Oakey Coal Action Alliance Inc v New Acland Coal Pty Ltd [2021] HCA 2 (3 February 2021)
Last Updated: 3 February 2021
HIGH COURT OF AUSTRALIA
KIEFEL CJ,
BELL, GAGELER, KEANE AND EDELMAN JJ
OAKEY COAL ACTION ALLIANCE INC APPELLANT
AND
NEW ACLAND COAL PTY LTD & ORS RESPONDENTS
Oakey Coal Action Alliance Inc v New Acland Coal Pty
Ltd
[2021] HCA 2
Date of Hearing: 6 October 2020
Date of
Judgment: 3 February 2021
B34/2020
ORDER
- Appeal
allowed.
- Set
aside orders 3 and 4 of the orders made by the Court of Appeal of the Supreme
Court of Queensland on 1 November 2019 and, in their
place, order that:
(a) orders 4, 5, 6, 7 and 8 of the orders made by the Supreme
Court of Queensland on 28 May 2018 be set aside;
(b) the first respondent's applications be referred back to the Land Court
of Queensland to be reconsidered according to law;
(c) the decision of the second respondent made on 12 March 2019 under
s 194 of the Environmental Protection Act 1994 (Qld) be set aside;
and
(d) each party bear its own costs of the appeal and cross-appeal in that
Court.
- The
first respondent pay the appellant's costs of the appeal to this Court.
On appeal from the Supreme Court of Queensland
Representation
J K Kirk SC with O R Jones and C J McGrath for the appellant (instructed by
the Environmental Defenders Office)
D R Gore QC with D G Clothier QC and N Andreatidis QC for the first
respondent (instructed by Clayton Utz)
Submitting appearances for the second and third respondents
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
Oakey Coal Action Alliance Inc v New Acland Coal
Pty Ltd
Administrative law – Apprehended bias – Relief –
Jurisdiction of inferior courts – Where first respondent
applied for
additional mining leases and amendment to existing environmental authority
("applications") – Where appellant and
others lodged objections to
applications – Where first decision of Land Court of Queensland ("Land
Court") recommended that
both applications be rejected – Where Supreme
Court of Queensland rejected arguments by first respondent that recommendations
made by Land Court affected by apprehended bias, but held recommendations
involved errors of law and remitted certain matters to
Land Court for
reconsideration – Where second decision of Land Court constituted by
different Member recommended applications
be approved subject to conditions
– Where amendment to environmental authority granted by delegate of second
respondent –
Where Court of Appeal allowed cross-appeal by first
respondent and held that recommendations in Land Court's first decision affected
by apprehended bias – Whether open to Court of Appeal, after finding that
recommendations in Land Court's first decision affected
by apprehended bias, not
to refer matters to which recommendations related back to Land Court for full
reconsideration, and instead
to make consequential orders limited to declaration
that procedural fairness not observed – Whether matters to which
recommendations
related should not be referred back to Land Court on basis of
discretion to refuse relief.
Words and phrases – "administrative decision", "administrative
function", "apprehended bias", "binding", "declaration", "discretion
to refuse
relief", "environmental authority", "error of law", "inferior court",
"jurisdictional error", "lacking in legal force",
"Land Court", "mining lease",
"nullity", "procedural fairness", "qualified order for referral back", "setting
aside", "spent", "statutory
precondition", "valid".
Environmental Protection Act 1994 (Qld), Ch 5.
Judicial Review
Act 1991 (Qld), s 30.
Land Court Act 2000 (Qld).
Mineral
Resources Act 1989 (Qld), Ch 6.
- KIEFEL CJ,
BELL, GAGELER AND KEANE JJ. This appeal is from a judgment of the Court
of Appeal of the Supreme Court of Queensland
(Sofronoff P, Philippides JA
and Burns J) on appeal by way of rehearing from a judgment of a single
judge of the Supreme Court (Bowskill
J) on judicial review of recommendations
made by the Land Court in proceedings under the Mineral Resources Act
1989 (Qld) ("the MRA") and the Environmental Protection Act 1994
(Qld) ("the EPA").
- The
Land Court is established under the Land Court Act 2000 (Qld)
("the LCA") as an inferior court of
record[1] having
both judicial functions and administrative
functions[2]. The
Land Court consists of the President and other
Members[3], and
is constituted for the exercise of jurisdiction by a Member sitting
alone[4].
- Each
proceeding under the MRA and the EPA involved performance by the Land Court of
an administrative function. Each recommendation
was a decision of an
administrative character, to which the Judicial Review Act 1991 (Qld)
("the JRA") applied.
- The
Court of Appeal concluded that both recommendations made by the Land Court were
erroneous in law and were affected by apprehended
bias on the part of the Member
who constituted the Land Court. Neither of those conclusions is now in issue.
The second conclusion
was contrary to a conclusion of Bowskill J, who
had found error of law but not apprehended bias in relation to the
recommendations
of the Land Court. Based on her finding of error of law alone,
Bowskill J had made orders under the JRA which included orders setting
aside the
recommendations and referring the matters to which the recommendations related
back to the Land Court for reconsideration
on a limited basis.
- The
Court of Appeal gave effect to its conclusion that the recommendations were also
affected by apprehended bias by supplementing
Bowskill J's orders with a
declaration. The declaration was to the effect that the Member had failed to
observe procedural fairness
in making the recommendations.
- The
ultimate question in this appeal is whether the Court of Appeal, instead of
making the declaration, ought to have made an order
under the JRA referring the
entirety of the matters to which the recommendations related back to the
Land Court for full reconsideration.
That is what ought to have
occurred.
- The
complicated procedural history needs to be outlined before turning to the
arguments of the parties and explaining why the Court
of Appeal ought to have
made that order.
Procedural history
- New
Acland Coal Pty Ltd operates an open-cut coal mine near Oakey on the Darling
Downs in Queensland. New Acland has for some time
been seeking to expand the
mine. To do so, it has applied for additional mining leases under the MRA and
for an amendment to its
existing environmental authority under the EPA.
Numerous objections have been lodged to each application.
The objectors include Oakey
Coal Action Alliance Inc. Oakey represents
a group of farmers and other community members on the Darling Downs.
- Under
provisions of the MRA and the EPA which will need to be examined in due course,
the making of the objections led to referral
of New Acland's applications to the
Land Court for consideration and recommendation. A recommendation by the
Land Court under the
relevant provisions of the MRA is to the Minister for
Natural Resources, Mines and Energy, who gets to make the ultimate decision
to
grant or refuse the additional mining leases for which New Acland has
applied. A recommendation by the Land Court under the relevant
provisions of the
EPA is to the Chief Executive of the Department of Environment and Science, who
gets to make the ultimate decision
to grant or refuse the amendment New Acland
seeks to its environmental authority.
- Referral
of the applications for additional mining leases commenced a proceeding in the
Land Court under the MRA to which New Acland
and Oakey and other objectors were
parties. Referral of the application for amendment of the environmental
authority commenced a
proceeding in the Land Court under the EPA to which New
Acland and Oakey and other objectors were parties and to which the Chief
Executive was also a party.
- Together,
the proceedings gave rise to complex overlapping issues for hearing and
determination by the Land Court. They included
economic issues. They also
included issues in relation to air quality and dust, noise, transport and roads,
climate change, biodiversity
of flora and fauna, physical and mental health,
land values, livestock and rehabilitation, land use and soils, intergenerational
equity, community and the social environment, heritage values and cultural
heritage, groundwater and surface water.
- The
proceedings came to be heard together in the Land Court by Member Smith
over a period of almost 100 hearing days. Member Smith
rendered a decision
in which he made many findings favourable to New
Acland[5]. He
found that the expanded mine was likely to provide a significant economic
benefit to the local region, to Queensland and to Australia.
On most other
issues, he found either no adverse impact or impacts that could be appropriately
managed.
- In
the result, however, Member Smith recommended that both applications be refused.
His findings on three issues led him to make
those recommendations. One was
noise, which he found to exceed acceptable limits. Another was groundwater, the
potential impact on
which he found to have been inadequately modelled. The other
was intergenerational equity, which he found was breached by the potential
for
the impact on groundwater to adversely affect landholders in the vicinity of the
mine for hundreds of years.
- New
Acland applied to the Supreme Court for a statutory order of review of the
recommendations under ss 20 and 21 of the JRA as well as for non-statutory
judicial review of the recommendations in the exercise of the jurisdiction
conferred by s 58 of the Constitution of Queensland 2001 (Qld). The
grounds on which New Acland relied included that the recommendations were
affected by apprehended bias on the part of Member
Smith. They also included
that Member Smith erred in law in his findings and conclusions on each of the
three issues that had led
him to recommend that the applications be
refused.
- When
the judicial review application was commenced, the only parties to it were New
Acland and Member Smith, who properly entered
a submitting appearance. Oakey
applied to become a party. Its application was granted. After the Chief
Executive acted on Member
Smith's recommendation under the EPA to refuse the
application to amend the environmental authority, the Chief Executive was
added
as a further party and his refusal decision was added to the decisions
challenged in the judicial review application.
