RICH & SILBERMANN v THE AUSTRALIAN SECURITIES & INVESTMENTS COMMISSION [2003] NSWCA 342

Reported Decision : 48 ACSR 6 (2004) 22 ACLC 286

New South Wales Court of Appeal

CITATION : RICH & SILBERMANN v THE AUSTRALIAN SECURITIES & INVESTMENTS COMMISSION [2003] NSWCA 342 revised - 29/04/2004 HEARING DATE(S) : 10 July 2003 JUDGMENT DATE : 26 November 2003

JUDGMENT OF : Spigelman CJ at 1; Ipp JA at 119; McColl JA at 120 DECISION : Appeal dismissed with costs.

CATCHWORDS : PRACTICE AND PROCEDURE - Discovery - Privilege against self-exposure to a penalty - Whether available in proceedings for declaration of contravention of civil penalty provision, disqualification from management of corporations and compensation orders - PRACTICE AND PROCEDURE - Pre-trial filing of witness statements - Privilege against self-exposure to a penalty - Corporations Act 2001 (Cth), ss 206C, 206E, 1317EA Australian Industries Preservation Act 1906, ss 4, 6 Australian Securities Commission Act 1989 (Cth), ss 19, 68 Bankruptcy Act 1883, s 32 Bankruptcy Act 1966, Part X Commonwealth Constitution, s 51(xix) Companies Act 1961, ss 116, 117, 122 Companies and Securities (Interpretation and Miscellaneous Provisions) Act 1980 Companies Code 1981, ss 227, 227A, 229, 562, 562A, 570 Corporations Act 2001 (Cth), ss 180, s206B, 206C, 206D, 206E, 206F, 206G, 1311, 1317E, 1317G, 1317H, 1317J Corporations Law 1991, ss 9, 91, 182, 183, 184, 206F, 224, 229, 230, 232, 559, 588J, 588M, 588U, 596AI, 599, 600, 601MA, 829, 830, 1311, 1317, 1317DA, 1317EA, 1317EB, 1317EC, 1317ED, 1317EF, 1317FA, 1317FB, 1317GC, 1317HA, s1317HD, 1317J, 1317K, 1317L, 1317M, 1317N, 1317P, 1317Q, 1332, 1474, Schedule 3 Criminal Justice (Scotland) Act 1949 Criminal Law (Sentencing) Act 1988 (SA), s 52 Customs Act 1901 (Cth) LEGISLATION CITED : Estate Agents Act 1979 Excise Act 1901 (Cth) Fisheries Act 1952 (Cth) Income Tax and Social Services Contribution Assessment Act 1936 Part VII (Cth), s 237 Migration Act 1958 (Cth) Public Health Act 1875 Road Traffic Act 1930 Acts Interpretation Act 1901 (Cth), s 13 Australian Securities Commission Act (1989) (Cth), s 68 Securities Industry Code 1961 ss 60, 62 Sentencing Act 1991 (Vic), Part 4, Div 1 Solicitors Act 1941 (UK) Stock-Jobbing Act (7 Geo.2.c.8) Trade Practices Act 1974 (Cth) s 155 Wine and Beer Amendment Act 1870 (UK) Adams v Batley (1887) 18 QBD 625 Adler v ASIC (2003) 46 ACSR 504 Antonelli v Secretary of State for Trade and Industry [1998] QB 948 ASC v Donovan (1998) 28 ACSR 583 ASC v Forem-Freeway Enterprises Pty Ltd (1999) 30 ACSR 339 ASIC v Pegasus Leveraged Options Group Pty Limited (2002) 41 ACSR 561 ASIC v Rich [2003] NSWSC 328; (2003) 45 ACSR 305 Australian Competition & Consumer Commission v Amcor Printing Papers Group Limited (1999) 163 ALR 465 Australian Securities and Investments Commission v FFE Building Services Ltd (2003) ATPR 41-938 Australian Securities and Investments Commission v Plymin (2002) 4 VR 168 Australian Securities Commission v Kippe (1996) 67 FCR 499 Australian Securities Commission v Marlborough Gold Mines Limited (1993) 177 CLR 485 Azzopardi v The Queen (2001) 205 CLR 50 Bakker v Stewart [1980] VR 17 Beckwith v R (1976) 135 CLR 569 Bird v Hardwicke (1682) 1 Vern. 109; 23 ER 349 Boteler v Allington (1746) 3 Atk 453, 26 ER 1061 Bridal Fashions Pty Ltd v