred to as the ‘Old
Legislation’.[2] The appellant
argued that the arrangements between the parties are governed by the New
Legislation. Conversely, the appeal respondent
contended that the Old
Legislation applies.
- Southside
Village filed an application for resolution of a dispute under the RT Act in
the tribunal on 14 April 2021, seeking an order for termination and vacant
possession. In these proceedings, the Original Tribunal
gave two decisions. The
first, dated 11 November 2021, found that South Canberra’s notice of
termination dated 22 September
2020 was valid (Original Interlocutory
Decision).[3] The second, dated 13
January 2022, ordered that the occupancy agreement was terminated with effect
from 13 January 2022 and that
Ms Saunders must give vacant possession of the
site by 20 January 2022 (Original Final
Decision).[4]
- Ms
Saunders now appeals against these decisions. In a decision dated
27 September 2022, Acting Presidential Member Professor P Spender
ordered
that the Original Tribunal had erred in not allowing the parties to adduce
further evidence as to the characterisation of
the structure, and the parties
were granted leave to adduce further evidence (First Appeal
Decision).[5] The further
consideration of the appeal has proceeded on this basis.
Summary of the decision of this Appeal Tribunal
- In
this appeal, the main questions were as follows, with our summary
answers.
Is the structure a fixture, and who owns it?
- We
find that the structure is a fixture. The structure is affixed to the land to
some extent, and therefore, there is a presumption
that it is a fixture, and the
appeal respondent must lead evidence to show it is not a fixture. In our view,
the appeal respondent
has not displaced the presumption, rather the evidence
indicates that the structure is a fixture.
- The
degree of annexation and the object or purpose of annexation are relevant. The
relevant intention is assessed objectively at the
time of annexation; the
relevant intention is not the subjective intention of the current parties.
- The
affixation is minor, but the structure is not easily moved and re-erected.
- The
purpose of the structure was as a home, and even though that of itself does not
determine that it is a residential dwelling house
attached to the land, it was
built for the better enjoyment of the land, and to provide a residence. In
May v Ceedive (Ceedive), the Court of Appeal of the NSW
Supreme Court held that in circumstances very similar to those here, a structure
was a fixture,
and the Tribunal finds this highly
persuasive.[6]
- Therefore,
the appeal respondent has not overcome the presumption and shown that the
structure is not a fixture. As the structure
is a fixture attached to the land,
the appeal respondent owns the structure.
- These
findings are sufficient to allow the appeal. We consider the other issues in
case they are relevant.
Was the basis on which Ms Saunders occupied the site a
residential tenancy agreement or an occupancy agreement?
- The
Original Tribunal found that Ms Saunders occupied the premises under an
occupancy agreement, and we do not find there was an error
in this respect. Even
if this is wrong, the appellant now seeks an order terminating any residential
tenancy agreement.
What version of the Residential Tenancies Act 1997 applies to
the purported termination?
- The
Original Tribunal found that the Old Legislation as of 22 September 2020, the
date the Notice of Termination of Occupation was
issued, applied to the
termination. We do not find that the appellant has established that there was an
error in this respect.
Was the notice of termination valid?
- The
Original Tribunal found that the notice of termination was valid. We do not
think that the appellant has established that there
was an error in this
respect.
What orders should be made?
- The
orders that should be made are set out above.
Original Tribunal’s Decision
- As
noted, the Original Tribunal’s decisions were that South Canberra’s
notice of termination dated 22 September 2020 was
valid, and that Ms Saunders
must give vacant possession of the site by 20 January 2022. The reasons for
these decisions are set out
in detail in the Original Interlocutory Decision and
the Original Final Decision, and discussed in the First Appeal Decision. In
summary, the decisions were:
(a) The licence to occupy was an occupancy agreement under the RT
Act.[7]
(b) While the licence to occupy provided for one week’s notice prior to
termination, in one place, and one hour’s notice,
in another, it cannot
have been intended that these applied to an occupancy of this
type.[8] Rather reasonable notice was
required. [9] The more than six
months’ notice provided in this case was
reasonable.[10]
(c) The occupancy principles in section 71EA of the Residential Tenancy Act
commenced on 3 March 2021, but these did not apply here
because they did not
have retrospective effect and South Canberra had an accrued right to terminate
under section 84(2) of the Legislation Act 2001 (Legislation
Act).[11]
(d) It was appropriate in the circumstances to make an order for termination and
vacant possession.[12]
First Appeal Decision
- As
noted, the First Appeal decision held that the Original Tribunal erred in not
allowing the parties to adduce further evidence as
to the characterisation of
the structure. The parties were therefore granted leave to adduce further
evidence regarding the characterisation
of the structure on the
site.[13]
Appeal documents
- The
appellant relied on an Application for Appeal dated 19 January 2022
(Application for Appeal). The appellant contended that there were two
broad grounds for the appeal:
(a) Ground 1: The Original Tribunal failed to properly exercise its
jurisdiction.
(b) Ground 2: The Original Tribunal failed to properly apply the RT Act.
- Before
the hearing, the appellant provided a written submission dated 21 February
2022 and a reply dated 21 March 2022. The appellant
later provided submissions
dated 13 February 2023 and a reply dated 15 March 2023. The appellant also
provided a statement by Ms
Kaye Saunders dated 14 March 2023 (which became
exhibit A1).
- The
appeal respondent provided submissions dated 14 March 2022 and later
7 March 2023. The appeal respondent also provided a statement
by Ms Marie
Boustani dated 15 March 2023 (which became exhibit R1) and a statement by
Mr Kevin Trayling dated 12 December 2021 (which became exhibit R2).
- A
hearing was held on 8 March 2023. At this hearing, there was a view of the site
and the structure. After some discussion, that hearing
was adjourned.
- The
hearing continued on 17 March 2023. At this hearing, counsel for the parties
made opening submissions.[14] Ms
Saunders gave evidence and was
cross-examined.[15] Ms Boustani gave
evidence but was not required for
cross-examination.[16] Mr Trayling
gave evidence and was
cross-examined.[17]
- At
the end of the hearing, the Appeal Tribunal made orders that allowed the parties
to provide further submissions. The appellant
provided submissions dated 14
April 2023; the appeal respondent submissions dated 5 May 2023; and the
appellant a reply dated 9 May
2023.
Summary of the parties’ arguments
- A
summary of the parties’ arguments is set out below, but their submissions
and the evidence they led are examined in more detail
under the heading
“Consideration”.
Summary of appellant’s arguments
- These
have been complicated proceedings in which the issues in dispute and the
positions of the parties have changed. The Appeal Tribunal
will take into
account all the submissions of the appellant, but the most relevant documents
are the submissions of the appellant
dated 13 February 2023, the submissions
made at the hearing, and the submissions of the appellant dated 14 April 2023
and in reply
dated 9 May 2023.
- The
appellant’s position was that the structure is a fixture which does not
belong to the appellant.[18] The
appellant did not provide any expert evidence on this point, but argued that, on
the basis of the photos provided by her, and
those of Mr Trayling, and the
evidence of Mr Trayling, the structure was a fixture because it: has windows and
doors; has a tiled
floor embedded in a concrete slab; has posts, door frames and
other structural elements which are also embedded; is screwed together;
has a
roof; and could not be readily moved in one
piece.[19]
- There
was significant discussion of the relevance of the intention of the parties to
this issue. The appellant argued that while an
affixer’s intention might
carry limited weight, here the appellant was not the builder, and her subjective
view is irrelevant
to the characterisation of the
structure.[20] Based on an analysis
of the authorities, the appellant argued that:
(a) The characterisation of something as a chattel or a fixture is fundamentally
an objective assessment.
(b) The affixer’s intention can have some relevance where there might be
some doubt as to the proper characterisation. The
case for having regard to the
actual intention will be stronger where there is a common actual intention
between the affixer and
the entity that owns the land.
(c) Inasmuch as the affixer’s intention might have some relevance, the
subjective intentions of third parties, in this case
the appellant and the
appeal respondent, will never be
relevant.[21]
- The
appellant referred to a range of case law and relied in particular on the
decision of the NSW Court of Appeal in Ceedive, which concerned a
brick miner’s cottage built around 1910. Mr May bought the house in 1969
and paid rent for the land on which
it sat. The appellant relied on the finding
of the Court of Appeal in that case that, notwithstanding the subjective
intention of
Mr May, the house was, in law, a
fixture.[22]
- The
appellant argued the structure was meant to be used as a home; was built without
any intention that it be moved; was built for
the better enjoyment of the land
as opposed to the better enjoyment of the structure’s constituent parts;
and that it was not,
in fact, easy to
move.[23]
- The
appellant argued that the relevant date for the operation of the RT Act in
relation to the termination was 31 March 2021, the
date when the notice period
elapsed, at which time there was only an accrued right for the appeal respondent
to come to the tribunal
and ask for an
order.[24] This is contrary to the
decision of the Original Tribunal, which was that the relevant date was the date
of the notice of termination,
since at that time the appeal respondent had an
accrued right to terminate.[25]
However, the appellant argued that if the previous version of the Act applied,
there was nevertheless a right to terminate the
agreement.[26]
- The
relevant terms used in the RT Act were ‘mobile home’ and
‘manufactured home’. As to whether the structure
is a mobile home,
the appellant acknowledged that the structure contains what was once a caravan.
However, she argued that this constitutes
at most a third of the overall
structure; has no functioning wheels; and has been permanently affixed and
incorporated within the
broader
structure.[27]
- The
RT Act provides for three requirements for a manufactured
home.[28] First, that it has the
character of residential premises. It was accepted that this requirement is met.
The second was that it “is
designed, built or manufactured to be
transported from 1 place to another for use as a home”. The appellant
acknowledged that
the evidence of the appeal respondent was that the structure
could be moved, though with some effort, but that the evidence was that
it was
not designed or built to be transported from one place to another. The third
requirement was that “it is not permanently
attached to the land”.
The appellant argued the evidence was that the structure was permanently
attached to the land.[29]
- Therefore,
the appellant argued the structure was not a manufactured home or mobile home
for the purposes of the RT Act. Consequently,
it was argued the agreement was
not an occupancy agreement on this basis.
- A
significant argument of the appellant was that the agreement between the parties
was a residential tenancy agreement. The appellant
acknowledged that the
agreement uses some words which would be more akin to an occupancy agreement
than a residential tenancy. However,
the appellant contended it was appropriate
to have regard to the full nature of the agreement and the overall relationship.
