Clarke & Anor v Body Corporate for Turner Park Shopping Village CTS [2019] QCATA 51
QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL
CITATION: Clarke & Anor v Body Corporate for Turner Park
Shopping Village CTS [2019] QCATA 51
PARTIES: GERRY CLARKE
NEVEKA GOLC-CLARKE
(appellants)
v
BODY CORPORATE FOR TURNER PARK
SHOPPING VILLAGE CTS 15822
(respondent)
APPLICATION NO/S: APL338-16
MATTER TYPE: Appeals
DELIVERED ON: 12 April 2019
HEARING DATE: 15 June 2017
HEARD AT: Brisbane
DECISION OF: Senior Member Guthrie, Presiding
Senior Member Howard
ORDERS: The appeal is dismissed.
CATCHWORDS: ADMINISTRATIVE LAW – ADMINISTRATIVE
TRIBUNALS – QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL
APPEAL AND NEW TRIAL – APPEAL – GENERAL
PRINCIPLES – RIGHT OF APPEAL – WHEN APPEAL
LIES – ERROR OF LAW – WHAT IS – GENERALLY –
where application dismissed by BCCM Adjudicator –
where appealing decision of BCCM Adjudicator – where
at first instance Appeal Tribunal remitted matter back to
another BCCM Adjudicator –– whether second BCCM
Adjudicator made an error of law – whether findings of
fact supported by the evidence- whether irrelevant matters
taken into account in applying test of reasonableness-
whether second Adjudicator can rely upon findings of fact
made by first Adjudicator – whether correct By-laws
applied by second Adjudicator- whether allegation of bias
properly considered
Body Corporate and Community Management Act 1997
(Qld), s 35(4), s 92 (1), s 92(2), s 92(4), s 94(1), s 94(2), s
146, s 180, s 180(5), s 180 (7), s 276, s 276(1), s 276(3), s
289, s 289(2), Schedule 5
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2
Queensland Civil and Administrative Tribunal Act 2009
(Qld) s 146, s 147
Ainsworth v Albrecht (2016) 261 CLR 167
Ainsworth v Albrecht [2015] QCA 220
Bakir v Body Corporate for Chevron Renaissance CTS
30946 & Ors [2015] QCATA 164
Bakir v Body Corporate for Chevron Renaissance CTS
30946 & Ors [2017] QCATA 12
Clarke v Turner Park Shopping Village Body Corporate
[2016] QCATA 105
Ericson v Queensland Building and Construction
Commission [2014] QCA 297
Harrison v Meehan [2017] QCA 315
Morales v Minister for Immigration and Multicultural
Affairs (1998) FCR 374
APPEARANCES &
REPRESENTATION:
Applicant: Self-represented
Respondent: Mr M T De Waard, instructed by Mills Oakley
REASONS FOR DECISION
[1] Gerry Clarke and Nevenka Golc-Clarke (‘the Clarkes’) are the owners of Lot 4 in
Turner Park Shopping Village CTS 15822 (‘Turner Park’). Turner Park consists of 14
commercial lots. The Clarkes have been involved in a long-running dispute with the
Body Corporate of Turner Park (‘the Body Corporate’) about signage for which they
seek consent to erect at the shopping centre.
[2] The signage has been the subject of various applications or proposals for approval by
the Clarkes. In March 2013, the first application was considered by the Committee of
the Body Corporate (‘the Committee’) for permission to place signs as follows:
(a) Facia board signs on the (then new) roof structure according to a signs
concept that (they allege) was already approved by the Body Corporate at
the Annual General Meeting (‘AGM’) on 15 October 2012, and at the
Extraordinary General Meeting (‘EGM’) on 3 December 2012;
(b) Facia board sign below the awning in front of their lot;
(c) Façade sign at the back of their lot on the east side (similar to the current
sign for Lots 2 and 3);
(d) Façade sign at the back of their lot on the south side facing the laneway.1
[3] The application was refused. The Clarkes requested a review, but the Committee again
refused consent.
1 Applicant’s appeal book, p 63.
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3
[4] In October 2013, the Clarkes submitted a motion (the second application) at the AGM
seeking an ordinary resolution of the Body Corporate for the approval of the signs for
Lot 4. That motion was defeated at the 2013 AGM.
[5] In July 2014, the Clarkes made another application to the Committee (the third
application) for approval of the additional signage. The application was again rejected.
[6] In 15 October 2014, the Clarkes lodged an application with the Office of the
Commissioner for Body Corporate and Community Management (‘BCCM’) seeking
orders from an Adjudicator permitting them as owners of Lot 4 to erect signs as
follows:
(a) On the corner roof structure fascia board signs appertaining to or
immediately in front of their premises with the dimensions 300mm x 940
mm and 300 mm x 3760 mm;
(b) Awning fascia board sign appertaining to or immediately in front of their
premises with the dimensions 130 mm x 2400 mm;
(c) A façade sign at the rear of their premises on the Eastern side with the
dimensions 400 mm x 9200mm; and
(d) A façade sign at the rear of their premises on the Southern side with the
dimensions 400mm x 7600 mm.2
[7] The Clarkes were unsuccessful in the adjudication application. They appealed the
Adjudicator’s decision (the first Adjudicator’s decision) to the Appeal Tribunal in
2015 (the first appeal). That appeal was successful: the first Adjudicator’s decision
was set aside and the application referred back to the Commissioner for BCCM for
reconsideration.
[8] A further decision was made by an Adjudicator on 2 September 2016 (the second
Adjudicator’s decision). Again, that decision resulted in the Clarkes’ application
being dismissed.
