Joe Slater Thompson, James O'Neill and Wilfred Taylor & Ors v L.C. Townsend & Ors [1979] FCA 151
Federal Court of Australia
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CATCHWORDS
Industrial Law - Application for interim orders -
Jurisdiction of Court constituted by single Judge where
(earlier) "proceedings" part heard before a Full Court -
'
Whether order sought has "any relation to the matters
to which the proceedings relate" - Principles applicable
to making interim orders ~ Conciliation and Arbitration
Act 1904 ss. 118C, 140(10) and 141(2).
J. S. THOMPSON & ORS v. L. C. TOWNSEND & ORS
V. No. 31 of 1979
Coram: Keely J.
16 August 1979
Melbourne.
IN THE' FEDERAL COURT OF AUSTRALIA
INDUSTRIAL DIVISION V. No. 31 of 1979
VICTORIA DISTRICT REGISTRY
IN TIIE MATTER of the Conciliation and
Arbitration Act 1904
and
IN THE MATTFR of an Application
spursuant to section 140 and
section 141 of the said Act
BETWEEN:
JOE SLATER THOMPSON, JAMES O'NELLL
and WILFRED TAYLOR Applicants
and
L. C. TOWNSEND, J. K. SANDILANDS,
D. E. JARRAD, J. E. BUCK, W. J. ALLAMBY,
D. J. FOREMAN, J. D. BENNETT, P. W. NEHAM
es
G. J. BURGE, A. McDONALD, C. AUSTIN,
THE VEHICLE BUILDERS EMPLOYEES' FIDERATION
OF AUSTRALIA, GARRY ERNEST SHERRIFF,
E. M. McMANUS, S. LOUCANARIS, J. E. FORD,
A. HARVEY, 'T. GEARON, P. SLEVIN,
J. J. McDOUGALL, R. BENNION, A. C. KNIGHT
and M. ANDERSON Respondents
ORDER
JUDGE MAKING ORDER: Keely J. '
DATE OF ORDER: 16 August 1979
WHERE MADE: Melbourne
THE COURT ORDERS THAT:
1. Application dismissed.
IN THE FEDERAL COURT OF AUSTRALIA
)
> |
INDUSTRIAL DIVISION ) V. No. 31 of '1979
)
)
VICTORIA DISTRICT REGISTRY
IN THE MATTER of the Conciliation and
Arbitration Act 1904
and
IN THE MATTER of an Application
"pursuant Lo section 140 and section 14
of the said Act
BETWEEN:
JOE SLATER THOMPSON, JAMES O'NEILL
and WILFRED TAYLOR Applicants
and
L. C. TOWNSEND, J. K. SANDILANDS,
E. JARRAD, J. E. BUCK, W. J. ALLAMBY,
- J. FOREMAN, J. D. BENNETT, P. W. NEAM,
G. J. BURGE, A. McDONALD, C. AUSTIN,
THE VEHICLE BUILDERS EMPLOYEES' FCDERATION
OF AUSTRALIA, GARRY ERNEST SHERRIFF,
E. M. McMANUS, S. LOUCANARIS, J. E, FORD,
A. HARVEY, T. GEARON, P. SJEVIN,
J. J. McDOUGALL, R. BENNION, A. C. KNIGHT
and M. ANDERSON Respondents
D.
D
REASONS FOR JUDGMENT
16 August 1979 KEELY J.
This is an application for interim orders pursuant to
s.140(10) and s.141(2) of the Conciliation and Arbitration Act
1904. As amended at the hearing the application seeks the
following orders:
"1, That pending the furlher order of the Court all
parties to the above proceedings treat as null and
void and of no legal effect all purported resolutions
of a meeting or meetings of the Federal Council of
the respondent organisation purportedly called for
the fifteenth, seventeenth and eighteenth days of
August 1979 and any adjournment thereof and any
meeting of the Executive CommitLlee held in
connection with such meeting or meetings.
2. That pending the further Order of the Court
the fifteen delegates to represent the respondent
organisation at the Australian Council of Trade
Unions 1979 biennial Congress shall in addition to
the Federal Secretary and Federal Assistant
Secretary be such other members of the respondent
organisation as are appointed as such delegates by
the Branch Committee of management of each of the
Queensland, New South Wales, Victorian and South
Australian Branches cach Branch to appoint three
delegates except the Victorian Branch which shall
appoint four delegates."
