LIBERTY INVESTMENTS PTY LTD v SAKATIK PTY LTD [1996] NSWCA 326
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LIBERTY INVESTMENTS PTY LTD v SAKATIK PTY LTD
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
MAHONEY ACJ, PRIESTLEY AP and BEAZLEY JA
30 August 1996, 30 August 1996
[1996] NSWCA 326
PRACTICE AND PROCEDURE — CONTRACT — LANDLORD AND TENANT
— GUARANTEES — COSTS
SUPREME COURT (NSW) PRACTICE AND PROCEDURE — ability of appellate
court to overturn trial judge's findings of fact relating to credibility — whether trial
judge had sufficiently disclosed reasons — trial judge had to decide the substance of
conversations between plaintiff and second defendant — plaintiff's claim dismissed.
CONTRACT — frustration — agreement for commercial lease.
LANDLORD AND TENANT — agreement by deed for commercial lease of premises
— outgoing tenant demolishes internal rooms — repudiation of agreement by
defendant — claim that rooms were fundamental to agreement and were to be part
of leased premises — inability of plaintiff to give vacant possession with rooms intact
— premises subsequently leased at a lesser rental.
GUARANTEES — second and third defendants were directors of the first defendant
— claim based on guarantees for the shortfall in rent.
COSTS — indemnity costs — whether Court of Appeal should exercise discretionary
power as distinct from powers under the rules.
Appeal from Robson DCAJ. Held: (Priestley AP with Mahoney ACJ and Beazley JA
agreeing) -
1. On the question of whether trial judge's findings of fact on credibility of witnesses
should be overturned:
(a) The trial judge had adequate materials before him and it was appropriate for him to
come to the conclusions he made, therefore the attack upon judge's factual findings must
fail. Abalos v Australian Postal Commission (1990) 171 CLR 167: Devries v Australian
National Railways Commission (1992-1993) 177 CLR 472, applied.
(b) (per Mahoney ACJ) The trial judge should be seen as doing no more than preferring
the evidence of one witness to another for the purposes of the case. Smith v The New
South Wales Bar Association (1992) 176 CLR 256, considered.
2. On the sufficiency of the trial judge's reasons and failing to take into account certain
exhibits:
(a) The trial judge complied with the obligation to adequately explain and make his
reasons for the decision clear. There is no difficulty in following his reasons. Soulemezis
v Dudley (Holdings) Pty Ltd (1987) 10 NSWLR 247 considered.
(b) (per Mahoney ACJ) In relation to a trial judge giving reasons, the relevant law is
established by Pettit v Dunkley [1971] 1 NSWLR 376, applied, and it is clear from what
the trial judge did that sufficient reasons were given and accordingly there was no error of
law.
3. On the question of whether the doctrine of frustration applied to the agreement.
(a) The circumstances in which the doctrine will apply are varied and whether the
doctrine applies, ultimately becomes a question of fact. Different categories also exist and
2 UNREPORTED JUDGMENTS
one particular category is, if a particular thing essential to the performance of the contract
no longer becomes available, then the contract will be frustrated. Bearing in mind the trial
judge's findings and the inability of the plaintiff to offer the fittings as a part of the
premises, then it would be sound to say, in light of these facts, that the doctrine of
frustration applied and first defendant was no longer bound by the agreement.
(b) (per Mahoney ACJ) Regard must be had to the commercial basis of the case, which
was known to all the relevant parties. It is proper to infer from the evidence, that the
presence of the fit,tings was not merely an incidental matter, but was one vital to the
transaction. It is proper to find that within the law of frustration, the commercial purpose
of the transaction was defeated.
4. Indemnity costs. The case was not one in which the Court of Appeal considered it
appropriate to exercise its discretionary powers and to make an order for indemnity costs.
ORDERS
Appeal dismissed with costs
Priestley JA
This is an appeal from judgments of Robson DCAJ delivered on 8 December
1992 by which he dismissed the claim of the plaintiff, Liberty Investments Pty
Ltd, against three defendants. The plaintiffs claim was that: by a deed of 21 May
1984 it had agreed with the first defendant to lease and the first defendant had
agreed to accept the lease of premises at 63 Marigold Street, Revesby, at a rent
and on terms set out in the deed; it was a term of the deed that the first defendant
would enter into the lease upon the plaintiff obtaining vacant possession of the
premises within a Period of eleven weeks from the date of the deed; it had
obtained vacant possession of the property within the period; had notified the first
defendant of that; and had submitted lease documents for execution by the first
defendant.
