Young v Chief Executive Officer (Housing) [2023] HCA 31 (1 November 2023)
Last Updated: 1 November 2023
HIGH COURT OF AUSTRALIA
KIEFEL CJ,
GAGELER,
GORDON, EDELMAN AND GLEESON JJ
WAYNE MATTHEW YOUNG AS ADMINISTRATOR
OF THE ESTATE OF KWEMENTYAYE
YOUNG & ANOR APPELLANTS
AND
CHIEF EXECUTIVE OFFICER
(HOUSING) RESPONDENT
Young v Chief Executive Officer (Housing)
[2023] HCA
31
Date of Hearing: 16 March 2023
Date of Judgment: 1 November
2023
D5/2022
ORDER
- Appeal
allowed.
- Set
aside order 4 of the orders made by the Court of Appeal of the Supreme Court of
the Northern Territory on 4 February 2022.
- The
respondent pay the appellants' costs of the first and second grounds of the
appeal to this Court.
On appeal from the Supreme Court
of the Northern Territory
Representation
M L L Albert
for the appellants (instructed by Australian Lawyers for Remote Aboriginal
Rights)
N Christrup SC, Solicitor-General for the Northern Territory, with
H H Baddeley for the respondent (instructed by
MinterEllison)
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
Young v Chief Executive Officer (Housing)
Residential tenancies – Where s 122(1) of Residential
Tenancies Act 1999 (NT) ("Act") relevantly provided Civil and Administrative
Tribunal of the Northern Territory ("Tribunal") may order compensation for
loss
or damage suffered by landlord or tenant under tenancy agreement be paid by
other party because other party failed to comply
with agreement – Where
tenancy agreement between parties prescribed by Act – Where term of
tenancy agreement imposed by s 49(1) of Act required landlord to take
reasonable steps to provide and maintain locks and other security devices
necessary to ensure premises
and ancillary property were reasonably secure
– Where premises had no back door for 68 months – Whether Tribunal
empowered
by s 122(1) to order landlord compensate tenant for loss or
damage by way of distress and disappointment due to insecurity tenant felt
because
of landlord's breach of tenancy agreement – Whether s 122
incorporated common law principles of remoteness – Whether common law
principles of remoteness precluded tenant from recovering
compensation for
distress and disappointment unless consequent upon physical inconvenience.
Words and phrases – "breach of contract", "causation",
"compensation for loss or damage", "damages", "disappointment", "distress",
"insecurity", "landlord", "peace of mind", "reasonable steps", "reasonably
secure", "remoteness", "residential premises", "residential
tenancy", "scope of
duty", "security device", "statutory compensation", "tenancy agreement".
Residential Tenancies Act 1999 (NT), ss 49, 122.
- KIEFEL CJ,
GAGELER AND GLEESON JJ. The dispositive question in this appeal is
whether the Civil and Administrative Tribunal of the
Northern Territory ("the
Tribunal") is empowered by s 122(1) of the Residential Tenancies Act 1999
(NT) ("the Act") to order that a landlord compensate a tenant for distress or
disappointment suffered by the tenant as a normal healthy reaction
to a failure
on the part of the landlord to comply with a statutorily imposed term of a
residential tenancy agreement that the landlord
take reasonable steps to provide
and maintain security devices necessary to ensure that residential premises are
reasonably secure.
The answer is that the Tribunal is so
empowered.
Facts and procedural history
-
Ms Young was the tenant of residential premises at Ltyentye Apurte, also known
as Santa Teresa, an Aboriginal community approximately
85 kilometres from Alice
Springs. The Chief Executive Officer (Housing) ("the CEO"), a corporation sole
established under the Housing Act 1982 (NT), was the landlord. For 68
months, the premises had no back door in the doorframe.
- The
written form of tenancy agreement between the CEO and Ms Young was not in
accordance with s 19(1) of the Act in that it did not contain terms to the
effect of each term specified by the Act to be a term of a tenancy agreement.
The consequence was that, for the purposes of the Act, the tenancy agreement
between the CEO and Ms Young was taken by s 19(4) of the Act to be the
prescribed tenancy agreement set out in Sch 2 to the Residential Tenancies
Regulations 2000 (NT). As required by s 49(1) of the Act, cl 12(1) of
the prescribed tenancy agreement provided that "[t]he landlord will take
reasonable steps to provide and maintain the
locks and other security devices
that are necessary to ensure the premises and ancillary property are reasonably
secure".
- Ms
Young applied to the Tribunal for an order under s 122(1) of the Act that the
CEO compensate her for loss or damage she claimed to have suffered because of
non-compliance by the CEO with the tenancy
agreement. Her application included a
claim to be compensated for loss or damage by way of distress and disappointment
due to the
insecurity she felt because of the CEO's failure to provide a back
door in compliance with the term of the tenancy agreement imposed
by s 49(1) of
the Act.
- Taking
the view that an external door is not "a security device" within the meaning of
s 49(1) of the Act, the Tribunal found no breach of the term of the tenancy
agreement specified in that sub-section and on that basis dismissed the
application for compensation for non-compliance with
it[1].
- On
appeal on a question of law to the Supreme Court of the Northern Territory under
s 141 of the Northern Territory Civil and Administrative Tribunal Act 2014
(NT), the CEO conceded that an external door is a security device within the
meaning of s 49(1) of the Act, that having a back door was necessary to ensure
that the premises were reasonably secure, and that the CEO had failed to comply
with the term of the tenancy agreement specified in s 49(1) of the
Act[2].
- Accepting
that concession, Blokland J set aside so much of the decision of the Tribunal as
had dismissed the application for compensation
for non-compliance with the term
specified in s 49(1) of the Act. Going on to assess compensation for
non-compliance with that term herself, Blokland J substituted an order that the
CEO pay compensation
to Ms Young in the sum of $10,200 in respect of loss or
damage identified as "distress and disappointment due to the failure to provide
a premises which was
secure"[3].
- On
further appeal to the Court of Appeal of the Supreme Court of the Northern
Territory under s 51 of the Supreme Court Act 1979 (NT), the Court of
Appeal, constituted by Grant CJ, Southwood and Barr JJ, set aside the order made
by Blokland J that the CEO pay
compensation to Ms Young. The Court of Appeal
construed s 122(1) of the Act as importing principles of remoteness that
limit the assessment of damages for breach of contract at common
law[4] and took the view that
those principles operated to exclude compensation for distress or disappointment
arising from non-compliance
with a term of the tenancy agreement other than in
consequence of physical
inconvenience[5].
- The
Court of Appeal recorded that no issue was raised before it as to whether the
order made by Blokland J was within the jurisdiction
of the Supreme Court on an
appeal on a question of law under s 141 of the Northern Territory Civil and
Administrative Tribunal
Act[6]. Nor has any such
issue been raised in this
Court[7].
- Pursuant
to a grant of special leave[8],
the appeal to this Court from the decision of the Court of Appeal has been
argued on two logically alternative grounds. The first
ground is to the effect
that the Court of Appeal erred in construing s 122 of the Act to import common
law principles of remoteness. The second ground is to the effect that the Court
of Appeal erred as to the content
and application of those common law
principles.
- The
appeal is to be allowed on the first ground, with the consequence that the
second ground does not arise for consideration.
Compensation
under the Act
- The
objectives of the Act are expressed to include "to fairly balance the rights and
duties of tenants and
landlords"[9], "to improve the
understanding of landlords, tenants and agents of their rights and obligations
in relation to residential
tenancies"[10], and "to
ensure that landlords and tenants are provided with suitable mechanisms for
enforcing their rights under tenancy agreements
and this
Act"[11].
- The
Act significantly restricts the freedom of landlord and tenant to agree upon
terms of occupation of residential premises. Most notably,
as occurred in this
case, if a tenancy agreement does not meet the requirements of s 19(1) of
the Act, then s 19(4) imposes upon the parties the agreement prescribed by the
Regulations. Further, the parties are unable to contract out of the operation
of
the Act[12].
- Part
13 of the Act is headed "Financial liabilities". Division 2 of that Part is
headed "Compensation". Within Div 2 are ss 120, 121 and 122. Sections 121 and
122(2) and (4) are of no present relevance.
- Section
120 provides:
"The rules of the law of contract about mitigation of loss or damage on breach
of a contract apply to a breach of a tenancy agreement."
- Section
122 relevantly provides:
"(1) Subject to subsection (2), the Tribunal may, on the application of a
landlord or the tenant under a tenancy agreement, order
compensation for loss or
damage suffered by the applicant be paid to the applicant by the other party to
the agreement because:
(a) the other party has failed to comply with the agreement or an obligation
under this Act relating to the tenancy agreement; or
(b) the applicant has paid to the other party more than the applicant is
required to pay to that other party in accordance with this
Act and the
agreement.
...
(3) In determining whether to order the payment of compensation to a party, the
Tribunal must take into account each of the following:
(a) whether the person from whom the compensation is claimed has taken all
reasonable steps to comply with his or her obligations
under this Act and the
tenancy agreement, being obligations in respect of which the claim is made;
(b) in the case of a breach of a tenancy agreement or this Act – whether
the applicant has consented to the failure to comply with obligations in respect
of which the claim is made;
(c) whether money has been paid to or recovered by the applicant by way of
compensation, including any money recovered or entitled
to be recovered from the
security deposit paid under the tenancy agreement;
(d) whether a reduction or refund of rent or other allowance has been made to or
by the applicant in respect of the tenancy agreement;
(e) whether an action was taken by the applicant to mitigate the loss or
damage;
(f) any tender of compensation;
(g) if the claim is made in respect of damages to the premises to which the
tenancy agreement relates – any action taken by
the person from whom the
compensation is claimed to repair the damage at his or her own expense.
...
(5) The Tribunal is not to make an order under this section:
(a) for the payment of compensation in respect of death, physical injury, pain
or suffering; ..."
- There
is no dispute that the "loss or damage" to which reference is made in s 122(1)
can extend to non-economic loss and can include non-economic loss in the form of
disappointment or distress suffered by a landlord
or a tenant as "a normal,
rational reaction of an unimpaired
mind"[13]. There is also no
dispute that disappointment or distress of that nature is not "physical injury,
pain or suffering" so that an order
for compensation in respect of
disappointment or distress of that nature is not precluded by
s 122(5)(a)[14].
- The
Court of Appeal took the view that the principles of remoteness applicable to
the assessment of damages for breach of contract
at common law are imported into
s 122(1) by the reference in s 122(1) to "loss or damage suffered by the
applicant ... because" in its application to a circumstance referred to in
s 122(1)(a) where "the other party has failed to comply with the
agreement"[15].
- On
the appeal to this Court, the CEO sought to support the Court of Appeal's
construction of s 122(1) by reference to the overall design of the Act by which
certain obligations, including that specified in s 49(1), are made terms of a
tenancy agreement and thereby become enforceable in contract at common law. The
CEO argued that s 122(1) follows through with that legislative design by
incorporating the common law concerning both breach of contract and
recoverability
of damages for breach of contract subject only to "modification"
of the common law concerning recoverability of damages by s 122(3) and (5).
According to the CEO, s 120 confirms incorporation of the common law concerning
recoverability of damages into s 122(1). Section 120's singling out of common
law rules about mitigation for application to a breach of a tenancy agreement,
according to the CEO, is to
be understood as being for the avoidance of
doubt.
- The
reasoning of the Court of Appeal and the argument of the CEO correctly accepted
that: (1) the language of s 122(1) must be construed and applied purposively
within the context of the
Act[16]; and (2) the
statutory language requires an applicant to establish a causal connection
between a breach of the tenancy agreement
and compensable loss or damage, which
may require consideration of issues of the kind that would be addressed in the
assessment of
damages at common law under the rubric of
remoteness[17].
- The
reasoning of the Court of Appeal and the argument of the CEO were also correct
to the extent that they identified the design
of the Act as being to provide for
the application of the general law of contract, by making certain obligations
terms of a tenancy agreement
so as thereby to become enforceable contractual
obligations carrying "full contractual liability for
breach"[18]. Whether the main
purpose of that element of the legislative design was to improve the
understanding of landlords and tenants of
their rights and obligations in
relation to residential tenancies by requiring those obligations to be recorded
in the terms of tenancy
agreements or to ensure that landlords and tenants are
provided with contractual mechanisms for enforcing their rights under tenancy
agreements need not be explored.
- Breach
of an obligation made a term of a tenancy agreement, such as the obligation
specified in s 49(1), would be remediable in the original jurisdiction of
the Supreme Court either in an application for equitable relief or in an action
for damages at common law. The assessment of damages in any such action at
common law would be governed by common law principles
of remoteness. The
assessment of damages in any such action would also be governed by s 120, which
operates to remove any doubt that common law principles about mitigation of loss
or damage on breach of a contract are applicable
to a breach of a tenancy
agreement[19].
-
Where the reasoning of the Court of Appeal and the argument of the CEO went too
far was in postulating a further element of the
design of the Act to be that the
measure of compensation capable of being ordered by the Tribunal under s 122 of
the Act for breach of a term of a tenancy agreement is confined by reference to
the measure of damages that could be ordered by a court for
breach of that term
of that tenancy agreement in a common law action for breach of contract.
Statutory compensation under s 122 is rather to be seen as an alternative, and
likely more accessible, remedy to common law damages for breach of a tenancy
agreement.
- It
is consonant with the legislative objective of ensuring that landlords and
tenants are provided with suitable mechanisms for enforcing
their rights under
tenancy agreements to recognise that s 122 leaves such remedies as may be
available to landlords and tenants at common law or in equity untouched and
provides an additional
mechanism by which landlords and tenants can obtain from
the Tribunal statutory compensation the measure of which is provided by
the Act
itself. Double recovery is avoided by the requirement of s 122(3)(c) that any
money that may have been recovered by way of compensation must be taken into
account by the Tribunal in determining whether
to order compensation under
s 122(1).
- The
language and structure of s 122(1)(a) provides no basis for differentiating in
principle between the evaluative judgment to be made by the Tribunal in
determining the
existence and extent of compensable loss or damage suffered by
an applicant because the other party has failed to comply with an
obligation
imposed as a term of a tenancy agreement, on the one hand, and the evaluative
judgment to be made by the Tribunal in determining
the existence and extent of
compensable loss or damage suffered by an applicant because the other party has
failed to comply with
an obligation imposed directly by force of the Act in
relation to a tenancy agreement, on the other hand. To adapt language drawn from
judicial descriptions of the evaluative judgments
required to be made in
determining statutory compensation in other statutory
contexts[20], the task of the
Tribunal in each case is to arrive at a measure of compensation which conforms
to the purposes of the Act and to the justice and equity of the case, having
regard to the nature and purpose of the particular obligation with which there
has been failure to comply and taking into account each of the mandatory
considerations specified in s 122(3).
- In
the case of an obligation specified by the Act to be a term of a tenancy
agreement, just as in the case of an obligation imposed directly by force of the
Act in relation to a tenancy agreement, the nature and purpose of the particular
obligation falls to be determined by reference to principles
of statutory
interpretation.
- In
the case of an obligation imposed by a bespoke term of a tenancy agreement, the
nature and purpose of the particular obligation
falls to be determined by
reference to common law principles of contractual interpretation applicable
within a context[21] which,
critically, includes the Act itself. Although the Act contemplates that
landlords and tenants might enter into written tenancy agreements containing
terms additional to those specified
by or under the Act to be a term of a
tenancy agreement, s 20 makes clear that any such term can have legal effect
only to the extent to which that term is not inconsistent with the Act.
