Campaigntrack Victoria Pty Ltd v The Chief Executive, Department of Justice and Attorney-General [2014] QCAT 703
CITATION: Campaigntrack Victoria Pty Ltd v The Chief
Executive, Department of Justice and Attorney-
General [2014] QCAT 703
PARTIES: Campaigntrack Victoria Pty Ltd
(Applicant)
v
The Chief Executive, Department of Justice and
Attorney-General
(Respondent)
APPLICATION NUMBER: GAR351-12
MATTER TYPE: General administrative review matters
HEARING DATE: On the Papers
HEARD AT: Brisbane
DECISION OF: Member Paratz
DELIVERED ON: 23 July 2014
DELIVERED AT: Brisbane
ORDERS MADE: 1. The time limit for Campaigntrack Victoria
Pty Ltd to file an Application pursuant to
s 473(5)(b) of the Property Agents and
Motor Dealers Act 2000 is extended to
15 October 2012 pursuant to s 61 of the
Queensland Civil and Administrative
Tribunal Act 2009.
2. Galacoast Pty Ltd (Externally
Administered) and Mr Gary William
Gannon are added as Respondents to the
Application by Campaigntrack Victoria
Pty Ltd to extend the time within which to
claim against the Claim Fund filed on
15 October 2012.
3. The claim against the Claim Fund lodged
with the Chief Executive of the
Department of Justice and Attorney
General on 22 December 2011 by
Campaigntrack Victoria Pty Ltd is
referred back to the Chief Executive for
the purposes of ss 474 to 477 of the
Property Agents and Motor Dealers Act
2000.
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CATCHWORDS: Where a claim was lodged against the claim
fund under the Property Agents and Motor
Dealers Act 2000 – where an application to
extend time outside the 14 day period – whether
the Tribunal has power to extend the time to file
an application to extend time under the Property
Agents and Motor Dealers Act 2000 – whether
the Tribunal has power to join respondents –
whether the Chief Executive Department of
Justice is a proper respondent on an application
to extend time under the Property Agents and
Motor Dealers Act 2000 – whether a claim was
brought within time under the Property Agents
and Motor Dealers Act 2000
Property Agents and Motor Dealers Act 2000
(Qld), s 473(5), s 511, s 512
Queensland Civil and Administrative Tribunal
Act 2009 (Qld), s 42, s 61
The Chief Executive, Department of Justice and
Attorney General v Crampton Automotive Pty
Ltd t/a Toowoomba Holden & Ors [2014]
QCATA 020
Hambleton v The Chief Executive, Department
of Justice and Attorney-General & Anor [2014]
QCAT 064
Ryton-Benson v Contrabart Management Pty
Ltd [2009] CCT PE001-09
Queensland Building Services Authority v
Russell Ian Watkins [2013] QDC 198
APPEARANCES and REPRESENTATION (if any):
This matter was heard and determined on the papers pursuant to s 32 of the
Queensland Civil and Administrative Tribunal Act 2009 (Qld) (QCAT Act).
REASONS FOR DECISION
[1] Campaigntrack Victoria Pty Ltd (‘Campaigntrack’) operate a business
through which they arrange to book and organise advertisements for Real
Estate Agents in print media publications. They want to claim for payment
on the fund set up under the Property Agents and Motor Dealers Act 2000
(Qld) (‘the Act’).
[2] Galacoast Pty Ltd (‘Galacoast’) operated two separate Real Estate
Agencies on the Gold Coast known as Ray White Broadbeach and Ray
White Mermaid Beach. Gary William Gannon was the principal of the
agencies and a Director of Galacoast Pty Ltd.
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[3] Between 30 September 2010 and 11 December 2010, advertisements
were booked and placed by Galacoast through Campaigntrack who issued
invoices for those advertising costs.
[4] On December 2010, Receivers and Managers were appointed to
Galacoast.
[5] On 14 February 2011 a demand for payment was issued to Galacoast by
Campaigntrack.
[6] Campaigntrack, through its Solicitor, completed a PAMD Form 50 dated
22 December 2011, for an amount of $329,995.00, which was sent to the
Office of Fair Trading and received by that office on 3 January 2012. The
responsible person for the Office is the Chief Executive Department of
Justice and Attorney-General (‘the Chief Executive’).
[7] The Office of Fair Trading by a letter dated 19 September 2012 said that
the claim had been assessed as being outside the time limit as it was
lodged more than one year after Campaigntrack became aware of its
financial loss. The letter attached a PAMD Form 52 (Out of Time Notice)
pursuant to s 473(5) of the Property Agents and Motor Dealers Act 2000
(Qld) (‘PAMD Act’).
[8] Campaigntrack filed an “Application to review a decision” in the Tribunal
on 15 October 2012. The applicant sought two alternate outcomes, either:
(a) A review of the decision that the claim was out of time, or
(b) An order extending the time to make the claim.
