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QGC Pty Limited v Bygrave [2010] FCA 659 (23 June 2010)
Last Updated: 25 June 2010
FEDERAL COURT OF AUSTRALIA
QGC Pty Limited v Bygrave [2010] FCA 659
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Citation:
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Parties:
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QGC PTY LIMITED ACN 089 642 553 v LOUISE
BYGRAVE, DELEGATE OF THE NATIVE TITLE REGISTRAR and RUSSELL TATOW, PATRICK
SILVESTER, CYNTHIA
KEMP, EVE FESL, TROY NOBLE, FRED TULL, FERGUS WATERTON,
RICHARD DOYLE AND MADONNA BARNES ON BEHALF OF THE IMAN PEOPLE #2
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File number:
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QUD 147 of 2010
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Judge:
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REEVES J
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Date of judgment:
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Catchwords:
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PRACTICE AND PROCEDURE – application
of Native Title Representative Body to be made a party to proceedings –
consideration of whether the Representative
Body has a sufficient interest in
the decision the subject of the proceedings and whether the Court should
exercise its discretion
to allow it to be made a party – Representative
Body found to have a sufficient interest in the decision as it will affect
the
number and diversity of the native title holders it is to represent and will
affect how is discharges its functions under the
Native Title Act 1993
(Cth) – this interest is direct and demonstrable and goes beyond a
mere emotional or intellectual concern
PRACTICE AND PROCEDURE – “solicitor on the record”
described as the Principal Legal Officer of the Representative Body – a
party
does not comply with the relevant Federal Court Rule by identifying his or
her solicitor by a job title – “solicitor
on the record” has
important duties to the Court and his or her role is critical to the
Court’s ability to ensure that
cases are managed efficiently, promptly and
inexpensively
PRACTICE AND PROCEDURE – consideration of whether a conflict
of interest may arise if Representative Body made a party to the proceedings
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Representative Body seeking to advance a construction of a section of
the Native Title Act 1993 (Cth) which, if accepted, could be adverse to
the interests of a group of native title claimants that a solicitor engaged by
the Representative
Body is representing in other proceedings – a solicitor
acting for a client has among other fiduciary obligations to that client
a duty
of undivided loyalty – duty includes a proscription against a solicitor at
the same time acting both for and against
the client in the same proceedings and
in some cases in related matters – duty must be manifestly and undoubtedly
discharged
– solicitors should not be seen to readily “change
sides” – however there must be an actual conflict between
duties
before a solicitor is placed in a position of conflict – duty imposes only
proscriptive or negative duties – a
fiduciary must not place him or
herself in a position where there is or may be a conflict between duties owed
and he or she must
not profit from the relationship – Held that no
situation could be identified where the duties of the solicitor on the record
were in actual conflict – two sets of
proceedings not sufficiently related
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Legislation:
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Administrative Decisions (Judicial Review) Act
1977 (Cth) ss 5, 12Native Title Act 1993 (Cth) ss 24CA,
24CD(1), 24CG, 24CH, 61, 84(5), 85, 85A, 203AD, 203AH(2)(a),
203B, 203B(4), 203BA(1), 203BB, 203BB(1)(b), 203BB(2), 203BB(4), 203BE(5),
203BF, 203BH, 203BH(2), 203BJ(c), 224, Pt II Div 3 Judiciary Act 1903
(Cth) ss 39B, 55B to 55DFederal Court of Australia Act 1976
(Cth) Federal Court Rules O 4 r 4(1)(c), O 4
r 4(1)(d), O 4 r 14(1), O 4 r 14(2), O 9
r 1(1), O 9 r 4(1)(b),
O 45 r 1(1), O 45 r 2,
O 78, O 78 r 3(2), O 78 r 42A Uniform Civil
Procedure Rules 1999 (Qld) Rule 994
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Cases cited:
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Dal Pont, Law of Costs (2nd ed, LexisNexis Butterworths, 2009),
[17.20] Finn P, Fiduciary Obligations (2nd ed, The Law Book Company
Limited, 1990) paras 581 and 583
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Place:
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Brisbane
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Division:
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GENERAL DIVISION
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Category:
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Catchwords
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Number of paragraphs:
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Counsel for the Applicant:
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Solicitor for the Applicant:
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McCullough Robertson
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Solicitor for the First Respondent:
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Holding Redlich
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Counsel for the Second Respondents:
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Mr D Rangiah SC
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Solicitor for the Second Respondents:
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Michael Owens
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IN THE FEDERAL COURT OF AUSTRALIA
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QUEENSLAND DISTRICT REGISTRY
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QGC PTY LIMITED ACN 089 642
553Applicant
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AND:
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LOUISE BYGRAVE, DELEGATE OF THE NATIVE TITLE
REGISTRARFirst Respondent
RUSSELL TATOW, PATRICK SILVESTER, CYNTHIA KEMP, EVE FESL, TROY NOBLE,
FRED TULL, FERGUS WATERTON, RICHARD DOYLE AND MADONNA BARNES
ON BEHALF OF THE
IMAN PEOPLE #2 Second Respondents
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DATE OF ORDER:
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WHERE MADE:
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THE COURT ORDERS THAT:
- Queensland
South Native Title Services Limited be made a party to the proceedings.
Note: Settlement and entry of orders is dealt with in Order 36 of
the Federal Court Rules.
The text of entered orders can be located using
Federal Law Search on the Court’s website.