In particular,
it was said that the appellant was no mere boarder or lodger, and
that she had been responsible for the site for about 20 years,
and for the
majority of this time it had been her principal place of residence. These
factors, it was argued, indicated a residential
tenancy, notwithstanding the
wording used in the
agreement.[30]
- The
appellant argued that, as the agreement was a residential tenancy agreement, and
as the appeal respondent had given 26 weeks’
notice, the tribunal had
power to terminate the agreement and it would be appropriate for the tribunal to
terminate it.[31]
- However,
the tribunal should not order the appellant to remove the structure, as she does
not own it.[32] It was also
inappropriate for the appellant to be ordered to pay the rent
arrears.[33] We note that the claim
for rent arrears has been
abandoned.[34]
- The
appellant argued that if, contrary to her primary submission, the tribunal finds
that the agreement was an occupancy agreement,
each of the terms of the
agreement which provide for termination are inconsistent with the Occupancy
Principles in the RT Act at
the relevant time, and therefore the appeal
respondent cannot terminate on a no cause basis, and there is no other basis to
do so.[35] There is therefore no
power to terminate the agreement on the grounds pressed by the appeal
respondent.[36] However, the
Tribunal has great difficulty with this submission, particularly in the light of
the submission just noted that, as
the agreement was a residential tenancy
agreement, and as the appeal respondent had given 26 weeks’ notice, the
tribunal had
power to terminate the agreement and it would be appropriate for
the tribunal to terminate it. We discuss this further below.
- Further,
even if the agreement is an occupancy agreement, and even if the tribunal were
to order termination, the appellant would
still not be liable for removal of the
structure because it is a
fixture.[37] It would also still not
be appropriate to order payment of the rent
arrears.[38]
Summary of appeal respondent’s arguments
- As
for the approach taken in relation to the appellant, the Appeal Tribunal will
take into account all the submissions of the appeal
respondent, but the most
relevant documents are the submissions dated 7 March 2023, the submissions made
at the hearing, and the
submissions dated 5 May 2023.
- The
appeal respondent argued that the structure was not a fixture. It relied on the
appellant’s failure to provide evidence
on this
issue.[39]
- The
appeal respondent agreed that Ceedive provides significant guidance.
Contrary to the appellant, it argued that Ceedive suggests that the
intent for the permanency of the structure is important; that whether the
structure is securely fixed is relevant;
that whether the structure can be
detached is relevant; and that a very slight fixing would support an inference
that it was not
intended to be
permanent.[40]
- Having
regard to these matters, the structure was not a fixture on the basis of five
factors. First, the appeal respondent operated
a caravan park with the features
that guests signed an occupancy agreement; this could be terminated at short
notice; guests paid
a site fee, not rent; structures are readily able to connect
and disconnect from power and water; the park provided shared amenities;
and
there were no inspections for the structures. Second, that the evidence of Mr
Trayling was that there was minimal affixation
of the structure, and third, that
there was a process for removal of the structure with minimal damage. Fourth,
the minimal affixation
supports an inference that the structure was not intended
to be permanent.[41] Fifth, prior to
the appeal, the appellant understood for 20 years that the structure was
temporary, owned by her and subject to an
occupancy
agreement.[42]
- The
appeal respondent also argued that the appellant purchased an already standing
manufactured home. The intention of the parties
was confirmed by the agreement,
which provided a licence to occupy on a weekly basis. The level of affixation
was minimal. This all
suggests that the structure is not a
fixture.[43]
- The
appeal respondent also argued that the structure was a mobile home or
manufactured home within the terms of the RT Act. A mobile
home means a caravan
or other registrable vehicle. The removal of wheels does not change that it is a
caravan. The percentage make-up
of the structure is not relevant as the
annexures were added by the appellant or the previous owner, and these annexures
could be
readily removed. The structure was registrable pending the fixing of
the wheels and removal of the
annexures.[44]
- The
structure was also said to be a manufactured home. It had the character of
residential premises. It was built to be transported
from one place to another
for use as a home, and, on the basis of the evidence of Mr Trayling, it could be
easily disassembled and
transported. It was not permanently attached to the land
on the basis of the evidence of Mr Trayling. The appellant had provided
no
expert evidence as to these
issues.[45]
- The
appeal respondent argued that the agreement was a licence to occupy on a weekly
basis, that is, an occupancy
agreement.[46]
- The
appeal respondent, before the hearing, had argued that it was the legislation as
at the date the notice of termination was issued,
which was March 2021, which
applied,[47] adopting the finding of
the Original Tribunal.[48] During
the hearing the appeal respondent took the view that it was the point in time at
which the rights were created to terminate
which was relevant, which was January
2013.[49]
- The
appeal respondent argued that it had a right to terminate under section
71E(1)(h) of the RT Act, as found by the Original
Tribunal.[50]
- In
the alternative, it had a contractual right as set out in the Agreement. This
right existed when it issued the notice of
termination.[51]
- The
appeal respondent also pointed to the policy implications if long stay caravan
park owners face the prospect of acquiring structures
built on their land by
others, who generally operate on the joint understanding that they own them, and
the park owners do
not.[52]
Consideration
Is the structure a fixture?
- In
Ceedive, Santow JA set out the rules determining whether an object has
become a fixture:
[T]he intention which determines the question
whether an object has, in law, become affixed to the land ... is at least
predominately ‘the objective intention of the person who brings
the object onto the land and affixes it there.’ That question is
determined according to rules of law
...[53]
- The
starting point under those rules of law is to identify where the onus of proof
lies, as Santow JA further stated:
If an item is affixed to
land to any extent (other than merely resting by its own weight) it is
presumed, though the presumption is rebuttable, to be a fixture. The burden of
proof lies on those who assert that such an object so resting is not a
fixture.[54]
Who bears the onus?
- The
New South Wales Court of Appeal in Ceedive defined the operation of the
presumption in strict terms – the presumption arises if the item is
affixed to the land to any
extent.[55] Therefore, at the
time of the hearing, if the party asserting that the item is a fixture has
established that some affixation has
occurred, the party asserting that it is
not a fixture must lead evidence in rebuttal.
- The
nature of the onus was explained by Ward J in Darmanin v Cowan
(Darmanin):
It seems to me that the reference in the
authorities to a party carrying an onus to establish that the purpose of
annexation either
was or was not such as to convert the chattel into a fixture
is a reference to an evidentiary onus which may be imposed upon a party,
depending upon the persuasive power in the particular circumstances of the case
of the degree of annexation to move the court to
the conclusion that the object
in question either is, or is not, a fixture and thus part of the land, that is,
it is not a legal
onus of
proof.[56]
- The
appeal respondent argued that, if the Tribunal accepts that the starting point
is that the appellant or her predecessor began
with a movable caravan with
additional structures on blocks, then the burden likely falls primarily on the
appellant.[57] The Tribunal does not
accept this argument. In the present case, there is some affixation. The
structure is affixed to the land to
some extent. It is not merely resting on its
own weight. The structure has a tiled floor which appears to some extent to be
embedded
in a concrete slab.[58] The
structure has certain posts, doorframes, and other structural elements which are
embedded within the concrete
slab.[59] The structure has a roof
which is fastened with metal fittings, which are attached in various places to
the building elements of
the
structure.[60] The appellant
testified that, other than two roofs that she added to the structure in 2005 and
2007, the alleged affixation occurred
prior to 2003 when she purchased the
structure and began occupying the
site.[61]
- The
Tribunal therefore concludes that the appeal respondent bears the onus of
establishing that structure is not a fixture. As will
be explained below, the
relevant date for assessing whether the structure is a fixture is prior to
2003.
Overall test about whether the structure is a fixture –
degree of annexation and the object or purpose of that annexation
- 60. As
stated by Conti J in NAB v Blacker (Blacker), the question
whether an item has become a fixture depends essentially upon the objective
intention with which the item was put
in
place.[62] Two considerations that
are commonly regarded as relevant to determining the intention with which an
item has been fixed to the land
are first, the degree of annexation and
secondly, the object or purpose of
annexation.[63] Conti J’s
analysis has been cited in many
cases,[64] including by the High
Court,[65] and provides a useful way
to frame the issues for consideration. However, Conti J warned that there is no
single test which is sufficient
to determine whether an item of property is a
chattel or a fixture, and the court ought to have regard to all the
circumstances of
the case in making its
determination.[66] No particular
factor has primacy and each case depends on its own
facts.[67] Sackville AJA in
Agripower Barraba Pty Ltd v Blomfield (Agripower) commented that
the factors identified by Conti J are useful guides, but none are exhaustive nor
definitive.[68] The NSW Court of
Appeal made similar comments in Ceedive, stating that the decision maker
should look at all the surrounding
circumstances.[69]
Whose intention is relevant and when must it be
assessed?
- 61. The
relevant intention must be determined by the purpose of the affixation and at
the time during which the affixation
occurs.[70] The intention is
assessed objectively, based upon the circumstances applicable at the time of
annexation rather than at any later
point of
time.[71] Therefore, the Tribunal is
required to consider the intentions of the parties to the original affixation
which occurred prior to
2003, as discussed below.
- Several
cases, particularly
Ceedive,[72] emphasise that the
relevant intention is not the subjective intention of the
parties.[73] Although evidence of
subjective intention is not completely
irrelevant,[74] the present Tribunal
considers that it is only appropriate to have regard to evidence of subjective
intention where it assists an
objective assessment. The subjective intentions of
the current parties may provide some insight into that objective assessment but
must be treated with caution where the original affixers are not the parties to
the litigation.
- The
facts in Ceedive, which are briefly set out above at [31], are
similar to the current case. The question for the court was whether the house
constituted a fixture rather than a
chattel.[75] Santow JA
stated:
[49] ... I should emphasise [that] whatever may have
been Mr May’s intention or understanding, or that of the real estate agent
with whom he dealt, if the house was in reality part and parcel of the ... land,
in other words a fixture, his view of what he was
acquiring cannot override the
legal position; that the house, as an inseverable part of the realty, could not
be bought and sold
separately from the land to which it was affixed. Moreover Mr
May’s intention could not be relevant to ... [its] status as
a fixture for
a further reason; he was not the original occupier at the time the house was
built and who dealt with the then landowner.
...
[72] ... [T]he primary judge erred in considering the intention of Mr May
to be relevant to the question of whether the house had
the initial status of a
fixture or a chattel. It was not Mr May who affixed the house to the land in the
first place but his predecessor
more than 50 years back. Therefore Mr
May’s subjective belief that he was purchasing the house, based upon the
documentation
earlier referred to, would not alter the position at law. This on
the evidence was that the house as a matter of law remained the
property of the
registered proprietor of the land.