- The
only difference in the application of s 122(1)(a) as between a case where the
other party has failed to comply with an obligation imposed as a term of a
tenancy agreement and a case
where the other party has failed to comply with an
obligation imposed directly by force of the Act is that the mandatory
consideration specified in s 122(3)(e), in terms of whether an action was
taken by an applicant for compensation to mitigate the loss or damage, is
hardened by s 120 in a case of a failure to comply with an obligation imposed as
a term of a tenancy agreement into a rule that the applicant for compensation
must mitigate his or her loss or damage in the same way as if the applicant were
a plaintiff in a common law action for damages for
breach of contract.
Compensation in this case
- The
evident purpose of the obligation specified by s 49(1) of the Act to be a
term of a tenancy agreement, with which the CEO as landlord failed to comply, is
ensuring that premises occupied by a tenant
for the purpose of residency are
reasonably secure. For a tenant to be secure in the occupation of premises is
for the tenant to
reside there free from threat of harm or unwanted access. The
feeling of insecurity which Ms Young experienced because of the landlord's
failure to provide the residential premises with a back door was the obverse of
the security which it was the purpose of that obligation
to secure. The
connection between the landlord's breach and the distress and disappointment
suffered by Ms Young readily satisfied
the causal connection required by the
word "because" in s 122(1).
- Whether
or not the distress and disappointment found to have been suffered by Ms Young
due to the failure of the CEO to provide the
requisite security would have been
compensable in an action for damages at common law, Ms Young's distress and
disappointment was
compensable on application to the Tribunal under s 122(1)(a)
of the Act, subject to the Tribunal's consideration of the factors prescribed by
s 122(3).
Orders
- The
orders appropriate to be made are:
(1) Appeal allowed.
(2) Set aside order 4 of the orders made by the Court of Appeal on
4 February 2022.
(3) The respondent pay the appellants' costs of the first and second grounds
of the appeal to this Court.
GORDON AND EDELMAN JJ.
Introduction
- This
appeal concerns the manner in which compensation for loss or damage should be
quantified under s 122 of the Residential Tenancies Act
1999 (NT) for a breach of a term of a residential tenancy agreement
requiring the landlord to take various security precautions to ensure
that the
premises are reasonably secure. The Supreme Court of the Northern Territory
overturned the conclusion of the Northern Territory
Civil and Administrative
Tribunal ("the Tribunal"), finding that the respondent landlord breached that
term by failing, for years,
to ensure that there was a back door installed in
the external doorway of the premises leased to the first appellant,
Ms Young. The
Supreme Court made orders including for payment of
compensation to Ms Young of $10,200 for disappointment and distress caused
by
that breach. The Court of Appeal of the Supreme Court of the Northern
Territory allowed the respondent landlord's appeal, concluding
that the central
object of a residential tenancy agreement was not to provide pleasure,
entertainment, or relaxation, and therefore
compensation for disappointment and
distress was not available unless it was consequential upon physical
inconvenience suffered by
Ms Young.
- The
first issue that arises is whether compensation for loss or damage under
s 122 incorporates the common law limits on recovering compensation or
damages for breach of contract. If it does, the second issue is
whether, absent
personal injury, those common law limits preclude Ms Young from recovering
compensation for disappointment and distress
unless it is consequent upon
physical inconvenience.
- The
first issue arises from Ms Young's submission that an award of compensation
under s 122(1) of the Residential Tenancies Act contains no
limitations on recovery, other than causation, for loss or damage
suffered because of a failure to comply with the tenancy agreement. In other
words, so long as loss or damage was
caused by the breach, the availability of
compensation under s 122(1) was not limited by reference to notions of
scope of duty or remoteness. That submission should not be accepted. There are
limits
on recoverable compensation under s 122(1) which are incorporated in
the concept of "compensation", its award "for loss or damage", and the
requirement that the loss or damage
arise "because ... the other party has
failed to comply with the agreement".
- At
every stage in this litigation, the parties accepted that if any principles
limiting the recovery of damages did apply to the
assessment of compensation
under s 122, then those principles would be common law
principles[22]. No party to
this appeal sought to depart from that approach. The parties were right not to
contemplate that the rules that limit
recoverable damages in s 122(1) of
the Residential Tenancies Act were some unique, unspecified, and
uncertain statutory rules. The model adopted by the Residential Tenancies Act
included the creation of terms that were to become part of tenancy
agreements, presupposing the operation of general contract law
rules. But
even if the Residential Tenancies Act were to be taken to have silently
permitted the creation by the Tribunal of a new regime for "compensation" and
"loss or damage",
it is hard to see why any newly created regime by the Tribunal
should be informed by anything other than the common law rules that
have been
developed incrementally over centuries. The Tribunal need not engage in an
exercise of developing new rules to limit the
recoverability of compensation
under the Residential Tenancies Act for breach of a contractual
obligation in a tenancy agreement.
- As
to the second issue, the common law rules concerning limitation of recovery of
compensation or damages for breach of contract
preclude recovery of damages for
disappointment and distress where that disappointment and distress is not
consequential upon physical
injury or physical inconvenience. That is, damages
for disappointment and distress are not available at common law unless an object
of the contract, or the specific term that is breached, was concerned with the
promisee's state of mind. The relevant contract term
breached in this case, with
its focus upon the safety and security of the premises, had an object which
included providing the tenant
with security and peace of mind. The appeal should
therefore be allowed.
Background
- The
first appellant, Ms Young, is an Aboriginal woman, resident of a remote
Aboriginal community in the town of Ltyentye Apurte/Santa
Teresa,
approximately 85 kilometres from Alice Springs, in the Northern Territory
of Australia. She is one of 70 applicants who brought
applications in the
Tribunal concerning alleged breaches of the Residential Tenancies Act by
their landlord, the Chief Executive Officer
(Housing)[23].
- The
second appellant, the estate of Mr Conway, was treated by the parties
before this Court as having the same material interest
as Ms Young in this
appeal. Mr Conway was also a resident of Ltyentye Apurte/Santa Teresa
and was also one of the applicants before
the Tribunal. The circumstances of his
application before the Tribunal were not the subject of submissions in this
Court.
- At
the time of Ms Young's tenancy agreement with the Chief Executive Officer
(Housing), she was 71 years old. She spoke little English
and did not read
English. Her first language was Eastern Arrernte. The Chief Executive Officer
(Housing) is a statutory body corporate
sole with functions and powers to assist
in the provision of residential housing including by
lease[24].
- Ms Young's
tenancy was found to have commenced on 13 November
2011[25]. Her written tenancy
agreement was found to be invalid, so the tenancy was a prescribed tenancy under
s 19(4) of the Residential Tenancies
Act[26]. The terms of the
tenancy included rent of $184 to be paid per week and the terms set out in
Sch 2 to the Residential Tenancies Regulations
2000 (NT)[27].
- The
premises leased to Ms Young were alleged to be defective in numerous
respects[28]. One respect was
that for several years from the time that her tenancy commenced, the Chief
Executive Officer (Housing) had failed
to provide Ms Young with a back
door. The absence of a back door was a significant impairment of security in
circumstances where,
as Ms Young described, roaming wild horses may have
bent a fence around the property, and where a snake may have entered the house
through a gap that was left between the door and the doorframe following the
eventual installation of a back door by the Chief Executive
Officer
(Housing)[29]. Ms Young
was "an elderly woman who was left vulnerable to proven animal intruders and
potentially human
intruders"[30].
- On
22 January 2016, a solicitor acting for Ms Young wrote to the Chief
Executive Officer (Housing) saying that there had been no
back door on the
premises and that, although a mesh-steel door had been installed by
Ms Young, a new door was required. More than
six weeks later, in late March
2016, the Chief Executive Officer (Housing) installed a new back
door[31].