IN THE FEDERAL COURT OF AUSTRALIA
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QUEENSLAND DISTRICT REGISTRY
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GENERAL DIVISION
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QUD 147 of 2010
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BETWEEN:
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QGC PTY LIMITED ACN 089 642 553 Applicant
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AND:
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LOUISE BYGRAVE, DELEGATE OF THE NATIVE TITLE REGISTRAR First
Respondent
RUSSELL TATOW, PATRICK SILVESTER, CYNTHIA KEMP, EVE FESL, TROY NOBLE,
FRED TULL, FERGUS WATERTON, RICHARD DOYLE AND MADONNA BARNES
ON BEHALF OF THE
IMAN PEOPLE #2 Second Respondents
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JUDGE:
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REEVES J
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DATE:
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23 JUNE 2010
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PLACE:
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BRISBANE
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REASONS FOR JUDGMENT
INTRODUCTION
- Queensland
South Native Title Services Limited has applied to be made a party in these
proceedings. It relies upon s 12 of the Administrative Decisions
(Judicial Review) Act 1977 (Cth), which
provides:
(1) A person interested in a decision, in conduct that has been, is being, or is
proposed to be, engaged in for the purpose of making
a decision, or in a failure
to make a decision, being a decision, conduct or failure in relation to which an
application has been
made to the Federal Court or the Federal Magistrates Court
under this Act, may apply to the court to be made a party to the
application.
(2) The court may, in its discretion:
(a) grant the application either unconditionally or subject to such conditions
as it thinks fit; or
(b) refuse the application.
- As
the Full Court made clear in United States Tobacco Company v Minister for
Consumer Affairs (1988) 20 FCR 520 (“US Tobacco”) at 526,
there are two matters to be considered in an application of this kind. In
order, they are:
- whether
Queensland South has a sufficient interest in the decision the subject of these
proceedings; and
- if it does,
whether I should exercise my discretion to allow it to be made a party in the
proceedings.
THE DECISION THE SUBJECT OF THESE PROCEEDINGS
- Before
turning to consider these two matters, it is appropriate to provide some
background to the decision which is the subject of
these proceedings.
- The
second respondents, on behalf of the Iman People, are together the registered
native title claim group in a native title determination
application made under
s 61 of the Native Title Act 1993 (Cth) (“the Act”).
That claim is known as the Iman #2 claim.
- Queensland
South is a recognised representative body under s 203AD of the Act. As
such, it has been given responsibility for representing the interests of native
title holders in the area of southern Queensland.
That area includes the claim
area of the Iman #2 claim.
- QGC
Pty Limited, the applicant in these proceedings, wishes to develop a liquefied
natural gas project in the Surat Basin in southern
Queensland on land which
includes the claim area of the Iman #2 claim. To do so, and address the future
act requirements of the
Act, QGC has negotiated an Indigenous Land Use Agreement
(“ILUA”) with the Iman People in relation to the whole of the claim
area.
- That
Agreement has been signed by eight of the nine persons comprising the native
title claim group in the Iman #2 claim. The ninth
person, Ms Madonna Barnes,
refuses to sign it. Notwithstanding this, on 9 March 2010, QGC applied to the
Native Title Registrar
to have the Agreement registered on the Register of ILUAs
under s 24CG of the Act.
- On
20 April 2010, a duly appointed Delegate of the Registrar refused to give notice
of the Agreement under s 24CH of the Act. Since such a notice is an
essential pre-condition for the registration of an agreement as an ILUA, the
Delegate’s refusal
is tantamount to a refusal to register the Agreement as
an ILUA.
- The
key reason for the Delegate’s refusal to give this notice was her
conclusion that, since Ms Barnes had not signed the Agreement,
it did not comply
with the requirements of s 24CD(1) of the Act, which are part of the
pre-conditions for the Agreement meeting the requirements for an ILUA under
s 24CA of the Act. Section 24CD(1) of the Act relatively provides:
“All persons in the native title group ... must be parties to the
agreement”.
- QGC
has filed these proceedings to challenge the correctness of the Delegate’s
decision. It relies upon s 5 of the Administrative Decisions (Judicial
Review) Act 1977 and s 39B of the Judiciary Act 1903 (Cth).
- The
Delegate is the first respondent to these proceedings and, as I have already
mentioned, the second respondents are the native
title claim group in the Iman
#2 claim.
- A
couple of other aspects of these proceedings should be mentioned at this stage.
The first is that the second respondents have
issued a cross-claim in these
proceedings seeking an order against Ms Barnes that she forthwith sign the
Agreement. Thus, while
Ms Barnes has been named as one of the second
respondents – because she is a member of the native title claim group
–
she has been separately named as a cross-respondent to this claim by the
other eight second respondents. I should add that, thus
far, Ms Barnes has
appeared in person, or by telephone link and has not been represented by a legal
practitioner.
- The
second is that, because all of the parties either agreed that this matter was
urgent or, in Ms Barnes’ case, did not oppose
it being dealt with
urgently, I have set the proceedings down for hearing on Thursday, 24 June 2010.
This means that I have had to
determine this application with some
urgency.
WHAT IS THE REQUISITE SUFFICIENT INTEREST?
- I
now turn to the first of the two matters that needs to be considered in an
application of this kind: whether Queensland South
has a sufficient interest in
the decision the subject of these proceedings to justify it being made a
party.
- Mr
O’Gorman SC, for Queensland South, submitted that it had a sufficient
interest in its capacity as the recognised representative
body having
responsibility for that part of the State of Queensland that includes the area
the subject of the Agreement. As such,
he submitted, Queensland South has a
number of functions under Pt II Div 3 of the Act, specifically those set out in
s 203B. They include the following:
- the facilitation
and assistance functions described in s 203BB;
- the dispute
resolution functions described in s 203BF;
- the
agreement-making functions described in s 203BH.
- Mr
O’Gorman also relied upon the affidavit of Mr Kevin James Smith, the Chief
Executive Officer of Queensland South. In that
affidavit, Mr Smith stated that,
in discharging its functions under the Act, Queensland South is involved in
“numerous drafting, negotiation, inter-Indigenous and intra-Indigenous
dispute resolution, notification, authorisation, certification,
and other
activities related to the making of ILUAs” within its area of
responsibility. Mr Smith also claimed the Court’s construction of
s 24CD and other provisions of the Act “could have broad
implications for [Queensland South’s] constituents and clients ... and
affect how [Queensland South] delivers
its services and performs its legislative
functions”. He added that this “may affect the way in which
[Queensland South] must prioritise and allocate resources in order to perform
its functions in a timely
and efficient manner”.
- Ms
Barnes essentially supported Mr O’Gorman’s submissions on this and
the discretionary aspect.
- Mr
Rangiah SC for the second respondents (excluding Ms Barnes) submitted that
Queensland South did not have a sufficient interest
to justify it being joined
as a party in the proceedings. He submitted that Queensland South was in no
different a position to every
other representative body in Australia in relation
to the discharge of its functions and it held no greater interest than an
ordinary
member of the public. He also submitted that Mr Smith’s
affidavit was expressed in terms of what “may” or
“could” happen to Queensland South and, in that sense, he was
quite vague as to the nature of the interests it had.
- Neither
Mr Hiley QC, for QGC, nor Mr Hardman, for the Delegate, made any submissions on
this application.
QUEENSLAND SOUTH DOES HAVE A SUFFICIENT INTEREST
- First,
I do not consider the cases to which I was referred, that deal with the nature
of a relevant interest for the purposes of
becoming a party to native title
proceedings under s 84(5) of the Act (Munn v State of Queensland
[2002] FCA 78, Kooma People v State of Queensland [2002] FCA 86 and
Bissett v Minister for Land and Water Conservation for the State of New South
Wales [2002] FCA 365) , provide any assistance in determining what is
a sufficient interest for the purposes of s 12 of the Administrative
Decisions (Judicial Review) Act 1977. The circumstances in those cases were
quite different: a recognised representative body applying to become a party to
a native
title determination application; and the relevant provisions of the two
pieces of legislation are different in their terminology:
“person
interested” in the latter Act, “a person’s interests
may be affected” in the former Act.
- Instead,
I consider the apposite decision on the nature of the requisite sufficient
interest for the purposes of s 12 of the Administrative Decisions
(Judicial Review) Act 1977 is the Full Court’s decision in US
Tobacco. There, the Court described that interest in these terms (at
527):
The term “interest” has long been an expression used in the law with
respect to parties so as to require an involvement
with a case greater than the
concern of a person who is a mere intermeddler or busybody. Nevertheless, the
criterion for standing
prescribed by the Act is not a restrictive one. The
broadest of technical terms has been selected. The necessary interest need not
be a legal, proprietary,
financial or other tangible interest. Neither need it
be peculiar to the particular person.
- And
further (at 528):
There are sound reasons why the expression should not be extended to include a
member of the public who does not have a grievance
which he or she will suffer
beyond that which he or she has as an ordinary member of the public. Otherwise,
anyone at all could
apply for review of a decision under a Commonwealth
enactment and for a statement under s 13 of the Judicial Review Act of the
findings on material questions of fact and the reasons for the decision in
question even though the decision may not affect
the person beyond being merely
emotionally or intellectually concerned or interested in the
decision.
- Taking
into account these observations, particularly the non-restrictive nature of the
criterion prescribed by s 5 of the Administrative Decisions (Judicial
Review) Act 1977 and the breadth of the term “interest”, I
consider Queensland South, in its capacity as the recognised representative
body
under the Act with responsibilities for the area to which the Agreement relates,
does have a sufficient interest in the decision to which these
proceedings
relate.
- Without
delving into the central issue that has to be determined in these proceedings, I
consider that the question whether a majority
of the native title group, as
distinct from an unanimity of it, meets the requirements of s 24CD(1) of
the Act, is likely to affect the number and diversity of the native title
holders, or groups of native title holders, Queensland South is
required to
represent as the representative body for the area of southern Queensland. That,
in turn, will have implications for
the way in which Queensland South discharges
its functions under the Act. Without being exhaustive, that is likely to
include the number and diversity of the native title holders it has to:
- assist and
represent, in discharging its facilitation and assistance functions under
s 203BB(1)(b);
- consult with and
have regard to the interests of, in discharging its agreement-making function
under s 203BH(2); and
- assist and
mediate between, in the discharge of its dispute resolution functions under
s 203BF.
- Queensland
South’s ability to satisfactorily perform these, and its other functions
under the Act, is quite important for it, not the least because any failure to
do so is a ground under s 203AH(2)(a) upon which the relevant Minister can
act to withdraw its recognition as a representative body. In this respect, it
is also important
to note that: Queensland South is expressly required by the
Act to perform all its functions in a timely manner (see s 203BA(1)); and
it has an express function to promote understanding among people living in its
area of operation about matters relevant to the
operation of the Act (see
s 203BJ(c)).
- In
my view, these matters therefore give Queensland South a demonstrable and direct
interest which goes beyond a mere emotional or
intellectual concern in the
decision the subject of these proceedings. Further, this interest is such that
it sets Queensland South
apart from an ordinary member of the public and from
being a “mere intermeddler or busybody”. Finally, I do not
consider the fact that this interest may not be peculiar to Queensland South, in
that all other recognised
representative bodies in Australia may have a similar
interest in these proceedings, detracts from this conclusion. I therefore
consider Queensland South has the requisite sufficient interest to satisfy the
first of the two matters that I have to consider in
this
application.
THE DISCRETIONARY MATTER – WHO WAS THE SOLICITOR ON THE RECORD?
- The
second matter, ie the discretionary matter, has caused me much more difficulty.
It involves the question whether a conflict
of interest may arise if Queensland
South were to become a party to these proceedings.
- Before
I go to the details of this matter, I need to record certain events that
occurred after I initially reserved my decision on
Queensland South’s
application.
- During
submissions on its application, Queensland South’s counsel told me that it
was the “solicitor on the record”
for the applicants in the Iman #2
claim. Accordingly, the submissions at the initial hearing proceeded on the
assumption that it
was Queensland South itself that may have any relevant
conflict of interest if it were to become a party to these proceedings.