[9] The Clarkes have again appealed to the Appeal Tribunal (the second appeal). We are
constituted as the Appeal Tribunal for the second appeal.
[10] The delay in providing our decision and reasons for it is regretted, due in part to
resourcing issues and in part to an unexpected significant period of absence of a
member of the Appeal Tribunal.
The appeal process
[11] An appeal from a BCCM Adjudicator’s decision to the appeal tribunal may be made
on a question of law only.3 It is an appeal in the strict sense.4 Therefore, the appeal
tribunal does not have power to conduct a rehearing. In deciding an appeal on a
2 Applicant’s appeal book, p 46.
3 Body Corporate and Community Management Act 1997 (Qld) (‘BCCM Act’) s 289(2).
4 Ainsworth v Albrecht [2015] QCA 220 (subsequently appealed in Ainsworth v Albrecht (2016) 261
CLR 167, but not in relation to this point); Ericson v Queensland Building and Construction
Commission [2014] QCA 297 [3], [13], [16]. See also Bakir v Body Corporate for Chevron
Renaissance CTS 30946 & Ors [2015] QCATA 164 [16]; Bakir v Body Corporate for Chevron
Renaissance CTS 30946 & Ors [2017] QCATA 16 [67].
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question of law only, the appeal tribunal must proceed according to s 146 of the
Queensland Civil and Administrative Tribunal Act 2009 (Qld) (‘QCAT Act’). That is,
if the appeal is allowed on the basis of error of law, the appeal tribunal may only
substitute its own decision if the error of law disposes of the proceeding entirely or it
may do so based on the findings of fact made by the decision-maker whose decision
is appealed.5
[12] For the reasons later explained, the second appeal is dismissed.
The grounds of appeal
[13] As discussed, an appeal from a BCCM Adjudicator to the appeal tribunal may be made
on a question of law only. The Clarkes originally articulated seven grounds of appeal.
At the oral hearing, they abandoned two of the grounds of appeal. We granted leave
for the Clarkes to amend of their appeal reducing the grounds to five.
[14] The Clarkes remaining grounds of appeal may be paraphrased and summarised as
follows:
(a) The Adjudicator did not properly apply the test of reasonableness leading to
incorrect interpretation of s 94(2) of the Body Corporate and Community
Management Act 1997 (Qld) (‘BCCM Act’);
(b) The Adjudicator erred in relying on findings of fact made in Turner Park
Shopping Village [2015] QBCCMCmr 167 by wrongfully holding that res
judicata applied to findings of fact in that proceeding;
(c) The Adjudicator erred in relying upon By-laws that did not exist as at the
date of the requests;
(d) The Adjudicator wrongfully based his decision on the applicants not
occupying the lot at the time of the third request; and
(e) The Adjudicator erred by failing to take into account the Body Corporate’s
bias in refusing the requests.
[15] Each of the grounds of appeal is considered below.
[16] It must be said that some of the Clarkes’ submissions lack clarity. However, we have
made every effort to understand and address them. In this regard, we clarified with
the Clarkes at the commencement of the hearing which of their submissions are relied
upon by them in the appeal. The submissions filed on 31 January 2017 are relied upon,
(rather than those filed on 24 January 2018).
[17] Further, we record that since the oral hearing, we received some further submissions
from the Body Corporate in response to a question at the oral hearing for clarification
concerning a particular submission made. The Clarkes also then provided additional
submissions in reply (although those had not been requested or directed).
Subsequently, the Clarkes filed a miscellaneous application seeking a direction to the
effect that they be entitled to file the submissions (that they had already provided in
reply). Although we did not issue any further directions, as the Body Corporate did
not object at any stage, we have considered the additional submissions.
5 Harrison & Anor v Meehan [2017] QCA 315, [18].
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Ground 1: Did the Adjudicator properly apply the test of reasonableness?
[18] Despite the framing of this ground of appeal, it is tolerably clear that the Clarkes’
argument is that the Adjudicator erred in law in that he/she made findings of fact that
were not available on the evidence and considered circumstances that were not
relevant in applying the test.6 These are dealt with by us in the paragraphs that follow
under the headings employed by the Clarkes.
[19] Section 94 of the BCCM Act provides that the Body Corporate for a Community Titles
Scheme must administer the common property and Body Corporate assets for the
benefit of owners; enforce the community management statement (including any By-
laws); carry out other functions given to the Body Corporate under the BCCM Act
and the community management statement: s 94(1). The Body Corporate must act
reasonably in anything it does under subsection (1), including making or not making
a decision for the subsection: s 94(2).7 Generally, (the exceptions not being relevant
here), a decision of the committee is a decision of the Body Corporate.8
[20] It is also relevant to note that pursuant to s 276 of the BCCM Act, an Adjudicator may
make an order that is just and equitable to resolve a dispute in the context of a
community titles scheme, inter alia, about the exercise of rights or powers or
performance of duties under the BCCM Act or the Community Management
Statement. 9 This includes but is not limited to those orders set out in Schedule 5.
The concept of advertising on the corner roof structure
[21] The second Adjudicator stated as follows:10
[17] The applicants’ primary argument is that the Body Corporate
(including the committee) has not acted reasonably deciding their
requests to install signs.
[18] It is uncontested that the applicants have requested approval to
install signs on common property. The Body Corporate must
administer common property for the benefit of owners and it must
enforce scheme By-laws. [8] The Body Corporate must act
reasonably in anything it does under section 94(1) including making
a decision. [9] The committee must act reasonably making a
decision.[10]
[19] What is reasonable is a question of fact to be determined by
objectively considering all relevant circumstances. [11] What is
relevant in determining reasonableness (or unreasonableness) will
vary from case to case, depending on the issues raised in the relevant
material. [12]
Footnotes:
[8] Act, s 94(1)(a) and (b).
6 See Applicants’ submissions filed 31 January 2017, Ground 1 especially at [19]-[23] and [33].
7 Ainsworth v Albrecht (2016) 261 CLR 167.
8 BCCM Act s 100.
9 BCCM Act s 276(1).
10 Turner Park Shopping Village [2016] QBCCMCmr 405 [17]–[19].
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[9] Act, s 94(2).
[10] Act, s 100(5).
[11] Albrecht v Ainsworth & Ors [2015] QCA 220 [82].
[12] Albrecht [82].
[22] At all times, when the applications were made, including the third application in July
2014, the then By-laws provided as follows:
Section 13(c)
A proprietor or occupier of a lot shall not, except with the consent in writing of
the Body Corporate, display any sign, advertisement, placard, banner, pamphlet
or like matter in or about the common property provided that such request shall
not be unreasonably withheld to the using or exhibiting of any advertisement or
sign customary and/or incidental to the proprietor or occupiers type of business.
[23] The Clarkes do not suggest that the test articulated by the second Adjudicator is
incorrect. However, the Clarkes submit that the second adjudicator did not properly
apply the test of reasonableness for several reasons.
[24] Firstly, they argue the second Adjudicator incorrectly found that there was no Body
Corporate resolution deciding to allow or approve signs on the structure. They refer
to the statement in paragraph [25.2] in the reasons for decision as follows:
…In these circumstances, there is no evidence the Body Corporate had
formulated a view about signage on either structure. Therefore, the committee’s
consideration of the request was not subject to a body corporate decision. There
is nothing to suggest the committee formed a view contrary to a lawful body
corporate decision. 11
[25] In making this finding, the Adjudicator relied upon statements in the AGM 2012
decision and the EGM 2012 decision, regarding the acceptance of the motion for
building the corner roof structure. The Clarkes’ shop is situated on one of the two
corners affected by the roof structure. They point out that the quote for the
construction works for the roof structure explicitly mentions signage, referring to it
being able to accommodate signage.12 They submit that this means that because the
signage was an integral part of the structure accepted by the Body Corporate, that the
second Adjudicator was wrong in concluding as follows:
… it is significant that there is nothing in the minutes of the above meetings that
establishes the Body Corporate considered or approved, in a way contemplated
by the Act, a relevant advertising practice or policy that the committee was
bound to put into effect. Moreover, the body corporate did not decide that a
purpose of a structure was to enable advertising signage for a lot.13
[26] The Clarkes have directed our attention to a variety of correspondence which, in
effect, they contend, demonstrates that the second Adjudicator’s finding is incorrect.
11 Turner Park Shopping Village [2016] QBCCMCmr 405 [25.2].
12 Applicants’ appeal book, p 329.
13 Turner Park Shopping Village [2016] QBCCMCmr 405 [25.2].
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[27] Irrespective that the quote and plan referred to the structure being able to
accommodate the signage, the documents do not suggest that a decision was made to
allow signage as the Clarkes suggest. The relevant (amended) Motion,14 does not seek
approval for or refer to signage, (notwithstanding that the explanatory note contained
in the text that follows refers to previous discussions about signage and incorporates
what are described as ‘signage ideas’). The minutes of the 2012 AGM,15 record that
by a majority decision, the Body Corporate resolved to approve ‘a flat roof five sided
structure’ in accordance with schedules provided.16 This does not suggest or indicate
any explicit or implied approval that future proposals or motions for signage on the
structure will be approved, notwithstanding that it could potentially be
accommodated.
[28] The minutes of the 2012 EGM,17 confirm that the Body Corporate accepted a
particular quote for the construction of the ‘two roof structures above the sitting areas
at the complex’.18 Although the quote refers to construction that would accommodate
signage, signage was not the subject of the motion or approval decision. There is no
basis on which to read the approval in the manner contended for by the Clarkes, (that
is, that acceptance of the quote included acceptance of the ‘contents’ of the quote as
they related to signage).
[29] Accordingly, the relevant findings of fact made by the Adjudicator were open on the
evidence.
The ‘wants’
[30] Secondly, under this ground of appeal, the Clarkes contend that the second
Adjudicator erred in considering it relevant whether at the relevant time other lot
owners wanted signage on the fascia board.19 They argue that there is no evidence that
others have said they do not want signs. They submit that the absence of other
applications, or installation by others of such signage does not support the
Adjudicator’s finding that the ‘evidence shows that only the applicants from Lot 4
want signage on the fascia board’.
[31] They appear to submit that whether or not others wanted signs was irrelevant, and,
also that in considering this, the second Adjudicator impermissibly had regard to an
irrelevant matter in determining whether their application for signs was unreasonably
rejected by the Body Corporate. Further, they contend that the Adjudicator made an
error of logic in referring to this matter.20 Finally, they contend that there is evidence
to suggest that the tenant in Lot 5 wished to advertise on the corner structure.
