Carpentaria Gold Pty Ltd v Hood [2015] QLC 36
LAND COURT OF QUEENSLAND
CITATION: Carpentaria Gold Pty Ltd v Hood [2015] QLC 36
PARTIES: Carpentaria Gold Pty Ltd
(applicant)
v
Anthony Gordon Hood and June Heather Hood
(respondents)
FILE NO: MRA188-12
DIVISION: General
PROCEEDING: An application for leave to adduce further expert evidence.
DELIVERED ON: 8 September 2015
DELIVERED AT: Brisbane
HEARD ON: 28 April 2015
HEARD AT: Brisbane
MEMBER: WL Cochrane
ORDERS: 1. The application is allowed.
2. The respondent is granted leave to adduce further
evidence from three additional expert witnesses
namely the valuer Mr Geoffrey William Eales, the
hydrogeologist Mr Errol Haydn Briese and the
veterinary consultant Dr David Keith Rendell.
CATCHWORDS: Mining Lease – Determination of Compensation – Mineral
Resources Act 1989 s 281.
Practice and Procedure – Application to rely upon
evidence of second and an additional expert after without
prejudice conclave conducted agreement reached between
experts disposing of question of compensation.
Considerations – case management, justice as between the
parties – balancing considerations.
Costs implications.
AON Risk Services Australia Limited v Australian
National University [2009] HCA 27.
-- 1 of 26 --
2
CH4 Pty Ltd v The Minister for Natural Resources, Mines
and Energy and Minister for Trade [2010] QLC 0037.
Conias Hotels Pty Ltd v Murphy & Anor [2012] QSC 297.
D v S [2009] QSC 446.
Gallo v Department of Environment and Resource
Management (No. 2) [2014] QLAC 11.
Lucantonio v Kleinert [2009] NSWSC 853.
State of Queensland & Anor v JL Holdings Pty Ltd (1997)
189 CLR 146.
Toan Van Pham & Ors v Brisbane City Council [2011]
QLC 0038.
APPEARANCES: Mr T Palmer of counsel appearing for Carpentaria Gold
Pty Ltd
Mr PJ Dunning QC and Mr DA Quayle of counsel
appearing for the respondents
Background
[1] Mining Lease 10170 is held by Carpentaria Gold Pty Ltd. The lease forms part of the gold
mining project described as the Ravenswood Project. This matter arises out of a referral by
the Mining Registrar at Charters Towers of an application for renewal of a mining lease.
[2] ML 10170 lies over Redcliff Station at Middlemount which property is owned, pursuant to an
operational licence OL77 and OL78, by Anthony Hood and June Hood who use the property
for grazing.
[3] The applicant Carpentaria Gold Pty Ltd, by an application made on 23 July 2011 seeks
renewal of lease ML 10170 over an area of 362.6431 ha for nine years.
[4] The matter of compensation between the parties was unable to be agreed and on 20 April
2012 the matter was referred by the Mining Registrar to this Court pursuant to s 279A of the
Mineral Resources Act 1989 (MRA) because compensation had not been determined within 3
months after the term of the lease notionally ended.
[5] Initially the respondents were represented by Rees R and Sydney Jones, a Rockhampton firm
of solicitors.
[6] During the time of that representation and in accordance the statutory requirements the
respondents filed a compensation statement on 13 November 2014. That compensation
statement was prepared by and lodged by their then solicitors and in that compensation
statement they sought a sum of $34,000 by way of compensation.
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3
[7] That compensation sum was said in the compensation statement to be in reliance upon a
valuer’s analysis and approach to the assessment of compensation and the calculation of the
compensation payable pursuant to s 281(3) and (4) of the MRA.
[8] That valuation report had been prepared by Mr Dennis Schy of Herron Todd White.
[9] Mr Schy actually prepared two valuation reports, one of which was premised upon the
original application for renewal of the mining lease.1 That report was dated 1 January 2012.
That first report concluded that the appropriate compensation figure was $120,000.
[10] The need for a second report arose because of a notification received from representatives of
the applicant that they proposed to lodge, and indeed had lodged,2 a substituted statement
pursuant to s 286(2)(c) of the MRA which made it clear that they proposed to amend the
application for renewal so as to remove reference to mining activity occurring in some of the
lease area and to restrict the renewal to a proposal for only ongoing monitoring and
rehabilitation.
[11] The second report of Mr Schy dated 11 November 2014 compiled in reliance upon that
information identified a figure of $34,000 as being the appropriate compensation. That seems
to be reflected in the compensation statement filed two days later.
[12] Orders were made for further conduct of the matter on 20 November 2013 and on 9 October
and 20 November 2014.
[13] In the order of 20 November 2014 directions were given with respect to meetings proposed to
be conducted between the valuers engaged by the parties. Those orders were in the following
terms:
“1. The valuers engaged by the parties are to confer in the absence of their clients and
instructing solicitors (at a time, place and in a manner agreed in consultation between
them) and attempt to identify areas of agreement and disagreement between them.
2. All things said and done in such conference shall be "without prejudice" until there is
formal agreement or disagreement about an issue and when there is formal
agreement or disagreement about an issue the valuers shall produce a joint report
which:-
(a) identifies in writing the matters on which they agree,
(b) identifies in writing the matters on which they disagree and the reasons why
they disagree.
The conference between the valuers shall be conducted in accordance with the
provisions of Part 5 - Evidence - Division 2 Rules 23, 24, 24A, 24B, 24C, 24D, 24E,
Meetings of experts and Division 3 evidence given by experts of the Land Court
Rules 2000 save that the requirements of Rule 24E(2)(b) is not required to be
complied with.
The joint report prepared by the valuers shall be delivered by the applicants to the
Court on or before 4.00 pm 9 December 2014.”
[14] The meeting between the nominated valuers took place on 24 November 2014 at Townsville.
1 Affidavit of Amy Guddman sworn and filed 13 November 2014 paras 4 and 5, exhibits AG-1 and AG-2.
2 Affidavit of Jemma Elizabeth Rigg filed 3 November 2014, sworn 30 October 2014, exhibit JER-1.
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4
[15] Consequent upon that meeting a joint report was prepared and a copy, in accordance with the
requirements of the order, was delivered to the Court by the solicitors for the applicant on 10
December 2014.
[16] That report stated as follows:3
“On 24th November at 10:30am Mr Jim Lyons of Taylor Byrne Townsville and Mr
Dennis Schy of HTW Townsville met on a ‘without prejudice’ basis to discuss the Land
Court Order with the purpose of complying with the directive of the Court in an attempt
to arrive at points of agreement and disagreement and to work through the points of
disagreement to see if these points could be further resolved.
During the course of the meeting the various issues were discussed including land values,
injurious affection; the long term impact upon grazing and other matters. After some
deliberation and frank discussions; an agreement overall was reached.
It was agreed that under all headings the sum of $29,000 would appear reasonable and
acceptable to both valuers as the sum payable for compensation on the amended
application area made by Carpentaria Gold Pty Ltd. This sum of $29,000 is exclusive of
professional fees and associated costs.”
[17] It might be thought that that document settles the issue of compensation between the parties
but that is apparently not so.
[18] On 23 December 2014 a notice of change of solicitor was filed in the Court confirming that
Emanate Legal had become solicitors for the respondents.
[19] At the review of the matter in Brisbane on 22 January 2015 Mr Quayle, appearing for the
respondents, was given leave to file and read an affidavit of Venesa Gleeson, a solicitor in the
employ of Emanate Legal, sworn that day.
[20] In that affidavit Ms Gleeson set out the history of her firm’s involvement on behalf of the
Hoods.
[21] In the course of that affidavit she stated as follows:
“7. Since assuming conduct of the matter for the Hoods, and notwithstanding that it has
not yet received the file on the matter from the Hood's previous legal advisors,
Emanate has conducted some preliminary inquiries and given some preliminary
consideration to the joint valuation report. Those initial indications suggest that the
aligned opinions of Mrs Schy and Lyons, recorded in the joint valuation report, do
not reflect consideration of all of the matters that the Hoods would contend should be
addressed in determining the proper amount of compensation payable.
