The NSW Court of Appeal has now shed light upon a dark corner of the Commonwealth Constitution, which is that only a court of a State can hear disputes between residents of different States.
You may think that this is a purely academic question, but it's not the case if you are a Queensland resident who owns a residential rental property in NSW, according to the court.
You may want to evict a tenant for non-payment of rent, or claim a rental bond for the cost of cleaning and repair of damage when the tenant moves out. Up until now, you made an application in the NSW Tenancy Tribunal (NCAT), which provides quick and cheap eviction orders and payment orders.
But NCAT is not a court - it is a tribunal which sits outside of the formal court structure.
This is where the Commonwealth Constitution comes into play. According to the decision of the NSW Court of Appeal, interstate landlords cannot obtain orders under the Residential Tenancies Act (NSW) from NCAT because it is not a "court of a State". They must use the slow and expensive Local Court or District Court of NSW instead.
This decision could have ramifications for interstate landlords throughout Australia. But for now, interstate landlords who own property in Queensland are protected by a decision of the Supreme Court of Queensland.
For more details, click on my case note: