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"JUDGMENT No. bSb/.81..
rea
CATCHWORDS
Administrative Law - order of review of decision of National
Crime Authority - whether Authority has power to limit the
statutory right or privilege of a witness to be represented
by the legal practitioner of his choice at a hearing before
the Authority - the nature of the power of an administrative
body to regulace the conduct of proceedings before ait -
nature of a hearing under National Crime Authority Act -
applicability of Amecican principle of law that the cight ta
counse of witnesses subpoenaed ta testiry ac an
investigation does not include the right to he represented by
counsel connected with or retained by tha persons being
investigatad.
Administrative Decizions (Judicial Review) 2ct 1377
A and OTHERS v. NATIONAL CRIME AUTHORITY
V. Nos. G 237, 232 and 240 of 15387
NORTHROP J.
MELBOGRNE
yr LN
"RECEIVED
2.7 NOV 1987
FEDERAL COURT
AUSTRALIA OF
PRINCIPAI
REGISTRY
a
wow ee 5)
wn rr en eee ne Se re +
.
ST tire ot ee egress St re nce tee
een oie eines
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT RECISTRY
GENERAL DIVISION
BETWEEN :
A and OTHER
and
NATIONAL CRIME AUTHORITY
cOURT: NORTHROP J.
DATE 27 NOVEMBER 1387
PLACE: MELBOURNE
MINUTES OF ORDER
THE COURT ORDERS AND DECLARES THAT: -
1. The decision sought t3 5a reviewed be
2. In the absence of any allegation ef
him, the legal practitioner chosen cy
a vight to be peasent at the hearine
while the applicant 15 giving eavidenc
3. The Authority pay the costs of the ap
|
wma
a)
V. Nos. G 237, 238
and 240 of 1987
Applicants
Respondent
SEC aside
Zscanduck against
the applicant has
by the Authority
licant
(Settlement and entry of Orders is dealt with in 0.36 of the
Rules of Court.)
wen
IN THE FEDERAL COURT OF AUSTRALIA
)
)
VICTORIA DISTRICT REGISTRY ) V. Nos. G 237, 238
) and 240 of 1987
}
GENERAL DIVISTON
BETWEEN :
A and OTHERS Applicants
and
NATIONAL CRIME AUTHORITY Respondent
COURT: NORTHROP J.
DATE : 27 NOVEMBER 1987
PLACE: MELBOURNE
REASONS FOR JUDGMENT
The primary 1ssue ra1rsed by these three
applications, heard together with che consent of all parties,
1s whether the National Crime Authority ("the Authority")
constituted under the National Ceime Ssutherity Act 1984 ("the
Act"), has the power to limit the statutory right or
privilege of a witness to be represented by the legal
ondary t1ssue
a
practitioner chosen by the witness. The sec
raised 183 whether, if the Authority has that power, 1t has
exercised that power according to law.
ee
oo
(ot
, -
Section 7 of the Act constitutes the Authority
which consists of the Chairman and two other members.
Sub-section I11(1) lists the general functions of the
Authority, while sub-section 11(2) lists the pecial
ul
functions of the Authority. The present applications rczlate
to the special functions of the Authority. Sub-section 11(2)
is set out in full:-
"(Z) The special functions of the Authority ara -
aa
eo
an
weoct Foi
are Oo
fu
la)
in Force in respect of a
ng to a relevant criminal activity
wate Ehe matter an sG far a
vant offence is, or the relevant of
are or include, an offence or offe
a law of the Commonwealth or of
and
cence to Che Authority made under
SPR UW e
Lome
a
o
ra
a=
(b) where a reference to the Authority made in
accordance with section id by a Minister of
the Crown of a State is in force in respect of
a matter relating to a relevant criminal
activity - subject to sub-section 14(1), to
investigate the matter in s0 far as the
relevant offence is, or the relevant offences
are or include, an offence or offences against
a law of the State."
