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CATCHWORDS
Registered organisation - removal from office of branch
secretary by committee - refusal to allow agent of branch
secretary to be present - actual bias or reasonable
apprehension of bias - whether denial of natural justice -
Conciliation and Arbitration Act s.14l
CAINS v. JENKINS & ORS
V. No. 25 of 1979
Coram: J. B. Sweeney, St John & Keely JJ.
Place: Sydney
Date: 20 December 1979
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIAN DISTRICT REGISTRY
V. No. 25 of 1979
INDUSTRIAL DIVISION
BETWEEN:
eee
DAVID JAMES CAINS Appellant
and
EILEEN JENKINS, CARLO FRIZZIERO,
NICK PANNAGOPOULOS, GEORGE BISSIOTIS,
MORGAN DAVIS, PAUL COOPER, SHIRLEY
SKIDMORE, ALFRED GEMPTON, ELSIE HILL,
BEVERLEY WEBBER, SHIRLEY BIRCH, KIM
HAMMERLUND, BRIAN MOREL AND MEGAN CHALON
Respondents
ORDER
JUDGES MAKING ORDER: J.B. Sweeney, St. John & Keely JJ.
DATE OF ORDER:
WHERE MADE:
20 December, 1979
SYDNEY
THE COURT ORDERS THAT: Appeal be dismissed.
WN
ed
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIAN DISTRICT REGISTRY
INDUSTRIAL DIVISION
)
)
) V. No.25 of 1979.
)
)
IN THE MATTER OF The Conciliation
and Arbitration Act 1904
BETWEEN ;
DAVID JAMES CAINS
AND
Appellant
EILEEN JENKINS, CARLO FPRIZZIERO,
NICK PANNAGOPOULOS, GEORGE BIisSSioTvTis,
MORGAN DAVIS, PAUL COOFER,
SHIRLEY SKIDMORE, ALFRED GHMPTON,
ELSIE HII, BEVERLEY WEBBER,
SHIRLEY BIRCH, KIM HAMMERLUND,
BRIAN MOREL and MEGAN CH&I ON
~
XN
Respondents
J.B. SWEENEY J. AND ST.JOHN of.
An application by the claimant for a rule nisi, pursuant to
Section 141 of the Conciliation and Arbitration Act 1904
(The Act), that the respondents perform or observe the rules
of the Victorian branch of a registered organization, namely
the Federated Confectioners' Association, by treating as null
and void the resolutions of the committee of management
(the committee) of that branch, at a meeting held on
ll April, 1979, was @ischarged by Northrop J. on 26 June, 1979.
Those resolutions dismissed the appellant from his former
office of Branch Secretary after he was found guilty of
certain charges against him. Against such discharge an
appeal by the claimant is brought to this Court. Denial of
natural justice by the committee was alleged before the
learned Trial Judge.
Before consideration of the grounds of appeal it is convenient
to summarize the relevant facts. The terminology of the
criminal law seems to have been imported into this area, and,
for the sake of convenience,we use it. An election for office
bearers except those of Secretary and President was held in
late 1978. The appellant distributed election material in
@ifferent languages, including English, in which he urged
members of the branch "to keep Communist influence and
interference from other Unions out of this Union" by placing
a cross against the names of four of eight candidates for
election to the committee of management. The four names for
whom a vote was not recommended included Messrs Gempton and
Pannagopoulos who were in fact elected to office subsequently
in December, 1978. Before the ballot was completed the then
committee passed a resolution calling upon the appellant to
withdraw "the allegations of Communist influence", to
publicly apologize to every member and expressing condemnation
of the appellant's "attempts to divide the membership".
- . -/3
Of the respondents Pannagopoulos, Jenkins, Frizziero
(the Assistant Secretary), Gempton and Skidmore were members
of the committee passing such resolution.
a
On 30 November, 1978, three separate charges in writing were
laid against the appellant. Briefly stated, the first alleged
that the appellant had convened on 4 May, 1978 a special
meeting of the committee without the approval of the President,
and failed to notify certain members of the committee of the
meeting, which was alleged also to be unconstitutional. The
members present were alleged to have been paid attendance money
and expenses, presumably by the appellant. This chazxge was
signed by five persons including the respondents Jenkins,
Davis, Pannagopoulos and Bissiotis. The second charge alleged
that the appellant signed an industrial agreement with
Cadbury-Schweppes Limited without consultation and/or approval
of the conmittee, and signed the same without the signature or
approval of the Branch President. This second charge was
signed by persons including the respondents Pannagopoulos,
Gempton, Birch and Bissiotis. The third charge alleged failure
to obey the instructions of the committee, the particulars of
which were that at a meeting called to discuss the election
material above referred to, the appellant walked out of the
meeting despite requests to remain.