- However,
after I reserved my decision, it soon became apparent that, since Queensland
South was not a “solicitor” in
any sense of the word, it could not
be the “solicitor on the record” in the Iman #2 claim. Then, on
checking the Court
file, it emerged that, according to a Notice of Change of
Solicitor filed in the Court on 12 September 2008, the current solicitor
on the
record for the applicants in the Iman #2 claim was the Principal Legal Officer
of Queensland South; and not Queensland South
itself. Further, I was aware from
an affidavit (filed 18 May 2010), filed in support of this application, that Mr
Shahzad Rind claimed
he was the Principal Legal Officer of Queensland South. It
followed from this, that it must be Mr Rind who owed the relevant fiduciary
duties, as solicitor, to the second respondents, and it must be he who may have
the conflict of interest that was said to arise if
Queensland South were to
become a party to these proceedings.
- Upon
these things becoming apparent, I arranged to relist this application to allow
the parties, and also Mr Rind, to make further
submissions directed to this new
information. Thereafter, a number of things occurred.
- First,
on Friday, 18 June 2010, after I relisted this application, Queensland South
filed a Notice of Change of Address for Service
stating that Ms Deanne Cartledge
of Gilkerson Legal acted as the solicitor for Queensland South in these
proceedings. The original
notice of motion that Queensland South filed on 18
May 2010, was signed by Mr Rind as its Principal Legal Officer.
- Secondly,
at the resumed hearing of Queensland South’s application on Monday, 21
June 2010, Mr Hunter, of counsel, appeared
for Mr Rind and obtained leave to
file and rely upon an affidavit affirmed by him on 21 June 2010. In that
affidavit, Mr Rind sought
to correct various statements made by him in his
affidavit of 18 May 2010. In particular, he sought to correct his statement
that
he was the Principal Legal Officer of Queensland South and he sought to
explain why he had signed the notice of motion on 18 May
2010 identifying
himself as the Principal Legal Officer for Queensland South. In short, his
explanation was that, while his designated
job title at Queensland South was
“Principal Legal Officer”, he was still in the process of applying
to be admitted as
a legal practitioner of the Supreme Court of Queensland. He
said he was making that application based upon his previous admission,
in 2000,
as a barrister and solicitor of the Supreme Court of Western Australia and the
fact his name was entered on the Roll of
Practitioners of the High Court of
Australia, in 2001. He said that, in identifying himself as the
“Principal Legal Officer”
of Queensland South, he only intended to
refer to his designated job title and not his status as a legal practitioner in
Queensland.
He added that he expected to obtain an open practising certificate
as a solicitor from the Queensland Law Society on 1 July 2010
and thereafter
expected he would formally assume the role of Principal Legal Officer of
Queensland South.
- Having
given this explanation, Mr Rind said: “In hindsight, I should not have
identified myself as ‘Principal Legal Officer’ in my affidavit or
signed the notice of
motion on behalf of [Queensland South]. I unreservedly
apologise to this Honourable Court, the parties to the proceedings and their
legal representatives for any confusion that I have caused”. Later in
his affidavit, Mr Rind said, based on information provided to him by Mr Smith,
the Chief Executive Officer of Queensland
South, he believed that Mr Colin
Stanley Hardie was the solicitor on the record for the applicants in the Iman #2
claim and that
Mr Hardie would remain in that role until 30 June 2010, when he
expected to obtain his open practising certificate.
- Mr
Rind concluded his affidavit by stating that: “I have informed
[Queensland South] and wish to inform this Honourable Court that I do not intend
to be involved in any way in advising
or instructing [Queensland South], its
legal officers and Counsel, in relation to its motion for joinder as a party to
the proceeding
and, if so joined, in relation to any submissions that
[Queensland South] may wish to make in the proceedings”.
- It
is to Mr Rind’s credit that he has promptly disclosed to the Court the
error he thought he had made and that he has apologised
to the Court for that
error. However, since he is admitted as a legal practitioner in the Supreme
Court of Western Australia and
has had his name entered on the Roll of Legal
Practitioners of the High Court of Australia, I very much doubt whether he is
not entitled
to act as the “solicitor on the record” in any Federal
Court proceedings: see ss 55B to 55D of the Judiciary Act 1903 and
APLA Ltd v Legal Services Commissioner of New South Wales (2005) 224 CLR
322; [2005] HCA 44 at [22] per Gleeson CJ and Heydon J. Nonetheless, I will
proceed to deal with the matter on the basis put forward in Mr Rind’s
affidavit,
viz that he needs to obtain an open practising certificate before he
is entitled to act as the “solicitor on the record”
in any Federal
Court proceedings.
- Thirdly,
during the resumed hearing of Queensland South’s application on Monday, 21
June 2010, Mr O’Gorman sought to
file and rely upon an affidavit sworn on
21 June 2010 by Mr Kevin James Smith, the Chief Executive Officer of Queensland
South.
In that affidavit, Mr Smith also sought to clarify some of the
statements made in his earlier affidavit of 1 June 2010. To begin,
Mr Smith
said that the statement in his affidavit of 1 June 2010 that Queensland South
was the legal representative for the applicants
in the Iman #2 claim was meant
to convey that Queensland South was performing its statutory functions pursuant
to s 203BB of the Act.
- Mr
Smith went on to state that the solicitor on the record for all native title
determination applications for which Queensland South
had responsibilities was
the Principal Legal Officer of Queensland South. He said from 13 February 2006
to 6 April 2010, Mr Colin
Stanley Hardie of Just Us Lawyers was retained as a
private legal practitioner to act in the role of Principal Legal Officer of
Queensland
South. He said Mr Hardie’s primary role was to manage the
legal practice of Queensland South, including to act as the solicitor
on the
record for all native title determination applications.
- Further,
Mr Smith said that on 6 April 2010, Queensland South employed Mr Shahzad Rind as
the “internal” Principal Legal
Officer and thereafter all
“management responsibilities previously undertaken by Mr Hardie were
transferred to Mr Rind”. He said, from that date, Mr Hardie’s
retainer was restricted to being the solicitor on the record for all native
title
determination applications in which Queensland South was involved. Mr
Smith expressed the expectation that Mr Rind would obtain
an open practising
certificate from the Queensland Law Society on and from 30 June 2010, at which
time he would take over the full
responsibilities of the position of Principal
Legal Officer at Queensland South.
