Clarence City Council v Commonwealth of Australia

• Jurisdiction: Australia Federal only
• Court: Federal Court
• Judgment Date: 06 August 2020
• Neutral Citation: [2020] FCAFC 134
• Date: 06 August 2020

FEDERAL COURT OF AUSTRALIA

Clarence City Council v Commonwealth of Australia [2020] FCAFC 134

Appeal from:	Clarence City Council v Commonwealth of Australia [2019] FCA 1568
File numbers:	TAD 35 of 2019TAD 36 of 2019
Judges:	JAGOT, KERR AND ANDERSON JJ
Date of judgment:	6 August 2020
Catchwords:	HIGH COURT AND FEDERAL COURT – jurisdiction of the Federal Court – power to award declaratory relief – nature of a declaratory judgment – standing to seek declaratory relief – discretion to award declaratory relief – municipal councils seek declaration in respect of the interpretation and application of leases to which they are not a party – leases between Commonwealth and corporate lessees of airports – contractual mechanism for payment of rates, land tax and other taxes by lessees to councils – mechanism contemplates that councils will participate in, and derive benefits under, the leases – Commonwealth and lessees in agreement as to calculation of payments – councils dispute calculation of payments – whether councils have standing to seek declaratory relief – whether councils have a sufficient interest in declaratory relief – whether “matter” arises under laws made by Commonwealth Parliament ; CONSTITUTIONAL LAW – judicial power of the Commonwealth – requirement for a “matter” – whether there is a “matter” before the Court – whether there is a justiciable controversy – whether there is an enforceable right, duty or liability to found a “matter” ; CONTRACTS – doctrine of privity of contract – scope and effect – difference between executory and declaratory judgments – whether councils lack standing to seek declaratory relief because of inconsistency with doctrine of privity of contract – accord and satisfaction – estoppel ; Held: appeals allowed – notices of contention dismissed –; a “matter” exists before the court – councils have standing to seek declaratory relief – councils have real commercial and practical interest in declaratory relief
Legislation:	Airports Act 1996 (Cth) Airports (Transitional) Act 1996 (Cth) Commonwealth Places (Application of Laws) Act 1970 (Cth), s 4 Federal Court of Australia Act 1976 (Cth), ss 19(1), 21, 23 Fire Service Act 1979 (Tas), Div 3 of Pt VI Judiciary Act 1903 (Cth), ss 39(1B), s 39A(1A), 39B(1A), 78B Local Government Act 1993 (Tas), s 93A Valuation of Land Act 2001 (Tas)
Cases cited:	Abebe v The Commonwealth (1999) 197 CLR 510 Ainsworth v Criminal Justice Commission [1992] HCA 10; 175 CLR 564 Allan v Transurban City Link Ltd (2001) 208 CLR 167 Anderson v Commonwealth (1932) 47 CLR 50 Anjin No 13 Pty Ltd v Allianz Australia Insurance Ltd [2009] VSC 371 Ashmere Cove Pty Ltd v Beekink (No 2) [2007] FCA 1421 Australian Competition and Consumer Commission v MSY Technology Pty Ltd [2012] FCAFC 56 Australian Competition and Consumer Commission v Pacific National Pty Limited [2020] FCAFC 77 Australian Conservation Foundation Inc v The Commonwealth [1980] HCA 53; 146 CLR 493 Aussie Airlines Pty Ltd v Australian Airlines Ltd (1996) 68 FCR 406 Aussie Airlines Pty Ltd v Australian Airlines Ltd (No 2) (1996) 67 FCR 451 Australian Solar Mesh Sales Pty Ltd v Anderson [2000] FCA 864 Bateman’s Bay Local Aboriginal Land Council v Aboriginal Community Benefit Fund Pty Ltd (1998) 194 CLR 247 Beaumaris Football Club v Hart [2017] VSCA 226 Beswick v Beswick [1968] AC 58 Brisbane Airport Corp Ltd v Wright [2002] FCA 359 Cathels v Commissioner of Stamp Duties (1959) 62 SR (NSW) 455 C. E. Heath Casualty & General Insurance Ltd v Pyramid Building Society (in liquidation) [1997] 2 VR 256 CGU Insurance Limited v Blakeley (2016) 259 CLR 339 CGU Insurance Ltd v Blakeley [2015] VSCA 153 Clarence City Council v Commonwealth of Australia [2019] FCA 1568 Commonwealth of Australia v Essendon Airport Pty Ltd [2019] FCA 1411 Coulls v Bagot’s Executor and Trustee Co Ltd (1967) 119 CLR 460 Croome v State of Tasmania (1997) 191 CLR 119 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544 Direct Factory Outlets Pty Ltd v Westfield Management Ltd [2003] FCA 1095 Direct Factory Outlets Pty Ltd v Westfield Management Ltd [2005] FCA 34 DJL v Central Authority (2000) 201 CLR 226 Edwards v Santos (2011) 242 CLR 421 El-Mir v Risk [2005] NSWCA 215 Employers Reinsurance Corporation v Ashmere Cove Pty Ltd [2008] FCAFC 28 Feetum v Levy [2005] EWCA Civ 1601 Federal Capital Commission v Laristan Building & Investment Co Pty Ltd (1929) 42 CLR 582 Fencott v Muller (1983) 152 CLR 570 Financial Services Authority v Rourke [2001] EWHC 704 (Ch) Forster v Jododex Australia Pty Ltd (1972) 127 CLR 421 Graham Barclay Oyster Pty Ltd v Ryan (2002) 211 CLR 540 Gordon v Lever [2018] NSWCA 43 Gouriet v Union of Post Offıce Workers [1978] AC 435 Hamersley Iron Pty Ltd v National Competition Council [2008] FCA 598 Hannover Life Re of Australasia Ltd v Dargan [2012] NSWCA 185 Harris v Caladine (1991) 172 CLR 84 Ho v Grigor [2006] FCAFC 72 Hooper v Kirella Pty Ltd [1999] FCA 1584 IMF (Australia) Ltd v Sons of Gwalia Ltd [2004] FCA 1390 Interchase Corporation Ltd (In liq) v FAI General Insurance Co Ltd [1998] QCA 180 In re Judiciary and Navigation Acts (1921) 29 CLR 257 J N Taylor Holdings Limited (In liquidation) v Bond (1993) 59 SASR 432 Johnco Nominees Pty Ltd v Albury Wodonga (NSW) Corp [1977] 1 NSWLR 43 Kowalski v Mitsubishi Motors Australia Staff Superannuation Fund Pty Ltd [2018] SASCFC 44 Kuczborski v Queensland (2014) 254 CLR 51 LNC Industries Ltd v BMW (Australia) Ltd (1983) 151 CLR 575 NAJT v Minister for Immigration and Multicultural and Indigenous Affairs [2005] FCAFC 134 Macks v Viscariello [2017] SASCFC 172 McDermott v Black (1940) 63 CLR 161 Meadows Indemnity Co Ltd v Insurance Corporation of Ireland Plc [1989] 2 Lloyd’s Rep 298 Midland Silicones Ltd v Scruttons Ltd [1962] AC 446 Milebush Properties Ltd v Tameside Metropolitan Borough Council [2011] EWCA Civ 270 Minister for Immigration and Multicultural and Indigenous Affairs v B (2004) 219 CLR 365 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 10 Office of Fair Trading v Foxtons Ltd [2009] EWCA Civ 288 Oliver v Nine Network Australia Pty Ltd [2019] FCA 583 OneSteel Manufacturing Pty Limited v BlueScope Steel (AIS) Pty Limited [2013] NSWCA 27 Onus v Alcoa of Australia Ltd (1981) 149 CLR 27 Palmer v Ayres (2017) 259 CLR 478 Pape v Federal Commissioner of Taxation (2009) 238 CLR 1 Parramatta City Council v Sandell [1973] 1 NSWLR 151 Pasini v United Mexican States (2002) 209 CLR 246 Pilbara Infrastructure Pty Ltd v Australian Competition Tribunal (2012) 246 CLR 379 Plaintiff M61/2010E v Commonwealth (2010) 243 CLR 319 Plaintiff S10/2011 v Minister for Immigration and Citizenship (2012) 246 CLR 636 Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC 847 Police and Nurses Credit Society Ltd v National Australia Bank Ltd [2005] WASCA 68 Precision Data Holdings Ltd v Wills (1991) 173 CLR 167 R v Commonwealth Court of Conciliation and Arbitration; Ex parte Barrett (1945) 70 CLR 141 Re McBain; Ex parte Australian Catholic Bishops Conference (2002) 209 CLR 372 Rail Access Corporation v New South Wales Minerals Council Ltd (1998) 87 FCR 517

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