Aspar Autobarn Co-Operative Society & Ors v Dovala Pty Ltd & Ors [1986] FCA 538
Federal Court of Australia
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VATCHNURDS
Practice and Procedure - application for leave to appeal -
mandatory interlocutory injunction - whether it was shown that
primary judgment was wrong, or at least attended with sufficient
doubt to justity granting leave, or that substantial injustice
would be done by leaving the judgment unreversed, or that there
were any other circumstances which would justity the grant ot
leave, assuming without deciding that the motion to a Full Court
for leave, was competent.
'
Niemann v. Blectronic Industries Ltd (1978) VR 431
Adam —. Brown Male Fashions Pty Ltd v. Philip Morris Inc (1981)
148 CLR 170, at 177.
Commissioner ot 'Taxation v. Nestle Australia Limited ¢«G 346 of
1986, 5 November 1986)
ASPAR AUTOBAKN Q-OPERATIVE SOCIETY & ORS v. DOVAGA PTY LIMITED &
ORS
VG 295 OF 1986
Sweeney, Northrop & Keely JJ.
Melbourne
21 November, 1986
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY
GENERAL DIVISION
BETWEEN :
~- eevee
ASPAR AUTOBARN CO-UPERATIVE SOCIETY
NO. VG 295 of 1986
LIMITED
RAMPANT HOLDINGS PTY LIMTED
BL-NIDO NOMINEES PTY LIMITED
CARAC SALES PTY LIMITED
AITH PTY LIMITED
McNIVENS PTY LIMITED
WARRAGUL AUTO ACCESSORIES PTY
LIMITED
HIGHTAC PTY LIMITED
First Applicant
Second Applicant
Third Applicant
Fourth Applicant
Fifth Applicant
Sixth Applicant
Seventh Applicant
Eighth Applicant
JUDALEX [INVESTMENTS PTY LIMITED
MORNINGTON SPEED SHOP PTY LIMITED
& J ACCESSORIES PTY ELIMI
Ninth Applicant
Tenth Applicant
Eleventh Applicant
WIMMERA SPEED & AUTO CENTRE PTY
LIMITED
AUTOPART CENTRE PTY LIMITED
Twelfth Applicant
Thirteenth Applicant
PROFESSIONAL PERFORMANCE +a tirm)
Fourteenth Applicant
AND: DOVALA PTY LIMITED First Respondent
VICTOR DEMERIS Second Respondent
PREBEN HUNDAHGL Third Respondent
DONALD MORRIS Fourth Respondent
PATCHSELL PTY LIMITED Fifth Respondent
THE COURT: Sweeney, Northrop and Keely JJ.
DATE JUDGMENT DELIVERED: 10 November, 1986
DATE REASONS FOR JUDGMENT DELIVERED: 21 November, 1986
PLACE: Melbourne
MINUTE OF ORDER
THE COURT ORDERS THAT:
1. That the motion be dismissed with costs.
Note: Settlement and entry of orders is dealt with by Order
36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
)
VICTORIA DISTRICT REGISTRY ) NO. VG 295 of 1986
,
GENERAL DIVISION
BETWEEN :
ASPAR_ AUTUBARN CO-OPERATIVE 30 ¥
LIMITED First
RAMPANT HOLDINGS PTY LIMTED Second
EL-NIDO NOMINEES PTY LIMITED Third
CARAC SALES PTY LIMITED Fourth
AITH PTY LIMITED Fifth
McNIVENS PTY LIMITED Sixth
WARRAGUL AUTO ACCESSORIES PTY |
LIMITED Seventh
HIGHTAC PTY LIMITED Eighth
JUDALEX INVESTMENTS PTY LIMITED Ninth
MORNINGTON SPEED SHOP PTY LIMITED Tenth
E,B & J ACCESSORIES PTY LIMITED Eleventh
WIMMERA SPEED & AUTO CENTRE PTY
LIMITED Twelrth
AUTOPART CENTRE PTY LIMITED Thirteenth
PROFESSTONAL PERFORMANCE (a firm)
Fourteenth
Applicant
Applicant
Applicant
Applicant
Applicant
Applicant
Applicant
Applicant
Applicant
Applicant
Applicant
Applicant
Applicant
Applicant
AND: DOVALA PTY CIMITED First Respondent
VICTOR DEMERTS Second Respondent
PREBEN HUNDAHL Third Respondent
DONALD MORRIS Fourth Respondent
PATCHSELG PTY LIMITED Fifth Respondent
THE COURT: Sweeney, Northrop and Keely JJ.
