Prichard, Michael Anthony v Krantz, Harry David & Ors [1983] FCA 352
Federal Court of Australia
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IN THE FEDERAL COURT OF AUSTRALIA
SOUTH AUSTRALIA DISTRICT REGISTRY S.A. No. 6 of 1983
eee ew
INDUSTRIAL DIVISION
BETWEEN:
MICHAEL ANTHONY PRICHARD Applicant
and
HARRY DAVID KRANTZ, LESLIE RICHARD
HASELDINE, ALBERT FELLOWES, PETER
DAVID SUMMERTON, FREDERICK EDWARD
PRIEST, H.J. DARROCH, N. NELSON,
M.d. O'SULLIVAN, JOAN RIORDAN,
B. ASHE, K. GLOVER, MICHAEL BOURKE,
F.J. FINLAY, J.F. HARDING,
M. STRANGEWARD, B. SPEARS, D. FRY,
D. EDGE, A.M. LAWLESS, VINCE HIGGINS,
L.T. HAUFFE, F.J. ABEL, R.- J. WASSON,
TERRY SULLIVAN, JOHN PETER MAYNES,
J.D. CAMERON Respondents
CORAM: Northrop ag.
DATE: 29 November 1983
WHERE MADE: Melbourne
ORDER
THE COURT ORDERS THAT the rule to show cause insofar as
paragraphs (b) and (c) thereof are concerned, be discharged.
IN THE FEDERAL COURT OF AUSTRALIA
SOUTH AUSTRALIA DISTRICT REGISTRY S.A. No. 6 of 1983
INDUSTRIAL DIVISION
BETWEEN:
MICHAEL ANTHONY PRICHARD Applicant
. . and
HARRY DAVID KRANTZ, LESLIE RICHARD
HASELDINE. ALBERT FELLOWES, PETER
DAVID SUMMERTON, FREDERICK EDWARD
PRIEST, H.J. DARROCH, N. NELSON,
M.J. O'SULLIVAN, JOAN RIORDAN,
B. ASHE, K. GLOVER, MICHAEL BOURKE,
F.J. FINLAY, J.F. HARDING,
M. STRANGEWARD, B. SPEARS, D. FRY,
D. EDGE, A.M. LAWLESS, VINCE HIGGINS
L.T. HAUFFE, F.J. ABEL, R.J. WASSON,
TERRY SULLIVAN, JOHN PETER MAYNES,
J.D. CAMERON Respondents
NORTHROP J. REASONS FOR JUDGMENT 29 NOVEMBER 1983
On 1 August 1983, the Branch Executive of the
Federated Clerks' Union of Australia, South Australian
Branch, "the S.A. Branch", adopted the following resolution:
"In accordance with Rule 11l(a) the Branch
Executive directs the removal from the
register of Michael Anthony Prichard who
appears to be no longer covered by the
Constitution and who was notified in writing
in accordance with sub clause (da) of the said
rule and the said period provided, by sub
clause (e) of the said rule having expired and
no such reply seeking to show cause why his
Re ee os
1 Maen
name should not be removed from the register
having been received, the Executive acts
without further inquiry."
That resolution was acted upon. Thereupon, if the resolution
was valid, Michael Anthony Prichard, the applicant, ceased to
be a member of the S.A. Branch and ceased to have any rights
or privileges of membership of the S.A. Branch. At the same
time he ceased to be a member of the Federated Clerks' Union
of Australia, "the Clerks' Union", an organization of
employees under the Conciliation and Arbitration Act 1904,
"the Act".
The applicant challenges the validity of that
resolution. On 19 October 1983 he obtained a rule calling
upon the respondents to show cause why orders should not be
made pursuant to s.141 of the Act. Two of the orders sought
by the applicant raise the question of the validity of the
resolution adopted by the Branch Executive. The Court
directed that the part of the rule to show cause which raised
that question should be heard and determined separately from
and prior to the other orders sought in the rule to show
cause.