The Court's power to make interim orders exists "at any
time after proceedings under" s.140 or s.141 have been instituted.
Proceedings under both of those sections have been instituted |
(Matter V. No. 12 of 1979) and are at present part heard before
a Full Court which heard the matters for several days in June 1979
and is to resume the hearing on 17 September 1979. The power
invoked under s.141(2) in these proceedings is to "make such
interim orders as it thinks fit in relation to the matters to
which the proceedings relate" i.e. the proceedings before the
Full Court. The application for interim orders was opposed by
Mr Harrison on behalf of all of the respondents other than the
respondents Garry Ernest Sherriff, E. M. McManus, S. Loucanaris,
J. E. Ford, A. Harvey, T. Gearon, P. Slevin, J. J. McDougall,
R. Bennion, A. C. Knight and M. Anderson. The respondents
represented by Mr Harrison also constitute all of the respondents
in the Full Court proccedings except J. $. Thompson, J. O'Neill
and W. Taylor, who are the applicants for the interim orders.
The present application was heard on Tuesday, Wednesday and
today. As the application rclated to meetings proposed to be
held yesterday (now adjourned until Friday) and on Friday and
Saturday of this week (August 15, 17 and 18 respectively) it is
necessary that the matters be determined today.
A question was raised 'as to whether s.140(10) and
s.141(2), in conferring upon "the Court" the power to make
interim orders, conferred that power upon the Court constituted
by a single judge in the present case. The question arises
because the "proceedings ... (which) have been instituted"
(which proceedings are a condition precedent to the existence
of the power to make interim orders under either s.140(10) or
¢.141(2)) have been the subject of an order under s.118C, made
by the Court constituted by a single judge, "that the proceedings
be heard and determined by a Full Court". In the time available
this question has not been argued as fully as I would have wished.
However, the urgency of this application requires that it be
decided and I have reached the conclusion that the power is
exercisable by the Court constituted by a single judge. S.118A(4A)
provides (inter alia) that the original jurisdiction of the Court
under s.140 and s.141 of the Act "shall be exercised by a single
judge". The single judge in exercising that jurisdiction "may,
at any stage of the praceedings ... order that the proccedings
be heard and determined by a Full Court" (s.118C). In my view
the exercise of that power under s.118C in Matter V. No. 12 of
1979 docs not operate to require thut the power conferred upon
the Court by s.140(10) and s.141(2) be exercised by a Full Court.
Mr O'Callaghan Q.C., who appeared with Mr Ray Johnstone
for the applicants, did not submit that, in considering whether
to make the interim orders sought, the relevant principles are
different from those to be observed in dealing with applications
for interlocutory injunctions. As the High Court said in
Beecham Group Ltd. v. Bristol Laboratories Pty. Ltd. (1968)
118 C.L.R. 618 at 622 and 623:
"The Court addresses itself in all cases, patent as
well as other, to two main inquiries. The first is
whether the plaintiff has made out a prima facie case,
in the sense that if the evidence remains as it is
there is a probability that at the trial of the
action the plaintiff will be held entitled to
relief ...
The second inquiry is directed to this aspect of the
matter. It is whether the inconvenience or injury
which the plaintiff would be likely to suffer if an
injunction were refused outweighs or is outweighed
by the injury which the defendant would suffer if an
injunction were granted." .
I turn to the first matter - whether the applicants have
made out a prima facie case. As this is an application for
interim orders it is not desirable that I should form any
concluded views as to the evidence on the issues in dispute.
The applicant J. S. Thompson is a member of Federal
Council and the Branch Secretary of the New South Wales Branch
of The Vehicle Builders Employees' Federation of Australia (the
Federation). There is evidence that he received from the
respondent, L. C. Townsend, who is the Fedcral Secretary, on
Friday, 6 July 1979 a telex message and on Monday, 9 July 1979
a letter with certain enclosures relating to the proposed
alterations to the rules. The letter was dated 5 July 1979, was
headed "To all State Branch Secretaries and Federal Councillors"
and concluded by saying "It follows that there will be meetings
of the Federal Council on the 15th, 17th and 18th August, 1979
respectively", There is no evidence at present before the Court
as to when the letter was posted.