The claim proceeded that: the first defendant refused to execute the lease or
take possession of the premises; the first defendant repudiated the agreement; the
plaintiff accepted the repudiation and subsequently leased the premises at a lesser
rent.
The plaintiff claimed from the three defendants the shortfall in the rent together
with certain other minor items and also interest.
The first defendant was a company called Sakatik Pty Ltd. The second and
third defendants were directors of that company and had become parties to the
deed of 21 May 1984 as guarantors. The claim against them was based on the
guarantees.
It was common ground that the deed of 21 May 1984 had been duly made. It
was also common ground that the first defendant had never taken possession of
the premises or executed the lease.
The defence of the three defendants depended principally on what the premises
to be leased by the first defendant were to consist of. The premises as they were
on 21 May 1984 were factory premises which included a coolroom and a food
preparation room, both necessary and suitable for the first defendant's business.
At the date when the plaintiff claimed the first defendant was obliged to take
possession of the premises pursuant to the agreement for lease, these rooms had
been removed. The defendants claimed that it was fundamental to the agreement
that these rooms be part of the leased premises. In various forms they claimed
that the inability of the plaintiff to give possession of the premises as promised
entitled the first defendant to treat the agreement for lease as at an end.
The plaintiff tried to meet the defendants' position by saying that its director,
Mr Tringas, who was treated at the trial as the person with authority to act for the
plaintiff in the transaction, had at the time of the making of the agreement of 21
URJ LIBERTY INVESTMENTS PTY LTD v SAKATIK PTY LTD (Priestley JA) 3
May 1984 expressly told the second defendant, Mr Van Dyke, who was acting on
behalf of the first defendant, that the two rooms were going to be removed before
the term of the proposed lease began.
Before the trial Judge, Mr Tringas gave evidence to this effect. Mr Van Dyke's
evidence was quite different. The background to it was that when he was
negotiating with Mr Tringas, the business Mr Van Dyke was connected with was
in premises at Hillsdale where the lease was to expire at the end of the year and
where any new lease would be at an increased rental. He and the first defendant
were interested in obtaining more suitable, in the sense of location, and less
expensive premises.
I think it will be useful to set out in full Mr Van Dyke's evidence in chief. It
is brief. It deals with the issue raised by Mr Tringas about the two rooms and it
conveniently brings together a number of matters helpful for understanding the
case and its background:
"Q. What is your present occupation?
A. Iam a manager.
Q. What is it you want to say about the matters?
A. I was managing director of a company called Tuck Trucks and that
company had small mobile canteens, trucks going to various locations like offices
and to provide lunches and so on. I was aware that another company called Kwik
Snax was in serious financial trouble and was in receivership. I became aware
that the lease, the preparation of the lease by Kwik Snax, that they were on a
seven days' notice and the lease my company had, Tuck Trucks, was ten months'
lease and it was on a contemporary situation because we were looking around for
a cheaper premises and a more central location. So, I approached the landlord of
the property that was leased by Kwik Snax at 63 Marigold Street, Revesby, and
the landlord appeared to be Mr Tringas. I rang Mr Tringas, told him who I was,
and I was interested in the property at Marigold Street, Revesby, and whether I
could come down to see him. So, we made an appointment and I had my first
meeting with Mr Tringas. I told Mr Tringas that my name was Albert Van Dyke
and I was managing director of Tuck Trucks, and that we were looking for
premises that were suitable for our type of business. I asked Mr Tringas whether
the present tenant was on a seven days' notice and he said Yes, they never sign
the lease. The lease was never signed by the manager or the owner of Kwik Snax.
