Inglis, Kathleen Isobel v. Moore, Andrew Leslie & Ors [1979] FCA 64
Federal Court of Australia
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CATCHWORDS
Costs - Commonwealth employees being sued personally
represented by Commonweaith Crown Solicitor - Whether
costs recoverable against unsuccessful plaintiff.
Constitutional law - Commonwealth powers ~- Validity of
provision vesting discretion in Crown Solicitor to
act as a solicitor - Limits of discretion - Extent
of appropriate Commonwealth interests.
The Constitution; Judiciary Act 1903 ss.55E, 78B.
Kathleen Isobel Inglis v. Andrew Leslie Moore
Michael Rayner Thwaites
Maurice Bray
Betty O'Brien
Sylvia Rowlands
No. G47 of 1977.
Coram : St.John, Brennan & Davies JJ.
Date . 29 June 1979
Sydney,
IN THE FEDERAL COURT OF AUSTRALIA
PRINCIPAL REGISTRY App. No. G47 of 1977
wwe we ww
GENERAL DIVISION
ON APPEAL FROM A SINGLE JUDGE OF THE
SUPREME COURT OF THE AUSTRALIAN
CAPITAL TERRITORY
BETWEEN KATHLEEN ISOBEL INGLIS
Appellant (Plaintiff)
AND
ANDREW LESLIE MOORE
MICHAEL RAYNER THWAITES
MAURICE BRAY
BETTY O'BRIEN
SYLVIA ROWLANDS
Respondents (Defendants)
ORDER
JUDGES MAKING ORDER St.John, Brennan & Davies JJ.
DATE OF ORDER 29 June 1979
WHERE MADE : Sydney.
THE COURT ORDERS THAT :
1. The appeal be dismissed.
2. The appellant pay to the respondents their costs of
the appeal to be taxed,
IN THE FEDERAL COURT OF AUSTRALIA)
)
PRINCIPAL REGISTRY App. No. G47 of 1977
)
GENERAL DIVISION
ON_APPEAL FROM A SINGLE JUDGE OF THE
SUPREME COURT OF THE AUSTRALIAN
CAPITAL TERRITORY
BETWEEN : KATHLEEN ISOBEL INGLIS
Appellant (Plaintiff)
ANDREW LESLIE MOORE
MICHAEL RAYNER THWALTES
MAURICE BRAY
BETTY O'BRIEN
SYLVIA ROWLANDS
Respondents (Defendants)
AND
CORAM : ST.JOHN, BRENNAN & DAVIES JJ,
the 29th day of June 1979
ST.JOHN & BRENNAN JJ.
The appellant is the plaintiff in this action. She
appears for herself, and she has drawn her own Statements of
Claim. One of her amended Statements of Claim was struck out
with costs by Connor J. in the Supreme Court of the
Australian Capital Territory on 5 August 1975. The
defendants' solicitor is the Commonwealth Crown Solicitor and
he delivered a bill of costs for taxation. The Registrar,
who is the taxing officer of the Court, taxed the bill. Mrs.
Inglis carried in objections, some to the bill as a whole,and
some to particular items which had been allowed on the
taxation. The objections were disallowed. Mrs. Inglis,
being dissatisfied, applied to Connor J. for an order to
review the taxation. Connor J. reviewed the taxation and
allowed some of the objections, but he ordered "that the
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objection to the bill of costs as a whole be dismissed".
The dismissed objection occupied three foolscap pages of
typewriting but, for the purposes of this appeal, it may be
reduced to the submission that professional costs should not
be allowed to the defendants in respect of the services of
the Commonwealth Crown Solicitor, to whom they were under
no personal liability for costs. Mrs. Inglis appeals to
this Court against the part of his Honour's order which we
have quoted.
A similar question was argued before the Court
of Appeal, in similar proceedings brought consequent upon a
taxation of costs, in Rex. v. Archbishop of Canterbury
[1903] 1 K.B.289. There, the Crown had appointed the
Treasury Solicitor to look after the interests of the
Archbishop, and the Treasury Solicitor became the
Archbishop's solicitor on the record. After the Archbishop
succeeded in the litigation and costs were ordered in his
favour, the costs were taxed and an objection was taken,
as Collins M.R. expressed it at p.292, "because the costs
said to have been incurred by him were really incurred on
behalf of the Crown, or else that the archbishop had appeared
by a solicitor who was not entitled to act for him, namely,
the solicitor of the Treasury". Both of these grounds of
objection failed. As to the former ground, Romer L.J.
said at p.295:
---/3
" The case cannot, to my mind, be
substantially differentiated from that of an
ordinary defendant who is in some such position
as that of a master who is being sued by a servant
where the master 1s insured against liability...