8. We have been instructed by Hoods to conduct more extensive investigations with the
aid of Mr Geoff Eales (a valuer) and Mr Errol Briese (a hydrogeologist) and subject
to the outcome of those further investigations, seek leave to adduce evidence from
those experts in this proceeding.
9. Urgent arrangements have been made for Mr Eales and Mr Briese to inspect the site
in the week commencing 2 February 2015. Once they have made their inspections of
the property they have indicated to me that they will be able to offer some more
developed views about the matters within their areas of expertise. At that point the
Hoods will be in a position to assess whether leave will need to be sought to adduce
evidence from those experts.”4
3 Exhibit 1.
4 Affidavit of Venesa Gleeson paras 7-9.
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5
[22] In dialogue between Mr Quayle and myself during that review the following transpired:5
“His Honour: And Mrs [Gleeson’s] affidavit is in paragraph 7. And it rather looks like
that the Hoods had engaged a valuer who’s participated in a without prejudice conference
directed by this court and has reached an agreement with the valuer on other side. And
your instructors now wish to resile from that agreement.
Mr Quayle: We would put it rather differently than that, your Honour.
His Honour: How do you put it?
Mr Quayle: This court ordered or directed that the valuers nominated by each of the
parties ---
His Honour: Nominate?
Mr Quayle: Nominated by each of the parties.
His Honour: Yes.
Mr Quayle: Participate in a joint meeting. That occurred. The order also
contemplated that a joint report would be generated. That has occurred. That joint report
reflects no more than that the opinions of those two valuers align. There’s no binding
agreement upon my client or, for that matter, my learned friend Mr Green’s. The
ultimate determiner of the proper amount of compensation is, it’s trite to say, this court.
And this court asks for and is given joint reports of this kind for no other purpose than to
assist it in coming to the determination of a proper amount of compensation.
His Honour: But in that regard, Mr Quayle, isn’t it now a matter of evidence before
this Court? The two valuers have met and agreed that $29,000 is the appropriate amount
of compensation.
Mr Quayle: It may well be, your Honour. But that, with respect, does not resolve
what the proper amount of compensation is. All it says it that two valuers come to a view
that it’s that sum. It also does not, with respect, we would say, inhibit us if discretionary
considerations allow, from – and leave is granted, from calling further evidence.
His Honour: But, Mr Quayle, the usual rule – and it’s really embodied in the UCPR –
is that each party is entitled to one expert in any particular domain of expertise and that a
second expert can only be allowed to give evidence with the leave of the court.
Mr Quayle: Yes, your Honour.
His Honour: And for that leave to be granted, good reason must be shown. And better
reason than merely new legal advisers take a different view of how the compensation
ought be determined or calculated, isn’t it?
Mr Quayle: Well, certainly, good reason needs to be shown why leave would be
granted, your Honour.
His Honour: Well, do you ---
Mr Quayle: The primary - I’m sorry, your Honour.
His Honour: Do you say that Mrs Gleeson’s affidavit reveals good reason”
Mr Quayle: No. We don’t rely on that for leave, your Honour. Today we seek an
adjournment, nor leave. What we propose, your Honour – what we indicate, no more, no
less, by Ms Gleeson’s affidavit, your Honour, is that my instructors are new to the case.
Their understanding of it is in its infancy. Preliminary inquiries have so far revealed that
my client – and we would, with respect, think the court, too, might have some disquiet
about the joint report in its present form. And my clients seeks an adjournment to further
5 T 1-5 L 35 T 1-7 L 5.
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6
those investigations and commits that, as those investigations are advanced, if it is so
advised it will bring an application for leave. It doesn’t seek leave today, your Honour”
[23] Later I made the following observation to Mr Quayle:
“ …
His Honour: … I think, Mr Quayle, you would glean my concern and some alarm at
the notion that parties should engage a valuer, embark upon a without prejudice
conference, deliver a joint report identifying an agreed amount of compensation, and then
– however you wish to clothe it verbally – to step back from that valuation and to get
another one or to add to it. And that’s where we’re going to have to investigate fairly
carefully whether good reason has been shown why that should happen. And, indeed,
why there should now be different valuers involved and an additional expert – Mr Briese
is well known to this court – allowed to give evidence.
Anyway that’s some matter for the future. Mr Green, on the basis that all Mr Quayle
seeks today is an adjournment – I’m not going to bind you because I’m going to give you
an opportunity to speak to me about that. But that does not seem to be on first blush to be
a sensible approach in the light of the now expressed views of the Hoods’ new legal
representatives. What do you say about that?
Mr Green: Yes, your Honour. I accept that an adjournment may well be the outcome
of today. The other matter that I had anticipated would be raised today was access to the
court file by the respondent. I – am I now to understand that there is no problem with the
respondent accessing the court file?”6
The Application
[24] Subsequently, on 11 February 2015, the applicant filed a general application in the Court
seeking the following orders or relief:
“1. The Respondents have leave to notify such further experts as they may be advised
with the time for such notification to be the subject of further directions;
2. The Respondents have leave to lead evidence from experts notified in accordance
with Order 1;
3. The Respondents pay the Applicant’s costs thrown away of the production of the
joint report to be agreed or, if not agreed, to be assessed;
4. Such other orders and directions as the Court considers appropriate.”
[25] Within the application, the applicants say that it is based upon the following:
“1. On 20 November 2014, the Land Court made orders inter alia requiring (Order 2(b))
that the parties’ then nominated, valuation experts, Messrs Lyons and Schy, meet and
prepare a joint expert report in accordance with the Land Court Rules 2000.
2. The parties’ then nominated, valuation experts thereafter published a joint report
dated 1 December 2014 (“the joint report”).
3. On or about 24 December 2014, the Respondent engaged new lawyers and new
experts to consider afresh the matters the subject of this proceeding and in particular
the amount of compensation the Respondents are entitled to upon the renewal of ML
10170 (“the mining lease”).
4. In light of the preliminary opinions expressed by the new experts engaged on their
behalf the Respondents believe that:
6 T 1-7 L 17-35.
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a. the sum of money referred to in the joint report does not represent the
amount of compensation they are entitled to upon the renewal of the mining
lease;
b. the amount of compensation to which they are entitled is likely to exceed
$800,000;
c. either or both of Messrs Lyons and Schy, in reaching the opinions expressed
in the joint report, did not take into consideration relevant matters, took into
account irrelevant matters and proceeded on assumptions that were
unfounded or incorrect;
d. the amount of compensation to which they are entitled upon renewal of the
mining lease cannot be determined unless they are given leave to call
evidence from further experts;
e. in the interests of justice they should be granted leave to call evidence from
further experts.”
The Hearing
[26] The hearing of the application took place in Brisbane on 28 April 2015 with Mr T Palmer of
counsel appearing for Carpentaria Gold Pty Ltd and Mr PJ Dunning of Queens Counsel and
Mr DA Quayle appearing for the respondents Mr and Mrs Hood.
[27] The respondents read and relied upon the following material:
a) General application filed 11 February 2015;
b) Affidavit of Errol Haydn Briese filed 11 February 2015;
c) Affidavit of Geoffrey William Eales filed 11 February 2015;
d) Affidavit of Dr David Keith Rendell filed 16 February 2015;
e) Affidavit of Venesa Gleeson filed 22 January 2015;
f) Affidavit of Robert John McKenzie filed 11 September 2014; and
g) Affidavit of Amy Gudmann filed 13 November 2014.