And I said, 'Is the situation because they are in financial trouble that they would
not sign the lease because the company is in receivership and that needs the
approval of the receivers?' and then I asked him that if it was possible for us to
lease the property. And I told them the requirements that we had, I told them that
we needed a property where we could have a room that had already Council
approved for food preparation and had a coolroom and that our costs were very
little because we more or less pick up, everything we move over, and just keeping
on trading, which is of course very important. And Mr Tringas said that, he said,
'The preparation room there and a coolroom are permanent fixtures, they can't
take it, they will definitely be there'. So then I asked, I offered Mr Tringas to pay
him $40,000 a year in rent and he said, 'I don't know what to do. I better go and
see my solicitor about this.' And then after that I asked him if he agrees to prepare
the lease and send it to my solicitor, and then gave him the name of my solicitor
as Mr Haydon and Co, I don't know the address any more."
This evidence shows, among other things, the direct collision between Mr
Tringas and Mr Van Dyke on the question whether the two rooms would be part
of the premises when the agreed lease began.
4 UNREPORTED JUDGMENTS
In the cross-examination of Mr Van Dyke, conducted both by the other
defendants and the plaintiff with their several purposes, some further background
evidence emerged which the Judge summarised as follows: "The second
defendant gave evidence, which I accept, about the essential requirements and
government controls over the central base of operations from which the canteen
trucks are sent out. In effect, within the shell of a factory premises a self
contained building is erected, incubated and sealed from causes of
contamination, consisting of a room in which food is prepared and an adjoining
coolroom. Plumbing, electricity and air conditioning are connected to this self
contained structure. The second defendant gave an estimate of the cost of
construction and connection of services and ancillary matters to be at least
$100.000." I would add to this that Mr Tringas said in his evidence that the cost
of the foregoing matters would probably have been more than $50,000.
In his reasons, the Judge mentioned that the evidence in the case had extended
over several days and involved lengthy inquisition into the nature of
conversations leading up to the lease and further conversations in the period
between the making of the agreement for the lease and the time when the plaintiff
claimed the first defendant was bound to take possession.
He also mentioned there had been extensive inquiries into the circumstances
pending the first defendant's departure from Hillsdale and the condition of the
Marigold Street premises at the time of departure of the tenant who was in there
at the time when the agreement for lease was made on 21 May 1984. He also
mentioned there had been evidence from various tradesmen concerning their
carrying out of relatively minor repairs immediately before, as the plaintiff
claimed, the date when, again according to the plaintiff's claim, the first
defendant was bound to take possession.
The trial Judge had to decide what was the substance of the conversations
between Mr Tringas and Mr Van Dyke. As well as referring to the extensive
evidence that I have just mentioned, he noted that he had had the opportunity to
assess each of those gentlemen during lengthy periods in the witness box. He said
he had come to the view that Mr Van Dyke's evidence should be accented. He
gave a number of reasons for this conclusion. Having come to it, he then held that
the premises offered to the first defendant were radically changed from what they
had been when the agreement for lease was made and that that amounted to the
agreement having been frustrated. Accordingly, he dismissed the plaintiff's claim.
The first step, and, in my view, necessarily the first step, which counsel for the
plaintiff sought to take in argument in the appeal was to try to overturn the trial
Judge's findings of fact about the conversations between Mr Tringas and Mr Van
Dyke concerning the two rooms. Counsel rightly recognised that there was a
formidable obstacle in the way of overturning these findings of fact by the trial
Judge. A line of cases stretching back to the last century and culminating in more
recent times in the cases of Abelos and De Vries in the High Court have made it
clear that the circumstances in which an appellate court will interfere with
findings of fact relating to credibility made by a trial Judge are very restricted.
The most convenient place for finding the relevant considerations in this respect
is in De Vries v Australian National Railways commission (1993) 177 CLR 472.
Towards the end of the joint reasons of Brennan, Gaudron and McHugh JJ in
that case, after mentioning that the Court had pointed out in recent decisions that
a finding of fact by a trial Judge based on credibility was not to be set aside
because an appellate Court thought the probabilities of the case were against, or
even strongly against, the Judge's finding of fact, they went on:
URJ LIBERTY INVESTMENTS PTY LTD v SAKATIK PTY LTD (Priestley JA) 5
"Tf the trial judge's finding depends to any substantial degree on the credibility
of the witness, the finding must stand unless it can be shown that the trial judge
'has failed to use or has palpably misused his advantage' or has acted on evidence
which was 'inconsistent with facts incontrovertibly established by the evidence'
or which was 'glaringly improbable'." (at 479)
It was one or other of these things that the plaintiff's counsel embarked upon
trying to persuade this Court of in opening the appeal.
