Businessworld Computers Pty Ltd v Australian Telecommunications Commission [1988] FCA 206
Federal Court of Australia
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JUDGMENT Mo, Zee. Tee
MbetedesPervencg
CATCHWORDS
Injunctions - interlocutory mandatory injunctions - when grant
appropriate - whether special principle applicable to the grant
of interlocutory mandatory relief - whether "high degree of
assurance" necessary.
Precedent - whether a Judge of the Federal Court of Australia is
bound to follow a decision of a single Justice of the High Court
of Australia exercising original jurisdiction.
Federal Jurisdiction - whether corporation "an officer of the
Commonwealth" within meaning of s. 39B of Judiciary Act 1903,
whether action against the Commonwealth a matter associated with
application under Administrative Decisions (Judicial Review) Act
1977 - s. 32 of the Federal Court of Australia Act
Constitution s. 75.
Administrative Decisions (Judicial Review) Act 1977 s. 15.
Telecommunications Act 1975 ss. 6 (3) (b), 21, 22, 101, 111.
Judiciary Act 1903 s. 39B.
Federal Court of Australia Act 1976 s. 32.
Trade Practices Act 1974 s. 80.
Crouch v Commissioner for Railways (Queensland) (1985) 159 CLR 22
referred to.
O'Neil v Wratten (1986) 65 ALR 451 referred to.
Pearce v Button (1986) 65 ALR 83 referred to.
Bradley v The Commonwealth of Australia (1973) 128 CLR 557
considered.
The State of Queensland v Australian Telecommunications
Commission (1985) 59 ALgr 562 considered.
Shepherd Homes Ltd. v Sandham [1971] Ch 340 considered.
American Cyanamid v Ethicon [1975] AC 396 referred to.
The Administrative and Clerical Officers Association v The
Commonwealth (1979) 53 ALIR 588 referred to.
€.H. Giles & Co. Ltd. v Morris [1972] 1 All ER 960 referred to.
Posner v scott-Lewis [1986] 3 All ER 513 referred to.
Tito v Waddell (No. 2) ({1977] Ch 106 referred to.
Films Rover International Ltd. v Cannon Film Sales Ltd. [1986]
3 All ER 772 followed.
North of England Junction pap tway Co. v Clarence Railway Co.
(1844) I Coil. 507 at 521-522; 3 ER 520 at 526-527 followed.
Australian National Airlines Commission v The Commonwealth of
Australia (1986) 66 ALR 545 referred to.
2.
Midland Milk v Victorian Dairy Industry Authority, Federal Court
24 December 1987 (unreported) referred to.
Fletcher Challenge Ltd. v Fletcher Challenge Pty. Ltd. [1981]
T NSWLR 196 followed.
Holiday Inns (Pacific) Inc. v Leisure Developments (Qld) Pty.
Ltd., Federal Court 7 October I987 (unreported) followed.
Bone v Commissioner of Stamp Duties [1972] 2 NSWLR 651 followed.
BUSINESSWORLD COMPUTERS PTY. LTD. v
AUSTRALIAN TELECOMMUNICATIONS COMMISSION
G850 of 1988.
CORAM: GUMMOW J.
PLACE: SYDNEY
DATE: 22 APRIL 1988.
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
No. 850 of 1988.
GENERAL DIVISION
weer
BETWEEN: BUSINESSWORLD COMPUTERS
PTY. LIMITED
Applicant
AND: AUSTRALIAN
TELECOMMUNICATIONS
COMMISSION
Respondent
CORAM: GUMMOW J.
PLACE: SYDNEY.
DATE: 22 APRIL 1988.
MINUTE OF ORDERS
THE COURT ORDERS THAT:
(1)
Upon the applicant by its Counsel giving to the
Court the usual undertaking as to damages and the
further undertakings set out in para. (3) hereof
ORDER THAT until the determination of these
proceedings or further Order the respondent be
restrained by itself, its servants and agents
from continuing the disconnection of those
telephone services that were immediately prior to
20 April 1988 provided by the respondent to the
applicant for the premises 76 Parramatta Road,
Annandale in the State of New South Wales (the
telephone services) and from withholding or
(2)
(3)
(4)
(5)
(6)
(7)
withdrawing the telephone services.
