Australian Broadcasting Commission v Parish, Robert James & Ors P.B.L. Marketing Pty Ltd & Ors v Australian Broadcasting Commission Parish, Robert James & Ors v Australian Broadcasting Commission [1980] FCA 40 | Legal Lookup
Australian Broadcasting Commission v Parish, Robert James & Ors P.B.L. Marketing Pty Ltd & Ors v Australian Broadcasting Commission Parish, Robert James & Ors v Australian Broadcasting Commission [1980] FCA 40
Federal Court of Australia
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CATCHWORDS
Trade Practices - Agreement claimed to contravene the Act -
Confidentiality claimed for certain parts - Order
prohibiting publication and restricting inspection refused.
Pleading - Amendment of statement of claim.
Appeal - Function of appeal court —- Ambit of discretion
under s.50 considered ~- Order made prohibiting publication
and permitting inspection to certain persons upon appropriate
undertakings being given.
Federal Court of Australia Act 1976, ss.17 and 50.
AUSTRALIAN BROADCASTING COMMISSION v. ROBERT JAMES PARISH & ORS.;
P.B.L. MARKETING PTY. LIMITED & ORS. v. AUSTRALIAN BROADCASTING
COMMISSION;
ROBERT JAMES PARTSH & ORS. v. AUSTRALIAN BROADCASTING COMMISSION
Nos. G13, Gi4, G15 of 1980.
Coram: Bowen C.J., Franki and Deane JJ.
2 April 1980.
Sydney.
IN THE FEDERAL COURT OF AUSTRALIA)
)
NEW SOUTH WALES DISTRICT REGISTRY) Nos. G13, 14, 15 of 1980
)
GENERAL DIVISION )
ON APPEAL from a single Judge of
the Federal Court of Australia
BETWEEN:
AUSTRALIAN BROADCASTING COMMISSION
Appellant
AND:
ROBERT JAMES PARISH & ORS.
Respondents
BETWEEN:
P.B.L. MARKETING PTY. LIMITED & ORS.
Appellants
AND:
AUSTRALIAN BROADCASTING COMMISSION
Respondent
BETWEEN:
ROBERT JAMES PARISH & ORS.
Appellants
AND:
AUSTRALIAN BROADCASTING COMMISSION
Respondent
ORDER
JUDGES MAKING ORDER: Bowen C.J., Franki and Deane JJ.
DATE OF ORDER: 2 April 1980.
WHERE MADE: Sydney
Appeal in Matter No. G13 of 1980
THE COURT ORDERS that the appeal be dismissed with costs.
Appeals in Matters Nos. G14 and G15 of 1980 :
THE COURT ORDERS:.
L. That the appeals be allowed.
2. That orders 1, 2 and 4 made by the trial Judge on
18 February 1980 be set aside.
3. That such named members and officers of the Australian
Broadcasting Commission and such named legal advisers
and other experts as the trial Judge shall determine
be permitted to inspect the whole of the agreement of
30 May 1979, such inspection to be for the purposes of
this litigation only and to be subject to each person
seeking to inspect as aforesaid undertaking to the
Court that he or she will maintain the confidentiality
of the confidential parts of the agreement referred to
in order 4 hereof and will not divulge the contents of
such parts to any person other than a person permitted
to inspect the whole of the said agreement under the
provisions of this order.
222/38
That until further or other order of the trial Judge
the publication of any confidential parts, namely
clauses 4, 5, 17 and sub-clause 25(b) and those parts
of clause 3 which refer to amounts of money and the
percentage figure expressed in sub-clause (c) and
those parts of clause 13 which refer to amounts of
money, of the said agreemént 'dated 30 May 1979 which
may be in evidence is forbidden to any person other
than a person permitted by order 4 hereof to inspect.
That the respondent pays to the appellants their costs
of the appeals.
That the respondent pays to.the appellants their costs
of-so much of the proceedings before the trial Judge
as related to the orders made by him on 18 February
1980 from which the appeals have been brought.
IN THE FEDERAL COURT OF AUSTRALIA)
)
NEW SOUTH WALES DISTRICT REGISTRY) Nos. G13, 14, 15 of 1980
)
GENERAL DIVISION )
ON APPEAL from a single Judge of the
Federal Court of Australia
BETWEEN :
AUSTRALIAN BROADCASTING COMMISSION
Appellant
ABD:
__ROBERT JAMES PARISH & ORS.
Respondents
BETWEEN:
P.B.L. MARKETING PTY. LIMITED & ORS.
Appellants
AND:
AUSTRALIAN BROADCASTING COMMISSION
Respondent
BETWEEN :
ROBERT JAMES PARISH & ORS.
Appellants
AND:
AUSTRALIAN BROADCASTING COMMISSION
Respondent
Coram: Bowen C.J., Franki and Deane JJ.
o APRIL i980.
°
"
-2-
REASONS FOR JUDGMENT
BOWEN C.d.: These appeals were heard together. I have had
the opportunity of reading the reasons for judgment of my
brothers Franki and Deane. 'The course of the proceedings and
the facts are fully stated by them and I shall not repeat
them.
Appeal in Matter No. 13 of 1980
This appeal was brought by the Australian Broadcasting
Commission (the "A.B.C.") against two judgments of the learned
trial Judge given on 14 and 15 February 1980 refusing to allow
certain amendments to its amended statement of claim. I agree
with the judgment of Deane J. In my opinion this appeal
should be dismissed with costs.
Appeals in Matters Nos. 14 and 15 of 1980
The appeal in matter No. 14 was brought by the first
fourteen respondents to the proceedings below being the
members of the Australian Cricket Board (the "Board"} and the
appeal in matter No. 15 was brought by the fifteenth,
sixteenth and seventeenth respondents to those proceedings,
P.B.L. Marketing Pty. Limited ("P.B.L."), World Series Cricket
Pty. Limited ("World Series Cricket") and Publishing and
Broadcasting Limited ("Publishing and Broadcasting"). Both
appeals were against a judgment of the learned trial Judge
given on 18 February 1980. His Honour refused an application
-3-
under s.50 of the Federal Court of Australia Act 1976 for an
order forbidding or restricting the publication of certain
parts of an agreement dated 30 May 1979 specified as
"confidential parts".
I am in agreement with the conclusion of Franki J. on
these appeals, namely, that the appeals should be allowed and
that orders should be made permitting the inspection of the
whole agreement only by such named members and officers of and
named experts nominated by the A.B.C. as the trial Judge may
determine stibject to appropriate undertakings to maintain
confidentiality of the "confidential parts" and forbidding the
publication of the specified "confidential parts", except
clause 6(c), which is already publicly known. I agree also
with his proposed orders regarding costs. However, I will
state my own reasons in relation to confidentiality.
The question whether, in the course of. the hearing of a
matter an order should be made under s.50, is in my opinion a
matter within the discretion of the trial Judge. Accordingly,
although an appeal lies of right, this Court should not
interfere with the Judge's exercise of his discretion unless
it appears that some error of the kind referred to in House v.
The King (1936) 55 C.L.R. 499 at pp.504-505 has been made.
Where the error suggested is that the primary judge failed to
give sufficient weight to some particular matter, this may,
but will not necessarily, justify a reversal on appeal (Lovell
v. Lovell (1950) 81 C.L.R. 513 at pp.518-520 and pp.532-533);
Australian Coal and Shale Employees Federation v. Commonwealth
ry
-~-A-
iA
(1953) 94 C.L.R. 621 at p.627). It is never enough in matters
of discretion that an appellate court, left to itself, would
have arrived at a different conclusion. What was said in
Warren v. Coombs ((1979) 53 A.L.J.R. 293) is not applicable to
cases of discretion (Gronow v. Gronow (1979) F.L.Cc. 78,844,
H.Ct. at pp.78,848-9 and pp.78,857 and 78,859). Before it
decides to interfere with the exercise of a discretion, an
appellate court must be well satisfied that the primary judge
was plainly wrong, his decision being no proper exercise of
his judicial discretion (Gronow v. Gronow, supra, per Stephen
J. at p.78,848).
The question is whether a relevant error appears. To
answer this question it is necessary to consider the terms in
which the discretion is conferred and what is the correct
approach to-take in reaching a decision upon the exercise of
the discretion-in the particular case.
This Court is a court established by statute. It is clear
from sub-s.17(1) of the Federal Court of Australia Act 1976
'that in general it .is obliged to exercise its jurisdiction in
open court. This provision gives statutory force to the
principle that justice must be administered publicly in open
court and gives recognition to the weight of public interest
which attaches to that principle.
However, sub-s.17(4) and s.50 provide for encroachment
upon that principle. Under sub-s.17(4) the public or some of
'the public may be excluded where the Court is satisfied their
presence would be "contrary to the interests of justice". We
-~5-
are all familiar with cases where this would be so. Thus, it
is common to exclude persons who are to give evidence, lest
they be led to trim their evidence. Again, where
demonstrators or rioters would disrupt the proceedings, it may
be in the interests of justice to exclude them. The
categories of cases where exclusion will be proper are not
closed. It will lie in the discretion of the judge, bearing
in mind the injunction contained in sub-s.17(1) and taking
into consideration the interests of justice referred to in
sub-s.17(4).
Under s.50 an order may be made forbidding -or- restricting
the publication of particular evidence-or -the namd of a party
or witness where it appears to the Court "to be necessary in
order to prevent prejudice to the administration of justice or
the security:of the Commonwealth". | Again, cwe''are familiar
with cases where an ordtr forbidding or wvestricting
publication is appropriate. . Thus, where the proceedings
concern a secret process and publication of the process would
destroy the subject matter of the proceedings and render them
nugatory, an order is necessary to prevent prejudice to the
administration of justice. Where proceedings are "brought to
restrain publication of confidenttal material, similar
considerations apply. Disclosure would prejudice the Court's
proper exercise of the' function it was appointed to discharge,
to do justice between the parties. The possible cases where
an order may be necessary to prevent 'prejudice to the
administration of justice range fairly widely. The categories
-6-+
of this public interest are not closed and must alter from
time to time whether by restriction or extension as social
conditions and legislation develop (see D. v. National Society
for Prevention of Cruelty to Children [1978] A.c. 171 per Lord
Hailsham at p.230; Science Research Council v. Nasse [1979] 3
W.L.R.- 762 per Lord Fraser at p.784 ~ cases concerning
discovery).
