GALEA v NEW SOUTH WALES EGG CORPORATION [1989] NSWCA 81
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GALEA v NEW SOUTH WALES EGG CORPORATION
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
KIRBY P, SAMUELS and MEAGHER JJA
5 October 1989, 21 November 1989
[1989] NSWCA 81
PRACTICE and PROCEDURE — appeal out of time — extension of time —
considerations relevant — explanation for the failure to appeal within time —
demonstration of an arguable case — appellant announces to court by senior counsel
that no appeal will be brought against declarations and orders for the payment of
damages — purported appeal six months later, after damages assessed — whether
within time — whether extension should be granted — held: (1) The appeal was not
within time and the appellant required an order extending time to add the grounds
of challenge to the earlier orders.
Smith v Tabain (1987) 10 NSWLR 562 and
National Employers Mutual General Insurance Association Ltd v Manufacturers
Mutual Insurance Ltd and Ors, Court of Appeal, unreported, 21 June 1989;
(1989) NSWJB 128 distinguished;
CONSTITUTIONAL LAW - State Act - validity of - challenge to as in breach of Magna
Carta, Imperial Acts, fundamental rights and the suggested limitation in the constitutional
provision empowering laws to be made for the "peace, welfare and good government" of
the State - whether arguable case such as would involve a substantial injustice to the
appellant if he were denied the opportunity to argue it - held: (Semble) The appellant's
case did not have legal merit and accordingly no substantial injustice was done in the
circumstances by refusing him leave to add the constitutional grounds of challenge.
Union Steamship Co of Australia Ltd v King (1988) 62 ALJR 645, 648;
Building Construction Employees and Builders' Labourers Federation of New
South Wales v Minister for Industrial Relations (1986) 7 NSWLR 372 applied;
Jago v The District Court of New South Wales, unreported, High Court of
Australia, 12 October 1989 referred to.
DAMAGES - statutory corporation - conversion of eggs which by statute are vested in
Corporation - "rebel" egg farmer refuses to supply eggs - dispute as to hen (and egg) count
- whether count based on admissible evidence - whether damages payable in the
circumstances - held: (1) The evidence relied upon to calculate the damages was
admissible; (2) Evidence tendered to challenge the calculation was inadmissible; (3) No
error was shown in the computation of damages. Butler v The Egg and Egg Pulp
Marketing Board (1966) 114 CLR 185 applied. PRACTICE and PROCEDURE - fresh
evidence on appeal - held: Not receivable except in special circumstances.
Radnedge v Government Insurance Office of New South Wales (1987) 9
NSWLR 235;
Binge v Bennett (1988) 13 NSWLR 578, 589 applied;
Coulton v Holcombe (1986) 162 CLR 1, 7 and
Nissho Iwai Australia Ltd v Malaysian International Shipping Corporation
(1988) 12 NSWLR 730.
STATUTES - repeal - effect of on statutory corporation - effect of on pending appeal -
held: The proceedings remained on foot. Interpretation Act 1987, s30, s53 applied.
WORDS AND PHRASES - "peace, welfare and good government".
Constitution Act 1902, s5. Egg Industry Act 1983, s8, s24, s31. Egg Industry (Repeal
and Deregulation) Act 1989, s7(3). Imperial Acts Application Act 1969, s6, Schedule 2.
Interpretation Act 1987, s30, s53. Supreme Court Act 1970, s75A.
2 UNREPORTED JUDGMENTS
1. Motion for leave to appeal out of time against the orders of Needham J dated 9
February 1988, dismissed with costs; and
2. Appeal from the orders of Needham J of 19 August 1988 dismissed with costs.
Kirby P The appellant appeals from orders made by Needham J on 19 August
1988 (the August orders). He seeks "leave to appeal", out of time, from
declarations and orders which his Honour had earlier made on 9 February 1988
(the February orders). The Court refused to extend the time to file grounds of
appeal in respect of the February orders. Accordingly, the hearing of the appeal
proceeded, confined to the challenges to the August orders. So far as that
challenge is concerned, I am of the opinion that the appeal must be dismissed
with costs.