In such a case, 1f the defendant is awarded costs,
those costs would be recoverable by him, and, in
estimating what the amount of those costs are,
he would naturally and properly include among his
costs those of the solicitor who acted for him in
that case, although, as between him and the
insurance company, the solicitor was the solicitor
for the insurance company, and the insurance
company had to see that the costs were provided by
them if the defendant did not succeed. "
It has long been the rule that a successful party who
1s represented by the Crown Solicitor in litigation in which
the Crown has an interest is not disentitled to costs from an
unsuccessful party merely because he is not under a personal
liability to the Crown Solicitor for costs: cases which define
or illustrate the rule include Irving v. Gagliardi (1895)
6 Q.L.J9.R.200; McLaurin v. Hall (1913) S.R.(N.S.W.) 114;
Lenthall v. Hillson (1933) S.A.S.R.31 at pp.35 et seq;
Ex parte W.A. Grubb Pty.Ltd., Re Johnston (1949) 66 W.N.(N.S.W.)
224; Nolan v. George [1959] Qd.R.315; and Blackall v. Trotter
(No.1) [1969] V.R.939. In the case last mentioned the Full
Court of the Supreme Court of Victoria said at p.941:
" In our opinion, neither in that case nor
in Lenthall v. Hilison did the Court base its
decision on the ground that there was any
liability of the party represented to the
Crown-employed solicitor for costs. Both cases,
in our opinion, decided that in the circumstances
the Crown by virtue of its interest in the subject-
matter of the litigation was entitled to make its
solicitor available to act for the party on the
record, and that as the Crown incurred the expense
of his employment the party he represented was
entitled to recover the costs awarded to him.
22/4
Since expense was incurred, albeit not by
the party on the record, in the employment
of the solicitor, the decisions are
distinguishable from cases such as Gundrey v.
Sainsbury, [1910] 1 K.B.645..., where no
expense at all was incurred in the
employment of the solicitor. "
Next it was argued, echoing the argument in the
Archbishop of Canterbury's case, supra, with respect to the
Treasury solicitor, that the Crown Solicitor was not entitled
to appear for the defendants. Why not? The Crown Solicitor
has traditionally acted for persons other than the Crown in
cases in which the Crown has an interest in the subject
matter of the litigation, though the appellant denies that
the Crown has such an interest in this case. The basis of
the Crown Solicitor's entitlement to act is the Crown's
interest in the subject matter of the litigation, as the Court
held in Blackall v. Trotter (No.1), supra. In Brownsea Haven
Properties Ltd. v. Poole Corporation [1958] 1 Ch.574, the
Court of Appeal held that it should determine whether, in a
given case, the Crown had an interest appropriate to allow
the Treasury Solicitor to act, and that the ipse dixit of a
Minister was not conclusive (see per Romer L.J. at p.607),
but the existence of an appropriate Crown interest was
clearly held to authorize the intervention of the Treasury
Solicitor,
In none of the cases cited was there any
argument based upon constitutional limitations on the powers
of the Crown whose Solicitor had acted for a party other than
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the Crown. The common law entitlement of the Crown
Solicitor to act for a party other than the Crown depends
upon the Crown's interest in the litigation, rather than
the extent of the Crown's powers. The limits upon
Commonwealth power may circumscribe the range of possible
Commonwealth interests in litigation, but where the
Commonwealth has an interest, there 1s no reason why the
Commonwealth Crown Solicitor should not act for a party
to that litigation.
Did the Commonwealth have an appropriate interest
in the litigation instituted against the defendants? The
defendants were, and were alleged in the plaintiff's
Statement of Claim to be, Commonwealth public servants
employed in the Parliamentary Library. The plaintiff was
also employed there. It was alleged that the defendants
had tortiously injured the plaintiff by acts done while
they were working 1n the Library, affecting the plaintiff
in her employment and her reputation. In substance
(though the Statement of Claim was drawn much more
expansively), the plaintiff's allegations were that she
had been badly treated at work by other public servants
including her superior officer.
The Commonwealth has an interest in protecting
its employees against claims brought against them in
respect of acts done within the scope of their employment.
22/6
The Commonwealth has an interest in litigation of that
kind, not only to protect the Commonwealth from claims
made against it on the footing of its vicarious liability
for the acts or torts of its employees (cf. Musgrave v.
