NIRODA HOLDINGS PTY LTD -v- DBNGP (WA) NOMINEES PTY LTD [2026] WASC 349
[2026] WASC 349
Page 1
JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
IN CIVIL
CITATION : NIRODA HOLDINGS PTY LTD -v- DBNGP (WA)
NOMINEES PTY LTD [2026] WASC 349
CORAM : COBBY J
HEARD : 6 MAY 2026
DELIVERED : 21 AUGUST 2026
FILE NO/S : CIV 1161 of 2026
BETWEEN : NIRODA HOLDINGS PTY LTD
Plaintiff
AND
DBNGP (WA) NOMINEES PTY LTD
First Defendant
DBNGP (WA) TRANSMISSION PTY LTD
Second Defendant
Catchwords:
Practice and procedure - Application for pre-action discovery pursuant to
O 26A r 4 of the Rules of the Supreme Court 1971 (WA) - Potential causes of
action against first defendant for misleading and deceptive conduct and
unconscionable conduct - Whether discretion to order discovery should be
exercised - Turns on own facts
Legislation:
Australian Consumer Law s 18, s 20, s 21
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[2026] WASC 349
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Rules of Supreme Court 1971 (WA) O 26A r 4
Result:
Application dismissed
Category: B
Representation:
Counsel:
Plaintiff : JC Yeldon
First Defendant : P Honey
Second Defendant : P Honey
Solicitors:
Plaintiff : GLF Law
First Defendant : Corrs Chambers Westgarth
Second Defendant : Corrs Chambers Westgarth
Case(s) referred to in decision(s):
Campomar Sociedad, Limitada v Nike International Ltd [2000] HCA 12;
(2000) 202 CLR 45
Morton v Nylex Ltd [2007] NSWSC 562
New South Wales Solicitors Mutual Indemnity Fund v Hancock Family
Memorial Foundation Ltd (No 2) [2009] WASCA 146
Niroda Holdings Pty Ltd and Western Australian Planning Commission
[2017] WASAT 57
Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd [1982] HCA 44;
(1982) 149 CLR 191
Scanlon v 2-4 McCabe Pty Ltd [2023] WASCA 135
Yorke v Lucas [1985] HCA 65; (1985) 158 CLR 661
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COBBY J:
1 By originating motion filed 9 February 2026, the applicant
(Niroda) seeks 'preliminary discovery of all documents and things that
are or have been in the respondents' possession that may assist [Niroda]
in making the decision to commence proceedings against the
respondents within the meaning of O 26A r 4 of the Rules of the
Supreme Court 1971 (WA)'.
2 In the alternative, Niroda seeks that the respondents discover the
following categories of documents:
2.1 [A]ll documents in the possession, custody or control of the
Respondent (or a list of documents that were, but are not now in
the custody, possession of control of the Respondent) relating in
any way to or touching upon:
(a) Original Construction Schematics of the Dampier to
Bunbury Pipeline (the pipeline) that were utilised in the
construction of the pipeline in the vicinity of 1801
Lakes Road, Dandalup, WA, 6207 on or the estimated
lifespan of the pipeline at that location at the time of
construction.
(b) The consideration given by the Respondent to the
Applicant's Development Approval obtained 9
December 2014, and the refusal of its consent, and the
giving of its consent to the condition number 11 of the
said Development Approval.
(c) Documentation related to any improvements or
upgrades to the pipeline over its lifespan in the vicinity
of 1801 Lakes Road, Dandalup, WA, 6207 in the
consideration or planning of the Respondent prior to the
Applicant's Development Approval obtained
9 December 2014.
(d) Any documentation or information pertaining to the
process undertaken in tendering for the upgrade
required for the pipeline at 1801 Lakes Road,
Dandalup, WA, 6207.
(e) Any documentation relating to DBP's change in
interpretation of the exclusion zone as referred to in
Planning Bulletin 87.
(f) Documents relevant to the Pipeline Risk Management
Plan created by KCTT in response to Planning
Bulletin 87 was not supported by the Respondent.
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(g) Any communication that the Respondent had with the
WA State Government related to the pipeline on the
property located at 1801 Lakes Road, Dandalup,
WA, 6207.
2.2 All correspondence pertaining to:
(a) Any documentation related to delays in connection with
construction of the upgraded pipeline including but not
limited to how and why they were caused and any
impact on the final cost.