DATE : 21 November, 1986
PLACE : Melbourne
REASONS FOR JUDGMENT
Sweeney and Keely JJ.
By application dated 17 July 1986 the applicants sought,
amongst other things, interlocutory relief against the respondents
by way or injunctions restraining them from using the word
"Autobarn" or the words "Auto Barn" in the course of or in
connection with their businesses.
The claim tor interlocutory relief was decided by Jenkinson
J. on 13 August 1986, when his Honour made the following orders:
"UPON each applicant by his or its solicitor undertaking
to the Court that he or it will pay to any party
adversely aftected by any of the orders numbered 1 and 2
such compensation (if any) as the Court thinks just, in
such manner as the court directs and that in the event
that the claims ror relief specified in paragraph 4(b)
of the originating application herein be ultimately
retused in this proceeding he or it will pay all costs
incurred by the respondent Dovala Pty. Ltd. in or in
connection with the change of name hereinafter ordered
ae
to be etfrected;
AND UPON the applicant Aspar Autobarn Co-operative
Saciety Ltd. by 1ts solicitor undertaking that 1¢ will
torthwith apply ror registration or the name Autobarn
under the Business Names Act lY¥o2 of the State or
Victor1la and that in the event that the claims aforesaid
be ultimately retused in this proceeding 1t will at its
own cost do all such acts and things and execute all
such documents as may be necessary or desirable to be
done or executed in order to enable the respondent
Dovala Pty. Ltd. to assume once more its registered
business name 'Auto Barn';
THE COURT ORDERS THAT:
lL. Each of the respondents Dovala Pty. Ltd., Vactor
Demeris, Preben Hundahl and Donald Morris be
restrained until the determination ot the
proceeding or turther order from using 1n any way
in the course of or in connection with business or
trade the name Auto Barn or any other name which
13 substantially identical with or deceptively
similar to the name Autobarn .
2. The respondent Dovala Pty. Ltd. lodge forthwith
with the Commissioner for Corporate Affairs or the
said State a statement or the kind which 1s
ordained by Section 12(3) of the Business Names Act
1962 of the said State and in the form prescribed
notitying the said Commissioner that it has ceased
to carry on business in the said State under the
business name Auto Barn'.
3. The applications for interlocutory relief as
against the respondent Patchsell Pty. Ltd. be
dismissed.
4, Each party's costs of the applicants applications
tor interlocutory relief be reserved."
The background to the application was conveniently set out by
his Honour as tollows:-
"There are in Melbourne some shops which sell motor
vehicle accessories, some motor vehicle spare parts, and
little else. The applicants, other than the first-named
applicant, and the respondents are concerned in the
conduct ot shops of that kind. The shop keepers with
which the respondents are associated are members of a
company called Victorian Auto Accessories Group Pty.
Ltd., which acts on behalf of its members to secure' the
financial advantages which purchasing of stock, and
advertising, on behalf of all the members attracts. 'The
members signify their membership by display of the trade
mark "Auto Group". In the middle ot 1985 unhappy
ditterences led to the withdrawal or expulsion ot some
members. Some or them joined with other motor vehicle
accessories s3hop keepers to rorm the tirst-named
applicant wunder the Co-operation Act 1958 (Vic. on 15
July 1985. The other applicants are most ot the tirms
and companies on behalf ot which membership ot the
First-named applicant 1s held by natural persons. The
objectives or the association which finds juristic
expression in the first-named applicant are similar to
those which animate the association which has for its
trade name the expression Auto Group . On 27 August
1985 the members ot the first-named applicant resolved
to use the word Autobarn' as a trade name by which to
designate their association and on 30 August 1985 that
word was inserted into the tirst-named applicant's name.