[28] The joint report prepared by Messrs Schy and Lyons was tendered as an exhibit.7
[29] The applicants read and relied upon the following material:
a) An affidavit of Peter Alexander Beilby filed 5 September 2014;
b) An affidavit of Jemma Elizabeth Rigg filed 3 November 2014 and;
c) A copy of an Environmental Impact Statement prepared by the State of Queensland in
respect of the Sarsfield Expansion Project.8
[30] The parties had agreed, prior to the hearing, on a bundle of documents which were also
tendered before the Court. That bundle of documents consisted of:
Exhibit Number Document No. Document Date
3 1 Transcript of Proceedings 7 August 2014
4 2 Order 7 August 2014
5 3 Order 9 October 2014
6 4 Transcript of Proceedings 20 November 2014
7 5 Email to Expert: Geoff 19 January 2015
7 Exhibit 1.
8 Exhibit 2.
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8
Eales
8 6 Transcript of Proceedings 22 January 2015
9 7 Email to Expert Errol
Briese
23 January 2015
10 8 Email to Expert: David
Rendell
27 January 2015
11 9 Email to Expert: Errol
Briese
2 February 2015
12 10 Transcript of Proceedings 17 February 2015
13 11 Letter from Department of
Natural Resources and
Mines to Green Legal
13 April 2015
[31] Of the various deponents only Mr Briese was required for cross-examination by the applicant.
Mr Dunning QC did not require any of Mr Palmer’s deponents for cross-examination.
[32] In anticipation of the cross-examination of Mr Briese a map of all of the leases which exist on
Kirkton Station was tendered by Mr Palmer.9
[33] An enlarged plan of the area affected by the mining lease was also tendered.10
The affidavit and evidence of Mr Briese
[34] Mr Briese is a Groundwater Consultant and the Principal of Briese Groundwater Consulting.
[35] As evidenced by his professional resume which was exhibited to his affidavit Mr Briese has
extensive experience in the areas of hydrogeology and groundwater dating from as far back
as 1971.
[36] He had been retained by the respondents to provide a preliminary opinion about the impacts,
if any, upon groundwater resources on Kirkton Station that he considered may have been
causally related to the activities of the applicant on ML 10170.11
[37] The short report prepared by Mr Briese expressed the following opinion:12
“ Impact of Renewal of ML 10170 on Groundwater
Based on the DEHP Assessment Report which in turn is based on information provided
by Carpentaria in their EIS and SEIS reports and on discussions with David Hood
manager of "Kirkton", it is my opinion that:
The groundwater system has been significantly contaminated by the existing
TSF13 and WRD and this will be on going [sic];
The proposed Expansion Project (if it goes ahead), will have a compounding
effect on groundwater contamination despite the proposal to HDPE line to
proposed TSF and install groundwater recovery bores. The proposed IWRD will
not be lined.
Seepage from the TSF and contamination of the groundwater system will
continue for a period in excess of 40 years, 20 years during the proposed mining
operations and based on Carpentaria modelling for at least 20 years post closure.
Natural flushing of the contamination after seepage from the TSF ceases will
take considerably longer.
9 Exhibit 14.
10 Exhibit 15.
11 Affidavit of Errol Haydn Briese.
12 Affidavit of Errol Haydn Briese Exhibit EHB2 page 10.
13 TSF means Tailings Storage Facility.
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9
Carpentaria have monitored the groundwater quality in "Kirkton's" Burnt Point Mill since
April 2010 and provided the data to David Hood. The results indicate that sulphate
concentrations generally exceed 2000mg/L. The ANZECC (2000)14 guidelines state that
"levels of sulphate greater than 2000mg/L may cause chronic or acute health problems in
stock". This fact was obviously recognized by Carpentaria as they provided a piped water
supply from the Burdekin River via the mine to the cattle trough at the mill. While this is
an acceptable interim solution while the mine is in operation, groundwater contamination
will remain long after the mine closes and the question must be asked who will operate
and maintain the piped system post mining.
In summary groundwater in the aquifers on which "Kirkton" is reliant for stock water
supplies has been significantly contaminated by the mining operations to a level where it
can no longer be used for stock watering. This contamination will continue and remain
well into the future.”
[38] In his cross-examination of Mr Briese Mr Palmer was initially keen to establish that Mr
Briese fully understood his obligations as an expert witness before a Court.
[39] I am satisfied from the responses given by Mr Briese to the cross-examination of Mr Palmer
that he did understand those professional obligations.
[40] Mr Palmer then moved to explore the circumstances under which Mr Briese was given
instructions to prepare the memorandum which was exhibited to his affidavit.15
[41] The relevant part of the instructions provided to Mr Briese and the manners upon which Mr
Palmer cross-examined him are as follows:
“consider the basis upon which the assessment of valuation required under the MRA,
as regards to the renewal of ML10170 is incorrect, insofar as same impacts on
groundwater, including long term impacts of possible/probable leaching of water
from the tailings dam located on the Land into Hood’s bores, dams, creeks, aquifers
and other such water sources on the Land
consider the correct basis upon which compensation in accordance with section 281
of the MRA in respect of the renewal of ML10170 should be assessed, taking into
account any short/medium/long term impacts of the mining operation / rehabilitation
will have on the Land and/or the business operation, in particular on the water
sources relied upon
deliver a preliminary view (in conference) as to the prospects of success.”16
[42] In the course of cross-examination Mr Palmer took Mr Briese to the affidavit of Peter
Alexander Bielby.17
[43] In that affidavit, in particular at paragraphs 25 and 26, it was revealed that far from
maintaining an application for expansion of the Sarsfield project it was, as from 1 August
2014, unlikely that the Sarsfield expansion would generate a rate of return which would allow
Carpentaria Gold to proceed with that aspect of its operation and, at paragraph 27, Mr Bielby
deposed to the “almost” certainty that that Sarsfield expansion would not proceed and no
expanded TSF would be constructed on ML 10170.
14 Australian and New Zealand Environment and Conservation Council, Australian and New Zealand Guidelines
for Fresh and Marine Water Quality (October 2000).
15 Affidavit of Errol Haydn Briese Exhibit EHB2.
16 Exhibit 9, page 1.
17 Affidavit of Peter Alexander Bielby pages 6-7 paras 25-27.
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10
[44] Those observations were reinforced by a statement exhibited to the affidavit of Jemma
Elizabeth Rigg18 to which was appended a document entitled “Substituted statement pursuant
to S286(2)(c) Mineral Resources Act 1989 concerning Mining Lease No. 10170 (Dated 28
October 2014)” in which, under the heading “The reason for seeking the renewal”, appears
the following:
“The renewal of the mining lease is sought to allow for operational and rehabilitation
requirements as part of the greater Ravenswood Project.
On the lease is a portion of the Sarsfield Mill and associated infrastructure and a Tailings
Storage Facility (“TSF”) for the Ravenswood Project (Figure 1). There are also a number
of seepage recovery sites, surface water monitoring sites and groundwater monitoring
boards within the lease boundary, including monitoring sites mandated by the
environmental authority EPML00979013 (formerly MIN102515111) (“EA”), which
require ongoing monitoring.
It is anticipated that the rehabilitation requirements cannot be met within the proposed
renewal terms of nine years and a further renewal will be required.”19
[45] The point of that passage of cross-examination was to demonstrate that the current proposal
by Carpentaria Gold does not contemplate an expansion of their mining operation on the
subject lease but only contemplates ongoing rehabilitation activities particularly with respect
to the TSF.
[46] Throughout the course of his cross-examination of Mr Briese, Mr Palmer was at pains to
distinguish between the contamination which may be accepted to be present on the site as a
consequence of previous mining activities and any further contamination which might occur
during the period of the extension of the lease.
[47] In what I believe was a fair objection to Mr Palmer’s cross-examination theme Mr Dunning
QC took objection and in doing so said:
“You'll see there that Mr Briese expresses his opinion in respect of three discrete issues:
the first is the existing groundwater contamination; the second is the expansion project -
and in terms he recognises that may not proceed; and the third discrete issue is the
ongoing seepage.
Now, our learned friend, it seems, has been anxious to demonstrate, which we would've
been happy to concede, the state of the evidence is that the lease presently is only sought
for the purpose of managing his client's environmental obligations. Well, it was clear on
the face of the document the witness appreciated that. And I'm reluctant to hurry my
learned friend along; we've only got a day allocated for the hearing of this application and
none of this seems to be directed at matters germane to that.”20
[48] Mr Palmer sought to respond to that objection in the absence of the witness.
