New South Wales Bar Association & Ors v. Forbes MacFie Hansen Pty Ltd & Ors [1988] FCA 243
Federal Court of Australia
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CATCHWORDS
TRADE PRACTICES ACT - application for injunctive relief pursuant to s 80
- whether the Trade Practices Act binds the Crown in right of the State
- whether immunity of State Crown extends to others with whom the Crown
contracts or enters into an arrangement or understanding - interests of
the State Crown adversely affected by the granting of an injunction -
meaning of Government business - whether State Minister or others
dealing with them can be guilty of aiding and abetting the commission of
an offence under the Trade Practices Act.
Trade Practices Act 1974: sections 2A, 52, 80
New South Wales Bar Association First Applicant
Law Society of New South Wales Second Applicant
Michael Aroney an nald Me Sheldon
on behalf of
The Australian Association of Surgeons Third Applicant
-v-
Forbes Macfie Hansen Pty Limited First Respondent
Monohan Daysen Adams tic Pty Limited
a (*) raiia Limit
trading as Second Respodent
The Hon. Patrick Darcy Hills Third Respondent
The Hon. mneth George Booth Fourth Respondent
G 219 of 1987
Einfeld J. —
Sydney / ts ANS
23 May 1988 a
«we sot
us ar '
IN THE FEDERAL COURT OF AUSTRALIA
GENERAL DIVISION
NEW SOUTH WALES DISTRICT REGISTRY
BETWEEN:
AND:
CORAM: Einfeld J.
DATE: 23 May 1988
PLACE: Sydney
~
No. G 219 of 1987
NEW SOUTH WALES BAR ASSOCIATION
First Applicant
LAW SOCIETY OF NEW SOUTH WALES
Second Applicant
MICHAEL ARONEY and
DONALD MERVYN SHELDON
on behalf of
THE AUSTRALIAN ASSOCIATION
OF SURGEONS =
Third Applicant
FORBES MACFIE HANSEN PTY LIMITED
First Respondent
MONOHAN DAYMAN ADAMS (NSW)
PTY. LIMITED and
MOJO AUSTRALIA PTY LIMITED
trading as "MOJO MDA"
Second Respondent
THE HONOURABLE
PATRICK DARCY HILLS
Third Respondent
THE HONOURABLE
KENNETH GEORGE BOOTH
Se Fourth
Fourth Respondent
MINUTE OF ORDERS
1. The application is dismissed.
2. Costs are to be paid by the applicants, including costs of the
second respondent up to their departure from the suit.
E
of the Federal Court Rules.
Settlement and entry of these orders is deait with in Order 36
IN THE FEDERAL COURT OF AUSTRALIA
GENERAL DIVISION No. G 219 of 1987
— ee ee ee
NEW SOUTH WALES DISTRICT REGISTRY
BETWEEN: NEW SOUTH WALES BAR ASSOCIATION
First Applicant
LAW SOCIETY OF NEW SOUTH WALES
Second Applicant
MICHAEL ARONEY and
DONALD MERVYN SHELDON
on behalf of
THE AUSTRALIAN ASSOCIATION
OF SURGEONS
Third Applicant
E
FORBES MACFIE HANSEN PTY LIMITED
First Respondent
MONOHAN DAYMAN ADAMS (NSW)
PTY. LIMITED and
MOJO AUSTRALIA PTY LIMITED
trading as "MOJO MDA*
Second Respondent
THE HONOURABLE
PATRICK DARCY HILLS
Third Respondent
THE HONOURABLE
KENNETH GEORGE BOOTH
Fourth Respondent
CORAM: Einfeld J.
DATE: 23 May 1988
PLACE: Sydney
REASONS FOR JUDGMENT
Application was made under section 52 of the Trade Practices Act 1974
(the Act) on the 22 May 1987 by the New South Wales Bar Association, the
Law Society of New South Wales and Doctors Michael Aroney and Donald
Mervyn Sheldon on behalf of the Australian Association of Surgeons (the
applicants), seeking injunctive relief pursuant to section 80 of the
Act. Restraint was sought on the New South Wales Government from
continuing a series of advertisements in various elements of the mass
media which began on 7 April 1987 and were scheduled to continue to 27
May 1987. In summary, the aim of the advertisements was to introduce,
explain and promote the New South Wales Government's new Transcover and
Workcover legislation.