The reasons for refusing the appellant the extension of time within which to
bring the appeal against the earlier orders, became clear in the course of
argument. However, it is appropriate now to set down the reasons which led me
to refuse the extension and thus to conine the appeal to those matters which were
raised by the grounds of appeal which were within time.
A decision not to appeal from final orders
The February orders arose out of a challenge by the appellant to the authority
of the respondent, a corporation established at that time by s8(1) of the Egg
Industry Act 1983. The appellant was one of a number of "rebel" poultry farmers
who declined to apply for a licence under the Act. He was prosecuted on a
number of occasions and convicted. Needham J found that he had "shown a
determination to continue his illegal activity... attracted a large degree of
publicity... [and] at all times... expressed defiance of the [Corporation], saying
that whatever [it] might do, he was staying and would defend his flock to the
death".
In the proceedings before Needham J which led to the February orders, the
Corporation had sought a declaration that the appellant was keeping hens on the
premises whilst they were unlicensed, contrary to s31(1) of the Act; an order
restraining him from doing so; a declaration that he had sold eggs in
contravention of s24(2) of the Act; an order restraining him from doing so; and
a reference to the Master to assess the damages payable to the Corporation in the
circumstances.
As disclosed in Needham J's reasons for judgment dated 3 February 1988, his
Honour concluded that the appellant intended to continue his defiance of the law
as established by the Act. He concluded that the case was one where injunctive
relief was necessary "in order to uphold the law". He dismissed a defence based
upon the alleged laches of the Corporation. He dismissed other defences based
upon alleged differential treatment of the appellant and hardship to the appellant.
He made the orders and declarations sought by the Corporation. Having regard
to the decision of the High Court of Australia in Butler v The Egg and Egg Pulp
Marketing Board (1966) 114 CLR 185, and as requested by the Corporation, he
referred to the Master the assessment of the damages to which the Corporation
was, in law, entitled. He concluded his reasons for judgment with these words:
"T will publish these reasons and direct the plaintiff to bring in short minutes
of orders reflecting them. If the defendant makes application for the injunctions
to be suspended on the ground that he proposes to make applications to legalise
his operation or to ensure in some other way that the breaches of the Act cease,
I will certainly listen to such an application. If no such application is made, or if
it is made but refused, the orders will date from the date on which the Short
Minutes are approved."
URJ GALEA v NEW SOUTH WALES EGG CORPORATION (Kirby P) 3
The proceedings were then stood over until 9 February 1988. On that day they
were relisted before Needham J. Unfortunately a transcript of what transpired on
that day is not available. As the hearing apparently took place at 9.30 am, it is
possible that no transcript was taken. However, in the absence of official
transcript, the parties have placed before the Court evidence of what took place.
This is the proper course. See Builders Licensing Board vy Mahoney (1986) 5
NSWLR 96, 98.
The solicitor for the Corporation has sworn an affidavit in which he described
what took place as follows:
"On 9th February, 1988, I attended Court and instructed Mr Dennis Cowdroy
and Mr David Davies of Counsel before Mr Justice Needham. rhe opponent was
represented by Mr Maurice Neil, QC and Mr Lindsay Ellison of Counsel. Mr
Cowdroy handed up Short Minutes of Order prepared on behalf of the Plaintiff.
On behalf of the Opponent, Mr Neil made Application for a suspension of O.3
and O.4 in the Short Minutes of Order and made submissions in support of that
Application. In the course of his submissions, Mr Neil said words to the
following effect:
'As presently advised, my client does not intend to appeal against your
Honour's decision... " Mr Justice Needham then made the... orders."
An affidavit by Mr Galea was read in connection with the application to this
Court for an extension of time within which to appeal from the February orders.
In this, Mr Galea admits to a conference with Mr Ellison of counsel and Mr
Montgomery, his then solicitor. He says:
"Mr Ellison said to me words to the effect 'you will have either to buy quota
and become a legal egg producer or get out of the business. If you like you can
get rid of the chickens and start up with ducks. The Judge has indicated he will
grant a stay of his orders if you want to buy quota or get out of business. In the
meantime we will carry on with the damages case before the Master and when
that is finished the case goes back to Judge Needham'."
Referring to the affidavit of the solicitor for the Corporation and specifically
the reference to Mr Neil, Mr Galea says:
"As to paragraph 7... I do not know and cannot admit that Mr Neil said the
words therein alleged. If he did so it was without discussion or instructions from
"
me.
