Love, H. v. Desmone (Des) Williams & Ors [1994] FCA 984
Federal Court of Australia
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UUDGMENT No. soe Sch TG.
CATCHWORDS
COSTS - application for award of costs on indemnity basis -
principles to be applied in determining appropriate basis -
whether special circumstances exist to justify departure from
usual rule - whether proceedings in the nature of a test case.
Commonwealth Electoral Act 1918 (Cth) - s 360
Federal] Court of Australia Act 1976 (Cth) - s 43(2)
Aboriginal and Torres Strait Islander Commission Act 1989
(Cth) - s 10(1)(k), 8 26, Pt 2 of Sch 4
Knight v F.P. Special] Assets Ltd (1992) 174 CLR 178
Colgate Palmolive Co v Cussons Pty Ltd (1993) 118 ALR 248
at Deve ments td v Westpac Bankin fe) atio
(Federal Court of Australia, Davies J, 5 March 1993,
Unreported)
i ected Meats les) Pty Limited v Internationa]
Produce Merchants Pty Limited (1988) 81 ALR 397
EMI Records Ltd v Jan Cameron Wallace Ltd [1983] Ch 59
Tetijo Holdings Pty Ltd v Keeprite Australia Pty Ltd (Federal
Court of Australia, French J, 3 May 1991, Unreported)
Hudson v Lee (1993) 177 CLR 627
Nile v Wood (1988) 167 CLR 133
Qantas Airways Limited v Dillingham Corporation & Ors (Supreme
Court of New South Wales, Common Law Division, 14 May 1987
Unreported)
Cachia v Hanes (1991) 23 NSWLR 304
Australian Federation of Consumer Organisations Inc. v Tebacco
Institute of Australia Pty Ltd (1991)100 ALR 568
B i hippi - v Dillon "Mikhail Lermontov" (1991) 22
NSWLR 1
HAROLD LOVE v DESMONE (DES) WILLIAMS & OTHERS
No. NG 98 of 1994
IAN ELECT MMISSION v RODNEY GLENN WNEY THER
No. NG 102 of 1994
A IAN ELECTORAL MMISSION v DESMONE (DE WILLIAM:
OTHERS
No. NG 104 of 1994
RECEIVED
FOSTER J
16 DECEMBER 1994 16 DEC 1994
SYDNEY FEDERAL COU
AUSTRALIA é
PRINCIPAL
REGISTRY 4,
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY )
)
GENERAL DIVISION )
BETWEEN:
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
ee Ne a ee
GENERAL DIVISION
BETWEEN:
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
ee ew
BETWEEN:
No. NG 98 of 1994
HAROLD LOVE
Petitioner (Applicant)
DESMONE (DES) WILLIAMS
& OTHERS
Respondents
No. NG 102 of 1994
AUSTRALIAN ELECTORAL
COMMISSION
Petitioner
RODNEY GLENN TOWNEY &
OTHERS
Respondents (Applicants)
No. NG 104 of 1994
AUSTRALIAN ELECTORAL
COMMISSION
Petitioner
DESMONE (DES) WILLIAMS
& OTHERS
Respondents (Applicants)
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JUDGE MAKING ORDERS: FOSTER J
DATE : 16 DECEMBER 1994
PLACE: SYDNEY
MINUTE OF ORDERS
THE COURT ORDERS THAT:
1. In proceedings NG 98/94 and NG 102/94, the
E
Australian Electoral Commission pay the
Applicants' costs as taxed or assessed on the
basis that such costs are to include all costs
except in so far as they are of an unreasonable
amount or were unreasonably incurred, so that,
subject to such exceptions, the applicants will
be completely indemnified by the Australian
Electoral Commission for those costs.
In proceedings NG 98/94 and NG 102/94, the
Australian Electoral Commission pay the
Applicants' costs of this motion on the party
and party basis of taxation.
In proceedings NG 104/94 there shall be no
order as to costs.