The Commonwealth (1937) 57 C.L.R.514), but also to protect
employees in performing the functions of their employment
from the risk of a personal liability for costs, if they
should be sued in respect of what they have done, or are
alleged to have done, in performing those functions, In
the present case, the Commonwealth had such an interest
in the litigation that it was entitled, without statutory
authority, to make available to the defendants the services
of the Crown Solicitor,
However, if it were not for the entitlement to
practise conferred on the Crown Solicitor by the Judiciary
Act, 1903 he would be subject to the relevant legislative
controls governing professional practice: in the Australian
Capital Territory those controls are to be found principally
in the Legal Practitioners Ordinance, 1970. Until 1966,
s.50 of the Judiciary Act conferred on the Crown Solicitor
an entitlement to practise "in respect of his office".
Section 50 did not refer to the persons for whom or the
matters in which the Crown Solicitor was entitled to act -
that was left to the general law. In 1966, s.50 was
repealed, and s.55E was enacted. Section 55E conferred a
oes/7
like entitlement to practise in the cases to which its
provisions applied. It confers the Crown Solicitor's
entitlement to act for the defendants in the present case
without his being subject to the Legal Practitioners Ordinance,
provided the present case falis within its terms, Section 55E
reads:
" The Crown Solicitor may, in his official capacity,
act as solicitor for -
(a) the Crown in right of the Commonwealth;
(b) the Commonwealth;
(c) a person suing or being sued on behalf
of the Commonwealth;
(d) a Minister;
(e) a body established by an Act or a law
of a Territory;
(£) an officer of, or a person employed by -
(i) the Commonwealth; or
(ii) a body established by an Act or a
law of a Territory;
(g) a person holding office under an Act or
a law of a Territory;
(h) a member of the Defence Force; or
(1) any other person or body for whom the
Attorney-General requests him to act,
and is, for the purpose of so acting, entitled to
practise as a solicitor in any court and entitled
to all the rights and privileges of a solicitor in
each State or Territory whether or not he is, apart
from this section, entitled to practise as a
solicitor 1n any State or Territory. "
-- /8
Paragraph (f) (i) of s.55E in terms covers the
present case, though the applicant contended that that
paragraph could not have entitled the Crown Solicitor to act.
The constitutional validity of the section was challenged,
and the requisite notice under s.78B of the Judiciary Act
was given to the Attorneys-General of the Commonwealth and of
New South Wales. The Attorney-General of the Commonwealth
intervened to support the validity of s.55E; the Attorney-
General of New South Wales did not wish to intervene.
The appellant submitted (if we understood her
aright) that the section is an exercise of the judicial power
of the Commonwealth, and that it cannot go beyond the subject
matters of jurisdiction listed in Chapter III of the
Constitution. The submissions are misconceived. The
enactment of s,55E is an exercise of legislative, not
judicial, power, Its validity is referable to the legislative
powers of the Parliament, which may be found in the express
Constitutional grants of power, the incidental power read in
conjunction with other powers, and in the powers implied from
the existence of the Commonwealth and its character as a
polity (Victoria v. The Commonwealth and Hayden (1975) 134
C.L.R.338 at p.397 per Mason J.).
Section 55E vests a discretion in the Crown
Solicitor whether or not to act for the persons mentioned in
the lettered paragraphs, limits his discretion under
paragraph (1) to persons in respect of whom the Attorney-
General makes a request, and confers upon him an entitlement
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to practise in cases where he exercises his discretion
to act. The validity of the section is determined by
its operation, The section is facultative, permitting
the Crown Solicitor to act for the persons mentioned
but not requiring him to do so. So far as it permits
the Crown Solicitor to act in cases where it would
have been lawful for him to act apart from the section,
it does not purport to authorize anything which would
otherwise be unlawful or ineffectual: it simply confers
legislative authority to perform administrative acts
which might be performed lawfully in any event, though
1t vests a discretion to perform them in the Crown
Solicitor without request from or direction by the
Commonwealth. To that extent at least, the section
is valid.
There inheres in the appellant's challenge
to the validity of s.55E the proposition that it has
a further invalid and inseparable operation, and
that the terms in which the discretion is conferred
permit the Crown Solicitor to act in cases in which
the Commonwealth has no interest. She submitted that
the width of the discretion was the feature which
worked the constitutional invalidity of the section,
encompassing cases to which the powers of the Commonwealth
could not extend (though the reasons why the powers could
not extend to the cases instanced were not clearly stated).
-.-/10
10.