The applicant claims to be a member of the Clerks'
Union and since the issue of whether he is a member is raised
by this application, he has sufficient standing to bring this
application under sub-sec. 141(1) of the Act. Each of the
respondents is a member of the Clerks' Union and thus each is
under an obligation to perform or observe the rules of the
Clerks' Union; see sub-sec. 141(1G). For the purposes of
s.141 of the Act, the S.A. Branch Rules are treated as rules
of the Clerks' Union.
The respondents, Krantz, Haseldine, Fellowes and
Summerton are the Secretary, the Assistant Secretary, the
Deputy President and the Vice President respectively of the
S.A. Branch. They, together with the President of the S.A.
Branch, Michael James Knight, constitute the Branch
Executive. The respondent, Priest, is a member of the S.A.
Branch. The other respondents constitute some of the members
of the Federal Council of the Clerks' Union. They were
represented at the hearing of this part of the application
but took no active part in the conduct of the hearing.
At the hearing, the applicant appeared in person.
Evidence was given by the applicant, Knight, and the
respondent, Krantz. There is no real dispute as to the
facts, but what is in issue is the inference to be drawn from
some of those facts.
In August 1978, the S.A. Branch engaged the
applicant as an employee to perform the duties of a Branch
Organizer. Thereupon, the applicant applied for and was
granted membership of the Clerks' Union being attached to the
S.A. Branch. In September 1980, the S.A. Branch dismissed
the applicant from his position as a Branch Organizer. While
a member of the Clerks' Union, the applicant stood
unsuccessfully as a candidate for election to office in the
S.A. Branch. Commencing in the year 1981, the applicant,
either on his own or in conjunction with other members,
commenced the first of a number of proceedings in the Federal
Coutt seeking orders under sections 140 and 141 of the Act.
One of those proceedings is identified as matter S.A. No. 9
of 1982. In addition, the applicant, in conjunction with
other members of the Clerks' Union, made application under
Part 1X of the Act seeking an inquiry into alleged
irregularities occurring in connection with an election for
offices within the S.A. Branch. The election inquiry
proceedings are identified as matter S.A. No. 15 of 1981. In
each of matters S.A. No. 9 of 1982 and No. 15 of 1981
questions arose as to whether the applicant was eligible to
be a member of the Clerks' Union.
Late in the afternoon of Friday, 29 July 1983, the
hearing of matter No. 9 of 1982 concluded, whereupon the
trial Judge said:
"In matter number 9 of 1982, the court is of
the view that the order nisi herein should be
discharged. So that that is understood, I am
of the view that on the evidence in the
matter, the applicant Michael Anthony Prichard
is not eligible to be a member of the
Federated Clerks Union of Australia. I will
publish my reasons at a later date."
Later on the same afternoon, the trial Judge made orders in
matter No. 15 of 1981. Among the offices the subject of that
inquiry were the offices of President, Deputy President and
Vice President of the S.A. Branch. At the election Geert
Louis Viergever had been declared elected as President. the
respondent Summerton had been declared elected as Vice
President, and the respondent Fellowes had been declared
elected as Deputy President. After the election inquiry
commenced, the Court, on 18 September 1981, had made interim
orders in substance permitting each of those persons to
perform the duties of the holders of those offices
respectively pending the determination of the inquiry. Mr.
Viergever had died pending the hearing and determination of
the election inquiry, but the casual vacancy occurring
thereby had not been filled, the respondent Fellowes
performing the duties of President in an acting capacity. On
29 July 1983 the Court ordered that each of those three
persons had not been elected as President, Vice President and
Deputy President respectively, that Mr. Knight had been
elected President, that fresh elections be conducted for each
of those positions and that pending the results of the new
election the respondents Summerton and Fellowes respectively
perform the duties of Vice President and Deputy President
respectively.
At this stage it is necessary to make brief
reference to the rules of the Clerks' Union and of the S.A.
