Kevin R. Whelpton & Associates (Australia) Pty Ltd & Anor v. The Attorney General of the Commonwealth of Australia [1987] FCA 184
Federal Court of Australia
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CATCHWORDS
Judicial review - decision to grant legal aid to applicants for
relief under the Trade Practices Act 1974 - previous proceedings
for similar relief dismissed for want of prosecution - applicants
for relief ordered to pay costs - applicants impecunious and
costs unpaid - application for stay of second proceedings refused
- whether Attorney-Gene¢gral bound to take into account the
outstanding liability for costs in determining whether to grant
legal aid - whether decision so unreasonable that no reasonable
person could have made it - whether denial of procedural
fairness. °
Administrative Decisions (Judicial Review) Act 1977, paras.
5(1)(a),(1)(e), 2(b) and (2)(g).
Trade Practices Act 1974, s. 170
KEVIN R. WHELPTON & ASSOCIATES (AUST) PTY LIMITED and ANOR. v.
THE ATTORNEY GENERAL OF THE COMMONWEALTH OF AUSTRALIA
No. G535 of 1986
Coram: Sheppard J.
Date : 16 April 1987 C
Place: Sydney
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY No. G535 of 1986
we ewe ws
GENERAL DIVISION
BETWEEN :
KEVIN R. WHELPTON & ASSOCIATES
2 (AUST) PTY LIMITED and ANOR.
Applicants
AND:
THE ATTORNEY GENERAL OF THE
COMMONWEALTH OF AUSTRALIA
Respondent
CORAM: SHEPPARD J.
PLACE: SYDNEY
DATE : 16 APRIL 1987
MINUTES OF ORDER
THE COURT ORDERS THAT: -
lL. The application be dismissed.
2. The applicants pay the respondent's costs of the application.
NOTE: Settlement and entry of orders is dealt with in Order 36
of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
)
)
NEW SOUTH WALES DISTRICT REGISTRY ) No. G535 of 1986
)
GENERAL DIVISION )
BETWEEN :
KEVIN R. WHELPTON & ASSOCIATES
(AUST) PTY LIMITED and ANOR.
Applicants
AND:
THE ATTORNEY GENERAL OF THE
COMMONWEALTH OF AUSTRALTA
Respondent
CORAM: SHEPPARD J.
DATE : 16 APRIL 1987
REASONS FOR JUDGMENT
HIS HONOUR: This is an application to have reviewed the decision
of the Attorney-General to grant legal aid to aMr. Donald
Cameron and a company which he controls, Camerons Unit Services
Pty Limited, hereafter referred to as "the Camerons". Notice of
this application was served on the Camerons but. although Mr.
Cameron was in Court during the hearing, he said that he did not
wish to take any part in the proceedings.
The decision was made pursuant to s. 170 of the Trade
Practices Act 1974 which is as follows:-
"170 (1) A person-
(a) who has instituted, or proposes to
institute, a proceeding before the
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Commission or the Tribunal, or a
proceeding before the Court under Part VI
or section 163A;
(b) who is entitled to participate, or has
been permitted to intervene, in a
proceeding before the Commission or the
Tribunal; or
(c) against whom a proceeding before the Court
has been instituted under Part VI or
section 163A,
May apply to the Attorney-General for a grant of
assistance under this section in respect of the
proceeding.
(2) Where an application is made by a person
under sub-section (1), the Attorney-General, or
an officer of the Australian Public Service
authorized in writing by the Attorney-General,
may, if he is satisfied that it would involve
hardship to that person to refuse the
application and that, in all the circumstances,
it is reasonable that the application should be
granted, authorize the grant by the Commonwealth
to the person, either unconditionally or subject
to such conditions as the Attorney-General or
officer determines, of such legal or financial
assistance in relation to the proceeding as the
Attorney-General or officer determines.
(3) In this section-
(a) a reference to a proceeding before the
Commission is a reference to a proceeding -
in relation to an application for, or in
relation to the revocation of, an
authorization; and -
(b) a reference to a proceeding before the
Tribunal is a reference to an application
to the Tribunal for a declaration under
sub-section 50A(1) or for a review of a
determination, or of the giving of a
notice, by the Commission". ~~
The applicants are aggrieved persons within the meaning of
the Administrative Decisions (Judicial Review) Act 1977 ("the
Judicial Review Act") because they are respondents to proceedings
instituted in this Court by the Camerons (application No. G345 of
1986 filed in the New South Wales Registry). Those proceedings
are not the only proceedings to have been commenced by the
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Camerons against the applicants. Proceedings claiming similar
relief were instituted in 1984 (application No. G276 of 1984).