The importance of the principle of open justice is not in
doubt (see Scott v. Scott [1913] A.C. 417; Russell v. Russell
(1976) 134 C.L.R. 495 per Gibbs J. at p.520) nor is the need
to depart from it in the interests of justice on occasion (see
Attorney-General v. Leveller Magazine Limited [1979] 2 W.U.R.
247 per Lord Diplock at p.252; cf. Halcon International Inc.
v. The Shell Transport and Trading Co. [1979] R.P.c. 97.
Cases which deal with the course a.Court should follow where
there are no sections correspoviding. With ss:17 and 50,
although illuminating and helpful are not decisive for a Court
constituted by an Act containing those sections. Such a Court
has the slightly different task of interpreting and applying
the statute which governs it.
Open justice is the underlying assumption of s.50, not the
criterion it prescribes. The section refers to preventing
"prejudice to the administration of justice". This is not a
reference to the need to preserve open justice. It is, as I
have already suggested, a reference to another public
interest, that is, the public interest that the Court should
endeavour to achieve effectively the object for which it was
appointed: to do justice between the parties.
-7-
Tt is not possible to define in advance the degree of
prejudice to the administration of justice, which will justify
the making of an order under s.50. The collocation of the
alternative phrase "security of the Commonwealth" suggests
Parliament was not dealing with trivialities. The case where
failure to make an order under s.50 would lead to the
destruction of the very subject matter of the suit would seem
to be the kind of case which might ordinarily attract the
exercise of the discretion. The refusal to make an order in
such a case might well defeat the purpose of achieving justice
between the parties and disappoint the. public interest in
having the Court deal responsibly with the-confidential
affairs of citizens.
Section 50 says the Court may make such ocder forbidding
or restricting publication of certain things as appears to the
Court to be necessary iw order to pievenc prejudice to the
administration of justice. In exercising this discretion, I
am of opinion the Court should also take into account what
s.50 does not mention in terms but what.is the underlying
assumption upon which it is based, namely, the principle of
open justice. The English language does not readily provide
the means of describing the process by which this is taken
into account. It is a process of judgment. A useful metaphor
is that of weighing in the scales the various factors
involved. It might be said the process is more complex than
such a metaphor would suggest (see Science Research Council v.
Nasse, supra at p.771); put that metaphor is the best
available.
-~ 8-+
Weighing in the scales the countervailing public interests
involved, the discretion whether or not an order should be
made and upon what terms, has to be exercised.
Turning to the facts of the present case, it is clear that
the principle of open justice, reflected in sub-s.17(1),
involves: weighty considerations having regard to the nature of
the issues raised by the pleadings and the importance of the
agreement of '30 May 1979 to the resolution of those issues.
On the other hand, the applicants have made out a substantial
case for the necessity: of an order under s.50 to prevent
prejudice 'to the administration of justice,- i.e. prejudice to
that other .-public interest of doing 'justice 'between the
parties. If the A.B.C. is successful at the trial in showing
the agreement is contrary to the Trade Practices Act, the
agreement will fall -to the+ground and -the question of
confidentiality with it...j3# the A.B.C. is. unsuccessful, then
the respondents ought'to- beable to expect to continue under
an agreetment which remains with its efficacy and value not
destroyed or seriously damaged by the proceedings themselves.
The learned trial Judge reached the following conclusion:
«-- the dissemination of the contents of the
confidential parts of the agreement will, according
to the evidence, seriously weaken the negotiating
strength of the Board and may~:well require the
respondents (appellants) to reconsider their
adherence to the agreement."
While falling short of a finding that disclosure of the
confidential parts will destroy the efficacy or value of the
agreement, this conclusion comes not far short of that. The
-9-
position appears to me to be analogous to the position in
those cases where confidential information is the subject
matter of the proceedings. It is in the interests of the
administration of justice that the very proceedings before the
Court should not be permitted to destroy or seriously
depreciate the value of such confidential information, If it
were otherwise, not only might the parties -and members of the
public consider the Court was not paying proper regard to
confidentiality but also it might open the way to abuse.
This is not a case where there is any express provision as
to confidentiality in.the agreement itself., However, it is
clear from the -conduct of the -parties that they.have at ail
times treated the agreement as having confidential parts.
These. parts were excluded frém the Trade Practices
Commission's Register and so' far they have not:been.published.
'At the interlocutory stage there was an agrecaent between ¢eLl
parties to keep them confidential.
In the result, I am of opinion>a case has been made out
for an order under s.50 at this stage. It is true that this
would encroach on the principle of open justice, but it is
implicit in s.50 that this result must be faced when the
Court is considering whether to make an order under s.50. 'he
degree of encroachment will depend on a number of factors,
including the degree of restriction in the order. It is, of
course, clear that any order made should be in such terms that
it ensures:as far as possible that justice will be done
between the parties. Thus, it should provide for disclosure
- 10 -
of all parts of the agreement to the legal representatives and
the nominated officers and experts of the A.B.C., subject to
appropriate undertakings. All parts of the agreement will, of
course, be before the Court. Furthermore, such an order under
s.50 should be expressed to operate until further order. The
view I have expressed is based upon the pleadings and the
facts, including the agreement, as they have so far been
revealed. It may be that as the case progresses,
circumstances will become apparent which would require a
review of the order.
There is no question that the whole of the agreement
including the confidential parts:+would pe admissible in
evidence in the proceedings before the trial Judge. An order
restricting publication would mearm that although the major
clausés could be discussed in-open: court, the confidential
parts, which relate to Yinaaciai arrangements wectween the
parties, would have 'to be deait in general rveterential terms,
I turn now to the reasons for judyment' of the learned
trial Judge.
i do not find it possible to bring the matter into relief
by quoting a sentence or two from his Honour's reasons for
judgment. However, upon my ieading of those reasons as a
whole, I gain the impression that his Honour weighed on the
one hand the wishes and commercial interests of the
respondents (private interests) and on the other hand what he
regarded as a serious derogation from the principie of open
justice, if not a reversal of it (public interest). It is,
-ill-
perhaps, not. surprising that adopting this approach he found
the public interest in maintaining the open court principle
outweighed the private interests of the litigants.
It is in relation to this approach that, with all respect
to the learned trial Judge, I find myself differing from him.
What s.50 requires to be considered is prejudice to the
administration of justice. The elements in the administration
of justice which are involved on the side of a Jitigant
seeking an order for confidentiality are the public interest
in preserving the privacy of confidential arrangements so far
as practicable and the public interest in the:Court's doing
justice between the parties, which will be hampered if the
very proceedings in which the agreement is under challenge
require the efficacy and value of the agreement to be
seriously 'damaged, iff noi destroyed, before' the' result of the
proceedings is determined. - It appects to*me 'that Lhe leacired
trial Judge has not identified this -public interest correctly.
On the other side, is the principle of open justice. In
according weight to this principle, the' learned trial Judge
appears to me to have accorded to it almost the weight it
would have if there were to be a very substantial, if not a
complete derogation from it. In 'such a case, it would, of
course, have immense weight.
Although the principle of open justice is of great
importance in exercising the discretion under s.50, it is not
necessarily the whole weight of that principle which must be
placed in the scales. The derogation from the principle,
- 12 +
which is involved in making any order under s.50, may be very
great; or it may not be great; it may be very small. In
placing that principle in the scales, the degree of derogation
involved in the proposed order is an important matter to be
considered.
It may be suggested that any encroachment is a threat to
the principle. Warning has been given against judges being a
party to creeping erosion of the principle of open justice by
their decisions in individual cases (see Scott v. Scott [1913]
A.C. 417 at pp.477-478). But this Court is governed by its
statute. Sections 17 and 50 must be applied. ' What I stress
is that in applying s.50, the degree of encroachment involved
in the order proposed, is an important factor co be weighed in
the scales. No doubt, ss.17 and 4540 will continue to be
applied with a full sense of responsibility. as they have been
in the' past.- i see no present danger-that chis Court may
become a closed court or may adopt a praccice of unduly
restricting. -public access to evidence' or-to the names of
parties or witnesses. That is certainly something to be
guarded against.
In dealing with the extent of the derogation from the
principle of open justice in the present case, the learned
trial Judge said:
"The agreement is, as I have said, at the heart of
the litagation and it would present but a partial, 1f
not @istorted, picture of the Litigation if the
public were denied access to the whole of the
agreement for assuredly the whole agreement will be
canvassed and the applicant will seek to relate the
- 13 -
contents of each part of the agreement to the issues
to be decided. Even if the respondents should
ultimately be proved right in their submission that
the contents of the confidential parts will prove
irrelevant to the issues to be determined - a
proposition which I do not presently find it
necessary, to decide and which is by no means self-—
evident - that conclusion will itself be part of the
litigation to which the public is entitled to access.
To make an order restricting publication would
deny to the public an opportunity of adequately
appreciating the nature and course of the proceedings
by which the issues are to be determined." '
I have two difficulties with this. First, while the
A.B.C. will no doubt .seek to relate the: "confidential parts"
-of the agreement concerning finance' asr well as 'the positive
exclusionary provisions to the issues -concerning breach of
ss.45 and 45A, it ts the positive exclusionary -provisions
which are at_the heatt- of the matter, "If the. financial
provisions, which: it may weld 'turn-oute drriltele more than
give added colour and point.to the exclusionary. provisions,
are indeed held to be immaterial, 'it seems the :appellants
should not .in the very process of establishing that fact in
order to assert the right claimed by them' to have~these parts
of the agreement treated as .confidential; have- that right
destroyed or seriously damaged.
Secondly, -I have difficulty 'with his Honour's conclusion
that the public would be prevented from having a proper
picture of the litigation. Later-his Honour said:
- 14 -
"Though the loss of confidentiality will be a
serious matter for the respondents, it would be a
graver matter to shut out the public from an adequate
appreciation of the foundations upon which the case
is to be decided."
The question which troubles me here is whether the public
would be denied "an adequate appreciation of the fvuundations
on which the case is to be decided".
In the present case, the amended statement of claim
alleges various contraventions of the Trade Practices Act
arising from or related to the agreement. These may be
summarised as follows:
1. The agreement is alleged to contain an exclusionary
provision, within s.4D and in contravention of s.45
'(paragraph 11).