Despite the evident concern of the learned Solicitor-
General to appreciate the arguments put by the
appellant, and to equip us with both her argument and
his reply, we remain uncertain whether we correctly
apprehend the submission which the appellant wished to
make, However, the answer to her submission, as we
understand it, is that s.55E 1s a facultative provision
vesting a discretion to perform administrative acts of
a kind which may be done within the legitimate ambit of
Commonwealth administrative activity, and it is not
invalid merely because the discretion is vested in terms
which, 1f broadly construed, might encompass the doing
of acts which are not within the legitimate ambit of
Commonwealth administrative activity.
The conferring on the Crown Solicitor of an
entitlement to practise when acting for a party mentioned
in s.55E is an undeniably valid provision if the Crown
Solicitor is restricted to acting for a party to
litigation where the Commonwealth has an interest in the
subject matter of the litigation. But the question is
whether the discretion purports to authorize the Crown
Solicitor to act in other cases where the limits of
constitutional administrative power would be exceeded if
the Commonwealth Crown Solicitor acted. We do not think
it does purport to authorize unlawful acts. The
discretion which s.55E vests in the Crown Solicitor is a
---/1l1
11.
discretion to be lawfully exercised, and the lawfulness
of the exercise requires that it be confined within the
limits of Commonwealth constitutional powers. One may
allow that "[t]here is nothing unreal in the possibility
that the degree of connection constitutionally necessary
might be misconceived and misapplied administratively",
and that that possibility was perceived by Dixon J. in
Australian Communist Party v. The Commonwealth (1951)
83 C.L.R.1 at p.185 to be an obstacle to the validity of
the provision conferring an administrative discretion upon
the Governor-General in that case. In that case, however,
the exercise of the administrative discretion was not
examinable. But where a discretion, though granted in
general terms, can lawfully be exercised only 1f certain
limits are observed, the grant of the discretionary power
is construed as confining the exercise of the discretion
within those limits. If the exercise of the discretion
so qualified lies within constitutional power and is
judicially examinable, the provision conferring the
discretion is valid.
Thus in Shrimpton v. The Commonwealth (1945) 69
C.L.R.613, it was argued that a regulation, enacted under
s.5 of the National Security Act 1939, was invalid because
1t purported to vest in the Treasurer an absolute discretion
to grant or refuse consent to purchase land. The argument
failed because the regulation was held to vest a discretion
so qualified as to bring it within the regulation-making
power. Latham C.J. said at p.619:
«+-/12
12.
"It 1s urged for the plaintiff that this provision
is 1unvalid, because under it the Treasurer could
give or withhold consent upon any ground whatever -
personal, social, political, financial, religious,
racial or other - and that failure to comply with
any such condition would then become an offence
(reg.9(3)). If the words 'in his absolute
discretion' and the words 'subject to such conditions
as he thinks fit' are so interpreted, then the
Treasurer may impose as a condition of his consent
any condition whatever, even though it has no
relation to matters affecting the defence of the
country or the prosecution of the war. If the
regulation is to be so interpreted, it exceeds the
limits of the authority created by the National
Security Act.
But, if the regulation can reasonably be so
construed - ut res magis valeat quam pereat. The
regulation can be held to be valid if, in spite of
the words apparently giving an arbitrary and
unlimited discretion to the Treasurer, it can be
held that the only conditions which the Treasurer
can impose as a condition of granting his consent
are conditions related to the object and purpose of
the Regulations, and that the object and purpose of
the Regulations are such as to have a real connection
with defence or the prosecution of the war. "
In the Communist Party case, the discretion to which
Dixon J. referred in the passage cited above was an unexaminable
discretion vested in the Governor-General, and the considerations
which led the Court to uphold the regulation in Shrimpton's case
did not support the challenged provision in the Communist Party
case, as Dixon J. pointed out (at 83 C.L.R. p.186):
"Unlike the power conferred by s.5 of the National
Security Act 1939-1943, the present power is
administrative and not legislative, 1t 1s not
directed to the conduct of an existing war, and
its exercise 1s not examinable and is not
susceptible of testing by reference to the
constitutional power above which it cannot
validly rise. "
-++/13
13.
The discretion vested by s.55E is susceptible of testing,
and an attempt to exercise the discretion unlawfully
might be restrained at the suit of a person having the
necessary locus standi (see Victoria v. The Commonwealth
and Hayden, supra, at p.401). If a party to litigation
should wish to challenge the entitlement of the Crown
Solicitor to act for the opposing party, the court will
entertain the application as the cases following the
Archbishop of Canterbury's case, supra, show (and see also
Rakusen v. Ellis Munday and Clarke [1912] 1 Ch.831l).
