RAYBOS AUSTRALIA PTY LTD v TECTRAN CORPORATION PTY LTD [1993] NSWCA 226
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RAYBOS AUSTRALIA PTY LTD v TECTRAN CORPORATION PTY LTD
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
KIRBY P, PRIESTLEY JA and GILES AJA
7 and 8 June 1993, 8 July 1993
[1993] NSWCA 226
APPEAL — reopening of appeal — whether complex but separate proceedings
should be heard separately or together — complaint that order of Court of Appeal
remitting that question to the Commercial Division was based upon error — error
alleged is misapprehension of primary judge's decision to determine the order of
proceedings first and in advance of all remaining interlocutory questions — all
parties agreed to that basis — Court of Appeal remits decision on order of
proceedings to primary judge — declines itself to determine such order as being
"premature" — held: (1) (by the Court):
COURTS and JUDGES — Court of Appeal — reconstitution — retirement of Judge
of Appeal — appointment of additional Judge of Appeal under s36 Supreme Court
Act — necessity to reconstitute Court.
The Court had jurisdiction to reopen its orders, such orders not having been entered.
Smith v New South Wales Bar Association [No 2] (1992) 66 ALJR 605 (HC); Autodesk
Inc v Dyason [No 2] (1993) 67 ALJR 270 (HC); Wentworth v Rogers and Ors [No 9]
(1987) 8 NSWLR 388 (CA) applied. Winrobe Pty Ltd and Anor v Sundin's Building Co
Pty Ltd [No 2], Court of Appeal, unreported, 24 December 1992 [1992] NSWJB 139
referred to;
(2) (Kirby P and Priestley JA; Giles AJA dissenting): In the circumstances of the
misapprehension of the primary judge's decision, agreed to at the time by the parties, the
Court should reopen its order and make the order which ought properly to have been
made, freed from that misapprehension;
(3) Such order was a decision by the Court of Appeal that the proceedings should be
heard together;
(4) But it would remain for the primary judge, for relevant and important reasons,
ultimately to reach a different conclusion in the light of the determination of outstanding
interlocutory questions and/or supervening developments.
Cotogno v Lamb (1985) 3 NSWLR 221 (CA) applied.
Supreme Court Act 1970, s36.
Kirby P The circumstances giving rise to this still further application to
theCourt in this much contested saga of litigation are set out fully in the reasons
of Priestley JA and of Giles AJA.
As the respective reasons of their Honours demonstrate there are strong
grounds for each of the opposing points of view.
The strength of the respondents' opposition to reopening
There is nothing at all in the second basis raised by Raybos Australia Pty Ltd
(Raybos) and Dr L Rajski for re opening the Court's orders of 24 November
1992. The suggestion that they were, or either of them was, denied procedural
fairness ("natural justice") in the manner in which O.5 was then made by the
Court is, quite frankly, impertinent. They had more than sufficient opportunity to
put their cases as they wished to do so before the Court as it was then constituted.
No other case in my experience has taken up so much time of this Court in
2 UNREPORTED JUDGMENTS
countless interlocutory proceedings. If matters were not made entirely clear in the
earlier proceedings, that is the failure of the parties, including Raybos and Dr
Rajski. The suggestion that it was because the Court declined to accord any of the
parties procedural fairness before it made its orders must be firmly rejected. In
this I agree with Priestley JA.
This brings me to the matter of difficulty upon which Priestley JA and Giles
AJA disagree. I acknowledge the force of the conclusion which Giles AJA has
reached. In favour of that conclusion are the following considerations:
* The interests of the administration of justice in the ordinary finality of court
orders, including where pronounced in interlocutory matters;
* The exceptional nature of the jurisdiction which is involved to reopen a
court's orders;
* The undesirability of allowing reopening applications to become a "back
door procedure" for reargument by disgruntled litigants of issues which they have
lost;
* The wide facility which exists anyway for the review of interlocutory orders
even when finally made;
* The admittedly final say of the primary judge concerning the ultimate
management and conduct of this large litigation;
* The proper relationship between this Court and the Division in which the
proceedings will ultimately be tried; and
* The relative importance or lack of importance of the suggested
misunderstanding of the basis upon which Rolfe J was proceeding which is said
to trigger the ground for the application to the Court now to reopen O.5.
An error has occurred which should be eliminated
As against these considerations, like Priestley JA (with whose reasons and
orders I concurred when the relevant judgment of this Court was published on 24
November 1992) I was not then aware, in proceeding to O.5, that the very basis
upon which Rolfe J was dealing with the issues then under appeal was that he
would first determine the order of hearing and, then only, deal with outstanding
interlocutory matters. This was the basis that all parties had agreed before him.
Upon that basis they had conducted their proceedings. In such circumstances,
when the issue was tendered to this Court, that fact ought to have been made
clear. For whatever reason, it was not. If it had been, it would have been
inappropriate for this Court to suggest that the determination by his Honour of
the order of hearing was "premature" for that was exactly what the parties had
agreed, had sought from the judge and had secured in the orders then challenged.
It does therefore appear that a mistake has occurred in the appreciation by this
Court of a consideration which was not without importance for the approach to
what the Court should do.
It was common ground in the present proceedings that the orders of this Court,
pronounced on 24 November 1992, had not been taken out. Likewise, it was not
disputed that the Court had the power to withdraw its orders and to substitute
those which it ought to have made, eliminating the above mistake. See Smith v
New South Wales Bar Association [No 2] (1992) 66 ALJR 605 (HC); Autodesk
Inc v Dyason [No 2] (1993) 67 ALJR 270 (HC). From time to time this Court has
considered such applications but refused to reopen its orders. See eg Wentworth
v Rogers and Ors [No 9] (1987) 8 NSWLR 388 (CA). On other occasions, where
the Court is convinced that it has made a mistake, the earlier orders have been
withdrawn, the matter re committed for argument and fresh consideration and
URJRAYBOS AUSTRALIA PTY LTD v TECTRAN CORPORATION PTY LTD (Kirby P) 3
new orders then pronounced. This is the course which the Court took in Winrobe
Pty Ltd and Anor v Sundin's Building Co Pty Ltd [No 2], unreported, 24
December 1992; [1992] NSWJB 139.
Where a mistake is plainly demonstrated in a matter important to the Court's
orders, which can be corrected before those orders are entered and without
substantial injustice to other parties, our system's commitment to justice
according to law and to intellectual honesty suggests that the matter should be
reopened, the flawed orders withdrawn and fresh orders made free from which
the mistake which is eradicated. Remediability should not be the sole or even
governing criterion in such an application to this Court. Otherwise the Court
would always refuse to repair errors clearly demonstrated and readily
corrected,because the facility of appeal by special leave to the High Court
provides a means of remedy.
The result of this course may sometimes be the making of the same orders for
different reasons (although that eventuality might also be a ground for ultimately
refusing to reopen the orders earlier pronounced once that result seems clear).
But at least then the mistake will have been openly corrected. The parties and
members of the community who may be concerned will be reassured as to the
integrity of the process. The justice of the system will be vindicated.
The ultimate control of the proceedings remains in the Division The ultimate
difference between the view adopted by Priestley JA and that favoured by Giles
AJA may be slight, in strictly practical terms. Priestley JA has taken pains to
demonstrate that the order of this Court concerning the conduct of the hearing
and the order of proceedings will itself be interlocutory. It will have to bend to
any supervening events or unforeseen complications with may require, or
suggest, a different course (and different orders) on the part of the primary judge
having the responsibility of managing this complex litigation. Giles AJA on the
other hand would reserve the matter to that judge and send the proceedings back
to be considered afresh including in the light of any new developments.