Comptroller-General of Customs (1996) 140 ALR 681 Brown v Great Eastern Railway Co (1887) 2 QBD 406 Brownsword v Edwards (1751) 2 Ves Sen 243, 28 ER 157 CAC (WA) v Ekamper (1987) 12 ACLR 519 Channon v R (1978) 33 FLR 433 Chauncey v Tahourden (1742) 2 Atk 392; 26 ER 637 Chew v National Companies & Securities Commission (No 2) [1985] WAR 337 Chief Executive Officer of Custom v Labrador Liquor Wholesale Pty Ltd [2003] HCA 49 Chu Kheng Lim v Minister for Immigration, Local Government and Ethnic Affairs (1992) 176 CLR 1 Clyne v NSW Bar Association (1960) 104 CLR 186 Commissioner for Corporate Affairs v Bracht [1989] VR 821 Controlled Consultants Pty Ltd v Commissioner for Corporate Affairs (1985) 156 CLR 385 Coogans v MacDonald [1954] SLT 279 Daniels Corporation International Pty Ltd v Australian Competition & Consumer Commission [2002] HCA 49; (2002) 77 ALJR 40 Deputy Federal Commissioner of Taxation (NSW) v DTR Securities Pty Ltd (1985) 1 NSWLR 653 Dougherty v Nagel 28 Idaho 302, 154 Pac. 375 (1915) Dr SS v Health Care Complaints Commission and Another [2002] NSWCA 391 E L Bell Packaging Pty Limited v Allied Seafoods Limited & Ors (1990) 4 ACSR 85 Environment Protection Authority v Caltex Refining Co Pty Limited (1993) 178 CLR 477 Ex parte Brounsall (1778) 2 Cowp 830; 98 ER 1385 Federal Commissioner of Taxation v Trautwein (1936) 56 CLR 211 Flavel v Borrett & Haig (1991) 54 A Crim R 452 Friend v Corporate Affairs Commission (1988) 7 ACLC 106 Geaghan v D'Aubert (2002) 36 MVR 542 Glynn v Houston (1836) 1 Keen 329, 48 ER 333 Government of the United States of America v Montgomery & Anor [2001] UKHL 3, [2001] 1 All ER 185, [2001] 1 WLR 196 Gray v Motor Accident Commission (1998) 196 CLR 1 Green v Weaver (1827) 1 Sim. 402, 57 ER 630 Griffin v Sogelease Australia Limited & Ors [2003] NSWCA 158 Hambrook v Smith (1852) 17 Sim. 209, 60 ER 1109 Harris v Digital Pulse Pty Ltd (2003) 56 NSWLR 298 Harrison v Southcote & Moreland (1751) 2 Ves. 389, 28 ER 249 Honeywood v Selwin (1744) 3 Atk 276, 26 ER 961 In the Matter of King (1844) 8 QB 129; 115 ER 823 In re a Debtor [1910] 2 KB 59 Incorporated Law Institute of New South Wales v Meagher (1909) 9 CLR 655 Jones v Jones (1889) 22 QBD 425 Kingston v Keprose Pty Ltd (No 3) (1987) 11 NSWLR 404 La Macchia v Minister for Primary Industry (1986) 72 ALR 23 Law Society of New South Wales v Foreman (No 2) (1994) 34 NSWLR 408 Legione v Hateley (1983) 152 CLR 406 L'Office Cherifien des Phosphates v Yamashita-Shinnihon Steamship Company Limited [1994] 1 AC 486 Mallan v Lee (1949) 80 CLR 198 Martin v Treacher (1886) 16 QBD 507 Mexborough (Earl of) v Whitwood Urban District Council [1897] 2 QB 111 Monnins v Monnins (1673) 2 Chan. Rep. 68; 21 ER 618 Morris v Police Service Board [1983] 2 VR 357 Naismith v McGovern (1953) 90 CLR 336 CASES CITED : Nelme v Newton (in Maccallum v Turton (1828) 2 Y. & J. 183, 148 ER 883) Nicholas v Commissioner for Corporate Affairs (1986) 5 ACLC 258 Nicholas v Commissioner for Corporate Affairs [1988] VR 289 NSW Bar Association v Evatt (1968) 117 CLR 177 Orme v Crockford (1824) 13 Price 376; 147 ER 1022 Parkhurst v Lowten (1819) 2 Swans 197, 36 ER 589 Paxton v Douglas (1809) 16 Ves. 239, 33 ER 975; 19 Ves. 225, 34 ER 502 Police Service Board v Morris (1985) 156 CLR 397 Polyukhovich v Commonwealth (War Crimes Act Case) (1991) 