In the present case, it is not necessary to chart
the limits of the discretion which may be exercised under
S.55E; it is sufficient to say that this case lies within
those limits. It 1s within constitutional limits because
the Commonwealth had an interest sufficient to entitle
the Crown Solicitor to act for the Crown's employees in
an action arising out of the performance of their
functions as public servants.
The appeal should therefore be dismissed with
costs.
I certify that this and the IR
preceding pages are a true copy of the
a + et,
Reasons for Judgment herein of BES Honours
Mr. Justice St Jauw % Wo CGuamice
GveuneL_
Associate
A? ihre.
Dated: 24.629
IN THE FEDERAL COURT OF AUSTRALIA
PRINCIPAL REGISTRY No. G47 of 1977
we eww
GENERAL DLVISION
ON APPEAL FROM A SINGLE JUDGE OF THE SUPREME COURT OF THE
AUSTRALIAN CAPITAL TERRITORY IN ACTION NO.624 OF 1975.
BETWEEN : KATHLEEN ISOBEL INGLIS
Appellant (Plaintiff)
AND : ANDREW LESLIE MOORE
MLCHAEL RAYNER THWAITES
MAURICE BRAY
BETTY O'BRIEN
SYLVIA ROWLANDS
Respondents (Defendants)
CORAM : ST. JOHN, BRENNAN, DAVIES JJ
29 June 1979.
REASONS FOR JUDGMENT
DAVIES J : On 5 August 1975, Connor J ordered that an
amended statement of claim, delivered 17 July 1975 in action
No.624 of 1975 in the Supreme Court of the Australian Capital
Territory, be struck out and that the plaintiff, Mrs. K.I.
Inglis, pay the taxed costs of the defendants of the application
to strike out the pleading. Subsequently, the defendants
presented a bill of costs for taxation. On 31 March 1977,
the Registrar issued his certificate allowing costs at
$1,612.36. On 14 April 1977, the plaintiff lodged notice of
objection to the whole of the defendants' bill of costs and
objected, alternatively. to certain specified items in the
bill. On 5 May 1977, the Registrar disallowed the plaintiff's
objections. On appeal, Connor J allowed certain of the
plaintiff's particular objections, ordered that the defendants'
costs be taxed at $1,401.70, reserving the right to the
defendants to tax items 9 and 10 of the bill at the conclusion
of the action, but dismissed the plaintiff's objection to the
bill of costs as a whole. The plaintiff has appealed to this
court for an order that her objection to the bill of costs as
a whole be upheld.
In brief substance, the appellant's objection to the bill of
costs as a whole contends that the respondents' solicitor is
the Commonwealth Crown Solicitor, that the bill of costs sought
to recover the profit costs of that solicitor and that such
costs should not have been allowed either because the
respondents were not personally liable to meet the fees of the
Commonwealth Crown Solicitor or because the Commonwealth Crown
Solicitor had no authority or power to act as solicitor for
the respondents.
I adopt Connor J's summary of the issues raised in the
statement of claim which was struck out
"The statement of claim contained 367 paragraphs and
consisted of 50 foolscap pages. It alleged that the
plaintiff was employed by the Commonwealth in the
Australian Parliamentary Library at Parliament House,
Canberra, and that all the defendants were employed
by the Commonwealth, the first defendant being the
Parliamentary Librarian; the second defendant, the
Assistant Parliamentary Librarian; the third defendant,
the Administrative Officer of the library in control of
the registry; the fourth defendant, a clerical
assistant in the registry; and the fifth defendant,
the personal secretary of the first defendant. Amongst
other things, the statement of claim alleged that in
November 1973 the plaintiff was transferred from one
position in the library to another position in the
library in breach of the Public Service Act. It alleged
that the first and second defendants subjected the
plaintiff to arbitrary and discriminatory treatment by
abuse of their administrative power over the plaintiff. It
alleged that all the defendants conspired for the purpose
of injuring the plaintiff, and that a considerable amount
of material defamatory of the plaintiff 1s in minutes on
files in the records of the parliamentary library. It
alleged in particular that defamatory material is
contained in directions to the plaintiff written on
official files of the library by the first defendant.