- The
judicial review application was heard by Bowskill
J[6].
Her Honour found that the recommendations were not affected by any
apprehended bias on the part of Member Smith that was able to
be complained of
by New Acland but that they were affected by errors of law on each of the three
issues which had led Member Smith
to make them.
- Her
Honour made orders setting aside the recommendations of Member Smith, setting
aside the refusal decision of the Chief Executive,
and referring the matters to
which the recommendations related back to the Land Court to be further
considered by a different
Member[7].
Concerned to head off re-litigation of issues left untouched by the judicial
review proceedings, however, her Honour made further
orders which qualified the
order referring the matters back to the Land Court. One of the further orders
introduced a qualification
that, for the purposes of further consideration, "the
parties before the Land Court are bound by, and the Land Court is directed
to
proceed on the basis of, the findings and conclusions reached by" Member Smith
on all issues other than the three issues which
had led Member Smith to make the
recommendations which her Honour set aside. Another introduced a
qualification that "[t]he parties
before the Land Court are bound by the factual
findings made by [Member Smith] in relation to noise" and that "[t]he Land Court
is
directed to further consider the key issue of noise ... on the basis that the
undisturbed factual findings as to noise stand, but
on the basis of such further
consideration of the evidence before [Member Smith], and any submissions, as the
Land Court considers
appropriate".
- Whether
her Honour had power to make those further orders is not raised in the appeal.
The present relevance of the further orders
is that they were complied with by
Oakey, New Acland and the Chief Executive, and by Kingham P, who promptly and
diligently set about
reconsidering the matters to which the recommendations
related on referral back to the Land Court.
- Kingham
P commenced her reconsideration of those matters in the implementation of the
orders made by Bowskill J soon after the filing
by Oakey in the Court of Appeal
of a notice of appeal from those orders and soon after the filing by New Acland
of a notice of cross-appeal
from those orders. In so proceeding, Kingham P
refused an application for an adjournment by
Oakey[8]. Oakey
did not seek judicial review of that refusal. Neither Oakey nor New Acland
sought a stay of the orders of Bowskill J pending
determination of the appeal
and cross-appeal by the Court of Appeal.
- Kingham
P completed her reconsideration before the hearing of the appeal and
cross-appeal in the Court of
Appeal[9]. In the
result, Kingham P made new recommendations that New Acland's applications for
mining leases and its application for an amendment
to its environmental
authority be approved subject to conditions concerning noise. Her Honour made
clear in her published reasons
that her recommendations might have been
different had she not been constrained in exercising discretion by the further
orders made
by Bowskill J which required her to proceed on findings and
conclusions of Member Smith.
- Acting
on Kingham P's recommendation to him, a delegate of the Chief Executive
subsequently granted the application for amendment
of the environmental
authority sought by New Acland. The Minister is yet to make a decision on the
applications for the new mining
leases sought by New Acland.
- The
existence of Kingham P's new recommendations and the Chief Executive's new
decision was brought to the attention of the Court
of Appeal before the hearing
of the appeal and cross-appeal.
Oakey's appeal and New Acland's
cross-appeal to the Court of Appeal
- By
its notice of appeal to the Court of Appeal, Oakey challenged the findings of
Bowskill J that the recommendations made by Member
Smith were affected by errors
of law.
- By
its notice of cross-appeal to the Court of Appeal, New Acland sought to
challenge the finding of Bowskill J that the recommendations
were not affected
by apprehended bias on the part of Member Smith, but only if Oakey's appeal was
allowed. The Court of Appeal undoubtedly
correctly refused to permit
New Acland to pursue the issue of apprehended bias in that conditional
manner[10]. Put
to its election, New Acland chose to pursue the issue of apprehended bias
unconditionally. New Acland amended its notice of
cross-appeal accordingly.
- The
Court of Appeal, having reserved its decision, delivered reasons for judgment on
the substantive issues raised by the appeal
and the
cross-appeal[11].
The reasons were delivered by Sofronoff P, with whom Philippides JA and
Burns J agreed. Appropriately addressing the cross-appeal
first, Sofronoff
P took a more adverse view of the behaviour of Member Smith during the hearing
before him than had Bowskill J to
conclude that the recommendations made by
Member Smith were affected by apprehended
bias[12]. Going
on to address the appeal, Sofronoff P concluded that Bowskill J had been correct
to hold that the recommendations made by
Member Smith were affected by errors of
law she had
identified[13].
- It
followed that the appeal was to be dismissed and that the cross-appeal was to be
allowed. Sofronoff P indicated in his reasons
that the appropriate consequential
orders would be for the qualified order for referral back made by Bowskill J to
be set aside,
for the subject matters of the recommendations made by Member
Smith to be referred back to the Land Court for full reconsideration,
and for
Oakey to pay New Acland's
costs[14].
- Having
regard to the existence of the new recommendations made by Kingham P and to the
new decision made by the delegate of the Chief
Executive, however, the Court of
Appeal permitted the parties to make further written submissions about the
appropriateness of the
consequential orders proposed by Sofronoff P. Having
received those written submissions, the Court of Appeal was persuaded by New
Acland to take a different course.
- In
supplementary joint reasons for judgment addressed to the orders to be made as a
consequence of dismissing the appeal and allowing
the
cross-appeal[15],
the Court of Appeal said of the qualified orders for referral back made by
Bowskill J[16]:
"Those orders having been spent, there would be no utility in setting them
aside. Nor is it open for this court in this appeal to
interfere with the orders
made by President Kingham in determining the dispute between the parties. Those
are valid orders of the
Land Court and, subject to being set aside on appeal,
they bind the parties. There has been no such
appeal."
The Court of Appeal went
on[17]:
"In summary, setting aside the orders for rehearing would accomplish nothing and
it is not open in this proceeding to interfere with
the final orders made by
President Kingham or with the decision of the
delegate."
- Dismissing
the appeal and allowing the cross-appeal to it, the Court of Appeal then made
consequential orders limited to a declaration
to the effect that, in making his
recommendations, Member Smith failed to observe procedural fairness, together
with an order that
Oakey pay New Acland's costs of the appeal and cross-appeal
and of the proceedings before Bowskill J.
Oakey's appeal to this
Court
- By
special leave, Oakey now appeals to this Court from so much of the judgment of
the Court of Appeal as comprises those consequential
orders.
- Oakey
points out that the new recommendations made by Kingham P are administrative
decisions made by an inferior court. Being based
in part on findings and
conclusions of Member Smith, those recommendations are themselves affected by
the same apprehended bias that
the Court of Appeal found to affect the
recommendations made by Member Smith.
- Oakey
seeks from this Court orders setting aside Kingham P's new recommendations and
the Chief Executive's new decision. But, says
Oakey, whether or not the new
recommendations and new decision are set aside, each is "a decision that lacks
legal foundation and
is properly regarded, in law, as no decision at
all"[18]. Each
is in that sense a legal "nullity", binding on no one. For that reason, says
Oakey, the existence of the new recommendations
and new decision can be no
impediment to the making of the consequential orders originally correctly
thought appropriate by Sofronoff
P: orders setting aside the qualified order for
referral back made by Bowskill J, referring the subject matters of the
recommendations
made by Member Smith back to the Land Court for full
reconsideration, and ordering New Acland to pay Oakey's costs.
- For
its part, New Acland ultimately accepts that Kingham P's recommendations, being
based in part on findings and conclusions of
Member Smith, are affected by the
same apprehended bias that the Court of Appeal found to affect the
recommendations made by Member
Smith. Nevertheless, says New Acland, the Court
of Appeal was correct to treat them as "valid" and as "binding" on Oakey and New
Acland. New Acland says that the recommendations are valid and binding on Oakey
and New Acland by force of the qualified order for
referral back made by
Bowskill J. New Acland says in the alternative that the mere fact that the Land
Court has made a recommendation
is sufficient to allow the Minister now to
decide its applications for additional mining leases under the MRA and that the
mere fact
that the Land Court made a recommendation was sufficient for the
delegate of the Chief Executive to have made the new decision to
approve the
amendment to its existing environmental authority under the EPA.
- New
Acland goes on to say that "the long and unhappy circumstances of this case"
give rise to discretionary reasons for upholding
the Court of Appeal's refusal
to set aside the qualified order for referral back made by Bowskill J.
New Acland points to evidence
adduced in the hearing before the Court of
Appeal that it has altered its position and expended substantial funds on the
faith of
the decision of Bowskill J and in reliance on the recommendations of
Kingham P. New Acland says that Oakey has "had its day in court".
The
applications for additional mining leases under the MRA and for an amendment to
New Acland's existing environmental authority
under the EPA have been
outstanding for a very long time. They should not now be referred back to the
Land Court for yet another
potentially lengthy and costly hearing.
Kingham P's new recommendations do not have legal consequences
by force of the orders made by Bowskill J
- Being
orders made by the Supreme Court in the exercise of judicial power as a superior
court of record, the qualified orders for
referral back to the Land Court made
by Bowskill J on the judicial review application are valid until set
aside[19]. To
New Acland's argument that Kingham P's recommendations are valid and binding on
Oakey and New Acland by force of those orders,
however, there are two complete
answers.