Order that the operation of the above Order be
suspended until 4.00 pm on 22 April 1988.
Note the applicant's undertakings to the Court
given by its Counsel that:
(a) the applicant will on or before 28 April
1988 pay into Court by bank cheque $15,000
such sum not to be paid out of Court without
further Order.
(b) the applicant will on or before 28 April
1988 pay to the respondent the sum of
$756.01 in respect of accounts dated 9
February 1988 and 11 March 1988 and the sum
of $2,097.13 in respect of the account
exhibit C in these proceedings.
(c) the applicant will pay to the respondent all
sums due and payable under any further
account issued by the respondent for current
services and charges during the pendency of
these proceedings.
Direct that the applicant file an amended
application on or before 29 April 1988.
Direct the respondent to file and serve any
further affidavits on which it seeks to rely on
or before 6 May 1988.
Direct the applicant to file any further
affidavits on which it seeks to rely on or before
13 May 1988.
Direct that the matter be set down for hearing on
3.
a final basis at 10.15 am on 18 May 1988.
(8) Direct that the matter stand over for further
directions at 9.30 am on Monday 9 May 1988.
Note: Settlement and entry of orders is dealt with by Order
36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY No. 850 of 1988.
eer eee
GENERAL DIVISION
BETWEEN: BUSINESSWORLD COMPUTERS
PTY. LIMITED
Applicant
AND: AUSTRALIAN
TELECOMMUNICATIONS
COMMISSION
Respondent
CORAM: GUMMOW J.
PLACE: SYDNEY.
DATE: 22 APRIL 1988.
EX TEMPORE REASONS FOR JUDGMENT
HIS HONOUR: [After making orders for interlocutory relief, and
accepting undertakings by the applicant, continued as follows. ]
These proceedings were commenced by application filed on
Wednesday, 20 April 1988. The respondent is a body corporate
constituted by the Telecommunications Act 1975, s. 21. The
immediate cause of the dispute that provoked these proceedings
was disconnection on that day of the services provided by the
respondent to the premises occupied by its customer, the
applicant, at 76 Parramatta Road, Annandale and used for the
conduct of its business. The applicant seeks restoration of
those services by interlocutory injunctive and like relief.
The relief is claimed on several bases.
2.
First, an order is sought under s. 15 of the
Administrative Decisions (Judicial Review) Act 1977 ("the ADUJR
Act") with the effect of staying proceedings under the decision~
which produced the disconnection to which I have referred. As
the matter stands at present, it is not possible precisely to
identify the particular decision, or the particular
decision-maker, although this may become clear in the amended
application which 'will be filed next week. However, the
applicant also seeks relief on two other bases.
Secondly, support is sought from the provisions of s.
39B of the Judiciary Act 1903, which invests this Court with
injunctive jurisdiction in certain proceedings against officers
of the Commonwealth. Section 39B reflects the terms of s. 75
(v) of the Constitution. In my view, it is plain (and no
contrary authority is suggested) that the respondent
corporation is not an "officer of the Commonwealth" within the
meaning of these provisions. No question arises as to whether
the Commissioners appointed under s. 22 of the
Telecommunications Act 1975 are officers of the Commonwealth.
The applicant also put the case on a third basis,
that, pursuant to s. 32 of the Federal Court of Australia Act
1976, there is an associated matter arising in federal
jurisdiction, being a matter which is associated with the
proceedings under the ADJR Act.
That associated matter is said to be a matter in which
the Commonwealth or a person being sued on behalf of the
3.