At an annual general meeting held in December, 1978 and then
adjourned, the new committee on 31 January, 1979 resolved that
the appellant was not fit to hold office of Branch Secretary
and was accordingly dismissed in accordance with Rule 40 of
» .« 4
the Branch Rules. All the respondents except Hammerlund voted
for the resolution. The Industrial Relations Bureau intervened
and at a meeting of the committee on 6 February, 1979, the
resolution dismissing the appellant from office was rescinded
and suspension, pending the hearing of charges, was substituted.
The respondent Frizziero caused solicitors to prepate a summons
to the appellant dated 6 February, 1979 and this summons was
signed by the Branch President, the respondent Jenkins, who
travelled especially from a conference in Albury to Melbourne for
that purpose. The appellant was summoned to attend a meeting on
6 March, 1979 to show cause why he should not be removed from
the position of Branch Secretary. The grounds were ten in
number and grounds 1, 2 and 3 were similar in content to the
three charges above described except that ground 3 included:-
"that you continued an act of gross misbehaviour when
you authorized and published and distributed a
document making mischievious, untrue and devisive (sic)
statements about members".
This, of course, was a reference to the election material.
Branch Rule 40 complies with Section 133 (1) (f) of the Act
and is in the following terms:-
"REMOVAL FROM OFFICE
40. (a) The Committee of Management may remove from office
any officer or member of the Committee of Management
at a meeting of the Committee of Management to
which the person concerned has been summoned in
writing to show cause why he/she should not be
so removed. Provided that such person shall not
be removed from office unless he/she has been
found guilty of misappropriation of the funds of
the Association, a substantial breach of these
rules, or gross misbehaviour or gross neglect of
duty, or has ceased, according to these rules,
to be eligible to hold the office.
(b) A person summoned to show cause pursuant to sub-
rule (a) of this rule shall be given at least
14 days' notice of the time and place of the
meeting of the Committee of Management to which
he is summoned, and the notice summoning such
person shall also specify the ground or grounds
upon which it is proposed to consider such
removal. The Committee of Management may proceed
to hear and determine a matter under this rule "
notwithstanding the absence of the person summoned
if due notice of the hearing has been given in
accordance with this rule."
On 19 March, 1979, a Judge of this Court, on the application of th:
appellant made orders that the respondents treat as null and
void and of no legal effect the resolutions set out and
passed by the committee on 31 January, 1979 and 6 February, 1979.
The Court ordered also that the respondents not proceed to hear
. - .f/6
See
and determine the charges in the summons dated 6 February, 1979
before 10 April, 1979. The committee met at 9.30 a.m. on
10 April, 1979, all the respondents being present except Hill
and Hammerlund. The appellant, accompanied by Mr Romanin, then
an articled law clerk but now a barrister and solicitor,
identified himself and said that he was an agent for the
claimant and was present to represent the claimant. Has right
to remain during the meeting wag questioned by some members,
and, when put to the vote, the meeting resolved that Mr Romanin
be not allowed to remain. Before leaving, Mr Romanin was
permitted to read a prepared statement signed by the appellant
in which he, the appellant, objected to the respondents Frizziero,
Jenkins, Davis, Skidmore, Chalon, Pannagopoulos, Gempton and
Bissiotis participating in the meeting on the grounds that they
were so prejudiced against the claimant as to be unable to give
the appellant a fair hearing. Particulars of the alleged
prejudice were that they had signed one or more of the three
original charges dated 30 November, 1978, they had participated
in the committee of management meeting of 23 November, 1978,
and that the respondent Pannagopoulos had threatened to kill
the appellant because Pannagopoulos believed he had been
described as a Communist in the election material. The
prepared statement then went on with a statement that the
appellant did not recognize the meeting as valid or as acting
in good faith and that he did not propose to take any part in
it. It also stated that if the appellant remained present it
was as a witness and the members of the committee were supplied
with a sworn statement by the appellant setting out his answer
to each of the grounds set out in the summons.
te
The hearing of the charges proceeded in the absence of
Mr Romanin but in the presence of the appellant. The
respondent Jenkins, who presided, read out a statement as
to the procedure to be followed in dealing with the charges.