Also tendered on the application for extension of time was a letter from Mr
Ellison to the then solicitors for the appellant. This was tendered on behalf of the
appellant who expressly waived the privilege which would otherwise have
attached to that communication. In the letter, the only relevant statement is a
reference to a long conference with Mr Neil. It is true that the possibility of
appeal is not specifically referred to in this letter. But, following the decision of
Needham J, with its drastic consequences for the appellant, it defies credulity to
suggest that some consideration (however passing) would not have been given by
those then representing the appellant to the possibility of an appeal from his
Honour's orders. It is inherently unbelievable that no such question would have
been raised with Mr Galea by his then representatives. In this sense, the statement
attributed to Mr Neil by the solicitor's recollection of what occurred on 9
February 1988 simply bears out the normal expectation of what would have
occurred, the litigation being conducted by experienced counsel.
4 UNREPORTED JUDGMENTS
The appellant does not, in terms, deny that Mr Neil said what is attributed to
him. No affidavit from Mr Neil, Mr Ellison or the then solicitors for the appellant
is produced to depose, with the appellant's consent, to the instruction, or lack of
it, concerning the possibility of appeal and the times that would then have had to
be observed.
The inference which I would draw from the orders made, the affidavits of the
appellant and the solicitor and the letter of Mr Ellison, is that a decision was
affirmatively and consciously made by the appellant not to appeal from the orders
of Needham J of 9 February 1988. It was this decision which was announced to
the court by Mr Neil on 9 February 1988 at a time when such an announcement
would have been appropriate and relevant.
This conclusion is further reinforced by what then happened. On 9 February
1988 Needham J granted a stay of the operation of O.3 and O.4 (by which the
appellant was restrained) up to and including 26 February 1988. The principal
purpose of such a stay was that disclosed by his Honour in his judgment, and
apparently discussed with the appellant by his then legal representatives.
However another purpose would have been to protect any appeal which the
appellant wished to bring. As the practice of this Court demonstrates, virtually at
every motion list, stays are commonly sought to prevent the execution of the
orders under appeal, in order to protect the utility of the appeal. Far from seeking
to take advantage of the stay for that or any other purpose, when the matter was
relisted before Needham J on 26 February 1988, Mr Ellison on behalf of the
appellant said to his Honour: "I wish to place it on record that the defendant
makes no such application [for a stay]."
The appellant terminated the instructions of his then solicitors some time in
March 1988, apparently at or about the time that the 28 days for the bringing of
the appeal from Needham J's orders of 9 February 1988 expired. He was
unrepresented thereafter until his present solicitors came onto the record soon
after the August orders of Needham J were made. Six months passed without any
challenge to the February orders of Needham J. In this time, the appellant,
although unrepresented, continued his own defence of his interests in the
Supreme Court. He appeared, unrepresented, before Bryson J and Cohen J in
connection with contempt proceedings. He also appeared before Master Gressier,
to whom Needham J had referred the assessment of the damages contemplated by
the last of the February orders. It was said to the Court that the appellant was a
man of little sophistication, education and understanding. There is no evidence of
this. But even if it were so, an affidavit which he filed in the proceedings before
Master Gressier is neatly typed and clearly expressed. It suggests, at least, that
the appellant was receiving advice from a quarter not unfamiliar with legal forms
and expression.
Also during the period of six months which elapsed, the respondent took steps
to enforce the orders of Needham J. Sequestrators were appointed by the court.
They were appointed solely on the basis of the orders now challenged. Other
third party rights arose. These would be affected by any orders on appeal, setting
aside the February orders made by Needham J which the Corporation by March
1988 was entitled to consider would not be challenged.
The importance of observing time limits in appeals.