[9] The respondent named on the application was the decision-maker,
Mr Luke Skinner of the Office of Fair Trading. The Registry of the Tribunal
treated the naming of the respondent as being the responsible person,
who is the Chief Executive Department of Justice and Attorney-General.
[10] Directions were made by the Tribunal on 8 November 2012. Those
directions required:
(a) the filing by the Chief Executive of its statement of reasons and any
document or thing in its possession or control that may be relevant to
a review of the decision by 7 December 2012;
(b) the filing by Campaigntrack of any statements of evidence by
14 January 2013;
(c) the giving of any statements of evidence in reply by the Chief
Executive by 15 February 2013.
The parties were given leave to be legally represented in the proceedings.
[11] The Chief Executive filed Submissions on 7 December 2012 and
Campaigntrack filed Submissions on 10 January 2013.
[12] Directions were made on 27 February 2013 that:
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(a) Campaigntrack and the Chief Executive were to file further
submissions on jurisdiction and extension of time;
(b) the matters of jurisdiction and extension of time would be determined
by a member of the Tribunal on the papers, by written submissions
from the parties, and without an oral hearing.
[13] Campaigntrack filed Further Submissions on 11 March 2013, and the
Chief Executive filed Submissions in Reply on 14 March 2013.
[14] Further Directions were made on 13 June 2013 , that to assist the Tribunal
to determine the matters of jurisdiction and extension of time, the parties
were each to provide submissions on the following issues:
1. Is the Application filed by the Applicant made
(a) for a claim, or
(b) for a review of a decision of the Chief Executive
having regard to Section 511(1)(a) of the Property Agents and Motor
Dealers Act 2000 (the alternates) ?
2. Is the Chief Executive, Department of Justice and Attorney-General
(the Chief Executive) the proper Respondent to the application in each
alternate?
3. If the Chief Executive is not the proper respondent, does the Tribunal
have power to substitute, or add, Galacoast Pty Ltd (Externally
Administered) and Mr Gary William Gannon, as Respondents to the
Application in each alternate?
[15] Submissions were received from Campaigntrack on 22 July 2013, and
from the Chief Executive on 18 July 2013.
[16] Subsequently, the Chief Executive filed a further submission on
6 September 2013 drawing the attention of the Tribunal to the decision in
Ryton-Benson v Contrabart Management Pty Ltd & Ors.1
[17] Further directions were then issued on 20 September 2013 that both
parties were to provide submissions to the Tribunal, with a copy to the
other, on the following legal issues:
1. The effect of the decision of Ryton-Benson v Contrabart Management
Pty Ltd [2009] CCT PE001-09 on the considerations in this matter.
2. The effect of the decision of Queensland Building Services Authority v
Russell Ian Watkins (District Court, Brisbane 5 September 2013,
D5092/11, and in particular paragraph 20, on the considerations in
this matter.
3. In light of QBSA v Watkins does the Tribunal have power to extend
time in this matter under s 61(2) of the QCAT Act, notwithstanding the
provisions of s 511 of the PAMD Act? By 4:00pm on 18 October 2013
4. Each party may file a Submission in Response to these submissions
of the other, with a copy to the other By 4:00pm on 18 November
2013
1 [2009] CCT PE001-09.
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5. A decision on the papers will be made after determination of the
Appeal in Mr Gary John Smeeton v Department of Justice and
Attorney-General OCR059-13, which will be decided after the decision
in Mr David Hambleton as joint and several liquidator of Sky 5 Pty Ltd
v Department of Justice and Attorney-General GAR343-13 (which is
set for hearing on 29 November 2013) is received; as those two cases
concern similar questions of law.
[18] Submissions were received from Campaigntrack and from the Chief
Executive on 18 October 2013. The decisions in the Appeal in Smeeton
(which is later referred to here as Crampton Automotive); and in
Hambleton were handed down by Judicial Members of the Tribunal in
2014.
[19] There are a number of issues to be determined. Essentially, procedural
questions have arisen in this matter because an application has been
brought for review (when it perhaps should have been for an extension of
time); against the Chief Executive (but not also against, or instead against,
the Real Estate Agency and its principal); as to whether the claim and
application has been brought too late; and as to whether the Tribunal has
the power to make orders in these situations. It is necessary to work
through all these questions.
[20] These matters are all pursuant to the Act, which is a specific Queensland
Act. The Act itself is not an easy Act to follow in its concepts and
processes. The Act has recently been overtaken by a group of separate
Acts, and it remains to be seen if the procedural difficulties that many
claimants have encountered, have been overcome.