[76]
- The
appeal respondent in the current case argued that the appellant understood for
20 years that the structure was temporary, owned
by her and subject to an
occupancy agreement.[77] The
appellant conceded that she thought she owned the structure. But this belief
does not displace a conclusion of law as to whether
the structure is a fixture
based on evidence of the objective intention of the parties at the time of
affixation, taking into account
the operation of the presumption. Similarly,
evidence of arrangements between the parties about the appellant’s tenure
at the
park are only relevant insofar as the Tribunal can draw inferences about
what arrangements preceded the appellant taking up occupation
in 2003. So, for
example, where the affixer has a limited interest in the land, the court might
be more likely to infer temporariness.
As Ward J stated in
Darmanin:
[A] limited holder would be unlikely to intend
making a “present to somebody else” (National Dairies), especially
where the
limited interest is of short or uncertain duration (Ball-Guymer v
Livantes (1990) 102 FLR 327) where a prefabricated office building,
capable of
removal albeit after some dismantling of the structure was built by a licensee
under a licence agreement terminable on
one week’s notice, was held not to
be a fixture.[78]
- The
appeal respondent provided evidence and submissions about the parties’
intentions, asserting that this material proved an
objective intention that the
structure was temporary. The parties agreed that there was a licence that stated
terms that the appellant’s
occupation was terminable on one week’s
notice. The correspondence between the appellant and Ms Hutcheson showed that
the appellant
was aware that the appeal respondent expected her to remove the
structure upon vacating the
park.[79]
- These
arrangements are relevant to the addition of the roofs by the appellant in 2005
and 2007, but by that stage the most significant
affixation had already
occurred.[80] The parties to the
original affixation may have had similar arrangements or understandings, but we
have no evidence about those arrangements,
so we simply do not know.
- It
may be that the common law in relation to fixtures should be adjusted in cases
such as this, to give greater weight to the subjective
intentions of the current
parties, where the objective and subjective intentions of the original parties
are unknown, and the subjective
intentions of the current parties have been in
place for many years and have informed their relationship and conduct for many
years.
But given the historical and more recent judicial authorities we have
discussed, it is not appropriate for this Tribunal to attempt
to change the law
in this respect.
Degree of annexation
- In
their analysis of the evidence, the parties submitted the following about the
degree of annexation.
The appellant’s submissions
- The
appellant submitted the
following:[81]
As Mr
Trayling accepted, parts of the structure are either sunk, or bolted to the
concrete slab.[82] Tiling and
pavers are affixed to that concrete. Indeed, even Mr Trayling
acknowledged:
(a) to dismantle the Structure, it would need to be reduced to building
materials,[83] or
“demolition”[84]
or “waste
product”;[85]
(b) structural elements, including tiles, nails, and glass windows would be
liable to break if the Structure were to be
dismantled;[86] and
(c) even without removing the concrete slab, the Structure would take a team
of “three labourers on site with a supervisor”
either three or four
days;[87]
(d) in order to remove the concrete slab as well (which would appear to be
necessary in circumstances where that is the floor of the
Structure), it would
take five days for the aforementioned team to
remove;[88] and
(e) ... to reconstruct the Structure elsewhere would take two
weeks.[89]
- The
appellant also noted that Mr Trayling’s witness statement did not refer to
the tiles that were affixed to the concrete floor.
Mr Trayling conceded this in
cross examination.[90]
- The
appellant contended that this evidence established that:
[T]here
is realistically nothing easy about the moving of this Structure. It would take
(including dismantling, moving the building materials
and reconstructing)
[about] three weeks and would involve breaking the Structure apart (in some
cases, literally breaking the constituent parts of the
Structure).[91]
The appeal respondent’s submissions
- The
appeal respondent said the following:
- As
to the substance of Mr Trayling’s evidence, the most salient evidence
was:
(a) [The U-bracket] would require 3-5 minutes to remove;
(b) Mr Trayling could not say whether the U-bracket was affixed with a bolt,
or simply with glue;
...
(d) A “white post” [in the structure] looks like it is
sitting on the concrete and has significant moisture and decay;
(e) Timber structures are “absolutely” sitting on the
concrete;
(f) The “pavers” or “clay bricks” were laid
haphazardly on the concrete slab, likely with mortar, and that
these would be
easy to remove;
...
(i) The timber frames ... could be easily disassembled and the screws would
take “30 seconds” to remove;
...
(p) That he made a concession that he could not definitely say how the pavers
were attached to the concrete slab.
...
- Mr
Trayling’s evidence shows that the structure is not ‘sunk
into’ the concrete with the possible exception of a
U-bracket. But even
then, no party did, or could, provide any evidence about whether the U-bracket
is bolted in, glued-on or simply
resting until an attempt to remove it is made.
In any event, Mr Trayling’s evidence is that it would be simple to remove
either
way.
- The
concrete in the structure was very likely a pre-existing car port and the
concrete had been laid before the car port was enclosed.
It is therefore highly
unlikely that any aspect of the property is “sunk in”, with the
possible exception of the U-bracket
which remains unseen.
- The
only confirmed affixation is the water pipe and electrical extension cord, both
of which can be readily removed.
...
- The
structure is not “securely fixed” in any meaningful
way.[92]
- The
appeal respondent contended overall, when applying the relevant tests, that:
- ...
Mr Trayling’s evidence is that the structure can be removed without
significantly destroying or damaging the structure or
that the structure can
“be detached without substantial injury to the thing itself or that to
which it is attached.”
...
- In
fact, a “very slight” fixing would support an inference that it was
not intended to be permanent.
- The
requirement to disassemble something to move it does not show any sort of
intention for permanency. There is additionally no aspect
of any test pointed to
by either party that a structure must be moved as a whole.
- When
assessing the cost element of the removal of the structure, the only relevant
cost is the cost of removal which has been provided
as 4 days of labour with 3
workmen. What the Appellant does with the structure after its removal is a
matter for the Appellant. There
is no evidence on foot about the relevant cost
of demolition as an alternative to relocation. Therefore, in the full
circumstances,
4 days of labour is a relatively minor cost and, as per
Rocks,[93] one that should
have always been anticipated by someone with relatively sophisticated knowledge
of the operation of occupancy agreements.
- Mr
Trayling was able to speak authoritatively about the ease of disassembly and the
steps required to do
so.[94]
Consideration of the degree of annexation
- In
a statement that has been cited in many cases, Conti J in Blacker
enumerated factors relevant to determining the degree of annexation:
(a) the mode and structure of annexation;
(b) whether removal would cause damage to the land or buildings to which the
item is attached;
(c) whether removal would destroy or damage the attached item of property;
(d) whether the cost of removal would exceed the value of the attached
property.[95]
- The
Tribunal will consider each of these factors below.
Modes and structure of annexation
- The
evidence shows that the affixation is minor. Taking into account the concessions
made under questioning, Mr Trayling’s evidence
established that the
affixation at its highest comprises, first, some timber posts in the structure
that may have been “sunk
in”[96] or are “bolted
to”[97] the concrete slab, and
secondly tiles and/or pavers that have been attached to the concrete slab. The
Tribunal finds that the structure
is not simply resting on its own weight.
- As
Jordan CJ stated in Australian Provisional Assurance Co Ltd v Coroneo
(Coroneo):
[I]f a thing has been securely fixed, and
in particular if it has been so fixed it cannot be detached without substantial
injury to the
thing itself or to that which is attached, this applies strong but
not necessarily conclusive evidence that a permanent thing was
intended.[98]
- There
are two elements here: the first is whether the structure is securely fixed. The
second is whether it cannot be detached without
substantial injury to the thing
itself or to that which it is attached.
- The
fact that the fixing is minor helps to support an inference that it was not
intended to be permanent. [99]
However, there are many cases where the degree of attachment is slight, but the
structures have been found to be fixtures. For example,
in Reid v Smith
(Reid) a wooden building that was resting on land by its own
weight was found to be a fixture because it was brought there for the purpose
of
being used as a dwelling
house.[100] As described by
Griffith CJ, the question in the case was whether “an ordinary
dwelling-house, erected upon an ordinary town
allotment ... but not fastened to
the soil remains a chattel or becomes part of the
freehold”.[101] The High
Court took into account building practices in North Queensland, where houses
were built upon piers or piles with iron plates
to break the continuity between
the structure and the ground "so that white ants may not be able to reach the
wood”.[102]
- Further,
as Jordan CJ explained in Coroneo in the quote above at [77], the concept
of ‘secure fixing’ is relative because it requires further inquiry
as to whether
it has been so fixed that it cannot be detached without
substantial injury to the thing itself. This requires a consideration of
the
further limbs of Conti J’s test in Blacker noted above at [74] as
discussed next.
Whether removal would cause damage to the land or buildings to
which the items are attached
- The
evidence does not support a finding that the land would be damaged by removal of
the structure. There may be some damage to the
concrete slab by removal of
tiles, but this does not appear to be
significant.[103]
Whether removal would destroy or damage the attached item of
property
- Mr
Trayling was confident that the structure could be relocated without significant
damage to its component parts. However, he agreed
that the windows were likely
to fracture when being removed because the glass was old and tiles would
“obviously” break
when they were being pulled
up.[104] He considered that the
external panels could be removed and reconstructed with reasonable
care.[105]
Whether the cost of removal would exceed the value of the
attached property
- As
stated above at [69] and [72], Mr Trayling gave evidence that the cost of
removing the structure with reasonable care would be
the cost of three labourers
and one supervisor for up to five days. The cost of reassembling the structure
would involve the same
personnel and take two
weeks.[106] The appeal respondent
argued that what the appellant does with the structure after its removal is a
matter for the appellant, so
the only relevant costs are the costs that would be
incurred by disassembly with reasonable care – that is five days of labour
with three labourers and one supervisor. The evidence provided at first instance
was that the cost of removal was about
$15,000.[107]
- No
evidence was led about the value of the structure either at first instance or on
the appeal. The witness statement of Mr Trayling
noted that the structure does
not comply with the definition under the Building Code of Australia as a class
1A structure –
habitable dwelling due to various problems about ceiling
height, inadequate natural light, poor ventilation, and inadequate safety
standards such as electrical
cabling.[108] The statement also
noted that the building was in a state of disrepair and
dilapidation.[109] This was
admitted by the
appellant.[110]
- The
evidence about the cost of disassembly and reassembly was primarily dealt with
by the parties in their submissions about the intention
regarding the permanence
or temporariness of the structure. This is discussed below.