But on 27 August 1985 the applicants solicitors learnt
that the name ' Autobarn could not be registered under
the Business Names Act 1962 (Vic.) because the name
'Braddy 3 Auto Barn' was registered in respect of an
automotive repair business in West Geelong. Accordingly
the name Aspar Autobarn was on that date registered as
the first-named applicant's business name. [t was the
single word 'Autobarn', however, which the other
applicants and the first-named applicant on their behalf
used as the trade name by which to advertise to the
Public their new association 1n trade. Although each
member of that association continued to trade and to
advertise under its own name or its own business name,
each also gave prominence on its premises and in other
advertising to the word Autobarn'. The get-up of the
word was uniform among the applicants: contiguous,
coloured, parallel lines 'green on yellow) below the
word or at each end of the word, a capital letter '0' in
the middle of the word and a lower case a at the
beginning. During September and October 1985 many of
the applicants painted the word in that get-up on ther
shops and in late October and November they joined in
advertising 1n which the word and the get-up were
prominent. It was expected that on 4 October 1985 the
registration ot the name 'Braddy's Auto Barn' might
expire and I infer that the extensive, and expensive,
use of the word 'Autobarn' by the applicants in
September and October 1985 was thought to be justified
by their expectation of securing registration of the
word without association with the word 'Aspar' after the
lapse of a month after 4 October 1985, which $.11(4) of
the Business Names Act 1962 required the Commissioner
for Corporate Atfairs to allow betore accepting the word
for registration. When on 7 November 1985 the
applicants' solicitor sought to apply for registration
ef the word 'Autobarn', he found that registration of
the word, in the form 'Auto Barn', had been granted to
the respondent Victor Demeris on 30 October 1985.
The three natural persons who are respondents are
directors of the first-named respondent and the
respondent Victor Demeris 13s a director ot the
5.
fifth-named respondent. The respondent Dovala Fty. Ltd.
has since $y November lys85 conducted a motor vehicle
accessories shop at 155 Malop Street Geelong. The right
to use the named Auto Barn was transferred by Mr.
Demeris to Dovala Pty Ltd. on 41 uctober 1985 and 1t i183
under that name that the business which Dovala Pty. Ltd.
conducts at 155 Malop Street has been carred on. The
word appears on the tront panel ot a door giving access
to the shop trom Malop Street, but that was not put on
the door until May or June lits. Within the shop a 31gn
about 8 reet wide and about 1 toot high has been
displayed in an elevated position since Dovala Pty. Ltd.
commenced trading on 3u November 1985. On the 31gn 18
printed in letters about 6 inches high the word
Autobarn', as a single word and in letters ot which
only the First 18 a capital. The trade name Auto Sarn
1s used to designate the proprietor of the shop on
credit card documents. No advertising, except as has
been already indicated, or the Geelong shop or its wares
or the business conducted init has been associated in
any way with the word Autobarn or the words 'Auto Barn'.
The latter circumstance was ocxplained in evidence as a
consequence ot the use of the trade mark Auto Group by
the members or Victorian Auto Accessories troup Pty.
Ltd., ot whom Dovala Pty. Ltd. 18 one. There was
evidence that members are subject to contractual
restrictions on the use otf a trade mark or name other
than Auto Group
The fifth-named respondent conducts a motor vehicle
accessories shop at l High Street Preston, where the
mark 'Auto Group' 13 prominently displayed. In about
May or June 1986 there was placed on the glass tront
door of the shop the following sign:
Dovala Pty. Ltd.
T/A Auto Barn
Registered vuttice
1 High St., Preston'
Neither the word 'Autobarn' nor the expression Auto
Barn' has been otherwise associated with any premises
with which a respondent is connected, except the shop at
155 Malop Street Geelong."
By notice of motion dated 7 September 1986 the tirst, second,
third and tourth respondents stated that they would move a Full
Court for an order granting them leave to appeal trom his Honour's
order.
This notice was given pursuant to s.24(1A) or the Federal
Court Act 1976 which provides that an appeal shall not be brought
from an interlocutory judgment "unless the Court or a Judge gives
leave to appeal".
In his reasons tor Judgment the learned trial Judge set out
the claims made bv the applicants to have acquired and to enjoy a
reputation and goodwill of substantial value under and by
reference to the name "Autobarn"., as being associated with one
another a3 members or the tirst applicant.