Branch. The eligibility rule in each case provides:
"2. CONSTITUTION
The Union shall consist of all persons engaged
in any clerical capacity, and/or engaged in
the occupation of shorthand writers and
typists and/or on calculating, billing, or
* other machines designed to perform or assist
in performing any clerical work whatsoever."
Rule 2 must be read down and of necessity must be limited to
persons who at the time of making application for membership
are engaged or are normally engaged as employees and who
carry on or normally carry on any of the pursuits specified
in that rule. Application for membership is made to a branch
of the Clerks' Union in the manner prescribed by the Branch
Rules and except in special circumstances, not presently
relevant, every member is attached to the Branch of the
Clerks' Union covering the locality in which he resides or,
in the case of persons employed in the Commonwealth Taxation
Office, the Taxation Officers' Branch; generally see re
Election Inquiry: Federated Clerks' Union of Australia; Ex
parte Bath, Federal Court of Australia, Northrop J., 4 March
1982, unreported. Neither the rules of the Clerks' Union nor
the rules of the S.A. Branch contain rules to the effect that
a+member who ceases to be an employee or who ceases to be
engaged in any of the pursuits specified in the eligibility
rule, of necessity, ceases to be a member of the Clerks'
Union. Accordingly, once a person has become a member of the
Clerks' Union, he remains a member until he dies or until his
membership is terminated either by himself or by the Clerks'
Union.
S.A. Branch Rule 17 constitutes the Branch
Executive. The rule is set out in full:
" 17. BRANCH EXECUTIVE
The Branch Executive shall consist of the
President, Deputy President, Vice-President,
Secretary and Assistant Secretary.
It shall meet monthly on the second Tuesday in
each month or at such other time as it may
decide.
Three members shall form a quorum."
The general powers and duties of the Branch Executive are
contained in S.A. Branch Rule 18. It is not necessary to
refer to those powers and duties, but it is noted that they
are made subject to the direction and control of the Branch
Council. Under S.A. Branch Rule 14, the officers of the S.A.
Branch are the President, Deputy President, Vice President,
Secretary and Assistant Secretary. The Branch Council is the
committee of management of the S.A. Branch and the Branch
Executive is the Executive Committee of the Branch Council.
Under S.A. Branch Rule 15, the Branch Council consists of the
officers, together with councillors elected by the members
within sections of the S.A. Branch. The powers and duties of
the Branch Council are contained in S.A. Branch Rule 16.
They need not be referred to in detail. It is required to
meet monthly on the 4th Tuesday in each month "or at such
other time" as the majority of members may decide or when
summoned by the Executive. In addition, the S.A. Branch
Rules contain provisions relating to a conference of the S.A.
Branch and to the powers of that conference, S.A. Branch Rule
16A, while special meetings of members have power to exercise
control over the Branch Council; see S.A. Branch Rule 19.
In addition, a ballot of members of the Branch may be held
under S.A. Branch Rule 35 or under the Clerks' Union Rule 32.
In each case, the result of the ballot is binding on the S.A.
Branch. S.A. Branch Rule 22 relates to the President. He
presides at all meetings of the Branch, but except in the
case of elections, he possesses a casting vote only. He is
to be consulted in all matters of urgency and shall give
directions on all such matters. Under S.A. Branch Rule 24,
the Secretary is responsible for the proper carrying on of
the Branch and acts as general supervisor for and on behalf
of the Branch. Under S.A. Branch Rule 8, a member may resign
his membership of the Clerks' Union in the manner therein
prescribed. S.A. Branch Rule 10 contains provisions relating
to a register of members. S.A. Branch Rule 11 is of
importance and is set out in full:
(a)
(c)
(d)
(e)
11. PURGING THE REGISTER
The Branch Executive may direct the
removal from the register of the name of
any member who:
(1) owes more than one year's
contribution.
(2) has failed for the space of one year
or more to pay any levy or fine or
(3) who appears to be no longer covered
by the Constitution.
(4) Whose present address or place of
employment cannot be ascertained by
the secretary by reasonable enquiry.