[32] The second Adjudicator concluded that the evidence does not suggest the Body
Corporate acted inconsistently in refusing the Clarkes’ application. In relation to the
tenant in Lot 5, in email correspondence, the tenant suggests that she is concerned
about the potential for other signage on the premises to mislead, noting that when the
14 Ibid 61.
15 Applicants’ appeal book, pp 212–215.
16 Ibid p 214, Motion 7.
17 Ibid p 229, Motion 2.
18 Ibid.
19 Ibid [25.3]. In this regard, as set out in [25.4], there had not been fascia board signs since 2010 when
Turner Park was repainted.
20 Applicants’ submissions filed 31 January 2017, [37] –[39].
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tenants moved in they were told signage on the awning was not allowed as it was
common property.21 She asks whether this has changed.
[33] In relation to the issues raised here, it is sufficiently clear that there had not been other
relevant applications for approval of signage. To the extent that it is relevant, the email
from Lot 5’s tenant suggests the Body Corporate discouraged applications for signage
on the awning on the basis that it was not generally allowed. Each application must
be considered on its merits, but that aside, the impression given to the tenant is
consistent with the rejection of the Clarkes’ proposal. This suggests consistency of
approach which supports the finding that the Body Corporate did not act
unreasonably.
[34] We do not accept the argued error of logic emerges from the second Adjudicator’s
reasons for decision. The email from the tenant in Lot 5 expresses concern that
advertising may be placed, rather than seeking approval for advertising. We reject the
Clarkes’ arguments. The Adjudicator was entitled to consider it was relevant whether
others had sought approval for fascia board signs, concluding that as they had not, that
therefore, other lot owners did not want fascia board signs and that there had been no
inconsistency in decision-making.
The ‘package’
[35] Thirdly, the Clarkes submit that the Adjudicator erred in considering the signs as a
package of signs. They submit that this course was also taken by the Body Corporate
and goes to whether or not it acted reasonably in rejecting the applications for the
signage.
[36] They submit that whether permission should be given for any or all of the signs
involves considering them individually. In this regard, they note that they presented
the second Adjudicator with evidence that they had offered an alternative to the Body
Corporate of significantly smaller signs in order to resolve the matter.22 The Body
Corporate’s failure to accept that proposal, they say, demonstrates that the Body
Corporate’s refusal does not relate to the packaging, as this would have ensured that
the amount of signage was under 6m 2 (an allocation contended for by the Body
Corporate, but with which the Clarkes take issue).
[37] They submit that the Adjudicator’s failure to consider this issue is an error in taking
into account all relevant considerations. Further, they say that the Adjudicator did not
take into account other evidence about the signage calculations for each of the lot
owners.23
[38] The Clarkes proposal was for 4 signs. They do not suggest that they proposed them in
the alternative. They were presented as a package. The second Adjudicator was not in
error about this. The Adjudicator did not ‘hint’ at possible bias as they allege in noting
the Beerwah Electronics signage at the rear: rather it was an acknowledgement that
prima facie this may appear to indicate inconsistency by the Body Corporate. The
21 Applicants’ appeal book, p 517.
22 Ibid, p 579.
23 Ibid, p 425, Attachment ‘B33’; p 463, Attachment ‘B34’.
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second Adjudicator then went on to explain why he/she was satisfied that it did not
do so.24
The exclusivity
[39] Fourthly, the Clarkes submit that the second Adjudicator erred in equating their
application with an application for exclusive use rights over common property.25 They
submit that the second Adjudicator confused the exclusive usage of common property
with exclusive usage of their own property, that is, the signs.26 By way of explanation,
they assert that the signs do not become property of the Body Corporate.
[40] The Clarkes’ argument is not borne out by the second Adjudicator’s statements. The
Adjudicator said in respect of their submission, that (although there had been no fascia
board signs since 2010), in 1996 the original owner had given them permission to
install a particular sign, as follows:27
The original owner may have approved a sign to be installed on common
property. However, there is no evidence the applicants have a legal right to use
and enjoy common property for an indefinite period through, for example, an
exclusive use By-law or a lease. Therefore, a prior approval does not, in and of
itself, limit the Body Corporate’s powers about administering the signs on
common property. Nor does it obligate the Body Corporate to, in perpetuity,
allow a sign in a previously approved location. In these circumstances, an owner
cannot expect to have a perpetual right to use common property to the exclusion
of another owner or occupier. The owner’s continuing right is subject to
ongoing review by the Body Corporate.
[41] The second Adjudicator found that the previous approval for signs to be installed on
common property does not confer binding rights henceforth to place signs in
accordance with the approval. In explaining why this was so, the second Adjudicator
distinguished between the approval given for signs to be installed on common
property from exclusive use of common property. There is no suggestion by the
second Adjudicator that the signs themselves became common property. The
comments made concern the approval to use (that is, by placing signs on) common
property.
[42] Also, the second Adjudicator considered that the Clarke’s application in effect sought
a right for Lot 4 to use common property, (for purposes of displaying signage) for an
indefinite period and which attached to Lot 4, which he/she described observed would
be akin to seeking approval for exclusive use for Lot 4.28 The Clarkes say that the
Adjudicator drew an incorrect inference from the evidence because they did not apply
for exclusive use of common property.
We do not accept that the Adjudicator incorrectly understood the Clarkes’ application
to be an application for exclusive use in order to have the signs approved. The
Adjudicator did no more than explain the effect of the submissions made by the
Clarkes.