- The
first complete answer lies in recognising the source of power for, and limited
operation of, the orders made by Bowskill J. The
source of power for those
orders is s 30(1) of the JRA, which is modelled on s 16(1) of the
Administrative Decisions (Judicial Review) Act 1977 (Cth).
- Section
30(1) of the JRA provides:
"On an application for a statutory order of review in relation to a decision,
the court may make all or any of the following orders
–
(a) an order quashing or setting aside the decision, or a part of the decision
...;
(b) an order referring the matter to which the decision relates to the person
who made the decision for further consideration, subject
to such directions
(including the setting of time limits for the further consideration, and for
preparatory steps in the further
consideration) as the court determines;
(c) an order declaring the rights of the parties in relation to any matter to
which the decision relates;
(d) an order directing any of the parties to do, or to refrain from doing,
anything that the court considers necessary to do justice
between the
parties."
- Bowskill
J's order setting aside the recommendations made by Member Smith was an order
under s 30(1)(a) of the JRA. Her Honour's
order referring New Acland's
applications for additional mining leases under the MRA and for amendment to its
existing environmental
authority under the EPA back to the Land Court for
further consideration was an order under s 30(1)(b) of the JRA.
The operation
of that order was to require the Land Court to re-exercise
the statutory jurisdictions conferred on it under the MRA and the EPA.
- The
qualifications to the order for referral back introduced by the further orders
made by Bowskill J were sought to be made under
s 30(1)(b) of the JRA insofar as
they were framed as directions to the Land Court and under s 30(1)(d) of the JRA
insofar as they
were framed as directions to the parties. Those further orders
cannot be interpreted as having any greater scope of operation than
s 30(1)(b) and (d) of the JRA permit.
- The
purpose of the suite of powers conferred by s 30(1) of the JRA, including
the powers of direction conferred by s 30(1)(b) and
(d), is to "allow
flexibility in the framing of orders so that the issues properly raised in the
review proceedings can be disposed
of" in a way that "avoid[s] unnecessary
re-litigation between the parties of those
issues"[20].
The amplitude of those powers "should not be unnecessarily
confined"[21].
- Wide
though the discretionary power conferred by s 30(1)(b) to attach directions
to the order for referral is, however, the power
does not extend to authorise a
decision-maker to proceed in a manner inconsistent with the statute that governs
the making of the
decision referred back for further
consideration[22].
And wide though the discretionary power conferred by s 30(1)(d) to
make an order directed to the parties is, the power does not
extend to authorise
making an order that is not necessary to do "justice according to
law"[23].
Neither a direction attached to an order for referral under s 30(1)(b) nor
an order directing the parties under s 30(1)(d) can authorise
a
decision-maker to engage in a process of further consideration that is in excess
of the decision-maker's statutory jurisdiction.
- Whether
the further orders made by Bowskill J, which had the effect of requiring Kingham
P to adopt most of the findings and conclusions
of Member Smith, were consistent
with the requirement of the LCA that the Land Court be constituted for the
exercise of jurisdiction
by a Member "sitting
alone"[24]
might be open to be questioned, but is not raised as an issue in the appeal. For
present purposes what is important is that, whilst
Kingham P's reconsideration
of New Acland's applications faithfully implemented Bowskill J's order, Kingham
P's reconsideration of
those applications necessarily occurred, and the
resultant new recommendations were necessarily made, in the purported exercise
of
the statutory jurisdictions conferred on the Land Court under the MRA and the
EPA.
- Left
unappealed, Bowskill J's judgment and orders might well have given rise to
estoppels operating between Oakey, New Acland and
the Chief Executive to limit
the grounds on which Kingham P's recommendations might be able to be challenged
by Oakey in subsequent
judicial review
proceedings[25].
Even then, the operation of those estoppels would have been between the parties.
Their operation could not alter the underlying
substantive question of
statutory authority and statutory validity.
- The
force and effect of Kingham P's recommendations therefore depend on whether the
recommendations comply with the express and implied
conditions of the exercise
of the statutory jurisdictions conferred on the Land Court under the MRA and the
EPA. The recommendations
gain no additional force or effect by reason of
having been made in consequence of Bowskill J's order for referral back under s
30(1)(b)
of the JRA or the directions added under s 30(1)(b) and (d) of the
JRA.
- The
second complete answer to New Acland's reliance on the qualified orders for
referral back to the Land Court made by Bowskill
J lies in recognising that
those orders were the very orders under appeal to the Court of Appeal.
Those orders had been framed by
Bowskill J to reflect her Honour's
conclusion that the findings and recommendations made by Member Smith were not
affected by apprehended
bias. That conclusion having been found to be erroneous
by the Court of Appeal, the orders under appeal could and should have been
set
aside by the Court of Appeal as an incident of the appeal.
- True,
the orders were "spent" to the extent that they had been implemented by Kingham
P in making the new recommendations. But, as
will be seen, the orders were not
framed in a way that could produce, and had not in fact produced,
recommendations that fulfilled
the statutory duties of the Land Court under the
MRA and the EPA and that met the statutory preconditions to the making of
decisions
by the Minister under the MRA and by the Chief Executive under the
EPA.
Kingham P's new recommendations do not have legal
consequences under the MRA or the EPA
- The
circumstance that the Land Court has been established by legislation as a court
means that any jurisdiction conferred on it is
necessarily conditioned by the
requirement that it observe procedural fairness in the exercise of that
jurisdiction[26].
Indispensable to the requirement that the Land Court observe procedural fairness
in the exercise of its jurisdiction is that the
process by which it exercises
that jurisdiction must be and be seen to be independent and
impartial[27]
so that the decision it makes at the conclusion of that process is and is seen
to be the result of a neutral evaluation of the merits.
That inherent
requirement conditions its jurisdiction to perform administrative functions no
less than its jurisdiction to perform
judicial
functions[28].
- The
circumstance that the Land Court has been established as an inferior court, as
distinct from a superior court, means that failure
to comply with a condition of
its jurisdiction to perform a judicial function renders any judicial order it
might make in the purported
performance of that judicial function lacking in
legal force. That is so whether or not the judicial order is set
aside[29].
Failure on the part of the Land Court to comply with a condition of its
jurisdiction to perform an administrative function correspondingly
renders any
administrative decision it might make in the purported performance of that
administrative function lacking in legal force.
That, again, is so whether or
not the decision is set
aside[30].
- Orthodox
analysis therefore supports Oakey's characterisation of Kingham P's
recommendations as nullities. Kingham P did not behave
in any way that gave rise
to any apprehension of bias on her part. Through adopting findings and
conclusions of Member Smith in accordance
with the directions of
Bowskill J, the process by which Kingham P arrived at the new
recommendations she made nevertheless breached
a condition of the exercise of
the Land Court's jurisdiction to perform its administrative functions under the
MRA and the EPA. The
recommendations are nullities in that they do not
comply with a condition of the statutory conferral of the administrative
functions
in the purported performance of which they were made. New Acland does
not challenge that orthodoxy.
- Building
on the understanding that "a thing done in the purported but invalid exercise of
a power ... [is] a 'nullity' in the sense
that it lacks the legal force it
purports to have" but "is not a nullity in the sense that it has no existence at
all or that it
is incapable of having legal
consequences"[31],
New Acland's alternative argument is that the mere fact of the existence of
Kingham P's recommendations is enough to meet the statutory
preconditions to the
making by the Minister of the ultimate decision to grant or refuse New Acland's
applications for additional
mining leases under the MRA and to the making by the
Chief Executive of the ultimate decision to grant or refuse New Acland's
application
for amendment to its environmental authority under the EPA. Put in
other words, New Acland's alternative argument is that a purported
recommendation, or as New Acland prefers to say it a "recommendation in fact",
made by the Land Court is sufficient to meet the precondition
to the making of
each of those statutory decisions.
- To
address that argument requires attention to the scheme of the relevant
provisions of the MRA and of the EPA.
- The
MRA includes within its principal objectives to "ensure an appropriate financial
return to the State from mining" as well as
to "encourage environmental
responsibility" and "encourage responsible land care management" in
mining[32].
Chapter 6 sets out a regime under which an application for a mining lease must
be specifically notified to affected landowners,
to the relevant local
government and to infrastructure providers, and must also be publicly notified
in a local
newspaper[33].
For each notification, there is an objection period. Any objection properly made
by any entity within the applicable objection period
triggers referral of the
application and all properly made objections to the Land
Court[34].
- The
Land Court on referral has a duty to conduct a hearing into the application and
objections, and into matters that it is required
by the MRA to
consider[35],
and to produce a recommendation to the Minister that the application be rejected
or granted in whole or in part subject to such
conditions as it considers
appropriate[36].
The matters that the Land Court is required by the MRA to consider include
whether the operations to be carried out under the authority
of the proposed
mining lease will conform with sound land use management, whether there will be
any adverse environmental impact
caused by those operations, whether "the public
right and interest will be prejudiced" and whether the proposed mining operation
is an appropriate use of the land taking into consideration the current and
prospective uses of the
land[37].