Rule 50 of the certified rules of the Federation (the
rules) provides as follows:
"S50, Amendment of Federal Rules
(a) Amendments may be made to these Rules and new rules
may be made and any existing rule may be deleted
ox deleted and replaced by a new rule, by a
resolution carried at a meeting of Federal Council.
of which not less than six wecks' notice in writing
specifying the nature of the proposed alteration to
the rules shall be given to each member of Federal
Council.
(b) The Federal Secretary shall give to each Branch
Secretary not less than six weeks notice in writing
of any meeting of Federa] Council at which an
alteration or amendment of these Rules if (is)
proposed to be made. Such notice shall specify
the nature of the proposed alteration or amendment.
(c) Upon receipt of the notice referred to in the last
preceding sub-rule, each Branch Secretary shall call
a general meeting of his Branch for the purpose of
considering the proposed alteration or amendment.
Each such Branch meeting shall be held not less than
two weeks prior to the mecting of Federal Council
at which the alteration or amendment is proposed
to be made.
(d) Each of the Branch Meetings referred to in the
preceding sub-rule shall be called by notice
specifying the nature of the proposed alteration
or amendment and given not less than two wecks
prior to the date fixed for each respective Branch
meeting."
The applicants contend that neither of the meetings of
Federal Council called for 15 and 18 August 1979 is a meeting
"of which not less than six weeks' notice in writing" has been
"given to each member of Federal Council" and given "to each
Branch Secretary" as required by Rule 50(a) and (b) of the rules.
Y
,
It was argued by Mr Harrison for the respondents to the present
application that the requirements of Rule 50(a) are met if the
"notice in writing" has been posted six weeks before the proposed
meeting. I am unable to accept that contention as the rule requires
that the recipients of the notice in writing shall be given, (i.e.
shall havé "not less than six weeks' notice" both of the meeting and
of "the nature of the proposed alteration to the rules", Mr Harrison
referred to the possibility of a situation where a member of Federal]
Council would have received the notice in writing in the ordinary
course of post but failed to do so by reason of his absence from
his office on leave. It may be that such a failure would not
result in noncompliance with Rule 50(a) but it is unnecessary to
consider that question in this matter.
It was also argued by Mr Harrison that the telex message
sent and received on Friday, 5 August 1979 constituted a "notice in
writing" within Rule 50(a). Assuming that a telex message may
constitute a "notice in writing" within the meaning of Rule 50,
in my view the telex message sent and received did not specify
"the nature of the proposed alteration to the rules" within the
meaning of Rule 50(a). On the material before me I have formed
the opinion that the applicants have established a prima facie
case that the requirements of Rule 50(a) as to the method of making
amendments to the rules were not compJied with in such a manner as
to permit amendments to be made to the rules at the proposed
meetings of the Federal Council on August 15 or 18.
I also consider that the applicants have established a
prima facie case that the Federal Secretary failed to comply with
Rule 50(b) in that he failed to "give to each Branch Secretary
mot less than six weeks' notice in writing of any meeting of
Federal Council at which an alteration or amendment of" the
rules was proposed - the notice being required to "specify the
nature of the proposed alteration or amendment",
Rule 50(c) requires that "each Branch Secretary shall
call a general meeting of his Branch for the purpose of considcring
the proposed alteration or amendment. Each such Branch meeting
shall be held not less than two weeks prior to the meeting of
Federal Council at which the alteration or amendment is proposed
to be made", It is common ground that no such meeting of the
New South Wales Branch was called or held. Mr Harrison argued
that the applicants should not be permitted to take advantage of
the failure of the applicant Thompson to call a meeting of the
New South Wales Branch. However, the material before me establishes
a prima facie case that the applicant Thompson was not under any
duty to call such a meeting of the New South Vales Branch because
he had not received six weeks' notice in writing of the proposed
meetings of Federal Council.
I also consider that the applicants have established a
prima facie case that the rules did not authorise the Federal
Executive or the Federal Secretary to take action to have the
Federal Council meeting which adjourned in March 1979 resume on
Friday, 17 August 1979, In considering that question I have
carefully considered Rule 13 and Rule 17(e) upon which Mr Harrison
placed particular reliance.