24 Turner Park Shopping Village [2016] QBCCMCmr 405 [5].
25 Applicants’ submissions filed 31 January 2017, [45].
26 Ibid [46].
27 Turner Park Shopping Village [2016] QBCCMCmr 405 [25.4].
28 Ibid, [46].
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Other
[43] The second Adjudicator is said to have erred, it seems for noting that the Clarkes’ first
request recognised that ‘the installation of signs was regulated by a scheme By-law
and at the discretion of the Body Corporate’.29 The Clarkes suggest that this statement
means the Adjudicator misread their request seeking confirmation of approval for
their signs under the By-laws, because there was no absolute discretion or absolute
power of the Body Corporate referred to: it was obliged to act reasonably. They submit
this amounts to the drawing of an incorrect inference.
[44] We disagree. The second Adjudicator’s statement is to the effect that the Clarkes’
request was an acknowledgment that placement of the signs required approval under
the By-laws. Absolute discretion and power are not mentioned, nor is there any
suggestion that s 94(2) of the BCCM Act does not apply.
Was the Adjudicator entitled to rely upon findings of fact made by the first
Adjudicator?
[45] In the first appeal, the first Appeal Tribunal found errors of law and set aside the first
Adjudicator’s orders. It referred the application back to the Commissioner for BCCM
for reconsideration. The second Adjudicator in the decision now appealed in
paragraph [25.5.a] of his/her reasons for decision adopts various findings of the first
Adjudicator, saying as follows:30
The issues of relevance of the SCRC laws and distribution of signage have been
determined by the Adjudicator in the 2015 order.
On these matters, the tribunal said the challenge could not be made against
findings of fact and ‘the difficulty with this challenge is that it is an attempt to
re-argue what has already been decided as a fact by the Adjudicator’.
As the Adjudicator’s determination was not disturbed on appeal, both issues
cannot be determined again by an Adjudicator under chapter 6 of the Act.31
[46] The final sentence referenced by the second Adjudicator purports to be founded upon
the legal doctrine of res judicata. The Clarkes submit that as their first appeal was
successful, there was not a determination that could be subject to res judicata or
alternatively, issue estoppel. They argue essentially that the second Adjudicator was
obliged to determine the matter afresh, and was not confined by the findings of fact
made in the first adjudication decision, notwithstanding that the appeal was successful
only on a question of law. Therefore, they submit the second Adjudicator erred in law
in performing his function. In particular, they contend that he/she therefore failed to
consider all relevant matters, and in particular, whether the letter from the Sunshine
Coast Council to the Body Corporate dated 8 June 2011,32 ‘was presented by the Body
Corporate in good faith or not’.33
[47] The Clarkes contend that this ground of appeal reveals the second Adjudicator’s main
error. They criticise the second Adjudicator for not explaining how or why he/she
29 Ibid [26].
30 Ibid [25.5.a].
31 Footnotes omitted, but the final sentence is footnoted in relying on the legal doctrine of res judicata.
32 Applicants’ appeal book, pp 409–410.
33 Applicants’ submissions filed 31 January 2017, [54].
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relied upon res judicata, arguing, in effect, that such reliance results here in an
injustice, whereas the main purpose of issue estoppel is to avoid abuse of process.
Further, they argue that the second Adjudicator exceeded his/her role in raising it, as
there had been no final determination on the issues between the parties.
[48] As discussed earlier, an appeal to the appeal tribunal is available only on a question
of law. It is an appeal in the strict sense. The Appeal Tribunal for the first appeal, set
aside the first Adjudicator’s order and referred the application back to the
Commissioner for BCCM for reconsideration. It directed that if the Commissioner
referred the application for adjudication, it must be determined by a different
Adjudicator.
[49] The term reconsideration arises from s 146 of the QCAT Act. When an appeal is
decided on a question of law only, the appeal tribunal may confirm or amend the
decision; set aside the decision and substitute its own decision or set it aside and refer
the matter to, here, the other entity who made the decision for reconsideration with or
without additional evidence or such other directions as the appeal tribunal may
consider appropriate.34 The appeal tribunal is not permitted to perform a rehearing
under s 146.35
[50] The question that arises, concerns the nature of the task for the second Adjudicator in
reconsidering the matter. The first Appeal Tribunal made no specific directions, other
than that a different Adjudicator should determine the application. There can be in our
view, no application of the doctrine of res judicata or issue estoppel. The first appeal
was successful. The first Adjudicator’s order was set aside and ‘the application’, (that
is, the application for adjudication), was referred back for ‘reconsideration’ by a
‘different Adjudicator’.
[51] It is the case that the first Appeal Tribunal, in determining the appeal observed
correctly that it could not consider an appeal on questions of fact. That said, this is not
determinative of whether the second Adjudicator was entitled or obliged to adopt the
factual findings of the first Adjudicator in his/her determination on the
reconsideration. A reconsideration, depending upon the statutory context may connote
a hearing de novo or it may connote a rehearing making any additional findings of law
and fact as may be deemed necessary by the decision-maker, but otherwise adopting
the undisturbed findings of another decision-maker. Here, the first Appeal Tribunal’s
order is determinative of the task to be performed by the Adjudicator.
[52] We conclude that it is relevant that the application was remitted for reconsideration.
The first Appeal Tribunal did not direct that the reconsideration be limited to
particular matter/s or direct that further evidence could not be received. It was not
remitted for determination according to law on the facts as found by the first
Adjudicator. If that had been its intention, there is no apparent reason for directing
that the application be reconsidered by another Adjudicator.
34 Cf: QCAT Act s 147: The process in an appeal in the strict sense on a question of law may be contrasted
with an appeal on a question of fact only or mixed law and fact, which must proceed by way of
rehearing under s 147.