Those proceedings involved the applicants in substantial legal
costs. On 18 July 1985, Wilcox J. ordered that the application
in matter No. G276 of 1984 be dismissed for want of prosecution,
but the order provided that the dismissal was to "be without
prejudice to any rights" of the Camerons "to bring fresh
proceedings or to claim the same relief in fresh proceedings".
His Honour ordered the Camerons to pay the applicants' costs of
the application and of the cross clain. These costs were
eventually taxed and allowed at the sum of $21,158.55, but the
certificate of taxation did not become available until 20
February 1987. The amount of the costs has not been paid.
The proceedings No. G345 of 1986 were commenced on 18 August
1986. In them the Camerons claim substantially the same relief
as was claimed in the proceedings No. G276 of 1986. The
applicants have recovered judgment against the Cameron company in
the District Court of New South Wales for the sum of $21,560.80.
On 17 July 1986, a summons to wind up the company was filed in
the Supreme Court of New South Wales on behalf of the applicants.
On 9 September 1986, a motion was filed in the Supreme Court on
behalf of the company seeking a stay of the winding-up
proceedings. The application for a stay was heard on 16
September 1986 and judgment was reserved. On 29 September 1986,
the Supreme Court made an order staying the winding-up
proceedings pending the determination of the proceedings No. G345
of 1986 by this Court.
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In the meantime Burchett J., on 19 September 1986, heard
argument on application for a stay of the proceedings No. G345 of
1986 and for an order that the applicants in that matter provide
security for costs. The ground of the application was in part
the outstanding order for costs made in the applicants' favour in
the proceedings No. G276 of 1984, The costs had not then been
taxed. On 24 September 1986 Burchett J. dismissed both
applications.
The principal relief sought in the proceedings No. G345 of
1986, is relief against the present applicants in respect of
alleged contraventions of ss. 52 and 53 of the Trade Practices
Act. The Camerons also sue the applicants for breach of
contract, fraudulent misrepresentation and for other causes of
action to which it is ummecessary to refer. The amount involved
in the claim is some $85,000, although this amount may be
greater, in the event that the Camerons should succeed, because
of a claim for damages for consequential losses which they allege
they suffered by reason of the destruction of what they claim to
have been a flourishing business. All these matters are in issue
between the parties and will not be resolved until the principal
application is heard.
In passing it may be noted that the file in matter No. G345
of 1986 is now almost as bulky as that in respect of the earlier
proceedings, No. G276 of 1984. Much of this bulk comprises
interrogatories and the answers thereto. I think it is
unfortunate that the interrogatories filed in the earlier
proceedings and the answers made to them were not used in the
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later proceedings. There may have been good reason for this, but
on. the face of the two files there appears to have been a
substantial amount of unnecessary duplication which an
appropriate directions hearing should have avoided.
The solicitor for the applicants first became aware that the
Camerons had been granted legal assistance pursuant to the
provisions of s. 170 of the Trade Practices Act on 18 August
1986. Their solicitor at all material times has been Mr. M.G.
O'Brien. In an affidavit filed in this application he said that,
prior to 29 September 1986, the date of the order for the stay of
the winding-up proceedings, he had not taken steps to challenge
the grant of legal assistance to the Camerons because he believed
that, either the proceedings to wind up the Cameron company would
be successful, or the application for a stay of the application
No. G345 of 1986 in this Court would succeed. He said that he
awaited the outcome of both sets of proceedings before incurring
further expenses on his clients behalf to challenge the grant of
legal assistance. The purpose of this evidence is to meeta
submission that the application for judicial review is out of
time. The application in this matter was filed on 20 November
1986, some three months after the applicants' solicitor learnt of
the decision to grant legal aid.
Mr. O'Brien said that he was unable to arrange a conference
with senior counsel until 17 October 1986. The conference had to
be postponed to 28 October due to the unavailability of senior
counsel,
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On 21 October 1986 Mr. O'Brien telephoned a Mr. Wheeler at
the Office of the Attorney-General in Canberra and told him that
he was interested in obtaining information as to a grant of legal
aid under s. 170 of the Trade Practices Act. Mr. Wheeler said
that he would send Mr. O'Brien a pamphlet which outlined the
guidelines for aid under the section. Shortly afterwards Mr.