(b) Provide an estimation of the new, extended life of the
upgraded pipeline, including projections of future
savings from the extended lifetime, to ascertain the
financial benefit, the Respondent would obtain at the
claimant's expense.
3 For the reasons which follow, I am not satisfied that Niroda has
not been able to obtain sufficient information to enable a decision to be
made as to whether to commence proceedings, with the consequence
that the application must be dismissed.
4 The principles applicable to an application pursuant to O 26A r 4
were summarised by the Court of Appeal in Scanlon v 2-4 McCabe Pty
Ltd [2023] WASCA 135 [47] - [51]. I adopt those principles without
repeating them here.
5 In particular, however:
(a) an applicant must show some tangible backing or objective
foundation that takes the existence of the potential cause of
action the applicant seeks to investigate beyond a mere
allegation, suspicion or assertion that the facts necessary to give
rise to a right of relief may be able to be established; and
(b) the power in O 26A r 4(4) is confined to requiring discovery of
documents that may assist the applicant in making the decision
whether to commence the proceedings in question, such that
only those documents actually relevant to a cause of action
which the applicant may have should be the subject of the
discovery order; and
(c) pre-action discovery cannot be used to build or strengthen a
case an applicant has already decided to bring: Morton v Nylex
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Ltd [2007] NSWSC 562 [33] and the authorities there
identified.
6 The background to Niroda's application is as follows.
7 By an agreement made 27 November 2013, Niroda purchased the
land known as 1801 Lakes Road, North Dandalup for the purposes of
subdividing and developing that land for a new housing estate.
That agreement was conditional upon Niroda's plan of subdivision
being approved within 9 months of the parties' entry into the agreement.
8 The land is bisected by the Dampier to Bunbury natural gas
pipeline (DBNGP). The DBNGP comprises two individual pipelines,
the main line and the loop line, contained within a 50m wide corridor.
9 The first respondent (DBP) owns and operates the pipeline.
The second respondent is described as the pipeline operator.
10 In early December 2014, Niroda applied to the Western Australian
Planning Commission (WAPC) for subdivision approval in relation to
the land.
11 Niroda proposed that the land be divided into 102 proposed lots,
with areas of between 1 to 3 hectares. Twenty-two lots abutted the
pipeline corridor.
12 By letter dated 5 January 2015 the WAPC provided copies of the
plans and documentation relating to the proposal to DBP, and asked
that DBP provide any information, comment or proposed conditions
pertinent to the application.
13 DBP responded to that request by letter dated 5 February 2015 to
the WAPC, in which DBP relevantly said:
DBP in principle supports the subdivision proposal however; we wish
to provide the following comments on the submission because the
proposal as presented has the possibility of affecting the integrity and
operation of the gas pipelines.
Proposed Lots 1- 8 and 32 -102
DBP has no objections to the proposed eastern lots 1- 8 and 32 - 102 as
they will not be directly impacted by the DBNGP.
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Proposed Lots 9 - 31
• Prior to the commencement of any works associated with the
subdivision approval, a comprehensive Qualitative Risk
Assessment is required to identify all technical concerns arising
from the subdivision proposal i.e. road crossings, services
crossing etc. The Qualitative Risk Assessment and all the
necessary mitigation measures that are identified in the Risk
Assessment will be at the cost of the developer.
…
• The existing pipeline depth of cover must be maintained and
there shall be no excavation/cutting works permitted In the
DBNGP corridor.
• Building and development envelopes should be set to recognise
the restrictions on the land by virtue of the presence of the
DBNGP corridor and the appropriate setback distances
contained in Planning Bulletin 87 should be strictly adhered to.
(emphasis added)
14 Importantly, that letter was not provided to Niroda. Niroda
subsequently obtained a copy of it by means of a freedom of
information application.
15 On 10 March 2015, the WAPC granted approval for the
subdivision of the land, subject to various conditions. Condition 11 was
as follows:
Prior to the commencement of subdivisional works, the
landowner/applicant shall prepare and implement as part of the
subdivisional works a pipeline risk management/protection plan in
accordance with Planning Bulletin 87 High Pressure Gas Transmission
Pipelines in the Perth Metropolitan Region. (DBNGP (WA) Nominees
Pty Ltd)
16 In that approval, the WAPC nominated DBP as the body
responsible for providing written advice to the WAPC that condition 11
had been fulfilled. Niroda was also advised that Niroda was responsible
for obtaining that advice, which was to be submitted to the WAPC
together with (amongst other things) a copy of the deposited plan with
confirmation that the plan had been submitted to Landgate.