(5) Who, although employed in a clerical
capacity, is in the opinion of
the Branch Executive, more
particularly provided for by some
other Industrial Union which is
prepared to accept him as a member.
Any person whose name has been so removed
from the register shall thereupon cease
to be a member or to have any rights or
privileges of membership.
Any person shall be liable to pay all
contributions, fines, levies and other
moneys due to the Union up to the date of
removal of his name from the register.
Before removing the name of any member
from the register in accordance with this
rule the member shall (except in the case
of removals pursuant to sub-clause (4) of
paragraph (a) hereof) be notified of the
Executive's intention to remove his name.
Such notification shall specify the
ground or grounds upon which action is to
be taken and shall be sent by post to the
member concerned to his last known
address as shown on the register of the
Union.
If such member fails within 14 days to
show cause why his name should not be
removed from the register the Executive
may direct that his name be removed
without further enquiry.
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(£) Any member whose name has been removed
from the register under the provisions of
this Rule may appeal to the Branch
Council."
Doubts having arisen as to whether the applicant
was eligible to be a member of the Clerks' Union, the
Secretary notified employees of the S.A. Branch not to accept
payment of Union dues from the applicant. The Secretary, in
giving those instructions, had misunderstood the effect of
the S.A. Branch Rules and was in error. On 26 October 1982,
the applicant obtained a rule in matter No. 9 of 1982 calling
on the Secretary and the Assistant Secretary to show cause
why orders should not be made directing that they recognize
the applicant as a member of the Clerks' Union. That matter
came on for hearing on 6 and 7 July 1983 and was adjourned to
29 July 1983. Unfortunately, on each of those three days the
parties to the hearing of that rule to show cause proceeded
on the erroneous assumption that a relevant issue was
whether, having regard to the nature of the applicant's then
employment, he came within the conditions of eligibility of
membership of the Clerks' Union. The true issue, as appears
from the reasons for judgment of the Full Court of the
Federal Court of Australia given on 21 October 1983 was
whether the applicant was in fact and in law a member of the
Clerks' Union. As a result of the erroneous assumption, much
evidence, including an inspection of the applicant's then
place of work, was given to the Court on each of those three
~l1-
days. On the basis of that evidence, the trial Judge made
the announcement on 29 July 1983 which announcement has been
set out in full earlier in these reasons.
The Branch Executive met on Wednesday, 13 July
1983. The then four officers of the S.A. Branch attended.
At that time Mr. Knight did not occupy the office of
President. The purpose of the meeting was to consider the
question of commencing proceedings under S.A. Branch Rule 11
to have the applicant's name removed from the register of
members. A draft letter to the applicant had been prepared
by the Secretary. The meeting considered extracts from the
reasons for judgment of the trial Judge in matter S.A. No. 15
of 1981 and extracts of the transcript of evidence given in
matter S.A. No. 9 of 1982 relating to the nature of the then
employment of the applicant. The meeting resolved
unanimously, in accordance with S.A. Branch sub-rule 11(d),
to advise the applicant of its intention to remove his name
from the register of members on the ground "that he appears
to be no longer covered by the Constitution as provided by
Rule 11(a)(3)", to adopt the letter prepared by the Secretary
and to authorize it to be sent to the applicant. The letter
was dated 13 July 1983 and was received by the applicant on
14 July 1983. The letter enclosed a copy of the whole of
S.A. Branch Rule 11. The letter made reference to sub-rule
11(d) and notified the applicant that the Executive intended
to remove his name from the register of members pursuant to
Pa VERN eee Reem ee
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sub-rule 11(a) (3) which was set out. The letter referred to
the decision of the trial Judge in matter No. 15 of 1981 and
to evidence given on oath by the applicant on 7 July 1983 in
matter No. 9 of 1982. The last paragraph of the letter was
as follows:
"Any reply 'within 14 days' should be received
by me by 5.00 p.m. on Wednesday, 27th July
1983 at the above address."