O'Brien received the pamphlet. I shall refer to the detail of it
a little later.
On 29 October 1986, Mr. O'Brien wrote to Mr. Wheeler
referring to the grant of legal aidin this matter. He
continued: -
"Mr. Cameron and his company on their own evidence
are insolvent and he commenced these proceedings
only after obtaining a grant of aid from your
Department.- Our clients are greatly prejudiced by
your decision to grant legal aid to Mr. Cameron
for two principal reasons:-
i. If our clients are successful they have no
prospects of recovering their costs from Mr.
Cameron.
2. Mr. Cameron will continue the action
regardless of his prospects of success
knowing he has nothing to lose.
Our clients are therefore entitled under Section 5
of the Administrative Decisions (Judicial Review)
Act to apply for an order of review of your
decision but prior to that we require you,
pursuant to Section 13 of the said Act, to supply
us with a statement in writing setting out the
findings on the material questions of fact,
referring to the evidence and other material on
which those findings were based and giving the
reasons for the decision to grant legal aid to Mr.
Cameron and his company pursuant to Section 170 of
the Trade Practices Act".
On 31 October 1986, Mr. O'Brien ceased to practice with the
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firm of which he had, up to that time, been a member. He
commenced in practice with Messrs. Turnbull McWilliam, solicitors
of Sydney on 17 November 1986. The applicants continued to
retain him as their solicitor. On 18 November 1986 Mr. O'Brien
wrote to Mr. Wheeler informing him of the change of firms. On 21
November 1986, Mr. Wheeler wrote to Messrs. Turnbull McWilliam in
reply to Mr. O'Brien's letters of 29 October and 18 November.
Mr. Wheeler said:-
"Applications for financial assistance, which
include applications under s. 170 Trade Practices
Act, are dealt with ona confidential basis.
Decisions have to take into account the financial
and domestic circumstances of applicants and the
nature and merits of their case.
In order to make a proper determination it is
necessary that absolute confidentiality exist
between an applicant and the Department.
Without such confidentiality in respect of
information supplied and of the assessments of
hardship and reasonableness that are made, the
present administration of financial assistance
schemes would not be possible. --
I consider therefore under s. 13A that I am not
required to disclose the type of information that
you seek",
As mentioned, the application in the present proceedings was
filed on 20 November 1986. The following day Mr. O'Brien wrote
again to the Attorney-General saying that the application for an
order of review related to a grant of legal aid to the Camerons
pursuant to s.170 of the Trade Practices Act. Mr. O'Brien said
that, pursuant to Order 54, rule 3 of the Rules of this Court,
the applicants were obliged to serve with their application a
statement of the terms of the decision, the subject of the
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application. He said that he did not have a copy of the
statement and asked that the Attorney let him have a copy or
otherwise file a copy in the proceedings. Mr. Wheeler wrote on
23 December 1986 saying that the matter had been referred to the
Australian Government Solicitor.
At one stage it seemed that there would need to be argument
concerning the Attorney-General's contention that this was a
matter which fell within s. 13A of the Judicial Review Act, so
that he was not required to produce certain documents and
statements which the solicitor for the applicants had sought both
by direct request and by the service of an appropriate subpoena
on the Attorney-General. The need for this argument disappeared
because the parties reached a sensible understanding which
involved Mr. Wheeler making an affidavit and thus exposing
himself to cross-examination. It emerged that Mr. Wheeler was
the officer who had made the decision to grant legal aid, he
being an authorized officer for this purpose.
Before I come to Mr. Wheeler's affidavit and oral evidence. I
should make reference to the pamphlet referred to in Mr.
O'Brien's evidence. The pamphlet sets out the guidelines upon
which the Attorney-General proceeds in dealing with applications
under s. 170 of the Trade Practices Act. The guidelines apply,
not only to trade practices cases, but also to cases arising
under a number of other Acts. Guideline No. 4 provides that it
is a condition of the exercise of discretion that the
Attorney-General be satisfied in regard to hardship and
reasonableness. It goes on to say that, if he is so satisfied,
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the exercise of the discretion is unfettered and "accordingly,
each case must be determined on its own merits and all relevant
circumstances must be taken into account".