35 The Court of Appeal has clarified the nature of the process required, pursuant to s 146 and s 147 of the
QCAT Act. See Ericson v Queensland Building and Construction Commission [2014] QCA 297;
Albrecht v Ainsworth [2015] QCA 220; and Harrison v Meehan [2017] QCA 315.
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[53] The second Adjudicator’s reasons for decision suggest some confusion as to task that
he/she undertook. The second Adjudicator specifies the issues to be determined,36 and
then proceeds to consider each of them. In doing so, he/she does not adopt all of the
factual findings of the first Adjudicator. Issues are considered afresh and fresh
findings are made, except in paragraph [25.5.a] and confirmed in [52], when a
conclusion is drawn that because the first Appeal Tribunal could not consider an
argument on appeal about alleged error of fact, that the Adjudicator could not make
his/her own conclusions about those particular facts based on the evidence that he/she
had before them, (which may have been more extensive than the evidence before the
first Adjudicator).
[54] We have concluded, and as appeared ultimately to be conceded by the Body
Corporate, that the reference back for reconsideration mandated a rehearing of all
issues, not only those which the second Adjudicator discerned as having been
disturbed by the Appeal Tribunal’s decision on the appeal. Therefore, the second
Adjudicator’s task was to consider all of the evidence and applicable law, make his or
her own findings of fact having regard to the evidence, and then apply the law and
determine the matter afresh or anew.37 (That said, we observe that, it would have been
permissible for the second Adjudicator to adopt the factual findings, as well as the
reasons for them, of the first Adjudicator as part of his/her own reasons for decision,
if consistent with his/her own conclusions and reasons for them).
[55] In view of our conclusions on this issue, we do not need to further consider the detailed
submissions of the parties about res judicata, issue estoppel, and the circumstances in
which each may arise.
[56] We accept that the second Adjudicator erred in law in adopting the findings of fact
made by the first Adjudicator. However, for other reasons explained later, that error
was immaterial to the outcome of the reconsideration.
Did the Adjudicator rely on By-laws that did not exist at the date of the request?
[57] It is uncontroversial that the By-laws were amended after the Clarkes’ application for
approval for the signs was made. The old By-law 13 provided, inter alia, under the
heading of ‘Appearance of Building’, as follows:
13(b) a proprietor of a lot shall be permitted to display any sign,
advertisement, banner, pamphlet or like matter on any part of his lot
in such a way as to be visible from outside the building;
13(c) a proprietor or occupier of a lot shall not, except with the consent
in writing of the Body Corporate, display any sign, advertisement,
placard, banner, pamphlet or like matter in or about the common
property, provided that such consent shall not be unreasonably
withheld to the using or exhibiting of any advertisement or sign
customary and/or incidental to the proprietor or occupier’s type of
business.38
13(d) Notwithstanding anything to the contrary in these By-laws any
signage, advertisement, placard, banner, pamphlet or like matter
36 Turner Park Shopping Village [2016] QBCCMCmr 405, [16].
37 Morales v Minister for Immigration and Multicultural Affairs (1998) FCR 374.
38 Applicants’ appeal book, p 187.
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shall strictly comply with the By-Laws of the local authority or any
other authority having jurisdiction over same.
[58] The amended By-law 13 differs in some respects. By-law 13(b) now provides that an
occupier may display any sign, advertisement, banner or like material on any part of
his Lot in such a way as to be visible from outside the building. By-law 13(c) is in
similar terms to the old 13(c), except that now, a proprietor or occupier shall not
except with the written consent of Body Corporate display any sign, advertisement,
banner or like matter in or about common property, but that such consent shall not be
unreasonably withheld to the using or exhibiting of any advertisement or sign
customary and/or incidental to the occupier’s type of business. By-law 13(d), provides
that any advertisement, sign, banner or the like in or about the common property must
pertain to a business or activity operating in Turner Park.39 The requirement
previously contained in 13(d) remains, although it is re-numbered.
[59] The second Adjudicator considered the six reasons given for refusing of the July 2014
request for approval. In discussing the reasons, the second Adjudicator considered the
Committee’s assertion that the signage was not detailed and unable to be compared
with other signage, as against the Clarke’s contention that the position and dimensions
proposed were detailed, and that signage would be consistent with their livery or that
of any tenant.40 The second Adjudicator considered that the committee did not explain
the alleged inadequacy.41 However, the second Adjudicator went on to refer to the
Clarkes’ acknowledgement that they did not then occupy the lot and the wording of
the signage may change.42 The Clarkes had asserted that from February 2014 to
December 2014 their lot was tenanted, but that they maintained a business presence
through existing signage.
[60] In context, the second Adjudicator’s reasons for decision observe that ‘a new By-law
13’ was made on 20 October 2014 (and later registered in January 2015). However,
the dispute resolution application under consideration was made on 15 October 2014.
At paragraph [44], the second Adjudicator refers to the then applying By-law 13(c),
as empowering the Body Corporate to regulate an owner or occupier displaying signs
or the like on common property and providing for the using or exhibiting of signage
customary and/or incidental to the occupier’s type of business. The second
Adjudicator states that the Body Corporate’s general powers relating to administering
the common property for the benefit of lot owners and the then applying By-law was
sufficient basis for signage detail to be considered relevant in making the decision.43
[61] Although not clearly so, the reference by the second Adjudicator to signs customary
or incidental to an occupier’s type of business, without reference also to the
proprietor’s type of business may suggest that he/she considered the amended By-law
even though it post-dated the Clarkes’ advertising proposals, motion and application
in determining whether the Body Corporate acted reasonably.