- In
the Tribunal, Ms Young sought orders for repairs to be made to the
premises, as well as a payment of compensation under s 122(1) of the
Residential Tenancies Act. The Chief Executive Officer (Housing) was
ordered to: refund rent of $4,735.80 for 540 days during which the premises
were uninhabitable
due to the lack of an air-conditioner; pay $4,000 in damages
for distress arising from the associated physical inconvenience from
the lack of
an air-conditioner; and pay $200 in damages for the breach of its duty to repair
Ms Young's stove for a period of
170
days[32]. None of
these matters was an issue on appeal to this Court. The relevant issue concerned
the Tribunal's decision in relation to
the failure by the Chief Executive
Officer (Housing) to install a back door.
- The
Tribunal held that by leasing a premises without a back door, the Chief
Executive Officer (Housing) did not breach its obligation
under s 48(1) of
the Residential Tenancies Act to ensure that the premises were
"habitable"[33]. The Tribunal
also considered whether the failure to provide a back door amounted to a breach
of a term of the tenancy agreement
created by s 49(1) of the Residential
Tenancies Act, which provides:
"It is a term of a tenancy agreement that the landlord will take reasonable
steps to provide and maintain the locks and other security
devices that are
necessary to ensure the premises and ancillary property are reasonably secure."
- Although
the Tribunal accepted (in respect of a different applicant) that the failure by
the Chief Executive Officer (Housing) to
provide a key to a front door lock
would be a breach of the term created by
s 49(1)[34], the
Tribunal held that there was no breach of that term by failing to provide an
entire door[35]. The Tribunal
did, however, conclude that the Chief Executive Officer (Housing) breached its
obligation of the term in s 57 of the Residential Tenancies Act to
carry out repairs with reasonable diligence by taking more than six weeks to
install a back door from the time of being given notice
by Ms Young.
Damages of $100 were
awarded[36].
- The
Supreme Court of the Northern Territory of Australia granted Ms Young leave
to appeal[37] and allowed her
appeal with respect to
s 49(1)[38].
Blokland J found, and the Chief Executive Officer (Housing) properly
conceded, that the failure to provide a back door was a breach
"at a fundamental
level" of the term created by s 49(1) of the Residential Tenancies
Act[39]. Blokland J
awarded $10,200 in compensation under s 122 of the Residential Tenancies
Act for disappointment and distress, being $150 per month for
68 months[40].
Blokland J made the following orders in relation to Ms Young's appeal
in the form of a compound order,
Order 5[41]:
"Ground E is upheld. The decision of the Tribunal to dismiss Ms Young's claim
under s 49 of the Residential Tenancies Act is set aside. The
respondent is to pay compensation under s 122 of the Residential
Tenancies Act to Ms Young in the sum of $10,200. Payment is to be made
within 28 days from today."
- Ms Young
appealed to the Court of Appeal from the third sentence of the compound order,
asserting the inadequacy of the award of
$10,200 in compensation. Her appeal in
relation to quantum has not yet been heard.
- The
Chief Executive Officer (Housing) also appealed to the Court of Appeal,
including from the order to pay compensation of $10,200.
The Court of Appeal
allowed the appeal. The Court of Appeal held that s 122 of the
Residential Tenancies Act should follow the approach to remoteness of
damage for breach of contract. The Court of Appeal held that compensation under
that section
was therefore not available for disappointment and distress which
is not consequential upon physical inconvenience, because a residential
tenancy
agreement is not a contract whose object is to provide enjoyment, relaxation or
freedom from
molestation[42].
- The
orders made by the Court of Appeal erroneously included an order (Order 5)
setting aside the whole of Order 5 of Blokland J.
At the commencement
of the oral hearing in this Court, orders were made to correct that error, which
had resulted in the accidental
dismissal of Ms Young's claim for breach of
the obligation created by s 49(1) of the Residential Tenancies
Act, and to leave extant Ms Young's pending appeal in the Court
of Appeal concerning the quantification of damages for that breach.
- Order 5
of the Court of Appeal purported to follow from Order 4, which was expressed as
follows: "The appeal is allowed on the ground
asserting that the Supreme Court
erred in finding that the tenancy agreement was an agreement whose object was to
provide enjoyment,
relaxation or freedom from molestation" (and was therefore
one for which damages could be recovered for disappointment and distress
caused
by the breach independently of any physical inconvenience). As Order 4 was
expressed only to concern a ground of appeal, not
the appeal itself, it was,
strictly, no order at all. Rather, Order 4 was in the nature of a
declaration that the $10,200 award of
compensation for disappointment and
distress by Blokland J should be considered in Ms Young's forthcoming
appeal to the Court of
Appeal as damages which are consequential only upon
physical inconvenience. In other words, Ms Young would be entitled to
compensation
for disappointment and distress arising from physical inconvenience
— for example, from extra cleaning occasioned by not having
a back door
— but not the disappointment and distress from feelings of
insecurity.
- A
related question on this appeal is, therefore, whether Order 4 should also be
set aside so that it can be recognised that compensation
for disappointment and
distress following a breach of s 49(1) of the Residential Tenancies
Act can be awarded independently of physical
inconvenience.
The first issue: s 122 of the Residential
Tenancies Act
An issue of interpretation
- Ms Young's
first ground of appeal asserted that s 122 of the Residential Tenancies
Act did not incorporate any "restrictions imposed by the principles of
remoteness and foreseeability". Ms Young submitted that the only
restriction upon the recovery of compensation for loss or damage is that such
loss or damage must be caused by a breach of the tenancy
agreement or an
obligation under the Residential Tenancies Act related to the tenancy
agreement. The assumption underlying this submission is that other common law
restrictions do not apply to
limit recovery of compensation for loss or damage
under s 122, including where the loss or damage is beyond the scope of the
relevant duty. If this interpretation is correct, then the Residential
Tenancies Act has, in respect of compensation under s 122, preserved
and sometimes amended the operation of some general contract law rules, but
silently altered the operation of other rules
(including those related to
remoteness and scope of duty) without any provision for the alteration.
Section 122 of the Residential Tenancies Act
- Section 122
provides:
"Compensation and civil penalties
(1) Subject to subsection (2), the Tribunal may, on the application of a
landlord or the tenant under a tenancy agreement, order
compensation for loss or
damage suffered by the applicant be paid to the applicant by the other party to
the agreement because:
(a) the other party has failed to comply with the agreement or an obligation
under this Act relating to the tenancy agreement; or
(b) the applicant has paid to the other party more than the applicant is
required to pay to that other party in accordance with this
Act and the
agreement.
(2) A party may not apply under subsection (1) for:
(a) compensation payable under section 121; or
(b) loss or damage suffered by reason of a breach of the landlord's duty to
repair, unless notice under 58(1) has been given.
(3) In determining whether to order the payment of compensation to a party, the
Tribunal must take into account each of the following:
(a) whether the person from whom the compensation is claimed has taken all
reasonable steps to comply with his or her obligations
under this Act and the
tenancy agreement, being obligations in respect of which the claim is made;
(b) in the case of a breach of a tenancy agreement or this Act — whether
the applicant has consented to the failure to comply with obligations in respect
of which the claim is made;
(c) whether money has been paid to or recovered by the applicant by way of
compensation, including any money recovered or entitled
to be recovered from the
security deposit paid under the tenancy agreement;
(d) whether a reduction or refund of rent or other allowance has been made to or
by the applicant in respect of the tenancy agreement;
(e) whether an action was taken by the applicant to mitigate the loss or
damage;
(f) any tender of compensation;
(g) if the claim is made in respect of damages to the premises to which the
tenancy agreement relates — any action taken by
the person from whom the
compensation is claimed to repair the damage at his or her own expense.