Sections 13 and 14 empower the relevant Minister of the
Commonwealth and of a State respectively by notice in writing
to the Authority to "refer a matter relating to a relavant
cyiminal activity to che Authority for investigation in sca
Far as the relevant offence is, or the relevant orfences are
or include, an offence or offences against a law" or the
Commonwealth, of a Territory or of a State. An investigation
y
proiee are
- ' -
a rr eens ne were rie
's
>
a
we me ee errr ern an ay ae
EY
that the Authority 15 conducting in the performance of its
special functions 15 called a "Special investigation"; see
5.4.
Section 25 of the Act contains provisions relating
to special investigations. It 15 a long section but it is
important that the relevant sub-sections be set out in full:-
"25.(1) For the purposes of a special
investigation the Authority may hold hearings.
(2) Ab' a hearing, the Authority may be
constituted by one or more members or acting
members.
{3) Subject to sub-section (2),
applies, so far as it is capable of appl
a hearing before the Authority as if t
weré a meeting of the Authority.
section 16
ication, at
he hearing
(4) At a hearing before the authority -
(a) a person giving evidence may be
represented by a legal practitioner; and
\b) 2f, by yveason of the existence of special
circumstances, the Authority consents to a
person who 15 nGt giving évidence being
represented by a legal practitioner - the
person may be 50 represented.
(5) A hearing before the Authority shall be
held in private and the Authority may waive
directions as to the persons who may be present
during the hearing or 4 part of the hearing.
(6) Nothing in a direction given by the
Authority under sub-section (5) prevents the
presence, when 2vidence is being taken at a hearing
before the Authority, of -
(a) a person representing the person giving
evidence; or
(by) a person representing, pursuant bo
sub-section (4), a person who, by reason
of a direction given by the Authority
under sub-section (5), is entitled to be
present.
(7) Where a hearing before the Authority is
being heid, a person (other than a member or an
acting member, counsel assisting the Authority in
relation to the matter that is the subject of the
hearing or a member of the starf of the Authority
approved by the Authority) shall not be present at
the hearing unless the person 15 entitled to be
present by virtue of a direction given by the
Authority under sub-secticn (5) or by virtue of
sub-section (5).
1a) A
purposes o
@aring before the Authority for the
pecial investigation -
(a) counsel assisting the Authority generaliy
or in rélation to the matter to which the
investigation relatas;
\b) any per
son authorized by the Authority to
appear bef
ore it at the hearing; or
{c) any legal practitioner representing a
person at the hearing pursuant to
sub-section (4),
may, so far as the Authority thinks appropriate,
axamine or cross-examine any witness on any matter
that the Authority considers relevant to the
special investigation.
(9) The Authority may direct that -
{a) any avidence given before it;
{b) the contents of any document, or &
descciption of any thing, produced ta che
Authority or seised pursuant to 4a warrant
issued under section 22;
(c) any information that might enabl
who has given evidence be
Authority to be identified; or
(d), Che fact that any person has given or may
be about to give evidence at a hearing,
Shall not be ocublisned, or shall not be published
except in such manner, and to such persons, as the
Authority specifies, and the Authority shall give
such a direction if the failure to do so0 might
prejudice the safety or reputation of a person or
prejudice the fair trial of a person who has been
or may be charged with an offence. nae
les
qr te corn ere ee cae
aay
Femanr
oe ro re ep ee
te eee
(12)A person who -
(a) present at a hearing in contravention
ub-section (7); or
(b) makes a publication in contravention of a
direction given under sub-section (9),
is guilty of an offence punishable, upon summary
conviction, by a fine not exceeding $2,000 or
imprisonment for a period not exceeding 12 months."
Section 46 contains provisions relating to meetings of the
Authority. Under sub-section 46(3), the Authority is
.
empowered to regulate the conduct of proceedings at its
meetings.