2. The agreement is alleged .to contaiu a provision thai
has the purpose:or- effect? of likely effece of
substantially lessening competition in contravention
of ss.45 and 45A (paragraph 12).
3. It is alleged the Board, by entering into the
agreement, has aided and abetted these contraventions
(paragraph 13).
4. It is alleged that effect has been given to the
exclusionary provision in contravention of the Trade
Practices Act (paragraph 14).
5. It is alleged that effect has been given to the
provision having the purpose or effect or likely
- 15 -
effect of substantially lessening competition
(paragraph 15).
6. It is alleged that by giving effect to the agreement
the Board has aided and abetted the contraventions
(paragraph 16).
It is clear that in order to make good these claims it
will be necessary:to rely upon the whole of the agreement and
the circumstances to which it applies.
The agreement of 30 May 1979 has twerity-five clauses. If
the order sought. under s.50 was: 'made; nineteen of these
clauses*(namely,*1], 2, 6, 7, 8, 9;°10;°11}-12; 14} 15, 16, 18,
19, 20,°21, 22, 23 and 24) would be completely open to the
public;- two would be open to ithe 'public' save for the
exclusion of certain 'monetary Eiguces "(naiel y ; +3 aad 13)? one
would be dpen save-for the exclugion «df ond part Géaling with
financial -arrangements '(namely;'25} andvohree clauses relating
to financial-arrangements would be-wholly excluded (namely, 4,
+5 and 17); For compketeness, it should be méntioned that the
'amended statement of claim-also refers to an agreement of 21
November 1979 which amended the agreement of: 30 May 1979.
This agreement of 21 November 1979:contains two brief clauses
not particularly material to the issues in the' case. No
confidentiality is claimed for it.
On the appeal -the issues there arisind'were dealt with by
a short hearing excluding the public when the Court was taken
through the agreement including the "confidential parts"
o
- 16 -
followed by the main part of the hearing when full argument
took place, references being made in the course of argument in
general referential terms only to the "confidential parts".
My strong impression is that the public would have had no
difficulty in following the argument notwithstanding they
would not have had the "confidential parts" before them.
At the trial of the matter it appears to me it would be
practicable to follow a similar course. It is true that at
the trial the issues will be different from those on the
appeal. Such a course will be more difficuit to follow. It
could 'well be that more cogent parts of the argument than was
the case on the appeal would be Shrouded from the public by
the unavailability to them of the "confidential parts". But I
am not persuaded it would be impracticable for the public to
follow the argument intelligently and:to appreciate adequately
the fundamental questions involved, 'even in the.absence of
knowledge of the details -of the financial arrangements in the
agreement. This last conclusion tis.one ak 'which I have
arrived with some hesitation, because the learned trial Judge,
who was engaged in conducting the trial, arrived at a
different conciusion.
However, having regard to all the matters which I have
discussed, I have come to the conclusion that the learned
trial Judge erred in principle in applying s.50 and that his
exercise of discretion miscarried. I would allow the appeals
in matters Nos. Gl4 and G15 of 1980. I agree with the orders
proposed by Franki J.
Teceéadineé Tiu5ss are a true copy of the
/ " a
4 "ip LA Roar: ig dir Tu. 7 2. Lewin oF has Eenour:
Y . 2 +4 vs a .
IN THE FEDERAL COUR OF AUSTRALIA)
)
NEW SOUTH WALES DISTRICT REGISTRY) Nos. G13, 14, 15 of 1980
GENERAL DIVISION
)
)
ON APPEAL from a single Judge of the
Federal Court of Australia
BETWEEN :
AUSTRALIAN BROADCASTING COMMISSION
Appellant
AND:
ROBERT JAMES PARISH & ORS.
Respondents
BETWEEN :
P.B.L. MARKETING PTY. LIMITED & ORS.
Appellants
AND:
AUSTRALIAN BROADCASTING COMMISSION
Respondent
BETWEEN :
ROBERT JAMES PARISH & ORS.
Appellants
AND:
AUSTRALIAN BROADCASTING COMMISSION
Respondent
Coram: Bowen C.J., Franki and Deane JJ. -
Wednesday 2 April, 1980.
Sydney
REASONS FOR JUDGMENT
FRANKI J.
These are three appeals against decisions of a single
judge of this Court. They have arisen in proceedings brought by
the Australian Broadcasting Commission ("the A.B.C.") against Mr.
Parish and thirteen other members of the Australian Cricket Board
("the Board") and three corporations, namely P.B.L. Marketing
Pty. Limited ("P.B.L."), World Series Cricket Pty. Ltd.
("w.S.C."), and Publishing and Broadcasting Limited.
The Board, P.B.L., W.S.C. and Publishing and
Broadcasting Limited entered into an agreement on 30 May 1979
("the agreement"), as amended by an agreement of 21 November
1979, in relation to the promotion of cricket matches in
Australia and certain commercial aotivities associated with those
matches. On 21 December 1979 the A.B.C. commenced the
proceedings alleging, inter alia, that the agreement, as varied,
was contrary to s. 45 of the Trade Practices Act, 1974 ("the
Act"). The amended statement of claim alleged, inter alia, a
contravention by entering into the agreement or the amended
agreement, or both, or by giving effect to the agreement or the
amended agreement or both. Application was made for interlocutory
relief but this was refused. The matter was given an early date
for hearing and commenced before a judge of this Court early in
February 1980.
The first appeal, No. G1i3 of 1980, was brought by the
A.B.C. against two judgments of the learned trial judge refusing
to allow certain amendments to its amended statement of claim. I
have had the opportunity to read the judgment of Deane J. and I
agree with his reasons and the conclusions he has reached in this
appeal. In my opinion, this appeal should be dismissed with
costs.
The second appeal, No. G14 of 1980 was brought by the
first fourteen respondents to the action and the third appeal,
No. G15 of 1980, was brought by the fifteenth, sixteenth and
seventeenth respondents to the action. Both the second and third
appeals were brought against a judgment of the learned trial
judge of 16 February 1980 whereby the respondents were ordered to
produce the agreement for the inspection of the applicant.
During the interlocutory proceedings certain parts of
the agreement of 30 May 1979 were claimed by the respondents to
be confidential, and, by consent, they were so treated. By
letter of 22 January 1980 the solicitors for the appellants wrote
to the solicitor for the respondent in relation to the agreement.
The last paragraph of that letter reads:
"We note your undertaking this afternoon
that those parts of the agreement of 30
May, 1979 which hitherto have been kept
confidential, and documents relating to
the financial provisions of that
agreement, will be kept confidential to
you and to your Counsel and will not be
disclosed to other officers or employees
of the Commission."
The parts of the agreement which were referred Lo as
having been kept confidential were several clauses in the
agreement and the figures in certain other clauses of the
agreement.
On 12 February 1980 the statement of claim was amended
to introduce references to certain clauses of the agreement which
had not been previously referred to and which were within those
referred to as having been kept confidential in the letter of 22
January 1980.
Sections 17(4) and 50 of the Federal Court of Australia
Act provide:
"17(4) The Court may order the exclusion
of the public or of persons specified by
the Court from a 'sitting 'of the Courc
where the court is' satisfied that the
presence of the public or of those
persons, as the case may be, would be
contrary to the interests of justice.
50. The Court may, at any time during
or after the hearing of a proceeding in
the Court, make such order forbidding or
restricting the publication of particular
evidence, or the name of a party or
witness, as appears to the Court to be
necessary in order to prevent prejudice
to the administration of justice or the
security of the Commonwealth."
During the course of the proceedings, which commenced
in February 1980, the trial judge made certain orders under
ss.17(4) and 50 of the Federal Court of Australia Act, 1976,
which had the effect of certain evidence being given in closed
Court and the transcript of that evidence and parts of the
relevant agreement being only available to counsel and solicitors
advising the parties. During the proceedings before the trial
judge the A.B.C. tendered a complete copy of the agreement. The
Board then asked for an order restricting the publication of that
agreement except to counsel for the A.B.C. or any counsel or
solicitor appearing for the respondents. Any order restricting
the publication of the agreement was opposed by the A.B.C. The
trial judge then suggested that the question of whether any order
should be made under s.50 of the Act could be decided as though
it were a contested application for inspection of a document
discovered. The Board did not agree that this was an appropriate
eriteria. The A.B.C. then declined to tender the agreement on
the basis that an order under s.50 would be made. The issue
before the trial judge then appears to have been whecher the
whole of the agreement- should be made available for the
inspection of the respondent and its servants and agents and
tendered in evidence without any order being made which would
have the result of those clauses in the agreement for which
confidentiality was claimed being freely discussed and disclosed
to the public in open Court. The appellants took the view that
this was a matter of great concern to them. Mr. Parish, who was
chairman of the Board, and who had been Chairman for more than
four years, and a Mr. Taylor, the managing director of both
P.B.L. and W.S.C., gave evidence. At the conclusion of the
evidence, which had been given in camera, the question of whether
the Court would be closed under s.17(4) and/or an order made
under s.50 was argued at length and the trial judge gave a
detailed judgment on the matter which appears to have brought
about the position that if the orders under appeal stand the
whole of the agreement, including those clauses which had
previously been treated as confidential, and presumably, at least
at some stage, the whole of the Court proceedings including any
parts when evidence in relation to those clauses in the agreement
which had been treated as confidential were under consideration,
will be available to the parties and to the public. Certain
other exhibits were involved in the orders but no separate
submissions were addressed to us with respect to them.
Two questions emerge and I consider it is important to
keep these questions separate.
The first question is to whom should. the confidential
parts of the agreement already discovered and of any evidence
given in relation to those parts be disclosed. The appellants,
during the proceedings before the trial judge and before us,
offered to make available for the purposes of the litigation, the
whole of the agreement and any evidence given in closed Court, to
the legal advisers of the parties and to appropriate named
persons, provided proper undertakings. were given by such persons
to treat the information as confidential. No consideration had
been given by the A.B.C. to any particular persons whom it wished
to see any confidential material. Since this judgment was
reserved, the solicitor for the A.B.C. has sent a letter to the
Registrar setting out the names or the description of certain
persons for whom access to the whole of the agreement was sought.