This statement was based upon her experience as a membor of
a criminal jury and certain instruction she had received in
attending Clyde Cameron College. Of it the learned Trial
Judge said "it is a remarkable statement and is to be
commended". In short,it included a statement that
Mr Frizziero would prosecute the charges: that witnesses
could be called by the prosecution and could be asked questions
by the appellant; that the appellant could call witnesses and
the prosecutor could ask them questions and further that the
members of the committee could ask questions. It went on to
the effect that if any member of the committee was called to
give evidence that member may participate in the final decision
but may not discuss his evidence after Mr Frizziero had left
the committee of management to deliberate on the charge. The
members were then asked to approach the matter with an open
mind and give every assistance to the prosecutor and the
appellant in presenting the facts so that "you can justly
deliberate on the evidence before you before making any
decision on any of the charges". A copy of the rules was
before each member and they were urged to refer to them as
necessary. Finally, members were told that the appellant was
to be given the benefit of any doubt which might exist in
members' minds "if you are not fully convinced on any point
put to you".
-
The respondent Jenkins asked each member of the Committee
if he or she felt disqualified from hearing and determining
the charges. The respondent Birch stated that she could not
bring an open mind to the questions, left the meeting, and
took no further part.
The procedure outlined by the respondent Jenkins was
followed and after the prosecutor had presented his material
on each charge the applicant was asked whether he had anything
to say. He invariably replied "no comment" but on the second
day did make some comment. The appellant was given every
opportunity to present his defence. On the afternoon of
10 April, 1979, the respondent Gempton stated that the meeting
was a mockery because of the appellant's refusal to participate
and stated that he was going to tell his members that the
claimant was guilty and then left the meeting. He took no
further part in the hearing. The meeting was resumed on the
morning of 11 April and at about 2.30 p.m. the hearing of the
charges was completed and the claimant and the respondent
Frizziero left the meeting. The remaining members of the
committee considered each charge separately, and, under the
direction of the respondent Jenkins the members looked at the
relevant branch rule, the material presented to them by the
prosecutor and the answers contained in the statement
distributed by the appellant. When discussion had ceased,
the respondent Jenkins asked each member in turn to state his
or her decision. After each ground in the summons had been
finally considered a decision was taken as to whether or not
to remove from office. The committee did not consider whether
to impose any other penalty or to impose no penalty at all.
At 4.30 p.m. the appellant was recalled to the meeting and
informed of the results of the adjudication. On a number of
grounds the appellant had been found guilty and dismissed from
office. On others, including grounds relied upon previously,
he was found not guilty.
At the hearing before Northrop J. each of the nine respondents
who adjudicated was called to give evidence and was cross-
examined as to prejudice against the appellant and whether or
not the hearing was approached with an open mind. His Honour
was satisfied that each of the nine respondents "to the
extent of his or her capabilities did consider the charges
and did participate in the deliberations in the manner
described by the respondent Jenkins in her preliminary remarks
and thereafter under her careful guidance . ..". His Honour
found specifically that the appellant had not established that
the members of the Committee who heard and determined the
charges against the appellant were so biased as to vitiate
the decisions made. A submission, that the time for determining
whether bias existed or not was at the time the meeting commenced,
was rejected and His Honour expressed the view that the whole
of the proceedings must be considered. As to a submission
that answers given to cross-examination of the committee
members indicated that a "reverse onus" may have been applied
by some, His Honour stated that it introduced "a degree of
subtleness which is undesirable in matters of this kind", Tuking
the analogy of a jury which could not be cross-examined His
-~10-
Honour said "the particular thought process of individual
members of the committee should not be allowed to be used to
challenge decisions made which have been arrived at by applying
procedures which are fair and reasonable".
As to a submission that natural justice was denied in failing to
allow Mr Romanin to represent the appellant, His Honour pointed
out that the appellant held office which placed him in an
advantageous position with respect to other members of the
Committee. In other words His Honour took the view that the
appellant in the proceedings was well able to look after himself
and that the refusal to allow representation did not invalidate
the decisions.
In view of the arguments formulated by Counsel for the appellant
it is desirable to make some general observations as to the
application of rules requiring adherence to the principles of
natural justice by tribunals generally. FPairstly, there is a
different approach, depending upon whether the tribunal hearing
the charges 1s statutory or consensual in origin. In broad '
terms a more stringent test is applied to the former than to
the latter. To the statutory tribunal the law apolies a test
based on the appearance of fairness; a reasonable suspicion of
unfairness generated in an assumed informed observer is sufficient
to nullify the proceedings. In the case of the consensual
tribunal the reality 1s considered; the question is whether
in all the circumstances natural justice was done, There are
of course differing standards of natural justice to be applied
in the case of different types of each type of tribunal.
fll
~lLi-
The relevant authorities on this field of the law have been
usefully reviewed, and, in our view, accurately expounded in
the New South Wales Court of Appeal in Maloney v_ New South
Wales National Coursing Association Limited (19738)1 N.S.W.L.R. 161
In the leading judgment Glass J.A. illustrates the difference of
approach to a consensual tribunal by quoting Dixon J. an
Australian Workers Union v. Bowen (No.2) 77 C.L.R. 601 at pages
628, 630 and 631 of that report. Those passages are as follows:
"It is important to keep steadily in mind that we are
dealing with a domestic forum acting under rules
resting upon a consensual basis.
'
"The last matter relied upon as invalidating the decisions
2s of a more serious kind. It 1s that the Executive
and Dougherty were both prosecutors and judges and
animated by such intensity of feeling that they were
disqualified by bias. So far as this contention 1s
based upon the fact that the Executive Council promoted
the charges and that they were vitally concerned in
the controversy not only as members of the union but
as office~bearers whose authority had been resisted,
there is in my opinion no substance 1n it. The reason
lies in the constitution of the union. In choosing
as a domestic forum a governing body and in authorizing
it to make inquiries and investigations of such a kind
the rules necessarily bring about, 1f they do not
actually contemplate, such a situation. Domestic
tribunals are often constituted of persons who may, or
./12
-12~.
even must, have taken some part in the matters concerning
which they are called upon to exercise their quasi-
judicial function. Nor do I think that 1t has been shown
that any particular member, putting aside the general
secretary, was disqualified by any interest or specific
ground of bias attaching to him or to them all. But
Dougherty appears to me to have assumed altogether a
different position.
"It is not in accordance with the principles of natural
justice to have present as a member of the tribunal a
person who has promoted the charge and supports it as
the prosecutor or one who 1s invincibly biassced against
the accused as a result of his participation in the
controversy, and this was the case with Dougherty. If
a person disqualified by such considerations sits with
the tribunal and takes part in the decision, that is
enough to vitiate it: Dickason v. Edwards,"
Northrop J. expressed some concern as to the difficulty of
applying the phrase "invincibly biassed" in applying Bowen's
case to the facts before him. "Invincible" must in the
circumstances mean a bias that is incapable of being remedied
by reason or argument during the period up to the making of
the tribunal's decasion. It could not mean that bias that was
impossible of eradication at any time during the holder's
lifetime,as that would be irrelevant to the decision in
Bowen's case. In our view it 1s sufficient if the fanding
-13-
bod
is that, on the probabilities, the bias continued at least
until the adjudication is made.
In many cases bias is inferred from previous conduct or a
history of a relationship between contestants. Had not
Northrop J. heard evidence from ali the committee who
deliberated he may have inferred such bias from previous
conduct. In our view he certainly was not precluded from
finding that bias did not influence the decision of the committee.
His Honour had a total view of the whole of the proceedings,
heard all the participants, and had before him extremely full
minutes of the meeting.
It remains to deal with the arguments put for the appcllant.
Counsel for the appellant put to the Court various arguments
in which he selected a certain fact or facts from decided
cases and sought thereby to produce a general proposition of
law that natural justice had been denied when those facts
existed and in this process ignored other relevant facts which
contributed to the ruling that natural justice had been denied.
For example Cleworth v. Barrow (1978) 20 F.L.R. 359 was relied
upon as establishing the principle that invincible bias
"includes the concept of prejudgment and a prior hearing of
exactly the matters concerned at which a judgment of those
facts is made as amounting to invincible bias and therefore
disqualification". Cleworth's case was a decision after a
first instance hearing in which the relevant facts were that
pursuant to a rule allowing resolutions to be made by the
- - .f/14
-14-—
committee signing a resolution in terms without a formal
meeting, three members signed a resolution supporting the
suspension of the federal secretary and in that sense had
pre-judged the issue of his guilt without hearing the federal
secretary. At a subsequent meeting when the secretary was
heard, the suspension resolution was confirmed and a
suspension of three months imposed. A careful reading of the
joint reasons for judgment makes it perfectly clear that the
Court felt there was a prima facie case of bias within the
terms of Bowen's case made out against three members of the
Tribunal because of their pre-judgment. At the hearing those
three members gave no-evidence at all to displace such a
prima facie case except that one of them swore an affidavit
which did not touch on that issue. In the absence of any
evidence to the contrary the Court concluded that the continuation
of the bias evidenced by signing the resolutions without hearing
the secretary was an inference properly to be drawn. In other
words Cleworth's case establishes no new principle; it is an
application of the principles in Bowen's case to the facts
before that Court.
Counsel for the appellant also relied on the fact that the
President Jenkins had signed the summons addressed to the
appellant setting out the charges to be dealt with. The
President Jenkins' explanation for signing the charges was
to the effect that she thought she was the appropriate person
to do so. Because she signed the charges counsel for the
appellant argued that it was a principle of law that she
was thereby disqualified from taking part in the hearing.