17 Niroda claims that it waived the condition in the agreement to
purchase the land that it obtain approval of its plan of subdivision from
the WAPC on the basis of the conditional approval.
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18 Planning Bulletin 87 states that one of its purposes is to reduce
potential risk arising from the rupture of pipelines during adjacent
construction work. It expressly states that potential mitigation measures
to manage risks to acceptable levels include increasing the wall
thickness of the pipeline.
19 The Planning Bulletin states, in part:
The pipeline owner is required to operate and maintain the pipeline
consistent with the requirements of their pipeline licence, regulated by
DoIR. This involves the assessment and management of risk consistent
with the requirements of AS2885, which should establish that the level
of risk should be low, negligible or as low as reasonably practicable,
and that the level of individual fatality risk meets the relevant
EPA criteria.
The process for preparing a pipeline risk management plan is:
a) The applicant should contact the pipeline owner as early as
possible regarding the scope of the risk management plan and
need for an AS2885 qualitative risk assessment and/or
qualitative risk assessment of the subject proposal or
application, and potential risk mitigation measures to facilitate
development within the setback area. The pipeline owner and
the applicant should reach agreement at this stage on an
appropriately qualified consultant to undertake the risk
assessment, the process, information to be supplied by the
pipeline owner and outcomes required to facilitate and ensure a
comprehensive risk assessment in a timely manner.
b) The responsibility to prepare the risk management plan and
undertake the risk assessment lies with the applicant.
c) The pipeline owner will provide the consultant with the
information and access to relevant data necessary to complete
the risk management plan and risk assessment.
d) The risk assessment will determine which (combination) of the
selected mitigation measures will reduce the level of risk to low,
negligible or as low as reasonably practicable to meet the
relevant EPA individual fatality risk criteria. The findings of the
risk assessment and the selected mitigation measures should be
presented in a clear, precise and unambiguously worded report.
e) The applicant should discuss the recommendations of the report
and risk assessment with the pipeline owner and document the
agreed mitigation measures and their area of application in the
risk management plan, which should not be open to differing
interpretations. As a minimum the plan should document:
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• the mitigation measures;
• the timing and responsibility for the installation of the
mitigation measures;
• any ongoing management measures;
• the cost of implementing the mitigation measures, both
initial costs of construction and ongoing maintenance cost;
and
• responsibility for these costs.
f) Following endorsement by the pipeline owner the applicant
should then forward the risk management plan as part of the
planning proposal to the relevant planning authority.
20 Niroda engaged a consulting firm known as KCTT to prepare a
pipeline risk management plan. KCTT produced a report dated
5 August 2015. There is no evidence to suggest that Niroda
communicated with the defendants regarding the appointment of
KCTT, as suggested by the Planning Bulletin, nor is there any evidence
to suggest that KCTT communicated with the defendants in the course
of preparing the KCTT report.
21 On 2 November 2015, a risk assessment workshop meeting
coordinated by a firm known as Pipeline Integrity was held to discuss
what measures might be required in order to ensure the DBNGP
remained sufficiently safe in light of the subdivision. Representatives
of Niroda, DBP and KCTT attended that workshop.
22 Australian Standard AS2885 identifies four primary location
classes within which a pipeline route may be located, being:
Rural (R1) Land used for rural activities where
population is generally distributed in
isolated dwellings
Rural (R2) Land used for 'Rural Residential' or
equivalent purposes
Residential (T1) Land that is developed for community
living, where multiple dwellings exist in
proximity to each other and dwellings
are served by common public utilities
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High Density (T2) Land developed for high density
community use
23 A report prepared by Pipeline Integrity recorded that a location
classification review was performed for the relevant section of the
DBNGP as part of the meeting, the result of which was that the area
abutting the 22 proposed lots should be reclassified as R2.
24 DBP disputed that it agreed with that reclassification, or that the
classification of the area should determine the steps required to ensure
that the risks to safety be as low as reasonably practicable.