Section 19 of the Act 13 of importance. It 1s set
out in full:-
"19. The Authority has power to do all things
necessary to be done for or in connection with, or
reasonably incidental to, the performance of 1t5
general functions of cf its special functions, and
any specific powers conferred on the Authority by
this Act shall not be taken to limit by implication
the generality or this section."
The facts giving rise to the present applications
relate to a special investigation by the Authority arising
From references under 5.15 and 3.14 of the Act. The
references ar= in similar Form and by way of illustraticn,
the relevant parts of the reference under 5.15 are set out:-
oe
"COMMONWEALTH OF AUSTRALIA
NATIONAL CRIME AUTHORITY ACT 1994
NOTICE
TO: NATTONAL CRIME AUTHORITY
PURSUANT to Sub-section 135{(1) of the NATIONAL CRIME
AUTHORITY ACT 1381 I HEREBY REFER to the Natzonal
Crime Authority for anvestigation the following
matter relating to a relevant criminal activity
insofar as the relevant offence or the relevant
offences are or include an offence or offences
against the law of the Commonwealth or of a
Territory.
MATTER
The nature and scope of any illegal activity, che
identity of Che persons involved and the nature of
the1r involvement disclosed by the circumstances or
allegations described below or otherwise revealed
by investigations into those circumstances or
allegations.
PARTICULARS PURSUANT TO SUB-SECTION 13(2)
(a) The general natura of the circumstances or
allegations constituting the relevant criminal
activity 15 activity by a group or groups of
persons including infer alia persons
identified ta me by the Authority on the 11
March 1326 and associated persona and
companies suggesting offences involving:
(2) the aimoortation and azstribution or
marcotic substances;
(il) bribery or corruption of sificers of the
Commonwealth or officers of a Territocy;
(iii) widespread financial and business
activities including activities
associated with illegal gambling, tax
evasion, and violence;
(b) The offences referred to above are, or
include, offences against laws of the
Commonwealth or of a Territory;
f
|
;
[.
(c) The purpose of Che investigation 15:
(i) to ascertain whether any or what
gelaevant offences (including any offence
deemed to be a relevant offence pursuant
to s.4(2) of the National Crime
Authority Act 1984) have been or are
being committed against laws of the
Commonwealth or of a Territory;
(il) to identify the offender or offenders;
{2ii) to assembls evidence that would be
admissible in the oprcsecution of the
offenders;
(iv) to furnish that evidence to the
Attorney-General of the Commonwealth of
Australia or of the 3tatea of New South
Wales or to the relevant law enforcement
a cy for the oresecution of those
Go neces,"
Pac]
rt it
bs
In conformity with 3.25 of the Act, the Authority
commenced to hold a hearing to carry out the special
investigation. It was constituted by the Chairman. The
Authority gave directions under sub-section 25(9) prohibiting
and restricting the publication of material obtained at the
hearing. In addition, it gave directions under sub-section
25(5). A witness summonsed to give evidence at the hearing,
exercised the statutory right or privilege conferred by
sub-section 25(4) and chose a legal practitioner as his
representative at the hearing while giving avidence. By
reason of sub-secticons Z5¢(4t),(9) and (7), the legal
practitioner had a right to be present while the client was
giving evidence. The right to be present was not dependent
upon any direction given under sub-section 25(5). The same
legal practitioner appeared for the spouse of the first
witness when the spouse gave evidence.
ye pres nace ae =
eee Se picee er
—T"
It then became apparent that each of the applicants
an the three proceedings before the Court was to give
evidence at the hearing and that eéacn had instructed the same
legal practitioner who had represented the first witness to
represent each of Ehem while each gave evidence ab the
hearing. After hearing submissions from counsel assisting
the Authority and the legal practitioner appearing for each
of the three applicants, the Authority made a decision with
respect to each of the applicants that the legal practitioner
would not be permitted to be present at the hearing while any
of the three applicants was giving evidence. Each of the
applicants, pursuant ta the Administrative Decisions
(Judicial Review) Act 1977, seeks an order of review of that
decision.