By letter dated 16 July 1983, the then solicitors
for the applicant wrote to the solicitors for the respondents
Krantz and Haseldine, the respondents in matter No. 9 of
1982. The letter referred to the correspondence comprising
two letters relating to the removal of the name of the
applicant from the register of members. The other letter of
13 July 1983 need not be referred to in detail. The letter
from the then solicitors for the applicant suggested that the
action by the Branch Executive "could well constitute a
contempt of Court" and in any event was "a vexatious and
precipitate action". It referred to matter No. 9 of 1982 and
sought an undertaking that no action be taken by the Branch
Executive "before the adjourned date" being 29 July 1983.
The letter contained a notice that applications might be made
seeking interlocutory orders. On 18 July 1983 oral
undertakings were given on behalf of the respondents Krantz
and Haseldine. It is not necessary to refer to motions
seeking interlocutory orders. On 21 July 1983 the solicitors
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for the respondents Krantz and Haseldine wrote to the then
solicitors for the applicant. The last two paragraphs of
that letter were as follows:
"We confirm the undertaking given to you by
telephone on 18th July that no action would be
taken by the Executive in respect of this
matter before 29th July. We trust that this
is all that you require at this stage.
(Please note that the above undertaking is not
intended to relieve Mr Prichard of the
obligation of responding within fourteen (14)
days as indicated in the letter of the
Executive to him)."
On 29 July 1983, the trial Judge in matter No. 9 of
1982 announced that on the evidence he was of the view that
the applicant was not eligible to be a member of the Clerks'
Union. The transcript of that announcement did not become
available to the parties until some fourteen days later. On
29 July 1983 the trial Judge in matter No. 15 of 1981
declared by order that Mr. Knight had been duly elected
President of the S.A. Branch.
As a result of these orders, the respondent Krantz
considered it necessary that the Branch Executive meet as
soon as possible. The signature of the President was
required for a number of purposes including banking and entry
certificates. It was reasonable that a meeting of the Branch
Executive, as the Executive Committee of the Branch Council,
be held as soon as possible. The Secretary did not know the
~14 -
address or telephone number of Mr. Knight. On Friday, 29
July 1983 he discussed the matter with the other officers of
the S.A. Branch and arranged for a meeting of the Branch
Executive to be held at 9 a.m. on Monday, 1 August 1983. On
the morning of Saturday, 30 July 1983, the respondent
attended at the office of the S.A. Branch. He ascertained
the address of Mr. Knight. He could find no record of a
telephone number in the name of Mr. Knight. He enquired of
Telecom directory assistance but could find no record of a
telephone number in the name of Knight. In fact, there is a
telephone in the home of Mr. Knight but it is not listed in
his name, nor in the name "Knight". The respondent arranged
for a telegram to be sent to Mr. Knight. The telegram was
delivered by taxi and was delivered to Mr. Knight before 12
noon on Saturday, 30 July. The telegram was addressed to Mr.
Knight and was as follows:
"Meeting of Branch Executive called 9 a.m.
Monday lst August 1983 at Union office stop
Endeavoured to and unable contact you by
telephone stop Ali other members of Branch
Executive desire and agree to calling of
meeting stop If you desire to phone my home
number is 31 6539.
KRANTZ"
Mr. Knight rang the respondent Krantz at about 6
pem. on Sunday, 31 July 1983. It is not necessary to set out
the content of that conversation in detail. No mention was
made of the removal of the name of the applicant from the
register of members, but reference was made to the need to
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make arrangements concerning important matters arising from
the fact that Mr. Knight was now the President of the S.A.
Branch. Mr. Knight said that he could not attend and that he
objected to the meeting being held at that time. The Court
is not satisified that there was any valid reason why Mr.
Knight could not attend that meeting. Later on the Sunday
evening Mr. Knight rang the respondent Fellowes and had a
long discussion relating to the removal of the applicant's
name from the register of members.
The Branch Executive met at 9 a.m. on Monday, 1
August 1983. The minutes of that meeting contain a full
record of what occurred. All the officers of the S.A.