25 In any event, by letter dated 5 February 2016 DBP informed
Niroda that:
At the time of the construction of the DBNGP and during each
expansion, an assessment is undertaken to ascertain the forecast land
usage within each locality of the DBNGP to determine the design
conditions appropriate for that locality. That assessment involves
reviewing publicly available information and discussions with relevant
government agencies. The purpose of doing this is because:
• The licence granted to DBP by the WA Government under the
Petroleum Pipelines Act 1969 (WA) (PPA) to own, operate and
expand the DBNGP requires DBP to comply with relevant
standards relating to high pressure gas transmission pipelines;
• One of these standards is Australian Standard AS2885 (Gas and
Liquid Petroleum) (AS2885); and
• AS2885 requires the pipeline to be designed to certain levels
depending on the type of land usage to be experienced on the
land traversed by the pipeline. These design levels have been
assessed as required to ensure that all risks are reduced to the
standard of "as low as reasonably practicable" (ALARP).
As a result of information available at the time of the construction of
the DBNGP in the locality of the North Dandalup Proposed
Subdivision, the mainline and loop line were designed for a rural land
usage class, known as R1 (being rural areas that are generally
unpopulated or feature occasional, isolated residences), under AS2885.
As a result, AS2885 requires pipelines traversing land within this R1
location class to have a certain wall thickness, be buried to a certain
depth of cover and to meet certain other design conditions.
Should there be a change in land use over and in the vicinity of the
DBNGP over time, AS2885 requires assessment by DBP to ensure the
risks presented by the change in land use are managed appropriately in
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the design and mode of operation of the pipeline to the standard of
ALARP.
The Proposed Subdivision will involve a change in land use that
requires a re-assessment of the appropriateness of the design and
operation of the DBNGP to ensure all risks are managed to the ALARP
standard. DBP has consulted with the Western Australian Planning
Commission as part of the grant of the WAPC Approval.
…
As part of Condition 11, on Monday 2 November 2015 a risk
assessment workshop was held with relevant parties, including
representatives from each of Niroda and DBP, to identify all new and
existing risks materialising due to the significant changes to land use
arising from the Proposed Subdivision.
DBP has subsequently analysed changes to the design and mode of
operation of the DBNGP that would need to be made to ensure that all
risks resulting from the change in land usage that will arise, should the
Proposed Subdivision proceed, are managed to the standard of ALARP.
These changes are intended to then form part of the pipeline risk
management/protection plan that the landowner/applicant is required to
prepare and implement to comply with Condition 11.
…
The increase in population density caused by the Proposed Subdivision
creates a significant change in land use over and in the immediate
vicinity of the DBNGP pipeline corridor which, without changes to the
design and mode of operation of the DBNGP, consequently imposes a
significant change to the risk profile of the DBNGP such that the risks
are not being managed to the standard of ALARP.
…
DBP has investigated all possible mitigation measures available for
implementation to ensure that all risks are managed to the standard of
ALARP.
DBP has assessed the appropriate location class of the DBNGP as a
result of the proposed subdivision and analysed the design basis,
capacity and operating conditions of the DBNGP, the measurement
length of any potential catastrophic failure and the potential number of
fatalities arising from any such failure. DBP advises that one of the
following measures will need to be implemented in order to ensure that
all risks are managed to the standard of ALARP, thereby ensuring DBP
can meet its obligations under the PPA, Safety Case and appropriate
standards. They will also need to be included in the pipeline risk
management/protection plan that the landowner/applicant is required to
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prepare and implement as is required by Condition 11
(Implementation Measures):
(a) The following works be undertaken in respect of the pipeline:
• The replacement of that part of both the existing mainline
pipe and loop line pipe within the area covered by the
Proposed Subdivision between Readheads Road and Lakes
Road and for a distance of 680m along the pipeline
corridor on either side of those roads (being pipe that is
designed to allow the R1 (rural) land usage class) with
heavy-wall pipe designed to allow the T1 (residential) land
usage class (T1 Pipe Replacement); and
• The burying of the T1 Pipe Replacement to the same depth
of cover in the pipeline corridor as the current pipework;
or
(b) The increase in the size of the lots forming part of the Proposed
Subdivision to bring the combined societal risk within
acceptable levels, such that each lot overlapping with the
DBNGP pipeline corridor is no less than 680m x 680m (46.24
ha) in size.
In accordance with the WAPC Approval, the execution of the
Implementation Measures is at the cost of Niroda.