Forbes Macfie Hansen Pty Limited (the first respondent) and MOJO MDA (a
business trading name of Monahan Dayman Adams (NSW) Pty Limited and MOJO
Australia) (the second respondent) were alleged to be the advertising
agents of the New South Wales Government responsible for preparing and
Placing the advertisements in the media. It emerged that the second
respondent had nothing to do with the relevant advertisements and
subject to costs it was by consent effectively dismissed from the suit.
The third and fourth respondents were at the relevant time respectively
the Minister for Industrial Relations and Employment and the Treasurer
in the New South Wales Government (the Ministers).
In view of the imminence of the remaining advertisements, the matter
was dealt with as one of urgency. As it eventuated, however, the action
was really a means of highlighting, one suspects more politically or at
least forensically than legally, the applicants' objections to the
substantial changes made by the legislation in the compensation of
persons injured in motor vehicle and work place accidents. This is
because by the time the litigation was commenced, almost all of the
allegedly misleading or deceptive advertisements had already appeared.
In addition, as was obviously the case, none of the applicants claimed
to be directly adversely affected by any loss or reduction of rights
provided by the legislation for the victims of accidents. Their
interest was either narrow and selfish, or as guardians and advocates of
the public interest, or both. There was no evidence that any member,
group of members of the public, trade union or other mass membership
body had sought or sanctioned the proceedings. If an injunction might
otherwise be available, notwithstanding the colourfully expressed views
of Deane J, as a member of a Full Court of this Court, in Phelps v
Western Mining Corporation Ltd (1977-8) 33 FIR 327, serious discre-
tionary questions may arise in relation to the appropriateness of
intervention by the Court in circumstances such as these - and as late
in the events as here - where private rights were being litigated by
self interested narrow membership public bodies not per se entitled to
or the beneficiaries of the rights.
As the overall proceedings were eventually disposed of on the giving of
mutual undertakings by the parties (which had the effect that the
remaining advertising was not to appear), only one substantive matter
now requires decision. There was no dispute that the first respondent
was the advertising agent who devised and placed the advertisements,
that the Ministers were members of the Government who wanted the
advertisements, and that the Ministers authorised the relevant
advertisements.
On 25 May 1987 the Solicitor General of New South Wales who appeared on
behalf of the Ministers, and the first respondent, filed notices of
motion seeking that the proceedings before the court be sunmarily
dismissed pursuant to Order 20 of the Federal Court Rules. The
Solicitor General put the following arguments:
(a) The Act does not apply to the New South Wales State Crown.
(b) The Ministers were representatives of the New South Wales State
Crown.
(c) There is no jurisdiction under the Act to grant injunctive or
any other relief that would effectively censor or restrict the
activities of the New South Wales State Crown.
STATUTORY POSITION
The issues raised by the Ministers arise because the Act expressly
provides that the Commonwealth is bound by the Act but is silent as to
the position regarding the States. The relevant provision concerning
the Commonwealth is section 2A of the Act:
"2A. (1) Subject to this section, this Act (other
than Part X) binds the Crown in the right of
the Commonwealth in so far as the Crown in
right of the Commonwealth carries on a
business, either directly or by an authority
of the Commonwealth.
(2) Subject to the succeeding provisions of this
section, this Act applies as if-
(a) the Canmonwealth, in so far as it
carries on a business otherwise than
by an authority of the Commonwealth;
and
(b) each authority of the Commonwealth
(whether or not acting as an agent
of the Crown in right of the
Cammonwealth) in so far as it
carries on a business,
were a corporation.
(3) Nothing in this Act renders the Crown in
right of the Commonwealth liable to be
prosecuted for an offence.