Branch, except Mr. Knight, attended the meeting. They
confirmed and ratified the calling of the meeting. A report
of the orders of the Court made on 29 July 1983 was given,
but in the report the reference to the announcement in matter
No. 9 of 1982 was that the Court said "that Prichard was not
a member of the" Clerks' Union. A report was given of the
objection taken by Mr. Knight to the calling of the meeting.
Under the heading "Purging the Register - Mr. M. A. Prichard"
relevant correspondence was referred to and particular
reference was made to the fact that no reply had been made by
the applicant to the letter of 13 July 1983, except the
correspondence from his then solicitors which stated that the
applicant "would not be replying personally to the
- 16 =-
correspondence ... within the period of fourteen days or
within any other period". The meeting unanimously passed the
resolution set out at the beginning of these reasons.
A letter dated 1 August 1983 from the S.A. Branch
to the applicant set out that resolution and stated that the
Secretary had acted upon the resolution. It is noted that
the letter dated 1 August 1983 is Exhibit J in these
proceedings and is identified as that letter "with annexure".
Stapled to the letter is an extract of part of the transcript
in matter No. 9 of 1983 setting out the announcement made by
the trial Judge on 29 July 1983. That part of the transcript
did not become available to the parties until well after 1
August 1983 and so the extract could not have been annexed to
the letter. Further, the letter makes no reference to any
annexure. The letter is the original letter received by the
applicant shortly after 1 August 1983 and the annexure must
have been stapled to that letter after it had been received
by the applicant.
The applicant has not exercised the right conferred
by S.A. Branch Rule 11(f) to appeal to the Branch Council.
Pursuant to Federal Rule 27(9) of the Clerks'' Union the
applicant has lodged an appeal to the Federal Executive of
the Clerks' Union against the decision of the S.A. Branch
Executive that his name be removed from the register of
members. On Wednesday, 10 August 1983 the S.A. Branch
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Council "confirmed the action of the Branch Executive in
purging Mr. Michael Anthony Prichard from membership of the
Union".
In addition to the matters already mentioned, the
applicant relies upon a copy of "The Clerk" a newsletter
published by the S.A. Branch. The respondent Krantz is the
editor of that newsletter. The issue No. 2 of 1983, May,
contains a summary of the legal proceedings commenced by the
applicant either on his own or in conjunction with others
involving the S.A. Branch and a State registered union
corresponding to the S.A. Branch.
Before considering the matters raised by
submissions, the Court should note that it finds the
respondent Krantz is a witness of truth and accepts his
evidence. There is very little conflict between his evidence
and the evidence given by the applicant and Mr. Knight, but
where there is conflict the Court prefers the evidence of the
respondent Krantz. In particular, the Court accepts his
evidence relating to the absence of bad faith in his
consideration of the matters relating to the removal of the
applicant's name from the register of members and the
inclusion of the summary of legal proceedings in "The Clerk".
In support of his claims, the applicant relied on a
number of contentions. He contended that the S.A. Branch
Rules contravene sub-section 140(1) of the Act in that they
PRM ce rt me eee
SRT TSF PET ATS ERSTE
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failed to make provisions required by the Act and the
regulations. Even if that was so, no rule upon which the
respondents relied would thereby become invalid.
Accordingly, no further reference is made to this contention.
He contended further that the election of the respondents
Krantz and Haseldine to the offices of Secretary and
Assistant Secretary respectively of the S.A. Branch was
invalid and therefore the action taken by the Branch
Executive at which they participated was invalid. That
election was conducted as an officially conducted ballot,
sub-section 141(9) of the Act, and thus, under sub-section
141(5) an order cannot be made that would have the effect of
treating that election as invalid. Accordingly, no further
reference is made to this contention.