At the very outset, 1¢ should be stated that no
suggestion of impropriety 15 made against the legal
Practitioner.
Section 25 of the Act, read in the context of the
mature of the special functions of the Authority, makes it
clear that the Authority is exercising investigatory
functions of an administrative nature of a kind wheres privacy
and confidentiality is of the utmost importance. Sub-section
25(5) is consistent with the policy of the Act. It is
equally clear that 5.25 confers rights upon a4 legal
practitioner, representing a person giving evidence at a
hearing before the Authority under 5.25, to be present at the
y
om ee wep meee meen
o
pr epee =e
hearing while the witness 15 giving evidence. That right is
stated in absolute terms. The section states expressly that
the legal practitioner is entitled to be present while the
client 15 giving evidence. The right to ask questions 15
conditional; see sub-section 25(8).
Nevertheless, there must be some limitation on the
right of the legal practitioner toa be present while the
client is giving 2vidence. Counsel for the applicants, quite
properly in my opinion, conceded some limitation. Thus, if
the legal practitioner so conducted himself so as to prevent
the Authority from crocseding with the hearing, he could be
excluded. This power to exclude persons for Ehat reason is
common to all meetings and to proceedings before tribunals
generally, including courts of law.
This power 1s illustrated by Ex parte Cory (1864) 3
$.C.9. 304 and more recently, Bell v. Norton, Supreme Court
of New South Wales, Lee J., 10 August 1363, unreported. Tn
the latter case, counsel had the statutory right to represent
his client at committal proceedings before a stipendiary
Magistrate. At the direction of the magistrate, the counsel
was removed forcibly from the court for misconduct. Relying
cl
upon the principle that the magistrate had a power bo control
the proceedings before him and the conduct of chose
Participating in those proceedings, Lee gd. held that the
magistrate had power to order the removal of the counsel from
}
t
Ie
;
ig
L
'
—re
- 10 -
the court and Eo refrain from hearing him further in the
proceedings if the magistrate considered that course
"necessary in the interests of justice."
That line of authority 1llustrates a limitation
which 15 imposed on what appears to be an absolute right. In
the present case, the Authority asserts the existence of
another limitation on the right of a legal practitioner to be
present at a hearing under 5.25 of the Act when the client of
that legal practitioner 15 giving evidence as a witness at
that hearing. The limitation claimed arises from the nature
of the hearing and th
iv]
bs)
eed For contidsntiraiitty of what
occurs at that hearing.
Before considering this contention, 1t is necessary
to make brief reference to the nature of a hearing under 5.25
of the Act. The nature of a special investigation has been
discussed. A member of the Authority has power to summons a
person to appear before the Authority at a hearing to give
evidence and to produce documents; see sections 28 and 29. A
failure, without reasonable excuse, to produce documents
constitutes a criminal offence; see sub-section 25(3). A
person who, without reasonable axcuse, fails to attend at a
hearing to which he has Seen summonsed or to take an oath or
make an affirmation, or fails to answer a question oe fails
to produce a document commits a@ criminal offence; see 5.30
and in particular sub-sections 30(1), (2) and (11). Under
sub-section 30(4), 16 15 a reasonable excuse for the purposes
of sub-section 30(2) for a natural person to refuse or fail
a.
- li -
to answer a question or to produce a document if the witness
Claims that the answer or document "might tend to incriminate
him." If that claim is made, the Authority is given power to
decide whether "in 165 opinion the claim 15 justified"; sae
sub-section 32(1). If the person is dissatisfied with the
decision, tha person may apply to the Federal Court for an
order of réview in respect of -that decision; see sub-section
32(2). Other sub-sections of 5.32 contain provisions
relating to any such application.