Settlement and entry of orders is dealt with in
Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA )
)
NEW SOUTH WALES DISTRICT REGISTRY )
)
)
GENERAL DIVISION
BETWEEN:
IN THE FEDERAL COURT OF AUSTRALIA
)
)
NEW SOUTH WALES DISTRICT REGISTRY )
)
GENERAL DIVISION )
BETWEEN:
IN THE FEDERAL COURT OF AUSTRALIA
)
)
NEW SOUTH WALES DISTRICT REGISTRY )
)
GENERAL DIVISION )
BETWEEN:
No. NG 98 of 1994
HAROLD LOVE
Petitioner (Applicant)
DESMONE (DES) WILLIAMS
& OTHERS
Respondents
No. NG 102 of 1994
AUSTRALIAN ELECTORAL
COMMISSION
Petitioner
RODNEY GLENN TOWNEY &
OTHERS
Respondents (Applicants)
No. NG 104 of 1994
AUSTRALIAN ELECTORAL
COMMISS TON
Petitioner
DESMONE (DES) WILLIAMS
& OTHERS
Respondents (Applicants)
CORAM: FOSTER J
DATE: 16 DECEMBER 1994
PLACE: SYDNEY
REASONS FOR JUDGMENT
HIS HONOUR: This Notice of Motion has been brought in
connection with three related sets of proceedings: matters NG
98/94, NG 104/94 and NG 102/94. Each of these proceedings
concerned petitions brought pursuant to Pt 2 of Sch 4 of the
Aboriginal and Torres Strait Islander Commisgion Act 1989
(Cth) ("the Act"). The petitions in NG 98/94 and NG 104/94
concerned the election for regional councillors for the
Northern Rivers Ward in the Coffs Harbour Region on 4 December
1993 ("the Love petition"). The petition in NG 102/94
concerned an election held on the same date for regional
councillors for the Wirawongam Ward of the Wagga Wagga Region
("the Towney petition"). The elections had been conducted by
the Australian Electoral Commission ("AEC"). During the
hearing of the motion I was advised that settlement had been
reached in matter G 104/94. This leaves for consideration the
motion in relation to matters NG 98/94 and NG 102/94.
At the hearing of the petitions, the Court made
orders which were novel in electoral law. These orders
resulted in polling errors, that had been made by polling
officers, being rectified by a forensic scientific process of
matching envelopes containing voting papers with original
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voter identification slips. This procedure enabled the
carrying out of a further scrutiny and count of the votes
originally cast but previously excluded from the poll. The
need for a fresh election was thereby avoided and an electoral
result was obtained which was in accordance with the voting
wishes of the electors.
The Court, by consent, made the following orders as
to costs:
(a) In proceedings NG 98 of 1994, "The Court orders the Ninth
Respondent in proceedings NG 98 of 1994 (AEC) to pay the costs
of the Petitioner and the First to Eighth Respondents in those
proceedings and gives liberty to the parties to apply to the
Court in respect of an appropriate scale if the parties are
unable to otherwise agree."
(b) In proceedings NG 102 of 1994, "The Court orders the
Petitioner (AEC) to pay the costs of the Respondents and gives
liberty to apply to the Court in respect of an appropriate
scale if the parties are unable to otherwise agree."
In August 1994, the Aboriginal Legal Service
("ALS"), which, with some exceptions, acted for the
respondents in the petitions, submitted to the Australian
Government Solicitor ("AGS"), solicitor for the AEC, a bill of
costs in relation to the petitions. The ALS was notified by
the AGS that the amount and scale of costs claimed in each
matter was disputed. The AEC asserted that the appropriate
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scale for costs was on the party and party basis. The ALS,
was not prepared to accept this basis for costs, as it would
occasion a considerable reduction in the amounts claimed. It
sought the payment of costs on an "indemnity" basis. This
basis was distinguished in argument from the '"solicitor-
client" and "solicitor-own client" basis. No orders were
sought on those bases.
It is necessary to say something about' the
applicants in the Motion. Mr Love was a voter at the Northern
Rivers Ward election. All other applicants were respondents
to the petitions brought by AEC in respect of the flawed
elections. They were councillors who had been elected. In
respect of some of them, their election was nullified as a
result of the counting of the originally excluded votes.
Mr McCarthy QC appeared for Mr Love and all the respondents
with the exception of the fourth, sixth, tenth and eleventh.
These respondents were separately represented at the hearing
of the petitions and on this Motion, by Mr Kildea of counsel.