Commonwealth is a party within the meaning of s. 75 (iii) of
the Constitution. Mr. Stevens, who appeared for the
respondent, was prepared at this stage not to dispute that the
present proceedings against the respondent attracted that head
of jurisdiction, within the meaning of the well-known
authorities discussed by the High Court in Crouch v
Commissioner for Railways (Queensland) (1985) 159 CLR 22 at
40-42. I should also refer to O'Neil v Wratten (1986) 65 ALR
451 at 459-460, as supporting this conclusion. I note in doing
so that the circumstances of the present case, in my view, are
plainly distinguishable from the position that obtained under
the legislation considered in Pearce v Button (1986) 65 ALR 83.
I should deal also at this stage with submissions by
the respondent as to the inappropriate nature of interlocutory
relief of the type sought in this application. Although the
injunction contained in paragraph (1) of the Orders I have made
is expressed in prohibitory terms, it might well be regarded as
positive in substance. Counsel for the applicant in proposing
relief in the terms of paragraph (1) relied on what was done
both by Gibbs J. and the Full Court in Bradley v The
Commonwealth of Australia (1973) 128 CLR 557 at 559, 594. I
approach the respondent's submissions on the footing that the
injunctive relief sought was mandatory in. substance.
Counsel for the respondent relied upon what was: later
said by Gibbs CJ in refusing interlocutory relief in The State
of Queensland v Australian Telecommunications Commission (1985)
59 ALJR 562 at 563. In that case, the learned Chief Justice
relied upon English authority and in particular upon what he
described as a statement of principle by Megarry J. in Shepherd
Homes Ltd. v Sandham [1971] Ch 340 at 351. His Lordship there
said:
In a normal case the court must, inter alia,
feel a high degree of assurance that at the
trial it will appear that the injunction was
vightly granted; and this is a higher
standard than is required for a prohibitory
injunction.
It should be noted that the Shepherd Homes Ltd. case
predated American Cyanamid Co. v Ethicon Ltd. [1975] AC 396.
Further, Megarry J. also said (at 349) that it was not possible
to draw firm lines or impose any rigid classification, although
in most circumstances a mandatory injunction was likely to be
more drastic in its effect than a prohibitory injunction. The
facts in that case showed delay by a plaintiff who also could
nat show damage flowing to it from the alleged breach of the
negative covenant on which it sued.
In the present case, the applicant has moved
expeditiously and there is no real dispute that the
disconnection of telephonic services must seriously impede the
conduct of its business. In the State of Queensland case
before Gibbs CJ, the failure of the Australian
Telecommunications Commission to maintain the PABX systems
installed at the premises of the plaintiff was the result of
industrial action taken by the employees of the Commission.
The result of the bans had been to render the Commission unable
to provide the service to maintain the systems. Considerations
5.
of that sort traditionally, even on a final basis, have made
courts reluctant to administer mandatory injunctive relief that
is tantamount to specific performance. This is the point of
the comment by Mason J. in another comparable decision, The
Administrative and Clerical Officers Association v The
Commonwealth (1979) 53 ALJR 588 at 590, as to enforcement of
affirmative stipulations which do not lend themselves to
enforcement by equity in this fashion.
In contrast, the present case offers none of those
special features which reflect equity's reluctance to compel
the continuation of contractual or other associations requiring
personal trust and confidence between the parties to the
litigation or between the defendant and third parties,
particularly where the question of satisfactory performance is
one of taste, opinion and degree (C.H. Giles & Co. Ltd. v
Morris [1972] 1 All ER 960 at 969-970, per Megarry J; Posner v
Scott-Lewis [1986] 3 All ER 513). Nor is there any difficulty
in framing the terms of mandatory relief so that there is
sufficient definition of what will have to be done to comply
with the order: Tito v Waddell (No. 2) [1977] Ch 106 at 321
per Megarry J.