The principal matter upon which he relied concerned the legal situation
between the plaintiff and the tenant of the Marigold Street premises at the time
when the agreement for lease to the first defendant was made on 21 May 1984.
The name of that tenant was Mr Harding and his lease had begun in 1979.
It appears that shortly after that lease was entered into he had caused a food
preparation room, being one of the two rooms which became important in the
conversations between Mr Tringas and Mr Van Dyke, to be erected within the
factory building and had constructed that room from brick. The plaintiff's
solicitor wrote to Mr Harding by letter dated 22 May 1980 pointing out to him
the fact of this construction and asking him for an acknowledgment in writing
that the factory would be reinstated to its original condition by removal of the
food preparation room upon vacation of the premises.
By letter of 27 May 1980, Mr Harding replied making the necessary
acknowledgment. These letters were relied on by the plaintiff in the appeal as
evidence incontrovertibly established which showed that the trial Judge had
failed to use his advantage or acted on evidence inconsistent with the facts
incontrovertibly established or else that it was glaringly improbable that Mr
Tringas would have said what he did to Mr Van Dyke in view of the situation
established by the letters. The clause in the lease between the plaintiff and Mr
Harding was also relied on as supporting the same approach.
I do not think that the existence of the letters or, more precisely, the existence
of the legal situation disclosed by the letters is a fact which makes it so unlikely
that Mr Tringas would have said what Mr Van Dyke said that he said in their first
interview and in subsequent conversations that this court should conclude the
trial judge made a mistake in accepting Mr Van Dyke's evidence on the point.
There are many possible reasons why the existence of the letters and the legal
situation disclosed by the letters is not inconsistent with Mr Tringas thinking
when he was talking to Mr Van Dyke that he was in a position or would be in a
position to see to it that the plaintiff gave possession of the premises to the first
defendant in the condition in which they were at the time of the making of the
agreement on 21 May 1984.
I do not think it necessary to explore the possibilities. The distance of time
between the correspondence which was correspondence by the plaintiff's solicitor
and the date of the making of the agreement is one matter that would have to be
taken into account.
Another flows from the considerable evidence given concerning the financial
position of Mr Harding and the company with which he was connected. This
evidence may well have led Mr Tringas to think that there would be no problem
in recovering possession of the premises from Mr Harding in the condition in
which they were at the time of his conversations with Mr Van Dyke.
Mention merely of those two matters seems to me to be sufficient to show that
the letters do not constitute the kind of material which is so inconsistent with the
factual findings made by the trial Judge that this Court's jurisdiction to interfere
is enlivened.
6 UNREPORTED JUDGMENTS
As the trial Judge said, there was a great deal of evidence relating both to
matters bearing on the conversations between the two men and on subsequent
matters. From the point of view of this Court's consideration of the appeal, it is
unnecessary to do more than consider the matters upon which the plaintiff relies
in its appeal in its attempt to bring itself within the situations described in De
Vries as situations where an appellate Court might interfere. I would add,
however, that having read through the transcript of the evidence of Mr Tringas,
Mr Van Dyke and the other witnesses, it seems to me abundantly clear that the
trial Judge had before him materials upon which it was appropriate for him to
come to the conclusion which he came to. I am not suggesting that I myself am
venturing to make any finding of fact. I expressly disown any such intention. Iam
simply saying that there was material before the trial Judge upon which it was by
no stretch of the imagination irrational or insupportable for him to arrive at the
conclusion which he did.
The letters that I have referred to and the lease which is consistent with them,
dating from 1980 and 1979, were the principal matters relied upon by the plaintiff
in this first step in its argument in the appeal. There were some other documents
which came into existence at dates varying from some time round about July and
August 1984 to much later which the plaintiff also submitted provided
documentary material of a kind supporting the submission that the factual
findings of the Judge should be overturned.