- Mr
Smith also stated that:
- the only
statutory service that the Iman People had formally requested [Queensland South]
to undertake was the provision of representation
in the native title
determination application;
- the only
involvement that [Queensland South] had in relation to the agreement at issue in
these proceedings was to perform the certification
function pursuant to
s 203BE(5) of the Act.
- In
summary, this additional material established that Mr Rind was not, in the
relevant sense, the Principal Legal Officer of Queensland
South and therefore he
was not the solicitor on the record for the native title claim group in the Iman
#2 claim. Instead, Mr Colin
Hardie continued to occupy the role, in the
relevant sense, of the Principal Legal Officer of Queensland South and he was,
and remained,
the solicitor on the record and for the native title claim group
in the Iman #2 claim. It necessarily followed that it was now Mr
Hardie who may
have the conflict of interest that was said to arise if Queensland South were to
become a party in these proceedings.
Once this fact became apparent, I
adjourned the resumed hearing to allow Mr Hardie to appear to make any
submissions or statements
he wished to on this conflict of interest issue.
- After
a brief adjournment, Mr Hardie appeared in person. He informed me from the bar
table, without objection from any counsel,
that he was, indeed, the solicitor on
the record for the native title claim group in the Iman #2 claim. Otherwise, he
confirmed
the material contained in the further affidavits of Mr Rind and Mr
Smith. However, he added the following relevant information:
- he had not taken
any role in the current application and had not provided any legal assistance to
Queensland South in relation to
it;
- because he had
taken no role in the current application, he did not feel he was under any
conflict in relation to his continuing representation
of the native title claim
group in the Iman #2 claim;
- when taking
instructions from a native title claim group like that in the Iman #2 claim, he
considered he was bound to take into account
the policies of Queensland South,
eg if an anthropological report obtained by Queensland South indicated that the
claimants did not
hold native title rights and interests in the land, he
considered he would be bound to cease acting for those claimants as required
by
the policy of Queensland South; and
- in representing
a native title claim group such as that in the Iman #2 claim, he regarded
himself as acting directly for them as the
Principal Legal Officer of Queensland
South, rather than as a principal in the firm of Just Us Lawyers.
- The
net effect of all this additional material is that Mr Hardie, and not Queensland
South, is, in fact, the solicitor on the record
in the Iman #2 claim. It is
also clear that Mr Hardie has not acted for Queensland South in these
proceedings and does not intend
to do so. Instead, Ms Deanne Cartledge of
Gilkerson Legal has now replaced Mr Rind as the solicitor for Queensland South
in these
proceedings.
APPEARING IN LITIGATION BY A SOLICITOR
- It
hardly needs to be said that I consider it was entirely unsatisfactory that I
had to embark upon this time-consuming and meandering
process in order to
ascertain who was, in fact, the solicitor on the record for the native title
claim group in the Iman #2 claim.
That I had to, demonstrates, in my view, a
disturbing lack of compliance with the relevant Rules of Court that specify how
a party
to proceedings is to appear by a solicitor. It also demonstrates a lack
of appreciation of the importance of having a readily identifiable
person as the
solicitor on the record for a party in proceedings before the Court. While the
issue has now been resolved in this
application, I consider the situation should
not be allowed to pass without my saying something about these matters.
- First,
while native title proceedings have many unique features, the fact is they
remain litigation, ie the conduct of proceedings
before a court. As such, they
are subject to the provisions of the Act, the Federal Court of Australia Act
1976 (Cth) and the Federal Court Rules as they apply to the conduct
of native title proceedings before the Federal Court of Australia.
- The
expression “solicitor on the record” is not defined in the
Federal Court of Australia Act 1976 or Rules. However, it is implicit
from the relevant provisions of the Rules that the expression refers to the
solicitor who is nominated
to act for an applicant, in the commencing
application, or to act for a respondent, in a notice of appearance: see
O 4 r 4(1)(c)
and O 9 r 4(1)(b) respectively.
- A
party to any proceedings in the Federal Court can only appear in one of two
ways: in person, or by a solicitor: see O 4
r 14(1), O 9
r 1(1) and O 45 r 1(1). While this proposition is not expressly
stated in the Rules, it is
clearly implicit from the fact that the Rules offer
no other option, unless leave is obtained. Furthermore, support for it is
provided
by the limited circumstances in which leave may be obtained to appear
by any other person.
- For
example, O 4 r 14(2) provides that a corporation must commence and
carry on any proceedings in the Court by a solicitor,
unless it has obtained the
leave of the Court to do otherwise. There is a number of decisions of this
Court that hold that a corporation
must demonstrate a sufficient reason why it
should be allowed to appear other than by a solicitor: see, eg Molnar
Engineering Pty Ltd v Burns [1984] FCA 232; (1984) 3 FCR 68.
- To
similar effect, s 85 of the Act allows a party to native title proceedings
to appear in person, or by a barrister, or solicitor, or: “with the
leave of the Federal Court, another person”. See also the
interrelated provisions of O 78 r 42A of the Federal Court
Rules. This provision is analogous to the Court’s inherent power to
allow a party to appear other than by a solicitor. However,
it has been held
that such applications are not to be granted as a matter of course: see
Melaleuca of Australia & New Zealand Pty Ltd v Duck [2005] FCA 1481
at [10].
- It
is worth adding that, apart from O 78 r 42A (see above), O 78 of
the Federal Court Rules, which deals specifically with native title
proceedings, does not contain any express provisions that prescribe how a party
is required
to appear before the Court. However, O 78 r 3(2) provides
that: “The other Orders of these Rules apply, so far as they are
relevant and not inconsistent with this Order, to a proceeding in the Court
to
which the Native Title Act applies”. This, in turn, picks up the
provisions of the various Rules I have identified above.