The guidelines indicate what is meant by "hardship" and
"reasonableness". In guideline No. 8 it is said that, in
determining whether it is reasonable to provide assistance,
regard is had, amongst other things, to the prospects of success,
the nature and extent of the benefit or detriment that may accrue
to the applicant, the availability of legal aid generally and the
benefit to the public or any section of the public. The Attorney
may decline to grant assistance if it is available from another
source and there is no element of public interest in the
proceedings.
In his affidavit which was sworn on 24 February 1987 Mr.
Wheeler said that he considered and decided to grant the
application for financial assistance made by the Camerons. He
said the application had been made by an application received in
the Australian Legal Aid Office in April 1985. When Mr. Wheeler
made the decision to grant assistance, he was aware of the orders
made by Wilcox J. on 18 July 1985. He said that he considered
that the Camerons' case had reasonable prospects of success and
the fact that their earlier case had been dismissed for want of
prosecution confirmed to him that they did not have adequate
funds to continue the litigation. It may be noted at this point
that, in the course of the hearing of the application to dismiss
the proceedings No. G276 of 1984 for want of prosecution, Wilcox
dg. was informed of the pending application for legal aid which
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the Camerons had made.
In his oral evidence Mr. Wheeler said that his decision to
grant financial assistance was made on 7 July 1986. He was
referred to the fact that Mr. O'Brien did not learn of the
decision until 18 August 1986, and to the fact that the present
application was filed on 20 November 1986. He was asked whether
any moneys had been expended by the Commonwealth or in legal
costs incurred by the Camerons in the conduct of the proceedings.
He said that he authorized payment of just under $5,900 (in fact
$5,886.70) on 20 November 1986.
In the course of his cross examination Mr. Wheeler said that
it was a term of the grant of legal aid in cases which were
likely to have "a money result", that the applicant for legal aid
refund all moneys paid out. He said the way that legal aid was
granted was that the applicant was granted a sum which in effect
he paid to his solicitor. The matter was dealt with in this way
so that it would be clear that the applicant himself incurred the
costs and was entitled to the henefit himself of any costs order
made in the proceedings against the other party. Mr. Wheeler
said that, if the Camerons were unsuccessful in the proceedings,
the Attorney-General would not be obliged to meet any order for
costs made against the Camerons in favour of the present
applicants. He said that that was how the scheme provided for in
s. 170 of the Trade Practices Act had always operated.
Me. Wheeler confirmed that he was aware, when he made his
decision, of Wilcox J.''s decision of 18 July 1985. He did not
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remember reading a copy of his Honour's judgment, but he was
aware that the earlier application had been dismissed for want of
prosecution and that the Camerons had to pay the present
applicants' costs of those proceedings. He said that he was not
aware of the amount of those costs, but had subsequently learnt
of the amount of the figure at which the costs had been taxed.
Mr. Wheeler's evidence continued:-
"Now, when you made your decision to grant aid to
Mr. Cameron did you in the exercise of your
decision-making processes, consider the financial
cost to the Whelpton interests in the litigation?
---Only in the sense that I made several inquiries
to see if Mr. Whelpton and his company were worth
powder and shot.
Would it be fair to say that you wanted to make
sure that they had money to pay the verdict rather
than how much money they were owed by Mr. Cameron?
---Yes.
At the time that that decision was made you did
not feel it necessary to make inquiries of either
the Whelptons or the court to ascertain how much
the taxed costs would be? ---Correct. I was
concerned with the decision of Wilcox J., as to
whether it purported to be a dismissal on the
merits. When I knew it was not a dismissal on the
merits I did not inquire further into it".
Mr. Wheeler was referred to the words, "in all the
circumstances", in s. 170 of the Trade Practices Act. He was
asked whether he referred only to the Camerons' circumstances and
not to the present applicants' circumstances. Mr. Wheeler's
answer was, "other than whether they were worth suing, correct".
Mr. Wheeler said that he thought no further about the applicants'
position and considered that the reference to "hardship" in the
guidelines was hardship imposed on the Camerons and not on the
applicants.
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Mr. Wheeler was asked questions about the payment of the
amount of almost $6,000 towards the Camerons' costs. He said
that if the decision to grant legal aid were set aside, he did
not envisage that there would be any thought of recovery
proceedings being instituted against the Camerons by the
Attorney-General.