These respondents had originally opposed the making of the
orders enabling the scientific procedures to be established.
They sought, instead, a fresh election. It was not disputed,
however, that their costs should be paid by AEC, on the broad
basis that the miscarrying of the elections had _ been
occasioned by fault on the part of AEC's employees in the
conduct of the elections. These respondents, as applicants,
supported the motion brought by the other applicants. At the
hearing, leave was granted to them to seek similar orders for
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"{jndemnity" costs on their own behalf. In relation to their
application the AEC made a similar submission, namely that
costs should be awarded only on a party and party basis.
Accordingly, the only matter in issue in this motion
is whether AEC should pay costs on a party and party or
"indemnity" basis. The Court has received, as part of the
evidence, the bill of costs which was submitted with the
actual amount of money claimed in respect of each item blanked
out. The Court has not been asked to consider the individual
items separately on the basis of whether they should be
allowed or disallowed. It is accepted that this would be the
task of the Court's taxing officer, as would be the allocation
of specific amounts to each item. It is not disputed, however
that taxation on a "party and party" basis would, in the
ordinary course, result in the disallowance of a substantial
number of items with the probable outcome that something in
the order of one-third to two-fifths of the amount claimed
would be taxed off. Taxation on an "indemnity" basis would
not result in the whole of the bill being allowed as asked.
It would, however, result in the allowance of a large number
of the items that would otherwise be taxed off.
It is convenient, at this stage, to indicate that I
have not been persuaded that the applicants for whom Mr Kildea
appears should be dealt with differently in relation to their
entitlement to costs from the applicants for whom Mr McCarthy
QC appears. Although they originally opposed the making of
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the orders that were finally made, their opposition was useful
to the Court in the novel situation that was presented. It
sharpened the focus upon the questions for decision. I should
add that it is plain that these applicants, like the other
applicants, being aboriginal citizens of limited means, are
not in a financial position to accept the burden of the costs
payable to their solicitors, which are not recoverable from
AEC as a result of taxation.
The order sought by the applicants is that:
"The Australian Electoral Commission pay the
Applicants' costs as taxed or assessed on the basis
that all costs shall be allowed except in so far as
they are of an unreasonable amount or have been
unreasonably incurred, and any doubts which a taxing
officer may have as to whether the costs were
unreasonably incurred or unreasonable in amount
shall be resolved in favour of the Applicants."
This is the form of order for indemnity costs
provided for in Rule 28A of the Rules of the Supreme Court of
New South Wales. Such orders, however, are not always made in
this form, a matter I shall return to later.
Tt' TI AWARD T
There is no dispute between the parties that the
Court has jurisdiction to award indemnity costs in these
matters. The power of the Court of Disputed Returns to award
costs appears in Schedule 4, s 10(1)(k) and 8s 26 of the Act,
which states:
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"(1) The powers of the Court in trying an election
petition include but are not limited to the
following powers:
(k) to award costs.
(2) The Court may exercise all or any of its
powers under this clause on such grounds as the
Court in its discretion thinks just and sufficient.
8 26 The Court may award costs against an
unsuccessful party to a petition or reference."
Evidently, there is no explicit reference in the Act
as to the scale of costs and charges. Nevertheless, the
parties agree that the discretion of the Court in relation to
costs orders is not circumscribed; subject to it being
"exercised judicially and in accordance with general legal
principles pertaining to the law of costs": Knight v F.P.
Special Assets Ltd (1992) 174 CLR 178 per Mason CJ and Deane J
at 192 (Gaudron J agreeing at 205).
Even if jurisdiction could not be found in the Act,
the Court's jurisdiction to award costs could be derived from
8 43(2) of the Federal Court of Australia Act 1976 (Cth) and,
by reason of its status as a superior court of record and
court of law and equity: Colgate Palmolive Co v ns_P
Ltd (1993) 118 ALR 248 per Sheppard J at 252; see also, per
Davies J in Ragata Developments Pty Ltd v Westpac Banking
Corporation (Federal Court of Australia, 5 March 1993,
Unreported); Fountain Selected Meats ales) Pty Limited v
international Produce Merchants Pty Limited (1988) 81 ALR 397;
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EMI Records Ltd v Jan Cameron Wallace Ltd [1983] Ch 59; Tetijo
Holdings Pty Ltd v Keeprite Australia Pty Ltd (Federal Court
of Australia, 3 May 1991 French J, Unreported).