I am quite satisfied that, subject to appropriate
undertakings as to confidentiality, discovery should be made to
certain appropriate senior officers of the respondent and to
named legal or specialist advisors from whom the respondent might
reasonably wish to receive expert advice in relation to the
conduct of the case. I will refer to this question later. A
well known procedure for this is often used in cases where some
matter of confidence is to be considered and the procedure is
substantially in accord with that offered by the appellants. In
Warner-Lambert Co. v. Glaxo Laboratories Limited [1975] R.P.c.
354, the defendants were claiming that the persons to whom
certain processes should be disclosed. upon discovery should be
limited. On appeal, which was heard in camera, the Court of
Appeal varied the order of the trial judge. The defendant in
those proceedings sought to protect the details of certain
processes it conducted and which were said to infringe the
plaintiff's patent. The proceedings were not to protect the
defendant's property. Buckley L.J., with whose judgment Orr L.J.
concurred, delivered the main judgment. Russell L.d., in
substance, agreed with Buckley L.J. Buckley L.J. dealt with the
relevant authorities on the question of the extent to which the
defendant should be required to disclose its process to
representatives of the plaintiff. The course taken was said to
be "best calculated to serve the interests of justice." At p.
356 he said:
"If the value of the defendant's process
did not lie, in part at least, in the
secrets associated with it, the plaintiff
upon showing that there is a substantial
and genuine issue of infringement to be
tried would normally be granted as an
<interlocutory step in the action
disclosure by the defendant of its
process without the imposition of any
terms restricting the use of the
information so obtained. In the present
case, however, if this course were to be
adopted and the plaintiff were to fail in
the action,' the defendant might be
seriously prejudiced. If, on the other
hand, there were no disclosure, the
plaintiff might be unduly hampered in
proving his case. An infringer should
not be assisted in protecting himself by
~ non-disclosure of matters which in the
normal way would be the subject of pre-
- trial discovery. In such a case a
controlled measure of disclosure seems
best calculated to serve the interests of
justice. The course which has been taken
in a number of such cases has been to
direct disclosure to selected individuals
upon terms aimed at securing that there
will not be either tse .or further
disclosuve of -~theicmfuimatzon in vays
"which might prejudice the defendant."
At p. 360 his Lordship said that the Court should be
particularly careful rot to expose the defendant to any
unnecessary risk of its trade secrets leaking to any competitors.
Disclosure had been made to the plaintiff's counsel, solicitor
and patent agent and to a scientific expert selected by the
plaintiff. The Court limited further disclosure to the principal
executive officer of the plaintiff on terms that he would not
disclose the information to anyone else without the consent of
the defendant or by leave of the Court. Some doubt was expressed
in disclosing the information even to the principal executive
officer but Buckley L.J. pointed out that strong grounds must be
required for excluding the principal from knowledge which his
agents properly acquire on his behalf. See also Halcon
International-Inc. v. The Shell Transport and Trading Co. [1979]
R.P.C. 97 at pp. 117-118. Some general principles as to
discovery of confidential material are set out in D. v. National
Society for the Prevention of Crueity to Children [1978] A.C.
171; Church of Scientology of California v. The Department of
Health and Social Security [1979] 1 W.L.R. 723 at pp.732-734 and
pp. 746-747; and Science Research Council v- Nassé [1979] 3
WeG&.R, 762.
The second question is altogether different and it
arises when the parties to-'the litigation, or their advisers,
have had such access to any-documents, 'or evidence eas the Court
considers necessary for the presentation of their cases.
This second question invoives a consideration of what
was referred to by the learned trial 'judge as the principle of
"open justice within the Court. room". In my opinion the learned
trial judge did not approach either the first or the second
question in the correct way. 'There was no doubt that the whole
of the document alleged to embody the-agreement was admissible in
evidence. The learned trial judge said at p. 13:
"If an order should now be made for
production, the right to a wider
inspection than that provided for in the
solicitor's arrangement should depend
- 10 -
upon the order made under s.50 of the
Federal Court of Australia Act 1976 to
which I shall come in due course."
I do not see why this is so. In my opinion the question
of the right to inspect is an entirely different question to that
which arises when the document is tendered in evidence. If the
whole of the document is relevant then it must be admitted in
evidence without any part being excluded but it does not follow
that some order should not be made under s.50 of the Act.
In his judgment the learned trial judge made reference
to a great number of cases relating to the principle of "open
justice" but all these cases were cases dealing with the position
where the Court was not given any powers corresponding to those
in ss.17(4) and 50. Even in cases where no such provisions
exist it is clear that, in certain. cases, it is appropriate to
hear matters in camera or at least to restrict the publication of
certain parts of the proceedings. The power of a Court to hear
a matter in camera was considered by the House of Lords in Scott
v. Scott [1913] A.c. 417. It was decided in that case that an
order which had been made to hear certain proceedings in a
nullity suit in camera was made without jurisdiction. All the
members of the House of Lords dealt with the principle that
proceedings in, Court should be heard in public and Viscount
Haldane at p.437 said:
- ll -
"While the broad principle is that the
Courts of this country must, as between
parties, administer justice in public,
this principle is subject to apparent
exceptions, such as those to which I have
referred. But the exceptions are
'themselves the outcome of a yet more
fundamental principle that the chief
object of Courts of justice must be to
secure that justice is done."
A little later after referring to litigation where
process was involved the Lord Chancellor said:
At p.
439 the
"The other case referred to, that of
litigation as to a secret process, where
the effect of publicity would be to
destroy the subject-matter, illustrates a
class which stands on a different
footing. There it may well be that
justice could not be done at all if it
had to be done in public. As the
paramount object must always be to do
justice,. the general..rule as to
publicity, after-ahivcnky the -means to an
end, must accordingly yields But the
burden lies on those seeking to displace
its application in the particular case
to make out that the ordinary rule must
as of necessity be superseded by this
paramount consideration."
Lord Chancellor continued:
"I think that to justify an order for
hearing in camera it must be shewn that
the paramount object of securing that
justice is done would really be rendered
doubtful of attainment if the order were
not made."
a secret
-12-
Lord Halsbury at p. 443 said that he hesitated to accede
to the width of the language used by the Lord Chancellor. Lord
Loreburn said at p. 446:
"It would be impossible to enumerate or
anticipate all possible contingencies,
but in all cases where the public has
been excluded with admitted propriety the
underlying principle, as it seems to me,
is that the administration of justice
would be rendered impracticable by their
presence, whether because the case could
not be effectively tried, or the parties
entitled to justice would be reasonably
deterred from seeking it at the hands of
the Court.
Applying. this principle to proceedings
For nullity, if the Court is satisfied
that to insist upon publicity would in
the circumstances reasonably deter a
party from seeking redress, or interfere
with the effective trial of the cause, in
my opinion an order for hearing or
-partial hearing in camera may lawfully be
made."
In Attorney-General v. iLeveller Magazine Ltd. [1979] 2
W.L.R. 247 the House of Lords discussed the question of a court
sitting in camera. Lord Diplock at p. 252 referred to Scott v.
Scott, supra, and pointed out that at least in criminal cases the
general rule required that all evidence communicated to the Court
should be communicated publicly. His Lordship proceeded:
"However, since the purpose of the
general rule is to serve the ends of
justice it may be necessary to depart
from it where the nature or circumstances
of the particular proceeding are such
that the application of the general rule
in its entirety would frustrate or render
impracticable the administration of
justice or would damage some other public
-13-
interest for whose protection Parliament
has made some statutory derogation from
the rule. Apart from statutory
exceptions, however, where a court in the
exercise of its inherent power to control
the conduct of proceedings before it
departs in any way from the general rule,
the departure is justified to the extent
and to no more than the extent that the
court reasonably believes it to be
necessary in order to serve the ends of
justice."
At pp.258-259 Viscount Dilhorne said:
"The courts have, however, inhetent
jurisdiction to sit in camera if that is
necessary for the due administration of
Justice."
Viscount Dilhorne then sets out part of the passage from Lord
Loreburn's speech in Scott v. Scott, supra, 'at-p..-446 which I
have quoted previously.
Lord Scarman at pp.270-271 referred to the exceptions to
the rule of common law that justice must be administered in
public and cited with approval that passage from Viscount
Haldane's speech from p. 439 which I cited previously.
Whilst the order from which appeals Nos. Gl4 and G15 of
1980 are brought is one made in the exercise of a discretion of
the trial judge, and aithough in one sense it is not
determinative of substantive legal rights, nevertheless I am
satisfied that this Court should interfere because I consider
-14-
that the learned trial judge acted upon a wrong principle and
that an injustice will result from his order.
In R. v. Tait and Bartley (1979) 24 A.L.R. 473 the Full
Bench of this Court considered the question of a Court sitting in
camera in a case where no specific statutory provision existed
for ic to sit in camera. The Court pointed out that even then
there were several established exceptions which justify the
closing of a Court. It is to be noted that at p.479 the Court
aid in fact order that certain documents which were received by
it in open Court were not to be published until further order.
It does not appear that any further order has been made.
It seems clear that, apart from any statutory power to
close a Court or 'to prohibit the publication of evidence, the
Court: .-has an obligation to consider the need to ensure that
justice is done.
The learned trial judge, in my opinion, did not pay
sufficient regard to the need to do justice between the parties.
The legislature has seen fit to include specific powers in
ss.17(4) and 50 of the Act. It must have been intended that the
Court would exercise those powers where it seemed desirable so to
do in the interests of justice. The learned trial judge said at
p. 19 of his judgment:
- 15 -
"It is not merely a matter of arranging
the procedures of the Court to suit the
wishes or convenience of the parties
before it. It is not their rights which
are liable to be trespassed upon, but the
rights of the public - the individual
-members of the public, the press, and the
audience to which the proceedings of the
Court may ordinarily be transmitted
without let or hinderance."
His Honour at p. 20 continued:
In my opinion his Honour,
"No doubt when, in the course of
proceedings under the Trade Practices
Act, "some confidential matter of minor
importance appears, and the loss of
confidentiality is a grave matter with
the trader, no harm is done by making an
order prohibiting publication. In such a
case the principal' facts of the case
remain exposed to-public scrutiny, and
the dérogation from.the principle of open
justice is a minor .one. *But if the
mdtter be of importance to the resolution
"of, the-wase, "her anmvotdemxwould make
substantial inroad upon the rights of the
public and would substanttaily- expose the
processes of justice to the risks against
which publicity is a safeguard."
in the passage just cited,
is
not paying due regard to the importance of doing justice between
the parties.