[21] The Act is set up in a way that allows the Chief Executive to make an
assessment, using its own reasoning processes, as to whether a claim
against the Claim Fund has been brought within time. If the Chief
Executive decides that the claim is out of time, it issues a Form 52 “Claim
out of Time Notice”. That Notice names certain people as respondents,
usually the Real Estate Agency and its executive officers.
[22] The Form 52 and accompanying letter advises claimants that they can
make application to the Tribunal to extend time. Neither the Form, or the
accompanying letter, however, state that the Application to the Tribunal
should only be brought as an “Application to extend Time” and that the
persons named on the Form 52 should be named as the respondents to
the Application.
[23] The consequence is that many claimants who have disagreed with the
assessment by the Chief Executive of the relevant dates, have proceeded
to file an Application to Review against the Chief Executive. Those
applications have repeatedly been met with a response by the Chief
Executive that the Application has been brought in the wrong way against
the wrong respondent, and that it is then too late to bring alternate
proceedings; and that the Tribunal has no jurisdiction to remedy that by
altering the names of the respondents or by extending time to bring an
application to extend claim. That has happened in this matter.
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[24] This is a technical process that many claimants have found difficult, and
see as bureaucratic and unfair, and putting procedural hurdles in the way
of what they see as their pursuing their just claim.
[25] It is entirely understandable that a claimant would assume that an
assessment made by the Chief Executive that a claim is out of time, is a
decision, that could and should, be “reviewed”. It is also entirely
understandable that that the claimant would think that on a “review” the
correct respondent is the decision-maker, who would seem to be the Chief
Executive.
[26] The Act however was arguably not set up that way. The Act provided for
the Chief Executive to refer major claims to the Tribunal, and for the
Tribunal to decide them. That has now been changed with the new Acts.
[27] A difficulty arises with an extension of time claim, as the Chief Executive
rightly points out in these matters, that the Real Estate Agency and the
Principals have an interest in the outcome, and should have an
opportunity to make submissions as to any prejudice they may suffer by
an extension of time being granted.
[28] These difficulties have come before the Tribunal in various combinations
in previous matters. The Tribunal has sought to determine these matters
having regard to its duties in a Review to “produce the correct and
preferable decision”,2 and in all proceedings to “act fairly and according to
the substantial merits of the case”.3 They have given rise to the decisions
in Crampton Automotive Pty Ltd4 and Hambleton,5 however the position is
still unclear.
[29] One approach has been to treat the decision of the Chief Executive that a
claim was out of time, as a decision that is open to review, and the proper
respondent would be the Chief Executive. That approach was disapproved
of by Judicial Member Dodds in Crampton Automotive.
[30] An alternate approach has been to name as respondents all of the real
estate agency and its principals, as well as the Chief Executive, so that all
of these parties appear at Directions Hearings, and receive Directions.
That approach was approved of by Judicial Member Brabazon in
Hambleton.
[31] The Chief Executive however, has regularly opposed its being named as a
respondent in this way. It argues that it can make submissions under the
provisions of the Act, so there is no need for it to be a formal party, and
routinely requests the Tribunal to send it copies of directions and orders so
that it may be appraised of developments as they occur. This is an attempt
2 QCAT Act, s 20(1).
3 Ibid, s 28(2).
4 The Chief Executive, Department of Justice and Attorney General v Crampton
Automotive Pty Ltd t/a Toowoomba Holden & Ors [2014] QCATA 020.
5 Hambleton v The Chief Executive, Department of Justice and Attorney-General & Anor
[2014] QCAT 064.
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to put some efficiency into what is an awkward and confusing process, but
it has an artificiality about it.
[32] The basic difficulties lie in the confusing and somewhat convoluted
processes of the Act. Whatever motivations impelled the drawing of the
Act in this way, which may relate to apportionment of responsibility
between the Chief Executive and the Tribunal, the result is difficult, and it
is left to claimants, the Chief Executive and the Tribunal to make their way
through the Act in the best possible way.
[33] I will now address each of the procedural questions in this matter.
The nature of the Application
[34] The application has been drawn as having two alternate bases – either as
a Review of a Decision, or as an Extension of Time. The Tribunal does
have two separate Forms in respect of these types of applications. Form
23 is an “Application to review a decision”. Form 42 is an “Application to
extend or shorten a time limit or for waiver of compliance with procedural
requirement”. This application was brought on Form 23.
[35] The first issue is whether this is properly an application for a review of a
decision of the Chief Executive (determining that the claim was made out
of time); or an application to extend the time to make a claim.
[36] Dodds J sitting as a Judicial Member of the Tribunal noted in Crampton
Automotive:
[16] The determination about an extension of time was entirely within the
discretion of the tribunal guided only by the terms of section 511(1)(b)
of PAMDA. It was not a review of the Chief Executive’s decision in
which the Chief Executive had an interest in being heard.