In earlier times, courts enforced most stringently the time limits established by
law for the bringing of appeals. An appeal, even one day out of time, would be
dismissed on that ground. This approach was adopted out of deference to the
principle of finality of litigation and the entitlement of parties, after the time for
URJ GALEA v NEW SOUTH WALES EGG CORPORATION (Kirby P) 5
appeal had expired, to order their affairs on the basis of the final judgment of a
court. More recently, a somewhat more relaxed view has been taken, sanctioned
by the Rules of Court and the determination, which those Rules promote, to
secure substantial justice where this would be defeated by an overly rigid
adherence to provisions as to time. See eg Mount v Williams, Court of Appeal,
unreported, 27 June 1988; (1988) NSWJB 112. Nevertheless, the rules requiring
appeals to be brought within time are still important. They must ordinarily be
complied with strictly. If they are not, it is for the defaulting party to show why
the Court should grant it an indulgence. Normally, this will require both an
explanation for the delay and a demonstration that there is a substantial point to
be argued in the appeal which it would be unjust to prevent the applicant from
arguing.
Although, initially, there was the faintest suggestion that the February orders
of Needham J merged in some way in the orders later made in August 1988, this
suggestion cannot be sustained. Reference was made to the decision of the Court
in Smith v Tabain (1987) 10 NSWLR 562. That decision dealt with the quite
different circumstances of a case arising under s103 of the Supreme Court Act
1970 where it is ordered that a separate question be tried. See also now National
Employers' Mutual General Insurance Association Ltd v Manufacturers Mutual
Insurance Ltd and Ors, Court of Appeal, unreported, 21 June 1989; (1989)
NSWJB 128. There was no such order in the present case. Needham J simply
proceeded to deal with the matters which were before him. The February orders,
certainly numbers | to 4, were final orders. No leave was required to appeal from
them. They were not rendered interlocutory by the reference to the Master of the
severable issue of damages. The appellant had 28 days to appeal from the
February orders. That interval expired on 9 March 1988. Mr Galea's affidavit
discloses that his new solicitor gave him that advice when, eventually, he was
retained after the August orders. The advice he gave was correct. The case must
be approached upon the basis that when, at last, the notice of appeal was filed on
15 September 1988, although within time to challenge the August orders, it was
out of time to challenge the orders which had been made in February 1988.
Eventually, so much was acknowledged before this Court by counsel for the
appellant.
When, therefore, I turn to ask whether an explanation has been given for the
delay of six months, I say at once that I see none. It is true that, by his own
actions, the appellant became unrepresented in March 1988. But for the whole,
or most, of the 28 days during which the time to appeal was running after the
February orders, the appellant was represented. Indeed he was represented by
senior counsel with whom (as I have inferred) the prospect of appeal was
discussed. In the circumstances of the deliberate decision not to appeal and the
intervening rights of third parties which followed, no adequate explanation was
given which would warrant the extension of time to appeal against the February
orders.
The appellant's case lacks merit
In considering applications for extension of time, it is appropriate to take into
account the issue which the claimant wishes to argue and to make some
preliminary estimate of the claimant's prospects of success in the argument. If a
great injustice would be visited upon a party who has an otherwise strong case
for appeal, a court may be more inclined than in a weak or unmeritorious case to
consider favourably an application for extension of time. It is therefore
appropriate to notice the nature of the grounds which, although out of time, the
6 UNREPORTED JUDGMENTS
appellant wishes to bring in challenge to the February orders. A generalised
description of them can be found in the statement filed by the appellant in a
document offered by him in support of what was presented as an application for
"leave to appeal". This reads:
"The defendant/appellant argues that the Egg Industry Act, 1983 is not a law
for the peace, welfare and good government of New South Wales in that the said
Act is ultra vires the Constitutional Enactments of New South Wales as indicated
in the Imperial Laws Application Act (sic) 1969 No 30 2nd Schedule, Pt!
(Application Act). Specifically, that the Egg Industry Act is ultra vires the Magna
Carta (1297), Statute of Monopolies (1623-24), Petition of Right (1627) and Bill
of Rights (1688), in that the Eggs Industry Act 1983 is an undue infringement on
Mr Galea's fundamental rights to liberty and property. Further, that the New
South Wales Egg Corporation cannot support any compelling reasons for this
undue infringement upon Mr Galea's fundamental rights, nor can it show a
benefit or consideration flowing to the public. As such, the Act is against common
right and reason, an undue infringement of Constitutional rights and is void ab
initio."
The parties filed detailed written submissions in support of, and opposition to,
the substantive argument concerned with these issues.