The question remains for me what order should now be made, a
misapprehension on the part of this Court having been demonstrated. In my view
the proper approach is for the Court to return to the situation it was in when the
first hearing of the appeal from Rolfe J's orders was conducted. Putting itself
back in the situation which then existed, it should add to the ingredients of its
decision making the clear understanding of the parties (and consequent approach
of his Honour) that the order of proceedings should then be affirmatively and first
decided. Adding that ingredient to the considerations which were before the
Court when it proceeded to its orders of 24 November 1992, I must say that it
would have led me then, as it leads me now, to decide that the 1980 proceedings
should be heard together with the 1985 proceedings. It is, therefore, appropriate
to state that conclusion. The Court should not to hold back from doing so for the
erroneous reason previously stated which has now been eliminated on the
reopening of the orders. I would take this course endorsing fully the statement of
Priestley JA which reserves to the judge in the Division having control of the
ultimate hearings the right to reach a different view should the remaining
interlocutory steps (or some future important and presently unexpected
development) supervene to require a different course.
I agree with the order which Priestley JA has proposed in relation to the costs
of these further proceedings. In a sense, they were a continuation of, and an
incident to, the proceedings earlier concluded in November 1992. It is therefore
appropriate that the additional costs should run with the costs of the ultimate
4 UNREPORTED JUDGMENTS
proceedings. But because Raybos and Dr Rajski have, upon one of the grounds
argued, been shown to have been justified in bringing the application for
reopening and have succeeded in it against the opposition of the respondents, the
costs should be their costs in those proceedings.
Two procedural points are noted
Before parting with this case it is appropriate to record two points. The first is
that Hope AJA retired after the earlier hearing and before this motion could be
heard. He was thus not available to participate in this application for reopening
of the Court's earlier orders. Raybos and Dr Rajski urged the Court (and
apparently the Attorney General) that his Honour should be reappointed to the
Court. This did not occur. It is not disclosed whether his Honour would have been
willing to return to judicial life to participate in these proceedings. Of necessity,
the Court had to be reconstituted. See Cotogno v Lamb (1985) 3 NSWLR 221
(CA), 223. No party contested this necessity. In accordance with the Supreme
Court Act 1970, s36 Giles J was appointed an Additional Judge of Appeal for the
proceedings.
Secondly, Dr Rajski (but no other party) objected to Giles J's participation in
the proceedings on the grounds of imputed bias. For reasons publicly stated by
his Honour, the objection and imputation were rejected. The hearing then
continued before the Court as now constituted.
The reconstitution of the Court and substitution of Giles J created no ultimate
difficulty. The question whether an error or omission of the kind which would
warrant reopening of the case is established depends not merely on the subjective
cogitations and recollections of the judge(s) who made the order complained of
but depends ultimately upon the Court's objective assessment of the application.
So much is inherent in the requirement of the manifest, publicly demonstrated
integrity of the processes of the Court which underlies the approach to this
application which I ultimately prefer.
Orders
I therefore agree in the orders proposed by Priestley JA.
Priestley JA On 24 November 1992 the court upheld an appeal against
interlocutory orders made by Rolfe J. Raybos and Dr Rajski have applied to
reopen O.5 then made, and seek that the court make a different order.
The reasons for the court's orders of 24 November 1992 were prepared by me.
Kirby P and Hope AJA agreed with them. Rather than recapitulate those reasons
in dealing with the present application, I will simply treat what I am now doing
as a continuation of what I previously wrote.
Raybos and Dr Rajski rely on what are in substance two submissions in
support of their request that O.5 be reopened.
Before dealing with these I need to spell out the basis on which O.5 was made.
The main question decided in upholding the appeal against Rolfe J's
interlocutory order concerning the order of hearing of the various cases was that,
on the materials before him, his discretion had miscarried. My view was that on
the materials before Rolfe J it would be wrong to come to any other conclusion
than that 1980P and 1985P should be heard together. Although I would have
thought that was clear from my reasons, I was not explicit about it because I also
had in mind, as a result of the frequent references to them in the course of
argument before us, that there were a number of matters, outside the materials
upon which Rolfe I was acting, which might be relevant to the order of hearing.
UFRAYBOS AUSTRALIA PTY LTD v TECTRAN CORPORATION PTY LTD (Priestley JA) 5
Thus, when, having reached the position that, in my opinion, the discretion
exercised by the trial judge had miscarried and his consequential order should
therefore be set aside, the question arose whether this court should proceed to
exercise the discretion or should send the matter back to first instance for that to
be done. Because it seemed to me that matters not taken into account by Rolfe
J could be relevant to the further exercise of the discretion and since those matters
were only fragmentarily before this court, I felt it better that the question should
- go back to a first instance judge to decide, upon whatever state the evidence
then assumed, what order should be made. It seemed to me relatively obvious, in
the light of this court's decision, that unless any further material of a very
persuasive kind then emerged the first instance judge would think discretion
should so be exercised that 1980P would not be heard before 1985P.
The first basis on which Raybos and Dr Rajski ask that O.5 be reopened is that
this court should itself have dealt with the re exercise of discretion in regard to
O.5, on the same materials and on the same basis acted on by Rolfe J. It was said
that it was common ground before Rolfe J that he should act on the basis that he
did. He had indicated on 10 October 1991 that he would first determine the order
of hearing and in the light of his conclusion about that then deal with outstanding
interlocutory matters. Raybos and Dr Rajski submitted that all parties acquiesced
in that approach and thereafter conducted their proceedings on that footing.
Similarly, it was submitted, the appeal was conducted by them on the same basis.
They submitted also that there was no sign in the way their opponents conducted
the appeal that they took any different approach.
My first comment about the approach said to have been taken by Rolfe J to the
decision of the order of hearing of the various proceedings, is that although it was
not the only one available in the circumstances, it was, with respect a sensible
one. Various approaches were possible and it was necessary that one be chosen
to the exclusion of others.
Unfortunately however, in the course of the many matters argued in the appeal,
me fact that this approach was explicitly made known to the parties by Rolfe J
before the substantive hearing of the question of the order of proceedings got
under way, was never made clear to the court. I understand that the parties all
agree on this.
Although unfortunate in the result, what happened is understandable. The
approach taken by Rolfe J is clear enough when the observations he made on 10
October 1991 are looked at, particularly if the reader is conscious of the present
point. It would be natural for the parties when arguing the case in this court,
themselves inevitably having in mind the basis upon which Rolfe J acted, to
assume, without necessarily giving any particular thought to the matter, that this
court likewise fully understood the position. It is because of this, I assume, that
the court's attention was not explicitly drawn to the position; the focus of
attention was upon (i) the reasons given by Rolfe J for his conclusion, (ii) what
took place in the substantive argument before him, and (iii) whether his orders
should be set aside on appeal.
Much less attention was given to the question which would arise if the appeal
were upheld, namely would this court or a first instance court then decide how
the discretion should be exercised. Had I appreciated the relevance to this latter
question of the approach adopted by Rolfe J, I would when dealing with that
latter question towards the end of my reasons, have mentioned the approach and
taken it into account in reasoning towards my conclusion on that question.
6 UNREPORTED JUDGMENTS
The submission of Raybos and Dr Rajski on this aspect of the reopening
application, in one of its forms, went as far as contending that because of the way
the matter was dealt with before Rolfe J, both their opponents and this court were
bound to approach the question of which court should reexercise the discretion
upon the same basis. I do not think this is right. My view, now that I understand
more fully the basis upon which the case was conducted before Rolfe J, and have
reviewed the way it was conducted in this court, is that it would have been open
to this court to consider which court should re exercise the discretion on the basis
upon which Rolfe J had dealt with it. I do not think it was bound to do so.
I will deal with the consequences of my view on this point after mentioning the
second main head of the submissions made by Raybos and Dr Rajski supporting
their request that O.5 be reopened.