[49] In the absence of the witness, Mr Palmer explained21 that Mr Eales, the valuer nominated by
the respondent, may have misunderstood the nature of the contamination which will result
from an extension of the lease.
18 Affidavit of Jemma Elizabeth Rigg.
19 Affidavit of Jemma Elizabeth Rigg Exhibit JER1 page 7.
20 T 1-29 L 22 - 33.
21 T 1-31 L 6 - 13.
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[50] That does rather seem to me to be putting the cart before the horse in the sense that Mr Eales’
assessment of the appropriate compensation would seem likely to rely upon the assessment
by Mr Briese of the nature of any contamination occurring during the period of the renewal of
the lease, whether or not that contamination had arisen from previous activities or from the
rehabilitation efforts which necessarily must be made during the period of the renewal or
indeed continue to accrue during the time of the renewed lease.
[51] Mr Palmer also somewhat vigorously cross-examined Mr Briese about impacts that were
consequential upon the proposed Sarsfield expansion and those that arose from the
Transitional Environmental Program (TEP) which had been enforced by the Department of
Environment and Heritage Protection.22
[52] I am satisfied that, in that context, much of the cross-examination by Mr Palmer related to
matters that, should I allow the respondents to call the extra expert contended by them, will
necessarily have to be ventilated and explored in some considerable detail in assessing the
contamination impacts which are a consequence of the renewal of the mining lease.
[53] I am equally satisfied that exploring those matters at this stage is somewhat premature and
does not lead me to greater understanding of factors which need to be considered in deciding
whether or not special circumstances have been demonstrated which warrant allowing the
calling of an additional expert.
[54] Issues will also arise as to whether the TEP mandated by the Department of Environment and
Heritage Protection will achieve its ambitions and what will be the impact on the Hoods
property of the operation of that TEP.
[55] Unsurprisingly, once Mr Palmer had completed his cross-examination, Mr Dunning QC
sought by re-examination to clarify the position with potential contamination even if, during
the extended lease period, there was no expansion of operations onsite but only attention
being paid to the TEP.
[56] As with the outcome of the cross-examination by Mr Palmer that re-examination, to my
mind, focuses upon matters that will necessarily have to be addressed if leave is given to call
the additional experts. It does not assist me with determining the present application.
The affidavit of Mr Eales
[57] It is appropriate to comment upon the affidavit of Mr Eales, the registered valuer, now
proposed to be relied upon by the respondent.
[58] Mr Eales swore an affidavit but was not required for cross-examination by the applicant.
[59] That does not mean that his evidence should be accepted uncommented upon.
[60] In his affidavit Mr Eales deposes to having been provided with five documents upon the basis
of which he formed a preliminary opinion about the appropriate quantum of compensation.
22 Affidavit of Jemma Elizabeth Rigg, Exhibit JER1 page 8; T 1-33 L 9 onwards.
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12
[61] Those documents were:
a) Taylor Byrne Pty Ltd (2 September 2014) “Compensation Assessment for Renewal of
ML 10170 under Mineral Resources Act 1989, Part of Kirkton Station”.
b) Herron Todd White (1 January 2012) “Valuation Report Part of Kirkton”.
c) Joint Expert Report of the Valuers dated 1 December 2014.
d) Affidavit of Errol Briese sworn 11 February 2015.
e) Anecdotal information provided to me by the Respondents.23
[62] Curiously Mr Eales’ affidavit deposing to his having formed a preliminary estimate was
sworn on 11 February 2015 the exact date upon which Mr Briese’s affidavit was also
sworn.
[63] The affidavit of Mr Briese contained a report dated 6 February 2015, so the possibility must
be acknowledged that Mr Eales had an opportunity to look at that report sometime after 6
February and before he and Mr Briese each swore their affidavits.
[64] Mr Eales’ affidavit contains the following:
“8. I have conducted my own investigations and based on those investigations and the
material I have read, I am of the opinion that the following sums represent proper
compensation in accordance with the Mineral Resources Act 1989:
(there then follows an iteration of various sections of the Mineral Resources Act and a
conclusion that the total compensation assessed by Mr Eales is $923,010.
[65] He then goes to say:
“9. Based on the information I have considered and the investigations I have conducted,
my preliminary estimate of the value of compensation that should be paid to the
Respondents for the renewal of the mining lease, is nine hundred and twenty three
thousand and ten dollars ($923,010) together with the compensation identified at
section 281(3)(a)(vi) of the MRA.
10 My assessment takes into account relevant considerations which were apparently not
taken into account or were not adequately taken into account by the valuers in the
Joint Expert Report dated 1 December 2014, in particular the ground water
contamination issues as addressed in the affidavit of Mr Briese. Furthermore, my
assessment reflects the diminution in the value of Kirkton Station as in my opinion is
required by section 281(3)(a)(ii) of the Mineral Resources Act 1989.”24
[66] It is noteworthy that nowhere in his affidavit does Mr Eales descend to identifying “the
investigations I have conducted” or “relevant considerations which were apparently not taken
into account or were not adequately taken into account by the valuers in the Joint Expert
Report”.
[67] In assessing the worth of the affidavit sworn by Mr Eales I should record that I have been
significantly influenced by the very large sum i.e. in excess of $900,000, which is contended
may be the appropriate compensation figure. That figure should be contrasted with the figure
of $29,000 agreed between the experts in their joint report. If that figure is maintainable then,
23 Affidavit of Geoffrey William Eales, para 5.
24 Affidavit of Geoffrey William Eales, paras 8 – 10.
-- 12 of 26 --
13
in my view, it may be a grave injustice to the respondents to refuse them leave to call the
additional experts Mr Eales and Mr Briese.
[68] If, on the other hand, leave is given and Mr Eales’ and Mr Briese’s evidence does not in a
sense come up to proof and justify an award of damages in the vicinity of the sum currently
contended for by the respondents, then that is a matter which may well sound in costs with
respect to the cost of the hearing proper as distinct from any costs which are related to this
present application and steps which have occurred and been wasted in the past.
[69] In my assessment of Mr Eales’ evidence I have had in mind the observations of Brereton J in
a NSW decision of Lucantonio25 in which His Honour was considering the worth and
admissibility of evidence of what a prudent legal practitioner would have done in
circumstances relating to giving advice with respect to the purchase of land for development.
[70] The parties, seeking to call evidence from a learned Queens Counsel, sought to rely upon that
report as establishing what “an ordinary skilled barrister” would have appreciated or advised
his clients.
[71] In response to those contentions the representatives of one of the contradictor parties
contended that that report from Queens Counsel ought not be admitted for three main reasons
namely:
“First, that he is not qualified to give evidence of what other barristers would do,
although he is admittedly expert in the relevant fields of practice; secondly, that he does
not in his report identify the relevant assumptions as to the precise position in which [the
barrister] relevant to what a barrister would or would not appropriately have done, so that
it cannot be ascertained whether the opinion is based on the facts that will ultimately be
found by the Court; and, thirdly, that he does not articulate the rationale for his
opinion.”26
[72] The Lucantonio case was one in which there was a claim for damages in respect of losses said
to have been occasioned by the failure of a proposed acquisition of land for development, and
of subsequent legal proceedings arising out of that attempted acquisition, alleging that those
losses were caused or contributed to by the professional negligence respectively of an
architectural consultant, a solicitor, and a barrister.
[73] The present application is not a case of a claim for professional negligence but, in my view,
the affidavit of Mr Eales may be seen as contending that there was a want of professionalism
and prudent conduct by either or both of the valuers engaged for the purpose of the joint
report.
[74] Accordingly, I find the observations of His Honour Justice Brereton pertinent to the present
case. In his decision, Brereton J identified a number of relevant principles which might be
applied in a professional negligence case.