In the circumstances of this case I do not think that those documents are really
relevant to the question of what the conversation was that took place between Mr
Tringas and Mr Van Dyke. However, I have read the documents and the evidence
relating to them and they do not in my opinion constitute evidence of the
incontrovertible kind which it was submitted that they did. When the evidence of
the people who told of the creation of the documents is looked at, it can be readily
seen that issues of fact arose concerning some of those documents and doubts
about others which would leave them in a position, so far as an appellate Court
is concerned, where they do not fall into and of the requisite categories.
The result is, in my opinion, that the attack upon the trial Judge's factual
findings must fail.
As I mentioned earlier, that was the principal starting point for the plaintiff's
argument in the appeal. There were two further points which were put to the
Court. One I can describe as the Soulemesis point. It was submitted that the trial
Judge had not sufficiently disclosed his course of reasoning in his reasons for
judgment and that that constituted an error of law which required the judgments
to be set aside. I do not agree with this contention. Without going into the details
of what pursuant to Soulemesis and a string of cases which have discussed the
same point in this Court is required, for my part I think it is sufficient to say that
the thrust of all those decisions is that a trial Court Judge should in explaining the
reasons for his decision make reasonably clear just what the course of his
reasoning is and deal with the essential points in the litigation before him in that
explanation.
In the present case, it seems to me that the trial Judge complied with that
obligation. It does not seem to me that there is any real difficulty or any difficulty
at all in following his train of reasoning. I think, therefore, that this point also
fails.
The other point put for the plaintiff requires a little explanation. I earlier said
that having come to his factual conclusions the trial Judge said that what had
happened had amounted to the agreement having been frustrated. That was
URJ LIBERTY INVESTMENTS PTY LTD v SAKATIK PTY LTD (Mahoney ACJ) 7
putting what the trial Judge said at the conclusion of his judgment in a slightly
different form from what he said himself.
To explain this, I need to mention that what had happened between the making
of the agreement of 21 May 1984 and the date early in August which the plaintiff
claimed was the date when the first defendant had to take possession of the
premises, was that the plaintiff had first of all met some difficulty in persuading
Mr Harding to vacate the premises. It was necessary for the plaintiff to take
proceedings for possession in Court proceedings before Mr Harding vacated. Mr
Harding when he did vacate caused the two rooms to be demolished and
removed, and the trial Judge, having said what I earlier read, concluded with
these words:
"Tt is my view that by the actions of Mr Harding the agreement of May 1984
was frustrated."
The submission put was that it was wrong to say that what Mr Harding did was
relevant to the frustration of the agreement, and that this observation was an
irrelevant one on the part of the trial Judge. This may be so, although I express
no firm opinion about it, but it does not seem to me to affect the soundness of the
trial Judge's conclusion.
The circumstances in which the doctrine of frustration will apply to contracts
are many and various. Many Courts of the highest authority have said that
questions of frustration are in all cases ultimately questions of fact. However,
different categories of case have been separated out and discussed in the
authorities and the texts, making it a little easier to penetrate the law relating to
frustration.
One of the categories is the category where if a particular thing essential to the
performance of a contract becomes no longer available to the parties, then their
contract will be frustrated. Cases supporting this general statement may be found
collected in Greig and Davies, The Law of Contract, at 1308.
One of the reasons for earlier setting out the whole of Mr Van Dyke's evidence
in chief was to enable it to be seen easily how important the matter of these two
rooms was in the formation of the agreement. I think when his evidence is read
and it is borne in mind that the trial Judge accepted what he said, there can be no
question but that the availability of these two rooms in the leased premises was
a matter of the first importance in the agreement for lease of 21 May 1984.
When it became impossible for the plaintiff to offer those two rooms as part of
the premises to be taken possession of early in August 1984, it seems to me quite
sound to say that the doctrine of frustration applied and that the first defendant
was no longer bound by the agreement.
Accordingly, I have reached the conclusion that none of the arguments put for
the plaintiff in the appeal should succeed, and that the appeal should be dismissed
with costs.
Mahoney ACJ I agree with the judgment of Priestley JA. I shall add some
observations of my own upon the three main matters argued:credibility,
frustration and the reasons for judgment.
Mr Warren has properly submitted that in determining which witness of
inconsistent witnesses the Judge should give credibility, it is proper that the Judge
take into account all of the evidence that is before him. The extent to which this
is necessary and the qualifications of it have been referred to in other decisions
of this Court: see Fabre v Arenales (1992) 27 NSWLR 437.