Purpose of the annexation
- On
the Blacker test noted above at [60], the degree of annexation needs to
be considered together with the purpose of attachment.
Appellant’s submissions
- The
appellant submitted that the manifest purpose of the structure, which can be
ascertained objectively, is that it be used as a
home:
It has the
ordinary features of a home, including several rooms (including bedrooms, a
bathroom, a lounge, and a laundry), a back
veranda, an ordinary front door, and
a garden. Indeed, the Respondent’s own expert, Mr Trayling frequently
referred to the
Structure as being a “home” or having features which
one would find in a
“home”.[111]
- Secondly,
the appellant contended that it is “quite plain” that the structure
was built without the objective intention
of it being moved from place to
place.[112]
- In
support of the second argument, the appellant relied upon the evidence of
Mr Trayling regarding what was required to dismantle
the structure and said
that the effect of his evidence was that dismantling the structure would entail
reducing it to building materials
and demolition. Further, the timeframes
indicate that it is not a structure that was intended to be moved from place to
place. The
appellant compared the structure to the mobility of structures such
as a caravan, domestic tent or a
portacabin.[113] The appellant
said that the evidence of Mr Trayling makes it clear that there is realistically
nothing easy about moving the structure
because:
[I]t would take
(including dismantling, moving the building materials and reconstructing) about
3 weeks (in some cases, literally breaking
the constituent parts of the
structure).[114]
- The
appellant also argued that the structure was there for the better enjoyment of
the land.
This is not comparable to a situation where a machine
is tethered to the ground to ensure better operation of the machine itself.
It
is almost definitional that a home is a fixed to the ground for the better
enjoyment of that land. After all, it would be difficult
to live upon land
unless the structure provided sufficient shelter to do
so.[115]
Appeal respondent’s submissions
- The
appeal respondent argued that there was never an inference that the structure
should be permanent or anything other than a temporary
dwelling situated on a
property, the nature of which is a caravan park. The appeal respondent said that
the Tribunal can infer an
intention that the structure was only temporary based
on the appellant’s original purchase agreement and the entering into
of
the agreements referred to as a “licence to
occupy”.[116] The appeal
respondent contended that the intention of the Canberra South Motor Park, as a
trading name of the former owners, can
be adduced by examining the 2013
agreement entered into between the parties. That document, presumably prepared
by Canberra South
Motor Park, clearly evinces an intention for a “licence
to occupy on a weekly basis”. The appeal respondent contended
that it
would not be open to the Tribunal to draw from this “any inference that
there was an intention for the placement of
a permanent structure on [the site]
or that the occupant enjoyed any broader
rights”.[117]
- The
appeal respondent also invited the Tribunal to draw inferences of temporariness
from what might be described as the ‘evolution’
of the construction
of the structure, that it probably originally consisted of a caravan with an
annex that was enclosed. The appellant
conceded that about one third of the
structure consisted of a caravan which is movable. The structure was described
by the appeal
respondent as a “caravan with
annexures”.[118]
Consideration of the purpose of annexation
- 93. Conti
J in Blacker set out the “variety of considerations that may be
taken into account”.[119] We
deal with these considerations below, albeit in a different order to the
Blacker test:
(a) the nature of the property the subject of affixation;
(b) whether the attachment was for the better enjoyment of the property
generally or for the better enjoyment of the land and/or
buildings to which it
was attached;
(c) the function to be served by the annexation of the item;
(d) whether the item was to be in position either permanently or
temporarily.[120]
The nature of the property the subject of affixation
- As
stated above at [87], the appellant argued that the manifest purpose of the
structure, which can be ascertained objectively, is
that it be used as a home.
Some of the cases take a slightly different approach when the nature of the
property is a ‘home’
or ‘dwelling house’ compared with a
commercial arrangement involving, for example, plant and
equipment.[121] The representative
of the appellant argued that “it would be very hard to imagine anything
that conveys a greater degree of
permanency than something being a residential
dwelling”.[122] The
appellant relied upon statements by the House of Lords in Elitestone Ltd v
Morris
(Elitestone):[123]
If
one considers the object or purpose which the structure serves by being placed
where it is, it was clearly placed there to enable
the amenity of [the estate]
to be enjoyed through the establishment of a
residence.[124]
- The
purpose of a ‘home’ may be distinguished from, for example, a
caravan which can be moved and enjoyed in many places.
The purpose of a home is
to better enjoy the land upon which it is
constructed.[125] Insofar as this
submission contemplates a home being a way to better enjoy land, the Tribunal
agrees with this proposition. This
is discussed below. However, the Tribunal
notes the comments in Elitestone that when bringing the “individual
bits of wood onto the
site”,[126] one may infer an
intention to create a residence or home, but it does not necessarily answer the
question of whether they thereby
became “part and parcel of the
land”.[127] The court in
Ceedive agreed with the submission that “the nature of a
residential dwelling house is that it is normally regarded as part of the
[realty] on which the house is
constructed”.[128] While
there is no doubt that the present structure is a home or part of a home, the
structure may or may not be classified as a residential
dwelling house. Further,
some caution must be exercised when considering these cases in the current
context because a structure that
is a ‘home’ may have elements of
temporariness that are inconsistent with it being a fixture. Cleary the current
definitions
of ‘mobile home’ and ‘manufactured home’ in
the RT Act are examples of this.
Better enjoyment of the land
- The
appellant contended that it is objectively clear that the structure is there for
better enjoyment of the land, arguing that this
situation is “not
comparable to a situation where a machine is tethered to the ground to ensure
better operation of the machine
itself.”[129] The appeal
respondent did not make any significant submissions on this factor.
- The
Tribunal agrees that the structure was there for the better enjoyment of the
land rather than the better enjoyment of the thing
itself.
The function to be served by the annexation of the item
- It
is clear that the function served by the structure was to provide a residence or
extend an existing residence. As noted above,
the appellant
submitted:
[I]t has the ordinary features of a home, including
several rooms ( ... bedrooms, a bathroom, a lounge, and a laundry), a back
veranda,
an ordinary front door, and a
garden.[130]
- The
significance of these features was articulated by Blackburn J in Holland v
Hodgson (Holland):
Thus, blocks of stone placed one on
the top of another without any mortar or cement for the purpose of forming a dry
stone wall would
become part of the land, though the same stones, if deposited
in a builder’s yard and for convenience sake stacked on the top
of each
other in the form of a wall, would remain
chattels.[131]
Whether the item was to be in position permanently or
temporarily
- This
factor was explained by Santow J in Ceedive in the following
terms:
One important factor pointing strongly in favour of the
house being a fixture is the fact that all the evidence points to the house
being affixed with the intent that it remain in position permanently or for an
indefinite or substantial period, in this case from
at least since 1910. No
predecessor to Mr May purported to sever or remove it, nor has Mr May. There is
certainly no suggestion that
the house was intended to remain in position only
for some temporary purpose such as a mining operation that had long
ceased.[132]
- As
stated above, the Tribunal must not base its findings upon the parties’
understanding of the arrangements they had in place
from 2003 when the appellant
acquired the structure. Rather, it must draw inferences from the arrangements
that may have been in
place when the affixation occurred, which was sometime
prior to 2003. Apart from a general inference that the appeal respondent and
its
predecessor in title has been offering temporary accommodation for a long time,
there are no other inferences that can be drawn
because no evidence was
provided.
- The
appellant argued that Ceedive could not be distinguished and should be
followed.[133] Based on its
premise that the structure consists of a “caravan with annexures”,
the appeal respondent argued that the
construction of the structure in the
present case is distinguishable from the double-brick cottage in
Ceedive.[134] The appeal
respondent relied upon the decision in Yallingup Beach Caravan Park v
Valuer-General (Yallingup), where the Land Valuation Tribunal
of Western Australia needed to decide whether a park home in a caravan park was
a fixture.[135] Adopting an
objective assessment, the tribunal found that the park homes did not constitute
fixtures. The tribunal stated the following:
The facts of the
present case need to be closely considered. The park homes in question are
similar to prefabricated buildings. They
are transported in a completed state to
their respective sites. The park homes are able to be moved or transported by
way of wheels
which attach to the frame of the park home itself.
The park homes have connections of a temporary nature to drainage, water
and electricity services. The park homes rest by their own
weight on concrete
blocks on foundations which are set into the ground and are used for
(relatively) short-term accommodation, and
have been so used for some
time.
There is evidence of the subjective intention of the appellant that the
park homes not constitute part of the land but were placed
with the intention
that they be moved on a regular, if infrequent, basis.
Considering the facts above, in the context of the appropriate test, it
appears on balance that the intention that ought to be imputed
or presumed of
the appellant in relation to the particular park homes at this caravan park is
that they do not constitute fixtures
or improvements to the land. Factors which
are particularly relevant to this finding include the use for which the park
homes were
designed, the relatively slight degree of annexation to the land
(which, in any event appears to be primarily for the purpose of
stability), and
that the park homes may be removed with little or no damage either to themselves
or to the land. This conclusion
is also supported by the fact that the park
homes in question are generally of a more temporary or moveable nature than the
transportable
homes which were the subject of the decisions
above.[136]
- The
appeal respondent submitted that the decision of Yallingup dealt with a
“park home” which arguably has a greater level of affixation and
permanency than a caravan with
annexures.[137]
- The
Tribunal considers that Yallingup is clearly distinguishable because the
objective intention was that the park homes be moved from time to time. Further,
the park homes
are transported in a completed state to their respective sites
and little or no damage is done either to the park homes or the land
when they
are removed. The question about the ‘mobility’ of the structure is
addressed below.
- The
appeal respondent further contended that ACAT has also dealt with similar issues
previously and arrived at substantially the same
conclusion as the tribunal in
Yallingup. The appeal respondent quoted Rocks v Southside Village
(Rocks).[138]
The relevant part of Senior Member Anforth’s decision is as
follows:
- A
site only contract in a caravan park is at the very least a contractual licence
to use the site for agreed usages and subject ‘park
rules’.
- In
the present case the applicant was subjected to detailed house rules and
constant supervision by the landlord. He was moved around
to different sites of
the caravan park three times during his stay, and shared other facilities with
other occupants of the park.
The fact that he could be moved from site to site
at the park owner’s discretion indicates that there was no agreed security
of tenure on any particular site; or at best there was [a] tenancy at will in
relation to any particular site.
- Generally
park owners need the flexibility to move residents around to meet business
needs. On the other hand it is unfortunately
commonly the case that once a
resident became established in the park with their own van they build permanent
structures around their
van including cement slabs, verandahs, plumbing and
sewerage. After these improvements the vans or cabins are no longer
transportable.