- The
decision to grant or reject the application for the mining lease lies with the
Minister[38].
In considering the application, the Minister must consider the recommendation of
the Land Court and must himself or herself also
consider the matters which the
Land Court is required by the MRA to consider in making the
recommendation[39].
- The
MRA in that way conforms to the commonly encountered legislative model which
"entails the holding of an inquiry by a body authorized
to make a recommendation
to a ... Minister [who] may make a decision rejecting the recommendation without
conducting any further
inquiry" under which "[t]he hearing before the
recommending body provides a sufficient opportunity for a party to present [its]
case
so that the decision-making process, viewed in its entirety, entails
procedural
fairness"[40].
- In
Forrest & Forrest Pty Ltd v
Wilson[41],
by reference to a long line of previous authority, the majority in this Court
stated:
"[W]here a statutory regime confers power on the executive government of a State
to grant exclusive rights to exploit the resources
of the State, the regime
will, subject to provision to the contrary, be understood as mandating
compliance with the requirements
of the regime as essential to the making of a
valid grant. When a statute that provides for the disposition of interests in
the resources
of a State 'prescribes a mode of exercise of the statutory power,
that mode must be followed and observed'. The statutory conditions
regulating
the making of a grant must be observed. A grant will be effective if the regime
is complied with, but not otherwise."
- Understood
in that light, it is apparent that the recommendation of the Land Court mandated
by Ch 6 of the MRA as a precondition
to the making of a decision by the Minister
to grant or reject an application for a mining lease in the event of an
objection is
a recommendation which is the product of compliance with all of the
express and implied conditions of the statutory process by which
the
recommendation is required to be produced. Central to those implied conditions
of that statutory process by which the recommendation
is required to be produced
is that the Land Court observe procedural fairness in conducting the hearing and
in making the recommendation.
- New
Acland's argument that a recommendation in fact is all that need exist to meet
the statutory precondition to the making by the
Minister of a decision to grant
or reject an application for a mining lease is therefore denied both by the
structure of Ch 6 and
by the purpose of the MRA.
- The
argument is unsupported by either of the two decisions of this Court relating to
analogous provisions of the Mining Act 1978 (WA) on which New Acland
relies. The issue in the
first[42] was
whether certiorari was available to quash a recommendation of a mining warden
concerning an application for a mining lease. The
holding was that the
recommendation had sufficient legal effect on legal rights to attract certiorari
because it was a precondition
to the decision of the Western Australian Minister
to grant or refuse the application. The holding cannot be taken to suggest that
a purported but invalid recommendation of the mining warden would have been
enough to meet that precondition. Certiorari is available
to expunge the
purported legal effect of an invalid
decision[43].
The issue in the
second[44] was
whether a reasonable apprehension that a decision of the Western Australian
Minister to grant the application for a mining lease
in accordance with the
recommendation of the mining warden was affected by bias arose from the
circumstance that a departmental officer
peripherally involved in the
non-statutory process of briefing the Minister had a pecuniary interest in the
application. The holding
was that the decision was not affected by a
reasonable apprehension of bias. That holding says nothing about the effect on
the decision
of the Western Australian Minister of a reasonable apprehension of
bias in the statutory process leading up to the recommendation
of the mining
warden.
- Turning
from the MRA to the EPA, the stated object of the EPA is "to protect
Queensland's environment while allowing for development
that improves the total
quality of life, both now and in the future, in a way that maintains the
ecological processes on which life
depends"[45].
The EPA relevantly pursues that object by making it an offence for a person to
carry on an environmentally relevant activity, including
a mining activity,
unless the person is the holder of an environmental authority for that
activity[46].
- Under
Ch 5 of the EPA, an application for an environmental authority (including an
application for an amendment to an existing environmental
authority) is made to
the relevant administering authority. The making of an application triggers a
staged decision-making process.
One of the stages applicable to an application
for an environmental authority to carry out a mining activity involves giving
public
notice and an opportunity for public
submissions[47].
- The
decision stage is itself
stepped[48].
The first step is for the administering authority – for relevant purposes,
the Chief Executive – to make what is, in
effect, a preliminary decision
on the
application[49].
If the decision then made by the administering authority is to issue the
applicant an environmental authority on other than standard
conditions[50],
the administering authority must give notice of the decision to any submitters
accompanied by a draft environmental
authority[51].
Any submitter may then
object[52],
following which the administering authority must refer the application to the
Land Court[53].
- Referral
of the application by the administering authority following objection starts
proceedings in the Land Court (to which the
administering authority, the
applicant and any objector are
parties[54])
which must result in an objections
decision[55].
For that purpose, the Land Court is to hold a hearing, which must be timed to
coincide with its hearing of any application for and
objection to the grant of a
mining lease under the
MRA[56]. The
objections decision must be in the form of a recommendation to the administering
authority: that the application be approved
based on the draft environmental
authority, that the application be approved on conditions different from those
in the draft environmental
authority, or that the application be
refused[57]. In
making the objections decision, the Land Court must consider the application,
the draft environmental authority, any objections
and, amongst other things,
applicable planning
criteria[58].
- The
final step in the decision stage of the decision-making process under Ch 5 of
the EPA is then for the administering authority
to decide whether: to approve
the application based on the draft environmental authority, to approve the
application on conditions
different from those in the draft environmental
authority, or to refuse the
application[59].
In making that final decision, the administering authority must have regard to
matters which include the objections
decision[60].
- No
differently from the recommendation of the Land Court which the Minister must
take into account in deciding to grant or reject
an application for a mining
lease under the MRA, the objections decision of the Land Court to which the
administering authority must
have regard in making the final decision whether to
approve an application for an environmental authority can only be one which is
the product of compliance with all of the express and implied conditions of the
statutory process by which the recommendation constituting
the objections
decision is required to be produced. No differently from the statutory process
for the making by the Land Court of
a recommendation under the MRA, central to
the conditions implied into the statutory process for the making by the Land
Court of
a recommendation under the EPA is that the Land Court observe
procedural fairness in conducting a hearing and in making the
recommendation.
- A
recommendation in fact made by the Land Court is insufficient to meet the
preconditions to the making of a decision by the Minister
to grant or refuse an
application for a mining lease under the MRA. Likewise, a recommendation in fact
made by the Land Court is
insufficient to meet the preconditions to the making
by the administering authority of a decision to grant or refuse an application
for a variation of an environmental authority under the EPA. New Acland's
alternative argument fails.
Discretion
- Intrinsic
to the nature of the orders which s 30(1) of the JRA authorises the Supreme
Court to make is that the discretion it confers to make those orders is to be
exercised as appropriate
to give effect to rights, duties and powers judicially
determined on the application for judicial review in which the orders are
made.
Where, as here, circumstances found to have arisen in an administrative
process are determined on an application for judicial
review to result in
statutory duties remaining unperformed, an order referring the matters to which
the decisions relate back to
the decision-maker under s 30(1)(b) should in
principle be made "unless circumstances appear making it just that the remedy
should be
withheld"[61].
- The
circumstances that might make it just to withhold such an order cannot be
cabined. Examples include "if a more convenient and
satisfactory remedy exists",
"if no useful result could ensue", or if the applicant "has been guilty of
unwarrantable delay or ...
bad
faith"[62]. The
circumstances, however, are not at large. Practical inconvenience of giving
effect to the rights, duties and powers that have
been judicially determined is
not amongst them. Neither individually nor in combination are the
considerations on which New Acland
relies sufficient to justify discretionary
refusal of such an order in the circumstances of the present
case.
The available and appropriate consequential orders
- Consistently
with the orders originally indicated by Sofronoff P, the substantive orders
appropriate to have been made in the appeal
to the Court of Appeal in
consequence of its conclusion of apprehended bias on the part of Member Smith
were orders setting aside
the qualified order for referral back made by Bowskill
J and substituting an order referring New Acland's applications back to the
Land
Court for full reconsideration.
- The
new decision of the delegate of the Chief Executive, being based on the
recommendations of Kingham P, could and should also have
been set aside by the
Court of Appeal. The recommendations of Kingham P could not themselves have
been set aside given that Kingham
P was not a party to the judicial review
application or to the appeal to the Court of
Appeal[63].
That, however, is no impediment to the making of the other
orders.
Disposition
- The
appeal must be allowed. The declaration and orders for costs made by the Court
of Appeal must be set aside. In their place, it
should be ordered that the
qualified order for referral back made by Bowskill J be set aside, that New
Acland's applications be referred
back to the Land Court to be reconsidered
according to law, that the new decision of the delegate of the Chief Executive
be set aside,
and that each party bear its own costs of the appeal and
cross-appeal. New Acland should pay Oakey's costs of the appeal to this
Court.
EDELMAN J.
The unfortunate history of this appeal
- Nearly
14 years ago, New Acland Coal Pty Ltd ("New Acland Coal") sought to expand its
mining operations in what was described as
its Stage 3 expansion. After
making a modification in its project proposal, New Acland Coal submitted
applications to permit the
expanded activity. It applied for two additional
mining leases and an amendment of its existing environmental authority. The
amendment
application was assessed and a draft environmental authority was
issued. Objections were brought, by Oakey Coal Action Alliance Inc
("Oakey Coal
Action") and others, to the mining leases and the amendment to the environmental
authority sought by New Acland Coal.