26 By the same letter, DBP informed Niroda that DBP was in the
process of finalising a submission to the Economic Regulatory
Authority to obtain approval for DBP recovering the costs of replacing
the relevant section of the DBNGP directly from its customers, which
would reduce or negate the costs to Niroda if the submission was
successful.
27 Niroda contends that, by that letter, DBP changed its position
from:
(a) that stated in its letter to the WAPC dated 5 February 2015
(which was not provided directly to Niroda);
(b) what was stated in the KCTT report; and
(c) what is said had been agreed at the meeting on 2 November
2015 regarding the reclassification of the land.
28 In my opinion, the contention that DBP had approved lots 9 to 31
of the proposed subdivision on anything other than an 'in principle'
basis, subject to considering an appropriate risk assessment, is not
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arguable. The terms of DBP's letter to the WAPC dated 5 February
2015 are not capable of being construed in the manner Niroda asserts.
29 It should also be borne in mind that Niroda had not, at that stage,
seen that letter. Niroda knew no more of DBP's position than that
Niroda was required to satisfy condition 11, a condition imposed by
the WAPC.
30 Nor can it reasonably be said that DBP was obliged to accept the
report prepared by KCTT without demur, if for no other reason than it
had not been prepared in accordance with Planning Bulletin 87.
31 As to the third point, assuming for present purposes that it had
been agreed on 2 November 2015 that the land should be reclassified as
R2, DBP informed Niroda that it had changed its position on that matter
by the letter dated 5 February 2016. As Niroda had not yet obtained
DBP's advice that it had complied with condition 11, it is difficult to
see what consequence arose from DBP having changed its position in
that way, if that is what occurred.
32 On 29 March 2016, Niroda's agent wrote to DBP requesting that it
acknowledge that condition 11 had been met.
33 On 7 April 2016, DBP responded stating that it was not satisfied
that was the case and advised that it was DBP's position that the part of
the pipeline which traversed the land needed to be upgraded from an
R1 (rural pipe) to a T1 (urban pipe) specification.
34 The significance of the distinction is that a pipeline meeting the
T1 specification is required to have thicker walls. In the present case, if
the DBNGP was to meet the T1 specification along the corridor which
abutted proposed lots 9 to 31 the existing pipelines required
replacement along the whole of the length of those lots.
35 It appears that in June 2016, Niroda lodged a survey plan seeking
endorsement of the stage one of the subdivision, which the WAPC
declined on the ground that condition 11 was unlikely to be satisfied.
36 Niroda sought review of that decision by the State Administrative
Tribunal in July 2016.
37 The evidence of Mr Casella, a director of Niroda, is that in
December 2016 the State Solicitor's Office suggested that
'the Department' (presumably the WAPC) commission an independent
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expert to review 'certain matters related to Niroda's subdivision', and
that Niroda agreed to that suggestion.
38 As a result, a consulting firm identified as 'Logicamms' issued a
report dated 17 March 2017. That report was critical of steps taken by
each of Niroda and DBP in the assessment of the risks presented by the
development and recommended that the assessment process
'be revisited with proper scrutiny of all current and future threats
presented by the Development'.
39 Relevantly, the Logicamms report stated that, in the opinion of
its authors:
(a) the assessment process conducted by Niroda deviated 'from the
intent of AS2885 and has contributed to disagreement with'
DBP;
(b) a safety management study (also known as a pipeline risk
assessment) is mandated by AS2885 when land use changes
occur within the vicinity of the pipeline;
(c) where there are identified risks to the general public it is the
licensee's obligation (here DBP) to demonstrate ALARP
regardless of the location class;
(d) DBP's assessment of the likelihood of failure appeared to
overstate the likelihood associated with an event that 'actually
results in catastrophic loss of life', which led DBP to require the
pipeline be replaced, 'contrary to industry practice for similar
pipeline encroachment situations in Australia';
(e) DBP had been rightly cautious, the proposed development
representing the first time a development would encroach upon
a standard wall 'rural grade' section of the DBNGP;
(f) the 'measurement length' (used to assess risk consequence
distances from a pipeline) calculated in accordance with
AS2885 was 550m from the main pipeline and 680m from the
loop pipeline;
(g) assuming the proposed development had been undertaken, and
the pipeline newly proposed, the location class would be
nominated as T1 rather than R2;
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(h) for an existing pipeline, whether the development was classified
as R2 or T1 'could be moot point as the specific risks to the
pipeline are still present and must be managed';
(i) it was impossible to review the Pipeline Integrity report
regarding the 2 November 2015 meeting because it did not
provide any commentary as to the basis for the risk assessments
made;
(j) it would be inappropriate to consider the proposed development
as analogous to the existing R2 areas adjoining the DBNGP, so
that DBP should review its safety case in the context of a
properly constituted safety management study workshop;
(k) where a new development considered T1 encroaches on an
existing pipeline that is not considered to be 'Non-Rupture pipe'
(such as the existing DBNGP in the relevant area here), the
following protective methods were usually considered:
(i) concrete slabbing of the pipeline adjacent to the
development and up to the measurement length either
side of the development using the standard slab design
recommended by the pipeline owner;
(ii) the installation of conduits at road crossings to
accommodate possible future utility expansion;
(iii) the use of side slabbing of the pipeline at road crossings;
and
(iv) the application of side slabbing for the length of the
encroachment, including the measurement length;
(l) those methods might be suitable in the present case, in lieu of
the full replacement of both the main and loop pipelines.