» « 15
-15- Cr
Reliance was placed on Dickason v. Edwards 10C.L.R. 243
to support this proposition. In that case the conduct
complained of .consisted of personal abuse of a District
Chief Ranger who was entitled to, but not bound, under the
relevant rules to preside over the body which adjudicated.
At Page 252 Graffith C.J. said of 'he Chief Ranger's position
"if he is not merely a formal party but in substance an
individual complaining of an offence against himself, then
I think very different considerations apply. Then 1t becomes
his own cause not in a technical sense but substantially.
He is a person complaining of a grievance." The learned
Chief Justice then went on to state that such circumstances
vitiated the proceedings. It is, in our view, a far cry from
the facts before Northrop J.
Counsel for the appellant also relicd on Taylor v. National
Union of Seamen (1967) 1 W.L.R. 532. That case turned upon
considerations vastly different to those in the instant
case. In the forefront of the finding that there was a denial
of natural justice was the fact that the tribunal deliberating
heard from the accuser a long statement in the plaintiff's
absence about matters completely outside the charge against
him,(such as that he had Communist associations), which affected
the minds of the deliberating body. Rocbuck v. National Union
of Mine Workers (1977) I.C.R. 573 was also referred to for
the same purpose. In that case the actions of the President,
whose presence on the tribunal deliborating, was not necessary
according to the rules, and his conduct prior indicated strong
animus against the person charged. At Page 587 Judge Rubin
applied Bowen's case and at Page 589 1t was emphasized that
» . ./16
-16-
in the very document in which the President made the complaint
he also expressed the view that the persons charged were guilty.
No new principles emerge from these cases. They are decisions
on the facts; denial of natural justice was found or inferred
from proven facts. There is no absolute rule that denial must
be found when the person laying charges adjudicates. There is
no rule of law that a committee that has adjudicated guilt on
issues cannot afford natural justice on a second hearing of
the same issues; Ridge v. Baldwin (1964) A.c. 40. There are
facts which lead inevitably to the conclusion that a fair
hearing has not been had; where for example the accused is
left an ignorance of the complaint against him or he is not
allowed to be heard in answer; the audi alterum partem rule.
For the appellant it was also argued that denial of representation
(the exclusion of Mr Romanin), vitiated the proceedings. Lord
Denning's judgment in Pett v. Greyhound Racing Association (1968)
2 W.L.R. 1471 at 1475 dealing with the right to representation
of a greyhound trainer before a tribunal, the decision of which
could result in his licence to train being lost, stated
". . . when a man's reputation or livelihood is at stake he
not only has a right to speak by his own mouth. He also has
the right to speak by counsel or solicitor". That statement
was made in an appeal from interlocutory orders; when the matter
finally came before Lyell J. (Pett v. Greyhound Racing
Association (No.2) 1969 2 W.L.R. 1228, that view of the law
was not applied. His Lordship referred (at Page 1237) to the
fact that the Privy Council advice in University of Ceylon v.
Fernando (1960) 1 W.L.R. 223 had not been cited to Lord
-17-
-
Denning and his brethren. There a charge of cheating in an
examination could have led to a student's being refused to
sit for further examinations. The University refused
permission for the student to cross-examine a witness whose
statement in writing supported the charge. The Judicial
Committee cited Russell v. The Duk, of Norfolk (1949) 1 Ail
E.R. 109 per Tucker L.J. at p.108; "
"There are, 1n my view, no words which have unive:sal
application to every kind of inquiry and every kind
of domestic tribunal. The requirements of natural
justice must depend on the circumstances of the case,
the nature of the inquiry, the rules under which the
tribunal is acting, the subject~matter which is being
dealt with, and so forth."
As recently as 1973, in Stollery v. The Greyhound Racing
Control Board (1973) 128 C.L.R. 509 Gibbs J., at p.526,
quoted the latter sentence of that passage with approval,
prefacing it by
"The principles of natural justice are not rigid or
technical."
At p.517 of the same report Barwick C.J. said
"What 1s required to satisfy these principles no doubt
' depends very largely on the matter in hand and the
circumstances in which the hearing takes placc."
. ./18
-18-
i
The appellant's capacity to look after himself before the
committee in the matter under appeal was assessed by Northrop J.
His finding is referred to above. His Honour's annproach was
correct, Whether a deaf mute or a migrant with no English
should have representation 1s a question that could have a
different answer to the same question about Queen's Counsel. On
the authorities there is no absolute right to representation even
where livelihood is at stake. But that is not to say that in all
cases a tribunal can refuse it with impunity. The seriousness of
the matter and the complexity of the issues, factual or legal,
may be such that refusal would offend natural justice principles
In any event what was really sought at the meeting of 10 April,
1979 was only that Mr Romanin should be present as a witness
observing the proceedings. The applicant intended that he
himself would examine and cross-examine witnesses and address.