This submission was that something I had said in my reasons (at 40) showed
that I had acted, at least in part, in arriving at my conclusion, on a proposition in
regard to which Raybos and Dr Rajski had not been heard, and that they were
denied natural justice as a result. What I said was that various matters led me to
think it was premature to decide that the hearing of 1980P must precede that of
1985P. The submission was that the count had never indicated to the parties in the
course of argument that the notion of prematurity might play a part in the court's
decision.
I do not think the submission of denial of natural justice has any substance.
The question whether Rolfe J's orders should be set aside was considered entirely
on the basis of the materials before him, as was emphasised at various stages in
that part of my reasons dealing with that main question in the appeal.
It was when I was considering which court would be better fitted to deal with
the further exercise of discretion that I took into account the existence of further
matters which seemed to me to be of sufficient possible relevance to that further
exercise of discretion as to make it undesirable for this court, in incomplete
possession of the facts concerning those extra matters, to embark on the re
exercise.
The matters that I mentioned in this respect were all matters which had been
mentioned to a greater or less degree in the course of argument in the appeal. All
parties had had a full opportunity to say anything they wanted about those
matters. The word "premature" was simply a convenient label for the conclusion
L arrived at (which was not relevant to what I was regarding as the first and main
issue in the appeal) after considering the matters not considered by Rolfe J in
deciding what I thought should happen about the further disposition of the case.
Although I do not think there is any substance in the denial of natural justice
submission, the first submission made by Raybos and Dr Rajski carries
considerable weight with me. With the opportunity I have had of reflecting on the
matter with the benefit of a full understanding of the basis upon which Rolfe J
dealt with it, I am now of the opinion that the court should have concluded that
it should re exercise the discretion in question.
That does not necessarily mean that O.5 should be reopened. The law places
a high value on the desirability of finality in decision making in litigation. The
ordinary rule of courts must be that once a decision is made, then it is final.
Reinforcing that prima facie position in the present case is the fact that the
application to reopen O.5 was not made until after Rolfe J had sat to re exercise
the discretion in consequence of his earlier order having been set aside. In the
event, he did not re exercise the discretion ut, after considering at length a
UFRAYBOS AUSTRALIA PTY LTD v TECTRAN CORPORATION PTY LTD (Priestley JA) 7
submission by Raybos and Dr Rajski that he should not sit to hear the case,
thought himself bound, for reasons which he explained with particularity, to retire
from further hearing of the case.
Notwithstanding these considerations my opinion is that O.5 should be
reopened. Mr Heydon QC in the course of his submissions properly drew the
attention of the court to R9 of Pt40 of the Supreme Court Rules which embodies
the wide range of powers the court has in regard to the setting aside or variation
of judgments both before and after the entry of judgment. These powers are
particularly available in regard to interlocutory orders.
Although Mason CJ was in dissent in Autodesk Inc v Dyason (No 2) (1993)
67 ALJR 270, I think the approach in principle that he took to the question of
reopening in that case (at 271 lh col) was common to all the Judges in the court,
the difference between them being the application of the principles to the facts in
the case. The safeguards mentioned by Mason CJ necessary to prevent the power
of the court being used by unsuccessful litigants to re argue their cases should be
observed by courts in regard both to final and interlocutory orders, but clearly
there is somewhat greater scope for flexibility in regard to interlocutory orders.
I should note that in treating the question of the order of hearing of the various
relevant proceedings as an interlocutory matter I must also take into account a
matter I had in mind in considering Rolfe J's decision about the order of hearing;
that is, that although his order was interlocutory and thus prima facie in a class
of matter very desirable to leave to the decision of a trial judge, nevertheless this
particular interlocutory matter is one of particular importance to the conduct of
this complex litigation. What was to be decided involved much more than an
ordinary practice point. This was one reason making me less reluctant than I
otherwise would have been to conclude that Rolfe J's orders ought to be set aside.