- Part
of the problem in this case was that the solicitor on the record for the Iman #2
claimants was described by reference to the
solicitor who held the position of
Principal Legal Officer at Queensland South, rather than by describing a
particular solicitor
by name. The Rules clearly require that the nominated
solicitor’s name, address, telephone number, facsimile number and email
address must be provided: see O 4 r 4(1)(c) and (d) and O 9
r 4(1)(b). Curiously, the latter Rule does not
require the
solicitor’s facsimile number and email address to be stated. Nonetheless,
except where there is some statutory
provision to the contrary (eg Rule 994 of
the Uniform Civil Procedure Rules 1999 (Qld) providing that the Crown
Solicitor or other State official may appear by that person’s official
title), I do not consider that
a party will comply with these Rules by providing
the solicitor’s job title. The difficulties that arose in this case amply
demonstrate the pitfalls in that approach.
THE IMPORTANCE OF THE ROLE OF A SOLICITOR ON THE RECORD
- A
solicitor on the record in any litigation has duties to both the Court and his
or her client. However, it is significant in this
context, that a
solicitor’s duty to the Court is “paramount” or
“overriding”: see Giannarelli v Wraith (1988) 165 CLR 543 at
555 to 556 per Mason CJ and 572 per Wilson J.
- Both
sets of duties serve very important purposes in the administration of justice.
The main purpose of the former is to have an
officer of the Court who is
responsible to the Court for the proper conduct of the litigation before the
Court and who is answerable
to the Court should anything untoward occur in the
litigation: see Myers v Elman [1940] AC 282
(“Myers”). The solicitor on the record therefore represents
an essential component of the Court’s ability to maintain control
over the
litigation before it.
- As
Lord Atkin observed in Myers (at 302):
If the Court is deceived or the litigant is improperly delayed or put to
unnecessary expense, the solicitor on the record will be
held responsible and
will be admonished or visited with such pecuniary penalty as the Court thinks
necessary in the circumstances
of the case.
- Furthermore,
the responsibility of the solicitor on the record extends to the conduct of any
other solicitor, whether he or she is
a partner or an employed solicitor, or the
conduct of any clerk, who is involved in the conduct of the litigation. So much
is clear
from the observations of Lord Porter in Myers (at 335), where
his Lordship said:
In re Manby and Hawksford [1856] EngR 1011; 3 Sm. & G. 375, Hawksford, a member of a
firm of solicitors, was held responsible to the Court though it was not
suggested that he was guilty of
personal misconduct or neglect of duty, and
though his only knowledge of the case was that there was such a suit which his
partner
Manby was conducting. In that case the Court was exercising its summary
jurisdiction over its officers, and the argument was expressly
presented and
rejected that such jurisdiction extended to relief only in cases of personal
misconduct and neglect of duty.
- Of
course, the fact that the Federal Court of Australia does not maintain a Roll of
Practitioners and does not have the same disciplinary
powers as the State
Supreme Courts, does not mean that the solicitors and barristers who practice in
this Court do not owe it the
same duties: see Caboolture Park Shopping
Centre Pty Ltd (In Liquidation) v White Industries (Qld) Pty Ltd [1993] FCA 471; (1993) 45
FCR 224 at 233 to 234.
- All
these observations underscore the fact that the role of the solicitor on the
record is critical to the Court’s ability
to ensure that the cases before
it are managed efficiently, promptly and inexpensively. This is particularly so
in native title
litigation where the costs sanction against the parties has been
significantly reduced by the provisions of s 85A of the Act requiring costs
orders to be the exception in such litigation. This necessarily means that the
Court has to rely even more heavily
upon the diligence and integrity of the
solicitor on the record, among others, in the case management of native title
litigation.
These observations also go to demonstrate how important it is that
the solicitor on the record is properly identified by name and
address and all
the required contact information is provided in accordance with the
Rules.
CONTENTIONS ON THE ALLEGED CONFLICT OF INTEREST
- I
now turn to the specific discretionary matter that has been raised in this
application, viz will allowing Queensland South to become
a party in these
proceedings give rise to a conflict of interest in relation to Mr Hardie’s
fiduciary duties to the second
respondents such that I should not exercise my
discretion to allow it to do so? Before turning to consider the relevant
authorities
on this issue, I will set out a brief summary of the submissions of
counsel on this discretionary matter.
- In
addition to receiving the additional materials from Messrs Rind, Smith and
Hardie at the resumed hearing as outlined above, I
also heard submissions from
Mr Rangiah for the second respondents (excluding Ms Barnes), Mr O’Gorman,
for Queensland South,
and Ms Barnes, who appeared in person. These further
submissions were directed to the position that eventually emerged from the
additional materials provided at the resumed hearing that Mr Hardie was, in
fact, the solicitor on the record for the native title
claim group in the Iman
#2 claim. What follows is a brief summary of the original submissions made by
each counsel and Ms Barnes,
as updated by the further submissions made at the
resumed hearing.
- Mr
Rangiah submitted that I should not exercise my discretion in favour of
Queensland South becoming a party because its doing so
will inveigle Mr Hardie
in a conflict of interest. Specifically, he submitted, Mr Hardie will breach
his duty of loyalty to the
second respondents for whom he is currently acting as
the solicitor in the Iman #2 claim. In this respect, Mr Rangiah referred me
to
the decision of Barrett J in UTi (Aust) Pty Ltd v The Partners of Piper
Alderman [2008] NSWSC 219 (“UTi (Aust)”) at [30] and
following.
- He
submitted that a conflict will arise between Mr Hardie’s duty to provide
undivided loyalty to the second respondents as
his clients in the Iman #2 claim,
on the one hand, and his duty of loyalty as an agent to Queensland South as his
principal. Mr
Rangiah acknowledged that he was not able to point to any
authority that dealt with a situation that was the same as, or similar
to, this.
He submitted Queensland South was seeking to promote its own interests by
seeking to argue in these proceedings for a construction
of s 24CD(1) of
the Act which, if accepted, will be adverse to the interests of the second
respondents (excluding Ms Barnes). Mr Rangiah made it clear that
he was not
suggesting any personal wrongdoing on Mr Hardie’s part. He also stated
that he was not suggesting that this was
a situation where Queensland South held
any confidential information possessed by the second respondents.