- More
than five years ago the objections by Oakey Coal Action and others were referred
to the Land Court for that Court to consider
and to make non-binding
recommendations to the Minister for Natural Resources, Mines and Energy and the
Chief Executive of the Department
of Environment and Science respectively under
the Mineral Resources Act 1989 (Qld) and the Environmental Protection
Act 1994 (Qld). The non-binding recommendations are but one stage in the
larger decision-making process for the grant of the mining leases
and the
amendment.
- The
hearing in the Land Court occupied approximately 100 sitting days spread
over more than a year, involving 19 issues for expert
evidence and thousands of
exhibits. It was the longest hearing in the long history of that Court. The
408-page decision of the Member
of the Land Court was comprehensive and
exhaustive. On judicial review of this decision in the Supreme Court of
Queensland, although
Bowskill J held that there were some legal errors in
the Member's decision, much of the decision was undisturbed, and her Honour's
order for a
rehearing[64]
(order 5) was confined only to "the key issues of groundwater, intergenerational
equity (as it relates to groundwater) and noise"
with a direction that the
hearing otherwise proceed "on the basis of" the findings and conclusions of the
Member.
- With
the extraordinary delay that had existed, one highly beneficial and practical
effect of order 5 made by Bowskill J was to eliminate
the need for another
full hearing and potentially many more years of delay. The rehearing before
Kingham P took only three days.
Kingham P recommended, subject to
conditions, the approval of New Acland Coal's applications for mining leases and
its application
for an amendment to its environmental
authority[65].
The Chief Executive, taking into account Kingham P's recommendation,
granted the application for amendment of the environmental
authority[66].
- The
Court of Appeal then heard an appeal by Oakey Coal Action, and a cross-appeal by
New Acland Coal, from the decision of Bowskill
J. Over the objection of
Oakey Coal Action, the Court of Appeal allowed New Acland Coal's cross-appeal
from the decision of
Bowskill
J[67],
concluding that the conduct of the Member gave rise to an apprehension of bias
following the publication of a newspaper article
that had "deeply offended the
Member"[68].
Although the apprehension of bias would generally have required the decision of
the Member to be set aside, the Court of Appeal
declined to order a new hearing.
The central reason that a new hearing was not ordered was that Kingham P
had resolved this stage
of the dispute.
- In
Oakey Coal Action's application for special leave and on this appeal, it
proposed orders that the matter be remitted to the Land
Court to start all over
again. Oakey Coal Action had itself initially opposed such an outcome in the
Court of Appeal by resisting
the setting aside of the Member's decision. And
despite seeking an entirely new hearing, Oakey Coal Action did not join
Kingham P
to the appeal in this Court and thus cannot obtain orders setting
aside the orders of Kingham P. This has the curious effect that
Oakey Coal
Action seeks orders for a new hearing to determine a matter that is, and will
remain, resolved at the time this Court
makes those orders. Nevertheless, Oakey
Coal Action's appeal must succeed.
Summary of my
reasoning
- The
starting point, which is not controversial in this Court, is the conclusion of
the Court of Appeal that the manner in which the
Member conducted the first
hearing gave rise to an apprehension of bias so that the remittal of the matter
to Kingham P should not
have incorporated the direction in order 5 that the
hearing proceed "on the basis of" the findings and conclusions of the Member
on
all issues apart from groundwater (including intergenerational equity) and
noise. The parties' submissions can be addressed and
resolved in four
steps:
(1) Once it is concluded that order 5 should be set aside,
the decision of Kingham P involves apprehended bias arising from an
unjustified
lack of independence. The highly unusual circumstances of that
conclusion arise because her Honour's dependence upon the identified
findings
and conclusions of the Member was both required and justified by order 5.
But setting aside order 5 removes that justification.
(2) The principle derived from New South Wales v
Kable[69]
("Kable [No 2]") is that the setting aside of the order
of a superior court does not deprive executive or administrative acts of
validity if they are
done pursuant to the order and in the interim before it is
set aside. But that principle does not provide administrative acts, and
matters
which depend upon those acts, with prospective or continuing validity for the
period after the order is set aside.
(3) The mere fact that the decision was made by Kingham P, rather than
the validity of the decision, is not sufficient to establish
the jurisdictional
condition to enliven the power of the Chief Executive to make the decision to
approve the amendment to the existing
environmental authority under the
Environmental Protection Act.
(4) Although it is possible that discretionary reasons could, in exceptional
circumstances, justify the refusal to order a new hearing
despite an
apprehension of a reasonable person that the prior decision-maker might be
affected by bias, on balance the discretionary
reasons upon which New Acland
Coal relied – including the delays and the expenditure of funds in
reliance upon the decision
– are not sufficient to do so in this case.
(1) Judicial review for apprehended bias
The ground of judicial review
- In
Hot Holdings Pty Ltd v
Creasy[70],
Gaudron, Gummow and Hayne JJ said that there is a "large question" whether
there exists a ground of judicial review permitting the
issue of a writ of
certiorari based upon "the 'process' of decision-making being affected by those
who participate in that process
having some interest in its outcome". That
question has not been resolved by this Court. It was not necessary to resolve it
in Hot Holdings. No submissions were made on it in this case. Much,
however, may depend upon what is meant by a ground of judicial review based upon
"the 'process' of decision-making" being "affected". It might be doubted,
for example, whether a ground of judicial review could
exist based upon the
apprehended bias of persons involved in the decision-making "process" if that
apprehension could not possibly
lead to any concern about unjustified dependence
or partiality by the decision-maker. Hence, in Hot Holdings the
peripheral involvement in the decision-making process by an officer who had a
pecuniary interest in the outcome did not lead to
a conclusion that the Minister
had acted with unjustified dependence or partiality. On the other hand, if the
apprehension of bias
of a person involved in the process casts doubt upon the
independence or impartiality of the decision-maker then the decision might
be
invalid. For instance, in Baker v Canada (Minister of Citizenship and
Immigration)[71],
the dependence by a decision-maker upon a subordinate, including relying on
the subordinate to write the notes that were taken to
be the reasons for
decision, could not be justified due to a reasonable apprehension that the
subordinate was affected by bias.
- In
this case, it is unnecessary to extend the ground of judicial review beyond its
orthodox expression as a rule against bias and
apprehended bias. That rule is
that the tribunal, or more accurately the person or persons constituting the
tribunal, which exercises
jurisdiction must be, and must be seen to be,
independent and impartial. The test for a reasonable apprehension of bias is
whether
a hypothetical fair-minded lay observer, properly informed of the nature
of the decision and the context in which it was made as
well as the
circumstances leading to the decision, might reasonably apprehend that the
decision-maker might not have brought an independent
and impartial mind to
making the
decision[72].
- Bias
and apprehended bias are phenomena concerned with the mindset and apprehended
mindset of people and, relevantly, decision-makers.
The thought processes of
people can exhibit, or be apprehended to exhibit, unjustified dependence upon,
or partiality towards, relevant
matters. Processes cannot. Processes have no
thought process. The decisions of this Court are therefore replete with
references to
the independence and impartiality of the mind of the relevant
decision-maker. In R v Commonwealth Conciliation and Arbitration Commission;
Ex parte Angliss
Group[73],
the Court spoke of a tribunal or its members bringing "fair and unprejudiced
minds" to the resolution of the question arising before
the tribunal. In R v
Watson; Ex parte
Armstrong[74],
Barwick CJ, Gibbs, Stephen and Mason JJ spoke of a judge bringing a
"fair and unprejudiced mind to [a] decision". In Laws v Australian
Broadcasting
Tribunal[75],
Mason CJ and Brennan J spoke of members of a tribunal bringing an
"unprejudiced and impartial mind to the resolution of the issues".
In Webb v The
Queen[76],
Mason CJ and McHugh J spoke of "impartiality on the part of [a] juror" to
examine the evidence and approach the issues "unemotionally"
and
"dispassionately". And in the joint judgment in Ebner v Official Trustee in
Bankruptcy[77],
Gleeson CJ, McHugh, Gummow and Hayne JJ spoke of "an independent and
impartial tribunal" and "an impartial mind". Although Kirby
J suggested
that there may be an implied constitutional requirement of "due process of
law"[78], his
Honour did not decide that point and did not suggest that "due process" required
independence or impartiality to be assessed
separately from the actual or
apprehended state of a decision-maker's mind.
The invalidity of
the decision of Kingham P
- Oakey
Coal Action submitted that the apprehension of bias concerning the Member
"infected" the decision of Kingham P. As Gaudron,
Gummow and Hayne JJ
said in Hot Holdings, "[i]t would, of course, be wrong to place too much
emphasis on metaphorical references to 'infection' or
'taint'"[79]. A
more precise analysis, and one which underlies Oakey Coal Action's metaphor,
requires focus upon whether the decision-making by
Kingham P herself gives
rise to an apprehension of bias by reason of her unjustified dependence upon the
findings of the Member.