I should also note that in England the remarks of
Megarry J. in the Shepherd Homes Ltd. case recently have been
discussed and distinguished by Hoffmann J. in Films Rover
International Ltd. v Cannon Film Sales Ltd. [1986] 3 All ER 772
(noted [1988] CLI 34). His Lordship (at 780-781) said:
(I] think it is important in this area to
distinguish between fundamental principles
and what are sometimes described as
'guidelines', ie useful generalisations
about the way to deal with the normal run of
cases falling within a'particular category.
The principal dilemma about the grant of
interlocutory injunctions, whether
prohibitory or mandatory, is that there is
by definition a risk that the court may make
the 'wrong' decision, in the sense of
granting an injunction to a party who fails
to establish his right at the trial (or
would fail if there was a trial) or
alternatively, in failing to grant an
injunction to a party who succeeds (or would
succeed) at trial. A fundamental principle
is therefore that the court should take
whichever course appears to carry the lower
risk of injustice if it should turn out to
have been 'wrong' in the sense I have
described. The guidelines for the grant of
both kinds of interlocutory injunctions are
derived from this principle.
The passage quoted from Megarry J in
Shepherd Homes Ltd v Sandham [1971] Ch 340
at qualified as it was by the words 'in
a normal case', was plainly intended as a
guideline rather than an independent
principle. It is another way of saying
that the features which justify describing
an injunction as ''mandatory' will usually
also have the consequence of creating a
greater risk of injustice if it is granted
rather than withheld at the interlocutory
stage unless the court feels a 'high degree
of assurance' that the plaintiff would be
able to establish his right at a trial. I
have taken the liberty of reformulating the
proposition in this way in order to bring
out two points. The first is to show that
semantic arguments over whether the
injunction as formulated can properly be
classified as mandatory or prohibitory are
barren. The question of substance. is
whether the granting of the injunction would
carry that higher risk of injustice which is
normally associated with the grant of a
mandatory injunction. The second point is
that in cases in which there can be no
dispute about the use of the term
'mandatory' to describe the injunction, the
same question of substance will determine
whether the case is /normal' and therefore
within the guideline or 'exceptional' and
therefore requiring special treatment. If
it appears to the court that, exceptionally,
the case is one in which withholding a
mandatory interlocutory injunction would in
7.
fact carry a greater risk of injustice than
granting it even though the court does not
feel a 'high degree of assurance' about the
plaintiff's chances of establishing his
right, there cannot be any rational basis
for withholding the injunction.
In Shepherd Homes Ltd v Sandham Megarry J
spelle out some of the reasons why
mandatory injunctions generally carry a
higher risk of injustice if granted at the
interlocutory stage: they usually go
further than the preservation of the status
quo by requiring a party to take some new
positive step or undo what he has done in
the past; an order requiring a party to
take positive steps usually causes more
waste of time and money if it turns out to
have been wrongly granted than an order
which merely causes delay by restraining him
from doing something which it appears at the
trial he was entitled to do; a mandatory
order usually gives a party the whole of the
relief which he claims in the writ and makes
it unlikely that there will be a trial. One
could add other reasons, such as that
mandatory injunctions (whether interlocutory
or final) are often difficult to formulate
with sufficient precision to be enforceable.
In addition to all these practical
considerations, there is also what might be
loosely called a 'due process' question. An
order requiring someone to do something is
usually perceived as a more intrusive
exercise of the coercive power of the state
than an order requiring him temporarily to
refrain from action. The court is therefore
more reluctant to make such an order against
a party who has not had the protection of a
full hearing at trial.
Megarry J recognised, however, that none of
these was a necessary concomitant of a
mandatory injunction,
For myself, I would accept all that is there said as
applicable to the grant or mandatory injunctions in what I
might call the general equity jurisdiction. The present is
such a case. Statutory grants of particular injunctive powers,
such as s. 80 of the Trade Practices Act 1974, may require
special consideration.