40 Contrary to the position adopted by Niroda, the Logicamms report
did not establish that the replacement of the DBNGP was not required.
The effect of the report was no more than that there might be other
steps available to reduce the risks to the ALARP level, but that
assessment was yet to be made and should take place in the context of a
new safety management study workshop.
41 For reasons not explained in the evidence, the new safety
management study workshop Logicamms recommended did not occur.
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42 Instead, Niroda appears to have proceeded with the 2016
application to the Tribunal. That application was dismissed in April
2017 because the Tribunal lacked jurisdiction to consider it, Niroda
having failed to submit a diagram or plan or survey as required by s 145
of the Planning and Development Act 2005 (WA): Niroda Holdings
Pty Ltd and Western Australian Planning Commission
[2017] WASAT 57 [12] - [48].
43 At some point not identified in the evidence, Niroda lodged
another application to have the WAPC endorse its plan for subdivision
of the land, and in 2018 commenced further proceedings in the Tribunal
for review of the WAPC's refusal to do so on the basis that condition 11
had not been satisfied.
44 On 1 July 2020 the Tribunal dismissed that application, finding
that neither the 2015 KCTT report nor a report of the results of a safety
management workshop conducted by Delphi Risk Management
Consulting in January 2019, which was not in evidence before me,
comprised a pipeline risk management plan prepared in accordance
with Planning Bulletin 87.
45 Niroda's application to the Tribunal having been dismissed, in
February 2022 Niroda entered into an agreement with respondents
styled the 'Heavy Wall Pipe Replacement Company Funded
Construction Agreement' (the HWPR Agreement) whereby Niroda
agreed to pay DBP to replace the relevant section of the DBNGP, and a
licence agreement with DBP styled the 'Licence Agreement DBNGP
Upgrade-North Dandalup' whereby Niroda agreed to grant DBP a
licence to enter upon the area adjacent to the corridor containing the
DBNGP for the purposes of the construction of the replacement
pipeline.
46 In that context, Niroda asserts that it 'reasonably believes' that it
may have two causes of action against DBP.
47 The first is said to be a claim for unconscionable conduct contrary
to either s 20 or s 21 of the Australian Consumer Law (ACL).
The second is said to be a claim for damages for misleading and
deceptive conduct, contrary to s 18 of the ACL.
48 It is convenient to deal with the claim of misleading and deceptive
conduct first.
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49 Niroda identifies three misleading representations alleged to arise
from DBP's conduct:
(a) that there existed a zone of influence of 660 metres from the
pipeline easement within which DBP would not support
planning applications envisaging higher density or change of
land use classification under AS2885;
(b) DBP agreed to the R2 land classification at the 2 November
2015 workshop; and
(c) DBP represented to Niroda that the pipeline upgrade was
required as a condition of compliance with condition 11 and
Planning Bulletin 87.
50 On the basis of the evidence before me there are likely to be
considerable obstacles to the success of each of those claims, but it is
unnecessary to consider their respective merits for the purposes of
determining the present application.
51 Preliminary discovery is not available where the applicant has
sufficient information to determine whether to institute proceedings.
Sufficient information means no more than that which is reasonably
necessary to enable the person to decide whether to commence or take
proceedings: New South Wales Solicitors Mutual Indemnity Fund v
Hancock Family Memorial Foundation Ltd (No 2) [2009]
WASCA 146 [15].