39 Ibid, p 486.
40 Turner Park Shopping Village [2016] QBCCMCmr 405, [36-42].
41 Ibid [43]
42 Ibid.
43 Ibid [44].
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[62] The Body Corporate argues that even if the Adjudicator erred as alleged the error is
ultimately immaterial to the decision. The Body Corporate argues that even if there
was an error in this regard, it is an error of fact and cannot be the subject of appeal.
[63] The question concerning which By-law applied in considering the application is
arguably a matter of law. Irrespective, By-laws, to the extent that they are inconsistent
with the BCCM Act, are invalid.44 In this regard, s 35(4) of the BCCM Act provides
that if the occupier is not the lot owner, a right of the owner under the BBCM Act to
occupation or use of common property is enjoyed by the occupier.
[64] Further, we observe that By-laws must not discriminate between types of occupiers,45
and must not be unreasonable having regard to the interests of all owners and
occupiers and the use of common property.46
[65] Having regard to these matters, although the second Adjudicator did not consider the
issue, to the extent that the earlier By-law 13 may appear to suggest that ‘proprietors
and occupiers’ may extend to include owners who were not occupiers, if it did so,
although it is not clear that it did so extend, it would be invalid having regard to s
35(4) and 180(1). Unless an occupier, an owner’s rights to use of common property
were exercisable (only) by the occupier.
Did the Adjudicator wrongfully base his/her decision on the Clarkes not
occupying the lot at the time of the request?
[66] The Clarkes’ ground of appeal contends that the Adjudicator erred in finding that they
did not occupy Lot 4 at the time of the third request. That said, their submissions
concede (and the evidence supports) that they did not occupy Lot 4. The arguments
made on appeal focus on their alleged right as legal owners of a lot, whether they
physically occupy the shop or not to apply for approval for signage on the common
property. They submit that they have ‘a right to advertise any and or all of our
operating businesses in the scheme according to their livery’.47 This argument is based
on the contention that the second Adjudicator erred by separating their interest in the
common property from their ownership of the lot, inconsistently with s 35(3) of the
BCCM Act and By-law 13(c) as it then was.
[67] The Body Corporate submits that the finding made, that is, that the Clarkes were not
occupying their lot cannot be raised on appeal, as it is a finding of fact. That is clearly
so, and is not controversial. They proceed to argue that issue estoppel applies in any
event, but for the reasons already explained, we do not accept this is so.
[68] However, the argument is not that the Adjudicator erred in finding that they were not
in occupation, but that whether or not they were occupiers was irrelevant because their
interest in the common property could not be separated from their ownership of their
lot. This submission ignores s 35(4) of the BBC Act which provides in effect that if a
lot occupier is not the owner, the owner’s right to occupation and use of the common
property is enjoyed by the occupier.
44 BCCM Act s 180(1).
45 Ibid s 180(5).
46 Ibid s 180(7).
47 Applicants’ submissions filed 31 January 2017, [70].
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[69] The Adjudicator observed that the first Appeal Tribunal concluded that it was ‘correct
for the Adjudicator to find a relevant consideration for the Body Corporate was that it
could only approve signage for businesses operating at the scheme’. 48 He/she found
that it was reasonably open for the Committee to decide that the Clarkes were not
occupiers at the time of the July 2014 request. He/she did not then go on to explicitly
make a conclusion about whether it was reasonably open for approval to be therefore
refused on that basis. However, it is nevertheless sufficiently clear on a fair reading
of the reasons for decision that he/she did so in respect of the July 2014 request.
Although s 35(4) has not been agitated on appeal on this occasion, its application was
a specific ground of appeal in the first appeal. The second Adjudicator does not
directly address or refer to the effect of s 35(4) in relation to the issues raised here.
That said, it is sufficiently clear that this was the subject of his/her comments as
referred to earlier in this paragraph.
[70] Further, as discussed earlier, s 180 of the BBCM Act clearly states that if a By-law is
inconsistent with the Act, the By-law is invalid to the extent of the inconsistency.
Here, the old By-law to the extent that it might be interpreted to permit a proprietor
who was not also an occupier to display any advertisement on common property
(albeit with written consent) would be inconsistent with s 35(4) of the BBCM Act and
therefore invalid.
[71] No error is revealed.
Did the Adjudicator properly consider the issue of the Body Corporate’s bias
against them?
[72] The second Adjudicator briefly considered the Clarkes’ allegations of bias against
them in the committee’s decision-making about their request.49
[73] On appeal, the Clarkes’ contend that the Adjudicator erred in law by failing to
properly consider the issue of bias, (notwithstanding the framing of the ground of
appeal) by not only the Body Corporate, but the Committee, and on our reading of
their lengthy submissions,50 individual members of the Committee and the Body
Corporate. The events traversed in their submissions, as allegedly relevant, date back
to at least 2011 and are said to support findings of negativity, inconsistency in
decision-making to the Clarkes’ detriment and bias against them. They include
submissions concerning previously decided adjudication applications, including
another application decided by the second Adjudicator, in respect of which they
contend he should have taken his prior knowledge into account in deciding the issue.
The complaint is that it does not appear he did so ‘when assessing negativity towards
us and bias,51 in deciding the most recent application before him.
[74] There is no doubt that there is a lengthy history of unhappiness between the Clarkes
and at least some other members of the Body Corporate and the Committee as elected
from time to time. Indeed, the extent of the distrust the Clarkes have for some of the
persons concerned may indeed be the genesis for the multiple adjudication
applications over the years. This is not to say that members of the Body Corporate
48 Turner Park Shopping Village [2016] QBCCMCmr 405, [46].
49 Ibid [55-56].
50 Applicants’ submissions filed 31 January 2017, pp 20–30; Applicants’ submissions in reply dated 21
March 2017, pp 20–33.