The principles to be applied by the Court in
determining the basis for costs were expounded by Sheppard J
in Colgate Palmolive at 256:
"The ordinary rule is that, where the court orders
the costs of one party to litigation to be paid by
another party, the order is for payment of those
costs on the party and party basis. In this court
the provisions of 0.62, rr.12 and 19, and the Second
Schedule to the rules will apply to the taxation.
In many cases the result will be that the amount
recovered by the successful party under the Order
will fall short of (in many cases well short of) a
complete indemnity.
This has been the settled practice for centuries in
England. It is a practice which is entrenched in
Australia. Either legislation (perhaps in the form
of an amendment to rules of court) or a decision of
an intermediate Court of Appeal or of the High Court
would be required to alter it."
His Honour went on at 256-7 to note that:
"In consequence of the settled practice which
exists, the court ought not usually make an order
for the payment of costs on some basis other than
the party and party basis. The circumstances of the
case must be such as to warrant the court in
departing from the usual course. MThat has been the
view of all judges dealing with applications for
payment of costs on the indemnity or some other
basis whether here or in England. The tests have
been variously put. The Court of Appeal in Andrews
v Barnes (39 Ch D at 141) said the court had a
general and discretionary power to award costs as
between solicitor and client 'as and when the
justice of the case might so require'. Woodward J
in Fountain Selected Meats appears to have adopted
what was said by Brandon LJ (as he was) in Preston v
Preston [1982] 1 All ER at 58 namely, there should
be some special or unusual feature in the case to
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justify the court in departing from the ordinary
practice. Most judges dealing with the problem have
resolved the particular case before them by dealing
with circumstances of that case and finding in it
the presence or absence of factors which would be
capable, if they existed, of warranting a departure
from the usual rule. But as French J said (at 8) in
Tetijo: 'the categories in which the discretion may
be exercised are not closed'. Davies J expressed
(at 6) similar views in Ragata."
There is no dispute between the parties that there
is nothing in the Act which displaces the usual rule that
costs be awarded on the party and party basis. Nor is there
any disagreement that special circumstances must be present to
justify a departure from the usual rule.
Ri T, T 2
Circumstances that have been held to warrant a
departure from the usual rule were summarised in Colgate
Palmolive at 257:
"..ethe making of allegations of fraud knowing them
to be false and the making of irrelevant allegations
of fraud (both referred to by Woodward J in Fountain
and Gummow J in Thors v Weekes (1989) 92 ALR 131 at
152; evidence of particular misconduct that causes
loss of time to the court and to other parties (
French J in Tetijo); the fact that the proceedings
were commenced or continued for some ulterior motive
( Davies J in Ragata) or in wilful disregard of
known facts or clearly established law (Woodward J
in Fountain and French J in J-Corp); the making of
allegations which ought never to have been made or
the undue prolongation of a case by groundless
contentions (Davies J in Ragata); an imprudent
refusal of an offer to compromise ( eg Messiter v
Hutchinson (1987) 10 NSWLR 525; Maitland Hospital v
Fisher (No.2) (1992) 27 NSWLR 721 at 724 (Court of
Appeal); Crisp v Kent (SC(NSW)(CA), 27 Sept 1993,
unreported) and an award of costs on an indemnity
basis against a contemnor (eg Megarry V-C in EMI
Records)..."
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To this list may be added the category identified by
Davies J in Ragata: namely, "where the case was understood to
be a test case, or to have a wider effect than merely inter
parties, in which circumstances additional and special work
and responsibilities would have been undertaken."
There were substantially three grounds advanced by
the applicants to comprise "special circumstances" so as to
justify the proposed order: the proceedings involved a process
of public administration; the absence of indemnity of the
applicants; and the proceedings were in the nature of a test
case.