The circumstances of this case are therefore a very
unusual application of the category described by Deane J in
Webb[80]
where the dependence or partiality of a decision-maker arises from a direct or
indirect relationship that the decision-maker has
with a person who is involved
in the proceedings.
- The
unusual manner in which the decision-making by Kingham P gives rise to an
apprehension of bias is a consequence of her Honour,
in accordance with order 5
of Bowskill J's orders, quite properly treating herself as bound by the findings
and conclusions of the
Member in relation to all issues other than "groundwater,
intergenerational equity (as it relates to groundwater) and noise". The
dependence by which Kingham P decided those issues was both required and
justified by order 5. Order 5 specifically required (i)
that the parties before
the Land Court be "bound" by, and (ii) that the Land Court "proceed on the basis
of", all findings and conclusions
of the Member other than in relation to
"groundwater, intergenerational equity (as it relates to groundwater) and
noise". But once
the Court of Appeal concluded that there was apprehended bias
on the part of the Member then it followed as a matter of logic that
order 5
could not stand. And without the justification of order 5, the decision of
Kingham P must be taken to be the subject of unjustified
dependence and
therefore apprehended bias.
- Since
the setting aside of order 5 means that the decision of Kingham P involves
unjustified dependence, and therefore apprehended
bias, the decision has no
authority from the Land Court Act 2000 (Qld), the Mineral
Resources Act, or the Environmental Protection Act as an
administrative function of the Land
Court[81].
It was not in dispute that an implication in each of those statutes was that
decisions would be made by a person acting independently
and
impartially[82].
Oakey Coal Action was therefore correct to submit that, prima facie,
order 5 should be set aside because the Judicial Review Act 1991
(Qld) did not empower orders permitting a decision that was dependent upon
the expressed views of a Member about whom there was an
apprehension of
bias[83].
- Although,
prima facie, order 5 should be set aside, the decision of Kingham P cannot
formally be set aside without the joinder of
Kingham P to the
proceedings[84],
a step which Oakey Coal Action chose not to take. But a conclusion that the
decision of Kingham P is a legal nullity, even without
an order setting it
aside[85],
remains important because Oakey Coal Action challenges the decision of the Chief
Executive on New Acland Coal's application under
s 194 of the
Environmental Protection Act, and a precondition for the decision of the
Chief Executive was the decision of Kingham P. The Chief Executive is
joined as a party
to this proceeding.
(2) Continued validity is
not conferred upon the decision of Kingham P by the Supreme Court
order
- In
Kable [No 2][86],
it was held that a judicial order for detention of Mr Kable made by a
superior court of record in excess of the jurisdiction of
that court provided
lawful authority for the executive act of detention of Mr Kable, until the
order was set aside. Although the
court order was later quashed as being outside
jurisdiction, it provided interim support for the act of detention, which would
otherwise
have been without authority. New Acland Coal submitted that order 5 of
the Supreme Court of Queensland, a superior court of record,
was therefore
equally capable of providing lawful authority for the administrative decision of
Kingham P in the Land Court, until
order 5 was set aside.
- Oakey
Coal Action submitted that if the Kable [No 2] principle
operated in this case it would require the Land Court Act, Mineral
Resources Act or Environmental Protection Act to be construed so as
impliedly to allow the Land Court to act with apprehended bias or upon findings
affected by apprehended bias.
This misunderstands New Acland Coal's submission.
New Acland Coal did not suggest that the Kable [No 2] principle
permitted a superior court to amend or expand the jurisdiction of an
administrative body. Rather, the submission was that
an order of a superior
court of record, even if erroneously made, is itself a source of
authority for administrative action that it directs, until the order is set
aside: the effect comes "from the status or
nature of the court making the order
(as a superior court of
record)"[87].
If the order of the superior court were not itself a source of authority then
the State of New South Wales would have been liable
for the false imprisonment
of Mr Kable. By analogy, New Acland Coal argued that until order 5 is
set aside, it is a source of authority
for the Land Court, specifically
Kingham P, to have proceeded on the basis of the findings and conclusions
reached by the Member
other than in respect of the "groundwater,
intergenerational equity (as it relates to groundwater) and noise" issues. The
decision
of Kingham P can also be a potential source of authority for other
acts.
- New
Acland Coal's submission is correct, so far as it goes. "Acts done according to
the exigency of a judicial order afterwards reversed
are protected: they are
'acts done in the execution of justice, which are
compulsive'"[88].
But from the moment that the order is set aside it "can no longer provide the
lawful justification for further action" and, depending
upon the nature and
statutory basis for any action taken in the interim, it will sometimes be
appropriate for "what has been done
[to] be
undone"[89].
While order 5 is extant, the decision of Kingham P remains a valid
act. But once order 5 is set aside, as it should be, the decision
of
Kingham P must be treated as lacking any legal force and acts for which the
validity of the decision is a precondition must also
be invalid, at least in
their future effect.
- An
example can illustrate this point. Suppose that the provisions of the invalid
Community Protection Act 1994 (NSW) considered in Kable v Director of
Public Prosecutions
(NSW)[90]
had empowered the State's Supreme Court to order payment of a fine by
Mr Kable to the State as well as his detention and that the
court order for
his detention also required him to pay a fine to the State. Although the
court order provided lawful authority for
the detention of Mr Kable in the
interim before the order was set
aside[91], it
could not provide continuing authority for the State to retain the benefit of
the fine paid by
Mr Kable[92].
Similarly, once order 5 of Bowskill J's orders is set aside then that
order cannot provide any continuing authority for the decision
of Kingham P
or any acts which are dependent upon the validity of that
decision.
(3) The validity of the decision of Kingham P is a
condition for the valid operation of the decision of the Chief Executive
- New
Acland Coal asserted that the decision of the Chief Executive under s 194
of the Environmental Protection Act is valid even if order 5 is set aside
and the decision of Kingham P has no legal force. It submitted that the factual
existence of
the decision of Kingham P is sufficient to support the continuing
effect of the Chief Executive's decision. New Acland Coal also
submitted that
any future decision by the Minister under s 271A of the Mineral
Resources Act will be valid notwithstanding the invalidity of the decision
of Kingham P. Since no decision has been made under the Mineral
Resources Act, this latter issue does not arise on this appeal.
- The
following is the relevant part of the scheme by which the Chief Executive makes
a decision under s 194 of the Environmental Protection Act
concerning an application for environmental authority for a mining activity
relating to a mining lease. For a standard application
for an environmental
authority, including amendment to an environmental authority, the applicant
gives public notice of the
application[93],
and submissions can be made by the public to the Chief
Executive[94].
The Chief Executive makes a preliminary decision in relation to the conditions
upon the
application[95].
If non-standard conditions are imposed on an application for a mining activity
relating to a mining lease then a notice, which includes
the decision, must be
given to the applicant and those who made the
submissions[96].
Any of those "submitters" may then give an objection
notice[97]. If
an objection notice is given, then s 185 requires the Chief Executive to
refer the application to the Land Court to make an "objections decision".
- Section 194(2)
provides for the final decisions that the Chief Executive can make, including
approving or refusing the application. But that decision-making
power is subject
to conditions precedent in s 194(1). By s 194(1)(a), the
decision-making power is enlivened where there is "an objections decision ...
made about the application" by the Land Court.
- New
Acland Coal submitted that the decision of the Chief Executive remains valid
even if the objections decision by the Land Court
has no legal effect because
the relevant precondition to a decision of the Chief Executive under
s 194(2) is only that as a matter of "fact" an objections decision is made
by the Land Court. Hence, if the Land Court were to give an objections
decision
without jurisdiction then that decision would still suffice for the validity of
the decision of the Chief Executive because
there was still a decision "in
fact".
- In
some instances where a legislative provision requires that a second act depends
upon the existence of a first act the provision
might be construed to require
only that the first act is performed in fact, not that it is validly performed
in law[98]. As
New Acland Coal put it, this reasoning reflects what Professor Forsyth called
the "theory of the second actor", which he explained
as
follows[99]:
"the
validity of these second acts does not depend upon any presumption of validity
or judicial exercise of a discretion to refuse
a remedy to an applicant in
particular proceedings. It depends upon the legal powers of the second actor.
Did that second actor have
power to act even though the first act was
invalid?"
New Acland Coal sought to apply that reasoning by submitting that
s 194(2) requires only the factual existence, not the validity, of a
decision of the Land Court (the first act) as a precondition for the
decision of
the Chief Executive (the second act).
- An
interpretation of such wide power, or such a narrow condition precedent to
power, of the second actor is unlikely to be
common[100].
Against "the background of the familiar proposition that an unlawful act is
void"[101],
when a step in a decision-making process is mandatory, an interpretation that
permits the step to be performed in any invalid way
will often defeat the
intention of Parliament. But New Acland Coal had two submissions in support
of this unusual interpretation.