Mr. Wheeler said that if his decision were set aside, the
matter would be considered afresh. The Camerons would be invited
to say What their then current financial circumstances were and,
"because of Mr. Whelpton and his team's specific interest in the
matter they would be invited to put in whatever they wanted to
say about the financial implications plus their comments on the
merits and state of the case". Mr. Wheeler was asked why that
had not been done before. He said, "because in dealing with
applications for assistance the application is looked at from the
point of view of the applicant". There followed a lengthy
discussion between Mr. Wheeler and myself concerning the
appropriateness of this as a general rule. That discussion is
not, I think, relevant for the outcome of this case, but it
raises, in my opinion, serious questions about the administration
of legal aid in the community, questions which are not
infrequently discussed amongst judges because of their perception
that Litigation in which one or more of the parties has legal aid
sometimes involves very. lengthy hearings and a marked
unwillingness on the part of legally aided parties to consider
offers of settlement. -
I come now to deal with the questions which arise for
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decision in this application. The first question is whether the
application was made within a reasonable time; see sub-sec. 11(4)
of the Judicial Review Act. The case is not one for which there
is a prescribed period within which an application for review is
to be made; see sub-sec. 11(3). I do not think that the time
taken, that is three months from the date when the applicants'
solicitor became aware of the making of the decision is unduly
long. Especially is that so when there is taken into account the
various matters mentioned in Mr. O'Brien's evidence which [I
accept. There is the matter of possible prejudice because of the
payment of portion of the Camerons' costs on 20 November 1986.
But the overall effect of Mr. Wheeler's evidence is that no
prejudice would be suffered if the decision to grant legal aid
were quashed. The sum would not be sought from the Camerons and
would be written off. In any event, the matter, so far as the
order of this Court is concerned, would be overcome by
specifying, in the order of the Court, that the decision be
quashed or set aside with effect from a date after 20 November
1986. That would protect the money already paid; see para.
16(1)(a) of the Judicial Review Act.
In the resuit I am satisfied that the application was brought
within a reasonable time and that I ought not to refuse to
entertain it.
I turn then to the matters of substance which are in issue.
The principal submission made on behalf of the applicants is
based upon paras. 5(1)(e) and (2)(b) of the Judicial Review Act.
In short it was submitted that Mr. Wheeler had failed to take a
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relevant consideration into account in arriving at his decision
to grant legal aid. The relevant consideration relied upon
consists of the following collection of circumstances viewed as a
whole. The earlier proceedings were dismissed for want of
prosecution and the costs ordered to be paid by the Camerons to
the present applicants had not been paid or provided for. The
amount of the costs was not ascertained at the time the decision
was made, but it should have been clear to Mr. Wheeler that the
amount would be substantial. The result is that, not only will
the present applicants be unable to recover costs against the
Camerons in these proceedings, in the event that the applicants
are successful; they will remain unable to recover the costs
which the Camerons have already been ordered to pay as well.
They are thus in a substantially worse position than that usually
faced by a party whose adversary is legally aided. They face the
prospect, in the event of their being successful, of having to
pay the entirety of their own costs, not in one proceeding but in
two. The applicants contend that Mr. Wheeler was bound to take
all those matters into account when reaching his decision. It is
plain that he did not.
In addition to submitting that they were entitled to relief
on this basis, counsel for the applicants also submitted that the
decision arrived at was one which was so unreasonable that no
reasonable person could have so exercised his decision-making
power; paras. 5(1)(e) and (2)(q) of the Judicial Review Act. In
written submissions lodged on 10 March 1987, after I had reserved
my decision, counsel for the applicants also relied on a breach
of the rules of natural justice, really a failure to accord the
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applicants procedural fairness, in that Mr. Wheeler had not
sought the applicants' submissions on the application after he
knew that the Camerons had failed to prosecute the earlier
proceedings and had been ordered to pay the appllicants' costs of
those proceedings; see para. 5(1)(a) of the Judicial Review Act.
The circumstances in which a failure to take into account a
relevant consideration may be successfully relied upon by an
applicant for judicial review were the subject of recent
discussion in Minister for Aboriginal Affairs v. Peko-Wallsend
Limited (1986) 60 A.L.d.R. 560. In summary, the applicable
principles, in relation to a case such as this, are:-
(a) The ground will only be made out if the decision-maker fails
to take into account a consideration which he is bound by law
to take into account in making the decision.