This occurred to a limited degree in the case of the present
applicant.
- Parenthetically,
the question then arises at common law concerning the effect of a park owner
watching and implicitly (or even explicitly)
sanctioning the improvements by the
resident. At what point do the estoppel principles of Walton’s Stores
(Interstate) Ltd v Maher (1988) 164 CLR 387 arise in favour of the
resident.
- Most
site agreements contain ‘make good’ clauses which required that the
site be returned to the owner at the end of the
agreement in the same condition
in which it was taken (minus fair wear and tear). The parties must be taken to
know that once the
above kind of improvements are made that any eviction will
likely result in the need for demolition of those improvements in order
to
return the site to the condition in which it was originally received causing an
obvious and consequential loss to the resident.
...
- For
the above reasons, the present Tribunal is of the view that absent express
agreement to the contrary, a resident spends capital
on his/her van at their own
risk. This includes the risk of being evicted for any number of reasons, one of
which would be for breach
of park
rules.[139]
- The
Tribunal acknowledges that Rocks assists the Tribunal by providing a
context for the situation that might have applied when the original affixation
occurred. However,
with respect, the extract above states the opinion of the
Senior Member that permanent structures were being created in the park
at the
time the events occurred in that case, which was 2017. It is not clear whether
the practices described by the Senior Member
operated prior to 2003.
- Returning
to Ceedive, the court there referred to the house being affixed
“with the intent that it remain in position permanently or for an
indefinite
or substantial
period”.[140] In deciding
whether the intention of the original affixation was permanent or, more
plausibly in this case, for an indefinite or
substantial period, the mobility of
the structure is relevant.
Dismantling the structure
- There
was no dispute between the parties that the structure would need to be
disassembled to be moved. The question is whether this
provides evidence of an
intention that the structure remains in place for an indefinite/substantial
period. The Tribunal agrees in
part with the submission made by the appeal
respondent that the fact that something must be disassembled to move it does not
necessarily
mean that the intention of “permanency” is established.
The Tribunal also agrees with the appeal respondent’s contention
that the
structure need not be moved as a whole. However, the Tribunal acknowledges the
appellant’s submission that a structure
that is difficult to disassemble
is less likely to be a temporary structure, assuming that it will be relocated.
An alternative interpretation
is that the original affixer intended to build the
structure, and then at some later time remove it and destroy the materials that
were used to build the structure.
Damage to or destruction of the structure
- In
Elitestone, Lord Lloyd stated:
[T]he photographs show very
clearly what the bungalow is, and especially what it is not. It is not
like a Portakabin, or mobile home. The nature of the structure is such that it
could not be taken down and re-erected elsewhere.
It could only be removed by a
process of demolition. This, as will appear later, is a factor of great
importance in the present case.
If a structure can only be enjoyed in situ, and
is such that it cannot be removed in whole or in sections to another site, there
is at least a strong inference that the purpose of placing the structure on the
original site was that it should form part of the
realty at that site, and
therefore cease to be a
chattel.[141]
- In
a further comment in Elitestone, that was quoted in Ceedive, Lord
Lloyd said:
A house which is constructed in such a way so as to
be removable, whether as a unit, or in sections, may well remain a chattel, even
though it is connected temporarily to mains services such as water and
electricity. But a house which is constructed in such a way
that it cannot be
removed at all, save by destruction, cannot have been intended to remain as a
chattel.[142]
- The
Tribunal has no evidence that the alternative interpretation (that the original
affixer intended to build the structure and then
destroy it) would have operated
at the time of the original affixation, and notes Mr Trayling’s evidence
that the structure
can be moved without destroying it, but some damage would
occur. Further, he testified that it would take about three weeks to dismantle
and reassemble the structure. The Tribunal therefore agrees with the
appellant’s interpretation that the structure is not easily
moved and will
suffer some damage by disassembly. In several cases, structures have been found
to be fixtures if destruction or substantial
damage is caused to the structures
by moving them, even where the degree of annexation is relatively
slight.[143]
The application of Ceedive
- There
are some significant differences in the facts between the present case and
Ceedive. The construction of the structure differs from that in
Ceedive, where the house was of a “solid brick
construction”.[144] The
structure may have originally included only the caravan which may have been
readily portable or removable. However, at some point
prior to the appellant
acquiring the structure, some construction occurred, which prima facie
led to a degree of affixation. It is not unusual for residents of caravan parks
to create annexes to caravans. However, in this case
a structure was built upon
a concrete slab, which had some of the walls “embedded” into that
concrete slab. Tiles were
attached to the concrete slab. Further, during the
appellant’s occupancy, she added roofs to the structure.
- Some
of the facts that have been established in the present case are concordant with
Ceedive; that is:
(a) the structure appears to have been used as a residence on the site since it
was constructed;
(b) we have no explicit statements of intent concerning the intention with which
the structure was constructed;
(c) the purpose for which the house was constructed may be inferred to be a
residence;
(d) the parties to the proceedings and perhaps some members of the caravan park
may have thought that the appellant “owned”
the structure;
(e) the structure has been in place for at least 20 years without any attempt to
sever it.
- The
Tribunal is not bound by Ceedive, but it is highly persuasive.
Policy implications
- The
appeal respondent also pointed to the policy implications if long stay caravan
park owners face the prospect of acquiring structures
built on their land by
others, who generally operate on the joint understanding that they own them, and
the park owners do not own
them.[145] However as we have
discussed, whether something is a fixture depends on the particular facts of the
case. This case has some unusual
facts, and the decision is limited to these
facts. But it has been decided on the application to these unusual facts of
principles
which have been in operation for over a hundred years and continue to
be affirmed by the
courts.[146]
- If
long stay caravan parks wish to avoid the result that they own structures
affixed to their land by others, they should ensure that
they manage their parks
so as to avoid structures being so affixed to their land. We do not think that
this is an onerous obligation.
As we discuss below, the affixing does not of
itself make an occupancy agreement a residential tenancy agreement. Legislation
could
be made to address these issues if these results are thought to be
inappropriate.
Conclusion on the fixture question
- Taking
into account the surrounding circumstances that have been established by the
evidence, the circumstances here in their totality
do not rebut the presumption
in favour of the structure being a fixture. On the contrary, the circumstances
indicate that the structure
is affixed to the land.
- The
consequence of the finding above that the structure is a fixture is that the
appeal respondent owns the structure.
Does this resolve the appeal?
- To
a large extent, this finding deals with this appeal. The parties have withdrawn
the claims for arrears of rent and rent abatement
that were made from time to
time during the appeal.[147]
- Both
parties seek orders about payment for the removal of the structure from the
site.[148] The Tribunal has
concluded that the structure is a fixture and, consequently, the appeal
respondent owns the structure. The appellant
therefore has no obligation to pay
for its removal or to otherwise facilitate its removal.
- The
appeal respondent commenced these proceedings seeking an order that the
agreement be terminated. It has maintained this position.
Further, in the
appellant’s submissions of 13 February 2023 and 15 March 2023, while she
continues to argue that the agreement
was a residential tenancy, and that the
New Legislation applies, she seeks an order that “the residential tenancy
agreement
... is
terminated”.[149] Given that
the appellant agrees to, indeed seeks, such an order, in our view it is of
little actual relevance anymore whether the
agreement is a residential tenancy
agreement or occupancy agreement, nor which version of the Act applies.
- Although
the Tribunal is grateful for the thoughtful submissions made by lawyers acting
for the parties on these issues, they are
no longer relevant to the outcome of
the proceedings. Further, it seems to us that the appellant will receive little
benefit from
keeping the occupancy agreement, if that is what it is, on foot,
and possibly have ongoing liabilities. Further, the matter is before
the
Tribunal, which has broad jurisdiction and significant powers, which include, in
our view, to make an order that the agreement,
whatever it is, is
terminated.[150]
- On
this basis, we think the matter could be determined without considering the
difficult issues about whether there is a residential
tenancy agreement or an
occupancy agreement, and which version of the RT Act applied at relevant times.
But in case these issues
are raised in the future, we set out our conclusions
about them.
Was the structure a mobile home or a manufactured home under
the RT Act?
- In
addition to the analysis above about whether the structure is a fixture, based
on the common law, the Tribunal now considers whether
the structure fell within
the definitions ‘mobile home’ or ‘manufactured home’ in
the RT Act.
- In
the discussion below, the Tribunal will examine whether the arrangements between
the parties constituted a residential tenancy
or an occupancy agreement, and
whether the Old Legislation or the New Legislation applied to the notice of
termination. In this case,
the definitions of ‘mobile home’ and
‘manufactured home’ operate in this context only, that is, they are
relevant only to determining whether there is a residential tenancy agreement or
an occupancy agreement. They are not relevant to
whether the structure is a
fixture, which we have considered and determined above. At this point, we will
consider the definitions
that applied under both versions of the statute.
- The
Old Legislation contained one relevant definition – mobile home, as
follows:
mobile home means a dwelling (whether on
wheels or not) that can be transferred from place to place and
re-erected. [151]
- The
New Legislation contained two relevant definitions as
follows:
manufactured home means a structure, other
than a caravan or tent, that—
(a) has the character of residential premises; and
(b) is designed, built or manufactured to be transported from 1 place to
another for use as a home; and
(c) is not permanently attached to land.
mobile home means a motor vehicle, caravan or other trailer,
or other registrable vehicle under the Road Transport (Vehicle Registration)
Act 1999 that is used as a home.
Appellant’s submissions
- The
appellant argued that the structure is not a mobile home or a manufactured home.
The appellant conceded that the structure contains
what was once a caravan, and
that the caravan would ordinarily be considered to be a mobile home within the
meaning of the RT Act.