His Honour also found upon the evidence,
after
saying that he accepted the evidence of Mr. Parish and Mr. Taylor
as entirely truthful and that the concern which they expressed
about the effect of confidentiality was honestly held,
dissemination' of the contents of the confidential parts of
agreement would, according to the evidence, seriously weaken
negotiating
strength of the Board and may well reguire
that
the
the
the
the
- 16-
appellants before us to reconsider their adherence to the
agreement. His Honour then said at p. 22:
' Before us ~it was-argued that
"To make an order restricting publication
would deny to the public an opportunity
of adequately appreciating the nature and
course of the proceedings by which the
issues are to be determined. Though the
loss of confidentiality will be a serious
matter for the respondents, it would be a
graver matter to shut out the public from
an adequate appreciation of the
foundations upon which the case is to be
decided."
the 'learned trial judge
ought to have given greater regard than he did to whether or not
che parts of- the
confidential,
agreement, which had been treated as
and had not been- claimed to be relevant until the
-pleadings were amended on 12 February: 1980, were. relevant. (n my
> opinion his Honour has taken the view that. tne possibility of the
public not being able to appreciate' adequately the nature and
course of the proceedings and the issues to be determined
outweighed the necessity of doing justice between the parties. [
do not see how justice can be done between the parties when a
document is made public,
not for the purpose of the judge coming
to the correct conclusion, but merely for the purpose of enabling
the public to perhaps more fully appreciate the nature and course
of the proceedings by which the issues are to be determined in
circumstances where this course of action will weaken the
negotiating strength of one of the parties and may even result in
the parties
having to reconsider their adherence
to the
-1i7-
agreement. If the parties decided to abandon the agreement it
would have the effect of the A.B.C. achieving its object, not
because it had established a breach of the Act, but because the
publicity associated with the proceedings had weakened the
negotiating strength of the Board. It is relevant also to note
that the Board is almost in the position of being a public body.
It appears that the Board is the national Australian association
responsible for the organization and supervision of the game of
ericket in Australia including the arranging of test matches
between Australia and other countries and the arranging of
interstate cricket matches and that it is constituted by the
various cricket associations of the States and the Tasmanian
Cricket Council which are responsible for the organization of
ericket within their State for players from junior cricket
through to selection for State ceams.
The provisions of ss.17(4) and 50 of the Act have been
used on a number of occasions by judges of this Court in matters
under the Trade Practices Act. The Full Court of this Court,
Nimmo, Franki and Northrop JdJ., in an application for prohibition
against the Trade Practices Tribunal made orders under those
sections in In re Trade Practices Tribunal; Ex parte Tooheys Ltd.
(1977) 1 A.T.P.R. 40-054. In addition orders under one or both of
those sections have been made at teast in the following cases:
- 18 =
During 1977:
Insurance Brokers Association of Australia ve The
Commercial Bank of Australia (Bowen C.J.). Tradestock Pty. Ltd.
v. T.N.T. (Management) Pty. Ltd. (Smithers J.).
During 1978:
Trade Practices Commission Vv. Ansett Transport
Industries (Operations) Pty. Ltd. (Northrop J.) (1978) 20 A.L.R.
31 at p. 37. Trade Practices Commission v. Nicholas Enterprises
Pty. Ltd. (Fisher J.). An order was also made in 1979 in that
case. Trade Practices Commission v. Milreis Pty. Ltd. (Franki
J.).
During 1979 or 1980:
L-K. Jewellery Investments Pty. Ltd. v. Percy Marks Pty.
Ltd. (Franki J.). Geoff Penney (N.S.W.) Pty. Lid. v. Radilec
Investments Pty. Ltd. (Franki J.)- In the interlocutory
proceedings in the case under appeal. (St. John J.). Refrigerated
Express Sales Australia Pty. Ltd. ve Australian Meat and
Livestock Corporation (Deane J.).
In my opinion the legislature, by providing as it has
specific powers under ss:17(4) and 50, has intended that the
Court, in an appropriate case, should exercise these powers.
Whilst every regard must be had to the desirability of conducting
proceedings in open Court I consider that, where, as in this
case, it appears necessary in order to ensure that a party will
v
- 19 -
not be seriously prejudiced to make orders under ss.17(4) and 50,
those orders should be made. Of course, if the trial judge
decides when the proceedings have gone further, that protection
is no longer warranted he can remove the protection effected
under s.50 and the material which was not available to the public
would then become open to the public.
In my opinion, in proceedings like those in this case, a
party should not be seriously prejudiced merely because
non-disclosure may present a somewhat distorted picture of the
litigation to the public.
I would uphold the appeals numbered G14 and G15 of 1980
and make orders permitting the inspection of the whole of the
agreement only by such named members and officers of and named
legal advisers and other experts engaged by the A.B.C. as may be
appropriate and forbidding the publication of the confidential
parts of that agreement except the figures in clause 6(c).
Clause 6(c) has already become more widely available. I would
also order that the respondent pay the appellants' costs of these
two appeals and of the costs of so much of the proceedings before
the trial judge as relate to the order made by him from which
these two appeals have been brought. I would leave the approval
of the named members and officers of the A.B.C. and the named
legal advisers and other experts to the learned trial judge. My
impression, however, is that disclosure to two or three named
members or officers of the A.B.C. and three or four named legal
~ 20 -
advisers or other experts is likely to be adequate. In each
case, appropriate undertakings would be required from the persons
to whom disclosure was allowed. The orders proposed on these
appeals would appear to involve appropriate orders being made
under ss.17(4) and 50 of the Act from time to time to maintain
the confidentiality of evidence which may be given in relation to
the confidential parts of the agreement. -The extent and precise
nature of such orders must remain to be determined by the learned
trial judge.
As I have already said I would -dismiss appeal numbered
G13 of 1980 with costs.
- Fe Sees mT EL EISEN ELIAS A AES ETA, ¢
I certify that this andl tthe nine Loco th)
preceding pages are & tru@dypy of the
Reasons for Judgment herewidf his Honour
ur. Justice
Asso¢e1ate .
Dated: od Apr 780
. - ~s - +8 . - a ec r tare
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY NO. G.13,14,15 of 1980
et ae ee
GENERAL DIVISION
ON APPEAL FROM A SINGLE JUDGE OF THE FEDERAL COURT OF
AUSTRALIA
BETWEEN: AUSTRALIAN BROADCASTING
COMMISSION
Appellant
AND: ROBERT JAMES PARISH & ORS.
Respondents
BETWEEN: P.B.L. MARKETING PTY.
LIMITED & ORS.
Appellants
AND: AUSTRALIAN BROADCASTING
COMMISSION
Respondent
BETWEEN: ROBERT JAMES PARISH & ORS.
Appellants
AND: AUSTRALIAN BROADCASTING
COMMISSION
Respondent
CORAM: Bowen C.J., Franki and Deane JJ.
Wednesday, 2 April, 1980.
REASONS FOR JUDGMENT
DEANE J: These are three appeals against decisions of Brennan J.
given in the early stages of the hearing of proceedings brought by
the Australian Broadcasting Commission ("the ABC") against the
members for the time being of the Australian Cricket Board ("the
Board") and three corporate respondents. In the proceedings, the
ABC seeks against the respondents certain relief pursuant to the
provisions of the Trade Practices Act, 1974 ("the Act") in
relation to arrangements reached between the Board and the three
corporate respondents as regards the televising and certain other
aspects of international and inter-State cricket matches played
under the control of the Board. The arrangements in question are
contained in a written agreement made between the Board and the
corporate respondents on 30 May, 1979. I shall refer to this
written agreement as "the agreement". The agreement was confirmed
by a supplementary agreement of 21 November, 1979 between the same
parties. This supplementary agreement also provided, in effect,
that the grant of rights pursuant to certain clauses of the
agreement was expressly conditional upon the observance of the
provisions of another clause.
The first of the appeals (No. G13 of 1980) is an appeal
by the ABC against his Honour's refusal to allow two separate
amendments to the ABC's already amended statement of claim. These
consisted of a proposed addition to paragraph 5 and the insertion
wert Tt
-~3-
of a new paragraph 18A. The second and third appeals are by the
three corporate respondents (No. G14 of 1980) and the fourteen
members of the Board (No. G15 of 1980) and relate to his Honour's
decision that the ABC should be granted unrestricted access to
certain parts of the agreement which were claimed to be
confidential and his decision that, upon the agreement being
tendered and received in evidence, no order restricting
publication of those parts of the agreement should be made
pursuant to s.50 of the Federal Court of Australia Act, 1976. The
three appeals have been heard together and it is convenient to
dispose of them in the course of a single judgment.
The ABC's allegations against the respondents, as
disclosed by the amended statement of claim, fall into three
distinct groups, namely:-
(i) That by entering into (or giving effect to) "the
agreement or the amended agreement, or both", the
corporate respondents, in contravention of s.45
of the Act, have made (or given effect to a
provision of) a contract or arrangement or
arrived at (or given effect to a provision of) an
understanding that contains (or is) an
exclusionary provision within the meaning of s.4D
of the Act;
(ii) That by entering into (or giving effect to) "the
-4-
agreement or the amended agreement or both", the
corporate respondents, in contravention of s.45
- and s.45A of the Act, have made (or given effect
to a provision of) a contract or arrangement or
arrived at (or given effect to a provision of) an
understanding which contains a provision that has
(or which has) the purpose or effect or likely
effect of substantially lessening competition;
and
(iii) That the personal respondents have induced, been
concerned in and been parties to ithe alleged
contravention by the corporate respondents of
s.45 of the Act and have conspired with the
corporate respondents to contravene that seccion.
Each of the appeals relates to the exercise by Brennan
Jd. of judicial discretion. There has recently been some
discussion in the High Court of Australia as to the correct
approach to be adopted by an appellate court in the discharge of
its appellate funct1rons (see Warren v. Coombs (1979) 23 A.L.R.