…
[19] This historical practice may well have been what prompted the tribunal
in this matter to describe the application before it as “effectively a
review of the decision of the Chief Executive”. But the matter before
the tribunal was in truth an application to extend time. In the cases
from the past mentioned and in the present case, in addressing the
matters in section 511(1)(b) PAMDA, the evidence before the tribunal
appears to have led the tribunal to a view there was no need to
extend time.
[20] Because the tribunal came to the view that there was no need to
extend time, that does not convert what was an application to extend
time, which was within the jurisdiction of the tribunal, into a review of
the correctness of the Chief Executive’s decision, a matter the tribunal
had no jurisdiction to decide.
[37] Therefore, even though it may seem that the assessment of the Chief
Executive that a claim is out of time is a decision which should be
reviewable, in the context of this Act it is not treated as such.
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[38] Consequently, the “Application to Review” of Campaigntrack is
misfounded. However, the alternate application for an extension of time to
the Tribunal is appropriate.
[39] An application to extend Time should be brought on a Form 42. Can an
Application to extend Time be brought in the Tribunal on a Form 23? The
processes of the Tribunal are very flexible. The Act provides that the
Tribunal:6
(d) must act with as little formality and technicality and with as much
speed as the requirements of this Act, an enabling Act or the rules
and a proper consideration of the matters before the tribunal permit
[40] It is not unknown for applicants to matters in the Tribunal to use an
incorrect Form. It obviously assists the efficient handling of matters in the
Tribunal if they are properly described and filed at the outset, but the
paramount consideration must always remain the doing of justice to the
parties, rather than strict adherence to procedure.
[41] The Chief Executive submits that this matter is more in the nature of an
alternate claim by one commercial operator against another, rather than a
claim by an aggrieved consumer against a Real Estate Agent, which was
the intent of the setting up of the Fund:
33. The Chief Executive submits that the Claim Fund is designed to be a
consumer protection mechanism and not merely a safety net for a
commercial enterprise in a civil dispute with a licensee.
…
36. In these circumstances, it does not appear that the justice of the
matter requires that the Applicant be now given an extension of time
in order to pursue the claim. The chief executive submits that that any
action for the recovery of monies allegedly owed to the Applicant
should be commenced against Galacoast under insolvency provisions
contained in the Corporations Act 1966 (Cth) and not via the Claim
fund.
[42] If Campaigntrack is able to bring itself properly within the provisions of the
Act as a claimant, then the Act must be applied equally to it as to any
other claimant. I do not consider that it is open to the Tribunal to treat
Campaigntrack differently as a claimant, simply based upon the nature of
its relationship with the Real Estate Agency.
[43] It is obviously in the interests of justice that a claimant should be able to
pursue its claim as far as possible within the provisions of the Act and the
procedures of the Tribunal.
[44] I therefore consider that the procedures of the Tribunal are flexible
enough, and it is appropriate, that the alternate claim for an Extension of
Time should be considered as the principal Application, and can be
accepted as having been filed in the Tribunal on 15 October 2012,
6 QCAT Act s 29(3)(d).
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notwithstanding that it was not made on the usual Form, and the Tribunal
can then go on to assess that Application.
The Respondents to the Extension of Time Application
[45] The next question that arises then, is that given that the application for an
extension of time was made on 15 October 2012, was it brought against
the correct respondent and can alternate or additional respondents now be
added or substituted?
[46] The only current respondent to the Application to extend Time is the Chief
Executive. It is clearly necessary that the Real Estate Agency and its
principals should be respondents on such an application, as the Act
requires that on an application to extend time the Tribunal must have
regard to the “the relative hardship that an extension of time or a refusal to
extend time would place on the claimant or respondent”.7
[47] Does the Tribunal have the ability to add Galacoast Pty Ltd (Externally
Administered) and Mr Gary William Gannon as respondents, and should
the Chief Executive be maintained as a respondent?
[48] Brabazon J. in Hambleton found that the Chief Executive is a proper
respondent to a claim under the Act:
[11] It is submitted here that the Chief Executive has never been a proper
party to this proceeding.
[12] It is hard to see how that submission could be accepted. Section 512
itself says that the Chief Executive may be a party to a proceeding. A
controversial claim against the fund could properly have the Chief
Executive as a party to it.
[13] In my opinion, the Chief Executive is a proper respondent to this
application.
[49] The advantage of not removing the Chief Executive as a respondent is
that it keeps the application alive, even if some challenge were to be made
to the ex-parte joining of the new respondents by them at a later date
(perhaps due to some misdescription or other fault). If the Chief Executive,
who is the sole respondent, is simply removed, then there would be no
remaining party, and the application may become a nullity. If the Chief
Executive is retained as a respondent, then the application remains on
foot, regardless of any other procedural defect that may have occurred, or
could occur.