(4) If a party to a tenancy agreement is found guilty of an offence against this
Act by a court, that court, another court or the Tribunal may, on the
application of the other party to the agreement, order the person
convicted to
pay to the applicant compensation for any loss or damage suffered by the
applicant because of the commission of the
offence.
(5) The Tribunal is not to make an order under this section:
(a) for the payment of compensation in respect of death, physical injury, pain
or suffering; or
(b) in respect of a failure to pay rent unless:
(i) the rent has been unpaid for at least 14 days after it is due and payable;
or
(ii) the tenant has failed on at least 2 previous occasions to pay rent under
the same agreement within 14 days after it was due
and payable."
The different types of claim recognised within s 122
- Section 122(1)
contemplates a variety of different types of "compensation for loss or damage
suffered by the applicant". Plainly, the same rules
of "compensation" will not
apply to all types of "loss or damage". For instance, there is a vast difference
between "compensation
for loss or damage" arising from s 122(1)(a) and
s 122(1)(b). A claim under s 122(1)(a) for failure to comply with the
tenancy agreement is a claim for compensation for loss or damage for a breach of
contract. A claim
under s 122(1)(a) for failure to comply with an
obligation under the Residential Tenancies Act relating to the tenancy
agreement is a claim for compensation for loss or damage for breach of a
statutory obligation. And a claim
under s 122(1)(b) for recovery of an
overpayment is a claim for restitution.
- Although
the three types of claim are all contained within s 122, the Residential
Tenancies Act plainly manifests an intention that they be treated
differently. For instance, throughout the Residential Tenancies Act, some
obligations are created as "a term of a tenancy
agreement"[43], others are
created as statutory civil duties or statutory
offences[44], and some are
created both as terms of the tenancy agreement and as statutory
offences[45].
- The
three different types of claim are also governed by different rules in
s 122. For instance, it is well established that the remedy of restitution
of an overpayment is of a different nature from the remedy of
damages[46]. In particular, a
"claim for restitution is a liquidated demand which, by contrast to an
unliquidated claim for damages, may provide
easier and quicker recovery
including by way of summary
judgment"[47]. It is also
well established that, although "analogies may be helpful", it is "wrong to
approach the operation of ... provisions"
that deal with remedies for breach of
a statutory obligation (such as s 82 of the Trade Practices Act
1974 (Cth), now s 236 of the Australian Consumer
Law[48]) "by beginning
the inquiry with an attempt to draw some analogy with any particular form of
claim under the general
law"[49]. By contrast, where
a statutory remedy of "compensation for loss or damage" arises because of a
failure to comply with a tenancy
agreement, there is no analogy that needs to be
drawn with a breach of contract. The breach is a breach of contract.
- This
appeal is concerned only with the rules that govern a claim for compensation
under s 122(1)(a) for loss or damage suffered because of a failure to
comply with the tenancy agreement. The relevant "term of a tenancy agreement"
alleged to have been breached is that created and required by s 49(1) of
the Residential Tenancies Act, concerning the obligation of a
landlord to ensure the premises and ancillary property are reasonably
secure.
The general contract law rules preserved by
s 122
- The
default position in s 122 of the Residential Tenancies Act is to
adopt general contract law rules in respect of a claim for compensation for loss
or damage suffered because of a failure to
comply with the tenancy agreement. In
some instances this is done expressly. For instance, s 120 of the
Residential Tenancies Act provides that "[t]he rules of the law of
contract about mitigation of loss or damage on breach of a contract apply to a
breach of
a tenancy agreement". In other instances it is done by implication.
For instance, the Residential Tenancies Act stipulates procedures for
termination following a breach of the
agreement[50], but makes
little provision for the rules for determining whether there has been a
"fail[ure] to comply with the
agreement"[51] or which
parties are privy to the agreement. Those rules must be the general contract law
rules concerning breach and privity. And
just as the general contract law rules
concerning breach are implicit in the requirement of a "fail[ure] to comply with
the agreement",
so too the general contract law rules concerning compensation
are implicit in the meaning of "loss or damage" suffered because of
a breach of
the tenancy agreement.
- It
is notable that s 122 uses the same expression, "loss or damage", as
s 120. The same concept must mean the same thing in each provision when
dealing with a breach of a tenancy
agreement[52]. It would be
nonsense for s 122 to employ the general contract law meaning of "loss or
damage" for the purpose of applying rules of mitigation for a breach of the
tenancy agreement but to employ another, unstated, meaning of "loss or damage"
for other rules concerning compensation for breach
of the tenancy
agreement.
- A
further indication that a consistent application of all general contract law
rules to "loss or damage" was intended is the fact
that the general contract law
rules relating to mitigation are not independent of other general contract law
rules concerning the
calculation of loss or damage, particularly the rules
associated with causation. Although causation was once described in this Court
as a concept of "common
sense"[53], it has since, and
repeatedly, been emphasised that the concept of common sense should be eschewed
when applying the principles of
causation[54]. In the law of
contract, the principles related to causation begin with a counterfactual, or
"but for", test. Other general contract
law rules that are related to causation
include the rules concerning mitigation, remoteness of damage, and scope of
duty.
- For
instance, this Court has held that the rule of mitigation that a plaintiff
cannot usually recover for avoided loss can be equally
described as a rule that
is concerned with the principles of calculating
compensation[55]. In that
sense, rules of mitigation have been said to be rules of
causation[56]. Hence, in the
present case, when Blokland J correctly held that Ms Young had
mitigated her damage by installing a temporary
door[57], the consequent
reduction in compensation could have been described as either the application of
the general contract law rules concerning
mitigation of loss or the application
of principles concerned with the calculation of compensation.
- Similarly,
concepts of remoteness of damage and scope of duty are related to causation. In
broad terms, loss or damage becomes too
remote when the causal or contributing
connection between the breach and the loss becomes too
weak[58]. The strength of
connection is generally assessed by reference to the two limbs of the "single
principle" in Hadley v
Baxendale[59]. Similarly,
the scope of duty limit concerns "the kind of damage to B which A is under a
duty to prevent" which has "a sufficient
causal connection with the subject
matter of the duty"[60].
- The
need to establish causation and the associated concepts (of remoteness,
mitigation, and scope of duty) are all encapsulated within
the requirements in
s 122 that: (i) the award be one of "compensation"; (ii) the
compensation be for "loss or damage"; and (iii) the loss or damage be
suffered
"because" of the failure to comply with the tenancy agreement. The
subordinating conjunction, "because", indicates that causation
or contribution
must be established in the same way as the word "by" in the former s 82 of
the Trade Practices
Act[61] required proof of
a "counterfactual ... to establish the requisite causal link between identified
loss or damage and identified misleading
or deceptive
conduct"[62]. This use of
"because" thus provides a link between references to the concepts of
"compensation" and "loss or damage". None of these
concepts can be divorced from
their general contract law meaning, which — as explained above —
includes the general contract
law limits on recovering damages for the
consequences of a breach of contract.
- Yet
another indication that s 122 is based upon general contract law rules
concerning causation and loss or damage is that where there is an intention to
depart from
those general rules, then such express provision is made. Hence,
s 122(2) requires notice of a claim to be given. Section 122(3) makes
the award of compensation subject to a discretion, which is to be exercised
having regard to a list of considerations. And
s 122(5)(a) prohibits the
Tribunal from making an order for the payment of compensation in respect of
"death, physical injury, pain or suffering".
- No
provision abolishes the general contract law rules of remoteness of damage or
scope of duty. This is unsurprising. Ms Young's
submission that
s 122(1) contemplates the imposition upon a landlord or a tenant of a
liability that is unlimited by any requirement of reasonable knowledge
or
foresight of the consequences suffered and without regard to the scope of the
duty undertaken by the landlord or the tenant must
be rejected.