(4) Part IV does not apply in relation to the
business carried on by the Canmonwealth in
developing, and disposing of interests in,
land in the Australian Capital Territory."
a
The question as to whether, in the absence of clear statutory provision,
the State Crown is bound by the statute was thus stated by Gibbs ACJ (as
he then was) in Bradken Consolidated Ltd v Broken Hill Proprietary Co
Ltd. (1978-79) 145 CLR 107 at 116 :
"It is an established rule of construction that no statute
binds the Crown unless the Crown is expressly named therein
or unless there is a necessary implication that it was
intended to be bound; there will be such a necessary
implication if it is manifest from the very tems of the
statute that it was the intention of the legislature that
the Crown should be bound: Province of Bombay v Municipal
Corporation of Bomba (1947) AC 58 at 61. The Toads
Practices Act, by s.2A, expressly states that (subject to
that section) it binds the Crown in right of the
Commomvealth in so far as the Crown in right of the
Commonwealth carries on a business, either directly or by an
authority of the Commonwealth. The Act is however silent on
the question whether it is intemied to bind the Crown in
right of a State. The question thus arises whether the rule
to which I have referred means that a statute of the
Commonwealth will not be construed as binding the Crow in
right of a State unless it appears by express words or
necessary implication that it wes intended to do so. In
other words, does the rule apply to the Crown in all its
capacities, or only to the Crown in right of the commmity
whose legislation is under consideration? When construing a
Commonwealth statute, does "the Crown", for the purpose of
this rule, mean only the Crown in right of the Commonwealth
or does it include the Crowm in right of a State?"
In his judgment, Gibbs ACJ examined a number of authorities that have
considered the problem and concluded that the Act does not bind the
Crown in right of a State.
Justice Stephen at 129 said that since the Act is silent as to whether
it binds the Crown in right of the States or any necessary implication
to that effect, it should be taken as not binding the Commissioner of
Railways who was the relevant Crown representative in that case.
It is thus clear that the New South Wales State Crown is not bound by
the Act.
ISSUES
As argued by the parties, the substantive issues raised by the notices
of motion are therefore:
1. Were the Ministers instrumentalities, agents, representatives or
authorities of the Crown in right of New South Wales?
2. If so, does the immunity enjoyed by the Crown in right of the
State extend to its agents?
3. Can injunctive relief by way of section 80 of the Act be given
against the first respondent without destroying the immunity of
the State?
There can be no doubt, and it was not seriously argued to the contrary,
that the Ministers were representatives of the State Crown. That this
must be so has emerged froma long line of cases. For instance, in
Bradken (above) it was held that a Commissioner of the Queensland
Railways was a representative of the Crown (see also Crouch v
Commissioner For Railways (1985) 62 ALR 1). In Sharkey & Co Pty Ltd v
Fisher (1980) 50 FIR 130, it was held that the Metropolitan Water
Sewerage and Drainage Board was an emanation of the Crown. By way of
contrast, State Superannuation Board v Trade Practices Commission
(1982) 60 FIR 165 established that the Board, a Victorian statutory
corporation, was so separate and independent from Government as not to
be entitled to the immunity.
SUBMISSIONS OF THE RESPONDENTS
It was submitted that the immunity enjoyed by the State Crown extended
to the first respondent and that injunctive relief should not be granted
on the basis that this would prejudice the Crown who had acted through
its agent. Reliance was again placed on Bradken (above) which also held
that the State immunity extends to the contractual arrangements made by
the State Crown with others. Mason and Jacobs JJ said at 137-138 in
Bradken (above):
".,..in accordance with such authorities as Wirral Estates
Ltd v Shaw [1932] 2 KB 247 and In re Telephone Apparatus
Manufacturers' Application (1963) 1 463, the absence of
an intention to e@ Crown in right of Queensland will
not only exonerate it from the direct application of the
statutory provisions but will also exonerate from the
application of those provisions the contracts arrangements
or understandings made by that Crown and the other parties
thereto as well."
The decisions in Roberts v Ahern (1903-4) 1 CLR 406, Broken Hill Smelter
v Collector of sts (1918) 25 CLR 61 and In Re Telephone Apparatus
Manufacturers' Application (above) all held similarly. Consequently, it
was submitted, the immunity of the State Crown can be availed by others
who are not the Crown if the impact on them of an order under the Act
will prejudice the State Crown.