[50] The mere fact that the Chief Executive is named as a respondent does not
mean that any order will ultimately be made against the Chief Executive.
Indeed, the order that would be made on a successful Application to
extend Time is simply an Order that the time be extended to the date of
the filing of the application, and the matter is then referred to the Chief
Executive for processing in accordance with s 474 to s 477 of the Act.
7 Section 511(1)(b)(ii).
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[51] It is difficult to see what detriment is caused to the Chief Executive simply
by its involvement being formalised as a party, given that:
(a) the Chief Executive seeks routinely to be kept informed of
proceedings of the Tribunal, and that
(b) it is able to make submissions at any time, and
(c) routinely attends Directions Hearings in applications of this type, and
(d) would be allowed to appear on any oral hearing of such an
application, and
(e) no Order is to be made against the Chief Executive.
[52] Balanced against this is the enormous detriment that would be suffered by
the claimant if the Application were allowed to lapse into a nullity. The
justice of the situation clearly demands that the involvement of the Chief
Executive be continued, and the viability of the proceedings be
maintained.
[53] The Tribunal has power under s 42 of the QCAT Act to join parties. That
section provides:
(1) The tribunal may make an order joining a person as a party to a
proceeding if the tribunal considers that –
(a) the person should be bound by or have the benefit of a decision
of the tribunal in the proceeding; or
(b) the person’s interests may be affected by the proceeding; or
(c) for another reason, it is desirable that the person be joined as a
party to the proceeding.
(2) The tribunal may make an order under subsection (1) on the
application of a person or on its own initiative.
[54] The interest of the real estate agency and its principal are clearly affected
by a claim against the fund, as any amount paid out may be recovered
from them. It is therefore appropriate to join them as respondents.
[55] I consider that the appropriate course, in the circumstances, is to retain
the Chief Executive as a respondent, and to add the real Estate Agency
and its principal as additional respondents.
Jurisdiction to entertain application to extend time
[56] The Notice out of Time is dated 19 September 2012. The Chief Executive
submits it would have been received about two days later. An application
to extend time must be lodged with QCAT within 14 days of receiving the
Notice, under s 473(5) of the Act.
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[57] The application was filed on 15 October 2012. That is about twenty-four
days after the notice was received. The Application was therefore lodged
about ten days out of time.
[58] Does the Tribunal have jurisdiction to extend the time for filing of the
Application to extend time by those ten days?
[59] The Chief Executive has submitted that:8
The Chief Executive notes that the PAMD Form 52 “Claim out of Time” was
received by the Applicant on or about 21 September 2012. The Chief
Executive submits that the Applicant was required to lodge an extension of
time application by 5 October 2012. The Chief Executive notes the
applicant has failed to do this. In the circumstances there is no power to
consider an application to extend time.
[60] It has referred the Tribunal to the decision in Ryton-Benson. In that case
the claimant was assessed as having lodged their claim out of time, and
lodged an application to extend time outside the 14 day period in s 473 of
the Act. The Commercial and Consumer Tribunal held that:
25. The provisions of section 511 are quite clear. The Tribunal does not
have power to extend the time in which to file a claim against the
claim fund unless the application for an extension is made within the
14 days mentioned in the notice. The 14 day period is specified in
section 473(5) of the Act, which simply provides that “a person may
apply to the Tribunal within 14 days after being given the notice”.
…
28. In the application for an extension, the applicant seeks an additional
order that the application “be deemed to have been made within the
14 day period”. The Tribunal does not have any power under its own
or the other empowering Acts to make an order of that kind, so as to
deem an application made on 27 January 2009 to have been made on
or before 31 December 2008.
29. This is not the first case in which an applicant has been deprived of an
opportunity to make a claim against the claim fund because of the
operation of the time limits contained in section 511 of the Act.
However deserving or otherwise a claimant might be, it remains the
case that the tribunal is unable to assist this applicant by extending
the time because of the absence of power to do so.
[61] That case was a decision of a former Tribunal. The operation of this
Tribunal is however governed by a different Act, the Queensland Civil and
Administrative Tribunal Act 2009 (‘the QCAT Act’).
[62] The Tribunal has a general power under s 61 of the QCAT Act to extend a
time limit set by an enabling Act. The question then arises whether this
Tribunal can extend the 14 day period in s 473(5) under s 61.
[63] The Chief Executive submits that s 52 of the Act governing the former
Tribunal, the Commercial and Consumer Tribunal Act 2003, contained the
8 Submission dated 7 December 2012 at [14].
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same broad discretionary extension of time provisions that are now
contained in s 61 of the QCAT Act. However, no reference to that power is
made in the decision in Ryton-Benson, and it cannot be assumed that the
then applicable s 52 was considered, or was applicable.