(b) The factors a decision-maker is bound to consider are
determined by the construction of the statute conferring the
discretion. If the statute expressly states the
considerations to be taken into account, it will often be
necessary for the Court to decide whether those enumerated
factors are exhaustive or merely inclusive.
(c) If the relevant factors (i.e. those the decision-maker is
bound to consider) are not expressly stated, they must be
determined by implication from the subject matter, scope and
purpose of the Act.
ve
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(d) The limited role of the Court reviewing the exercise of an
administrative discretion must constantly be borne in mind.
It is not the function of the Court to substitute its own
decision for that of the administrator by exercising the
discretion which the legislature has vested in him.
The above is a summary of some of the principles stated by Mason
dg. (as he was) in the Peko-Wallisend case; see pp. 565-566.
The relevant provisions of s. 170 of the Trade Practices Act
empower the grant of legal aid if the Attorney-General, or an
officer he has authorized in writing, is satisfied that it would
involve hardship to the applicant to refuse the application, and
that, in all the circumstances, it is reasonable that the
application should be granted. Nothing arises in relation to the
question of hardship. That matter is not in contest. What is
submitted by counsel for the applicants, however, is that the
words "in all the circumstances" required Mr. Wheeler to take
into account the fact that earlier proceedings brought by the
Camerons had been dismissed for want of prosecution and, most
importantly, that the Camerons had been ordered to pay the
present applicants' costs of then. In short, the submission
which was made was that, unless' these matters were taken into
account by Mr. Wheeler, he had not considered all the matters
which he was required to consider in order to determine whether
it was reasonable that the application should be granted, that is
he had not considered "all the circumstances".
In support of his submission, counsel for the applicants
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relied upon the decision at first instance and in the Court of
Appeal in England in Upsons Limited v. E. Robins Limited C1956] 1
Q.B. 131. That was not a case of the exercise of an
administrative discretion but the exercise by a County Court
Judge of jurisdiction under landlord and tennant legislation
which empowered the Court to make an order for the grant of a new
tenancy. The tenancy was required to be one which was determined
by the Court "to be reasonable in all the circumstances". As I
read the judgments in the Court of Appeal, they were concerned
only with the question whether the Judge at first instance was
empowered or entitled to take into account grounds of opposition
advanced by the landlords in relation to the claim made by the
Cenant as to the duration of the new tenancy. It is true that
there is a passage in the judgment at first instance which refers
to the Court being bound to take such a matter into account, but
this was not a matter referred to in the Court of Appeal. For
that reason, and also because the construction of a different
statute is involved, I have not found the case helpful in the
determination of the present problen.
Mr. Wheeler, in the course of his evidence, made it clear
that it was not the practice to consult, or to seek submissions
from, the other party to litigation or projected litigation when
an application for legal aid was made. It was to the
circumstances of the applicant that regard alone was had. Mr.
Wheeler referred to difficulties which would otherwise arise in
relation to matters of confidence which are frequently
communicated to the Attorney-General in relation to such an
application. This case is not a case of that more usual kind. I
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am not called upon to decide whether the Attorney's practice ina
More usual situation is in accordance with what the section
requires or not. What makes this case different is the
termination of the earlier proceedings and the making of the
order for costs which, in the events which have happened, the
applicants will be unlikely to recover unless they are able to
deduct the amount of their entitlement under the order from any
amount which the Camerons may recover from them in proceedings
No. G345 of 1986. As I have said, if the applicants are
successful in defeating the Camerons' claim, they will not only
fail to recover the costs awarded to them in the current
proceedings, but also the costs already awarded to them in the
former proceedings.
So the question is whether this was a matter which Mr.
Wheeler was bound to take into account because it was a
circumstance falling within the words "in all the circumstances"
in sub-sec. 170(2). I confess that I have not found the question
free from difficulty. On the one hand, the application is made
ex parte to the Attorney-General; notice of it is not required to
be given to the other party to the proceedings. In those
circumstances there is much to be said for the view that it is
the circumstances of the applicant for legal aid to which the
section refers. On the other hand, the expression which is used
is a general one and the question which the Attorney-General has
to decide is whether it is reasonable that the application should
be granted, This in turn raises further questions. To whom, or
in what interest, must the application be reasonable. Plainly
enough it is necessary to consider whether to grant the
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application would be reasonable or unreasonable from an
applicant's point of view. Furthermore, the section being
included in an Act, a major purpose of which is to protect the
public interest, it would appear that the Attorney-General is
required to consider whether it would be reasonable or
unreasonable to grant the application from the point of view of
the public interest. What the present applicants seek, however,
is that the reasonableness or otherwise of granting the
application be tested against their own circumstances,
particularly the fact that they are unlikely to be paid the
amount of the order for costs to the benefit of which they are
entitled.