25 Lucantonio v Kleinert [2009] NSWSC 853.
26 Ibid [7].
-- 13 of 26 --
14
[75] His Honour said:27
“With the benefit of the helpful submissions of Mr Ashhurst of Senior Counsel, for the
third defendant, it is possible for present purposes to summarise the relevant principles as
follows (extracted primarily from the following authorities: Fox v Everingham & Howard
(1983) 76 FLR 170 at 178; Midland Bank Trust Co Ltd v Hett, Stubbs & Kemp (a firm)
[1979] Ch 384 at 402; Permanent Trustee Australia Limited v Boulton Permanent Trustee
Australia Limited (1994) 33 NSWLR 735, 738; Rebelais Pty Ltd v Cameron [1993] ANZ
ConvR 457; O’Brien v Gillespie (1997) 41 NSWLR 549 at 557-558; MB v Protective
Commissioner NSWSC 717 [2000] 217 ALR 631; Makita (Aust) Pty Ltd v Sprowles
[2001] NSWCA 305; [2001] NSWCA 305; (2001) 52 NSWLR 705 [59], [71]):
(1) In a professional negligence case, expert evidence is admissible of an accepted or
standard professional practice, conduct or standard. Expert evidence is also admissible of
what is commonly considered professional practice of competent and careful
professionals in the field.
(2) Expert evidence is not admissible of what the expert would himself or herself have
done in the circumstances, at least if that evidence is tendered to support the inference
that other careful and competent professionals would have done the same things
professionally; nor is expert evidence admissible of what as a matter of law reasonable
care is required; that is a question of law for the court and not for an expert.
(3) Expert evidence of what a competent and prudent practitioner would have done in the
particular circumstances of the defendant is not admissible if, in effect, it is no more than
one professional commenting on the conduct of another, at least in the absence of
evidence that the expert has additional training, study or experience to demonstrate the
acquisition of specialist knowledge of what a competent and prudent practitioner would
do. However, expert evidence of what a competent and prudent practitioner would have
done in certain circumstances may have been admissible if the witness has by training or
experience such additional special qualifications or experience as to equip him or her to
give evidence with competence of what the general body of competent and general
practitioners would do.
(4) Where the expert witness does not sufficiently state the assumed circumstances of the
defendant’s position on which the opinion is based, that may impact on the fairness to the
defendant of admitting the evidence to such an extent as to warrant its rejection under
(NSW) Evidence Act 1995, s 135, even if it is technically admissible.
(5) In any event, the expert must furnish the court with criteria enabling the evaluation of
the expert’s conclusion, including its essential integers and rationale.
(6) Where the professional field in question is that of law, expert evidence is not essential
to making (or for that matter defending) a case of professional negligence, because the
court itself is sufficiently equipped to form an opinion about legal practice unaided by
expert opinion. That is not to say that such opinion is inadmissible in such a case; to the
contrary, it is admissible, but even where adduced it is not conclusive, and the court is
entitled to decide the case contrary to expert evidence where appropriate to do so.”
[76] Clearly the affidavit of Mr Eales is deficient in explaining how he reached the position which
leads him to contend for compensation in excess of $900,000. The affidavit meets none of
the criteria set out in His Honour’s judgment.
[77] However I must accept that Mr Eales is a valuer of considerable experience, well known to
this Court and expressing what he describes as only as a “preliminary” view. I have already
commented above that a failure to produce a report which properly supports his preliminary
view may expose his clients to significant costs risks down the line if the leave is granted.
27 Ibid [8].
-- 14 of 26 --
15
[78] Similarly while there are allegations that the valuer previously engaged to carry out the
valuation exercise for the respondent failed to take into account contamination of
groundwater, there is no evidence before the Court of what factors that valuer, Mr Schy, took
into account or failed to take into account.
The affidavit of Dr David Keith Rendell
[79] The respondents filed and read an affidavit of Dr David Keith Rendell, a veterinary
consultant apparently located in Victoria. Dr Rendell reviewed a number of documents
namely:
a) A report from Charters Towers Veterinary Service dated 31 January 2013;
b) Results of C & R Consulting Water Sampling dated 7 March 2013;
c) Plan of operations of Mining Lease 10170.
[80] Dr Rendell was not required for cross-examination.
[81] As I read his report he says that the documents he read confirms that some cattle died as a
consequence of nitrate toxicity. He says:
“The specific degree of role of the streamwater as a source of the nitrate has not
conclusively been established. Based on the inconclusive evidence, the streamwater was
at least a contributing factor, at worst it was the cause of the cattle deaths.28
[82] Dr Rendell’s affidavit goes on to say that the deaths of the cattle referred to were unusual and
that they occurred close to mining operations was, in his opinion, a circumstance which
required further investigation.29
[83] I am at something of a loss to understand the relevance of Dr Rendell’s affidavit and no oral
submissions were made with respect to it by the respondent.
[84] The reports attached to the affidavit of Dr Rendell include a report dated 31 January 2013
from the Charters Towers Veterinary Service which identifies a number of dead cattle having
been found on a property ten kilometres west of Ravenswood but does not identify the
property as having been the respondent’s property Kirkton.
[85] Attached to that report is a laboratory report from Biosecurity Queensland Veterinary
Laboratories which does identify the property as being Kirkton Station but does not give a
specific location on that station.
[86] It is difficult to see how the affidavit of Dr Rendell strengthens the respondent’s application
and certainly there is nothing in the material nor in submissions which would clearly warrant
including Dr Rendell in any necessary leave to call extra expert evidence.
[87] Based on the material appended to his affidavit, the very best Dr Rendell could do would be
to produce a speculative conclusion based upon reports of water analysis, which themselves
have appended explanations for elevated levels of nitrate and nitrite as potentially coming
28 Affidavit of Dr David Keith Rendell para 4.
29 Affidavit of Dr David Keith Rendell para 5.
-- 15 of 26 --
16
from a wide range of sources including vegetation and feed. I would regard such an exercise
as entirely arid for the purposes of determining compensation for the presence of a mining
lease.
[88] The proposition that they do not need leave to call Dr Rendell is advanced by the respondents
in their submissions30 in which they say:
“It is also to be noted that neither the Respondent nor the Applicant has, in this
proceeding, either by order or direction, been required to formally notify the experts on
which they intend to rely. That is significant so far as it concerns Mr Briese and Dr
Rendell. They are the only experts in their fields. The Respondents do not, in terms,
require leave to lead evidence from those experts.”
[89] That submission overlooks the terms of the order made by me on 9 October 2014 where at
paragraph 2 the respondent was:
“To file and serve all of its expert reports by 4.00pm on 13 November 2014.”
[90] No expert report was filed from Dr Rendell or any other veterinary expert. Accordingly, in
my view, the respondents are in breach of the Court order and now require leave to identify
other experts upon whom they wish to rely at the hearing of this matter.
[91] Notwithstanding the existence of that order and the observations I make in the paragraphs
above about the potential aridity or lack of utility involved in calling Dr Rendell it seems to
me, having regard to the fact that it was only about five weeks after the time for compliance
with that Order 2, that since the current solicitors for the respondents received instructions,
there is a faint argument that they should be allowed adduce the evidence of Dr Rendell. If
they are granted leave to do so however they place themselves at risk with respect to costs
should be it be found that Dr Rendell’s report, assuming one will be forthcoming, does not
provide any assistance to the Court in determining the appropriate amount of compensation.
[92] No doubt it would be said by the respondent’s current solicitors that that was a failure by their
predecessors.
The Land Court’s procedures and relevant law and cases
[93] The statutory jurisdiction of this Court is established by the Land Court Act 2000 (LCA) and
the Land Court Rules (LCR) promulgated pursuant to that Act.
[94] Within the LCA there is no provision for the exchange of formal pleadings in matters before
this Court.
[95] Notwithstanding that absence of a formal provision for pleadings, s 4(1) of the LCR provides
that where those rules do not provide for a matter and the Uniform Civil Procedure Rules
1999 (UCPR) do provide for a matter the UCPR apply with necessary changes.
[96] In AON Risk Services Australia Limited v Australian National University31 the Court had to
consider a case where an application to amend a statement of claim made on the third day of
30 Respondent’s submissions para 23.
31 [2009] HCA 27.