It is strongly arguable that the requirements of Rule 50
as to the amendment of Federal rules are mandatory (sce Morris v.
Federated Liquor and Allied Industries Employees' Union of
Australia (1978) 21 A.L.R. 425 and Roots v. Mutton (1978) 32 F.L.R.
15). Im the light of the material before the Court at this time
I consider that, in respect of paragraph 1 of the present
application, the applicants have made out a prima facie case
within the meaning of the passage which I have quoted from
Beecham's Case (supra).
I am also satisfied that an order granting substantially
the interim relief sought in paragraph 1 of the application (but
altered in form so as to refer only to such resolutions as may
be passed) would be an order "in relation to the matters to which
the proceedings (Matter V. No. 12 of 1979) relate" as required
by s.141(2) (see also s.140(10)). However, I am not satisfied
that the order sought in paragraph 2 of the application (as to
representation of the Federation at the A.C.T.U. 1979 Ricnnial
Congress) would be an order "in relation to the matters to which
the proceedings relate", or an order "in relation to a matter
meh eae
to which the matters raised in the proceedings are relevant" as
required by s.140(10). Mr O'Callaghan was unable to refer me
to any reference to the A.C.T.U. Biennial Congress in (a) the
|
rule to show cause in Matter V. No. 12 of 1979; (b) the affidavit
of the claimant G. E. Sherriff in those proccedings (except a
resolution contained in the Minutes annexed to it) or (c) in the
rules of the Federation - other than Rule 53 which deals with
"where the rules are silent". Accordingly, in my view the Court
has no jurisdiction to make the interim order sought in paragraph 2
of the present application.
It is convenient to refer at this stage to two arguments
put by Mr Harrison that the Gourt should not make an order under
s.141(2) of the Act in al] the circumstances, i.e. that it should
exercise its discretion against making such an order. Ie first
argued that an order made by the Court granting paragraph 1 of
the application would "foreclose" the respondents from subsequently
seeking to raise the question of the validity of the meetings in
the proceedings in the Full Court. I am unable to accept that
submission. S&.141(3) expressly provides that an interim order
"continues in force, unless expressed to operate for a shorter
period or unless sooner discharged, until the completion of the
proceedings under this section", i.e. until the completion of
the proceedings under s.141, the hearing of which is listed to
resume in the Full Court on 17 September 1979, A provision
similar to that which I have just quoted from s.141(3) is
~ 10 -
contained in s.140(11) with reference to an interim order made
under s.140(10). )
Mr Harrison also relied upon the delay in making the
present application. On the evidence before the Court Mr Thompson,
the Secretary of the New South Wales Branch, was absent on leave
from the evening of Friday, 6 July 1979 unLil the morning of
Monday, 235 July 1979. The present application was filed on
Friday, 10 August 1979. On Thursday, 9 August 1979, the
applicant J. S, Thompson had sent to the Federal Secretary,
the respondent L. C. Townsend, a telex stating that he had received
legal advice that neither the telex of 6 July 1979 nor the letter
dated 5 July 1979 and its enclosures which was received on
9 July 1979 constituted notice for the purposes of Rule 50(b).
His telex message proceeded to request confirmation "that no
purported meetings of Federal Council will be held on 15, 17,
and 18, August 1979" and informing the respondent Townsend that
unless he received such confirmation he would apply immediately
to this Court for orders restraining the holding of the mcetings.
I accept the submission by Mr O'Callaghan that the material before
the Court does not warrant a finding that there has occurred any
delay that is relevant to the exercise of the Court's discretion
as to whether to make the interim orders sought.
As to the interim order sought in paragraph 1 of the
present application, having regard to the prima facie case of
a failure Lo comply with the mandatery requirements of Rule
50(a), (b) and (c), I nuw consider the second aspect referred
to in the passage which I have quoted from Beccham's Case
(supra). Although the question is not simply one of convenience -
as the passage quoted shows - it is referred to as the "balance
of convenience" aspect.
On all the material before the Court I am not satisfied
that any inconvenience or injury which the applicants would be
likely to suffer if an interim ordcr as sought in paragraph 1
of the application were refused, would outweigh any injury which
the respondents would suffer if such an interim order were made.