First, in relation to decisions of the Land
Court made under s 269 of the Mineral Resources Act, New
Acland Coal submitted that there was a release valve or safeguard in
s 271A(1)(c), which provided for the power of the Minister to refer the
matter back to the Land Court. But there is no such safeguard for the
Chief
Executive in the Environmental Protection Act. Secondly, New
Acland Coal relied upon the inconvenience that would result if any
jurisdictional error in a decision of the Land Court
could invalidate a mining
lease granted by the Minister after vast expenditure had been made in relation
to that lease. But it is
impossible to know the force of these practical
considerations when weighed against the short time period of 28 days within
which
to make an application for a statutory order of review in relation to a
decision of the Land
Court[102].
Although that period can be extended by the Supreme
Court[103],
any extension would require consideration of matters including the extent of
delay and any expenditure in the meantime. The practical
considerations do
not detract from the usual conclusion that the mandatory condition precedent to
the decision by the Chief Executive,
and to its continuing effect, is a valid
objections decision of the Land Court.
- In
contrast with New Acland Coal's submissions, three aspects of the terms and
structure of the Environmental Protection Act militate against the
conclusion that the precondition for the Chief Executive to make a decision
under s 194 is the mere "fact" of an objections decision being made, even if
that decision is not valid.
- First,
one of the matters to which the Chief Executive is required to have regard is
the objections decision of the Land
Court[104].
This requirement clearly means the content of the decision and not merely the
fact that it has been made. Secondly, it would neuter
the elaborate scheme
– including public notice, application, submissions by the public,
preliminary decision, notice to submitters,
and referral to the Land Court
– if the only condition for a valid decision by the Chief Executive were a
decision in fact
of the Land Court. Thirdly, the importance of the content of an
objections decision of the Land Court is reinforced by the object
of the
Environmental Protection Act: "to protect Queensland's environment
while allowing for development that improves the total quality of life, both now
and in the future,
in a way that maintains the ecological processes on which
life
depends"[105].
- The
validity of the decision of Kingham P in the Land Court is therefore a
condition for the immediate and continuing validity of
the decision of the Chief
Executive under s 194 of the Environmental Protection Act.
Unless there are discretionary reasons not to do so, the decision of the
Chief Executive should be set aside.
(4) Discretionary factors
do not support a refusal of a new trial
- Oakey
Coal Action submitted that there was no discretion to refuse to order a retrial
when the ground of relief is related to an
apprehension of bias. The forceful
remarks of Kirby and Crennan JJ in Concrete Pty Ltd v Parramatta Design
& Developments Pty
Ltd[106],
upon which Oakey Coal Action relied, serve to emphasise the danger that
apprehensions of bias present to the administration of justice.
But nothing
in those remarks requires that a court be deprived of its residual discretion to
refuse relief in every instance involving
jurisdictional error based upon an
apprehension of bias, including in the grant of relief under ss 30 and 47
of the Judicial Review Act. A fortiori, the residual discretion
must also exist where the decision (here, of the Chief Executive) sought to be
set aside is one
step removed from the apprehended bias, involving an invalid
condition precedent which was the subject of apprehended bias.
- New
Acland Coal pointed to numerous matters militating in favour of refusal of
orders for a rehearing by the Land Court: (i) the
nature of
Kingham P's decision as a mere step in the process towards a final
decision; (ii) the benefit of stringent noise conditions
that Oakey Coal
Action (and the other objectors) obtained as a result of Kingham P's
decision; (iii) New Acland Coal's reliance upon
Kingham P's decision
resulting in the parties abandoning particular grounds of appeal and
cross-appeal; (iv) New Acland Coal having
spent more than $25 million
to ensure that the expansion could proceed immediately upon the receipt of final
approvals; and (v) the
long delays that have already occurred, during which
period Oakey Coal Action "had its day in court", including with more than
100
days of Land Court hearings, and lost all of its grounds of
objection.
- On
balance, these matters are insufficient to justify the highly exceptional course
of this Court refusing a rehearing for a party
whose hearing was decided other
than independently and impartially. Indeed, it cannot be said that Oakey Coal
Action has "had its
day in court" or had lost all of its grounds before an
independent and impartial tribunal. And as for reliance upon the decision
of
Kingham P by New Acland Coal, it is pertinent that one cause of any
rehearing will be the decision of New Acland Coal itself to
persist with what
Sofronoff P described at the hearing as the "nuclear" option of a
cross-appeal seeking to set aside the decision
of the Land Court.
Conclusion
- The
appeal should be allowed and a new hearing ordered before the Land Court. I
agree with the orders proposed in the joint judgment.
[1] Section 4 of the LCA.
[2] Section 3 (definition of
"administrative function") and s 35 of the LCA.
[3] Section 13 of the LCA.
[4] Section 14 of the LCA.
[5] New Acland Coal Pty Ltd v
Ashman [No 4] [2017] QLC 24.
[6] New Acland Coal Pty Ltd v
Smith [2018] QSC 88; (2018) 230 LGERA 88.
[7] New Acland Coal Pty Ltd v
Smith [No 2] [2018] QSC 119.
[8] New Acland Coal Pty Ltd v
Ashman [No 6] [2018] QLC 17.
[9] New Acland Coal Pty Ltd v
Ashman [No 7] [2018] QLC 41.
[10] cf Concrete Pty Ltd v
Parramatta Design & Developments Pty Ltd [2006] HCA 55; (2006) 229 CLR 577 at 611-612
[117].
[11] Oakey Coal Action Alliance
Inc v New Acland Coal Pty Ltd [2019] QCA 184; (2019) 2 QR 271.
[12] Oakey Coal Action Alliance
Inc v New Acland Coal Pty Ltd [2019] QCA 184; (2019) 2 QR 271 at 279-308 [20]- [103].
[13] Oakey Coal Action Alliance
Inc v New Acland Coal Pty Ltd [2019] QCA 184; (2019) 2 QR 271 at 308-310 [104]- [115].
[14] Oakey Coal Action Alliance
Inc v New Acland Coal Pty Ltd [2019] QCA 184; (2019) 2 QR 271 at 310-311 [117].
[15] Oakey Coal Action Alliance
Inc v New Acland Coal Pty Ltd [No 2] (2019) 2 QR 312.
[16] Oakey Coal Action Alliance
Inc v New Acland Coal Pty Ltd [No 2] (2019) 2 QR 312 at 315 [17].
[17] Oakey Coal Action Alliance
Inc v New Acland Coal Pty Ltd [No 2] (2019) 2 QR 312 at 315 [18].
[18] Minister for Immigration and
Multicultural Affairs v Bhardwaj [2002] HCA 11; (2002) 209 CLR 597 at 614-615 [51].
[19] New South Wales v Kable
(2013) 252 CLR 118 at 133 [32], 135 [38]. See also Wilde v Australian Trade
Equipment Co Pty Ltd [1981] HCA 13; (1981) 145 CLR 590 at 603-604.
[20] Minister for Immigration and
Multicultural Affairs v Wang (2003) 215 CLR 518 at 543 [80], quoting Park
Oh Ho v Minister for Immigration and Ethnic Affairs [1989] HCA 54; (1989) 167 CLR 637 at
644.
[21] Minister for Immigration and
Multicultural Affairs v Wang (2003) 215 CLR 518 at 538 [62]. See also
Minister for Immigration and Multicultural Affairs v Thiyagarajah (2000)
199 CLR 343 at 355-356 [32].
[22] Minister for Immigration and
Multicultural Affairs v Wang (2003) 215 CLR 518 at 530 [33].
[23] Johns v Australian
Securities Commission [1993] HCA 56; (1993) 178 CLR 408 at 434.
[24] Section 14 of the LCA.
[25] cf Jadwan Pty Ltd v
Secretary, Department of Health and Aged Care (2003) 145 FCR 1 at 18-19
[48], 27 [84].
[26] Condon v Pompano Pty Ltd
[2013] HCA 7; (2013) 252 CLR 38 at 72 [68], 99 [156], 106-108 [181]-[188].
[27] Ebner v Official Trustee in
Bankruptcy [2000] HCA 63; (2000) 205 CLR 337 at 343 [3], 362-363 [79]-[82], 372-373
[115]-[116].
[28] Isbester v Knox City
Council [2015] HCA 20; (2015) 255 CLR 135 at 146 [21]- [23], 154-155 [55], [57]-[58];
CNY17 v Minister for Immigration and Border Protection [2019] HCA 50; (2019) 94 ALJR 140
at 146-147 [16], [18], 152-153 [53]-[54], 164 [130]; [2019] HCA 50; 375 ALR 47 at 52-53, 60-61,
76.
[29] Pelechowski v Registrar,
Court of Appeal (NSW) [1999] HCA 19; (1999) 198 CLR 435 at 445-446 [26]- [28], 453
[55]. See also Cameron v Cole [1944] HCA 5; (1944) 68 CLR 571 at 585, 589-591.
[30] Minister for Immigration and
Multicultural Affairs v Bhardwaj [2002] HCA 11; (2002) 209 CLR 597 at 614-616 [51]- [53],
618 [63].
[31] New South Wales v Kable
(2013) 252 CLR 118 at 138-139 [52], citing Forsyth, "'The Metaphysic of
Nullity': Invalidity, Conceptual Reasoning and the Rule of
Law", in Forsyth and
Hare (eds), The Golden Metwand and the Crooked Cord (1998) 141, esp
at 147-148.