Notwithstanding that, what has happened in the present case, as I have described
it, leads me to think that the proper administration of justice will be better served
by reopening O.5 and concluding (as I have already indicated) that this court
should decide the order of hearing debated before Rolfe J.
There was some suggestion in the most recent argument before us that if this
conclusion were reached, then an opportunity should be given to the parties to put
any further materials before the court they wished and then for further
submissions to be entertained by the court. I think the court indicated in the
course of argument that it would not entertain such a course; but whether or not
that was made sufficiently clear, on the basis that I have explained for reaching
my opinion, there should not be further evidence or submissions. My view is that
O.5 should be reopened because the court in making it did not have sufficiently
in mind the approach adopted by Rolfe J in deciding what he did, which was a
very material matter in regard to the question decided. In those circumstances I
think it follows that the reopening of O.5 should be limited to considering what
to do on the basis of the materials before it on 24 November 1992. The parties
had then put before the court all the materials that they wished the court to
consider. The interest of finality in litigation should presently be observed at least
to the extent that reconsideration of O.5 should be limited as I have indicated.
Having reached this point, it only remains for me to say that that part of my
reasons of 24 November 1992 which led to my concluding that the appeal against
Rolfe J's orders should be upheld in my opinion leads, on the material before him
and on the basis on which he acted, to the further conclusion that 1982P should
not heard before 1985P. The next step does not necessarily follow from what I
previously said but is one that I think the court should take in the exercise of
8 UNREPORTED JUDGMENTS
discretion, again on the basis of the materials before Rolfe J and the approach he
took, and that is that 1980P and 1985P should be heard together.
It may be helpful if I add that a decision by this court to that effect is itself
interlocutory. When the next first instance judge to handle the various
proceedings comes to do what it is necessary to do before 1980P and 1985P come
to trial, that judge may have to deal with those matters mentioned in my earlier
reasons which were put to one side by Rolfe I in adopting his basis for deciding
the question. The judge may also encounter other possibly relevant matters. This
court's present decision cannot preclude that judge from giving those matters
such consideration as may be merited. It would seem to me however that unless
something quite unexpected or dramatically decisive then emerges, it would not
be appropriate for the order that 1980P and 1985P be heard together to be
disturbed. That order will have been made on the footing of the sensible basis
used by Rolfe J in deciding the question which I have earlier described, a basis
which now, in my opinion, should be adopted by this court. The first instance
judge will no doubt be more than usually alert to see that any efforts that may be
made to alter the interlocutory order are not really what Mason CJ described in
Autodesk (271 rh col) as back door methods by unsuccessful litigants seeking to
re argue their case.
So far as I can see the reasoning of the court concerning costs orders up to 8
April 1993 is not affected by the result I favour in the present application. I think
the appropriate order on the reopening application is that the costs of Raybos and
Dr Rajski should be their costs in the proceedings ordered to be heard together.
Orders.
The orders I propose therefore are:
1. In lieu of O.5 made on 24 November 1992, order that proceedings number
14716/85 be heard with proceedings number 16938/80.
2. The costs of Raybos and Dr Rajski on the application to reopen O.5 are to
be their costs in proceedings Nos 14716/85 and 16938/80.
Giles AJA On 24 November 1992 the court delivered its judgment and made
orders in this appeal. I will use the abbreviations found in, and will assume
familiarity with, the reasons then given. Raybos and Dr Rajski applied to have
the judgment "reopened" so far as it relates to O.5 then made, and for a different
order in place of O.5. The court as originally constituted comprised Kirby P,
Priestley JA and Hope AJA. Hope AJA was no longer available as his Honour's
commission had expired, and I was nominated to act as an additional Judge of
Appeal for the purposes of the appeal.
Rolfe J heard a motion concerned with the hearing together, or order of
hearing, of proceedings 1980P, 1985P and 1986P. His Honour ordered that 1980P
be heard prior to 1985P and 1986P. In the judgment delivered on 24 November
1992 it was held that his Honour's discretion had miscarried, the order was set
aside, and by O.5 the proceedings were returned to the Commercial Division for
reconsideration of the motion. The orders of this court have not been entered.