Kitto J defined the relevant 'prejudice' in Wynyard Investments v
Commissioner of Railways (1955) 93 CLR 376 at 393 as follows:
"Ordinarily, therefore, to hold that a given statutory
provision binds the Crow is to hold that it operates to
destroy or curtail or impair some interest or purpose .....
of the Sovereign as so considered. Where the immmity is
claimed by a subject of the Crown, whether an individual or
a corporation, the question to be decided, whatever may be
the language in which for convenience it may be expressed,
cannot really be whether the subject is within a class of
departments, organizations amd persons generically (and
loosely) described as the Crown. It must always be whether
the operation of the provision upon the subject would mean
some impainnent of the existing legal situation of the
Sovereign. This I take to be conclusively shown by the
speeches, both of the majority andi of the minority,
delivered in the House of Lords, and the judgments delivered
in the Court of Appeal, in the case of Bank voor Handel en
Scheepvaart NV. v Administrator of Himgarian Property
1954) AC 584.
The Solicitor General therefore put that the interest at stake is the
interest of the Crown acting free of the Act.
In Bradken (above) Gibbs ACJ said at 123-4:
"It of course follows that the applicants cannot obtain the
relief which they seek against the Commissioner, but can
they obtain the relief sought against the respondent
campanies? I have already pointed out that such relief, if
granted, would invalidate transactions to which the
Commissioner is a party. The first two claims are for
injunctions to restrain the respndent companies concerned
from giving effect to the provisions of contracts,
arrangements or understandings to which the Commissioner was
party. An injunction restraining one of the parties toa
contract from completing it affects not only the party
against whom it is made; it equally affects the other party
to the contract. The third and fourth claims are for
injunctions restraining certain of the respondent companies
from engaging in the practice of exclusive dealing, which,
according to the points of claim, consists in providing, or
agreeing to provide, finance and/or financial assistance to
the Commissioner on certain conditions. Those injunctions
if granted, will affect the Commissioner as mich as the
respondent companies. In other words, if the remedies
sought are granted against the respondent companies the
Commissioner will be prejudiced by the operation of the
Trade Practices Act just as much as if its provisions had
been directly enforced against him.
In Clark v Downes (1931) 145 L.T. 20 at 22 Romer L.J. said:
'The Acts not binding the Crown, it is the duty of
the Courts so to construe the Acts that the Crown
and its property are in no way prejudicially
affected by the Acts.'"
In Sharkey (above) Sheppard J at 150 stated, in interpreting and
explaining Bradken :
"What I consider them to have meant is that no relief will
be granted against a party to a contract, arrangement or
understanding, to which the Crown or a body representing it
ig also a party, if such relief would affect the efficacy or
operation of such agreement, arrangement or understanding.
If it were to do so, the Crown would be prejudiced because
one of its acts would thereby be affected. Whilst all
persons have freedom to enter into such contracts,
arrangements or understandings (unless they be prohibited by
law) as they may choose to do, once any such contract,
arrangement or understanding is entered into, the freedom of
such persons is affected. They are bound, legally or
morally, to act within the terms of the contract,
arrangement or understanding which they have made. To that
extent the very freedom which they had to contract, to make
ts or to enter into understandings has led to a
situation where their freedom to act becomes restricted.
The restriction imposed by the contract, arrangement or
understanding into which they have entered affects that
freedom."
It follows from these expressions that an injunction cannot go to any
person or corporation contracting with a statutorily immune Crown if the
interests of the Crown would be adversely affected by the injunction.
The question here is whether preventing advertising of Government
legislation is such an adversity. As this matter was argued as if it
were not a twofold question, I must assume for the purposes of its
resolution, that the advertising is false or misleading, although I am
certainly not to be taken as making such a finding at this stage of the
case.