We see nothing in the learned Trial Judge's decision on this
point that calls for adverse comment.
The content of the rules is to some extent prescribed by the Act
and regulations made thereunder The statutory content does not
touch upon the composition of committees: the choice of officers
and committee members remains the province of the members of the
Union, Therefore they remain tribunals with a consensual base
as referred to in the above quotation from Sir Owen Dixon in
Bowen's case. We reject a submission to the contrary made by
the appellant's counsel. We emphasize, 1f emphasis be necessary,
that we are not to be taken to be reducing the level of care,
consideration and fairness that must characterize the hearing
and adjudication of a trade union committee esnecially when
exercising powers of dismissal of officers or expulsion.
~19-
Some of the committee members hearing the charges against the
appellant had personal ,.knowledge of the facts supporting the
charge. This was utilized to support a further submission of
denial of natural justice. Rule 24 of the branch rules provided
that the branch secretary was under the supervision of the
committee. In the domestic tribunal sphere natural justice 1s
an implied term of the contract of membership. Terms cannot
be implied where a contrary intention is expressed in the
contract. If the committee is dutiful, in many cases, its
members will necessarily become aware of or have personal
knowledge of the conduct which forms the subject-matter of the
charge. It follows that the implied term of natural justice is
modified to the extent that if a quorum of the committee cannot
be formed from members with no knowledge the members with |
knowledge must proceed to deal with the charge. To hold
otherwise would, for example, put a defalcating secretary in
an impregnabie position if he confessed his misappropriation to
the whole committee. That could not be the true intention of
the parties to the contract of membership.
Because of knowledge of the facts in the minds of some committee
members it was submitted by appellant's counsel that, rather than
proceed under Rule 40 of the branch rules, the federal body rule
under which membership of the organization could be terminated
should have been invoked. Statement of the submission is almost
its own refutation. Putting aside the possible argument that
conduct in the office of secretary as secretary 1s not conduct
as a member and therefore outside the federal ruJe, branch rule
40 could be regarded as being breached by thut course. To
2. 6/20
ty
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indirectly dismiss a secretary by terminating his membership of
the Union would in our view be in breach of the branch rules.
Rule 40 was used for the specific purpose for which it exists
We doubt whether it would be a bona fide use of other rules to
achieve indirectly that same purpose but that 1s not a matter
necessary for our decision at this stage.
It is not our intention to comment upon all the submissions
made as to the effect of numerous decisions to which we were
referred. We detect no errors in the approach of the learned
Trial Judge. His Honour's reasons and conclusions are careful
and compelling.
Avrnellant's counsel also argued that the failure of the corm: ttee
to consider a penalty other than that of dismissal amounted tn a
denial of natural justice as did the farlure of the committee to
hear the avpe!lant on the question of penalty after finding guilt.
The minutes of the meeting reveal that the appellant was invited
to be present during the deliberations of the committee when they
retired to consider the matter but he declined thas invitation.
Further, after the announcement of guilt on the first charges
referred to, the appellant was invited to sneak but stated he had
no comment to make. Dismissal was then announced. There was sore
cross-examination of members of the committee apparently directed
to establish in the witness a state of mind in which he did not
consider the possibility of not dismissing the appellant. The two
submissions referred to above were made to the learned trial judge
and to a great extent they depend upon the view he tock of the
-21-
state of mind of the various committee members who were cross-
examined on that matter. The evidence as to their state of 1nd
is not at all clear as some of the questions were put on the basis
as to whether or not the witness considered any penalty other than
dismissal and clearly from Rule 49 no other penalty 1s available.
We are not satisfied that tnere is any substance in either
submission.
The appeal is dismissed.
IN THE FEDERAL COURT OF AUSTRALIA
INDUSTRIAL DIVISION V. No. 25 of 1979
VICTORIA DISTRICT REGISTRY
BETWEEN:
DAVID JAMES CAINS Appeliant
and .
EILEEN JENKINS, CARLO FRIZZIERO,
NICK PANNAGOPOULOS, GEORGE BISSTOTIS,
MORGAN DAVIS, PAUL CCOPER, SHIRLEY
SKIDMORE, ALFRED GEMPTON, ELSIE HTLL,
BEVERLEY WEBBER, SHIRLEY BIRCH, KIM
HAMMERLUND, BRIAN MOREL AND MEGAN CHALON
Respondent
Coram: J. B. Sweeney, St John & Keely JJ.