[64] The question of extension of time generally by the Tribunal was
considered in Queensland Building Services Authority v Russell Ian
Watkins.9 Dorney QC, DCJ held that:
[20] Additionally, unlike some other considerations in this area, s 61, apart
from its title reference to ‘procedural’ requirements, does not internally
refer to any limitation such as being subject to a contrary intention
appearing in affecting legislation, either being the same or overlapping
legislation. Section 61(2) of the QCAT Act on its literal reading permits
such an extension even if the time for complying has passed. Even if s
61(1)(a) were to be inapplicable by reason of s 86(2)(c) – for example,
on its “proper” interpretation, not being characterised as “a time limit
fixed for the start of a proceeding – s 61(1)(b) is applicable as the 28
days is a “time limit fixed by .. an enabling Act”. A potential test of the
applicability of s 61(1) is to postulate the outcome if an application
were to have been made to QCAT before the 28 days set out in s
86(2)(c) of QBSA Act had expired, particularly under s 61(1)(b). It is
certainly open to conclude that, reading the provisions together, it
would not of itself offend the overall scheme if an extension were to be
applied for prior to the expiry of that 28 days.
[65] I requested the parties to make submissions having regard to those
decisions, and as to whether the tribunal has power to extend time in this
matter under s 61(2) of the QCAT Act, notwithstanding the provisions of
s 511 of the Act.
[66] Campaigntrack in its submission10 argued that the Tribunal has the power
to extend time for the filing of a claim pursuant to the provisions of s 61 of
the QCAT Act, and that Ryton lends no assistance in resolving that issue.
[67] It further submitted that:
15. QBSA v Watkins is authority for the proposition that section 61 of the
QCAT Act gives the Tribunal the power to extend the time for an
applicant to file an application outside of the time permitted in section
86(2)(c) of the QBSA Act, despite that section stating that the tribunal
“must not” review such a decision.
16. Given that the wording of section 86(2)(c) of the QBSA Act is more
restrictive than section 511 of the PAMDA, and the fact that section
511 of the PAMDA does not place a limitation on the Tribunal in
extending time, it is the applicants submissions that the tribunal does
have power to extend time in the matter under section 61(2) of the
QCAT Act and should apply QBSA v Watkins in the current matter
and extend the time in which the applicant is to file its application, if
such an order is necessary in the circumstances.
9 [2013] QDC 198.
10 Applicants submissions 18 October 2013 at [7].
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[68] The Chief Executive makes contrary submissions. It submits that:11
5. The respondent notes that ss 473 and 511 of the PAMD Act govern
the procedural requirements, including time limitations, for an
application to extend time within which to lodge a claim against the
fund. The respondent submits that pursuant to ss 6 and 7 of the
QCAT Act the PAMD provisions are given priority over the generic
provisions contained in s61 of the QCAT Act.
[69] It further submits that Watkins should be distinguished as follows:
24. The Respondent submits that the decision of Watkins is
distinguishable from the current matter before the Tribunal, as there
was no overlap between the QCAT Act and the QBSA Act in relation
to extension of time provisions. As a result the District Court did not
examine the effect modifying provisions have on the QCAT Act. The
respondent submits that it is the application of these modifying
provisions which render s61 of the QCAT Act inapplicable in this
matter.
[70] As Ryton-Benson did not consider the application of an equivalent section
to the current s 61 of the QCAT Act, I do not consider that it is
determinative in relation to the jurisdiction of this Tribunal. Watkins on the
other hand squarely considered the ability of this Tribunal to extend time
under s 61. Watkins is also a decision of the District Court, whereas
Ryton-Benson was a decision of a single Member of the former Tribunal. I
therefore consider that the views expressed in Watkins are more
persuasive and to be preferred.
[71] The Chief Executive submits that s 7(2) of the QCAT Act provides that a
modifying provision of an enabling Act prevails over the provisions of the
QCAT Act, to the extent of any inconsistency between them.
[72] The Act is an enabling Act. The time provision in s 473(5)(b) provides that:
the person may apply to the tribunal, within 14 days after being given the
notice, for an extension of time within which to make the claim
[73] Section 61 of the QCAT Act provides that:
(1) The tribunal may, by order –
(a) extend a time limit fixed for the start of a proceeding by this Act
or an enabling Act; or
(b) extend or shorten a time limit fixed by this Act, an enabling Act
or the rules; or
(c) waive compliance with another procedural requirement under
this Act, an enabling Act or the rules.
(2) An extension or waiver may be given under subsection (1) even if the
time for complying with the relevant requirement has passed.
11 Respondents submissions 18 October 2013 at [5].
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[74] The plain wording of s 61 suggests that the Tribunal may allow a claimant
to apply to extend the time within which to make a claim, even though the
period of 14 days to do so has passed. There is no inconsistency in
s 473(5)(b) of the Act as to the Tribunal doing so, and no prohibition as to
it doing so.