The applicant contended that S.A. Branch Rule ll,
as well as S.A. Branch Rules 17, 18 and 19 each contravened
sub-section 140(1) of the Act and thus could not be relied
upon by the respondents to support the action taken by the
Branch Executive in removing his name from the register of
members. He contended that each of those rules imposed upon
members of the S.A. Branch conditions, obligations or
restrictions which, having regard to the objects of the Act
and in particular the object contained in paragraph 2(f), and
the purposes of the registration of organizations under the
Act, were offensive, unreasonable or unjust; see paragraph
140(1)(c) of the Act. He made a number of detailed
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submissions in support of that contention. The Court has
considered each of those submissions but does not find it
necessary to repeat them in these reasons for judgment.
The methods adopted to determine issues of the kind
raised by this contention are discussed in a number of recent
cases in the Federal Court of Australia, but for present
purposes reference is made to Wright v. McLeod, Federal Court
of Australia, 28 November 1983, unreported, per Evatt and
Northrop JJ. The principles of law to be applied need not be
repeated.
The S.A. Branch Rules 8 and 11 are designed to give
effect to the requirements of s.144 of the Act and Reg.
115(1) (da) (viii). S.A. Branch Rule 11 confers an
administrative power on the Branch Executive. It prescribes
a detailed procedure to be followed before the name of a
member can be removed from the register of members.
Initiative may come from the Branch Secretary pursuant to his
duty to be responsible for the proper carrying on of the
Branch and as general supervisor for and on behalf of the
Branch. When a matter relating to the purging of the
register of members is first brought before the Branch
Executive, the Executive is required to consider whether
there is material to suggest that one or more of the grounds
set out in sub-rule 11(a) may be satisfied. There is no need
for notice of this first step to be given to the member
aa
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concerned. This step is administrative in character and this
is the power which the Executive must exercise to set in
motion the subsequent procedures prescribed by Rule 11.
Those procedures bear many similarities to the procedures
under the Act whereby a member of an organization is able to
obtain a rule to show cause under s.140 or 141 of the Act.
Some of the grounds specified in sub-rule 1l1(a) may give rise
to difficult questions. The applicant argued that the
fourteen-day notice requirement was too restricted and
illustrated this by reference to a case where a member might
be on leave and might not be able to show cause within the
fourteen days. This argument is rejected. Some time limit
must be imposed and it cannot be said that a fourteen-day
period is oppressive, unreasonable or unjust. For present
purposes the relevant ground is that set out in paragraph .
(3). The Court is satisfied that there was material before
the Branch Executive at its meeting on 13 July 1983 which
justified it in commencing procedures based upon that
paragraph. It is important to note that those procedures are
not in the nature of charges for misconduct where procedures
to be followed in quasi-criminal matters are to be applied;
see for example the provisions of S.A. Branch Rule 38 which
empower the Branch Council to impose a fine and/or suspend or
expel any member of the Branch on the grounds specified in
that rule. In the present case, there is no prosecutor
laying a charge and the matters discussed in cases such as
Cains v. Jenkins (1979) 46 F.L.R. 278 and on appeal (1979) 42
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F.L.R. 188 have no application. The Branch Executive itself
calls upon the member concerned to show cause why his name
should not be removed from the register. It is not required
to act in a quasi judicial manner at that stage of the
procedure.
S.A. Branch sub-rules 11(d) and (e) prescribe
progedures to be followed before action is taken to remove
the name of a member from the register of members. Ifa
member responds to the notification of intention, the Branch
Executive is required to consider the matters raised by that
response. At that stage of the proceedings some of the
principles of natural justice may be imported, but in the
present case no response was made, the applicant did not
attempt to show cause and therefore under sub-rule 1ll(e) the
Branch Executive was not required to make further enquiry. A
right of appeal is given by sub-rule 11(f).
The Court finds that S.A. Branch Rule 11 of itself
does not contravene sub-section 140(1) of the Act.
The applicant submitted further that the quorum of
three persons at meetings of the S.A. Branch Executive, S.A.
Branch Rule 17, contravened sub-section 140(1) of the Act.
He stressed the fact that two persons had power to make
Gecisions adversely affecting a member. Even if that
submission was correct, it does not affect the present
-~ 22 -
application where four members voted in favour of the
resolution to remove the name of the applicant from the
register of members. In any event, the Branch Executive, as
the Executive Committee of the Branch Council, is subject to
the direction and control of the Branch Council; see S.A.