172 CLR 501 Poyser v Commissioner for Corporate Affairs [1985] VR 533 Project Blue Sky Inc & Ors v Australian Broadcasting Authority (1998) 194 CLR 355 Proudfoot v Proctor (1887) 3 WN (NSW) 69 Pye v Butterfield (1864) 5 B & S 829; 122 ER 1038 at 1042 Pyneboard Pty Ltd v Trade Practices Commission 152 CLR 328 R v Associated Northern Collieries (1910) 11 CLR 738 R v Cuthbert [1967] 2 NSWR 329 R v Davis (1995) 81 A Crim R 156 R v Geddes (1936) 36 SR (NSW) 554 R v Rushby [1977] 1 NSWLR 594 R v Vine (1875) LR 10 QB 195 Re a Solicitor's Clerk [1957] 1 WLR 1219 Re Altim Pty Ltd and the Companies Act 1961 [1968] 2 NSWR 762 Re Dymond (No 3) (1959) 101 CLR 11 Re Ferrari Furniture Co Pty Ltd and the Companies Act [1972] 2 NSWLR 790 Re Harrison (1998) 81 FCR 436 Re HIH Insurance Limited (In prov liq); ASIC v Adler (2002) 42 ACSR 80 Re Magna Alloys & Research Pty Limited (1975) 1 ACLR 203 Re Marsden (1981) 29 SASR 454 Re One.Tel Limited (In liq); ASIC v Rich (2003) 44 ACSR 682 Re Pulborough School Board; Bourke v Nutt [1894] 1 QB 725 Re Quinn & Australian Securities Commission (1994) 19 AAR 321 Re Tasmanian Spastics Association; ASC v Nandan (1997) 23 ACSR 743 Re Veron; ex parte Law Society of New South Wales [1966] 1 NSWR 511 Re Westinghouse Uranium Contract [1978] AC 547 Redfern v Redfern [1891] P 139 Refrigerated Express Lines (A/Asia) Pty Limited v Australian Meat & Livestock Corporation Limited (1979) FLR 204 Reid v Howard (1995) 184 CLR 1 Richardson v Federal Commissioner of Taxation (1932) 48 CLR 192 Saunders v Wiel [1892] 2 QB 18, 321 Scott v Miller (No 2) (1859) LJ. Ch 584, 70 ER 448 Short v Mercier (1848) 2 De Ge & Sm 635, 64 ER 285 Short v Mercier (1851) 20 L.J. Ch. 289 Sidebottom v Commissioner of Taxation [2003] VSCA 2 Smith v New South Wales Bar Association (No 2) (1992) 176 CLR 256 Smith v Read (1737) 1 Atk 527; 26 ER 332 Sorby v the Commonwealth (1983) 152 CLR 281 Swift v Swift (1832) 4 Hagg 139 at 154, 162 ER 1399 T W Hobbs & Co v Hudson & Ors (1890) 25 QBD 232 Taylor & Anor v Carmichael (1984) NSWLR 421 The Gleaner Company Limited & Anor v Abrahams (Jamaica) [2003] 3 WLR 1038 The King v Lord George Gordon (1781) 2 Doug. 593, 99 ER 374 The Southern Law Society v Westbrook (1910) 10 CLR 609 Thruston v Clark 107 Cal. 285, 40 Pac. 435 (1895) Trade Practices Commission v Abbco Iceworks Pty Limited (1994) 52 FCR 96 Trade Practices Commission v CSR Ltd (1991) ATPR 41-076 Triplex Safety Glass Co Ltd v Lancegaye Safety Glass (1934) Ltd [1939] 2 K.B. 395 United States ex rel Marcus v Hess 317 US 537 United States v Chouteau 102 U.S. 603 (1880) United States v Collins 25 F. Cas. 545 (1873) Veen v The Queen [No. 2] (1988) 164 CLR 465 Wall v Taylor [1883] 11 QBD 102 Walter v Council of Queensland Law Society Incorporated (1988) 62 ALJR 153 Walton v Gardiner (1993) 177 CLR 378 Welch v United Kingdom (1995) 20 EHRR 247 Wentworth v New South Wales Bar Association (1992) 176 CLR 239 Zuker v Commissioner for Corporate Affairs [1981] VR 72 PARTIES : John David Rich and Mark Alan Silbermann (Appellants) The Australian Securities & Investments Commission (Respondent) FILE NUMBER(S) : CA 40402/03 COUNSEL : B Walker SC / DL Williams (Appellants) R MacFarlane QC / P Durack (Respondent) SOLICITORS : Joanne Kelly (Appellants) The Australian Securities & Investments Commission (Respondent)