It is becoming increasingly common for Parliament
to create administrative bodies and to confer powers on those
bodies to conduct investigations. The nature of the powers
so conferred are discussed in Pyneboard Pty. Ltd. v. Trade
Practices Commission (1983) 152 C.L.R. 328. In that case,
the High Court held chat under 5.155 of the Teade Practices
Act 1974, a person required to give information or to produc
fi)
documents could not ¢
a
fuse £5 give that information or
produce those documents on the ground that to do so might
tend to expose him ta tne civil Liability of a penalty.
Under the National Crime Authority Act, a witness at a
hearing under 3.25 can, supjyect bo the provisions of 5.32,
refuse to answer questions and produce documents if he claims
that to do so "might ténd to incriminate him." Aspects of
5.32 are discussed in C v. National Crime Authority, judgment
aun which is given tcday. Subject to that qualification, it
would appear that a person summonsed to give evidence or to
produce documents ata hearing under 5.25 of the Act is
io
bd
'
required to answer any question or produce any document which
is relevant to the special investigation.
Sub-section 25(4) of the Act confers on a witness a
privilege or right in the nature of a facultative power to be
represented by a legal practitioner at a hearing under 5.25.
Where a witness exercises that privilege or right, the legal
representative has a statutory right to be oresent at the
hearing while the client is giving evidence; see sub-sections
25(4)(a), (6)¢(a) and (7). In addition, if by reason of
Tt
ee
Special circumstances, the Aubhority ronsents ta a person who
ii]
= u
eS i
in]
1s not giving eaviden ing cepresented by a legal
practitioner, that legal practitioner has a statutory right
to be present at the hearing while another person 15 giving
evidence; see sub-sections 25(4)(b), (6)(5) and (7). Those
statutory rights cannot be affacted by a direction under
sub-section 25(5). In form, the statutory right is stated to
be in the legal practitioner, but the same statutory right is
conferred on the person who has chosen or instructed the
legal practitioner. The power of the legal practitioner to
ask questions 15 conditional; see sub-section 25(9).
At the hearing of these applications, counsel for
the applicants sought ta rely upon the rommon law principle
va
that a verson appearing before a Tribunal has the right to ba
represented by an agent including a legal practitioner. He
"er
=
we ar eee ee rg
qs
ak
Dre rep nq ee te ce een
- 13-
relied upon authorities such as The Queen v. Assessment
Committee of Saint Mary Abbotts, Kensington £13913 1 0.8. 378
and The King v. Board of Appeal Ex parte Kay (1916) 22 C.L.R.
183. Im my opinion, it 15 not necessary to consider this
line of authority for the purpose of deciding these
applications since the statutory right conferred by 5.25 of
the Act is s50 clear.
In each application, the decision sought to be
reviewed is stated as follows:-
"... the decision of the respondent that the
applicant's claim, namely that he is entitled to be
represented by a Barrister & Solicitor of his
choice, 1s not justified."
That description of the decision 15 misleading. As appears
from the transcript of the proceedings befora the Tribunal,
the decision sought to be reviewed was the decision of the
Tribunal "not te allow (the legal oractitioner} to appear for
the further witnesses for whom he has indicated he wishes to
appear." Those further witnessez are the applicants to the
Ww
three applications for review of that decision. Accordingly,
Iwill treat each application as seeking an order of review
of a decision by the Authority to rafuse to permit the legal
practitioner of a witness to be present while the witness is
giving evidence at a hearing under 5.25 of the Act.
eee tear
an ere
epee —nee ee ee en
a i res
- 14 -
Counsel for the Authority contended that the
Authority has power to regulate the conduct of its
proceedings. They referred to sections 19, 25 and 46 of the
Act. They contended Ehat the Authority is entitled to
conduct 1ts special investigations in such a way as to avoid
the premature disclosure of the information at its disposal.
They referred to what was said in National Companies and
Securities Commission v. The News Corporation Ltd. (1384) 156
C.L.R. 236 per Gibbs C.d. at p.316 and per Mason, Wilsan and
Dawson JJ. at 9.323. It followed, 1b was contended, that
e
witnesses wera not, in effect, entitled to look over th
a
shoulder of the Authority while that hody was sxamining
another witness. The relevant provisions of the legislation
in that case are very different from the relevant provisions
of the prasent case.