It alleged that the first defendant falsely and
maliciously induced the Presiding Officers of the
Parliament to recommend the creation of a new position
in the library so that the first defendant could transfer
the plaintif£ to that position. It alleged that the
first defendant defamed the plaintif£ in a minute
addressed to her in which he expressed his view that the
plaintiff's bad working relationships with other members
of the staff were mainly attributable to her and that
these bad relationships were seriously affecting the
efficiency of the department as a whole. ft alleged
that defamatory material was contained in a notice of
12 November 1973 addressed to all Senators and Members
of the House of Representatives concerning the transfer
of the plaintiff to the position in question. It
alleged that the plaintiff was defamed in minutes of
March 1974 written to the plaintiff on official files
alleging that the progress of her work was slow. it
further alleged that the plaintiff was defamed by an
instruction of July 1974 of the second defendant to the
plaintiff to discontinue distribution of papers which she
was writing in the course of her duty. It further
alleged that she was defamed by an instruction of the
second defendant contained in a departmental file to the
effect that she was writing and distributing unauthorised
papers. It further alleged that she was defamed by
instructions written by the first defendant on 30 July
1974 regarding the distribution of papers prepared by her
in the course of her duties. It further alleged that
the first, second and third defendants wrongfully omitted
the plaintiff's name from certain official publications.
Lt also complained of the conduct of a subordinate in the
plaintiff's group and the relationships of the first and
second defendant with that subordinate which, the
plaintiff alleged, undermined her authority. It also
complained that the first defendant wrongfully accused
her of harassing an officer who was a subordinate in
her group. It also complained of treatment accorded
to a typist in her group by the first, second and third
defendants.
Paragraph 366 of the statement of claim reads as
follows
The plaintiff is apprehensive that the
defendants will repeat the acts and things
herein complained of unless they are
restrained by this Honourable Court.
The statement of claim claimed general damages of
$1,550,000 as well as special damages of $750 and
exemplary damages of $200,000. The statement of claim
asserted that the general damages of $1,550,000 were
made up of $700,000 for defamation; $300,000 for
conspiracy; $100,000 for each of the following :
dishonesty, fraud, malicious falsehood, injurious
falsehood, intimidation and abuse of administrative
power; and $50,000 for breach of statutory duty.".
For the purpose of these reasons, I also accept the contention
set out in paragraph 3 of the notice of appeal that
"3. ...the statement of claim did not allege that in
November 1973 the plaintiff was transferred from one
position in the library to another position in the
library in breach of the Public Service Act. The fact
is that the appellant claims that the appellant was
legally transferred by order of the Presiding Officers
of the Parliament from one position in the library to
another position in the library on the 6th day of
November 1973 but that this order was not made until
after the proceeding the injunctive protective proceeding
No.1028 of 1973 had been commenced on the lst day of
November 1973 by a solicitor Walter §. Palmer of Canberra
un the Supreme Court of the Australian Capital Territory
on behalf of the appellant to restrain the first named
defendant from purporting to transfer the appellant
illegally in the terms of a minute dated the 26th day of
October 1973 and which minute was handed to the appellant
on the afternoon of Friday the 26th day of October, 1973,
by the first named defendant in the presence of the
second named defendant and which minute stated the
purported transfer was to take effect on and from Monday
the 29th day of October, 1973, until such time as the
requirements of the Public Service Act had been complied
with by the first named defendant.
The events which gave rise to this action occurred in
the functioning of the Commonwealth Public Service.
The appellant and each of the respondents were members of
the Public Service employed in a post having a relationship
to the Parliamentary Library, Canberra. The respondents
were not sued as officers or employees of the Commonwealth.
They were sued personally but in relation to orders, minutes,
instructions and like acts which occurred within the Public
Service, albeit their acts were, in the view of the appellant,
wrongful, malicious and not made in the due performance of
the duties imposed upon the respondents.
In the action, the Commonwealth Crown Solicitor has acted as
solicitor for the respondents. Section 55E of the Judiciary
Act 1903 prescribes the persons, bodies and authorities for
whom the Commonwealth Crown Solicitor may act. Paragraph
(£)(1) of the section provides that
"The Crown solicitor may, in his official capacity,
act as solicitor for
(f) an officer of, or a person employed by -
P
(i) the Commonwealth
Cr
and is, for the purpose of so acting, entitled to
practise as a solicitor in any court and entitled to
all the rights and privileges of a solicitor in each
State or Territory whether or not he is, apart from
this section, entitled to practise as a solicitor in
any State or Territory.".
The principal question which arises in this appeal is the
meaning and validity of that provision. The appellant
submitted that the section does not authorise the Commonwealth
Crown Solicitor to act for a person sued in his private
capacity in relation to a subject matter in which the
Commonwealth has no interest. She submitted that, if the
provision purports to authorise the Commonwealth Crown
Solicitor to act for such a person, 1t is invalid being
outside the legislative authority of the Parliament of
Australia, The Solicitor-General, Mr. Byers, QC, who
appeared on behalf of the Commonwealth to present arguments
with respect to the constitutional issues raised in this
appeal, submitted that, on its widest interpretation, the
provision authorises the Commonwealth Crown Solicitor to
act as solicitor for any officer or person employed by the
Commonwealth whether or not the subject matter of the litigation
concerns his status as officer or employee and whether or
not the Commonwealth has any interest in the subject matter
of the litigation. Other subsidiary and alternative
arguments were put by both the appellant and Mr. Byers but
I need not, in these reasons, outline them.