However, in this case the caravan in issue constitutes at
most one third of the overall structure (and has done so for well over
a
decade); has no functioning wheels (and has not had functioning wheels for well
over a decade); and has been permanently affixed
to, and incorporated within,
the broader structure (and has been for well over a decade). Therefore, in
circumstances where only
one third of the overall structure could ever be
considered a “mobile home” and where even that third is so
inextricably
affixed to the remainder of the structure (and where it is itself
plainly not movable, having no wheels) it is “self-evident”
that
structure cannot be considered to be a mobile home as that term is defined in
the RT Act.[152]
- As
regards the definition of “manufactured home”, the appellant argued
that, although the structure satisfied the first
criterion in the definition
because it has the character of residential premises, it did not satisfy the
second or third criteria
because it is not designed, built, or manufactured to
be transported from one place to another, and it is permanently attached to
land. The appellant’s submissions were based upon characteristics of the
structure, such as the floor tiling, as well as the
material in Mr
Trayling’s report about what might be involved in dismantling the
structure.[153]
Appeal respondent’s submissions
- The
appeal respondent submitted that the structure should first be classified as a
mobile home, but in the alternative, it is open
to the Tribunal to find that it
is a manufactured home.[154] The
appeal respondent relied upon Mr Trayling’s report contending that the
structure could “easily be disassembled and
transported”.[155] Further,
the appeal respondent argued that the percentage makeup of the structure is not
relevant for any determination because the
evidence of Mr Trayling was that the
annexures can be readily removed, which would leave the caravan sitting on its
own, albeit without
wheels.[156]
The appeal respondent argued that the appellant’s position appeared to be
that the structure, or at least a significant portion
of it, was once a caravan,
and therefore a mobile home, but through the process of removing wheels from the
caravan and attaching
various items to the caravan, it had been transformed to
the extent that it is capable of being considered a residential
dwelling.[157] The appeal
respondent submitted that it was open to the tribunal to find that the structure
is a mobile home on the basis that it
is presumably registrable pending the
fixing of wheels and removal of
annexures.[158] Regarding the
question of whether the structure was a manufactured home, the appeal respondent
relied on Mr Trayling’s evidence,
arguing that it was erroneous to treat
the partial tiling of one of the floors as definitive of it being permanently
affixed, therefore
unable to be moved or classified as a manufactured home. The
appeal respondent argued that that is not the case, because a raised
surface can
be tiled.[159]
Consideration
- This
is not a consideration of whether the structure is a fixture, where there is a
presumption, as discussed above at [56]-[59].
- The
Tribunal has concluded that the structure does not fall within any of the
definitions of “mobile home” or “manufactured
home” in
the New Legislation or the Old Legislation. The Tribunal agrees with the
appellant’s submissions that the structure
cannot, in any meaningful
sense, be transferred from place to place and re-erected. Certainly, the caravan
can be relocated, and
Mr Trayling testified that once the caravan was
“cleared of surrounding structures” it could be “lifted and
loaded
onto a flatbed truck for
removal”.[160] The caravan
may be registrable if wheels were attached to it, but it still only constitutes
one third of the structure. The remaining
two thirds of the structure would not
be a registrable vehicle under the Road Transport (Vehicle Registration) Act
1999 (which is required for the definition of ‘mobile home’
under the New Legislation); could not, practically speaking, be
transferred from
place to place and re-erected (under the definition of ‘mobile home’
in the Old Legislation); and is
not designed, built, or manufactured to be
transported from one place to another (under the definition of
‘manufactured home’
in the New Legislation). The Tribunal relies on
the analysis of Mr Trayling’s evidence about dismantling and reassembling
the
structure which is summarised above at [69] and [72].
Residential tenancy agreement or occupancy agreement?
- We
will now consider whether the agreement constituted a residential tenancy
agreement or an occupancy agreement under the RT Act.
The Original Tribunal
concluded that it was an occupancy agreement, based upon the finding that the
structure was a mobile home under
the Old
Legislation.[161]
- The
Original Tribunal found that the appellant was a long-term occupant of the
relevant site under a written “licence to occupy”
dated 25 January
2013,[162] which was granted to
her by the appeal respondent’s predecessor in title. The appeal respondent
purchased the residential park
in August 2015 and, by notice of attornment,
became the grantor of the appellant’s ‘licence to
occupy’.[163] The Original
Tribunal noted that the “licence to occupy” was headed
“Application for Licence to Occupy on a Weekly
Basis” and had
certain terms. For example, it contemplated stays that might be less than four
weeks; one week’s notice
is required prior to termination of the
accommodation; and Park Management has the right to determine the licence upon
giving one
hour’s notice, which may be given at any
time.[164]
- The
Original Tribunal applied the provisions of the RT Act as in force on both
25 January 2013 – when the ‘licence to
occupy’ was
executed,[165] and on
22 September 2020 – when the notice of termination was
given.[166] Section 71C(1) of the
RT Act at those times set out the requirements for an agreement to be an
occupancy agreement. In particular,
under the agreement, the grantor must give
the occupant the right to occupy premises for the occupant to use as a home; the
right
is given for value; and the agreement is not a residential tenancy
agreement. The Original Tribunal noted that ‘premises’
is defined in
the Dictionary to the RT Act to include (a) any habitable structure whether it
is fixed to the land or not; (b) part
of any premises; and (c) any land,
buildings or structures belonging to the
premises.[167] The Original
Tribunal noted that section 71C(2) of the RT Act provides that the agreement may
be express or implied, or in writing,
oral, or partly in writing and partly
oral.[168]
- On
appeal, the appellant argued that the tribunal is first required to consider
whether the agreement was a residential tenancy agreement
and, only if the
answer to that question is in the negative, is the further question asked as to
whether the agreement answers the
definition of an occupancy
agreement.[169] This argument
is based on the wording of section 71C in the Old Legislation, in particular
section 71C(1)(d), which states that an
agreement is an occupancy agreement if,
amongst other things, “the agreement is not a residential tenancy”.
The Old Legislation
stated that a residential tenancy agreement did not include
an agreement for the right to occupy premises if the premises are a caravan
or a
mobile home, as then
defined.[170]
- Section
71C was substantially amended by the New Legislation: subparagraph (d) was
deleted. The amended section 71C relevantly states
that an agreement is an
occupancy agreement, except if section 6B applies (which provides that an
agreement is a residential tenancy
agreement if it says it is), where there is
an agreement to occupy a site in a residential park, or for the purpose of the
occupant
placing a manufactured home or a mobile home on the site. The
definition of residential tenancy agreement under the New Legislation
includes
that “the agreement is not an occupancy agreement under section
71C”, reversing the previous
situation.[171]
- We
have concluded above that the structure does not fall within the definition of
‘mobile home’ or ‘manufactured
home’ under the New or
the Old Legislation, we therefore now consider the evidence about the agreement
between the parties.
- The
appellant conceded that some words that were used in the “licence to
occupy” were more akin to an occupancy agreement
than a residential
tenancy agreement. However, the appellant argued that the Tribunal should have
regard to the full nature of the
agreement and the overall relationship between
the parties. In this respect, the appellant pointed to certain factors that are
indicative
of the arrangement being a residential tenancy agreement: that the
appellant had “charge” over the site for approximately
two decades;
it was her principal place of residence for at least 10 to 14 years; she was
required to connect the structure to the
appeal respondent’s electricity
and water supply and pay connection fees to the appeal respondent; the structure
had its own
small garden; and the agreement did not give the appeal respondent
the right to access the structure or the garden at
will.[172] The appeal respondent
argued that the proper characterisation of the agreement differentiated it from
a “regular Residential
Tenancy Agreement and operated in favour of finding
the existence of an Occupancy Agreement.” The factors noted by the appeal
respondent include: there is no requirement to pay a bond or provide
inspections; the agreement is on a week-by-week basis; it has
been described in
all documents as a “licence to occupy on a weekly basis”; the
appellant had access to other common
grounds and services provided by the appeal
respondent, such as a shared laundry and shower block; the appeal respondent did
not
enjoy a right of access under the agreement to the structure; the appeal
respondent provided other shared services to all sites such
as electricity in
exchange for a fee, but any occupants were required to connect these utilities
to their structures.[173]
- The
Tribunal considers that the evidence that was adduced at first instance and on
appeal supports the Original Tribunal’s application
of section 71C of the
RT Act, and the Senior Member’s conclusion that the arrangement between
the parties was an occupancy
agreement. Certain elements of the agreement show a
clear intention to create an occupancy agreement in 2013 and to operate over
time with that understanding. The appellant conceded that no bond had been
required or paid and that the agreement is on a week-by-week
basis, and these
two factors weighed against the agreement being a residential
tenancy.[174] The clause allowing
termination of the occupation on very short notice is also inconsistent with a
residential tenancy
agreement.[175] This clause would
be subject to the occupancy principles under part 5A of the RT Act, but the
clause still evinces an intention to
create an occupancy agreement. These
elements should be given more weight than the factors relied upon by the
appellant that point
to a residential tenancy agreement. As we have noted, the
RT Act has detailed definitions of residential tenancy agreement and occupancy
agreement, and sets out the relationship between the two. These definitions will
generally apply, but they do not state that they
are the only basis for finding
something is a residential tenancy agreement or occupancy agreement, and the
factors we have noted
can be relevant. In this case, on balance, the Tribunal
considers that the arrangement was not a residential tenancy agreement for
the
purposes of section 71C(d) under the Old Legislation, and was an occupancy
agreement.
- The
Tribunal concludes that the appellant has not established that the Original
Tribunal erred in finding that the “licence
to occupy” dated 25
January 2013 was an occupancy agreement under part 5A of the RT
Act.[176]
- As
we have noted it is not necessary for the Tribunal to determine this issue in
this appeal, and further, even if we are wrong about
this conclusion that the
agreement was an occupancy agreement and the agreement was a residential tenancy
agreement, the appellant
now seeks an order that any such residential tenancy is
terminated.
Which version of the RT Act applies to the notice of
termination?
- As
stated above, the Original Tribunal held that the Old Legislation applies. The
reasoning of the Senior Member, as stated in the
Original Interlocutory
Decision, was as follows:
- The
‘occupancy principles’ in section 71EA of the [New Legislation]
commenced to apply to the occupancy agreement on 3
March 2021. From that date
any additional terms of the occupancy agreement that were inconsistent with the
occupancy principles,
the RT Act, or any other territory law, became void
pursuant to section 71E(2).
- Thus,
if the applicant wished to give notice of termination on or after 3 March 2021,
the applicant could do so only in accordance
with section 71EK.
- Section
75B of the Legislation Act 2001 requires that there must be a clear indication
in the legislation if a law is intended to commence retrospectively. There is
nothing
in the Amendment Act to indicate an intention for the amendments to
operate retrospectively. The Amendment Act does not affect the
previous
operation of part 5 of the RT Act, or anything done or begun under part 5.
Further, pursuant to section 84(2) of the Legislation Act 2001, a remedy in
relation to an existing right under part 5 may be exercised and the right may be
enforced as if part 5 had not been amended by the Amendment Act.