20 December 1979
REASONS FOR JUDGMENT
KEELY J.
I have had the advantage of reading the reasons for
judgment of J. B. Sweeney and St John JJ. which set out in
detail the material facts and the 1ssues arising in this
appeal, I agree that this appeal should be dismissed and
shall state shortly my reasons for so doing.
Mr Tracey of counsel on behalf of the appellant stated
that he did not submit that 1t was nct open to the committee
to reach the conclusions that it did on the material which was
before it. The matters referred to in grounds l, 2, 4, 6
and 7 of the grounds of appeal may Le broadly stated as a
submission that the learned trial judge should have held
that on the evidence before him the appellant had ectablished
that scme or all of the members of the committee of
management who heard and determined the charges against
the appellant were "so biased as to vitiate their decisions
thereon".
in support of this submission Mr Tracey sougnt to place
considerable reliance upon the decision in Cleworth v. Barrow
& ors (1978) 20 A.L.-R. 359. In that case the Court, after
stating that certain evidence showed prejudgment by three
members of the committee, dealt with an argument "that there
was in fact no prejudgment but that the resolution was merely
a way of having an item placed on the agenda" and that those
respondents were unbiased. The Court, in rejecting the
argument referred to the absence of any evidence to support
it, and said (at p.370):
"No attempt, however, was made to lead evidence from them
before us that they regarded their telegraphic vote as
only placing an item on the agenda or that they had
indeed applied themselves to giving a fair hearing to
the applicant.
Mr Brophy swore an affidavit but did not touch on this
matter. He was placed in the witness-box, but no evidence
was led from him or obtained in cross-examination. The
other two members did not give evidence.
In these circumstances we feel we are unable to depart
from the terms of the telegrams and the replies and
that these clearly show a judgment and considered opinion
reached by the three members on the very matters they
were required to inquire into and reach a decision about.
We therefore think that there was a denial of natural
justice in this aspect."
The absence of evidence in support of the submission in
Cleworth v. Barrow & ors (supra) may be contrasted with the
present matter 1n which each of the nine respondents who
participated in the deliberations of the committee gave
evidence. In my view that decision does not assist the
present appellant. I agree with the learned trial judge
that on the evidence it has not been established that any
member of the committee who heard and determined the
charges against the claimant was so biased as to vitiate
the decisions made.
Mr Tracey contended that 1t was sufficient for the
claimant to establish a reasonable apprehension of bias
and placed some reliance upon the following sentence from
the reasons for judgment in Cleworth vy. Barrow & ors (supra
at p.371):
"It would seem that 1t 1S no less important that
justice be seen to be done than that it be done in
the case of these organizations."
That sentence was part of a passage dealing with an argument
that "the claimant had waived his rights to have the rules
cf natural justice applied" and in my view was not intended
to convey that it was sufficient for a claimant under s.141
of the Act to establish a reasonable apprehension of bias.
In my opinion where actual bias on the part of pe.sons
sitting on a domestic tribunal has not been established, «a
claimant under s.141 of the Conciliation and Arbitration
Act 1904 (the Act) can not establish that he has been denied
natural justice by showing only that fairminded persons might
entertain a reasonable apprehension that members of the
domestic tribunal would not act with unbiased minds.
Mr Tracey submitted that the New South Wales Court of Arpeal's
decision in Maloney v. New South Wales National Coursinc
Association Ltd (1978) 1 N.S.W.L.R. 161 1s "both wrong and
d_stinguishable". I reject the argument that the decision is
wrong and adopt, as being equally applicable to the domestic
tribunal the subject of the presenz appeal, what war 3.14
an Maloney's Case (supra) by Glass J.A. (with whem Horm and
Wutley JJ.A4. agreed) who, after referring to the application
ef the princaples of natural justice to ccurts and statutory
tribunals, where the tribunal is not chosen by the parties,
said (at pp.170-1) that:
"the requirements of natural justice are 1n sone
respects different where domestic tribunals are
concerned. ...
Domestic tribunals are usually established in
circumstances which are radically different. The
members, generally speaking, have agreed to abide
by a set of rules and the authority of a committee
to enforce them, if necessary by expulsion. The
committee members cannot, in the nature of things,
divest themselves of the manifold predilections
and prejudices resulting from past associations
with members. Apprehension of bias could be
generated in all kinds of ways. If it was a
disqualifying consideration, the enforcement of
the consensual rules would be largely unworkable.
There may be some circumstances where a suspicion
of bias would operate to disqualify a member of a
domestic tribunal. But generally speaking 1t does
not so operate....