Branch Rule 18. If necessary, the Court would decide that on
the material before it in these proceedings, S.A. Branch Rule
17 does not contravene sub-section 140(1) of the Act. The
challenge to S.A. Branch Rules 18 and 19 likewise is
rejected. The challenge to those rules is not relevant to
any issue in this application.
The applicant challenged the validity of the
meetings at which the decisions attacked were made. Under
S.A. Branch Rule 17, the Branch Executive meets "on the
second Tuesday in each month or at such other time as it may
decide". The relevant meetings were not held on a Tuesday
but were held at a time determined by the Branch Executive
but not pre-determined by the Branch Executive. The
applicant referred to the structure of the rules which
provides for meetings of the Branch Executive on the second
Tuesday of each month and for meetings of the Branch Council
on the fourth Tuesday of each month. That is so, but the
Executive has power to meet at such time as it may decide and
in this case the Executive approved the meetings. In any
event, the Branch Council has confirmed the action taken by
the Executive.
On the facts found, the Court is satisified that
the meetings of the Branch Executive were called validly and
in accordance with the S.A. Branch Rules. Nothing vitiates
the resolutions passed at those meetings. None of the
members of the Branch Executive acted mala fide. There are
no facts proved upon which the principles discussed in Allen
v. Mownsend (1977) 31 F.L.R. 431 per Evatt and Northrop JJ.
at pp.483-89 can be applied in this application. In truth,
there is much to be said for the view that the Branch
Executive would not be acting in the best interests of the
S.A. Branch if it believed, on reasonable grounds, that the
applicant, who was causing the S.A. Branch to incur large
amounts of money in respect of legal costs, was not covered
by the Constitution of the Clerks' Union and failed to take
action under S.A. Branch Rule 11 to have his name removed
from the register of members. The fact that the Branch
Executive did so does not support a contention that its
members failed to exercise that power bona fide. Likewise,
there is no basis and no facts proved to justify a finding of
bias against the respondent Krantz or against any of the
other respondents, members of the Branch Executive.
In the present case it must be remembered that the
vital decision was made at the meeting of the Branch
Executive on 13 July 1983. The applicant, through his then
solicitor, determined not to show cause why his name should
~ 24 ~
not be removed from the register of members. He took no
steps to show cause. In fact, he caused notice of his
determination not to show cause to be given to the Branch
Executive. In those circumstances the Branch Executive was
not required to make further enquiry into the matter before
removing the applicant's name from the register of members.
Although findings of fact have been made relating to the bona
fides of the members of the Branch Executive and the absence
of bias against the applicant by those members, those
findings are not strictly necessary. On the facts of this
case there was no proceeding at which the question of natural
justice being applied in the hearing and determination of a
'show cause' matter came before the Branch Executive. On any
view, in the absence of showing cause, it is difficult to see
how there could be a denial of the requirements of natural
justice. Notice had been given to the applicant. He had
been given an opportunity to be heard but had not taken that
opportunity. The powers of the Executive Committee cannot be
thwarted by the absence of action taken by the applicant.
It must be noted also that the Court in these
proceedings is not acting as a court of appeal to determine
the merits of the decision taken by the Branch Executive. In
particular, in these proceedings, the Court should not and
does not express any opinion on the question of whether the
applicant is "covered by the Constitution" of the Clerks'
Union.
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Oty EEE ee ee eee
~~
Peay
- 25 +
It follows, therefore, that the rule to show cause,
insofar as (b) and (c) are concerned, should be discharged
and orders made accordingly.
SRE ea cares,
I certify thet this and the bwesty- four (24)
preceding pages are a truc copy of the
Reasons ior Judgment herein of the
Honourable Mr. Justice Nortxrep
me ame
Associate
Dated: 2% Noventer /943
i
MN CR a oO an aE eID a NTs Seon or