[75] I therefore consider that a similar situation arises in relation to this Act as
to the QBSA Act provisions which were considered in Watkins, and that
the tribunal does have jurisdiction to allow an application for extension of
time to be made outside the 14 day period.
Should an extension of time to bring the Application be granted?
[76] The Chief Executive has submitted that Campaigntrack have not shown
any reasons for not filing the application within 14 days.
[77] Campaigntrack did not “sit on its hands” in the period between when it
would have received the Notice out of Time on about 21 September 2012,
and the date it filed its application on 15 October 2012.
[78] In that period, Ms McLean deposes that she sent a fax on 25 September
2012 to the Office of Fair Trading indicating her belief that the PAMD Form
50 was actually lodged within the time required, and requesting that the
notice be withdrawn.12 The Office of Fair Trading sent her a reply dated
27 September 2012 advising that the Notice would not be withdrawn.
[79] A relevant time period is therefore the time between when the letter from
the Office of Fair Trading dated 27 September 2012 would actually have
been received by Ms McLean, and the date of filing of the application,
which may have been within, or close to 14 days. There has therefore
been no significant delay, or a lack of attention by Campaigntrack.
[80] I do not consider that any detriment has been shown to the Chief
Executive by the delay of 10 days. However, if the effect of a refusal to
extend time is to deny Campaigntrack the opportunity to make a claim for
about $330k (or so much as it may claim), then it would suffer obvious and
very significant detriment.
[81] I therefore consider that the delay has not been substantial, has been
satisfactorily explained, and that it is in the interests of justice that the
extension of 10 days should be granted.
[82] I extend the time for the filing of the application to extend time to
15 October 2012.
Was the Claim brought within time?
[83] The Chief Executive noted on the “Claim out of Time Notice” that:
(a) the claim was received on 3 January 2012; that
12 Affidavit Karen McLean filed 11 January 2013 at [50].
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(b) the date the event alleged to give rise to the claim happened on
2 October 2010; and that
(c) the date that Campaigntrack became aware that it suffered
financial loss because of the happening of the alleged event
was 3 December 2010.
[84] It therefore concluded that the claim was out of time because it was
lodged more than one year after Campaigntrack became aware of its
financial loss.
[85] Campaigntrack disagrees with these asserted dates. The date of
awareness of financial loss was shown on the Form 50 Claim Form as
February 2011. In the Application it argues that the date was 11 August
2011. Campaigntrack says that this means that on either date the Claim
was lodged within one year after it became aware of its loss, and was
therefore lodged within time.
[86] The Chief Executive has had regard to the commercial dealings between
Campaigntrack and the real estate agency. It notes that Campaigntrack
entered into a Deed of Acknowledgement of Debt with Galacoast on
31 July 2009. It argues as to the effect of that deed:13
19. The Chief Executive notes that the Deed covers a prior debt and
future business dealings and stipulates that Galacoast had 30 days
from the end of the month in which to settle any issued invoice under
the terms of their continued trade. The Deed further stipulates that if a
payment is not received or the company was placed into
administration Galacoast would be in default of the deed.
20. The Chief Executive submits that given the alleged events relied upon
by the applicant the date of awareness of financial loss would have
occurred between 3 November 2010, being the date Galacoast failed
to pay the invoice within the agreed time frame and the date
Galacoast was placed into administration, being 21 December 2010.
21. Further, any event allegedly occurring after 21 December 2010 would
be a result of a breach by the receiver and as such is not claimable
from the Claim Fund.
[87] On this reasoning of the Chief Executive, the date of awareness of the
financial loss may have been as late as 21 December 2010, which would
mean that the Claim was lodged about two weeks late, but over a period
encompassing several holidays (Christmas and Boxing Day, and New
Years Day).
[88] Campaigntrack argue that this determination of the date of awareness by
the Chief Executive is incorrect and subjective, and is contrary to, and
ignores the facts. It responds to the effect of non-payment of invoices, and
as to the appointment of a receiver, as follows:14
13 Submissions of the Chief Executive dated 7 December 2012.
14 Application filed 15 October 2012, Part C details.
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3.7 The applicant’s position is that a person does not suffer financial loss
or become aware of financial loss when a licensee neglects to pay an
invoice by so much as one day, which appears to be the decision-
makers position. Non-payment of invoices, or even slow payment of
invoices, is a commercial reality that does not equate to financial loss
or knowledge of the same as those invoices can be paid at a later
date for any number of reasons.
3.8 Financial loss only occurs when an invoice will not, or cannot, be paid
and a person can only become aware that financial loss has been
suffered when he or she becomes aware that an invoice will not or
cannot be paid.