In my view, s.55E(£)(i) should be read as authorising the
Commonwealth Crown Solicitor to act on behalf of an officer
or employee of the Commonwealth whenever the legitimate and
valid interests of the Commonwealth of Australia or of the
Crown in right of the Commonwealth of Australia justify his
so acting. I adopt the approach of Gibbs J in R. v.
Director-General of Social Welfare (ex parte Henry) (1975)
133 CLR 369 at p.374 where His Honour said
"In Ex parte Walsh and Johnson; In re Yates (1925)
37 CLR 36 at p.l2/, Rich J. said : An Act of
Parliament must always be read as within the
Constitution unless its language makes that impossible.'
That of course is merely a particular application of
the general principle that an instrument should, if
possible, be construed so as to render it valid rather
than to make it void. Conformably with that principle,
Knox C.J. and Starke J. in Ex parte Walsh and Johnson;
In re Yates construed the section under consideration
in that case as not extending to persons who had made
their homes in Australia and become part of its people
(pp.61-62 and p.138). In my opinion the provisions in
s.6 also should, if possible, be given a construction
that will preserve their validity. This can be done,
if necessary with the aid of s.15A of the Acts
Interpretation Act 1901 (Cth), as amended, because the
whole tenor of the Act shows that it is intended to
refer to immigrants.".
I see no difficulty in similarly reading s.55E(f)(1) ut res
magis valeat quam pereat. It confers an authority upon the
Commonwealth Crown Solicitor to act in his capacity as such.
I would not accept that Parliament intended such authority to
be exercised otherwise than in the legitimate interests of
the Commonwealth of Australia or of the Crown in right of the
Commonwealth.
So read, s.55E(£)(i) is a valid provision. lt 1s unnecessary
to identify the precise head of power. The Solicitor-General
alleged an inherent authority in the Commonwealth as a body
politic to maintain a Public Service and to pass legislation
with respect to that Public Service. He relied also upon
the specific provisions of s.67 of the Constitution, paragraph
(xxxix) of s.51 of the Constitution, paragraph (xxxvi) of
s.51 of the Constitution and s.15A of the Acts Interpretation
Act 1901.
The appellant next contended that neither the Commonwealth
of Australia nor the Crown in right of the Commonwealth has
any interest in the action which justified the Commonwealth
Crown Solicitor in acting as solicitor for the respondents.
As the appellant's arguments on this and associated matters
ranged over a wide area, 1t is necessary that I draw attention
to the nature of the proceedings in respect of which this
submission is made.
If it is desired to challenge the retainer or authority of a
solicitor, the proper procedure is to make an appropriate
substantive application to the Court. In Richmond v. Branson
& Son (1914) 1 Ch 968, Warrington J held that a defendant
May not in his defence or at the trial dispute the authority
of the solicitors for the plaintiff. His Lordship said at
p.974,
"But the real question is the authority of the solicitor.
Is that a question which can be raised as a relevant
issue in the action and at the trial? No authority
has been cited in support of the affirmative of such a
proposition and, in my opinion, it is impossible,
according to the ordinary practice and procedure of the
Court, to justify that proposition. The business of
this Court could not be carried on if one were not
entitled to assume the authority of the solicitor unless
and until that authority has been disputed and shewn
not to exist in the proper form of proceeding, namely
a substantive application on the part of the parties
concerned to stay the proceedings on the ground of want
of authority.".
See also Russian Commercial and Industrial Bank v. Comptoir
D'Escompte de Mulhouse and Others (1925) AC 112. An
example of a motion which raised the authority of a solicitor
to act for certain defendants may be seen in Porter v. Fraser
(1912) 29 TLR 91. At all relevant times in this action, the
'e
Commonwealth Crown Solicitor was, and he still is, the
solicitor on the record for the respondents. Ifa
substantive application had been made to the Supreme Court,
it may have been open to the appellant to argue that the
Commonwealth Crown Solicitor had no authority to act for the
respondents or that, in the exercise of its inherent
jurisdiction, the court should order that he cease to act as
solicitor for the respondents. However, no such substantive
application was made. The subject issue arose and was
considered on an appeal as to costs. On such an appeal,
even if the issue is considered, it is not for the Commonwealth
Crown Solicitor to undertake the burden of proving the
circumstances in which he came to act as solicitor to the
defendants. He is the solicitor on the record and the
court will presume that he is properly on the record until
some matter, of fact or law, 1s put forward which shows or
tends to show that he has no authority so to act.