THE PROCESS OF PUBLIC ADMINISTRATION
The applicants sought to distinguish these
proceedings from the ordinary inter parties proceedings by
emphasising the involvement of councillors and electors in
their public capacity. The petitioner in the Love petition
took advantage of the feature of electoral litigation adverted
to by Gaudron J in Hudson v Lee (1993) 177 CLR 627 at 633:
",.. very few impediments are placed in the way of a
person who wishes to bring proceedings challenging
an election in the Court of Disputed Returns."
The consequences of the petitioner availing himself
of the opportunity to bring proceedings included the
investment by the elected office bearers of considerable time
and expense in participating in the proceedings. There is no
dispute about that.
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Nor is there any dispute that error occurred in the
balloting and recording of votes in the elections. It is
submitted that the elected officials, not responsible for the
commission of the error, should not incur liability for the
mistakes made by the polling officials. At the same time, the
applicants point to what they characterise as the AEC's
central role in the circumstances leading to the dispute and
consequent responsibility for the involvement of the other
parties.
The fact that the councillors were involved in the
proceedings concerning the process of public administration is
not, in my view, in itself a sufficient basis to award costs
upon the basis desired by the applicants. The appropriateness
of the AEC paying the costs of the applicants is not in
dispute. The Court's discretionary powers under the Act to
award costs resembles the discretionary power of the Court of
Disputed Returns in s 360 of the Commonwealth Electoral Act
1918 (Cth). In Nile v Wood (1988) 167 CLR 133, the High Court
ordered a third party (the Commonwealth) to pay the costs of
an electoral petition, but there was no suggestion that the
costs order would be on anything other than the' usual basis.
Mr Kildea sought to distinguish these matters from Nile v Wood
on the basis that the latter case concerned competing
candidates vying for the same position. I do not find that
argument persuasive. I accept the AEC's submission that
contested proceedings are inter parties in the relevant sense.
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The AEC correctly points out, in my opinion, that in
judicial review proceedings, or cases containing
constitutional principles, costs are awarded on the usual
basis even though the public acts of administration officials
are called in question. The fact that these proceedings
involve errors made by officials in the process of public
administration does not, in: my view, afford "special
circumstances" sufficient to justify departure from the party
and party basis.
ABSENCE OF INDEMNITY
Mr McCarthy QC made essentially three points in
arguing that the absence of full indemnity represents "special
circumstances".
In the first place, reliance was placed upon the
comments of Rogers J (as he then was) in Qantas Airways
Limited v Dillingham Corporation §& Ors (Supreme Court of New
South Wales, Common Law Division, 14 May 1987, Unreported)
where his Honour suggested (at p 8) that:
",.-in the current context of litigation, there is a
great deal to be said for the proposition that a
successful party should always be fully indemnified
for costs...".
His Honour was referring to the notorious
discrepancy between costs recovered on the party and party
taxation of costs and costs payable by the successful party to
its own solicitors.
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The comments of Rogers J have precipitated some
debate. A contrary view was expressed by Handley JA in Cachia
v Hanes (1991) 23 NSWLR 304 where, after acknowledging the
unlikelihood of complete indemnity, his Honour commented that:
"The limited indemnity provided to a _ successful
represented litigant for expense incurred and time
lost reflects a compromise between the interests of
successful and unsuccessful litigants. It is also
an important spur to settlement. The rule that a
litigant in person can only recover out of pocket
expenses also represents a compromise between the
interests of successful and unsuccessful litigants.
In my opinion if the existing law is to be changed
this must be done either by the High Court or by
Parliament."
In Colgate Palmolive, Sheppard J affirmed the view
that settled practice could only be altered through
legislation, the decision of an intermediate Court of Appeal,
or the High Court (at 256). In Ragata, Davies J asserted that
it was "not open to an individual Judge to award costs having
regard to his own view as to the adequacy of party/party costs
80 fixed."
I respectfully concur in these views,
Secondly, Mr McCarthy QC cited the financial
disadvantage to aboriginals or aboriginal communities likely
to accrue if costs were awarded on the usual basis. The third
and associated point is the argument that if the motion fails,
a considerable proportion of costs will necessarily be borne
by the Aboriginal Torres Strait Islander Commission, the ALS
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or other legal representatives, as the individual councillors
are in no position to pay these costs.