-- 16 of 26 --
17
a four week trial had been allowed and, in particular, to consider the relevance of case
management principles to an application to amend.
[97] The question also arose as to whether a party should be permitted to amend to raise arguable
issues subject to the payment of costs. In the original decision, in which the trial Judge
granted an application for adjournment of a trial to make substantial amendments to a
statement of claim, the Judge’s reasons involved a number of considerations.
[98] Of those considerations a matter of relevance to the present set of circumstances was that the
trial Judge in AON Risk Services found that the decision of the High Court in Queensland v
JL Holdings Pty Ltd32 stood as authority for the proposition that:
“ ‘Justice is the paramount consideration’ in determining the application to amend.”33
[99] That view with respect to the majority opinion in JL Holdings was also relied upon by the
Court below the Court of Appeal of the A.C.T. upholding the granting of leave to amend but
allowing the appeal insofar as was agreed unanimously that the costs of and thrown away by
the amendments should have been awarded on an indemnity basis.
[100] In the majority decision in the Court of Appeal of the Supreme Court of the A.C.T. the Court
held, inter alia, that case management considerations, including the availability of Court
resources, were not irrelevant, but the paramount consideration was:
“Justice as between the parties”.34
[101] Before the High Court French CJ, with whom the other Judges did not disagree, observed:
“It appears that a factor in the decision of the primary judge and of the Court of Appeal
was the decision of this Court in JL Holdings. That case arose out of an entirely different
factual setting. However, to the extent that statements about the exercise of the discretion
to amend pleadings in that case suggest that case management considerations and
questions of proper use of court resources are to be discounted or given little weight, it
should not be regarded as authoritative.”
[102] My reading of all of the decisions in the AON Risk Services case lead me to the view that the
current position in Australian Courts, having regard to that decision and its apparent disdain
for some of the dicta contained in the JL Holdings case, is that case management issues are,
along with other factors, a matter to be taken into account but are not necessarily the sole
determinant of whether applications for amendments and/or adjournments ought be allowed
but in some circumstances may be so.
[103] Similarly the matter of justice being done between the parties is a highly relevant but not
necessarily compelling matter to be weighed when considering an application for amendment
or adjournment.
32 (1997) 189 CLR 146.
33 AON Risk Services [2009] HCA 27 [2].
34 AON Risk Services Australia Ltd v Australian National University [2008] ACTCA 13 per Higgins CJ [10], per
Penfold J [54] and Lander J [196].
-- 17 of 26 --
18
[104] Another factor which emerges in the reading of the various decisions in the AON Risk
Services case is that case management was not to be seen as an end in itself and the ultimate
aim of any Court remains the attainment of justice.35
[105] In that decision the following was said:
“Where a party had had a sufficient opportunity to plead his or her case, it may be
necessary for the court to make a decision which may produce a sense of injustice in that
party, for the sake of doing justice to the opponent and to other litigants.”36
[106] Conias Hotels Pty Ltd (as trustee for The Conias Hotel Trust No. 2) v Shaughn Murphy &
Ors37 was a case in which an application had been made to appoint an expert in addition to
the expert who had previously been appointed.
[107] In that case a single expert had previously been appointed to consider the case of both parties.
[108] The Conias Hotels case involved valuation of an attached bottle shop and the valuer
previously appointed had taken the view that the premises located in Roma Street had no
quantifiable value because there was some doubt as to whether, if an extant lease were
terminated, there was any or no certainty of obtaining a replacement discount bottle shop
tenant.38
[109] In the course of his decision Applegarth J made the following observations, clearly apposite
in the present case:39
“[5] It almost may be taken for granted that experts adopting the same methodology
applied to the same facts and applying the same assumptions might come to different
opinions, simply as a matter of professional judgment. On valuation issues, the mere
fact that different experts come to different opinions simply identifies that, in many
cases, there is a range of opinion within which the actual value of real property, a
business or other thing can be legitimately arrived at.
[6] The fact that differences of opinion are not enough is established in authorities which
include D v S [2009] QSC 446. And, as has been earlier said by Biscoe J in Walker
Corporation Pty Ltd v Sydney Harbour Foreshore Authority [2008] NSWLEC 282 at
[33], "Large differences of opinion between valuation experts are, unfortunately, a
common occurrence in this court. The solution does not lie in permitting the parties
to call more valuation experts to join the fray."
[7] The principles governing the exercise of discretion to appoint another expert have
been considered in other jurisdictions in connection with rules that are similar to our
rules. Some of the authorities have been helpfully set out in the written submissions
of the plaintiff from the previous hearing on 13 August 2012. As Beazley JA
observed in Owners of Strata Plan 58577 v Banmor Development Finance Pty Ltd
[2006] NSWCA 325 at [2], there needs to be a balance. On the one hand, one has
to consider principles of case management and the need for expeditious
resolution of disputes. On the other hand, one has to ensure, so far as possible,
that disputes are resolved so as to provide justice according to law to the parties
to the dispute.
[8] I respectfully adopt what was said by Lord Woolf MR in Daniels v Walker [2000] 1
WLR 1382 at 1387, and also what was said by Neuberger J, as his Lordship then
35 AON Judgment of Gummow, Hayne, Crennan, Kiefel and Bell JJ [94].
36 Ibid.
37 Conias Hotels Pty Ltd v Murphy & Anor [2012] QSC 297.
38 Ibid [12].
39 Ibid [5] [8] (emphasis added).
-- 18 of 26 --
19
was, in Cosgrove v Pattison [2000] All ER (D) 2007. Lord Neuberger's discussion of
the issues is, with respect, illuminating and compelling, and I take it into account in
circumstances in which the rules have as one of their objectives ensuring that a fair
trial is assured, and that it may be necessary for a fair trial to allow a party to call an
additional expert.”
And then later:
“ … The court should only grant leave to adduce further evidence in the circumstances
stated in the rule and if the interests of justice require it.”40
[110] Determination of this present application requires a consideration of the weight to be given to
case management principles and the application of the rules relating to leave being granted to
a party to call a second expert in an area in which another expert has already been engaged
and, in the present case and more particularly, has participated in meetings and the production
of a report with a similar expert engaged by the opposing party.
[111] Determination of the application also, necessarily, devolves to the need to do justice in all of
the circumstances to both parties.
[112] In a NSW Supreme Court decision in 200941 Brereton J observed:
“It would entirely defeat the purpose of the expert conclave process, including the
production of a joint report, to permit one of the parties now to adduce the evidence of a
further expert witness, after the conclave has taken place and after the joint report has
been prepared, to give an opinion contrary to at least some of those agreed to by some of
the experts in the course of the conclave and joint report. The court manages closely the
use of expert evidence. In this case, the purpose of the course of management adopted
would be entirely frustrated if the plaintiff were now permitted to call a further expert
witness who had not been involved in the conclave and the preparation of the joint
report.”42
[113] In the event His Honour rejected the tender of the reports by the additional experts.
[114] It should be noted that, in that case, the second expert proposed to be called had been
involved in drawing up plans which were the subject of litigation and in respect of which the
Judge found that although the expert was undoubtedly qualified and experienced he would
come to the case from the perspective of someone who drew the plans, rather than someone
who was confronted with reviewing and interpreting plans drawn by another which would
change the perspective of particular witness and would prima facie reduce the objectivity and
value of his evidence.43
[115] In the present case regard must necessarily be had to the circumstance that, in assessing
compensation for the presence of a mining lease on people’s property, the Court is confronted
by what has been described in a number of cases as almost a resumption of the area of the
land taken for the purposes of the mining lease for a limited period.44
40 Ibid [10] (emphasis added).
41 Lucantonio v Kleinert [2009] NSWSC 929.
42 Ibid [6].
43 Ibid [4].
44 See Smith v Cameron (1986) 11 QLCR 64 and Joyce v Northern Electric Authority of Queensland (1974) 1
QLCR 171.