- Nor
does any provision suggest that the general contract law rules of remoteness or
scope of duty, refined and developed over nearly
two centuries, are somehow
intended to be amended and replaced with a fresh start. Even if s 122
somehow contemplated that the Tribunal could, if it wished, start afresh with
the rules of remoteness and scope of duty and reinvent
the wheel, the existing
general contract law rules would surely be, at least, "of great
assistance"[63]. The most
obvious rules for the Tribunal to adopt when considering the principles
governing compensation for loss or damage would
be the general contract law
rules developed by the common law.
The second issue: availability
of compensation for disappointment and distress
The scope of duty limitation on recovery
- It
was common ground on this appeal that the general contract law restriction upon
the availability of damages for disappointment
and distress which is not
consequent upon physical inconvenience was stated by this Court in Baltic
Shipping Co v Dillon[64].
In Baltic Shipping, Mrs Dillon purchased a 14-day cruise on a vessel
which sank after ten days. One issue in that appeal in this Court was
whether Mrs
Dillon could recover for disappointment and distress that she
suffered from the breach of contract by Baltic Shipping Co.
- In
Baltic Shipping, all members of the Court held that
Mrs Dillon could recover $5,000 for her disappointment and distress,
irrespective of the extent
to which it was consequent upon physical
inconvenience and personal injury that she suffered. As Mason CJ explained,
the general
contract law rule that had excluded such recovery was a rule that
rested upon "flimsy policy foundations and conceptually [was] at
odds with the
fundamental [compensation] principle governing the recovery of
damages"[65]. Nevertheless,
apart from breaches of contract causing personal injury, the Court restricted
the recovery of damages for disappointment
and distress to two
categories[66]. The first was
where the disappointment and distress was consequent upon physical inconvenience
caused by the breach of contract.
These are modest damages that reflect the
inevitable mental element consequential upon the physical inconvenience
suffered[67]. For instance,
in Hobbs v London and South Western Railway
Co[68], the plaintiff
could recover for the "suffering" associated with the personal inconvenience of
having to walk four to five miles
on a cold wet night when, in breach of
contract, the train did not stop at the promised station. The usual
considerations of remoteness
of damage still applied, so that the plaintiff
could not recover for the consequences of medical expenses and loss of
assistance
in his business when his wife caught a cold.
- The
second category where the Court in Baltic Shipping recognised damages for
disappointment and distress for breach of contract was where the disappointment
and distress was not too remote
and was within the scope of the duty assumed by
the promisor. Although Mason CJ accepted the "obvious" merits of an
approach which
treated damages for disappointment and distress by reference only
to the usual considerations of remoteness of damage, his Honour
held that unless
physical inconvenience was suffered, a further restriction should be
recognised[69]:
"[A]s a matter of ordinary experience, it is evident that, while the innocent
party to a contract will generally be disappointed
if the defendant does not
perform the contract, the innocent party's disappointment and distress are
seldom so significant as to
attract an award of damages on that score. For that
reason, if for no other, it is preferable to adopt the rule that damages for
disappointment and distress are not recoverable unless they proceed from
physical inconvenience caused by the breach or unless the
contract is one the
object of which is to provide enjoyment, relaxation or freedom from
molestation."
- In
other words, as it was later expressed by McLachlin CJ and Abella J
giving the judgment of the Supreme Court of Canada in Fidler v Sun Life
Assurance Co of Canada, although it is "not unusual that a breach of
contract will leave the wronged party feeling frustrated or angry",
disappointment
and distress in an ordinary commercial contract is not
recoverable because of its minimal nature and because it was not contemplated
by
the parties as "part of the business risk of the
transaction"[70]. The
limitations upon recovery for disappointment and distress that is not consequent
upon physical inconvenience are, therefore,
concerned not merely with
requirements of remoteness but also with the scope or objects of the duty (and
therefore the risk) assumed
by the
promisor[71].
- The
precise formulation of the object of the contract varied slightly between the
members of the Court in Baltic Shipping. Toohey J and Gaudron J
agreed with Mason CJ on this
point[72]. Brennan J,
Deane and Dawson JJ, and McHugh J focused upon whether the contract
contained an express or implied promise that the
promisor will, as variously
expressed: "protect the promisee from ... disappointment of
mind"[73] and ensure "the
promised peacefulness and
comfort"[74]; or "provide
pleasure, entertainment or relaxation or to prevent molestation or
vexation"[75]; or "provide
pleasure or enjoyment or personal protection for the
promisee"[76]. Each of these
formulations of the object of the contract — pleasure, enjoyment,
entertainment, relaxation, freedom from molestation,
peacefulness, comfort,
protection from disappointment of mind, personal protection — is concerned
with the same underlying
criterion: the promisee's state of
mind.
The object or scope of the specific obligation or of the
contract as a whole?
- The
decision in Baltic Shipping concerned a claim for damages for
disappointment and distress where the breach of contract was essentially
concerned with all of Mrs
Dillon's promised rights. The contract in that
case was for "what in essence was a 'pleasure
cruise'"[77]. From the time
that the ship sank, on the tenth day of the cruise, Mrs Dillon lost the
benefit of the "fruit of the
contract"[78]. In those
circumstances, the damages that she sought for disappointment and distress were
concerned with the disappointment and distress
that arose from the loss of the
benefit of all her contractual rights. The scope of the duty of Baltic Shipping
Co required a focus
upon the contract as a whole.
- By
contrast, where a claim is brought for the breach of a particular contractual
provision, damages for disappointment and distress
can be recovered only if an
object of that particular obligation was the provision of enjoyment, relaxation
or freedom from molestation.
As Brennan J said in Baltic
Shipping[79], "[t]o
ascertain whether the obtaining of peace of mind is the object of a contract or,
more accurately, an object of a contract, reference is made to its terms,
express or implied". Where the disappointment and distress arises from a
repudiation
of all the essential terms of the contract, then the focus will be
upon whether those terms, express or implied, have the requisite
object. But
where the disappointment and distress arises from the breach of a particular
term, then it is the object of that term
that is relevant. That is not to say,
however, that the purpose of other provisions, as well as the contract as a
whole, will not
be relevant in construing the particular term in context and
identifying its object.
- This
distinction can be illustrated by reference to the well-known case of Ruxley
Electronics and Construction Ltd v
Forsyth[80]. In that
case, if the contract had been not only to construct a residential pool
to a particular depth, but also to build a separate commercial apartment
block,
there would have been no difference in the result. The object of the particular
obligation relating to the depth of the pool
(amenity, convenience, and the
satisfaction of personal preference), and the builder's consequent assumption of
risk, would have
been unaffected by whatever might have been provided in the
other terms of the contract. As Lord Steyn said in Farley v Skinner
in response to a submission that it was not sufficient that only "a major or
important part of the contract was to give pleasure, relaxation and peace
of mind": "[i]t is difficult to see what the principled justification
for such a
limitation might
be"[81].
Was
the term created by s 49(1) of the Residential Tenancies Act
concerned with the tenant's state of mind?
- Not
all provisions of a tenancy agreement will have an object concerned with the
state of mind of the tenant. But some will. The
parties to this appeal focused
considerable attention on the contrasting approaches in the authorities
concerning whether the obligation
of quiet enjoyment in a lease had an object
concerned with the tenant's state of mind, such as providing peace of mind or
freedom
from distress[82].
The obligation of quiet enjoyment is more than an obligation merely to afford
possession; it extends also to securing enjoyment
of the lease for all usual
purposes[83]. In many cases,
an object of the obligation will be to provide peace of mind. But every case
will ultimately depend upon the contract
or the statutory provision creating the
term. For instance, an obligation of quiet enjoyment in a retail lease has been
held not
to involve an object of providing peace of mind because it was not an
object of the retail lease to provide enjoyment, relaxation
or freedom from
molestation[84].