The applicants claimed that there had been a passing off by
the tirst respondent of its business at Geelong as associated with
the businesses or the applicants under the trade name "Autobarn".
His Honour proceeded to refer to the submissions of counsel
and to consider the facts which had been placed before him on
atfidavit and the operation or the Business Names Act 1ly62 (Vic.?.
He expressed the view that the applicants had committed themselves
to expensive advertising of the word ""Autobarn" during a period of
about two months before their reasonable expectation that the use
at the word would be lawful in and atter November 1:85 and were
disappointed on ° November 1985 when they learned that the
respondents had succeeded in obtaining registration under the
Victorian Act or the name "Auto barn".
vn 3 September 1385 the first named applicant applied tor
registration ot the logo "autobarn" as a Trade Mark under the
Trade Marks Act 15955.
His Honour held that the reputation and goodwill the
7.
applicants assert undoubtedly gained most of the value now sought
to be protected by injunction atter / November
"when the applicants who traded under the name
Autobarn knew, as I would inter, that they were
thereby contravening the provisions ot s.5 of the
Business Names Act 1962 (Vic.), which make 1t an offence
to carry on business under a business name which 18
neither registered under the Act nor consists ot the
name of each ot those who are carrying on business in
association. But the evidence shows that that
reputation and that goodwill had come into existence
shortly before November 1985, and certainly before 7
November 1985. It was not until the end of that month
that any or the respondents used the word in trade or
commerce. By that time the use ot the word in
connection with the retarl sale in Victoria of motor
vehicle accessories by a person not associated with the
applicant was, the evidence shows as a strong prima
facie case, likely to mislead consumers into a mistaken
belief that such an association did exist."
Honour then considered the question whether the
applicants in trading under the name ""Autobarn" after 7 November
1985 had not disentitled themselves to equitable relief. After
considering the facts and the relevant authorities, his Honour
said:
"My conclusion is, that the reputation and goodwill tor
the protection of which the applicants seek the court's
exercise of its injunctive power do not owe their
existence, although substantial enhancement of their
value 18 owed, to deliberate contravention of s.5 of the
Business Names Act 1962 by the applicants; and that in
all the circumstances ot this particular case the evil
consequences of those contraventions are not ot a_ kind
or gravity which would constitute a substantial
impediment to the grant ot ainterlocutory injunctive
relief.
The registration of the word "Auto Barn" under the
Business Names Act 1962 does not afford, in itself, the
respondents an answer to a claim that the use of the
word has constituted a breach of s.52, or 3.53(c) or
s.53(d) ot the Trade Practices Act 1974: Tec & Thomas
(Aust) Pry. -v. Matsumiya Comput Co. Pty. Ltd.
(1984) 53 A.L.R. 167 at 176 and cases there cited. A
serious question to be tried is shown by the applicants,
as I think, and the question is which way the balance of
convenience inclines."
His Honour then turther reviewed the tacts and concluded that
there 18 "a strong case tor the applicants whose prospects ot
success at trial are very good" and expressed the opinion that
"the balance or convenience also inclines in favour ot the
applicants". He considered that the respondents other than
Patchsell Pty Ltd should be restrained trom using the registered
name in trade or commerce until the determination ot the
proceeding.
The claim for interlocutory reliet against the tifth
respondent was dismissed, in the absence ot the necessary evidence
involving it in the impugned conduct.
His Honour then observed that as a result of the cessation of
the use of the name "Auto Barn" which would flow from the grant of
an injunction, under the provisions of the Business Names Act
1962, particularly ss.12(3), 13, 18 and 19, cancellation ot the
registration ot the name "Auto Barn" could be expected to follow,
but the necessary steps might take some months.
Counsel for the applicants had submitted that an order should
be made commanding the first respondent to execute an assignment
to the tirst applicant ot ali its right title and interest to and
in the business name "Auto Barn" and commanding 1t to lodge
forthwith a statement of the kind contemplated by 3.12(3) that it
had ceased to carry on business in Victoria under that name.
