Queensland Teachers Union Health Fund Ltd v Private Health Insurance Administration Council [2000] FCA 767

FEDERAL COURT OF AUSTRALIA

Queensland Teachers' Union Health Fund Limited v Private Health Insurance Administration Council [2000] FCA 767 ADMINISTRATIVE LAW – judicial review – whether irrelevant consideration taken into account – whether relevant consideration not taken into account – whether decision was within power of decision maker – use of policy in decision making – whether policy inconsistent with principles determined pursuant to statute – whether policy imposed arbitrary restriction on decision maker – whether decision maker was in a fiduciary relationship with the respondent. National Health Act 1953 (Cth): s 73BC(5B), (5C) & (5E), s 73BC(6) & (8) s 73BC(12), s 82G(1)(r) QUEENSLAND TEACHERS' UNION HEALTH FUND LIMITED v PRIVATE HEALTH INSURANCE ADMINISTRATION COUNCIL V 392 of 1999 GOLDBERG J MELBOURNE 8 JUNE 2000

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY V 392 of 1999

BETWEEN: QUEENSLAND TEACHERS UNION HEALTH FUND LIMITED

(ACN 085 50 376)

Applicant

AND: PRIVATE HEALTH INSURANCE ADMINISTRATION COUNCIL

Respondent

JUDGE: GOLDBERG J

DATE OF ORDER: 8 JUNE 2000

WHERE MADE: MELBOURNE

THE COURT ORDERS THAT: 1. The application is dismissed. 2. The applicant pay the respondent's costs of the application including reserved costs. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules

IN THE FEDERAL COURT OF AUSTRALIA

DISTRICT REGISTRY V 392 of 1999

BETWEEN: QUEENSLAND TEACHERS UNION HEALTH FUND LIMITED

(ACN 085 50 376)

Applicant

AND: PRIVATE HEALTH INSURANCE ADMINISTRATION COUNCIL

Respondent

JUDGE: GOLDBERG J

DATE: 7 JUNE 2000

PLACE: MELBOURNE

REASONS FOR JUDGMENT

Introduction 1 The applicant, Queensland Teachers' Union Health Fund Limited, has applied to the Court pursuant to the provisions of the Administrative Decisions (Judicial Review) Act 1974 (Cth) to review the decision of the respondent, Private Health Insurance Administration Council ("the Council"), made on 4 November 1998, under Private Health Insurance Administration Council Rule No 4. The Council's decision was in the following terms: "I refer to your submission to Council requesting that an adjustment be paid to your organisation for the 1996/97 financial year. Council has considered the submission for an adjustment of $280,014.00 for the 1996/97 year, and has decided not to make a determination under the Private Health Insurance Administration Council Rule No. 4 that an adjusting amount be paid to your organisation. Having regard to your submission, Council did not consider that exceptional circumstances as required under Council Rule No. 4 existed." The effect of the decision was that the Council decided not to exercise its power pursuant to clause 4 and clause 5 of Rule No 4 to make a determination under s 73BC(12) of the National Health Act 1953 (Cth) ("the Act") that an amount be paid out of the Health Benefits Reinsurance Trust Fund ("the Trust Fund") to the applicant. 2 The application was heard at the same time as applications to review similar decisions of the Council by Australian Unity Health Limited (V 393 of 1999) Government Employees' Health Fund Limited (V 391 of 1999) and Manchester Unity Friendly Society in NSW Limited (V 498 of 1999). The four applicants were represented by the same solicitors and counsel. The issues which are to be resolved are common to each application as in each case the Council's decision was in the same terms save for the amount of the adjustment sought and the years to which the adjustments related. 3 Apart from the facts particular to the applicant, the findings of fact, reasoning and conclusions I have reached in the application by Australian Unity Health Limited ([2000] FCA 769) apply equally to this application and I incorporate those findings of fact, reasoning and conclusions in these reasons for judgment.