405). There is, however, nothing in that case which warrants
departure from the previously established principles which govern
an appeal against the exercise of a judicial discretion and which
have been enunciated and recognized in a number of decisions of
the High Court. For present purposes, it suffices to quote the
comments of Dixon, Evatt and McTiernan JJ. in House v. The King
—5-
(1936) 55 C.L.R. 499 at pp. 504-505:
"The manner in which an appeal against an exercise of
discretion should be determined is governed by
established principles. It is not enough that the
judges composing the appellate court consider that, if
they had been in the position of the primary judge,
they would have taken a different course. It must
appear that some error has been made in exercising the
discretion. If the judge acts upon a wrong principle,
if he allows extraneous or irrelevant matters to guide
or affect him, if he mistakes the facts, if he does not
take into account some material consideration, then his
determination should be reviewed and the appellate
court may exercise its own discretion in substitution
- for his if it has the materials for. doing so. It may
'oe tnot appear how the primary judge has reached the result
embodied in his order, but,-if upon the facts it is
unreasonable or plainly unjust, the appellate court may
infer that in some way there has been a failure
properly to exercise the discretion which the law
reposes in the court of first instance. In such a
case, although the nature. of the error may not be
discoverable, the exercise of the discretion is
reviewed on the ground that a substantial wrong has in
fact .occurred".
(See also, for example, Lovell v. Lovell (1950) 81 C.L.R. 513 at
pp. 518-519; Australian Coal and Shale Employees Federation v.
The Commonwealth (1953) 94 C.L.R. 621 at p. 627; Roaers v. Rogers
(1965-66) 114 C.L.R. 608 at pp. 619-620; Power v. The Queen
(1974-75) 131 C.L.R. 623 at pp. 631-632; Gronow v. Gronow [1979]
F.L.C. 78,844 at pp. 78,848f, 78,852, 78,856, 78,859). Those
principles are of particular importance where, as at present, the
relevant exercises of judicial discretion were made in the course
of the actual conduct of proceedings at first instance and related
to matters of practice and procedure. I propose to apply them in
the resolution of these appeals.
a ee eek aed
-6-
Proposed amendment to paragraph 5
Paragraph 5 of the amended Statement of Claim reads as
follows:
"By agreement in writing dated 30th May, 1979 the
- respondents entered into a contract, arrangement or
understanding, hereinafter called "the agreement". A
copy of the agreement as appears on the public Register
of the Trade Practices Commission of the Commonwealth
of Australia is attached hereto as Annexure "A"."
The proposed amendment to the paragraph consisted of the addition,
to the end of the first sentence of the paragraph, of the words
"together with the necessary consequences of the performance of
the respective provisions of the agreement which were in the
contemplation of the parties".
The transcript of the proceedings before Brennan J.. in
relation to this proposed amendment, has been placed before us.
That transcript reveals that the basis upon which the proposed
amendment was propounded was, in the words of senior counsel then
appearing for the ABC, "simply that it is an alternative method of
pleading the case to give legal emphasis to the difference between
entering into the agreement and the contemplation of the parties
at the time they entered into the performance of the respective
provisions of the agreement". Brennan J, was informed that there
were no particulars which the ABC was able to provide in addition
to those which had already been furnished in relation to the
performance of the agreement.
In these circumstances, it is scarcely surprising that
his Honour refused leave to make the proposed amendment. Indeed,
as a matter of language, it is somewhat difficult to give precise
meaning to the words which were proposed to be added to the end of
the first sentence of paragraph 5. Literally, the words amount to
a statement that "the agreement" consisted both of an agreement in
writing and the contemplated necessary consequences of "the
agreement's" own performance. There is both ambiguity in the use
of the word "necessary" and difficulty in seeing "consequences of
the performance of the respective provisions of the agreement" as
in themselves constituting part of that agreement. Quite apart
from such ambiguity and difficulty, the search for consequences,
and therefore the identification of ."che:' agreement", could,
theoretically, be a never-ending spiral process. In a situation
where his Honour was informed that the proposed amendment, in the
view of the ABC, added nothing of substance to the already amended
statement of claim and where the ABC's inability to provide
particulars was expressly acknowledged, it would have been unfair
to have allowed the amendment and thereby required the respondents
to plead to it.
It should be noted that, on the hearing of the appeal,
senior counsel for the ABC indicated that one purpose of the
amendment was to encompass an allegation that the parties to the
agreement contemplated or intended that for the first three years
at least of the agreement the ABC would be excluded from
-8-
television rights in respect of the relevant cricket matches. No
mention of the proposed amendment being intended to embrace that
allegation was made to his Honour. Nor, indeed, is the wording of
the proposed amendment really apposite to allege it. In the
circumstances, this specification, on appeal, of a particular
purpose to be served by the proposed amendment does not establish
any error on his Honour's part in having refused to allow it.
It follows that the attack upon Brennan J's refusal to
allow the amendment to paragraph 5 of the amended statement of
claim has not been made good. The ABC's appeal, in so far as it
relates to that refusal, should be dismissed. This will not
preclude the ABC from applying to the trial judge for leave to
amend paragraph 5 of the amended statement of claim in a manner
which will ensure that the paragraph encompasses any specific
allegation which it is desired to make.
Proposed Addition of paragraph 18A
The proposed new paragraph 18A reads as follows:
"18A. By making and giving effect to the agreement, the
respondents, or each or any of them, have engaged in
conduct constituting a breach of s.45D of the Act.
PARTICULARS :
(a) The members of the Board, or each or any of them,
in concert with one another and with the fifteenth
to seventeenth respondents or each or any of them,
have made and given effect to the agreement in the
manner contemplated by the parties thereto, thereby
hindering or preventing the supply of services by
first-class cricket players, umpires for
first-class cricket matches and television
-~9-
commentators for first-class cricket matches to the
sixteenth respondent (a corporation) with the
purpose and with the effect or likely effect of
substantially lessening competition in the markets
for
(i) the services of first-class cricket players;
(ii) the services of umpires for first-class
cricket matches;
(iii) the services of television commentators for
first-class cricket matches.
(b) Alternatively to (a), the fifteenth to seventeenth
respondents or each or any of them, in concert with
the members of the Board or each or any of them,
have made and given effect to the agreement, in the
manner contemplated by the parties thereto, thereby
hindering or preventing the supply of services by
the persons referred to in (a) above to the
sixteenth respondent (a corporation) with the
purpose and with the effect of substantially
lessening competition in the markets referred to in
(a) above".
The ground upon which. Brennan J.: refused the application to add
the new paragraph: was that, as particularized, the proposed
allegations did not involve any contravention of the provisions of
s.45D of the Act and were incapable of founding any claim for
relief. It is common ground that the particulars should be
treated as part of the proposed new paragraph. Indeed, without
them the proposed new paragraph would be completely uninformative
and would scarcely permit of meaningful pleading on behalf of the
respondents in that, as a matter of permutation and combination,
it would consist of millions upon millions of breaches of s.45D
baldly alleged in the alternative.
Section 45D(1) of the Act provides, for present
purposes, that, subject to the section:
Sop mieten Te ten Pee tal
-10-
"a person shall not, in concert with another person,
engage in conduct that hinders or prevents the supply
of goods or services by a third person to a corporation
«es, Or the acquisition of goods or services by a third
person from a corporation ... where the conduct is
engaged in for the purpose, and would have or be likely
to have the effect of causing -
Cee ese esasroeoHneeeecsaceadee ee TODD LOS MOO EHH BROMO DDFOBDeODOOS
{b)a substantial lessening of competition in any
market in which the corporation ... supplies or
acquires goods or services".
The reasons which led Brennan Jd. to reach the conclusion
that the allegations did not involve a contravention of s.45D(1)
of the Act appear from the following extract from his ex tempore
judgment on the point:
" Section 45D(1)>refersrio four persors: those
who in concert: engage in conduct, a third person who
supplies or acquires goods ot services, and a
corporation to whom the third person supplies or from
whom the third person acquires the goods or services.
It is the conduct in which the first two persons engage
which hinders or prevents the supply of goods or
services by the third to the fourth person.
The kind of conduct to which the section is
directed is not the termination of supply by the will
of the person being supplied, for that is not
consistent with the notion of hindering or preventing.
To hinder or prevent a supply connotes conduct to which
the relevant corporation is not a willing party. The
section is not therefore directed to conduct engaged in
in concert with the relevant corporation. Yet that is
the allegation which the proposed paragraph 18A would
make."
The actual cessation of supply or acquisition of goods
or services is commonly the object and can represent the
culmination of conduct in breach of s.45D of the Act. The conduct
-l1l-
hindering or preventing supply or acquisition to which the section
refers can be engaged in by threat and verbal intimidation as well
as by physical interference with the actual activities. The fact
that the supplier or acquirer of goods or services is a party to
the actual cessation of supply does not preclude the activities of
others involved in the cessation from amounting to their engaging
in conduct in concert of the type proscribed by the section. The
section does not however include the actual supplier or acquirer
of the services as one of the relevant parties to the conduct in
eoncert and it is in that sense that I read the above comments of
Brennan J. as to the construction of s.45D(1) of the Act. So
understood, I agree with them.
fo the extent to which the alternatives aileged in the
proposed "particulars" include action in concert by or with the
sixteenth respondent, they involve departure 'from, and apparent
misunderstanding of, the elements of a breach of s.45D. To the
extent to which the alternatives include alleged action in concert
by only the sixteenth respondent with one member of the Board and
alleged action in concert by only one member of the Board with the
sixteenth respondent, some of the alternatives alleged could not
constitute a breach of the section.
It is, of course, true that some of the alleged
alternatives do not involve action in concert by or with the
sixteenth respondent. Both paragraphs of the particulars referred
-12-
to "the fifteenth to seventeenth respondents or each or any of
them". This encompassed the possible alternatives that both or
either of the fifteenth and seventeenth respondents were involved,
to the exclusion of the sixteenth respondent, in the alleged
action in concert. Senior counsel who appeared for the ABC on the
hearing of the appeal indicated one way in which the ABC intended
to put its case under the proposed paragraph 18A, which would
exclude the sixteenth respondent from the role of a participant in
the alleged action in concert hindering or preventing the supply
of goods or services to or by it. The position remains, however,
that some of the alleged alternatives particularized in the
proposed paragraph 18A (i.e. those where the only alleged parties
to the conduct are the sixteenth respondent and one other
respondent) would not involve any breach of s.45D and others
(statistically the majority) involve, as a-party, the sixteenth
respondent who is not a relevant party to it in so far as the
elements of a breach of the section are concerned and whose
alleged involvement as a party to the conduct would, if it were
the instigator of the conduct or a truly voluntary party to it,
indicate that no breach of the section was in fact involved. As
against each respondent, the proposed amendment would, on any
approach, consist of no more than an allegation that he or it may
or may not have engaged in conduct in breach of the section.