The reasoning of Hoffman J. is consistent with what is
to be gleaned from consideration of the historical development
of this remedy. The development of the jurisdiction of courts
of equity to grant interlocutory injunctions, particularly
interlocutory mandatory injunctions, has been traced, with
reference to English and United States cases, in learned
articles by Judge Klein, "Mandatory Injunctions", (1898) 12
Harv. Law Rev. 95, and by Professor Leubsdorf, "The Standard
For Preliminary Injunctions", (1978) 91 Harv. Law Rev. 525.
These writers indicate two matters of importance for the
present case. First, it has long been the case that
interlocutory mandatory injunctions would be more likely to
issue where the defendant was compelled, not to embark upon a
fresh course of conduct, but, as here, to revert to a course of
conduct pursued before the occurrence of the acts or omissions
that provoked the litigation. Secondly, whilst there has been
a natural reluctance to decree burdensome relief without a full
hearing, prohibitory injunctions may have that tendency just as
much as mandatory relief, and there has never been general
acceptance of any precise verbal formula controlling the grant
of interlocutory mandatory relief. All that may usefully be
said was perhaps said long ago by Knight Bruce VC in North of
England Junction Railway Co. v Clarence Railway Co. (1844) 1
Coll. 507 at 521-522; 63 ER 520 at 526-527:
This branch of [the court's] jurisdiction
may be one not fit to be exercised without
particular caution, but certainly it is one
fit and necessary, under certain
circumstances, to be exercised. Under what
circumstances it should be exercised must be
9.
a matter for judicial discretion, in each
several case.
I am aware that the requirement, as a principle, of a
"high degree of assurance" (being a higher standard than
required for prohibitory injunctions), drawn from the decisions
of Megarry J. and Gibbs CJ, has attracted some support from
single judges of this Court (e.g. Australian National Airlines
Commission v The Commonwealth of Australia (1986) 66 ALR 545 at
552; Midland Milk v Victorian Dairy Industry Authority, 24
December 1987, unrep.). However, for reasons I have given, I
would eschew any such principle. I would prefer the course
taken by both Powell J. in Fletcher Challenge Ltd. v Fletcher
Challenge Pty. Ltd. [1981] 1 NSWLR 196 at 207-208 and Sheppard
J. in Holiday Inns (Pacific) Inc. v Leisure Developments (Qld)
;
Pty. Ltd. (7 October 1987, unrep. pp. 18-25), as exemplifying
the proper approach in administering the remedy of
interlocutory mandatory injunction.
Nevertheless, Mr. Stevens submitted that this Court,
both at first instance and presumably on appeal, was bound by
considered statements of principle in decisions of single
Justices of the High Court exercising its original
jurisdiction. Hence, he submitted, I was bound by the passage
I have set out from The State of Queensland v Australian
Telecommunications Commission (1985) 59 ALUR 562 at 563.
Whilst, of course, such decisions are deserving of the closest
and respectful consideration, I believe Mr. Stevens' submission
is incorrect. Stare decisis involves courts being bound by
10.
appellate decisions of courts standing above them and in the
same hierarchy. A decision of a single Justice of the High
Court is not such a decision. I refer to what was said,
albeit with reference to the position of an intermediate court
of appeal in relation to judgments of single Justices of the
High Court, in Bone v Commissioner of Stamp Duties [1972] 2
NSWLR 651 at 654 and 664.
I turn now to the facts. The evidence, in exhibits A
and B, shows the receipt by the applicant in January and
February respectively of this year of two accounts issued by
the respondent. They are bulky documents. The first account
which I will call the January account was in the sum of
$26,676.59. The February account was in the amount of
$29,355.03. The February account, the evidence indicates, has
been reduced by $5000 pursuant to discussions between the
applicant and the respondent. It is not clear from the
evidence given so far on behalf of the respondent what the
basis was for the reduction. In addition, some items of the
accounts have been paid by the respondent and there is now a
balance of some $22,000 claimed as due and owing. In
addition, there is the sum of $756.01 due in respect of
accounts dated 9 February and 11 March. There is also a sum
of $2097.13 due to be paid on 28 April 1988 under a later
current account. Payment of these additional accounts has
been provided for in the undertakings proffered by the
applicant. There remains, however, as I have said, the sum of
approximately $22,000 under the accounts exhibits A and B.