51 Applicants’ submissions filed 31 January 2017, p 23 [86].
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may not be equally distrustful of the Clarkes. Irrespective of any distrust, the Body
Corporate was obliged to act reasonably as required by s 94(2) of the BCCM Act.
[75] It is unnecessary for us to traverse the lengthy history set out by the Clarkes of alleged
indications or examples of negativity and bias towards them. We observe that the first
Appeal Tribunal allowed the appeal in respect of the ground of appeal relating to bias.
It held that in respect of the approval for the erection of the canopies which could
accommodate signage as per the plans presented by the Clarkes for approval, the
reasonableness of later the refusing to approve signs on the canopies, was not
considered by the Adjudicator because he found there was no basis to suggest the
meeting agreed to the extent of the signage proposed by the Clarkes. It was said he
did not therefore consider the reasonableness of the change of position ‘which was the
real question to be decided’. Further, it criticised the findings that because the
Adjudicator found the Body Corporate’s decision was reasonable, there was no basis
to conclude conflict had resulted in bias towards the Clarkes. They said the question
was whether the effect of any bias made the decision unreasonable.52 This appears in
effect, once an allegation of bias is made, to place a reverse burden of proof on the
Body Corporate to establish that any prior conflict with an applicant could not
possibly have affected a decision made, no matter how reasonable it may appear to be
be taking into account relevant considerations.
[76] With respect, the test is whether the decision is objectively reasonable, not whether it
could be considered unreasonable because of bad blood between the parties. Evidence
of inconsistent decisions in favour of other owners in similar circumstances may of
course support a finding of bias. In this regard, some reliance was placed on an
approval given to the owner of Lot 14 for a teardrop advertising banner on common
property. The second Adjudicator considered it did not assist because it predated the
decisions here sought to be impugned. Further, he/she considered it was difficult to
accept that the committee was biased since the Body Corporate in general meeting
was ‘of the same mind’.53
[77] In any event, given that an Adjudicator may effectively remake the decision in
deciding the application, and make an order that is just and reasonable in the
circumstances to resolve the dispute including making an order giving effect to a
motion as proposed or a variation of a motion as proposed,54 if the Adjudicator
considers the decision is not reasonable, it may make its own decision. Having found
it objectively reasonable, the second Adjudicator dismissed the application.
[78] The second Adjudicator expressed the following reasons for reaching the conclusion
that the applicants had not ‘established that, in the circumstances, there was an
inconsistency in the approach taken by the Body Corporate demonstrating bias
making the decision unreasonable’:
In conclusion, I am satisfied that the committee had no reasonable basis for
deciding that the applicants’ request was inconsistent with the original discreet
generic advertising signage and was not adequately detailed. However, I
consider it was reasonably open for the committee to find that: it was relevant
that the applicants did not operate a business at the complex and did not occupy
Lot 4; the Body Corporate had not considered the concept of signs or signage
52 Clarke v Turner Park Shopping Village Body Corporate [2016] QCATA 105 [103].
53 Turner Park Shopping Village [2016] QBCCMCmr 405, [55].
54 BCCM Act s 276(1), (3).
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on the new structures; and the proposed signage, as a package, would have an
adverse effect on the amenity of the complex.55
[79] The Clarkes argue in the appeal that as the second Adjudicator was also the
Adjudicator in what they refer to as the ‘2012 adjudication’ which related to signage
in respect of another lot, the Adjudicator was cognisant of and should have taken into
account his/her knowledge of documents and information provided at the time of the
earlier adjudication. The applicants argue had he done so, once the Adjudicator
considered the letter they relied upon confirming they had not sought a sign audit prior
to 26 August 2012,56 the Adjudicator could have reached no other conclusion than
that the Body Corporate members and others were dishonest and had acted unfairly
towards the applicants. However, that argument does not appear to have been made
in the Clarkes’ submissions to the Adjudicator.57 The 2012 adjudication must
necessarily have been in relation to signage that did not include fascia board signage
(because the structure on which the Clarkes seek to have fascia board signs erected as
part of the signage package for which approval was sought was not approved for
construction until late 2012). Therefore, it is not a comparable example.
[80] In any event, the reasons for decision given by the second Adjudicator support his/her
conclusion that the decision of the committee was objectively reasonable. We observe
that as a matter of course, the second Adjudicator’s involvement in the 2012
adjudication does not disqualify him/her from determining the relevant application
fairly. It was decided on the evidence before it. The application here was determined
some years later, based on different evidence. The Clarkes do not suggest the second
Adjudicator made a previous adverse determination against them.
[81] We conclude that the second Adjudicator properly considered and dealt with the issue
of alleged bias. Even if we were wrong about that, any such error would be immaterial.
Having regard to the effect of s 35(4) and s 180 of the BCCM Act, the outcome of the
adjudication and this appeal would be unchanged.
Conclusions and orders
[82] For the reasons explained, the appeal must fail. Accordingly, we make orders
dismissing it.
55 Turner Park Shopping Village [2016] QBCCMCmr 405, [56].
56 Applicants’ appeal book, p 577.
57 Applicants’ appeal book pp, 237–244, in particular at p 244; pp 535–561; p 547–548 [3d(ii)].
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Official source: https://www.sclqld.org.au/caselaw/QCATA/2019/051