8 UNREPORTED JUDGMENTS
The submission here was that the Judge did not take into account in particular
the contents and effect of Exhibits L and M, the two letters to which reference has
been made. When one has regard to the Judge's judgment and the nature of the
contest between the parties. I am satisfied that the Judge did take those matters
into account and notwithstanding, or perhaps because of, the terms of them, he
found as he did, that Mr Van Dyke rather than Mr Tringas was to be the credible
witness. I see no error in what has been done. I should add this.
The Judge's finding is not a finding in terms that Mr Tringas did not tell the
truth so far as he was attempting to do so. The effect of a finding of the kind made
by the Judge is discussed in the litigation involved in Smith v The New South
Wales Bar Association (1992) 176 CLR 256. What the Judge did, as I understand
his finding, is to prefer the evidence of Mr Van Dyke to that of Mr Tringas and
for the purposes of this case to accept Mr Van Dyke as the credible witness. His
judgment should, in my opinion, be seen as doing no more than that.
In relation to frustration, it is important, in my opinion, that regard be had to
what was undoubtedly the commercial basis of the case. At least it was so if Mr
Van Dyke's evidence be accepted. The commercial basis of the case as known to
all the relevant parties was that when the company, which was to take a lease of
the premises came to enter upon possession of them, it was to have the fittings
in question, the preparation room and the coolroom, and was to have those
fittings from the date on which it took possession. It is proper to infer from the
evidence, which the Judge accepted, that this was not merely an incidental
matter; it was vital to the transaction from the point of view of the intended lessee
and was known to be such by the intended lessor, that is in effect by Mr Tringas
and Mr Van Dyke.
The purpose of the taking, or proposed taking, of the lease was discussed in
evidence and it is clear that the possession of those fittings and their possession
from the date on which possession of the property was to be taken was vital and
was one of the main reasons why the additional rent had been offered to Mr
Tringas for a lease of the premises.
Mr Tringas and the plaintiff company caused or permitted this purpose to be
defeated. It is not necessary to pursue the reasoning, on this aspect. But the
position was, I assume, that set out in Exhibits L and M, that Mr Harding, was
to remove the fittings before he left the premises. No steps were taken to persuade
or prevent him doing so; it may be that the matter went further than that.
It was not necessary for the Judge to pursue this matter exhaustively. But the
plaintiff and Mr Tringas were, in my opinion, so involved in the situation that it
was proper to find that, within the law of frustration, the commercial purpose of
the transaction was defeated. Upon this ground I would find that there had been
a sufficient basis established for the Judge's finding of frustration.
It is important to record that what is here in question is, of course, an
agreement and not a lease as such. It is, therefore, not necessary to pursue the
questions which existed, or in the past have existed, as to the application of
frustration to a lease.
In relation to the reasons given by the learned Judge, it is proper to observe that
the law as established by Pettit v Dunkley (1971) 1 NSWLR 376 and the earlier
cases requires that in a judgment the Judge ensure that the parties, and
particularly the successful party, know why the decision was given as it was,
know sufficiently the reasons for the loss by the party losing to enable that party
to exercise its rights of appeal or review and to do whatever justice requires in
the circumstances.
URJ LIBERTY INVESTMENTS PTY LTD v SAKATIK PTY LTD (Mahoney ACJ) 9
In my opinion, it is clear from what the Judge did why he did it. For myself,
I would have no doubt as to why the Judge decided that Mr Van Dyke was to be
preferred to Mr Tringas in his evidence and why for this reason the claim of the
plaintiff company should be dismissed. Nor do I see any difficulty in determining
what he should do or might do in relation to appeal or review from the terms of
the judgment.
Notwithstanding these matters, it was yet argued that the reasons given were
not sufficient reasons and that there had been an error of law of the kind referred
to in Pettit v Dunkley. Reliance was placed in the main, if not entirely, upon the
fact that, as it was submitted, the Judge did not clearly indicate how he had dealt
with Exhibits L and M and the effect of them.