-10-
The Solicitor General submitted that the interests of the State Crown
extended to the Crown's being the judge of its own freedom of speech in
a matter of legitimate public debate such as the new Transcover and
Workcover legislation. Of course sections 52 and S53 are designed to
prevent the making of false and misleading statements. If freedom of
speech is taken, as it should not be, as meaning the right to say
anything anywhere at any time, and if the State Crown is rightly
entitled to claim it (and this is no time to rule on these questions),
its presence as part of Australian law is not to be found in the Act or
in immunity therefrom. In the absence of a constitutional or statutory
entrenchment of the freedom, or some appropriate provision of an
international covenant ratified by Australia extending to the States, to
which domestic application should be given, the Solicitor General is
presumably calling in aid and quoting the common law. If so, immunity
from these provisions of the Act does not establish or provide the thus,
albeit wrongly, defined freedom of speech of the New South Wales
State Crown, because as I understand the position, the common law
itself and other New South Wales legislation place their own
restrictions on both the State's and the first respondent's "freedom of
speech" to make false or misleading statements.
This is not the place to examine and debate these interesting questions,
because it is not the right to freedom of speech in a free society that
determines the permissibility of a person or entity, or even the State,
to mislead or tell untruths to the public. Nor do any of the
authorities referred to by the Solicitor General say that any
restriction on a person's capacity to advertise deceptions is a
curtailment of freedom of speech. I repeat that I am of course making
no finding that anything in the advertisements is misleading or
untrue. I merely assume it, as I must, to test and rule on the
proposition being advanced. In my view, the clarifying dictum of
Sheppard J in Sharkey demonstrates, with his Honour's characteristic
explanatory skill, that it is not the human rights of Cabinet Ministers
or Governments that are under discussion in Bradken but the survival or
immunity of private individuals' contractual or other arrangements or
understandings - in this case of a commercial character - with State
Governments. It is these persons or entities who are the recipients or
beneficiaries of the Crown's immunity from the Act's restrictions or
impediments.
In my view, the Bradken extension of immunity should not be further
extended into social and humanitarian spheres. It is confined to
commercial, contractual and similar activities of the immune Government
where restriction of action would directly impinge on or derogate from
the freedom of the State from the Act's reach.
SUBMISSIONS OF APPLICANTS
The applicants did not dispute that the High Court decision in Bradken
is binding upon me and therefore that the New South Wales Crown is not
bound by the Act. However, they sought to distinguish it by submitting
that the Crown in the right of the State of New South Wales is not a
party to these proceedings. I have already ruled against one aspect of
this submission.
The applicants further argued that the extended Bradken rule only
applies to cases where the contract with Government involves the
carrying on of government business. Consequently the real question to
consider, the applicants said, is whether the granting of the relief
sought by the applicant could prejudice, destroy, curtail or impair
business activity which is part and parcel of a Crown function. In the
context of this case there was a need, the applicants submitted, for the
relevant advertising and contractual arrangements to have been
authorised by the Government.
The applicants submitted that the publishing of misleading advertising
is clearly not an authorised function of the Government. In South
Australia v The Commonwealth (1942) 65 CLR 373 at 423 Latham CJ stated
that there are some functions of Government which have always been
regarded as such whereas others only become so if Parliament authorises
them. Obviously what must be examined is the nature of the business and
whether it can be classified as being within the ambit of Government
activity or is the private business of the relevant government
representatives. Attention was drawn to McDonald v Hammence (1984) 53
ALR 136 at 141 where Neaves J, with the benefit of many years of pre-
judicial senior Government service stated:
"There are many activities in the ordinary course of
administering the affairs of government that may be carried
on independently of any statutory provision expressly or
impliedly authorizing the particular activity. One may put
to one side for present purposes the need for parliamentary
appropriation of funds to meet any necessary expenditure. I
do not doubt that the activities of the Canberra Tourist
Bureau in publishing periodically a list of accomodation
facilities in Canberra and in making the necessary decisions
as to what information such publications should contain are
activities which do not require express or implied statutory
authority. In this regard it is sufficient to refer to the
decision of Fox J in Hawker Pacific Ltd v Freeland
(1983) 52 ALR 185, referring to New So les v
(1934) 52 CIR 455 at 474-5, 496 508.
Clearly it cannot be maintained that the authorising of these
advertisements and the hiring of the first respondent as advertising
agent was private business of the Ministers. There is simply no
evidence of any private interests of theirs involved or addressed in the
advertising of the Transcover and Workcover legislation. In my opinion,
the Ministers were obviously acting in an official capacity and on
behalf of the State Government when they authorised the first respondent
to publish the advertisements.