52 Whether a person has sufficient information to decide whether to
commence proceedings is an objective standard but determined by
reference to the knowledge and circumstances of Niroda: New South
Wales Solicitors Mutual Indemnity Fund v Hancock Family
Memorial Foundation Ltd (No 2) [14].
53 In the present case, the representations are either recorded in
writing or made in the presence of Mr Casella. It accordingly does not
require further evidence of the making of the representations, and
evidence of its reliance upon any of them must be available to it.
54 As for the question whether any of the representations were
misleading and deceptive, Niroda contends that the KCTT report, the
report of the meeting held on 2 November 2015 and the Logicamms
report all support its position that DBP's conduct should be
characterised as such.
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55 If that view is correct, as to which I express no opinion, then
Niroda is already in possession of sufficient information to determine
whether to commence proceedings. It has evidence of the making of the
representations, evidence as to why it says each representation was
misleading and deceptive, and is to be taken to know the extent of any
loss or damage it has suffered by any reliance it placed on that conduct.
56 The reasons why DBP made the representations Niroda has
identified are not relevant to the question whether those statements
were misleading and deceptive. All that is relevant is whether,
considered objectively, the conduct was misleading or deceptive or
likely to mislead or deceive: Parkdale Custom Built Furniture Pty Ltd
v Puxu Pty Ltd [1982] HCA 44; (1982) 149 CLR 191, 197; Yorke v
Lucas [1985] HCA 65; (1985) 158 CLR 661, 666; although a finding
of intent to deceive may lead a court to more readily infer that the
intention has been or will be effective: Campomar Sociedad, Limitada
v Nike International Ltd [2000] HCA 12; (2000) 202 CLR 45 [33].
57 Finally in this regard, it is to be noted that Niroda did not
specifically seek discovery of DBP's ability to meet any award
against it.
58 I am therefore not satisfied that Niroda requires pre-action
discovery to determine whether it should institute proceedings in
relation to the identified claims of misleading and deceptive conduct.
59 As to the identified claims of unconscionable conduct, those
claims are ultimately founded on the proposition that the terms of
Planning Bulletin 87, the KCTT report, DBP's alleged agreement to the
R2 classification of the land at the 2 November 2015 meeting and the
Logicamms report support the conclusion that adequate risk mitigation
was achievable without the need to replace the pipeline. Niroda
contends, in effect, that DBP adopted the position it did in order to
achieve 'the commercial objective of having Niroda fund an upgrade
DBP would otherwise have been obliged to fund itself'.
60 To the extent that the truth of that allegation may be inferred from
the alleged inconsistency between the position adopted by DBP and the
four sources of information identified, as to which I express no
concluded view, Niroda has sufficient information to determine
whether to commence proceedings, it not having been suggested that
Niroda requires the documents sought by the application in order to
obtain further expert evidence to support the identified claim.
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61 To the extent that the allegation is founded upon Mr Casella's
expressed belief to the effect that was DBP's motivation for acting as it
did, it would appear contrary to portions of the Logicamms report and
to comprise no more than assertion, conjecture or speculation on
his part.
62 Although Niroda submitted that each category of documents
sought bears a direct and rational connection to the central factual
question in any substantive proceedings, namely 'whether DBP's
insistence on Niroda funding the pipeline upgrade was commercially
motivated or genuinely safety-driven', and that that question could only
be resolved by reference to documents exclusively within the
respondents' custody, that is not the case. If that allegation is not
supported by the four 'independent technical assessments' identified by
Niroda (noting that it is unlikely that Planning Bulletin 87 can be
properly characterised as such), then the allegation that DBP acted for
the purpose alleged by Niroda does not rise above assertion, conjecture
or speculation on its part.
63 Although it is true that DBP unsuccessfully sought approval from
the ERA to recover the costs of upgrading the DBNGP from its
customers, on the evidence it did so in circumstances where Niroda
sought to develop the adjoining land and, if DBP's application was
unsuccessful, Niroda was responsible for meeting the costs of
compliance with condition 11. There is no evidence to suggest that the
DBNGP would have required an upgrade, or for that matter, any
significant maintenance at DBP's cost in the immediate or any longer
term had it not been for Niroda's application to change the use of the
land adjoining the DBNGP.
64 A further reason why the discovery sought by Niroda is not
required by it is that, on Mr Casella's evidence, Niroda had already
determined to institute the proceedings prior to making the present
application.