Counsel veferred to a number of authorities
illustrating the power of a Tribunal, including a Court, to
vegulate the conduct of its proceedings and the power of a
Tribunal bts) conduct proceedings, in appropriate
cr
circumstances, in private. Those powers are not disputed bu
the extent cof the powers vested in the Author1ty ara to he
considered in the light of -he specific rights conferred on
witnesses and their legal cepresentatives by 5.25 of the
Act. As has been indicated earlier, that right 15 expressed
in absolute terms. This 1s nok a case wheres questions of
natural justice arise.
- 15 -
For present purposes, it 1s accepted that the
Authority must be able to conduct a hearing under s.25 of the
Act in secrecy and in confidence. Tf a person discloses
information obtained at a hearing contrary to directions made
under s.25(9), that person commits a criminal offence and is
liable to a penalty. In the present case, no allegation of
impropriety is made against the legal practitioner concerned.
It is not suggested that he is likely to act in breach of a
direction made under 5.25(9) of the Act and thus there is no
need to consider what powers the Authority may have in thos
ny
circumstances,
In essence, the existence of the sower claimed on
behalf of the Authority is based on sections 13, 25 and 46 of
the Act. In my opinion, the existence of tne power to
canduct 26s proceedings ata hearing under 5.55 as if the
hearing was a meeting of the Authority under 5.46 of the Act
is not sufficient to deny the exprass right conferred by 5.25
or the Act upon a legal representative appearing for a
witness at the hearing.
Section 19 of the Act centers general pewers upon
the Authority and provides that specific powers conferred
upon the Authority by the Act "Shall not be taken to limit by
implication the generality of this section." Section 25 does
not confer a specific power on the Authority to parmit a
legal practitioner to represent a witness while that witness
1S g1lving evidence. Section 25 itself confers the right on
the legal practitioner. It follows therefore that there is
'ancl oreiieen tied
meee ey
- 16-
powers
no basis for 5.19 to operate with respect to specific
conferred on the Authority.
Accordingly, the existence of the power sought by
the Authority must depend upon the power conferrad by 3.19 of
the Act, namely the "power to do all things necessary to be
done for or in connection with, or reasonably incidental to,
the performance of its ... special functions." Put another
way, 15 that a power sufficiently strong to override the
statutory right conferred upon the legal practitioner by 5.25
of the Act?
Counsel sought to rely upon a principle of law
applied in the United States of America with respect to
investigations, namely that the right to counsel of witnesses
subpoenaed to testify at investigations does not include the
right to be represented by counsel connected with or retained
by the person being investigated. Counsel raferred to a
number of authorities of the United States District Court and
a later décision of the United States Court of Appeals, Ninth
Circuit. The District Court decisions are United States v.
Smith (1349) 87 Fed. Supp. 293, Torras v. Stradley (1952) 108
us
Fed. Supp. 787 and United States v. Steel (1965) 238 Fed.
Supp. 575. Those cases illustrate a principle that an
apparent conflict between a statutory right of a witness to
be represented by counsel of choice at an investigation can
be affected by a rule of the investigating authority that a
counsel representing a witness cannot represent any later
Pn nine ae ee ee ere
i
.
fa
De
-17-
witness at the same investigation. The principle
explained in Steel at pp.577-8 as follows: -
"Assuming that the Administrative Procedure
Act does apply to investigations, nothing in Rule
8(c) of the Rules of Practice of the Commission and
nothing done here was any denial of counsel. The
Commission officers merely ruled that Mr. [Gubell
could not at the same time in the same
investigation represent both movant and Alaska.
The order for investigation had named Alaska as a
subject of the investigation; movant had been, but
was mot at the time, an officer of Alaska. Mr.