- Mr
Rangiah also relied upon s 203BB, dealing with Queensland South’s
statutory functions to assist the Iman People in their claim and he pointed to
the conflict
that would arise in relation to those functions if Queensland South
wished, instead, to pursue its own interests, as in this case.
He submitted
s 203BB(4) highlighted the conflict that would arise because that section
would require Queensland South to refer a subsequent native title
holder seeking
assistance of this kind for separate representation. Finally, Mr Rangiah relied
upon s 203B(4), which requires Queensland South to give priority to the
protection of the interests of native title holders in discharging its statutory
functions.
- Mr
O’Gorman submitted that these proceedings were completely separate from
the Iman #2 claim proceedings in which Mr Hardie
acts as the solicitor for the
second respondents. He submitted that the former involved the second
respondents applying to be identified
as native title holders for the claim area
under s 61 of the Act, whereas the latter involved a completely different
section of the Act, ie s 24CD(1) and judicial review proceedings under a
different Act, ie the Administrative Decisions (Judicial Review) Act
1977. Mr O’Gorman also pointed out that, if it becomes a party,
Queensland South will not be raising any factual disputes in these
proceedings
and its involvement will be limited to making submissions on a question of law,
ie the construction of s 24CD(1) of the Act.
- Further,
Mr O’Gorman submitted that Mr Hardie had been the solicitor on the record
for the Iman People throughout and, most
importantly, he had not at any time
been the solicitor on the record or acted for Queensland South in these
proceedings. He submitted
Mr Hardie was in a similar position to a solicitor
who is employed by a Legal Aid Commission and who acts for clients in the course
of that employment.
- In
relation to s 203BB(4) of the Act, Mr O’Gorman submitted that no
request for assistance had been made to Queensland South to date, under that
section, and it,
therefore, did not arise for consideration. Nonetheless, even
if it did, he submitted that that section only dealt with a situation
where
Queensland South actually represented the native title claim group whereas, in
this case, Queensland South had only facilitated
Mr Hardie representing the Iman
#2 native title claim group.
A FIDUCIARY’S DUTY OF UNDIVIDED LOYALTY
- I
now turn to consider the relevant authorities on this issue. While most of
these authorities deal with applications to enjoin
solicitors from acting for,
or against, existing or former clients, I consider the principles contained in
them provide guidance
for my decision in this application. I should also add
that the courts have made it clear that the exercise of this jurisdiction
is
“extraordinary and protective”, of an “exceptional
nature”, or to be applied “only in a clear
case”: see Woodgate v Leonard [2007] NSWSC 495 at [37] per
Barrett J, TJ Board and Sons Pty Ltd v Castello [2008] VSC 91 at [30] per
Hollingworth J and Dal Pont, Law of Costs (2nd ed, LexisNexis
Butterworths, 2009), [17.20].
- There
is no doubt that a solicitor acting for a client has fiduciary obligations to
that client which include a duty of undivided
loyalty. As Mr O’Gorman
correctly observed, a solicitor employed by a legal aid service has the same
duty to his or her client:
see Re Chapman, Feenstra, Cartwright &
Gendall [1977] 2 NZLR 196 at 199 per Mahon J. For present purposes, this
duty includes a proscription against the solicitor, at the same time, acting
both
for and against that client in the same matter or proceedings – this
gives rise to an “inescapable conflict of interest”: see
Prince Jefri Bolkiah v KPMG (a firm) [1998] UKHL 52; [1999] 2 AC 222 at 234 to 235 per
Millett LJ. This proscription is reflected in O 45 r 2 of the
Federal Court Rules, which provides
that:
Where a solicitor or his partner acts as solicitor for any party to any
proceeding, or is a party to any proceeding, that solicitor
shall not, without
the leave of the Court, act for any other party to the proceedings not in the
same interest.
However, this does not apply in the
present circumstances because there is no suggestion that Mr Hardie is proposing
to act for another
party in the Iman #2 proceedings.
- This
duty of undivided loyalty continues for so long as the fiduciary relationship
continues. While there is a divergence of authority
in various State Supreme
Court decisions as to whether the duty of loyalty continues after the
relationship of solicitor and client
ceases (see Kallinicos v Hunt (2005)
64 NSWLR 561; [2005] NSWSC 1181 (“Kallinicos”) at [76] per
Brereton J; Ismail-Zai v State of Western Australia (2007) 34 WAR 379;
[2007] WASCA 150 at [20] to [24] per Steytler J; and Cleveland Investments
Global Ltd v Evans [2010] NSWSC 567 (“Cleveland
Investments”) at [37] per Ward J), since the solicitor and client
relationship between Mr Hardie and the second respondents has not yet
ceased, I
do not need to decide this question in this matter.
- Nonetheless,
there is a number of authorities which extend this proscription beyond the same
matter or proceedings to include a solicitor
concurrently acting for and against
a client in related matters or proceedings. Those authorities were examined in
UTi (Aust) at [31] to [38]. Following that examination, Barrett J
concluded (at [37]) that:
The proposition that a lawyer is duty bound not to act against a current client
“in the same matter” or “in the
same or a related
matter” may thus be seen to be a reflection of the duty to avoid
conflicting duties or conflicting loyalties,
with the “same” or a
“related” matter as no more than a description of one particular
context in which the
conflict arises. It could arise in other ways as well
– for example, where a lawyer acting for one client in a particular
suit
was called upon to attack the credit of another client who was a witness in that
case.
- Furthermore,
the Court has a power to intervene as a part of its inherent supervisory
jurisdiction to ensure the due administration
of justice: see Kallinicos
at [76] per Brereton J, Cleveland Investments at [37] per Ward J and
UTi (Aust) at [46] to [52] per Barrett J. In this instance the principle
at stake is that, not only must the solicitor’s duty be discharged,
it
must “manifestly and undoubtedly” be seen to be discharged:
see Spector v Ageda [1973] Ch 30 at 47 per Megarry J and Maguire v
Makaronis [1997] HCA 23; (1997) 188 CLR 449 at 495 per Kirby J. These sentiments were
aptly (with respect) described by Bryson J in D & J Constructions Pty Ltd
v Head (1987) 9 NSWLR 118 at 123 where he said that the courts should take
“careful measures to secure not only that justice is done but also that
it is apparent that it is done, an appearance which would not
survive any
general impression that lawyers can readily change sides”.