There are some situations in which a decision-maker, upon
whom is conferred a wide discretion, may decide what
circumstances he will take into account, and what he will omit
from account. This was a matter referred to by Deane J. (when a
Judge of this Court) in his judgment at first instance in Sean
Investments Pty Limited v. MacKellar (1981) 38 A.L.R. 363. Sean
Investments was approved by the High Court in the Peko-Wallsend
case. In relation to this matter his Honour said, in the context
of the legislation there under consideration, that the particular
considerations which were to be taken into account and the
respective weight to be given to them was, to no small extent, a
matter for the Permanent Head of the Department of Health and, on
review, the Minister (pp. 373-4). His Honour also said that the
presence of the ground in the Judicial Review Act did not mean
that a party affected by a decision was entitled to make an
exhaustive list of all the matters which the decision-maker might
20.
conceivably regard as relevant and then attack the decision on
the ground that a particular one of them was not specifically
taken into account (p. 375). The legislation which Deane J. had
to consider was s. 40AA of the National Health Act 1953. The
relevant part of the section in its then form provided that the
Permanent Head should, in determining the scale of fees in
relation toa nursing home, have regard to "costs necessarily
incurred in providing nursing home care in the nursing home",
Plainly enough, this provision entitled the Permanent Head to
take into account other matters relevant to the determination of
a scale of fees, provided he did have regard to "costs
necessarily incurred".
Because of the difference in the legislation the decision in
Sean Investments is not of direct help, but a consideration of it
serves to underline the question which I think arises here for
determination. Are the words, "in all the circumstances",
intended to compel the decision-maker to take into account every
conceivably relevant circumstance before he arrives at his
decision: or are they intended rather to indicate that he is to
have a very wide discretion so that he may have regard to some
circumstances and disregard others, notwithstanding that it would
be open to him to have regard to them if he wished. In other
words, is it for the decision-maker to determine what
circumstances he will take into account and what he will omit, or
is he subject to the supervision of the Court in his selection of
all of them. TI do not think that the answer to this question can
be straight forward. Questions of degree become involved. T
think the better view is that, in some cases, a circumstance will
21.
be seen to have such a direct bearing on the outcome of the
decision, that it will be something the decision-maker is bound
by law to take into account. Other cases will not fall into that
category. In such cases it will be for the decision-maker to
reach his own conclusion on the relevance, not weight, to be
attributed to the particular circumstances upon which a party has
relied. He will be the judge of what is, and what is not,
relevant. In my opinion, it is into this latter category that
this case falls. The circumstances relied upon by the present
applicants are a matter which Mr. Wheeler, if he had chosen to do
so, could have taken into account; but they are not a matter
which he was required to take into account. It was a matter for
him whether he took them into account or not. It follows that I
am of opinion that the applicants' first submission must fail.
I do not regard this as acase in which Mr. Wheeler's
decision was so unreasonable that the jurisdiction of the Court
in this regard has been attracted. The second submission is,
therefore, also rejected. -
That leaves procedural fairness. I put aside the question
whether there may not be circumstances in which the
Attorney-General, or a person authorized by him, is bound to
accord procedural fairness when dealing with an application under
s. 170 of the Trade Practices Act. In this case Mr. Wheeler did
not fail to accord the applicants procedural fairness because he
drew no adverse conclusion against them. All he did was to
determine that the Camerons had a reasonable chance of succeeding
in their claim:and were in need of financial assistance to
22.
prosecute it. He did not take the present applicants'
circumstances into account nor consider their position at all in
reaching his decision. That indeed is the principal complaint
which the applicants make. In those circumstances the third
submission must also fail.
In the result the application is dismissed with costs.
| certify that this and the 2) preceding
pages are a true copy of the reasons for
judgment herein of The Honourable
Mr Justice Sheppard. f HTM
Associata
pata (6 STAIL (787
Counsel for applicant: Mr. D.L. Warren
Solicitors for applicant: Turnbull McWilliam
Counsel for respondent: Mr. G. Hosking
Solicitors for respondent: Australian Government Solicitor
Date of hearing: 24 February 1987