…
3.2 While it is true that a Receiver and Manager was appointed to the
offending licencee on or about 23 December 2010, that Receiver and
Manager has no claim to any amounts held in a trust account and that
appointment has no effect on the awareness of the applicant that it
had suffered financial loss due to the happening of an event
mentioned in section 470(1).
[89] In the Application, Campaigntrack argue that it did not gain access to the
licensee’s books and records until 11 August 2011, and that was the
earliest date they were aware of the event, being the breaches of use of
the trust account. It argues it could not have been aware of that event at
any time between November 2010 and February 2011.
[90] The date of financial loss is a matter that frequently arises in claims
against the fund. It is an issue that often arises in claims against motor
dealers. The question there frequently arises as to when the loss occurs
where a vehicle is under finance – there may be a number of possible
dates, which may include the date of a letter of demand from a financier,
or actual repossession of the motor vehicle.
[91] Similarly in this case, the mere non-payment of an invoice may not
constitute financial loss. There is a good argument that the financial loss
will not crystallise, and the claimant not be aware, until such time as the
real estate agent has refused to or failed to make payment after demand.
Until that time there may be an entitlement to claim for moneys, but not
necessarily any loss.
[92] The appointment of a receiver and manager would not necessarily
crystallise a loss. A creditor retains all its rights in administration in respect
of a provable debt. Whether the administrator is able to liquidate the
assets of the company and pay out the creditors fully is a matter that may
not emerge for some time. It is conceivable that a company may be
insolvent in the sense of being unable to pay its debts as they fall due, but
may be able, upon liquidation of its assets, to pay all of its creditors.
[93] The mere appointment of a receiver and manager therefore would not, on
its own, be an event that establishes financial loss.
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[94] I am therefore not satisfied that the date of awareness of financial loss
was 3 December 2010, or 21 December 2010, as assessed by the Chief
Executive.
[95] I am not however persuaded that the relevant date is 11 August 2011, the
date that Campaigntrack established there was a breach of the Act, as
alleged by it. That date is discrete to the date of financial loss.
[96] To my mind, the date of awareness of financial loss would most likely be
the date upon which the Receiver and Manager advised Campaigntrack
that it would not be fully paid out on its claim. That is the date when there
was an awareness of financial loss.
[97] The Solicitor for Campaigntrack has deposed15 that a demand for payment
of moneys owed by Galacoast to her client was issued on 14 February
2011. On 22 February 2011 she wrote to the receivers and managers
providing a copy of the demand. On or about 7 March 2011 she received a
response from the Receivers and Managers requesting further
information.
[98] The Receiver and Manager, G R Killer of Grant Thornton, wrote in his
letter of 7 March 2011 that:
Based on the records of GPM (Galacoast Property Management Pty Ltd)
and GC (Galacoast Pty Ltd), I dispute that your client is owed any money in
relation to GPM
[99] That letter sought further information as to any agreements between
Campaigntrack and Galacoast Pty Ltd. It did not dispute that any monies
were owed by Galacoast Pty Ltd to Campaigntrack. It is clear then, that
financial loss as against Galacoast Pty Ltd had not been established as
late as 7 March 2011.
[100] Accordingly, even without establishing a precise date of financial
awareness of loss, it is apparent that the claim which was filed on
3 January 2012, was well within the twelve month period provided for by
the Act.
[101] I therefore do not consider that an extension of time is required.
[102] I propose to adopt the procedure utilised by Dodds J in Crampton
Automotive and will refer the claim back to the Chief Executive for the
purposes of processing pursuant to s 474 to s 477 of the Act.
[103] For the purposes of procedural clarity as to my having determined the
application against proper respondents, I will formally add Galacoast and
Mr Gannon as respondents. As I have found that the claim was brought
within time, the question of hardship against them under s 511(1)(b) will
not arise. As no further steps are therefore required in the Application, and
15 Affidavit Karen McLean filed 11 January 2013.
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no submissions are required from them, there will therefore be no need to
serve them with any material.
Orders
[104] I order that:
1. The time limit for Campaigntrack Victoria Pty Ltd to file an Application
pursuant to s 473(5)(b) of the Property Agents and Motor Dealers Act
2000 is extended to 15 October 2012 pursuant to s 61 of the
Queensland Civil and Administrative Tribunal Act 2009.
2. Galacoast Pty Ltd (Externally Administered) and Mr Gary William
Gannon are added as respondents to the Application by
Campaigntrack Victoria Pty Ltd to extend the time within which to
claim against the Claim Fund filed on 15 October 2012.
3. The claim against the Claim Fund lodged with the Chief Executive of
the Department of Justice and Attorney General on 22 December
2011 by Campaigntrack Victoria Pty Ltd is referred back to the Chief
Executive for the purposes of ss 474 to 477 of the Property Agents
and Motor Dealers Act 2000.
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Official source: https://www.sclqld.org.au/caselaw/QCAT/2014/703