- A
notice of termination that was validly issued under part 5 of the RT Act, was
not invalidated by the commencement of the Amendment
Act. Section 71EK is
irrelevant to the outcome in this case. The applicant is entitled to seek to
enforce the termination of the
occupancy agreement upon expiry of the notice
period by applying to the ACAT for an order under section 83(1)(i) terminating
the
occupancy agreement and granting vacant possession of the
site.[177]
- The
appellant argued that the Senior Member had erred in this reasoning. During the
appeal hearing, the question arose regarding the
application of section 84 of
the Legislation Act 2001 and Carr v Finance Corporation of Australia
(No. 2).[178]
- The
Tribunal has considered the parties’ submissions about this
issue,[179] and notes the complex
questions that arise in deciding if the appeal respondent had an accrued right
under section 84 of the Legislation Act to enforce the termination of the
occupancy agreement upon expiry of the notice period on 31 March 2021, after the
Amendment Act had
come into effect on 3 March 2021. The occupancy principles in
the New Legislation may have had a bearing on the termination of the
occupancy
agreement. However, we do not think that the appellant has shown an error in the
Original Tribunal’s finding.
- Further,
the issue has now been superseded by the conduct of the appeal. In submissions
dated 15 March 2023, the orders sought by
the appellant included an order that
the agreement between the appellant and the appeal respondent be terminated as
of 1 July 2023.
This is on the basis that the agreement was a residential
tenancy, but as we discussed above, we do not see this is as a relevant
distinction. Therefore, the appellant in effect consents to the
termination.
Has the right of the appellant to occupy the site been
terminated, and what is the effect of this on the structure?
- Based
on the foregoing, the Tribunal finds that the appellant has consented to the
termination of the occupancy agreement and the
orders made above give effect to
the termination. For the sake of completeness, the Tribunal notes that the
Original Tribunal found
that the appeal respondent can terminate the agreement
on reasonable notice,[180] and
that the period of notice was
reasonable.[181] There is no error
in these findings.
- As
stated by the appellant, the primary dispute between the parties pertains to
“corollary orders” in the
proceedings.[182] The Tribunal
confirms that the parties have withdrawn the claims for arrears of rent and rent
abatement that were made from time
to time during the
appeal.[183] However, both parties
seek orders about payment for the removal of the structure from the
site.[184]
- The
Tribunal has concluded that the structure is a fixture and, consequently, the
appeal respondent owns the structure. The appellant
has no obligation to pay for
its removal or to otherwise facilitate its removal. Pursuant to section 83(1) of
the RT Act, the Tribunal
has made the orders above to give effect to this
conclusion and its consequences. We note that the appeal respondent wishes to be
heard on the question of
costs.[185]
Conclusion
- The
Tribunal has allowed the appeal and set aside the orders at first instance. The
Tribunal has found first that the structure is
a fixture, and the appeal
respondent therefore owns the structure. This is sufficient to allow the appeal,
but in case it is relevant
we also find that, second, the appellant has not
shown an error in the finding of the Original Tribunal that the agreement
between
the parties was an occupancy agreement. Third, the appellant has not
shown an error in the finding of the Original Tribunal that
the Old Legislation
applied and the appeal respondent has validly terminated the occupancy
agreement. At any rate the appellant now
seeks an order terminating any
residential tenancy agreement. The Tribunal has therefore ordered the appellant
to give vacant possession
of the site within one month. Following on from the
Tribunal’s finding that the structure on the site is a fixture, the
appellant’s
obligation to give vacant possession does not require her to
remove, pay for, or otherwise facilitate the removal of the structure.
......................................
Temporary Presidential Member Prof P Spender
For and on behalf of the Tribunal
Date(s) of hearing:
|
8, 17 March 2023
|
Solicitors for the Applicant:
|
Oliver Morris, Clayton Utz
|
Solicitors for the Respondent:
|
Thomas Barrington-Smith, Lexmerca Lawyers
|
[1] Residential Tenancies Act
1997, as at 31 March 2021 and 14 April 2021 (R 71) (New
Legislation)
[2] Residential Tenancies Act
1997, as at 22 September 2020 (R 66) (Old Legislation)
[3] South Canberra Holdings Pty
Ltd ACN 606 747 602 v Saunders [2021] ACAT 109
[4] South Canberra Holdings Pty
Ltd ACN 606 747 602 v Saunders [2022] ACAT 15
[5] Saunders v South Canberra
Holdings Pty Ltd ACN 606 747 602 [2023] ACAT 34
[6] May v Ceedive [2006]
NSWCA 369
[7] Original Interlocutory Decision
at [60]
[8] Original Interlocutory Decision
at [65]
[9] Original Interlocutory Decision
at [68]-[69]
[10] Original Interlocutory
Decision at [75]
[11] Original Interlocutory
Decision at [78]
[12] Original Final Decision at
[66]
[13] First Appeal Decision,
orders
[14] Transcript of proceedings on
17 March 2023, for the appellant page 7, line 13-page 35, line 13; for the
appeal respondent page 36,
line 9-page 43, line 19; for the appellant in reply
page 43, line 24-page 45, line 3
[15] Transcript of proceedings on
17 March 2023, page 47, line 40-page 79, line 19
[16] Transcript of proceedings on
17 March 2023, page 84, line 41-page 85, line 10
[17] Transcript of proceedings on
17 March 2023, page 86, line 14-page 139, line 45
[18] Appellant’s
submissions dated 13 February 2023 at [3](a)(i) and [17]-[27]; transcript of
proceedings on 17 March 2023, page
7, line 13-page 25, line 11;
appellant’s submissions dated 14 April 2023 at [2](a), [3]-[34],
[39]-[44]
[19] Appellant’s
submissions dated 13 February 2023 at [18]
[20] Appellant’s
submissions dated 15 March 2023 at [17]-[23]; appellant’s submissions
dated 14 April 2023 at [2](a) and [3]-[34]
[21] Appellant’s
submissions dated 14 April 2023 at [32], based on the discussion at [4]-[31]
[22] Appellant’s
submissions dated 14 April 2023 at [26]-[30], [32]-[33]; Ceedive at [49],
[65], [68], and [72]; appellant’s reply submissions dated 9 May 2023 at
[2]-[4]
[23] Appellant’s
submissions dated 13 February 2023 at [21]; appellant’s submissions dated
14 April 2023 at [2](b) and [39]-[42]
[24] Appellant’s
submissions dated 15 March 2023 at [27]-[49]; transcript of proceedings on 17
March 2023, page 31, line 14-page
35, line 13, see especially page 33, line 10
and page 34, line 3
[25] Original Interlocutory
Decision at [78]-[80]
[26] Appellant’s
submissions dated 15 March 2023 at [50]
[27] Appellant’s
submissions dated 13 February 2023 at [7]-[8]
[28] See New Legislation,
Dictionary ‘manufactured home’
[29] Appellant’s
submissions dated 13 February 2023 at [9]-[16]
[30] Appellant’s
submissions dated 13 February 2023 at [28]-[32]
[31] Appellant’s
submissions dated 13 February 2023 at [33]-[34]
[32] Appellant’s
submissions dated 13 February 2023 at [35]-[39]
[33] Appellant’s
submissions dated 13 February 2023 at [40]-[45]
[34] Appellant’s
submissions dated 15 March 2023 at [53]; appeal respondent’s submissions
dated 5 May 2023 at [75]
[35] Appellant’s
submissions dated 13 February 2023 at [47]
[36] Appellant’s
submissions dated 13 February 2023 at [47]-[48]; see also appellant’s
submissions dated 21 February 2022
at [2](b)
[37] Appellant’s
submissions dated 13 February 2023 at [49]
[38] Appellant’s
submissions dated 13 February 2023 at [50]-[52]
[39] Appeal respondent’s
submissions dated 7 March 2023 at [41]
[40] Transcript of proceedings
dated 17 March 2023, page 36, line 9-page 37, line 39; appeal respondent’s
submissions dated 5 May
2023 at [7]-[12], referring in particular to
Ceedive at [73]-[74]
[41] Mr Trayling’s evidence
is summarised at appeal respondent’s submissions dated 5 May 2023 at
[53]-[63]
[42] Transcript of proceedings on
17 March 2023, page 38, line 30-page 40, line 21; appeal respondents’
submissions of 5 May 2023
at [15] and the discussion at [16]-[29]
[43] Appeal respondent’s
submissions dated 7 March 2023 at [2]-[6] and [41]-[53]
[44] Appeal respondent’s
submissions dated 7 March 2023 at [2] and [30]-[35]
[45] Appeal respondent’s
submissions dated 7 March 2023 at [2] and [36]-[40]
[46] Appeal respondent’s
submissions dated 7 March 2023 at [57]-[59]
[47] Appeal respondent’s
submissions dated 7 March 2023 at [54]-[56]
[48] Original Interlocutory
Decision at [76]-[79]
[49] Transcript of proceedings on
17 March 2023, page 39, line 25-page 43, line 19, see especially page 42, lines
2-4
[50] Appeal respondent’s
submissions dated 7 March 2023 at [67]-[69]
[51] Appeal respondent’s
submissions dated 7 March 2023 at [63] and [70]; Appeal respondent’s
submissions dated 16 July 2021
at [21]-[23]
[52] Appeal respondent’s
submissions dated 5 May 2023 at [64]-[71]
[53] Ceedive at [65],
citing Reid v Smith [1905] HCA 54, (1905) 3 CLR 656 (emphasis added)
[54] Ceedive at [66]
(emphasis added)
[55] Ceedive at [66]
(emphasis added)
[56] Darmanin v Cowan
[2010] NSWSC 1118 at [197], citing National Dairies WA Ltd v Commissioner of
State Revenue (National Dairies) [2001] WASCA 112 at [15]
[57] Appeal respondent’s
submissions dated 5 May 2023 at [29]
[58] Appellant’s
submissions dated 13 February 2023 at [18](b), transcript of proceedings on 17
March 2023, page 125, line 44-page
127, line 32
[59] Appellant’s
submissions dated 13 February 2023 at [18]
[60] Appellant’s
submissions dated 13 February 2023 at [18]
[61] Witness statement of Kaye
Saunders dated 14 March 2023 at [6]
[62] [2000] FCA 1458 at [10]
[63] Blacker at [10]
[64] Recent examples include
SPIC Pacific Hydro Pty Ltd v Chief Commissioner of State Revenue [2021]
NSWSC 395; AWF Prop Co 2 Pty Ltd v Ararat Rural City Council [2020] VSC
853 (AWF); and Power Rental Op Co Australia, LLC v Forge Group
Power Pty Ltd (in liq) (receivers and managers appointed) [2017] NSWCA 8
[65] TEC Desert Pty Ltd v
Commissioner of State Revenue [2010] HCA 49 at [24]
[66] Blacker at [16]
citing N.H. Dunn Pty Ltd v L.M. Ericsson Pty Ltd (1979) 2 BPR 9241,
9246
[67] See Conti J in
Blacker at [16], citing Eon Metals NL v Commissioner of State Taxation
(WA) (1991) 22 ATR 601, 606 per Ipp J
[68] [2015] NSWCA 30 at
[81]
[69] Ceedive at [74]
[70] Australian Provisional
Assurance Co Ltd v Coroneo [1938] NSWStRp 35; (1938) 38 SR (NSW) 700, 712; see also Darmanin
at [199] and National Dairies at [20]
[71] Darmanin at [199],
see also Metal Manufacturers Ltd v Commissioner of Taxation (Metal
Manufacturers) [1999] FCA 1712 at [167] per Emmett J; and Blacker at
[10].