-- 19 of 26 --
20
[116] That is the case here. Where a citizen is deprived of his or her land the Courts have laid
down what is often referred to as the “liberal estimate” principle whereby a Court ought err
on the side of generosity in assessing the compensation to be paid to the dispossessed owner.
[117] Although the decision in AON overtakes the earlier decision in JL Holdings nothing I read in
the AON decision can, in my opinion, be taken to have rejected the observations of Kirby J
(as he then was) in the JL Holdings decision where he considered the factors that might tend
to favour the extension of an indulgence to a party applying for it.
[118] In JL Holdings His Honour said:45
“5. Amongst considerations which may tend to favour the extension of an indulgence to
a party applying for it are the following: that this is the only way in which the true
issues and the real merits, factual and legal, can be litigated and artificiality avoided;
that the oversight which occurred is adequately explained as, for example, that it
arose out of sudden and unexpected events; that the proposed amendment is of
considerable importance to the rights of a party, particularly where it provides a
complete answer to a claim; that any fault is that of the party's legal representatives;
that the oversight was wholly accidental; that it was simply the product of
unavoidable human error or, possibly, the outcome of the application to the case of
fresh legal minds who perceived an important new point; that cost orders or the
imposition of other conditions could adequately rebalance the competing claims to
justice; and that the hearing date is sufficiently in the future to permit a party to meet
the amendment, taking into account any consequences for the gathering of fresh
evidence, the conduct of discovery or like pre-trial procedures and the loss of
assigned hearing dates. Departures from a court ordered timetable, whilst relevant,
are not decisive. Such orders are the servants of justice. They are designed to
enhance its achievement in a way that an inflexible application of rigid rules could
prevent. Efficiency in the despatch of court lists can sometimes be purchased at too
high a price, as the biographer of Lord Brougham vividly demonstrated.”
[119] I had the observations of Kirby J in mind when, in the course of submissions I asked Mr
Palmer for the applicants:
“What do you say about – I’m looking at your paragraphs following 32 and, in particular,
at 36 – the fact that the solicitors who engaged Mr Schy are not the solicitors currently
acting for the respondents. And this seems to be a consequence of fresh minds applying
themselves to the issues.”46
to which Mr Palmer replied:
“Well that’s a factual submission made from the bar table, really. I mean, there’s no
evidence about that. The change of solicitors can mean one of – can mean – can go either
way.”47
[120] Mr Palmer referred me, in response to my inclination to the view that there may have been an
explanation in the material filed before the Court that the solicitors most recently engaged by
Mr and Mrs Hood had come to the view that the valuation outcome achieved by Messrs Schy
and Lyons was inappropriate, to paragraph 40 of his outline of submissions in which the
following appears:
“There is, however, material before the Court which suggests that the explanation for
this Application is not that the Respondents passively followed their previous lawyers
45 State of Queensland & Anor v JL Holdings Pty Ltd (1997) 189 CLR 146 per Kirby J, para 5 (emphasis added).
46 T 183 L 14.
47 T 183 L 69.
-- 20 of 26 --
21
[sic] advice but rather that the Respondents after the expert conference the Respondents
[sic] were dissatisfied with Mr Schy's expert opinion. In this regard, the letter of
instruction sent to the Respondents' new valuer, Mr Eales, on 19 January 2015 stated the
following:
Hood's Position
Notwithstanding an expert's duty to the Court, Hood is of the view that the position
of its valuer:
is manifestly inadequate
is wrong
potentially negligent
As such, the valuer engaged by Hood's previous legal advisors must be removed as
an expert and replaced.
To this end, Hood requests that Eales, provide the requested assessment so that a
view can be formed as to the way forward.
41. With due respect to Mr and Mrs Hood, it is not apparent that either of them is
qualified to properly assess the opinion given by Mr Schy. If Mr Schy had
overlooked something, a supplementary report might have been sought. To sack the
existing expert while telling the new expert about your displeasure with the previous
expert smacks of "expert shopping". Expert shopping is not a sufficient reason to
give the leave sought: D v S [2009] QSC 446.”48
[121] Mr Palmer had conceded that such a proposition could be contained within the affidavit of
Venesa Gleeson filed 22 January 2015 which is quoted above in paragraph 21.
[122] Mr Palmer drew the Court’s attention in his submissions (see paragraph 40 of those
submissions quoted above) to the decision in D v S [2009] QSC 446. That was a case in
which Margaret Wilson J dismissed an application for a party for proceedings brought under
Part 19 of the Property Law Act 1974 (Qld) to have leave to rely upon the affidavit of an
expert other than the single expert who had been appointed by a consent order.
[123] The applicant in that case was caught by the provisions of r 429H(6) of the UCPR whereby,
where parties jointly appoint an expert to give evidence on an issue, that expert is the only
expert who may give evidence on the issue unless the Court orders otherwise.
[124] In bringing the application the applicant in D v S relied upon UCPR r 429N(3)(a)(i) asserting
that there was an expert opinion different from the first expert opinion that is or may be
material to deciding the issue.
[125] In refusing the application Margaret Wilson J said:
“Viewed objectively, there is not basis for questioning the impartiality of Mr Stanaway or
the integrity of the instructing and reporting process. Special circumstances have not been
made out.
I am not satisfied that the further opinion of Mr Iveson would be material to deciding the
question of valuation. This is simply a case of the applicant having agreed to a joint
valuation and then not liking the joint valuation she received. It is not necessary to ensure
a fair trial of the proceeding that there be more than one expert on the value of the real
48 Applicant's Submissions paras 40 41.
-- 21 of 26 --
22
estate. To allow the applicant to rely on the evidence of another expert in the
circumstances would unnecessarily increase the costs of the litigation.”49
[126] I note that in that decision Her Honour did not use the term “expert shopping” as attributed by
Mr Palmer in his submissions.
[127] Further, that decision makes clear that the circumstances of each case are relevant to the
determination of whether an additional expert ought be allowed.
[128] Mr Palmer also drew the Court’s attention, in his submissions, to the decision in Gallo v
Department of Environment and Resource Management (No. 2)50 where it was said:
“In the present case no sworn explanation was given by the respondent for the change
from Mr Lait. It was easy enough for the respondent to have put in affidavit evidence
explaining why the change was made. This knowledge lies in its possession and not that
of the court or the other side. In the absence of a sworn (or any) explanation for the
change, a court might be more inclined to find that it was simply expert shopping for a
more favourable opinion. There is no magic in the number of experts required before one
can be said to have expert shopped. A change from only one to one other might be
enough depending on the circumstances.”
[129] In this case, in my view, there is a sworn explanation provided by the solicitors for the
respondents and by the experts Eales and Briese as to why there is desired to be a change in
the identity of experts to be relied upon by the respondent.
[130] That is not to say that I am completely convinced that the application by the respondents does
not evidence some element of expert shopping.
[131] In his submissions Mr Palmer also took issue with the failure by the respondents to seek leave
to file an amended compensation statement pursuant to the practice direction of this Court.
[132] Had it not been for the circumstance that the respondents have now engaged fresh solicitors
that submission may have had some merit although, for the reasons which I will explain
later, perhaps not sufficient merit to override the clear mandate for this Court to attempt to do
justice as between the parties.
[133] Mr Palmer asserts in his written outline of submissions that these proceedings have reached
an advanced stage. Accordingly, he says, it is indistinguishable from the circumstances in the
AON Risk Services decision.
[134] I do not accept that these proceedings have reached an advanced stage.
[135] The only substantive orders made have been for the valuers to meet and attempt to identify
areas of agreement and disagreement.
[136] At a review of this matter on 9 October 2014 an order was made for the applicant to file and
serve an affidavit setting out whether and when it intended to seek amendment of mining
lease ML 10170 by 4pm on 31 October 2014.
[137] That order followed some debate in Court about how the matter ought be moved forward.
49 D v S [2009] QSC 446 page 18.
50 [2014] QLAC 11 [273] (citations omitted).