The applicants further contended that the Ministers or any of the
officers of their departments did not have the legislative authority to
order the placing of the advertisements in the press and on television.
This view held that to say that the relevant contract was authorised by
a Minister is not sufficient. In New South Wales v Bardolph (1934-35)
52 CLR 455, Starke J at 502 stated that the fact that a Minister has
entered into a contract or directed a subordinate official to do so is
not sufficient to establish the necessary authority:
" The Crown is dependent upon the supply granted to it by
Parliament, and there is an express or implied term in its
contracts that payment shall be made out of moneys so
provided. But the existence of the contract is not
conditional upon Parliamentary authority, or upon provision
of funds by Parliament for the perfommance of the contract.
The view that it is #0 conditional is entirely contrary to
English practice, and to a long line of cases, collected in
Robertson, Civil and nst_ the Crown
+ Pp. . (See v Doutre (1884) 9 App Cas. 745;
Rayner _v The mg (1930) N.Z.L.R.441). Moreover, it ig in
opposition statement of the Judicial Committee in R v
Fisher (1903) A.C. at p.167. Constitutional practice, as in
the Carmercial Cable Case (1916) 2 A.C. 610, or statutory
provisions, as in Churchwood's Case (1865) L.R. 1Q.B. 173
or Mackay's Case (1922) 1 A.C. 457, may prescribe conditions
to making of contracts with the Crown, and so
far as these conditions exist they must be observed. But
otherwise contracts made on behalf of the Crown by its
officers or servants in the established course of their
authority and duty are Crown contracts, and as such bind the
Crown. The nature and extent of the authority may be
defined by constitutional practice or express instructions ,
or inferred from the nature of the office or the duties
entrusted to the particular officer or servant. It is not
every contract made or purported to have been made by an
officer or servant of the Crown on its behalf that will bind
the Crown, but only such as are within the authority
delegated to that officer or servant. The authority is a
matter which ultimately falls for determination in the
Courts of law (see Musgrave v Pulido (1879) 5 App Cas 102).
The fact that a Premier, or a responsible Minister of the
Crown, has entered into a contract on the part of the Crown,
or has directed a subordinate official so to do by no means
establishes the necessary authority: such a role, while it
might not destroy Parliamentary control over the amount and
manner of expenditure of public money, would necessarily
weaken that control. In each case, the character of the
transaction, and also constitutional practice, must be
considered."
On the other hand, Dixon J at 509 in the same case said that statutory
authority is not needed to make a valid contract which binds the Crow.
On the question of authority to enter contracts, reference was made to
sections 12 (1) and 4 (1) of the Public Finance and Audit Act 1983 (NSW)
as to who can enter contracts and incur expenditure on behalf of the
executive. Section 4 (1) of the Public Service Act 1979 (NSW) was also
relied on to establish the purported authority of Government departments
to enter contracts. The applicants further submitted that when a
Government department is given access to certain moneys, they must be
used in the manner in which the department is authorised to spend the
money. Consequently, it was maintained that the spending of Government
money to misinform the public is not within the authority of a
Government department.
There is no direct evidence to establish the basis for any of these
arguments. This application seeks an injuction to restrain the Ministers
from permitting particular advertisements to be aired in public, not
departments from undertaking or authorising expenditure or entering
contracts on behalf of the Government. Yet there is for example no
evidence as to if, how, by whom or from what fund the first respondent
was paid for its work or the advertisements were otherwise paid for.
However, I am satisfied that the Ministers were authorised to engage the
first respondent and approve the appearance of the advertisements. The
evidence satisfies me that the advertisements were authorised by the
Ministers in their official capacities and there was no cross
examination to establish any other basis for their actions. Further,
the explanation and promotion of Government-sponsored legislation are,
it seems to me, legitimate functions of Government in ordinary
circumstances.