In the circumstances, it would, in my view, have been a
mistaken exercise of his discretion for his Honour to have allowed
the proposed amendment.
-13-
The appeal from his Honour's refusal to allow the
amendment to the amended statement of claim by adding the proposed
paragraph 18A should be dismissed. This will not preclude the ABC
from applying to the trial judge for leave to amend the statement
of claim by the addition of specific allegations of fact which, if
established, would, as distinct from might, involve contravention
. of s.45D.
. Bhe claim inz confidentiality
Parts of the agreement were already in the public domain
having been placed by the Trade Practices Commission on its public
. register. - The dispute as to confidentiality -related to those
Parts of the agreement which had not been -so disclosed. The
published portions of the agreement provide, inter alia, for the
appointment by the Board of one -of the corporate respondents
(P.B.L; Sports Pty. Limited) as promotor of the Board's cricket
programme and the grant to P.B.L. of the exclusive right, for a
term of 10 years, to arrange for televising of international and
inter-State cricket matches under the auspices of the Board and
for sponsorships and the merchandizing and marketing of associated
goods and services. The clauses of the agreement for which
confidentiality is claimed, prescribe and regulate the financial
remuneration payable to the Board for the rights granted by it
under the published clauses and deal with other financial matters
relating to the subject matter of the agreement.
Ae oe tn flamed golne
-14-
Two separate questions are involved in the appeals
relating to confidentality. The first concerns restricting the
persons to whom access to the relevant parts of the agreement
should be given upon production of the agreement to the ABC. The
second concerns the issue whether, upon the agreement being
admitted into evidence in the proceedings, an order to maintain
confidentality should be made pursuant to s.50 of the Federal
Court of Australia Act 1976. Plainly, if no order is to be made
pursuant to s.50 preventing the relevant parts of the agreement
from being available to the public generally upon its being
admitted into evidence, there will be little point in imposing
restrictions upon the persons to whom those parts of the agreement
ean be shown on behalf of the ABC. ff shall therefore deai first
with the question whether Brennan J. was in error in his decision
that no order pursuant to s.50 should be made.
Section 50 of the Federal Court of Australia Act, 1976
provides:
"The Court may, at any time during or after the hearing
of a proceeding in the Court, make such order
forbidding or restricting the publication of particular
evidence, or the name of a party or witness, as appears
to the Court to be necessary in order to prevent
prejudice to the administration of justice or the
security of the Commonwealth".
Publicity "is the authentic hallmark of judicial as
distinct from administrative procedure" (McPherson v. McPherson
[1936] A.C. 177 at p. 200 quoted by Gibbs J., Russell v. Russell
-15-
(1976) 134 C.L.R. at p. 520). The provisions of s.50 neither
require nor warrant the Court's abandoning, as its prima facie
approach, the ordinary common law rule that justice should be
administered in public and that there should be public access to
the evidence placed before the Court in public hearing. What the
section (like s.17(4) which empowers the Court to sit in camera)
recognizes is that there are occasions where the administration or
interests of justice will make it desirable that there be a
departure from the ordinary principle of the public administration
of justice in open court.
The general terms in which the statutory power to
restrict access to evidence: is couched make it unnecessary to
consider whether, at common law, a courte ic: enpowered to sit in
camera -or to restrict -access -to- evidence whenever the
administration or interests of 'justice make it desirable so to do
or whether, in the absence of statutory authority: such power
exists only in well- defined and exceptional cases (see R. v. Tait
(1979) 24 A.L.R. 473 at pp.487-491 and cf. Attorney-General v;
Leveller Magazine Ltd. & Ors. [1979] 2 W.L.R. 247 at pp. 258 and
271). Plainly, the Court is empowered by s.50 to restrict public
access to evidence whenever, on balance, the avoidance of
prejudice to the administration of justice makes it necessary that
such a course be adopted. It would be unwise to confine the width
of the discretionary power conferred by the section by attempting
to specify or categorize in advance the circumstances in which its
exercise would be justified. It is, however, desirable to make
-16-
some general comments as to the considerations which should guide
the Court when called upon to make an order pursuant to the
section.
The prejudice to which s.50 refers is plainly overall
prejudice and the question whether an order should be made
pursuant to the section will ordinarily involve the weighing of
conflicting factors and considerations. In every case, one starts
with the prima facie rule that the proceedings of the Federal
Court should 'be conducted in open court with public access to the
evidence. The whole point of the section is, however, to confer a
broad discretionary 'power to depart from this prima facie rule and
the weight to be given, as a factor in the weighing process, to
the prima facie desirability of the open administration of justice
will vary from case to case according to the nature of the case
and the materiality of the evidence. Public confidence in the
administration of justice is, 'for example, unlikely to be
significantly impaired by an order for confidentiality if the case
is a civil one in which no issues of general public interest or of
status are involved and if the evidence in respect of which
confidentiality is granted can be readily perceived to be of
little materiality to the outcome of the proceedings. The fact
that the case is one in which the relevant evidence is of real
materiality to the outcome of proceedings of general public
importance will not however be the end of the matter. Indeed, the
public importance of the case may provide grounds for concluding
that the widened publicity that could be expected from disclosure
a
-17-
would involve greater prejudice to the administration of justice
than would otherwise be the case. In every case, the advantages
and disadvantages of an order under s.50 must be weighed for the
purpose of determining whether, on balance, the making of an order
is warranted by the need to prevent prejudice to the
administration of justice.
The common law principle that justice be administered
publicly in open court is not only of general importance to the
proper administration of justice (see, for example, Scott v. Scott
[1913] A.c.: 417 at pp. 477-8; Russell v. Russell (1976) 134
C.L.R. 495 at p. 520).°> It is o£ particular importance to the
actual - parties -to -litigation. tt is the prima facie right of
every litigant to have the -proceedings im which he is involved
conducted with 'the benefit -of the spur- to exertion and the
safeguard against improbity, .arbitrariness and idiosyncrasy which
their being-open to pubbic scrutiny imparts (see Scott v. Scott,
supra at p. 477 and Attorney-General v. Leveller Magazine Ltd. &
Ors., supra at p. 252). The relevance of whether the other party
to the litigation consents -to a departure from the ordinary
principle of the open administration of justice under the common
law has long been recognized (see, for example, Andrew v. Raeburn
[1874] 9 L.R. Ch. App. 522 at p. 523). In considering an
application for an order for confidentiality under s.50, the
weight to be given to the prima facie desirability of the evidence
in proceedings before the Federal Court being open to the public
may vary according to whether the other party to the litigation
opm wee we ee Panty
-~18-
opposes, or consents to, the making of the order sought. This is
not only because an order under s.50 will affect. the prima facie
right of the litigant that the evidence in his particular case be
open to public scrutiny. It is also because there is less
likelihood of damage to public confidence in the administration of
justice if an order for confidentiality is made in circumstances
where the parties to the litigation are agreed that the order
should be made, than if such an order is made in circumstances
where the other party or parties protest against -the relevant
evidence. being concealed from public scrutiny.
In some cases, the prima facie right of the individual
litigant to open justice within the courtroom may be of heightened
importance -becauwse-of the. nature of 'the proceedings: in, 'tor
example, proceedings for defamacion where 'the vindication of
reputation may be more important to the plaintiff than the solace
of pecuniary damages, the plaintiff may have a special interest in
ensuring that it is apparent to the public that all the evidence
is open to public scrutiny so as to ensure that the proceedings
which were legitimately regarded as a vehicle to clear his name
cannot be wrongly seen as indicating that there is secret material
which might tend to confirm the blackening of it. It is
conceivable that in proceedings such as those involved in the
present case, where allegations of conduct in contravention of the
Trade Practices Act are involved, the party against whom
allegations are made, might likewise have a particular interest in
ensuring that the whole of the evidence which the applicant is
.
-19-
able to lead in support of the allegations is seen to be open to
public scrutiny and assessment. In such a case, the opposition of
the relevant party to the making of an order for confidentiality
will plainly be of added weight in the decision as to whether such
an order under s.50 of the Act should be made.
The above are -some of the factors which may tend to
weigh against the making of an order under s.50 af the Act. Their
relative importance in the weighing process will plainly vary from
'case to case.- The same can be said of the -factors which are
liable to be present and to support the making of such an order.
I turn to the-consideration of some of those factors.
nye "There lies at the heart of om tegak cystem the ideal of
the attainment of Justice under the-lhaw-tu-cthe. undividual case.
Justice can be denied as mush by effectively closing the doors of
che courts to litigants as it cam by an unjust or wrorg decision.
The results of an undue discounting of iegitimate claims to
confidentiality are likely to be both the deterrence of the
subject from, having recourse to courts of 'justice for the
vindication of legal rights or the enforcement of criminal law and
the discouragement~ of willing co-operation on the part of
witnesses whose evidence is necessary to enable the ascertainment
of truth, The interests of the administration of 'justice plainly
make it desirable that obligations of confidence be not lightly
overruled and that legitimate expectations of confidentiality as
to private and confidential transactions and affairs be not
-20-
lightly disregarded.
In some cases, where publicity would destroy the subject
matter of the litigation, the avoidance of prejudice to the
administration of justice may make it imperative that the ordinary
prima facie rule of open justice in the courtroom gives way to the
overriding need for confidentiality. Even where publicity would
not destroy the subject matter of the litigation, the need to
respect legitimate claims to confidentiality will be a factor -
and in some cases a' determining- factor - to be placed in the
overall balance in considering whether an order under s.50 should
be made. Damage and hardship to the individual from the working
of legal processes can only be justified if they are warranted by
countervailing benefit, or avoidance. of prejudices, to the general
administiation of justice. 'er by the -Leqitimate claims and
expectations of other individuals. When net so warranted, such
damage or hardship is to the overall prejudice of the
administration of justice,
The decision whether an order under s.50 should be made
will be the outcome of a balancing. process in respect of which
there will commonly be room for differences of opinion as to the
weight to be attached to particular factors to be placed in the
balance and, in the result, as to the precise outcome of the
process itself. It is a decision that will ordinarily need to be
made in the course and in the atmosphere of the particular
proceedings. It will involve an assessment of a multiplicity of
ane
-21-
factors including the importance which the relevant evidence will
play in the actual conduct of the particular proceedings and, in
some cases, an assessment of the degree and nature of the
publicity which is likely to follow a refusal to make an order.