A domestic tribunal obliged by the general law to
observe the minimum requirements of justice must
give notice of the charge being preferred, extend
an adequate opportunity to present a defence and
concede all the other incidental safeguards of a
fair trial which are covered by the audi alteram
partem principle. ...
But for reasons already given I am of opinion that
suspected bias on the part of a member of a domestic
tribunal such as the committes of the defendant
association does not disqualify him, even if there
be no rule which expressly, or by implication, so
provides,"
In support of his submission that Maloney's Case (supra)
as "distinguishable", Mr Tracey contended that trade unions
registered under the Act "are in a very different category
from the purely consensual domestic bodies" such as sporting
clubs and social clubs. He put the contention on two bases.
First he said that "In many cases it 1S a fact that membership
of trade unions 1s at least in a de facto sense not voluntary".
Jowever, in my view that suggestion 1s met by his concession
that there was no evidence before the trial judge that any
persons were forced to join the Federated Confectioners!
ay
Association (the union}.
Secondly Mr Tracey relied on the fact that registration
of the unzon under the Act confers corporate status, that
both the Act and the regulations under it require the
registered rules of the union to comply with deta1rled
provisions and that those legislative requirements have
increased significantly in recent years. However, those
provisions of the Act and the regulations do not support
the argument expressly and in my opinion they do not
support it impliedly. There may be an implication to the
contrary in that regulation 115(1)(d) requires that the
union have rules for the election of officers and of a
committee of management and of other bodics empowered to
exercise functions of management and s.133(1)(f£) of the Act
imposes certain requirements as to any rules of the union
providing for the dismissal from office of a person elected
to an office. Such rules will often result in the committee
of management empowered to hear a charge being constituted
by persons, some or all of whom will have some personai
knowledge of, or even have played some part in, the matters to
which the charges relate. I am not prepared to accept
Mr Tracey's argument that Maloney's Case (supra) 1s
distinguishable.
Mr Tracey also contended that at the time of the judgment
of the High Court in Australian Workers' Union v. Bowen (Io. 2)
(1948) 77 C.L.R. 6GOl "the real likelthocd (of bias) tzst was in
the ascendency but ... that 1s no longer the crse". However,
I do not consider that any of the later cases citea haw
brought about that result and in my opinion the following
passages from Bowen's Case (supra), which were quoted by
Glass J.A, 1n Maloney's Case (supra), still apply.
Rich J. said at pp.618-9:
"In considering the question whether the procesdings
of the executive council of the union were carrie? out
in accordance with the requirements of natural justice,
the rule to be applied in this case 1s entirely
@ifferent from that which is applied to judaes,
magistrates or any person in a judicial capacity,
where the tribunal 1s not chosen by the parties who
are sending their disputes to be settled by it, but
1s a tribunal constituted apart from any agreement
oer consent of the parties. Where the tribunal is
not chosen by the parties, no doubt the rule is very
strict. But where the parties choose their own
tribunal the case 18 very different."
Dixon J. (with whom Starke J. agreed) said at p.630:
"In choosing as a domestic forum a governing body and
an authorizing it to make inquiries and investigations
of such a kind the rules necessarily bring about, if
they do not actually contemplate, such a situation.
Domestic tribunals are often constituted of persons
who may, or even must, have taken some part 3n the
matters concerning which they are called upon to
exercise their quasi-judicial function,"
It was also argued that there had been a denial of
natural justice in the way in which the committee decided
upon the penalty. Having regard to the terms of Rule 40
and to the evidence of the conduct of the hearing, including
the anvitation to the appellant to be present during the
deliberations of the committee, I consider that his argument
fails to support the contention that there was a denial of
natural justice.
Ground 5 of the grounds of appeal was that the learned
trial judge should have held that the refusal of the committee
of management to permit the appellant to be "represented" by
one Romanin at the hearing of the charges constituted a denial
of natural justice. However, 1n his evidence the appellant
made it clear that he only wanted Mr Romanin to be present to
advise him and to be an observer of the proceedings before
the committee. He did not intend that Mr Roman1tn should
examine or cross examine any witnesses or address the
committee on his behalf. I agree with J. B. Sweeney and
St John JJ. that there is no absolute right of representation
by an agent, even where the livelihood of the person charged
before the domestic tribunal is at stake. In the light
of the nature of the charges and the experience of the
appellant, I agree with the learned trial judge that the
decision of the committee on this aspect did not constitute
a denial of natural justice.
Having regard to the opinion which I have expressed,
I do not find at necessary to deal with the principle of
necessity referred to in ground 3 of the grounds of appeal.
Nor do I find it necessary to make any specific reference to
the matters encompassed in ground 8.
In my opinion, the appeal should be dismissed.