[72] Ceedive at [75]
[73] Ceedive at [68]
[74] Blacker at [12],
citing N.H. Dunn Pty Ltd v L.M. Ericsson Pty Ltd (1979) 2 BPR 9241,
9244-5
[75] Ceedive at [44]
[76] Ceedive at [49],
[72]
[77] Appeal respondent’s
submissions dated 5 May 2023 at [15](e)
[78] Darmanin at [201]
[79] Annexure to witness
statement of Marie Boustani dated 15 March 2023 – ‘Condition of your
premises’ dated 12 June
2019, page 9
[80] Metal Manufacturers
at [167], per Emmett J: “The question of whether property constitutes
a chattel or a fixture must be determined at the time
of affixing. Of course, if
additional attachment occurs or the nature of the attachment changes, the status
of the property may change.
However, mere effluxion of time is not relevant
because the question must be capable of answer as at the time of
attachment”
[81] Appellant’s
submissions dated 14 April 2023 at [41](b)
[82] Transcript of proceedings on
17 March 2023, page 90, line 6-page 91, line 35, page 93, line 17-page 94, line
18, page 113, line 15-page
114, line 19
[83] Transcript of proceedings on
17 March 2023, page 108, line 1-page 109, line 8, page 114, lines 3-12, page
117, line 16-page 119,
line 13
[84] Transcript of proceedings on
17 March 2023, page 115, lines 24-46
[85] Transcript of proceedings on
17 March 2023, page 115, lines 24-46
[86] Transcript of proceedings on
17 March 2023, page 116, lines 1-33, page 137, line 40-page 138, line 2
[87] Transcript of proceedings on
17 March 2023, page 136, line 1-page 137, line 28
[88] Transcript of proceedings on
17 March 2023, page 136, line 1-page 137, line 28
[89] Transcript of proceedings on
17 March 2023, page 136, line 1-page 137, line 28
[90] Appellant’s
submissions dated 14 April 2023 at [37]
[91] Appellant’s
submissions dated 14 April 2023 at [41](e)
[92] Appeal respondent’s
submissions dated 5 May 2023 at [53], [55]-[57], [59]
[93] Referring to Rocks v
Southside Village [2018] ACAT 40
[94] Appeal respondent’s
submissions dated 5 May 2023 at [58], [60]-[62]
[95] Blacker at [14],
citing Metal Manufacturers at [160]-[163]
[96] Transcript of proceedings on
17 March 2023, page 91, lines 26-34
[97] Transcript of proceedings on
17 March 2023, page 91, lines 5-24
[98] [1938] NSWStRp 35; (1938) 38 SR (NSW) 700, 712,
citing Holland v Hodgson [1872] UKLawRpCP 24; (1872) LR 7 CP 328, 335
[99] Coroneo, 712-713
[100] [1905] HCA 54
[101] Reid at [1]
[102] Reid at [2]
[103] Transcript of proceedings
on 17 March 2023, page 96, lines 8-23
[104] Transcript of proceedings
on 17 March 2023, page 137, line 40-page 138, line 2
[105] Transcript of proceedings
on 17 March 2023, page 101, line 33-page 102, line 7, page 138,
lines 10-19
[106] Transcript of proceedings
on 17 March 2023, page 136, lines 1-35
[107] Original Final Decision
at [52]
[108] Annexure A to witness
statement of Kevin Trayling dated 12 December 2021 at [2]
[109] See generally Annexure A
to witness statement of Kevin Trayling dated 12 December 2021, esp at [2],
[9]
[110] Transcript of proceedings
on 17 March 2023, page 67, line 27-page 68, line 4
[111] Appellant’s
submissions dated 14 April 2023 at [41](a)
[112] Appellant’s
submissions dated 14 April 2023 at [41](b)
[113] Appellant’s
submissions dated 14 April 2023 at [41](c)
[114] Appellant’s
submissions dated 14 April 2023 at [41](e)
[115] Appellant’s
submissions dated 14 April 2023 at [41](d)
[116] Appeal respondent’s
submissions dated 7 March 2023 at [49]
[117] Appeal respondent’s
submissions dated 7 March 2023 at [48]
[118] Appeal respondent’s
submissions dated 5 May 2023 at [19]
[119] Blacker at [13],
approved in AWF at [202]-[204] and Agripower at [79], [81]
[120] Blacker at [13]
[121] For example,
Elitestone Ltd v Morris [1997] UKHL 15, Ceedive and Reid;
compare Darmanin.
[122] Transcript of proceedings
on 17 March 2023, page 10, lines 6-8
[123] [1997] UKHL 15
[124] Elitestone at
[47]
[125] Transcript of proceedings
on 17 March 2023, page 10, lines 31-33
[126] Elitestone at
[22]
[127] Elitestone at [22]
[128] Ceedive at [71],
citing Billing v Pill [1954] 1 QB 70
[129] Appellant’s
submissions dated 14 April 2023 at [41](d)
[130] Appellant’s
submissions dated 14 April 2023 at [41](a)
[131] Holland v. Hodgson
[1872] UKLawRpCP 24; (1872) L.R. 7 C.P. 328, 335
[132] Ceedive at
[73]
[133] See generally
appellant’s submissions dated 15 March 2023 at [6]-[26]
[134] Appeal respondent’s
submissions dated 5 May 2023 at [10]
[135] (1994) 11 SR (WA) 355
[136] Yallingup, 359
[137] Appeal respondent's
submissions dated 5 May 2023 at [19]
[138] [2018] ACAT 40
[139] Rocks at
[35]-[38], [44]
[140] Ceedive at
[73]
[141] Elitestone at [8]
(original emphasis)
[142] Ceedive at [66]
quoting Elitestone at [21]
[143] For example, Litz v
National Australia Bank Ltd [1986] ANZ ConvR 883; Reid at [2];
and the discussion of this element in Blacker at [26]-[28]
[144] Ceedive at
[71](d)
[145] Appeal respondent’s
submissions dated 5 May 2023 at [64]-[71]
[146] For a recent example, see
State of New South Wales v Carver [2023] NSWSC 828
[147] Appellant’s
submissions dated 15 March 2023 at [53], appeal respondent’s submissions
dated 5 May 2023 at [75]
[148] Appellant’s
submissions dated 15 March 2023 at [53], Appeal respondent's submissions dated 7
March 2023 – ‘Orders
Sought’, Order 1(c)
[149] Appellant’s
submissions dated 13 February 2023 at [46](c)(i); appellant’s submissions
dated 15 March 2023 at [53](b)(iii)
[150] Sections 76 and 83 of the
current RT Act
[151] Old Legislation,
Dictionary ‘mobile home’
[152] Appellant’s
submissions dated 13 February 2023 at [7]-[8]
[153] Appellant’s
submissions dated 13 February 2023 at [9]-[15]
[154] Appeal respondent's
submissions dated 7 March 2023 at [40]
[155] Appeal respondent's
submissions dated 7 March 2023 at [31]
[156] Appeal respondent's
submissions dated 7 March 2023 at [32]
[157] Appeal respondent's
submissions dated 7 March 2023 at [33]
[158] Appeal respondent's
submissions dated 7 March 2023 at [35]
[159] Appeal respondent's
submissions dated 7 March 2023 at [39]
[160] Annexure A to witness
statement of Kevin Trayling dated 12 December 2021 at [5]
[161] Original Interlocutory
Decision at [58]-[60]
[162] Appellant’s book of
documents – ‘Canberra South Motor Park, Application for Licence to
Occupy on a Weekly Basis’
dated 25 January 2013, pages 1-2
[163] Original Interlocutory
Decision at [1]
[164] Original Interlocutory
Decision at [4]-[5]
[165] Original Interlocutory
Decision at [12]-[20]
[166] Original Interlocutory
Decision at [70], and footnote 19 “The relevant version of the RT Act at
that time was revision No.
66”
[167] Original Interlocutory
Decision at [12], footnote 6, citing Old Legislation, Dictionary
‘premises’
[168] Original Interlocutory
Decision at [13]
[169] Relying upon section 71C
RT Act and Bangura & Fan [2013] ACAT 38 at [43] ; Appellant’s
submissions dated 13 February 2023 at [29]; Transcript of proceedings dated 17
March 2023, page 28, line 24-page
30, line 2
[170] Old Legislation section
6F
[171] Section 6A(1)(b)
[172] Appellant’s
submissions dated 13 February 2023 at [31]
[173] Appeal respondent's
submissions dated 7 March 2023 at [58]
[174] Appellant’s
submissions dated 13 February 2023 at [31]
[175] Variously periods of one
hour and one week, see Original Interlocutory Decision at [4]-[5]
[176] Original Interlocutory
Decision at [60]
[177] Original Interlocutory
Decision at [76]-[79]
[178] [1982] HCA 43
[179] Appellant’s
submissions dated 15 March 2023 at [27]-[49]; see also the earlier submissions
by the appellant at first instance
dated 12 May 2021 at [3]-[8]; and appeal
respondent’s submissions dated 14 March 2022 at [46]-[57]
[180] Original Interlocutory
Decision at [61]-[70]
[181] Original Interlocutory
Decision at [72]-[75]
[182] Appellant’s
submissions dated 13 February 2023 at [35]
[183] Appellant’s
submissions dated 15 March 2023 at [53]; appeal respondent’s submissions
dated 5 May 2023 at [75]
[184] Appellant submissions
dated 15 March 2023 at [53]; appeal respondent’s submissions dated 7 March
2023 – ‘Orders
Sought’, Order 1(c)
[185] Appeal respondent’s
submissions dated 5 May 2023 at [72]
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