Lubell was then and for some time had been general
counsel t5 Alaska. Movant wat cree to select any
eounsel of her choice other chan Mr. Gubell.
Movant could not insist on Mr. Utbell when Rule
d(c) and the conclusion of the Commiss1on officers
reasonably required that he be ineligrbls (after
his choice to represent Alaska). True, the classic
statement is that 'the vight to counsel being
conceded, a defendant should be afforded 3 fair
Opportunity to secure counsel of his own choice'.
Powell v. Alabama, 287 U.S. 45, 53, 58 5.Ck. 5,
58, 77 L.Ed. 158 (1932). But this was said in a
criminal prosecution and in a constitutional
context. Even in such cases, there can be
reasonable limitations on the selection of counsel.
United States v. Dardi, 380 F.td 316, 385 (2a Cir.
1964), cert. denied 370 U.S. 845, 85 5.Ct. 60, 18
L.Ed.2d 50 (October 12, 1964); Smith v. United
States, 52 Ape.H.C. 5a, 288 F. 250 (1922).
In tax investigations it has been held to be
no violation of Section (a) of the Administrative
Procedure Act to require that a third party witness
select as counsel some one other than counsel for
the taxpayer. Soa ruled District Judge (now Crrcuit
Judge) Smith in United States v. Smith, 37 F.Supp.
293 (D. Conn. 13493). The same conclusion was
reached in Torras v. Stradley, 1038 F.Supp. 787
(N.D. Ga. 1952). But cf. packer v. Commissioner,
275 F.2d 141 (Sth Cic. 1360)."
is
y
eon
ad
reece ee ee ern nt ee ee
aye ee ee eee
t
%
os
is
ee a
oe
pre ee
- 18 -
In Securities and Exchange Commission v. Higashi
(1966) 359 P.2d 550, the United States Court of Appeals had
to consider the conflict between the statutory right to
counsel and the rule of the Commission that no counsel for a
witness "shall be permitted Eo be prasent during the
examination of any other witness called during the
proceeding." The validity of the rules was not in question.
The reason for the rule is clearly stated at p.552:-
"The vyeason for and purpose of the
Commission's sequestration rule are clear and there
can be no question as 49 1ts necessity and general
propriety. The Commission points out that
violations of Frederal securities laws are often
difficult ta datect and require axtensive
investigation; that 1t may be necessary ta
determine whether or not individuals are acting in
concert; that investigations frequently are sought
to be frustrated by non-cooperatiscn and even
Subornaticn of perjury; Chat the purpose or
sequestration could be defeated by an attorney
advising Witnesses as to the testimony which had
been given by others."
The issue was whether the Commissioner, in applying the rule,
had exceeded "permissible limits." At ».553 the Court said:-
"The right granted by the Administrative Procedures
Act must be construed to mean counsel of one's
choice. Backer v. Commissioner, 275 F.2a@ 1411 (5th
Cir. 1960). While this right may well be subject
to Commission authority within permissible limits
to disqualify counsel under its rule, cf. United
States v. Steel, 23@ F.Supp. 575 (S.D.N.¥.1965),
those limits must be held to have been exceeded
when the rule is invoked in such a case as this.
Here the impact of the rule is not limited to its
effect as sequestration upon the interests of those
under investigation. Here the act of sequestration
has a second and impermissible effect; it bears
directly and prejudicially upon the interests of
the witness himself. Since his interests are
common with those of the corporation for whose acts
he may be held responsible, to sequester
- i939 -
corporation counsel is to deprive the witness of
the services of the attorney most familiar with the
source of his vulnerability. This invocation of
the rule exceeds the bounds and purposes or
sequestration. It strikes not only at others who
would use the witness' right to counsel for their
own purposes; it strikes directly at the witness
himself.
lude that the Administrative Procedure
, 60 Zhat. 241, § U.S.C. § 1005{a)
rents the SEC from invoking its rule of
on in this case."