Without purporting to deal at any length with the issues raised, (which were
not fully argued) it is sufficient for me to say that I do not believe that the
appellant would succeed in any them. The alleged inconsistency with Magna
Carta, even if proved as seems most unlikely, would not appear to invalidate a
valid law of the Parliament of New South Wales. Cf Chia Gee, Ah Kow, Chow
Chee and Ong Seet v Martin (1905) 3 CLR 649, 653; Re Cusack (1986) 66 ALR
93, 95 (HC). The reliance upon certain Imperial Acts requires consideration of s6
of the Imperial Acts Application Act 1969. This section preserves the imperial
enactments enumerated in the Second Schedule, Pt! of the Act, "except so far as
affected by any Imperial enactments or state Acts from time to time in force in
New South Wales" (emphasis added). This would therefore appear to envisage
affectation and modification of the continuing application of the enumerated
Imperial Acts by ordinary legislation enacted by the State Parliament. The Egg
Industry Act is one such Act. See Jago v The District Court of New South Wales,
unreported, High Court, 12 October 1989 per Toohey J p 52 and Gaudron J pp
65-66.
The appeal to the constitutional provision enabling Parliament to make laws
for "the peace, welfare and good government" of New South Wales would not
appear upon current authority binding upon this Court, to provide a fruitful
source of challenge to the validity of the Egg Industry Act. See Constitution Act
1902, s5. These words have been held to be not words of limitation but words
conferring legislative power in plenary terms. Union Steamship Co of Australia
Ltd v King (1988) 62 ALJR 645, 648 (HC); Building Construction Employees
and Builders' Labourers Federation of New South Wales v Minister for Industrial
Relations and Anor (1986) 7 NSWLR 372, 378 (CA). The contrary notion has
attracted some judicial and academic favour. See eg Dixon J in Broken Hill South
Limited (Public Officer) v The Commissioner of Taxation (NSW) (1937) 56 CLR
337, 371; ID Killey, "Peace, Order and Good Government: A Limitation on
Legislative Competence" (1989) 17 Melb Uni L Rev 24. Cf P A Joseph and GR
Walker "A Theory of Constitutional Change" (1987) 7 Oxford Jnl of L Studies
155 and editorial note (1987) 61 ALJ 53. However, any application to reconsider
the decision in BLF would now run into the more recent additional authority of
URJ GALEA v NEW SOUTH WALES EGG CORPORATION (Kirby P) 7
the High Court of Australia in King. It also confronts more than a century of
decisions in the Privy Council and in other courts of high authority. See eg
Attorney General for Saskatchewan v Canadian Pacific Railway Company and
Others [1953] AC 594. It is therefore not appropriate, where the appellant already
has the time difficulties to which I have referred, to permit him to argue this point
in this case.
Finally, although it is true that, in New Zealand, it has been suggested that
there may be some common law rights which go "so deep that even Parliament
cannot be accepted by the courts to have destroyed them', this doctrine has not
yet found favour in Australia. Cf L v M [1979] 2 NZLR 519; Brader v Ministry
of Transport [1981] 1 NZLR 73; New Zealand Drivers' Association v New
Zealand Road Carriers [1982] 1 NZLR 374, 390; Fraser v State Services
Commission [1984] 1 NZLR 116. Cf Joseph and Walker (above), 167f. In this
State, the suggestion was rejected in the BLF case. Although the issue is an
important one and may one day come up for reconsideration, the procedural
difficulties in which the appellant now finds himself make it inappropriate to offer
such reconsideration in this appeal.
No adequate explanation having been given for the failure to appeal within
time following the February orders and for the delay of six months which then
followed, the appellant should be refused leave to add to his notice of appeal,
although out of time, the grounds of appeal relating to the February orders. This
decision can be made more comfortably because, in the present state of authority,
it would appear that to exclude the appellant from arguing these additional
grounds causes no substantial injustice to him in the circumstances.
Challenge to the award of damages
As T have earlier said, the appellant appealed within time against the August
orders of Needham J. These ordered that. the amount of damages sustained by the
Corporation arising from the conversion of eggs by the appellant up to and
including 24 March 1988 be assessed at $1,064,982. Interest accrued thereon up
to an including 19 August 1988 was $64,774.20. Accordingly, judgment was
ordered to be entered in favour of the Corporation in the sum of $1,129,756.20.