11.
The accounts were in respect of the period commencing
on 5 May 1987; they thus covered a lengthy period. Mr. Ryan,
the customer services manager of the respondent, who gave
affidavit and oral evidence, stated in oral evidence his
understanding of the reason for the delay in the preparation of
the accounts as having been the "manpower situation",
particularly with reference to the PABX systems. He said that
it was not an unusual period of delay "in the PABX area". The
evidence includes exhibit 2 which is a Telecom PABX rental
agreement dated 17 March 1987 for a fixed term. The agreement
is a document of some complexity. It provides, inter alia,
for a rental of $8342 per year to be paid in quarterly
instalments of $2085.60. It also appears that expenses and
charges were incurred in relation to the installation of this
equipment and that these are reflected in the accounts.
The respondent's By-laws 21, 22, 23 and 24 provide for
the payment of rental and the rendering of accounts for
charges, including interim accounts. The By-laws are made
under the powers conferred by s. 111 of the Telecommunications
Act 1975. Sub-section 111 (1) includes a power to make By-laws
providing for or with respect to the terms and conditions
governing the provision to or use by any person of
telecommunications services or facilities.
By-law 22 provides:
Accounts for calls and other charges due by
a subscriber shall be rendered half-yearly,
quarterly, bi-monthly or monthly as
determined by the Commission and shall be
payable within fourteen days.
12.
By-law 23 provides:
(1) If a subscriber fails to pay the
rental, service charges or other charges due
by him within fourteen days of the due date,
the Commission may disconnect the service or
cancel the service and remove all lines,
apparatus, equipment, instruments and
fittings belonging to the Commission,
without prejudice to the right of the
Commission to recover such rental, service
charges or other charges.
(2) Where a person is a subscriber to two
or more services and fails to pay the
rental, service charges or other charges in
respect of any one of those services, the
Commission may disconnect all of the
services or cancel all of the services and
remove all the lines, equipment, instruments
and fittings belonging to the Commission.
Mr. Stevens sought to characterise the accounts,
exhibits A and B, both as periodic accounts under these By-laws
and also as "interim accounts" within the meaning of By-law 24.
By-law 24 provides for the issue of interim accounts; if they
are not paid, the respondent is stated then to have the right
to cancel the service and remove lines, apparatus, equipment,
instruments and fittings belonging to it.
On the other hand, Mr. Coles, (who appears for the
applicant) points with some force to the difficulty of fitting
the January and February accounts within the concept of the
periodic account provisions. Further, my provisional view is
there is some difficulty in accommodating what has occurred
within the concept of an interim account within the meaning of
By-law 24. In any event, Mr. Coles further submits that even
if the accounts were authorised accounts within the sense of
the By-laws, there was nevertheless on 20 April and thereafter
13.
a bona fide dispute as to a substantial element of the amounts
claimed. He submits there remained such a dispute, despite
the reduction of $5000 to which I have referred.
I believe there is a serious question on the evidence
as it presently stands, particularly, having regard to the
evidence of Mr. Conyngham (for the applicant) and Mr. Ryan (for
the respondent) as:to at least $7000 of the moneys claimed by
the respondent. There is in particular an element of
uncertainty as to the component of the charges relating to
installation costs in respect of the PABX system. Plainly
enough, some substantial element of the amount in issue will
represent this cost.
There is also a complaint made by the applicant
arising out of an alleged request for cancellation of the PABX
service. The occasion for this was provided by the change in
the nature of the several businesses conducted on the present
and adjacent premises late in 1988. What happened was
outlined in the letter, annexure K, to Mr. Conyngham's
affidavit of 20 April 1988. Mr. Conyngham gave affidavit
evidence that in or about October 1987 he had a conversation
with an officer of the respondent at its Newtown offices. He
states that he said words to the effect that:
(T]he computer shop [that is to say, the
other business in question] is closed and we
[meaning the present applicant] no longer
want the PABX because it was to service us
and the computer shop. What do we do next?