-- 22 of 26 --
23
[138] Mr Green, the solicitor on record for the applicant, was in a difficult position because at that
time apart from some information from Mr Green and the contents of an affidavit filed by Mr
Beilby there had been no formal attempt by the applicant to seek an amendment of the terms
of the lease so that the basis for any valuation exercise aimed at objectively determining what
compensation should be paid was somewhat constrained.
[139] In compliance with that order an affidavit of Jemma Elizabeth Rigg was filed on 3 November
2014. I note in passing that that affidavit was three days later than required by the order.
[140] Ms Rigg is the tenement manager of the Resolute Group which wholly owns Goudhurst
which in turn wholly owns the applicant Carpentaria Gold Pty Ltd.
[141] Ms Rigg deposed that on 30 October 2014 she had prepared and lodged with the Department
of Natural Resources and Mines an amendment to the applicants application for renewal of
ML 10170 which specifically omitted any reference to the project publicly known as
Sarsfield Expansion.51
[142] Accordingly, it was only after the precise nature of the reason for which the renewal of the
lease was sought was clarified that any sensible assessment of appropriate compensation
could be undertaken.
[143] While there may be no formal pleadings I am satisfied that procedures such as a requirement
on both parties to file and serve a compensation statement produces a result akin to pleadings
which can be reinforced by reference to the UCPR requiring such things as:
a) Responses to compensation statements;
b) Witness statements;
c) Conferences between expert witnesses which result in the production and delivery to
Court of signed agreements setting out areas of agreement and disagreement and the
reasons for any disagreement;
d) Witness statements to be provided prior to the provision of hearing dates.
[144] There is also to be taken into consideration the existence of the LCR.
[145] In addition to that there is the recourse to the UCPR provided for in the Land Court Rules.
[146] In CH4 Pty Ltd v The Minister for Natural Resources, Mines and Energy and Minister for
Trade52 His Honour Member Smith referred to the decision of Member Scott in Chief
Executive, Department of Natural Resources and Mines v. Sabina Three Gorges Corporation
who commented on the rules in these terms:
"These Rules read as a whole, communicate a comprehensive statutory structure which
together with the Uniform Civil Procedure Rules 1999 which complement the Land
Court Rules 2000 create a system for the pre-trial conduct of matters before the Court. In
the case of the respondent's appeals, those Rules were relied upon and orders issued on 16
November 2000 with a view to exposing and narrowing the issues and in ensuring that
neither party would be caught by surprise. This position may be contrasted with the
51 Affidavit of Jemma Elizabeth Rigg para 7.
52 [2010] QLC0037.
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position that obtained prior to the new Rules coming into effect where there were many
occasions when success for one party depended to some extent on its capacity to ambush
the other, the prevailing Rules being quite inadequate with respect to case management.
In the circumstances of the enactment of the new Rules it must be appreciated by parties
coming before the Court that, particularly in instances where parties are represented, the
Court will be astute to utilise the Rules of the Court and to expect the parties to comply
with orders made in reliance on the Rules."53
[147] Those observations were cited with approval by His Honour Member Isdale in Toan Van
Pham & Ors v Brisbane City Council54 in his comments approving my dicta in the Cidneo
case where His Honour observed that:
“This Court is concerned to ensure that its process enhances expedition and efficiency in
dealing with the matter before it.”
[148] In my view the matters set out in foregoing paragraphs clearly demonstrate that while this
Court may not have a formal structure of pleadings as such it has sufficient procedures in
place that one might find that there are “quasi pleadings” underpinning almost every action
conducted in this Court.
[149] Having regard to the orders that are normally made in matters such as the present and in other
matters I have little difficulty coming to the view that this Court maintains a process of case
management as that term has been used and contemplated in decisions like AON and JL
Holdings.
[150] The existence of case management might be seen as the “hand maiden” of the just
administration of matters which come before this Court but it is not an immutable “set in
stone” set of procedures which cannot, in appropriate circumstances, be varied or steered
away from.
[151] Orders frequently made by this Court include disclosure, further and better particulars, filing
of expert witness statements, filing of statements of lay witnesses, conferences between
experts to clarify issues in appeals and orders for further and better particulars. All of those
orders, and others, constitute what I understand by case management setting as they do
particular dates for compliance. There are also various practice directions which direct how
matters which come before this Court will be progressed.
[152] There is also, amongst the forms produced by this Court a Form 17 Request for Trial Date
whereby parties who are ready for trial may prepare and sign a request for a trial date.
[153] In the present case no request for a trial date had been lodged with the Court. That form of
course reflects what is contained within Land Court Rule 34.
Conclusion
[154] In coming to the conclusion in this matter I have had regard to the following factors which I
regard as relevant:
53 (Unreported, Land Court of Queensland, RP Scott Member, 12 April 2001) [16].
54 Toan Van Pham & Ors v Brisbane City Council [2011] QLC 0038, [6].
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1. Granting of a mining lease over an area of freehold or leasehold land is akin to a
resumption of that land for a period.
2. The attitude of the Court to resumption of land in the hands of private individuals is to
take a somewhat benevolent approach to questions of compensation.
3. This matter is not at an advanced stage in terms of preparation for hearing.
4. No application for a trial date has been submitted by either party.
5. On the basis of Mr Eales’ presently unchallenged evidence there is a possibility that a
refusal to allow the calling of additional expert evidence would wreak an injustice
upon the respondents.
6. The overriding principle, as I read all the relevant cases, seems to be to do justice as
between the parties.
7. Costs would seem to be an adequate remedy for the disamenity suffered by the
applicant if leave is granted.
8. The attitude of the current solicitors for the respondents reflects what I regard as the
“application of fresh legal minds perceived an important new point” as that term was
used by Kirby J in JL Holdings.55
[155] I should acknowledge that there are counter-vailing considerations which I have also had to
take into account, not the least of which are the limitations with respect to the evidence of Mr
Eales. In Mr Eales’ report, in which, having regard to the principles identified by Brereton J
in Lucantonio case referred to by me above, the reasons for the difference in opinion
between him and Mr Schy are nowhere made clear in the material and further the basis for the
opinions expressed by the respondents current solicitors are equally unidentifiable.
[156] There is also the failure by the respondent to adduce any evidence from Mr Schy which
makes clear what he did and what he did not take into account in coming to his agreed view
with the opposing valuer as to the appropriate amount of compensation.
[157] For the reasons set out above I have come to the view that leave should be granted to the
respondent to adduce further expert evidence.
[158] However, that is not an open-ended invitation to adduce enormous amounts of additional
expert evidence.
[159] In the material filed by the respondents they make clear reference to only three areas of
expertise which seem to underpin their application.
[160] Those areas of expertise are:
a) The valuation evidence proposed to be adduced from Mr Eales.
b) The hydrogeologist evidence proposed to be called from Mr Briese; and
c) The forensic veterinary evidence proposed to be called by Mr Rendell.
55 State of Queensland & Anor v JL Holdings Pty Ltd (1997) 189 CLR 146.
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[161] No leave is granted for the respondent to call any other expert witnesses.
[162] I have already observed above that some of the evidence proposed to be called by the
respondents may expose them to applications for costs orders at the conclusion of the hearing
of this matter.
[163] Accordingly, the ORDERS which I propose are:
1. The application is allowed.
2. The respondent is granted leave to adduce further evidence from three
additional expert witnesses namely the valuer Mr Geoffrey William Eales, the
hydrogeologist Errol Haydn Briese and the veterinary consultant Dr David
Keith Rendell.
[164] The application as filed included seeking an order that the respondent pay the applicant’s
costs “thrown away of the production of the joint report to be agreed, or if not agreed, to be
assessed.”
[165] I will hear from the parties with respect to the issue of costs and in particular:
a) The ambit of any cost order which should be made including identifying work
which may have been done which will now be rendered nugatory; and
b) Whether any costs orders which may be made should be in a standard or some
other basis.
[166] I will also hear the parties with respect to what additional orders should now be made to bring
this matter to a point where it is ready for the parties to file and request for a trial date.
WL COCHRANE
MEMBER OF THE LAND COURT
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Official source: https://www.sclqld.org.au/caselaw/QLC/2015/036