In the present application it was not sought to reopen the judgment so far as
it was held that his Honour's discretion had miscarried and his order should be
set aside. In those respects the judgment, and the reasoning on which it was
based, were not in question. The application was directed to having this court
decide whether the proceedings should be heard together or in a particular order,
rather than return the motion to the Commercial Division for reconsideration of
that matter.
URRAYBOS AUSTRALIA PTY LTD v TECTRAN CORPORATION PTY LTD (Giles AJA) 9
There is power to review the judgment delivered on 24 November 1992, either
under the general law or pursuant to Pt40 R9 of the Rules. The power is
discretionary, and must be exercised having regard to the public interest in
maintaining the finality of litigation. The occasions on which it may be exercised
include, but are not confined to, where it is shown that the court has proceeded
on a misapprehension as to the facts or the law not attributable solely to the
neglect or default of the applicant, or that by accident and without fault on the
applicant's part the applicant has not been heard. But the jurisdiction is
exceptional, and the power is not to be exercised so that an unsuccessful
applicant can reargue the case, or because the applicant did not present the
argument as fully or as well as it might have been put. Further, since the
jurisdiction is founded on prevention of injustice, it must appear that there will
be relevant injustice otherwise not remediable if the power is not exercised. See
Smith v New South Wales Bar Association (No 2) (1992) 66 ALJR 605, Autodesk
Inc v Dyason (No 2) (1993) 67 ALJR 270 and cases referred to therein.
The ground for the application was that the decision to return the proceedings
to the Commercial Division for reconsideration of the motion had been made on
an erroneous basis, and had been so made without a proper opportunity to be
heard in relation to O.5. The argument was as follows. As appeared from reasons
given by Rolfe J on 10 October 1991, it was common to the parties that the first
of the many interlocutory matters in the proceedings to be dealt with would be
the order of hearing. The motion was heard by Rolfe J on that basis. On appeal,
nothing was said to this court to impugn that basis, although the court was not
informed of it. None of the parties submitted on appeal that it would be premature
to determine the motion until other interlocutory matters had been dealt with.
When Priestley JA, with whom Kirby P and Hope AJA agreed, gave as the or a
substantial reason for returning the proceedings to the Commercial Division that
it would be premature to determine the motion until after some other
interlocutory matters had been dealt with, the decision which resulted in O.5 was
arrived at on a basis contrary to that on which the parties had argued the motion
and the appeal. Hence the judgment should be reopened in that respect.
It should be observed that the argument, if accepted, would lead only to review
of O.5. Upon review, the same order might be made, and it would not follow from
acceptance of the argument that this court would decide whether the proceedings
should be heard together or in a particular order. Accordingly, in enquiring into
relevant injustice otherwise not remediable it is necessary to remember that the
question is not what order should be made on the original motion, but by whom
that should be decided.
The argument summarised above rather overstates the position. Although
Rolfe J indicated on 10 October 1991 that he proposed to hear the motion
concerning the order of hearing, and thereafter hear the interlocutory matters in
such proceeding or proceedings as were ordered to be heard, that did not exclude
that there might be outstanding, or to come, applications the determination of
which was relevant to the motion. His Honour so approached the motion in what
he said concerning amendment of 1980P to 1980P2, and there was also reference
to a copyright amendment. That the issues in the proceedings be known, so far
as possible, before determining whether they should be heard together or in a
particular order would ordinarily go without saying. The questions of amendment
of 1980P to 1980P2 and a copyright amendment were before this court as matters
relevant to whether the discretion of Rolfe J had miscarried, and when it was
expressly raised whether, in the event that this court decided that it had, the
10 UNREPORTED JUDGMENTS
motion should be returned to the Commercial Division for reconsideration or
determined here, it was open to the parties to address the significance of the
questions to that matter. It appears that they did not do so, but that the present
opponents acknowledged that the motion would go back to a single judge or that
it was open for that to be done.