We need to get on to a new system.
14.
Mr. Ryan in his evidence pointed to the undoubted
circumstance that there is nothing to show that this
conversation was followed up by any written communication.
However, as Mr. Coles points out, the By-laws specify merely
cancellation on seven days' notice; the requirement of
confirmation in writing is something that may subsequently be
required by the Commission.
I do not regard this latter matter as of itself
presenting an issue of any great substance for trial at the
final hearing as matters now stand, the point being that the
system still has been used without any further arrangements
being made for some months and it should only have been
expected on the part of the applicant that that use carried
with it an obligation to pay. Nevertheless, as I have said,
the other matters to which I have referred indicate that there
is a serious question to be tried, within the meaning of the
authorities, as to the quantum of the amount that is indeed due
for the period commencing 5 May 1987 and ending on 5 January
1988. However, that of itself is not sufficient to give the
applicant standing for injunctive relief. It is necessary for
the applicant to show that in all these circumstances what is
involved is some legal right attracting injunctive relief.
Mr. Coles seeks to do this by relying on a combination
of contractual and statutory rights flowing from the contract,
exhibit 2, to which I have referred and from the
Telecommunications Act 1975 and the By-laws. Sub-section 6 (1)
provides:
15.
The Commission shall perform its functions
in such a manner as will best meet the
social, industrial and commercial needs of
the Australian people for telecommunication
services and shall, so far as it is, in its
opinion, reasonably practicable to do so,
make its telecommunications services
available throughout Australia for all
people who reasonably require those
services.
Sub-para. 6 (3) (b) of the Act provides that nothing in that
section shall be taken as imposing on the Commission a duty
that is enforceable by proceedings in court.
In State of - Queensland Vv The Australian
Telecommunications Commission (1985) 59 ALJR 562 at 563, after
referring to sub-s. 6 (1) of the Telecommunications Act 1975,
Gibbs CJ said:
That subsection appears to support the view
that Telecom has an obligation to make its
services available whenever reasonably
practicable. Any other view would indeed be
surprising in the case of the grant of
monopoly to supply an essential public
service. Having considered Bradley v The
Commonwealth (1973) 128 CLR 557; John
Fairtax Ltd. v Australian Postal Commission
[1977] 2 NSwLR 124 and John Fairfax v
Australian Telecommunications Commission
{1977] 2 NSWLR 400, I am of the opinion that
there is a serious question to be tried as
to the existence and nature of an obligation
on the part of Telecom to maintain the PABX
service of a subscriber.
In my view, the present is, if anything, a somewhat
stronger case to be tried. What is involved here is not the
imposition of a duty to perform work of a maintenance character
as involved in the decisions referred to by Gibbs CJ. Rather,
it is a question of the rights of withdrawal of services in the
complex of contractual and statutory provisions provided by the
16.
statute, the By-laws and the Telecom rental agreement. I have
not overlooked the reliance placed by Mr. Stevens on sub-para.
6 (3) (b) of the Telecommunications Act 1975. I find it hard
to believe that this was overlooked by Gibbs CJ before he spoke
as he did in the above citation. Further, it is, in my view,
somewhat difficult to suggest, when considered in the light of
s. 111 and the By-laws, that what is involved here is an
impermissible attempt at imposition of a duty on the Commission
enforceable by proceedings in a court of the kind spoken of in
sub-para. 6 (3) (b).