On this aspect the affidavit of the applicant J. S. Thompson
included the following paragraphs:
"13, I say that the proposed alterations to rules and
other matters intended to be considered by the purported
meetings of Federal Council] involve matters of fundamental
importance to the New South Wales Branch and other
branches including the abolition of existing sub-branches,
the restriction of the present rights of branches to
create sub-branches, restrictions on or removal of
the existing rights of branches as to their internal
organisation their relationship with other branches and
their entitlement or representation on Federal Council
purportional (sic) to their membership.
14. JI am concerned that unless restrained by order of
this Honourable Court decisions may be purportedly nade
and acted upon at the said purported meetings of Federal
Council which are contrary to the best interests of the
respondent organisation and the members of the New South
Wales Branch and which may be adopted by reason of the
invalidities referred to in the above proccedings and in
this my affidavit."
However, if any of the proposed meetings of Federal Council
are held aud if any resolutions are made purporting to alter
the rules of the Federation then any such alterations will
"not have effect until particulars of the alteration have been
filed in the office of the (Industrial) Registrar and the
Registrar has certified that the alteration ... has been made
in accordance with the relevant procedures Jaid down by the
rules ..." (s.139(4)). In addition, Mr Harrison has undertaken
that, until the Full Court hag decided the matter, none of the
respondents for whom he appears wil] request the Industrial
Registrar to grant his certificate (under s.139(4)) as to any
@ such alterations to the rules.
If any of the proposed meetings challenged in the present
matter are held and any resolutions are carricd - whether by way
of purported alteration to the rules or otherwise - then it
will be open to the present applicants to apply for a rule to
show cause directing the present respondents to treat any such
resolutions as being null and void and of no legal effect.
If desired an application could be made to have any such
@ proceedings heard and determined by a Full Court. A request
could be made that it be heard by the Full Court dealing with
Matter V. No. 12 of 1979 on 17 September 1979. Further, if any
good reason existed for an earlier determination as to the
validity of any resolutions carried at any such meetings, the
rule to show cause could be made returnable before a single
judge at an earlier point of time for final determination.
Alternatively, an application could be made to a single judge
for the making of interim orders.
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Any such hearing would be at a time when the Court
determining the matter had evidence as to the precise terms of
any resolutions. Further, if interim orders were sought, the
Court would be able to consider the application in the light
of evidence directed specifically to the harm alleged by the
applicant to warrant the making of interim orders. One of the
difficulties of the present case is to consider the question of
likely inconvenience or injury to the applicants in respect of
resolutions which have not yet been passed and which may not
be passed at meetings which have not yet been held and which may
not be held. This difficulty was illustrated by Mr O'Callaghan
who, in answer to a question from the Court as to precisely what
injury or inconvenience would be likely to be suffered by the
applicants if the interim order sought were refused, said (inter
alia) that "there may be other harm we cannot identify".
Mr O'Callaghan referred to two specific matters. One was to
suggest that the respondents intended to forward any altcrations
to the rules to the Industrial Registrar - a matter to which I
have already referred, and as to which Mr Harrison's undertaking
is relevanc. The other matter was to contend that any purported
amendments to the rules at the meetings would proceed without
the proposed amendments having been considered by the New South
Wales Branch. This does not in my view in the circumstances of
this case constitute a sufficient reason for making interim orders
as distinct from making orders if and when the matter is before
the Court for final determination.
8 MUTE tne ily he tegen
.
Lastly, Mr O'Callaghan submitted that the Court should
be astute to deal with any invalid actions. However, as I have
said earlier, he refrained from submitting that the principles
relating to interlocutory injunctions were not applicable to the
present application for interim orders. On those principles in
order to succeed he must satisfy the Court as to the "balance
of convenience" as explained in Beecham's Gase (supra). In my
view the applicants have failed to do so.
Perhaps I should add that on the material placed before
the Court I am also not satisficd that any inconvenience or
injury which the applicants would be likely to suffer if an
interim order, as sought in paragraph 2 of the application, were
refused, would outweigh any injury or inconvenience which the
respondents would suffer if such an interim order were made.
Accordingly, the applicalion is dismissed.