It is a process which may need to be repeated on a number of
occasions in the course of particular proceedings in that the
perception of the importance of the particular evidence to the
result and understanding of the proceedings may vary, as the case
proceeds, to an extent that an order for confidentiality which was
,justified,.on balance, at the time it was made can no longer
properly be sustained. The decision whether an order should be
made undér s.50 is a decision as to practice and procedure
entrusted to the discretion of the judge hearing the proceedings.
The primary concérn .cf members of an appeitere caurt in ieviewing
the exercise of that discrebion ts not whether): 4c the discretion
had been entrusted to them, they would have exercised: it in the
same way: Tt is whether the discretion exercised by the judge to
whom it was entrusted has miscarried by reason of explicit or
implicit error.
It was submitted, on behalf of the appellants in the two
appeals on this issue, that his Honour did not, in truth, engage
in any weighing process at all but treated the "principle of open
justice" as being necessarily paramount and therefore
determinative of this issue. In support of that submission,
emphasis was placed on a statement in his Honour's judgment to the
effect that the principle of open justice was "of the greatest
oka ote eae
-22-
importance", and to a paragraph in which he referred to "no harm
being done" if an order under s.50 is made where the confidential
matter is "of minor importance" and "the loss of confidentiality
is a grave matter for the trader". These indicated, so it was
said, that'Brennan J. "apotheosized" or "placed on a pinnacle of
irrefragable significance" the "notion that judicial proceedings
must be in all circumstances conducted in the full gaze of
publicity". If: this criticism of his Honour's 'judgment had been
made good,, it would, in my view, have indicated error on his part.
The criticism was not., however, made good.
It is apparent from his Honour's judginent- that he fully
recognized that ne was engaged in a process of: weighing
- conflicting factors to determine-wherher an urdei" under s.50 was
warranted' inv-akl the circumstances -of. thd - cases fne-use ot the
phrase "of the greatest importance". in its context, was plainly
intended in the sense of "very great" rather than as indicating a
pre-judgment of the relative weight to be attached to the general
principle of: open justice. The example of a confidential matter
of minor importance was proferred as an example of a case where an
order under s.50 would "no doubt" be warranted. The care which
his Honour devoted to the assessment of the likely importance, to
the proceedings, of the relevant parts of the agreement and of the
disadvantages which public disclosure would involve for the
respondents makes plain that he did, in truth, engage in the
overall exercise of determining the weight which, in his opinion,
should be given to the various factors and considerations which he
-23-
thought were relevant to the determination of whether an order for
confidentiality was necessary to prevent prejudice to the
administration of justice. His ultimate decision that it was not
was stated, in clear terms, to be the result of weighing the
serious consequences to the respondents which were liable to flow
€rom loss of confidentiality against his assessment of the likely
prejudice involved in a departure from the principle of open
justice in the courtroom in the particular circumstances of the
particular evidence in the particular case.
It is clear that his Honour accepted and appreciated the
full effect of the evidence placed before him as to damage to the
vespondents which was liable to flow from exposing the relevant
parts, of the agreement to public scrutiny. Hie summarized the
effect of that evidence in the feilowing -extract from his
judgment :
",;>,ethe dissemination of the contents of the
confidential -parts of the agreement will, according to
the evidence, seriously weaken the negotiating strength
of the Board and may well require the respondents to
reconsider their adherence to the agreement".
He added that "to justify refusing an order, there must be very
grave considerations put into the other side of the balance".
Implicit in that statement and in the overall weighing process was
recognition and acceptance of the fact that particular prejudice
or damage to the respondents was a relevant consideration in the
determination of the general question whether an order under s.50
was necessary to prevent prejudice to the administration of
justice.
It is apparent that Brennan J. treated the prima facie
rule that 'judicial proceedings should be fully open to public
scrutiny as being of Fundamental importance to the administration
of justice under the common law. This view enjoys the support of
a great body of judicial opinion and is not excluded by the
provisions of s.50 which proceeds on the basis that the prima
facie rule shall operate unless the avoidance of prejudice to the
administratton of -justice makes departure from it necessary. I am
unpersuaded that in adopting and appiying that view 'his Honour
fell into any error which would' warrant the interference of an
appellate court.
uf .- fo wasualso..argiied that TBrennansu's -ass@ssment of the
prejudice to the administration of justice which would Flow from
an order for confidentiality was affected by error as to the
materiality to the praceedings of the confidential parts of the
agreement. Those parts:of the agreement were said to be relevant
only because they were part of an agreement of which other parts,
in respect of which no claim for confidentiality.was made, were
relevant. In themselves, they were 'immaterial to the proceedings
and the understanding of the issues involved in them. The ABC
joined issue on this submission and a considerable part of the
argument on the appeal was concerned with the question of the
extent to which the confidential parts of the agreement would
prove material and important to the understanding of the forensic
-~25-
contest and the ultimate resolution of the issues involved in the
proceedings. The resolution of this argument at the present stage
must, to no small extent, depend on speculation. Plainly, the
argument before Brennan J., proceeded in similar vein and his
Honour's assessment of the importance and materiality to the
proceedings of the relevant parts of the agreement was, of
necessity, marked by a degree of speculation.
Brennan J's conclusion was that the relevant parts of
the agreement were not only material to some of the issues but
that "assuredly the whole agreement will be canvassed and the
applicant will seek to relate the contents of each part of the
agreement to the issues to be decided": Examination of the issues
'between. the parties,.~particularly. the:issues involved in the
alleged effect or likely effect of the agreement upon-competition,
would tend to confirm that the relevant parts of the agreement may
well prove 'material to.some of the matters which will be in issue
upon the hearing, In so far as his Honour's assessment of the
applicant's likely use of the relevant parts of the agreement is
concerned, genior counsel who appeared for the applicant on the
hearing of the appeal assured us that his Honour's assessment was,
as he currently saw- the position, an accurate statement of the
manner in which he anticipated the applicant's case would be
presented. It may well be that the relevant parts of the
agreement will, in the event, prove to be of markedly less
significance than his Honour anticipated. There is not however,
at this stage of the proceedings, any ground for holding that, to
eee ~ - peu
-26-
the extent to which it was necessary to anticipate the future
course of the proceedings, his Honour's assessment of the
materiality or importance of the relevant parts of the agreement
will necessarily, or even probably, prove to be mistaken.
One question which has caused me more than ordinary
difficulty in these appeals is the question whether Brennan J. was
in error in-declining to preserve confidentiality, by an order
under: s.50- until a later stage.of the proceedings: when the
-impurcance: of the' vonfidential" parts of the' agreenient to the
overall proceedings could be more clearly perceived. It may be
that, for one: reason or another, the proceetiinys will come to a
premature end. '°"TIt may, be that, -in the evenc, the detailed
| Frnancial- provisions: foirviich: conmikdensialttur-ts swiaimed t7i11
Re
o
S
prove to, we' ofslitite- significance orn the -preseuta
'resolution of:.the cases .As his' Honour -tound; maintenance of
confidentiality was of great importance to che respondents and
there needed to he "verv grave considerations" to-be put into the
opposite side of the balance before a refusal of an order pursuant
to s.50 would be justitied. To vefuse an order under s.50 at this
early' stage of the proceedings will irrevocably destroy the
confidentiality of the agreement and, on his Honour's findings,
"may well require the respondents to reconsider their adherance to
the agreement"., Plainly, there are some grounds for arguing that
the administration of justice would be better served by preserving
confidentiality on an interim basis, by an order under s.50. On
the other hand, it would seem that the course of the argument
-27-
before Brennan J. was such as to indicate that all parties
approached the issue of confidentiality on the basis that it
called for final determination at this stage. There are obvious
procedural advantages, in so far as the overall proceedings are
concerned, in adopting that course. In all the circumstances, I
am unconvinced that his Honour's discretion miscarried by reason
of his dealing with the matter on the basis upon which all parties
were content for it to be determined; that is to say, by
attempting in advance to determine the probable 'materiality and
importance of the- confidential' parts of the agreement to the
overall proceedings.
Ultimately. I find myself unable to identify any error
of principle or mistake ox avksappreheisiou of fact :in'''srennan J's
identification and -assassment of the.'factors: which were relevant
to be taken into account in determining whether an order should be
made pursuant to' s.50. It is possible that my own assessment of
the relevant importance of those factors may have been different
from his Honour's if, left'to myself, I were required to assess
and weigh them one against another. That is not-however the
question for us on this appeal (see, Gronow v. Gronow, supra, at
pp.78,849£, 78,859). The question for us ig whether his Honour's
exercise of the discretion entrusted to him has miscarried by
reason either of identifiable error or because the result is
unreasonable or so plainiy wrong or unjust that it should be
inferred that there has been a failure properly to exercise it.
As I have said I am unable to identify any relevant error on his
- - + cS ol a ee en ete eee
-28-
Honour's part. Nor, in my view, can it properly be said that the
result which his Honour reached is unreasonable or wrong or
unjust.
I would accordingly dismiss the appeals in so far as
they relate to Brennan J's refusal to make an order pursuant, to
s.50. It was not suggested, on behalf of the appellant, that in
the event that no order pursuant to s.50 was to be made, some
restriction should be placed on the persons permitted to inspect
the' confidential parts of the agreement on behalf of the ABC. In
a context where the refusal of an order under s.50 will result in
the whole agreement being open to public scrutiny, it is obvious
that no such restriction should be imposed. It should be noted
that an objection to production of the agreement on the ground
that such production might tend tq render the respondents fabre
to a penalty, which had been taken before Brennan J., was
expressly abandoned on the appeal.
In the result, I would dismiss all three appeals. I
would arder that the appellant or appellants in each appeal pay
the costs of the respondent or respondents of that appeal.
i certify that this and the preces'ing peass Bre 8
[rue copy of the reasons for Judgwent herein of
Adis Honour Mr. Justice Deane. "4 ; :
ASSOCIATE
ita 4. /9S0
ave