- The
remaining issue on this appeal is whether s 49(1) of the Residential
Tenancies Act had such an object. Section 49(1) created a term of the
tenancy agreement concerned with the security of the leased premises. The leased
premises were to be used as
a home. The object of that requirement of security
was protection of the physical and psychological well-being of the tenant. One
of the objects of the Residential Tenancies Act is "to ensure that
tenants are provided with safe and habitable premises under tenancy
agreements"[85]. The
concerns of that object of safety, being both physical and psychological
well-being, are reflected in the obligation created by
s 49(1), which
provides for both the physical safety and the psychological security that come
with a reasonably secure premises.
Conclusion
- The
appeal should be allowed. The proper interpretation of s 122 does not
require the Tribunal to engage in a search for new rules limiting compensation
under the Residential Tenancies Act. In the application of general
contract law rules, an object of the term of the tenancy agreement created by
s 49(1) of the Residential Tenancies Act was to provide a tenant
with the peace of mind that comes with secure premises. The Chief Executive
Officer (Housing) breached that
obligation. The right in s 122 for
Ms Young to obtain compensation for loss or damage suffered because of that
breach includes the disappointment and distress suffered
by Ms Young.
- In
the notice of appeal and joint submissions filed on behalf of the appellants,
the costs of both appellants were sought in this
Court if the appeal were
allowed. There was no demur from that aspect of the relief sought. Further,
orders were made by consent
at the commencement of this appeal concerning
Order 5 of the orders of the Court of Appeal of the Supreme Court of the
Northern Territory
and the further orders sought by Ms Young, including an
order quashing the decision of the Tribunal and remitting this matter back
to
the Tribunal for determination according to law, are not appropriate orders to
make in this appeal. There is also no necessity
to substitute for Order 4
of the orders of the Court of Appeal an order quashing the orders for
compensation to Ms Young and Mr Conway
(Orders 2 and 3 of the
orders of the Northern Territory Civil and Administrative Tribunal given on
27 February 2019). Any such orders
concerning compensation, and any
substitute amount, should be made in the pending appeal to the Court of Appeal
concerning the proper
quantum of the Tribunal's award of compensation. For these
reasons, orders should be made as proposed by Kiefel CJ, Gageler and
Gleeson
JJ.
Postscript
- On
7 July 2023, after these reasons had been finalised, this Court was
informed by the solicitors for the appellants, with the consent
of the
solicitors for the respondent, that Ms Young had passed away. The
solicitors for the appellants advised the Court that they
would seek
instructions from Ms Young's estate to apply for an order substituting her
estate as the first appellant. On 26 October
2023, consent orders were
certified by the Court, substituting the administrator of the estate of
Ms Young as the first appellant.
[1] Various Applicants from Santa
Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at
[165]- [166].
[2] Young v Chief Executive
Officer, Housing [2020] NTSC 59; (2020) 355 FLR 290 at 314 [87].
[3] Young v Chief Executive
Officer, Housing [2020] NTSC 59; (2020) 355 FLR 290 at 315 [91], [93].
[4] Chief Executive Officer
(Housing) v Young [2022] NTCA 1 at [54]- [55].
[5] Chief Executive Officer
(Housing) v Young [2022] NTCA 1 at [56]- [68].
[6] Chief Executive Officer
(Housing) v Young [2022] NTCA 1 at [67].
[7] Compare Port of Newcastle
Operations Pty Ltd v Glencore Coal Assets Australia Pty Ltd (2021) 96 ALJR
56 at 64 [36]; [2021] HCA 39; 395 ALR 209 at 218, and the cases there cited.
[8] Young v Chief Executive
Officer (Housing) [2022] HCATrans 159.
[9] Section 3(a) of the Act.
[10] Section 3(b) of the Act.
[11] Section 3(c) of the Act.
[12] Section 20 of the Act.
[13] Moore v Scenic Tours Pty
Ltd [2020] HCA 17; (2020) 268 CLR 326 at 340-341 [41].
[14] Moore v Scenic Tours Pty
Ltd [2020] HCA 17; (2020) 268 CLR 326 at 340-341 [40]- [41].
[15] Chief Executive Officer
(Housing) v Young [2022] NTCA 1 at [55].
[16] Comcare v Martin [2016] HCA 43; (2016)
258 CLR 467 at 479 [42].
[17] Henville v Walker [2001] HCA 52; (2001)
206 CLR 459 at 503-504 [135]- [136], 510 [166].
[18] Wallis v Downard-Pickford
(North Queensland) Pty Ltd [1994] HCA 17; (1994) 179 CLR 388 at 396.
[19] Compare Maridakis v
Kouvaris [1899] VicLawRp 101; (1975) 5 ALR 197 and Vickers & Vickers v Stichtenoth
Investments Pty Ltd (1989) 52 SASR 90.
[20] See Henville v Walker
[2001] HCA 52; (2001) 206 CLR 459 at 470 [18]; I & L Securities Pty Ltd v HTW Valuers
(Brisbane) Pty Ltd (2002) 210 CLR 109 at 119 [26]; Allianz Australia
Insurance Ltd v GSF Australia Pty Ltd [2005] HCA 26; (2005) 221 CLR 568 at 597-598
[100].
[21] See Electricity Generation
Corporation v Woodside Energy Ltd [2014] HCA 7; (2014) 251 CLR 640 at 657 [35].
[22] Young v Chief Executive
Officer, Housing [2020] NTSC 59; (2020) 355 FLR 290 at 315 [90]. See also Chief Executive
Officer (Housing) v Young [2022] NTCA 1 at [52]- [54]; Young v Chief
Executive Officer (Housing) [2022] HCATrans 159 at ll 13‑23,
100-105.
[23] Various Applicants from
Santa Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at
[1]- [4].
[24] Housing Act
1982 (NT), ss 6, 15, 16.
[25] Various Applicants from
Santa Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at [27],
[95].
[26] Various Applicants from
Santa Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at [78],
[84], [93]-[94].
[27] Residential Tenancies Act
1999 (NT), s 19(4); Residential Tenancies Regulations
2000 (NT), reg 10.
[28] See Various Applicants from
Santa Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at [31].
[29] Various Applicants from
Santa Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at [160],
[167], [287].
[30] Young v Chief Executive
Officer, Housing [2020] NTSC 59; (2020) 355 FLR 290 at 314 [89].
[31] Various Applicants from
Santa Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at
[161].
[32] Various Applicants from
Santa Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at [284],
[289].
[33] Various Applicants from
Santa Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at
[165]- [166].
[34] Various Applicants from
Santa Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at
[214].
[35] Various Applicants from
Santa Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at
[166].
[36] Various Applicants from
Santa Teresa v Chief Executive Officer (Housing) [2019] NTCAT 7 at
[287]- [288].
[37] Northern Territory Civil and
Administrative Tribunal Act 2014 (NT), s 141(2).
[38] Young v Chief Executive
Officer, Housing [2020] NTSC 59; (2020) 355 FLR 290 at 292 fn 1, 316.
[39] Young v Chief Executive
Officer, Housing [2020] NTSC 59; (2020) 355 FLR 290 at 314 [87].
[40] Young v Chief Executive
Officer, Housing [2020] NTSC 59; (2020) 355 FLR 290 at 315 [93].
[41] Young v Chief Executive
Officer, Housing [2020] NTSC 59; (2020) 355 FLR 290 at 316.
[42] Chief Executive Officer
(Housing) v Young [2022] NTCA 1 at [55], [58]-[61], [66]-[69].
[43] See Residential Tenancies
Act 1999 (NT), ss 12(1), 21, 35, 48, 49, 51(1), 51(2), 52(1),
52(2), 54, 55(1), 55(3), 56, 57(1), 58(1), 64(1), 64(3), 65, 68(1), 78(1),
78(2).