I have given close consideration to these
submissions but, in my view, they are answered by the comments
of Sheppard J in Colgate Palmolive (at 256) and Davies J in
Ragata (at page 4) noted above. Significantly, when Morling J
awarded an indemnity costs order in Australian Federation of
Consumer Organisations Inc. v Tobacco Institute of Australia
Pty Ltd (1991)100 ALR 568, his Honour noted that the extent of
the applicant's financial resources and degree of legal aid
were insignificant (at 572) and based the award on another
footing. I am satisfied that I must reject the submission
that the absence of full indemnity of the applicants justifies
departure from the usual basis.
Ri IN THE NA' E_ OF A TE E?
Mr McCarthy QC submitted that the applicants acted
in the public interest by participating in the proceedings.
The proceedings were characterised as being in the nature of a
test case, in that they had wider implications than the
particular interests of the parties and involved novel
elements of law and procedure in election litigation.
Particular reference was made to the comments of
Davies J in Ragata, where his Honour concluded that " special
orders of costs were made where the case was understood to be
a test case, or to have a wider effect than merely inter
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parties, in which circumstances additional and special work
and responsibilities would have been undertaken."
The applicants also placed reliance upon the
judgment of Morling J in the Tobacco Institute case. In that
case, his Honour emphasised that the proceedings were in the
nature of a test case on the issue of whether passive smoking
was a health hazard to non-smokers. His Honour held that the
applicant acted in the public interest by bringing the
proceedings and that, under the circumstances, it was
inappropriate that a person should be left to meet part of his
costs, "in consequence of the public-spirited action it has
taken." (at 572).
Although Morling J's order was set aside on appeal
[(1993)113 ALR 257), the Full Court's cost orders were
influenced by the decision on other aspects of the appeal and
do not reflect on the order of Morling J made on the basis of
his Honour's findings at first instance.
With these principles in mind, I turn to the matters
urged in support of the submission that the proceedings were
in the nature of a test case and that the applicants conducted
themselves in the public interest. There were two points
advanced. First, the proceedings featured the unprecedented
use of forensic testing in order to save the election.
Secondly, the issues had wider ramifications than between the
parties.
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It is to be recalled that as proceedings unfolded,
there was a real possibility - indeed a case was made out for
so doing - that the elections in both wards would be declared
void and new elections ordered. As it transpired, the use of
the forensic process allowed the elections to be validated
after the subsequent scrutiny and recount. The applicants
claimed that the process rectified the problem and their
involvement in the proceedings facilitated the public interest
in avoiding fresh elections.
The AEC contended that the proceedings fell short of
constituting a test case. It argued that they established no
new principle which would govern the decision of subsequent
cases. Indeed, it was unlikely that there would be similar
cases in the future. In short, the AEC characterised the
forensic process adopted as being no more than a pragmatic
solution to a peculiar problem.
In making these submissions, the AEC sought to
distinguish the proceedings from the Jobacco Institute case
and Baltic Shipping Co. v Dillon "Mikhail Lermontov" (1991) 22
NSWLR 1 by arguing that in contrast to the former decision,
the proceedings were not brought for the public interest; and
in contrast to the latter, the proceedings could not be
construed as establishing any binding precedent.
In my view, these submissions underestimate the
significance of the utilisation of the forensic process
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proposed by the applicants. There is no dispute that the
process preserved the election nor that the idea of utilising
it originated with the applicants. The process was a uniquely
practical measure which obviated the need for the elections
being declared void. Although the process may be considered
pragmatic it was, nevertheless, an ingenious adaptation of
existing scientific skills to serve an important public
purpose. The cost and considerable inconvenience of the
holding of fresh elections was avoided and the voting
intentions of a number of electors, who had = been
disenfranchised through no fault of their own, were given
effect to. All this was very much in the public interest.
Whilst these proceedings cannot be described as a
"test case" in the true sense of that phrase they,
nevertheless, "have a wider effect than merely inter parties".
They introduced into electoral law the concept of using
forensic scientific expertise to overcome the effects of human
error in the electoral process. It was at least a path-
finding or trail-blazing approach, more than a mere one-off
practical solution.