[32] Section 2 of the MRA.
[33] Section 252A of the MRA.
[34] Section 265 of the MRA.
[35] Section 268 of the MRA.
[36] Section 269(1)-(3) of the
MRA.
[37] Section 269(4) of the MRA.
[38] Section 234 of the MRA.
[39] Section 271 of the MRA.
[40] South Australia v O'Shea
(1987) 163 CLR 378 at 389.
[41] [2017] HCA 30; (2017) 262 CLR 510 at 529 [64]
(footnotes omitted).
[42] Hot Holdings Pty Ltd v
Creasy [1996] HCA 44; (1996) 185 CLR 149.
[43] Wingfoot Australia Partners
Pty Ltd v Kocak [2013] HCA 43; (2013) 252 CLR 480 at 492 [25].
[44] Hot Holdings Pty Ltd v
Creasy [2002] HCA 51; (2002) 210 CLR 438.
[45] Section 3 of the EPA.
[46] Section 426 of the EPA.
[47] Part 4 of Ch 5 of the EPA.
[48] Part 5 of Ch 5 of the EPA.
[49] Section 170(2) of the EPA.
[50] Section 170(2)(b) of the
EPA.
[51] Section 181 of the EPA.
[52] Section 182(2) of the EPA.
[53] Section 185(1) of the EPA.
[54] Section 186 of the EPA.
[55] Section 185(4) of the EPA.
[56] Section 188 of the EPA.
[57] Section 190(1) of the EPA.
[58] Section 191 of the EPA.
[59] Section 194(2) of the EPA.
[60] Section 194(4) of the EPA.
[61] Re Refugee Review Tribunal;
Ex parte Aala [2000] HCA 57; (2000) 204 CLR 82 at 108 [56], quoting R v Commonwealth
Court of Conciliation and Arbitration; Ex parte Ozone Theatres (Aust) Ltd
[1949] HCA 33; (1949) 78 CLR 389 at 400.
[62] Re Refugee Review Tribunal;
Ex parte Aala [2000] HCA 57; (2000) 204 CLR 82 at 108 [56], quoting R v Commonwealth
Court of Conciliation and Arbitration; Ex parte Ozone Theatres (Aust) Ltd
[1949] HCA 33; (1949) 78 CLR 389 at 400.
[63] John Alexander's Clubs Pty
Ltd v White City Tennis Club Ltd [2010] HCA 19; (2010) 241 CLR 1 at 46 [131]- [132].
[64] See Judicial Review Act 1991
(Qld), s 30(1)(a), (b), (d).
[65] New Acland Coal Pty Ltd v
Ashman [No 7] [2018] QLC 41. See Mineral Resources Act 1989 (Qld), s
269; Environmental Protection Act 1994 (Qld), s 190.
[66] See Environmental Protection
Act, s 194.
[67] No issue arises on this appeal,
and no submissions were made, as to the correctness of the Court of Appeal
requiring New Acland
Coal to elect before the appeal whether to pursue its
cross-appeal: compare Concrete Pty Ltd v Parramatta Design & Developments
Pty Ltd [2006] HCA 55; (2006) 229 CLR 577 at 611-612 [117] (Kirby and Crennan JJ) with
634 [172] (Callinan J) and Royal Guardian Mortgage Management Pty Ltd v
Nguyen [2016] NSWCA 88; (2016) 332 ALR 128 at 130-131 [9]- [11].
[68] Oakey Coal Action Alliance
Inc v New Acland Coal Pty Ltd [2019] QCA 184; (2019) 2 QR 271 at 307 [101].
[69] (2013) 252 CLR 118 at 133 [32],
135 [38].
[70] [2002] HCA 51; (2002) 210 CLR 438 at 455-456
[52].
[71] [1999] 2 SCR 817.
[72] See Ebner v Official Trustee
in Bankruptcy [2000] HCA 63; (2000) 205 CLR 337 at 344-345 [6]- [7]; Isbester v Knox City
Council [2015] HCA 20; (2015) 255 CLR 135 at 146 [20]- [23], citing Stollery v Greyhound
Racing Control Board [1972] HCA 53; (1972) 128 CLR 509 at 519 and Hot Holdings Pty Ltd v
Creasy [2002] HCA 51; (2002) 210 CLR 438 at 459 [68].
[73] (1969) 122 CLR 546 at 554.
[74] [1976] HCA 39; (1976) 136 CLR 248 at 263.
[75] [1990] HCA 31; (1990) 170 CLR 70 at 87.
[76] [1994] HCA 30; (1994) 181 CLR 41 at 47,
55-56.
[77] [2000] HCA 63; (2000) 205 CLR 337 at 343 [3],
345 [7]. See also Gaudron J at 362-363 [80] ("a judge who is impartial and who
appears to be impartial"). See also Isbester v Knox City Council [2015] HCA 20; (2015)
255 CLR 135 at 149 [31] ("impartiality of the decision-maker"), 153 [50]
("impartial mind to the decision").
[78] Ebner v Official Trustee in
Bankruptcy [2000] HCA 63; (2000) 205 CLR 337 at 372-373 [115]- [116].
[79] Hot Holdings Pty Ltd v
Creasy [2002] HCA 51; (2002) 210 CLR 438 at 454 [48].
[80] [1994] HCA 30; (1994) 181 CLR 41 at 74.
[81] Land Court Act 2000
(Qld), s 3, Sch 2, definition of "administrative function".
[82] See Land Court Act, s
7(b); Mineral Resources Act, ss 234, 269, 271, 271A; Environmental
Protection Act, ss 170(2), 190(1), 191, 194.
[83] See also Minister for
Immigration and Multicultural Affairs v Bhardwaj [2002] HCA 11; (2002) 209 CLR 597 at 614
[48].
[84] John Alexander's Clubs Pty
Ltd v White City Tennis Club Ltd [2010] HCA 19; (2010) 241 CLR 1 at 46 [131]- [132].
[85] Pelechowski v Registrar,
Court of Appeal (NSW) [1999] HCA 19; (1999) 198 CLR 435 at 445-446 [27]- [28], quoting
Attorney-General (NSW) v Mayas Pty Ltd (1988) 14 NSWLR 342 at 357;
Minister for Immigration and Multicultural Affairs v Bhardwaj [2002] HCA 11; (2002) 209
CLR 597 at 614-616 [51]- [53].
[86] (2013) 252 CLR 118 at 133 [32],
135 [38].
[87] New South Wales v Kable
(2013) 252 CLR 118 at 134 [36].
[88] Commissioner for Railways
(NSW) v Cavanough [1935] HCA 45; (1935) 53 CLR 220 at 225, quoting Dr Drury's Case
[1572] EngR 109; (1610) 8 Co Rep 141b at 143a [77 ER 688 at 691].
[89] Wilde v Australian Trade
Equipment Co Pty Ltd [1981] HCA 13; (1981) 145 CLR 590 at 603.
[90] [1996] HCA 24; (1996) 189 CLR 51.
[91] See Kable v Director of
Public Prosecutions (NSW) [1996] HCA 24; (1996) 189 CLR 51 and New South Wales v
Kable (2013) 252 CLR 118.
[92] British American Tobacco
Australia Ltd v Western Australia [2003] HCA 47; (2003) 217 CLR 30 at 52-53 [41]- [42]. See
also The Commonwealth v McCormack [1984] HCA 57; (1984) 155 CLR 273.
[93] Environmental Protection
Act, Ch 5, Pt 4, Div 2.
[94] Environmental Protection
Act, Ch 5, Pt 4, Div 3.
[95] Environmental Protection
Act, s 170.
[96] Environmental Protection
Act, s 181.
[97] Environmental Protection
Act, s 182.
[98] Boddington v British
Transport Police [1998] UKHL 13; [1999] 2 AC 143 at 172, quoting Forsyth, "'The Metaphysic
of Nullity': Invalidity, Conceptual Reasoning and the Rule of Law", in
Forsyth
and Hare (eds), The Golden Metwand and the Crooked Cord (1998) 141 at
159; Wintawari Guruma Aboriginal Corporation RNTBC v Wyatt [2019] WASC 33
at [78]- [84].
[99] Wade and Forsyth,
Administrative Law, 11th ed (2014) at 252.
[100] See, eg, Forrest &
Forrest Pty Ltd v Wilson [2017] HCA 30; (2017) 262 CLR 510 at 529 [64].
[101] Boddington v British
Transport Police [1998] UKHL 13; [1999] 2 AC 143 at 172, quoting Forsyth, "'The Metaphysic
of Nullity': Invalidity, Conceptual Reasoning and the Rule of Law", in
Forsyth
and Hare (eds), The Golden Metwand and the Crooked Cord (1998) 141 at
159.
[102] Judicial Review Act,
s 26.
[103] Judicial Review Act,
s 26(1)(b).
[104] Environmental Protection
Act, s 194(4)(a)(i).
[105] Environmental Protection
Act, s 3.
[106] [2006] HCA 55; (2006) 229 CLR 577 at
611-612 [117].