In those circumstances, I do not think that it can be said that the decision which
resulted in O.5 involved such departure from a common basis adopted by the
parties as to warrant reopening the judgment in that respect. Certainly it did not
excite immediate complaint by any of the parties that this court had proceeded
under a misapprehension whereby there had not been a proper opportunity to be
heard in relation to O.5. The remitted motion came before Rolfe J in March 1993,
his Honour was asked by Raybos and Dr Rajski to disqualify himself, and on 22
March 1993 he did so. This application was not brought until after his Honour's
reasons delivered on 22 March 1993 had recorded that his Honour had raised
with the parties what the reasons delivered on 24 November 1992 had said about
prematurity, and had elicited a consensus that no submission had been made to
this court that the determination of the motion was premature.
As I read the judgment delivered on 24 November 1992, the reference to
prematurity simply drew attention to matters warranting consideration in
connection with the re exercise of discretion. While recognising that the litigious
odyssey generated by the proceedings is by no means ordinary, nonetheless it
seems to me that the need to know the issues in the proceedings, so far as
possible, before deciding whether the proceedings should be heard together or in
a particular order, is compelling. The course originally proposed by Rolfe J was
certainly an available course, but its basis was undermined by the debate which
arose over amendments. As matters now stand, the questions of amendment of
1980P to 1980P2 and the copyright amendment are there. They will not go away,
they must be determined, and they are best determined before or as part of a
consideration of the order of hearing of the proceedings.
It must then be asked whether it is a proper approach to case management and
a proper use of judicial resources to have those questions and the question of the
order of hearing of the proceedings heard and determined by a single judge,
possibly with an appeal to this court, or by this court in the first instance. In my
opinion the answer must be that the questions should be heard and determined by
a single judge. While this court, having decided that the discretion of a single
judge miscarried, can and sometimes does go on to decide the matter for itself,
here a new area of disputation can be foreseen where amendments are formulated
and arguments marshalled. For all that is known, further facts will be put forward
said to bear upon the questions of amendment. It may be that there will be an
appeal from the decision of the single judge who hears the questions of
amendment and reconsiders the motion heard by Rolfe J, but the issues will be
refined and any necessary facts found. Raybos and Dr Rajski will not lose any
rights by reason of adherence to O.5, since they will be able to put before the
judge reconsidering the motion all that they have put or could put before this
court with a view to obtaining the joint hearing or order of hearing which they
desire, and will have the normal appellate rights if they do not obtain it.
For these reasons, therefore, I do not think a case has been made out for
reopening the judgment delivered on 24 November 1992. The jurisdiction being
founded on injustice otherwise not remediable, the requisite exceptional
circumstances have not been shown to exist. On the contrary, proper principles
URRAYBOS AUSTRALIA PTY LTD v TECTRAN CORPORATION PTY LTD (Giles AJA) 11
of case management and use of judicial resources call for O.5 to be maintained.
In my opinion the application should be dismissed.
1. In lieu of O.5 made on 24 November 1992, order that proceedings
5 number 14716/85 be heard with proceedings number 16938/80; and
2. The costs of Raybos Australia Pty Ltd and Dr L Rajski on the
application to reopen O.5 are to be their costs in proceedings numbers
14716/85 and 16938/80.
10 Counsel for Ist Appellant (Raybos): J Basten QC,
Instructed by: Craddock Murray Neumann
The 2nd Appellant (Dr Rajski) appeared in person
15 Instructed by: Craddock Murray Neumann
Counsel for 1 to 8 and 12 and 13 Respondents: RJ Bainton QC / M Bozic
Instructed by (1 to 8): Blake Dawson Waldron
20 Instructed by (12 to 13): Murphy and Moloney
Counsel for 9 to 11 Respondents: JD Heydon QC / RJ Powell
Instructed by: Minter Ellison