The evidence clearly points to the initiative of the
ALS in proposing an approach to the Court for orders for the
forensic procedures. Much professional time was expended by
the ALS in bringing the interested parties to accept the
practicality and legality of the proposals, in implementing
~18-
the investigation by the scientists, and compiling the
results.
Notwithstanding that the AEC expended large effort
and cost itself in the preparation of affidavits and the
Agreed Statement of Facts and Contentions, I accept that it
was the applicants, through their solicitors, that were the
driving force in having the forensic process implemented. In
any event, the costs order is sought only in respect of work
done by the applicants. The amount of work undeniably done by
AEC and its legal representatives can have no bearing upon
this. In my opinion, the applicants' role in this case in
facilitating a solution to a problem not of their own making
sufficiently constitutes "special circumstances" to ground an
indemnity costs order.
THE TERMS OF THE ORDER
The proposed order duplicates the terms of Rule 28A
of the Rules of the Supreme Court of New South Wales. It is
to be observed that the first limb of the order reflects the
terms of the indemnity costs orders made Woodward J in
cted Meats (at 401) and by Morling J in the
Tobacco Institute case (at 574). Mr McCarthy QC, in seeking
that the order in these proceedings should contain the second
limb, contended that it merely reinforces the first limb.
However, the AEC resisted the second limb of the
proposed order on the ground that it went further than the
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case reasonably warranted. I agree. The Supreme Court rule
no doubt relates to the policy in those rules of penalising
the rejection of reasonable offers of compromise.
I consider that the special circumstances of these
proceedings which justify the special order should not warrant
what is, in effect, a circumscribing of the discretion of the
taxing officer. For this reason, I prefer and adopt the
formulation of Morling J in the Tobacco Institute case. The
applicants should bear the onus of demonstrating that
individual cost items were not unreasonably incurred and are
not unreasonable in amount. For instance, it will be very
much a question for the taxing officer to determine whether it
was reasonable for the applicants to incur the cost of the
attendance of either or both of their legal representatives at
the scrutiny and counting of the reconstituted votes. The
order for indemnity costs, of course, does not remove this or
like questions from consideration.
I do not consider that the costs of this motion
should be awarded on an indemnity basis. I consider that the
award of costs on that basis should be limited to the special
circumstances in which the applicants' acted in the public
interest in urging a process to save the elections.
I make the following orders:
1. In proceedings NG 98/94 and NG 102/94, the Australian
Electoral Commission pay the Applicants' costs as taxed or
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assessed on the basis that such costs are to include all costs
except in so far as they are of an unreasonable amount or were
unreasonably incurred, so that, subject to such exceptions,
the applicants will be completely indemnified by the
Australian Electoral Commission for those costs.
2. In proceedings NG 98/94 and NG 102/94, the Australian
Electoral Commission pay the Applicants' costs of this motion
on the party and party basis of taxation.
3. In proceedings NG 104/94 there shall be no order as to
costs.
I certify that this and the preceding
nineteen (19) pages are a true copy of
the reasons for judgment herein of the
Honourable Mr Justice M. L. Foster.
Associate: Apres
Date: 16 DECEMBER 1994
APPEARANCES
COUNSEL FOR THE APPLICANT: MS R. HENDERSON
INSTRUCTED BY: AUSTRALIAN GOVERNMENT SOLICITOR
COUNSEL FOR THE FIRST, SECOND, THIRD, FIFTH, SEVENTH, EIGHTH
AND NINTH RESPONDENTS:
MR J. MCCARTHY Q.C.
COUNSEL FOR THE FOURTH, SIXTH, TENTH AND ELEVENTH RESPONDENTS:
MR J. KILDEA
INSTRUCTING SOLICITORS FOR THE FIRST, SECOND, THIRD, FIFTH,
SEVENTH, EIGHTH, NINTH TENTH AND ELEVENTH RESPONDENTS:
ABORIGINAL LEGAL SERVICE
INSTRUCTING SOLICITORS FOR THE FOURTH AND SIXTH RESPONDENTS:
CRADDOCK, MURRAY & NEUMAN
DATES OF HEARING: 10 NOVEMBER 1994
DATE OF JUDGMENT: 16 DECEMBER 1994