[44] See Residential Tenancies
Act 1999 (NT), ss 19, 20(4), 23, 24(1), 25(1), 29(1), 29(4),
29(5), 31(1), 31(2), 32, 36(1), 36(4), 36(5), 37(1), 37(2), 37(3), 38, 39(1),
39(2), 39(3), 41, 43(1), 44(1), 47, 50(1), 50(2), 53(1), 53(2), 66(1), 66(2),
67(1), 67(2), 81(1), 106, 109(1), 109(3), 109(4), 109(6), 109(8), 112(2), 117,
118(2), 118(3).
[45] See Residential Tenancies
Act 1999 (NT), ss 47 and 48(1)(a).
[46] Roxborough v Rothmans of
Pall Mall Australia Ltd [2001] HCA 68; (2001) 208 CLR 516 at 528 [21]; Mann v Paterson
Constructions Pty Ltd [2019] HCA 32; (2019) 267 CLR 560 at 624 [162], 632 [181], 637
[191], 643 [200].
[47] Mann v Paterson
Constructions Pty Ltd [2019] HCA 32; (2019) 267 CLR 560 at 641 [198].
[48] Competition and Consumer Act
2010 (Cth), Sch 2.
[49] Murphy v Overton Investments
Pty Ltd [2004] HCA 3; (2004) 216 CLR 388 at 407 [44], referring to Marks v GIO
Australia Holdings Ltd [1998] HCA 69; (1998) 196 CLR 494 at 503-504 [17], 510 [38],
529 [103], 549 [152], Henville v Walker [2001] HCA 52; (2001) 206 CLR 459 at
501-502 [130]- [131], and I & L Securities Pty Ltd v HTW Valuers
(Brisbane) Pty Ltd (2002) 210 CLR 109 at 124-125 [42]-[48].
[50] Residential Tenancies Act
1999 (NT), Pt 11.
[51] Residential Tenancies Act
1999 (NT), s 122. Compare Residential Tenancies Act
1999 (NT), s 48(2).
[52] Taikato v The Queen
[1996] HCA 28; (1996) 186 CLR 454 at 475; Minister for Immigration, Citizenship, Migrant
Services and Multicultural Affairs v Moorcroft [2021] HCA 19; (2021) 273 CLR 21 at 39 [25],
quoting Registrar of Titles (WA) v Franzon [1975] HCA 41; (1975) 132 CLR 611 at 618.
[53] March v E & M H Stramare
Pty Ltd [1991] HCA 12; (1991) 171 CLR 506 at 515.
[54] Travel Compensation Fund v
Tambree [2005] HCA 69; (2005) 224 CLR 627 at 642 [45]; Allianz Australia Insurance Ltd v
GSF Australia Pty Ltd [2005] HCA 26; (2005) 221 CLR 568 at 596-597 [96]- [98]; Adeels
Palace Pty Ltd v Moubarak [2009] HCA 48; (2009) 239 CLR 420 at 440 [43]; Comcare v
Martin [2016] HCA 43; (2016) 258 CLR 467 at 479 [42]; Tapp v Australian Bushmen's
Campdraft & Rodeo Association Ltd [2022] HCA 11; (2022) 273 CLR 454 at 470-471
[45]- [46], 487-488 [101].
[55] Talacko v Talacko [2021] HCA 15; (2021)
272 CLR 478 at 500-501 [57].
[56] Koch Marine Inc v D'Amica
Societa di Navigazione ARL (The "Elena D'Amico") [1980] 1 Lloyd's Rep 75 at
88; Bunge SA v Nidera BV [2015] UKSC 43; [2015] 3 All ER 1082 at 1106-1107 [81].
[57] Young v Chief Executive
Officer, Housing [2020] NTSC 59; (2020) 355 FLR 290 at 314‑315 [89].
[58] Henville v Walker [2001] HCA 52; (2001)
206 CLR 459 at 491-492 [101].
[59] (1854) 9 Ex 341 [156 ER 145].
See The Commonwealth v Amann Aviation Pty Ltd [1991] HCA 54; (1991) 174 CLR 64 at
91‑92; European Bank Ltd v Evans [2010] HCA 6; (2010) 240 CLR 432 at 438
[13].
[60] Kenny & Good Pty Ltd v
MGICA (1992) Ltd [1999] HCA 25; (1999) 199 CLR 413 at 429 [33]. See also at 431 [35].
[61] Marks v GIO Australia
Holdings Ltd [1998] HCA 69; (1998) 196 CLR 494 at 527 [95].
[62] See Berry v CCL Secure Pty
Ltd [2020] HCA 27; (2020) 271 CLR 151 at 190 [72].
[63] Henville v Walker [2001] HCA 52; (2001)
206 CLR 459 at 501-502 [130], citing Marks v GIO Australia Holdings
Ltd [1998] HCA 69; (1998) 196 CLR 494 at 503-504 [17], 510 [38], 529 [103], 549
[152].
[64] [1993] HCA 4; (1993) 176 CLR 344.
[65] [1993] HCA 4; (1993) 176 CLR 344 at 362.
[66] [1993] HCA 4; (1993) 176 CLR 344 at 365, 370,
381‑382, 383, 387, 394.
[67] See Arsalan v Rixon
[2021] HCA 40; (2021) 96 ALJR 1 at 7 [23]; [2021] HCA 40; 395 ALR 390 at 396. See also Barnett, Damages
for Breach of Contract, 2nd ed (2022) at 113 [5-010].
[68] (1875) LR 10 QB 111 at 116.
[69] [1993] HCA 4; (1993) 176 CLR 344 at 365.
[70] [2006] 2 SCR 3 at 20 [45]-[46],
quoting McGregor, McGregor on Damages, 17th ed (2003) at 63 [3-020].
[71] See also Arsalan v Rixon
[2021] HCA 40; (2021) 96 ALJR 1 at 7‑8 [24]; [2021] HCA 40; 395 ALR 390 at 396.
[72] [1993] HCA 4; (1993) 176 CLR 344 at 383,
387.
[73] [1993] HCA 4; (1993) 176 CLR 344 at 370 per
Brennan J.
[74] [1993] HCA 4; (1993) 176 CLR 344 at 371 per
Brennan J, quoted in Moore v Scenic Tours Pty Ltd [2020] HCA 17; (2020) 268 CLR 326
at 342 [45].
[75] [1993] HCA 4; (1993) 176 CLR 344 at 381-382
per Deane and Dawson JJ.
[76] [1993] HCA 4; (1993) 176 CLR 344 at 405 per
McHugh J.
[77] [1993] HCA 4; (1993) 176 CLR 344 at 366.
[78] Watts v Morrow [1991] EWCA Civ 9; [1991] 1
WLR 1421 at 1445; [1991] EWCA Civ 9; [1991] 4 All ER 937 at 960, cited in Baltic Shipping Co v
Dillon [1993] HCA 4; (1993) 176 CLR 344 at 364, 371.
[79] [1993] HCA 4; (1993) 176 CLR 344 at 371
(emphasis in original).
[80] [1996] AC 344.
[81] [2001] UKHL 49; [2002] 2 AC 732 at 749
[22]- [23] (emphasis added).
[82] Compare, eg, Branchett v
Beaney [1992] 3 All ER 910 at 918 with McCall v Abelesz [1976] QB 585
at 594.
[83] Martins Camera Corner Pty
Ltd v Hotel Mayfair Ltd [1976] 2 NSWLR 15 at 23, quoting Halsbury's Laws
of England, 3rd ed, vol 23, para 1298. See also Hawkesbury
Nominees Pty Ltd v Battik Pty Ltd [2000] FCA 185 at [37]- [38].
[84] Musumeci v Winadell Pty Ltd
(1994) 34 NSWLR 723 at 752.
[85] Residential Tenancies Act
1999 (NT), s 3(d).