I come then to the balance of convenience. The
applicant, as its name might suggest, uses the services in
question for the conduct of its business and requires in doing
so to have access to a plurality of lines, notwithstanding the
complaint apparently made that the present PABX system may be
too large for its needs. Withdrawal of the services would, I
infer from the materials before me, have a serious effect upon
the conduct of the applicant's business and would be likely to
injure the goodwill of that business. The difficulty of
quantifying damages to goodwill was emphasised by the
respondent, but, in truth, that difficulty strengthens the
argument that an injunction is the appropriate remedy in this
case. Further, though I do not place any particular reliance
on this, Mr. Coles points to s. 101 of the Telecommunications
Act 1975 as being a possible barrier to any claim against the
respondent for damages for wrongful conduct, and as an added
reason for injunctive relief.
17.
In my view, the balance of convenience also has to
take into account the conduct of the applicant in failing to
make further payments under the accounts in question when, as
to a sizeable proportion thereof, there must be an obligation
to pay. That, however, is in my view dealt with by the
granting of relief on terms as to payment into court of a
substantial sum, together with an undertaking to pay later
current accounts. -This has been provided for in the orders
that I have already made.
The present case is appropriate for mandatory
interlocutory relief. The grant thereof will not, in any
practical sense, decide the case on a final basis because the
consequences can be undone if final relief is refused; if the
applicant fails at the trial, disconnection will be a simple
and inevitable step. In the meantime, the position of the
respondent is secured by undertakings, on the part of the
applicant, inter alia, to pay promptly into court a substantial
proportion of the sum claimed by the respondent. On the other
hand, the denial of mandatory relief is likely to mark severe
injustice to the applicant by damage to its business and
goodwill, and damage to goodwill is not readily reducible to
monetary compensation. Nor, as I have already said, is this a
case where there is any significant element of personal trust
or confidence between the parties upon which the effective
continuance of their relationship depends, or where there is"
difficulty in framing or observing the terms of an injunction.
It is for these reasons that earlier this morning I
18.
gave the interlocutory relief to which I have referred. The
Orders of the Court giving that relief are as follows:
(1)
(2)
(3)
Upon the applicant by its Counsel giving to the
Court the usual undertaking as to damages and the
further undertakings set out in para. (3) hereof
ORDER THAT until the determination of these
proceedings or further Order the respondent be
restrained by itself, its servants and agents
from continuing the disconnection of those
telephone services that were immediately prior to
20 April 1988 provided by the respondent to the
applicant for the premises 76 Parramatta Road,
Annandale in the State of New South Wales (the
telephone services) and from withholding or
withdrawing the telephone services.
Order that the operation of the above Order be
suspended until 4.00 pm on 22 April 1988.
Note the applicant's undertakings to the Court
given by its Counsel that:
(a) the applicant will on or before 28 April
1988 pay into Court by bank cheque $15,000
such sum not to be paid out of Court without
further Order.
(b) the applicant will on or before 28 April
1988 pay to the respondent the sum of
$756.01 in respect of accounts dated 9
February 1988 and 11 March 1988 and the sum
of $2,097.13 in respect of the account
exhibit C in these proceedings.
(4)
(5)
(6)
(7)
(8)
19.
(c) the applicant will pay to the respondent all
sums due and payable under any further
account issued by the respondent for current
services and charges during the pendency of
these proceedings.
Direct that the applicant file an amended
application on or before 29 April 1988.
Direct the respondent to file and serve any
further affidavits on which it seeks to rely on
or before 6 May 1988.
Direct the applicant. to file any further
affidavits on which it seeks to rely on or before
13 May 1988. .
Direct that the matter be set down for hearing on
a final basis at 10.15 am on 18 May 1988.
Direct that the matter stand over for further
directions at 9.30 am on Monday 9 May 1988.
I certify that this and the eighteen (18)
preceding pages are a true copy of the
Reasons for Judgment of his Honour Mr.
Justice Gummow.
Associate: Math hlenL .
Date: 22 April 1988.
Counsel for the Applicant: Mr. B. Coles instructed by
Messrs. Vindin Littlejohn.
Counsel for the Respondent: Mr. C.J. Stevens instructed
by the Australian Government
Solicitor.
20.
Dates of Hearing: 20, 21 and 22 April 1988.
Date of Judgment: 22 April 1988.