These orders followed the report to his Honour of Master Gressier. This in turn
followed the order of reference made in the February orders.
The appellant's challenge to the orders of Needham J in respect of damages
was mounted as a challenge to the determination of that issue by Master Gressier.
It should perhaps be said that, when Needham J referred the assessment of the
damage which the Corporation had suffered to the Master, his Honour remarked:
"As the plaintiff is a non-profit organization and pays to the producers the
difference between its income from sales and its expenses, it might be thought
that it suffered no pecuniary damage from the failure of the defendant to deliver
eggs to it. However, this simple view is inconsistent with the decision of the High
Court in Butler v The Egg and Egg Pulp Marketing Board 114 CLR 185, where
it was held that the Board, operating under an Act similar in principle to the
present, was entitled to damages for the failure of a producer to deliver eggs to
it. The measure of damages was the difference between the price at which the
Board sold eggs and the sum paid to the producer. As requested, therefore, I will
refer the matter to the Master to assess damages."
Butler is a decision binding on this Court. It has been referred to, in this Court,
without any relevant criticism, in Inglis Electrix Pty Ltd v Healing (Sales) Pty
Ltd (1968) 69 SR (NSW) 311. That decision was affirmed by the High Court (see
(1968) 121 CLR 584) without any suggestion of criticism or need for
reconsideration. See eg ibid at 602.
8 UNREPORTED JUDGMENTS
No attempt was made by the appellant to distinguish Butler or to suggest that,
for any reason of principle or difference in the legislation, the decision did not lay
down the rule to be adopted by the Master and the Court in ascertaining the
Corporation's entitlement to the damages which flowed from the February orders.
Instead, the appellant mounted his attack on the August orders by reference to
the way in which the Master had received evidence and the way in which he had
applied the holding in Butler.
So far as the evidence is concerned, the complaint was that the Master had
admitted into evidence hearsay evidence as to the number of hens counted on
various occasions by inspectors other than Mr W B Shepherd, an officer of the
Corporation. The Master had also admitted into evidence hearsay evidence of
"inspectors" estimates of daily production" of eggs. It was urged that, because the
appellant was unrepresented before the Master and had no knowledge of the rules
of evidence, the Master ought to have refused to allow such hearsay evidence to
be admitted. He ought himself to have excluded it, as hearsay, out of the duty
traditionally accepted by courts to protect unrepresented litigants against
evidence which is unfair to them.
There are a number of answers to this and the like complaints made by the
appellant. First, although the appellant was unrepresented, the documentation
filed before the Master bears, as I have said, all of the hallmarks of informed
advice. Although it was said that the appellant was unsophisticated and
uneducated, the affidavit which he swore in those proceedings follows the normal
legal form. It purports to answer, paragraph by paragraph, the contentions of the
Corporation.
Secondly, the proceedings before the Master appear to have been conducted,
as might be anticipated, without undue formality. Necessarily the appellant was,
by the time the proceedings came to the Master, not unfamiliar with court
process. As noted in a number of the judgments concerning him, including that
of Needham J extracted above, he had engaged in vigorous public controversy
about the Corporation, its statute and his defiance of the Corporation. In these
circumstances I would not be inclined to infer that he was intimidated into silence
before Master Gressier so that he failed to bring to the Master's attention a real
matter of controversy concerning the estimates of the number of hens on his
premises. On the contrary, there was no questioning of Mr Shepherd nor any
attempt to contradict him on this score. Nor did the appellant seek to place
evidence which cast doubt upon his estimate and which was in admissible form,
before the Master.
Thirdly, whilst it is true that the evidence upon which Mr Shepherd based his
estimates was, in turn, drawn from hen counts conducted by inspectors other than
himself over a period of four years and whilst this evidence was hearsay, it was
admissible under the Evidence Act 1989 s14CE. The statement was made by a
qualified person derived from information made by other qualified persons in the
course of, and for the purposes of, the business of the Corporation. The evidence
was therefore admissible by law. The Corporation was entitled to have the
evidence received. Provision is made by sl4CI for the court to consider the
weight of evidence admitted under s14CE. But in the absence of any positive
evidence from the appellant to cast real doubt on the hen counts offered by Mr
Shepherd, I have no doubt that the Master was entitled to accept Mr Shepherd's
evidence because it was virtually unchallenged. No error is shown, in the
circumstances, in his having done so.