FURTHER ISSUES - AIDING AND ABETTING
It was further claimed by the applicants that the first respondent
should be restrained, pursuant to sections 75B, 79 and 80 of the Act,
from aiding and abetting the Ministers in the commission of an offence
by engaging in the conduct of instructing the publication of deceptive
or misleading advertisements. I reject this argument for which no
authority was cited. In my view the first respondent was acting
entirely as an agent of and under the presumably contractual
instructions of the Government in devising and placing' the
advertisements for which it had no other responsibility. Again
assuming, without finding, that the two advertisements are in fact
misleading or deceptive, I do not believe that the first respondent's
activity amounted to the separate offence of aiding and abetting the
then presumed offence of misleading or deceptive conduct. In any event
the first respondent can no more be held liable under the Act for any
falsities or misleading or deceptive features of the advertisements than
can the Ministers themselves. If the Ministers are not bound by the
Act, they can commit no offences under it. I cannot' see how someone
else can then commit the offence of aiding and abetting a non offender
in not committing the principal offence.
The applicants also put the reverse argument - viz. that the Ministers
were aiding and abetting the commission of an offence under the Act by
their agents the first respondents and, as I understand it, by the
newspapers and television stations who were going to publish the
advertisements. They pointed in this latter connection to the words of
section 980(1){c) where reference is made to aiding and abetting "a
person" (presumably another person) to commit an offence, as
demonstrating that the second person does not have to be a person before
the court and could in this case for example be the newspapers or
television stations.
In my view both these submissions also fail. All the relevant "persons"
are before the Court. The first respondent is said to be committing the
offence and the Ministers are the alleged aiders and abettors. I do not
believe that the first respondent has committed any offence at all. In
the circumstances of this case, they are not subject to the Act. The
Ministers cannot commit any offence under it nor specifically can they
aid and abet a non offender.
As regards the publishers or proposed publishers of the advertising, the
applicants relied upon the decision of Phelps (above) where it was held
that those who caused misleading advertising to be published, not being
the newspapers, could be dealt with under section 52. However, upon a
close reading of the decision, it seems to me that the real issue before
the court was the locus standi of the applicant. Upon determining this
issue, the court allowed the case to proceed against those who had
caused the advertising to be published. The court did not address the
question of whether an aider and abettor may be found to have committed
an unlawful act notwithstanding that the person whom it is alleged was
aided and abetted could not be found to have committed an offence
because that person was not before the Court and the matter had never
been tried. In any event the publishers in this case would, it seems to
me, be protected from injunction under the Act for the same or similar
reasons as the first respondent.
In Rv Darby (1981-82) 40 ALR 594 the High Court held that one
conspirator may be guilty even if the other or others are acquitted.
That difficult decision, however, does not compel me to find that an
aider and abettor may be found guilty when the principal offender is
acquitted, even by operation of law alone. I therefore reject this
argument.
CONCLUSIONS
My conclusions, therefore, on the issues here raised are:
1. The Trade Practices Act does not bind the Crown in the right of
a State.
2. The Ministers are representatives of the State Crown and are
therefore not bound by the Act.
3. Their immunity from the Act extends to commercial contractors
with the State Crown, restrictions on whom would adversely
affect the rights and interests of the Crown.
4. The immunity also extends to exclude both the Ministers and the
commercial contractor being found to be aiders and abettors of
the committing by the other or by further contractors with
either,of any offence against the Act.
The application is therefore dismissed with costs, including the costs
of the second respondent up to the time of their dismissal from the
suit.
| certify that th.s and the SEvewtTeen
preceding p-g7s are @ tiue copy cf the
Reasons for Jucgment herein of his Honour
Mr. Justice Einfeld
Paklenn Tehhe
198%
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Assccjate |
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Dated: 2322 MAY
Counsel and Solicitors Mr Bainton, QC
for the applicants and Mr Stowe, QC
with Mr Douglas
and Mr Ellis
instructed by
Phillips Fox
Solicitors
Counsel and Solicitors Mr Hunter, QC
for the first respondent with Mr Sullivan
instructed by
Dawson Waldron
Solicitors
Counsel and Solicitors Mr Mason, QC
for the third and fourth Solicitor General for New South Wales
respondents with Mr Sackville and
Mr. B. Walker
instructed by
Crown Solicitor
Date of Hearing 25 May 1987
Date of Judgment 23 May 1988