His Honour noted that the applicants were thus seeking a
9.
mandatory interlocutory injunction, rererred to the authorities
which ordinarily govern the making ot such orders, and said that
he did not consider that they had unqualified application in the
present case, where the grant ot the mandatory orders "is properly
to be regarded az merely ancillary to the substantial
interlocutory reliet which 13s to be granted". His Honour
considered that the second order sought should be made, "upon
appropriate undertakings by the applicants ot the kind which were
taken by Powell J. in Fletcher Challenge Ltd v. Fletcher Challenge
Pty Ltd (1981) NSWLR 196 at 207-4," but he refused to make the
tirst order. Appropriate undertakings were given, and are
recorded in the order.
Application was made to his Honour on 14 August tor a_ stay
pending the determination ot any appeal and on that day, the
following order was made:
"OPON each of the respondents, Dovala Pty Ltd, Victor
Demiris, Preben Hundahl, Donald Morris and Patschell Pty
Ltd by his or its Counsel undertaking, pending the
hearing and determination of an appeal against the
Urders made herein on 13th August 1986 or until further
Order:
(a) mot to advertise any goods or services or any trade
or business in or by reterence to the name
"Autobarn" or any name deceptively similar or
substantially identical thereto on radio or
television or by catalogue or by other printed
medium, (excluding credit card vouchers, receipts
or other such documentation) or in the Yellow Pages
or the Business [Information Guide or other like
directory; and
(b) to forthwith remove and keep removed trom display
the sign reading "Autobarn" located inside the
store at 155 Malop Street, Geelong;
THIS vOURT ORDERS BY CONSENT:
That the operation of the Orders numbered 1 and 2 made
herein on 13th August 1986 be stayed until the hearing
and determination of an appeal against the said Orders
by the respondents Dovala Pty Ltd, Victor Demiros,
Lo.
Preben Hundahl and Donald Morris or turther order."
The motion tor leave to appeal was supported by the
submission that the use ot the word i1n question by the tairst
respondent and its reputation were local to Geelong and the
applicants reputation was local to Melbourne and other localities,
the closest to Geelong being Sunshine. The short answer to this
submission 1s that the applicants reputation was the result,
amongst other things, or an advertisement in the Melbourne "Sun",
circulating widely throughout Victoria, including Geelong, and the
Geelong district could praperly be regarded, tor interlocutory
purposes, as being embraced within the scope of 1ts reputation.
The turther submission that any relevant goodwill as at 30
November 1985 was local to the business ot each applicant other
than the first applicant, in which the remaining applicants were
associated, ignored the reality and value of that association.
The submissions which were based upon the Business Names Act
1962 had been carefully weighed by the learned trial Judge, who
concluded that they should not stand in the way of the orders
which he considered appropriate.
It 13 important to bear in mind that the orders' under
consideration were made in the exercise ofr his Honour 's
discretion.
Assuming, without deciding, that the motion to a Full Court
for leave to appeal was competent, in our opinion it has not been
il.
shown that the primary judgment was wrong, or at least attended
with sutficient doubt to justify granting leave, or that
substantial injustice would be done by leaving the judgment
unreversed, or that there were any other circumstances which would
justify the grant of leave
(see Niemann v Electronic Industries Ltd (1978)
VR431;
Adam P. Brown Male Fashions Pty Ltd v Philip Morris
Inc. (1981) 148 CLR 170 at 177)
In parting with this matter, we observe that had the
respondents devoted the time and energy, which they have dedicated
to seeking leave to appeal, to an application for a speedy trial
of the case itself, it might well have been decided by now.
Similar considerations commended themselves to Bowen CJ., Lockhart
and Sheppard JJ. in Commissioner of Taxation v Nestle Australia
Limited (G346 ot 1986, 5 November 1986) when their Honours said at
p.18:-
"Tt is to be hoped that the parties will proceed
expeditiously to have this case brought on for final
hearing rather than involve themselves in tactical
skirmishes on interlocutory matters such as those the
subject of this appeal".
fhe order of the Court was that the motion be dismissed with
costs and we now publish our reasons. The directions hearing was
adjourned to 13 November 1986 before Jenkinson, J.
12.
I certify that this and the
preceding eleven (11) pages are
a true copy ot the Reasons tor
Judgment herein ot their
Honours Sweeney and Keely JJ.