The appellant herself called no evidence on this point. She
relied upon the submission that the allegations in the
statement of claim raised no matter in respect of which the
Commonwealth of Australia or the Crown in the right of the
Commonwealth has any legitimate interest. In my opinion,
however, the matters raised in the statement of claim are
matters of such a nature that the Crown in right of the
Commonwealth could have a legitimate interest in them
sufficient to justify the Commonwealth Crown Solicitor in
acting for one or more of the parties. There was no or no
10.
sufficient material before Connor J to challenge the
bona fides of the decision of the Commonwealth Crown
Solicitor to act for the respondents. 1 would presume
from his so acting that the Crown in right of the Commonwealth
has a legitimate interest in this action and I would accept
that the Commonwealth Crown Solicitor was authorised by
s.55E(f)(i) to act for the respondents.
Connor J did not rely upon the presumption but acted upon a
statement from the Bar table that it appeared to the Crown
Solicitor that virtually every act of the defendants
which was the subject of the action was done in the course
of employment by the Commonwealth and was a proper exercise
of power. On that footing, His Honour concluded that the
Crown had an interest to protect the defendants from acts
done in the course of and within the scope of their
employment and that the Crown therefore had such an interest
in the action that the Crown Solicitor might properly act
as solicitor for the defendants. I agree with His Honour
that the interest propounded justifies the Crown Solicitor
in acting for the defendants.
The final point made by the appellant was that it was not
shown that the respondents were personally liable for the
costs of their solicitor. However, the cases of R. v.
ll.
Archbishop of Canterbury (1903) 1 KB 289 and Blackall v.
Trotter No.1) (1969) VR 939 establish that if the Crown
Solicitor has authority to act for a defendant in litigation,
it is no answer to the taxation of costs that the parties
for whom the Crown Solicitor acts are not personally liable
for the costs of the Commonwealth Crown Solicitor or that
the Commonwealth Crown Solicitor is a salaried officer. I
adopt the view of Winneke CJ, Little and Menhennitt JJ in
Blackall v. Trotter (No.1) (supra) at p.941,
"Tn our opinion, neither in that case (R. v. Archbishop
of Canterbury) nor in Lenthall v. Hillson ((1933) SASR 31)
did the Court base its decision on the ground that there
was any liability of the party represented to the Crown-
employed solicitor for costs. Both cases, in our opinion,
decided that in the circumstances the Crown by virtue
of its interest in the subject-matter of the litigation
was entitled to make its solicitor available to act for
the party on the record, and that as the Crown incurred
the expense of his employment the party he represented
was entitled to recover the costs awarded to him. Since
expense was incurred, albeit not by the party on the
record, in the employment of the solicitor, the decisions
are distinguishable from cases such as Gundrey v.
Sainsbury (1910) 1 KB 645, relied upon by Mr. Kaye, where
no expense at all was incurred in the employment of the
solicitor.".
"In Nolan v. George (1959) Qd.R. 315, the Full Court of
Queensland, and in MacLaurin v. Hall (1913) 13 SR(NSW)
114, the Full Court of New South Wales reached a like
result to that reached in R, v. Archbishop of Canterbury
and Lenthall v. Hillson, 1n cases where the informant in
summary proceedings was represented by a Crown~employed
solicitor. Mr. Kaye, however. contended that both these
cases were criminal proceedings. He conceded that in
such proceedings costs are recoverable. but he contended
that civil proceedings are distinguishable. As an
informant in summary criminal proceedings 1s not the
crown - see R. v. Tween (1965) VR 687, at pp.697-9 - we
see no reason in principle to make any such distinction.
It follows, in our view, that the present case cannot be
distinguished, and should not be distinguished by any
process of subtle refinement from the above-mentioned
decisions of long standing and of several jurisdictions.
As in our view such decisions, if we may say so, produce
12.
a sensible and just result, they should, in our opinion,
if applicable to the facts of this case, be followed and
applied.".
For these reasons I would dismiss the appeal.
I certify that this and the | |
preceding pu es ave a true covy of the
Reasons for Judgment herein of his Honour
Mr. Justice Davies
Ab, Alu
ssociate
Dated: 2% Te aa 4