In deciding what reasons are to be given and to be given under pain of being
found guilty of an error of law, it is in my respectful opinion proper that the law
have regard to reality and not to concepts. The law is not a game. It is not an
academic exercise in which the Judge is required by way of a schematic
statement of the dispute to itemise exclusively or to exhaustion all of the points
which may be of relevance in relation to the case. A judgment is a practical
working document. Judgment writing now occupies a great deal of public time
and requires the expenditure of a great deal of public money. A Court must, of
course, do what justice requires and time and money must be sufficiently
provided to allow justice to be achieved. But if there is to be a great expenditure
of judicial time and expense and so public time and expense, it is proper that the
courts have regard to what in reality justice now requires.
In view of the current tendencies in the law, this is I think becoming more and
more important. The time taken in judgment writing in a Court will, of course,
vary with the course of the case but my own experience over a period of years
is that judgment writing in the superior Courts occupies something of the order
of 100 to 150 per cent of the time taken to hear a case. I do not speak for the
District Court or other Courts at that level but I suspect that the time taken,
though it may perhaps be somewhat less, is not greatly less. That matter is to be
taken into account in assessing what is to be required of a Court in the statement
of its reasons.
It is also to be borne in mind what in fact Courts in this State are now required
to do. In deciding what reasons to be given one will have regard to the place
which a Court occupies in the judicial structure. One does not expect from a
Court at the lower end of the structure a detailed statement of reasoning in
relation to each of the many cases that has come before it during the day.
Also regard is to be had to the number of cases which a Court is now expected
to deal with in the course of its daily activities. In deciding what reasons a Judge
must give the law will, in my opinion, as a matter of simple common sense take
into account what the Court of which he is a member is and what it is expected
to do.
I emphasise again that what a Court can do and is expected to do in detailing
its reasons for judgment is at all times to be subordinate to the requirements of
justice. But that Court, and this Court which reviews what is to be expected of
a Court, is entitled to take into account the burden which is now imposed upon
Courts.
It is proper to say, and I think the Court may properly know, that Courts such
as the Compensation Court not infrequently have listed before a Judge seven or
eight cases in each day. The Court of Criminal Appeal, part of the Supreme Court
of New South Wales, not infrequently has before it four or five cases in a single
day.
10 UNREPORTED JUDGMENTS
It is proper to record that this Court itself in recent times has at least in one of
its divisions been dealing with three, four and five appeals each day. The reasons
that are required to be given by a Court are to be assessed having regard to
matters of this kind.
It might perhaps be argued that if objection is to be taken to the reasons which
have been given by a Court or a Judge, it should be required of the party taking
the objection to place on record, in some formal way eg, on affidavit, that he does
not know, the reasons why the decision was given against him or that he does not
know the reasons sufficiently to enable him properly to exercise his appellate
rights or his other rights of review.
However, such a requirement does not presently exist. It is sufficient for me to
say in the present case that I see no error in the judgment which the Judge gave.
I think that it sufficiently appears from it what he did and why he did it and I see
justice as requiring no more than what he did.
I agree with the orders that are proposed by Priestley JA.
Beazley JA I agree with the reasons for judgment of Priestley JA and with the
orders proposed by him.
The order of the Court, therefore, is that the appeal is dismissed with costs.
The Court has given careful consideration to the application for costs pursuant
to the letter of 12 August 1996 from Messrs Hogan and Company, the solicitors
for the respondents. It is sought that an order for indemnity costs should be made
in terms of that letter. I will direct that that letter be marked for this purpose as
Exhibit 1.
The Court has given careful consideration to the matter but in the end it does
not think that this is an appropriate case in which to make orders for indemnity
costs. It may be that in some circumstances the Court of Appeal in the exercise
of the discretionary power as distinct from the power under the Rules, will make
an order for indemnity costs. But on balance the Court does not think that this is
an appropriate case. It, therefore, refuses the application. The costs will be upon
the ordinary basis.
Appeal dismissed with costs.
Representation:
Counsel for the appellant: DL Warren
Solicitors for the appellant: Redmond Partners
Counsel for the respondent: (1 and 3) DL Williams
Solicitors for the respondent: (1 and 3) Hovan and Co
Counsel for the respondent: (2) In Person
Solicitors for the respondent: (2) Albert Van Dyke
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