Dated: 7 1986
Associate
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY V. No. G 295 of 1986
wee www
GENERAL DIVISION
BETWEEN :
ASPAR_ AUTOBARN CO-OPERATIVE
SOCIETY LIMITED and OTHERS Applicants
and
DOVALA PTY. LIMITED and OTHERS Respondents
COURT: SWEENEY, NORTHROP AND KEELY JJ.
DATE: 21 NOVEMBER 1986
PLACE: MELBOURNE
REASONS FOR JUDGMENT
NORTHROP J.
This proceeding, identified as V. No. G 295 of
1986, was commenced on18 July 1986 by the issue of an
application in conformity with 0.4 of the Federal Court
Rules. It is a proceeding within the original jurisdiction
of the Court. On 13 August 1986, the Court, constituted by a
single Judge, made interlocutory orders against some of the
respondents. Those respondents desired to appeal against
those interlocutory orders, They have not instituted an
appeal under 0.52 of the Rules; see in particular 0.52 rr.12,
13 and 14 and Form 55.
By notice in writing dated 3 September 1986, in the
proceeding V. No. G 295 of 1986, those respondents gave
notice to the applicants that they would on 10 November 1986
move the Full Court of the Federal Court for an order that
they be granted leave to appeal from the interlocutory
orders. In my opinion, that motion was not in conformity
with the provisions of the Federal Court Rules and was
incompetent. In my opinion, the motion should be refused on
that ground.
The Federal Court of Australia Act 1976 ("the
Act"), contains a clear distinction between the Court
exercising original jurisdiction and the Court exercising
appellate jurisdiction. Under the Act, subject to exceptions
not presently relevant, the original jurisdiction of the
Court is exercised by a single Judge; see sub-section 20(1),
and the appellate jurisdiction of the Court is exercised by a
Full Court; see sub-section 25(1). See also sub-sections
14(1) and (2). Under sub-section 24(1)(a), the Court has
jurisdiction to hear and determine appeals from judgments of
the Federal Court constituted by a single Judge but
sub-section 24(1A) provides:-
"An appeal shall not be brought from a
judgment referred to in sub-section (1) that is an
interlocutory judgment unless the Court or a Judge
gives leave to appeal."
In that sub-section the word "Court" means the Federal Court
and the word "Judge" means a Judge of the Federal Court
sitting in Chambers; see s.4. Logically, it would be
expected that in the phrase "the Court or a Judge" the word
"Court" refers to the Court exercising original jurisdiction
and not the Court exercising appellate jurisdiction. It
would be strange to find that a Judge sitting in Chambers
could exercise the same powers as the Court exercising
appellate jurisdiction.
Sub-section 24(1A) was inserted into the Act by Act
No. 72 of 1984 and came into operation on 24 July 1984.
Prior to that time, there was an appeal as of right to a Full
Court froma judgment of the Court constituted by a single
Judge even where that judgment was an interlocutory order.
The policy of sub-section 24(1A) was to prevent delays in the
conduct of proceedings in the original jurisdiction by
constant appeals from interlocutory orders.
Before 24 July 1984, the provisions of sub-section
25(2) relevant for present purposes were:-
"Applications for leave or special leave to
appeal to the Court from a judgment of another
court may be heard and determined by a _ single
Judge or by a Full Court... ."
A new sub-section 25(2) was inserted into the Act by Act No.
72 of 1984 and came into operation at the same time as
sub-section 24(1A). The provisions of the new sub-section
25(2) relevant for present purposes are:-
"Applications for leave or special leave to
appeal to the Court ... may be heard and determined
by a single Judge or by a Full Court ... ."
Order 52 of the Federal Court Rules contains
provisions relating to appeals to the Federal Court and
applications for leave to appeal. In that Order, unless the
contrary intention appears, the word "application" means
application for leave to appeal and the word "Court" means
the Court exercising its appellate jurisdiction; see 0.52
y.l. Prior to 15 July 1985, the rules of 0.52 relating to
applications for leave to appeal were contained in Division 1
of 0.52. That Division was headed "Application for leave to
appeal", An application for leave to appeal was to be
substantially in accordance with Form 54 to the Rules and the
respondent to the application was required to enter an
appearance. The application was to be determined "by the
Court or a Judge".