URJ GALEA v NEW SOUTH WALES EGG CORPORATION (Kirby P) 9
The appellant suggested that tax returns, tendered by him, should have alerted
the Master to enquire into the ownership of the hens counted by the Corporation's
inspectors, on the basis of which Mr Shepherd offered his aggregate estimate.
However, this argument is likewise without substance. The returns are scarcely
from an objective source, being produced by the appellant himself. In any case,
they do not disclose the number of hens he allegedly had. The modest income
revealed in them might be explained on several bases having nothing whatever
to do with a suggested lower hen tally.
The tender of fresh evidence in the appeal
To mount his challenge to the application of Butler, an attempt was made for
the appellant to place before this Court two documents which he had not tendered
before the Master. These were the Gilchrist Report on the Egg Marketing
Industry and a Review of the System of Egg Marketing in the State by a firm of
consultants, Acil Pty Limited. These documents were marked for identification.
However, their tender was rejected by the Court.
In the case of the Gilchrist Report, it antedated the hearing before the Master.
It could therefore, if relevant, have been tendered by the appellant in the
proceedings before the Master. Had the report been tendered, the Corporation
might have sought to meet it by evidence the issues of fact (if any) proved by it.
The attempted late tender in the appeal effectively denied them that opportunity.
Its admission would, therefore, involve a procedural unfairness to the
Corporation which it is the duty of this Court to prevent on appeal. Coulton v
Holcombe (1986) 162 CLR 1, 7-8. See also Nissho Iwai Australia Ltd v
Malaysian International Shipping Corporation (1988) 12 NSWLR 730, 745
(CA). The rejection of the document could be made more comfortably because,
in addition to the procedural unfairness asserted by the Corporation, it would
appear doubtful that the report was admissible in any event. Although certain
factual material was contained in it, that material was hearsay. It would not be
proved by the tender of the report. Facts were set out in the report only as a basis
of the expression of the author's opinions and the recommendations contained in
the report concerning the operations of the Corporation and the then organisation
of the egg marketing industry.
The report on the review of the system of egg marketing by Acil was likewise
rejected. That report came into existence in November 1988, ie after the
proceedings before the Master and the August orders made by Needham J. The
report was therefore not available to be tendered in the proceedings before Master
Gressier. Its admission into evidence in the appeal depends, accordingly, on
s75A(7) and s75A(9) of the Supreme Court Act 1970. In Radnedge v
Government Insurance Office of New South Wales (1987) 9 NSWLR 235, the
Court made it plain that the admission of new facts on appeal would only be
allowed on very special grounds. See also Binge v Bennett (1988) 13 NSWLR
578, 589. I do not consider that those very special grounds are established here.
The facts contained in the Acil report, as described, are not proved by that report.
Similarly, the opinions expressed could not touch the entitlement of the
Corporation to have its damages assessed in accordance with Butler. The tender
of the Acil report was therefore similarly rejected.
At the heart of the appellant's objections to the application of Butler was the
contention that the Corporation was limited to the recovery of the "real damage"
which it had sustained. Because the Corporation was losing money (as it was
claimed the Gilchrist and Acil reports would demonstrate) the suggestion was
made that the appellant actually did the Corporation a favour by not providing his
10 UNREPORTED JUDGMENTS
eggs to it as the law required. This was because, so it was claimed, the Gilchrist
and Acil reports would show the Corporation was obliged to sell eggs supplied
by producers at a loss. Therefore, no real "damage" was done to it by the actions
of the appellant and the other "rebel" egg producers. Upon the "retirement" of the
appellant as an egg producer, so the argument ran, the persons to benefit from
taking over the appellant's market outlets would have been other "rebels" or
interstate interests and not the Corporation. Therefore, without an increased
market share, the Corporation's egg surplus would have increased. Returns to all
producers would have fallen. There would therefore be a resultant loss to the
Corporation occasioned by the additional surplus.