65 On 8 January 2016 Niroda commenced proceedings to set aside a
statutory demand issued by DBP in respect of a debt of $274,068.07.
66 Mr Casella deposed in his affidavit sworn 8 January 2026 in
support of those proceedings that Niroda intended to make an
application for pre-action discovery and attached a copy of his then
unsworn affidavit to be filed in support of that application, which he
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came to swear in substantially identical terms on 9 February 2026 in
these proceedings.
67 In his 8 January 2026 affidavit, Mr Casella further deposed that:
The [HWPR Agreement and the Licence Agreement DBNGP Upgrade
– North Dandalup] recorded the outcome of what Niroda will say was
an unconscionable application of commercial pressure applied on
Niroda by [DBP] and others alternatively misleading or deceptive
behaviour in respect of [DBP's] approval for Niroda's planning
application over its Dandalup development. Niroda intends to seek an
order to either set aside the HWPR Agreement, and/or seek [DBP] and
another recompense it for its' expenditure under the HWPR Agreement
on the basis that DBP and another failed to exercise its approval
reasonably, but in giving approval, they acted in an unconscionable
alternatively misleading or deceptive way. Niroda says it was forced to
enter the HWPR Agreement to proceed with its planning application.
…
Additionally, Niroda will seek orders setting aside the HWPR
Agreement in its entirety on the grounds that it was: (a) Procured by
unconscionable conduct contrary to the Australian Consumer Law. (b)
Procured by misleading or deceptive conduct contrary to sections 18
and 21 of the Australian Consumer Law. (c) Entered into under
economic duress. (d) Procured by [DBP's] failure to exercise its
approval rights reasonably and in good faith.
It will be alleged that [DBP's] conduct in maintaining an untenable
position contrary to all expert evidence, for the commercial purpose of
obtaining a pipeline upgrade at our client's expense, constitutes
unconscionable conduct within the meaning of the Australian Consumer
Law.
68 It was submitted for Niroda in these proceedings that, because
Mr Casella's affidavit was filed in the proceedings to set aside a
statutory demand, 'it would be contrary to principle to treat the
threshold assertion of an offsetting claim as equivalent to the informed
decision to litigate that substantive proceedings require'. It was further
submitted that Mr Casella's evidence, being based on Mr Casella's
personal knowledge of the external dealings between Niroda and DBP -
the letters received, the positions asserted, the agreements entered into',
could not 'reflect, and cannot substitute for, knowledge of the matters
exclusively within DBP's internal records'.
69 I reject both submissions. There was no equivocation in relation
to nor any qualification of Mr Casella's evidence in the statutory
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demand proceedings, which on a fair reading demonstrated that the
decision to commence proceedings had been made by 8 January 2026.
Further, Mr Casella's evidence in the statutory demand proceedings is
consistent with the conclusions that I have reached in respect of both of
the causes of action identified by Niroda, namely that Niroda was in
possession of sufficient information to determine whether it wished to
pursue both causes of action prior to the commencement of the present
application.
70 A plaintiff is not entitled to preliminary discovery unless he or she
lacks some information reasonably necessary to make the decision
whether to institute proceedings. Preliminary discovery cannot be used
to strengthen a case which Niroda has already determined to bring.
71 In the present case, Niroda is aware, from DBP's letters dated
5 February 2016 and 7 April 2016 and DBP's participation in the
workshop leading to the preparation of the Logicamms report (at the
least), of DBP's stated reasons for not accepting Niroda's claims that the
upgrade of the DBNGP was unnecessary. In circumstances where
Niroda claims that position could not reasonably be justified, and
Mr Casella has already determined that Niroda will institute
proceedings, documents going to show that DBP did not genuinely hold
its stated position are not necessary to allow Niroda to make a decision
to pursue the identified causes of action.
72 I am therefore not satisfied that Niroda has established that the
discovery of any of the classes of documents it seeks, or the wider
discovery sought by [1] of the motion, is necessary to enable it to make
a decision whether to institute proceedings, assuming that, contrary to
Mr Casella's evidence, it has not already done so.
73 The application must therefore be dismissed. I will hear counsel
as to costs.
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I certify that the preceding paragraph(s) comprise the reasons for decision of
the Supreme Court of Western Australia.
RH
Associate to the Hon Justice Cobby
24 AUGUST 2026
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