With effect from 15 July 1985, substantial
alterations were made to 0.52 with respect to applications
for leave to appeal. The heading to Division 1 was altered
to read "Leave to appeal from judgments other than
interlocutory judgments of the Court". A new rule 2A was
inserted in Division 1. That rule provided:-
"This Division applies to an application for
leave to appeal from a judgment other than an
interlocutory judgment of the Court."
In each of the heading to Division 1 and in r.2A a_ contrary
intention appears and of necessity the word "Court" appearing
therein means the Court constituted by a single Judge
exercising the original jurisdiction of the Court. The other
provisions of Division 1 remained in a form similar to those
in effect prior to 15 July 1985.
With effect from 15 July 1985, a new Division 1A
was inserted into 0.52. That Division is set out in full:-
"Division 1A - Leave to appeal from Interlocutory
Judgments of the Court
Rule 10
Leave to appeal from interlocutory judgments of the
Court
(1) An application for leave to appeal from
an interlocutory judgment of the Court may be made
orally to the Judge who has pronounced the judgment
at the time of its pronouncement or within such
further time as that Judge may fix.
(2) Where an application has not been made in
accordance with sub-rule (1), any application shall
be made by motion on notice in the proceeding, and
the provisions of Order 19 shall apply.
(3) An applicant under sub-rule (1) or (2)
may present his case and his argument to the Court
in writing pursuant to rule 15A."
As with the heading to Division 1 and with r.2A, in
the heading to Division 1A and in r.10, the word "Court", of
necessity, refers to the Court constituted by a single Judge
exercising the original jurisdiction of the Court. In
sub-rule 10(2) the word "proceeding" refers to the proceeding
in which the interlocutory order was made.
In the present case, the respondents, seeking leave
to appeal, did not make application orally to the Judge who
made the interlocutory orders. They have made application by
Motion in the proceeding in which the interlocutory order was
made but have purported to have the motion heard and
determined by a Full Court. That is in a form which is not
authorised by the Rules and is inconsistent with the Rules
since it purports to increase appellate jurisdiction of the
Court where the Rules make provision for the motion to be
heard within the original jurisdiction of the Court.
The provisions of 0.52 r.10 are in conformity with
the policy of -sub-section 24(1A) of the Act. The motion
before the Full Court illustrates the way in which the
hearing and determination of a proceeding within the original
jurisdiction of the Court can be delayed while an application
for leave to appeal from an interlocutory order in that
proceeding is pending before the Full Court. The
interlocutory orders were made on 13 August 1986. The first
sittings of a Full Court in Melbourne after that date
commenced on 10 November 1986. The motion for leave to
appeal was heard and determined on that day. I agree with
the observations of Sweeney and Keely JJ. relating to a
speedy trial of the proceeding.
In Reid v. Nairn 60 A.L.R. 419 a Full Court of the
Federal Court expressed the opinion that a person seeking
leave to appeal from an interlocutory order of the Court had
the option to make application to a Full Court or to the
Court constituted by a single Judge. Judgment in that case
was published on 7 June 1985, namely before 0.52 r.2A and
Division 1A and r.10 were first inserted into the Rules.
Since 15 July 1985, on a number of occasions, Full Courts
have applied the opinion expressed in Reid v. Nairn, but in
none of those cases has there been a discussion relating to
the effect of 0.52 r.10 on that opinion.
Havirig regard to the provisions of Division 1 and
Division 2 of 0.52 of the Federal Court Rules, itis my
opinion that the motion that came on for hearing before this
Full Court was incompetent and was rightly refused with
costs. If the motion was competent, it was rightly refused
with costs for the reasons expressed by Sweeney and Keely JJ.
I certify that this and the six preceding
pages are a true copy of the Reasons for
Judgment herein of the Honourable Mr. Justice
R.M. Northrop.
wee CG Dearelle_
Associate ..yer. Qo i cee ee ect ee neces
21 November
VG 295 OF 1986
Counsel for the Applicants: Dr. C.N. Jessup
Solicitors for the Applicants: Mallesons
Counsel for the Respondents: Mr. R. Merkel Q.C.
Mr. P.L. Mc Curdy
Solicitors for the Respondents: Russell Kennedy & Cook
Date of hearing: 10 November, 1986