Act, § 5
(1964), 5
ste
sequestra
These authorities do not deal with the power of the
administrative body to mak= the rule under considsrabion and
Ido not Find these authorities helpful in determining the
issue before me. The authorities would be helpful in
considering the proper exercise of the power, if 16 existed.
It can be accepted that premature disclosure of information
May prevent the Authority exercising its functions
effectively but that by itself is not
cf]
ufficient to justify
he Act sufficient to
cr
n
the existence of a power under 3.19 of
overcome the right conferred by 5.25. Wide as is the form of
5.193, some Limitation must be placed upon the power conferred
by it.
In Anthony Uagoon Station Pty. Ded. wv. Maurics,
rl
tH
a
fu
Federal Court of Austra orted, a Full
ul
cq
c
bh
Ay
wr
w
[us]
nd
s
iq
att
al
ct
a
ia
Court had Eo consider the axte or the power conferred on
r
the Aboriginal Land Commissioner by 35.51 of the Aboriginal
ovided:-
Land Rights (Northern Territory) Act 1976 which pr
"Sl. The Commissioner may do all things
necessary or convenient to be done for or in
connexion with the performance of his functions."
seas yee me egy
bs
o
i}
By majority, Sweeney and Northrop dJdJ., Ryan J. dissenting,
the Court held that that section did not empower the
Commissioner to make an order authorising people to enter
upon land occupied by a leaseholder. In my reasons for
judgment in that case I said:-
"There are many authorities of the highest
order which insist that before an administrator has
power to interfere with the rights of a person,
that power must be given in express and clear
terms. This vrinciple is rafterred to in Noordhof
v. Bartlett, above. It has been stated in many
decisions of the High Court; see for examole
Commissioner of Taxation of sAustralia v. The
Australian and New SZeaiand Banking Group std.
(1979) 143 C.L.R. 199; Sorby v. The Commonwealth of
Australia (1983) 152 C.L.R. 281; Pyneboard Fty.
Ltd. v. Trade Practices Commission (1983) 152
C.L.R. 328; O'Reilivy v. Commissioner of the State
Bank of Victoria (1383) 53 C.L.R. 1 and Baker v.
Campbell (1383) 153 C.L.R. 5Z."
In my opinion, the power conferred by 5.19 of the
National Crime Authcrity Act is mot sufficient to svercome
the statutory right conferred on the legal practitioner, and
implicitly upon a witness, by 5.25 of that Act. It follows
that the Authority had no power to make the decisions sought
to be reviewed. In these circumstances, it is not necessary
to consider whether the Authority, 17 it had that power,
exercised proverly the discretion FEhat would have arise if
a
1t had the power claimed.
mero enn see
\
ee eet ewe
Ra a pen ae ete
- 21 -
Accordingly, orders will be made in each
application setting aside the decision sought to be reviewed
and a declaration made that in the absence of any allegation
of misconduct against him, the legal practitioner chosen by
the applicant has a right to be present at the hearing by the
Authority while the applicant 1s giving evidence. The
Authority should pay the costs of each applicant.
SE EERE,
'
'
To certizy "hat ths and the Ubuceey (20)
preceuzng wages sie a tmte copy of the
Reasoas for Indgment herein of the
Honomable Mr. Justice 4M Northrogy
RL Tene
Me rage ee nner "8 ape enee
ce
s
>
;
>
&&
@
a
cero
oe tc
Title of Actions
File Numbers
Dates of Hearing
Judgment Delivered
Counsel for Applicants
Solicitors for Applicant
Counsel for Respondent
Solicitor for Respondent
Signed . Shar ww F. wbduace
Date
November 19387
ATTACHMENT A
o
A, B, and Dv.
NATIONAL CRIME AUTHORITY
In
fu
q
o
rh
mh
a
a
a
ut
a
all
tt
Llinghaus &
Mr. S.P. Charles 0.C. with Mr.
N.d. Young
Australian Government Solicitor
ay
3 ae ee et
Qacpoc
——
ree senze