These arguments are neither sustained by the evidence tendered before the
Master and properly before this Court nor admissible upon the assumptions on
which damage to the Corporation must by law be assessed. Those assumptions
include that the appellant did, as he was required, provide his eggs, and all of
them, to the Corporation. What the Corporation then did with the eggs was, by
law, entirely a matter for it. Assumptions about what other "rebel" egg producers
might have done are irrelevant. I see no error in the way in which the Master
approached the computation of the damage suffered by the Corporation in
accordance with Butler. Accordingly, the orders made by Needham J, as based
upon that assessment, must stand.
Effect of the repeal of the Act
The Egg Marketing Act 1983 was repealed by the Egg Industry (Repeal and
Deregulation) Act 1989. The latter Act commenced on 12 August 1989. The
Corporation, established by the 1983 Act, was dissolved upon the repeal of that
Act. A new Corporation of the same name is created by the 1989 Act. No express
provision was made in the 1989 Act for the survival of pending litigation brought
on behalf of the former Corporation. However, two provisions of the
Interpretation Act 1987 are relevant. By s53(2)(c) of that Act, if an Act alters the
constitution of a statutory body, the alteration does not affect any legal cr other
proceedings instituted by or against the body. Any legal proceedings that have
been commenced by that body as previously constituted may be continued by
that body, as newly constituted, (s53(2)(c)). It may be inferred that the
Corporation, newly created by the 1989 Act, has decided to continue the present
proceedings in which it appears as respondent to the appellant's appeal.
By s30 of the Interpretation Act, the repeal of an Act does not affect any
"right... obligation or liability acquired, accrued or incurred" under the [repealed]
Act or any legal proceeding or remedy in respect of any such "right, obligation,
liability or penalty" (30(1)(b) and s30(1)(d). Any such legal proceeding may be
continued, as if the Act had not been repealed. There is nothing in the 1989 Act
to exclude the operation of these provisions.
By virtue of such provisions, the orders made by Needham J are unaffected by
the repeal of the 1983 Act by the 1989 Act, which took effect on 12 August 1989.
No contrary submission was received from the appellant, when this issue was
raised by the Court.
Whether, in the events which have occurred, and the deregulation and
reorganization of the egg industry effected by the 1989 Act, it is still appropriate
for the Corporation to enforce the whole of the judgment entered against the
appellant is doubtless a matter for political and not legal decision. The appellant
disobeyed the law as it then stood. He did so publicly and defiantly. It was the
duty of the courts to uphold and enforce that law. Behind the appellant's
objection to the system of egg marketing then in force may have been some of
URJ GALEA v NEW SOUTH WALES EGG CORPORATION (Meagher JA) 11
the considerations which led to the Gilchrist and Acil inquiries, to the repeal of
the 1983 Act and the reorganisation of the industry as the 1989 Act now provides.
In these circumstances, it will be for the Corporation and, possibly, the Executive
Government to decide whether, and if so to what extent, the orders made in
pursuance of the former law should be enforced against the appellant. Apart from
calling to notice the entitlement of the Corporation to consider these matters, the
way it resolves them is not a matter upon which this Court should express an
opinion.
Orders
I would propose the following orders:
1. Motion for leave to appeal out of time against the orders of Needham J dated
9 February 1988, dismissed with costs; and
2. Appeal from the orders of Needham J of 19 August 1988 dismissed with
costs.
Samuels JA I agree with Kirby P.
Meagher JA I have had the opportunity of reading in draft the judgment of
Kirby P and agree with it. I should wish to add that I subscribe to the (perhaps
surprisingly conventional) views expressed by Kirby P in Building Construction
EmPloyees and Builders' Labourers Federation of New South Wales V Minister
of Industrial Relations (1986) 7 NSWLR 372, and repeated in his judgment in the
present case, in preference to those expressed by Street CJ in the same case.
1. Motion for leave to appeal out of time against the orders of Needham J
dated 9 February 1988, dismissed with costs; and
2. Appeal from the orders of Needham J of 19 August 1988 dismissed with
costs.
Counsel for Appellant: T Shulze
Solicitors for Appellant: Garry N Penhall
Counsel for Respondent: DA Cowdroy, DL Davies and MR Gracie
Solicitors for Respondent: Westgarth Middletons