- Similarly,
agents cannot place themselves in a position where they owe a duty to another
which is inconsistent with their duty to
their principal: see Fullwood v
Hurley [1928] 1 KB 498 at 502 and Transvaal Lands Co v New Belgium
(Transvaal) Land and Development Co [1914] 2 Ch 488 at 503. However, as the
author points out in Finn P, Fiduciary Obligations (2nd ed, The Law Book
Company Limited, 1990) (“Finn”) at
para 581:
But the mere acceptance of multiple “fiduciary” engagements or
employments is obviously not offensive in itself. It
is the staple of the
commission agent, the solicitor, the corporate trustee, the company director and
the liquidator. The vice condemned
by the courts only arises when the
fiduciary, by his action or inaction in either or both of two relationships,
brings about an actual conflict between duties owed in each
relationship.
- To
similar effect, O’Loughlin J observed in Southern Hotels Pty Ltd, in
the matter of Temple [2000] FCA 1406 at
[17]:
An acceptance by a solicitor of plural or multiple instructions is not
necessarily wrong or impracticable. However, the loyalty
that must be given to
a client is unqualified and undivided. Hence a solicitor cannot properly
discharge his duties to one whose
interests are, or have the potential to be, in
conflict with those of another client unless the fullest disclosure has been
made.
- Examples
are provided in Finn (at para 583) of: a company director separately
undertaking to two different companies of which
he is a director to use his best
endeavours to procure the one profit-making opportunity for each of them
exclusively (see Grand Enterprises Pty Ltd v Aurium Resources Ltd (2009)
256 ALR 1; [2009] FCA 513 at [29]) and a solicitor advising both the seller and
purchaser of shares, discovering that the purchaser is unlikely to be able to
pay the
seller the purchase price.
- It
is also important to record that this fiduciary duty of undivided loyalty only
imposes proscriptive or negative duties –
as opposed to positive duties
– on the fiduciary: see Breen v Williams (1996) 186 CLR 71 at 113
per Gaudron and McHugh JJ. For present purposes, these negative duties
essentially require that, except
with the informed consent of the person to whom
the fiduciary duties are owed, the fiduciaries must do two things: they must
not
place themselves in a position where there is, or may be, a conflict between
their duties to one or more persons and that they must
not profit from the
relationship giving rise to the fiduciary duty: see Moss v Moss (No 2)
(1900) 21 LR(NSW) Eq 253 at 258 per Simpson CJ, Hospital Products Limited v
United States Surgical Corporation [1984] HCA 64; (1984) 156 CLR 41 at 67 per Gibbs CJ and
Warman International Ltd v Dwyer [1995] HCA 18; (1995) 182 CLR 544 at 557 to
558.
NO ACTUAL OR PERCEIVED CONFLICT EXISTS
- Applying
these principles to this case, I cannot see how there is any actual or perceived
conflict between the duties Mr Hardie owes
to the Iman People as his clients and
the duties he owes to Queensland South as his principal. The principles I have
outlined above
demonstrate that Mr Hardie can have concurrent
“fiduciary” engagements, in this case, as a solicitor to the Iman
People
and as an agent to Queensland South as his principal. However, the
fiduciary obligations associated with these two engagements do
not require Mr
Hardie to take positive steps to advance his duty of loyalty to either the Iman
People, or to Queensland South. Instead,
he is obligated to act to avoid a
position of actual conflict between the duty of loyalty he owes to both.
- Beyond
pointing to the existence of these two “fiduciary” engagements, I do
not consider Mr Rangiah has identified any
situation in which the duties of
loyalty Mr Hardie owes under them are in actual conflict. While Mr Hardie
mentioned a situation
where a policy of Queensland South might apply to place
him in a position of divided loyalties, he did not identify any such policy
that
actually applied in the present circumstances, nor one that might apply in the
future. Moreover, Mr Rangiah did not point to
any such policy.
- Instead,
Mr Rangiah relied upon the claim that Queensland South is seeking to promote its
own interests in pursuing a construction
of s 24CD(1) of the Act, which, if
accepted, will be adverse to the interests of the second respondents (excluding
Ms Barnes). While this may be so in broad
terms, I do not consider it
constitutes an actual conflict within the principles I have outlined above. For
one, Mr Hardie is not
involved as a solicitor, or otherwise, in assisting
Queensland South to pursue its own interests in relation to the construction
of
s 24CD(1) of the Act. Furthermore, while this situation may involve
Queensland South taking a position that is adverse to the interests of the
second
respondents, there is nothing to suggest that circumstance will have any
adverse effect on the Iman #2 claim or, more importantly,
on Mr Hardie acting
for the Iman People in that claim.
- Furthermore,
I do not consider the Iman #2 claim and these proceedings are sufficiently
related, such that the extended application
of the proscription against a
solicitor acting for and against a client in the same proceedings, could apply.
As Mr O’Gorman
pointed out, the two sets of proceedings rely upon
different pieces of legislation and are directed to different sections of the
Act. Moreover, each seeks to achieve a very different outcome. In fact, the
only common factor between the two sets of proceedings
is that the Iman
People’s native title rights and interests are involved in both. However,
I do not consider this factor could
possibly support a conclusion that the two
proceedings are sufficiently related for these purposes.
- Nor
do I consider the circumstances of the adverse interests described above call
for any intervention to ensure the due administration
of justice. There is no
suggestion that the credit or character of any of the second respondents will be
attacked or questioned
in these proceedings. Indeed, it seems to be common
ground that there will be no dispute on the facts in these proceedings and they
will be limited to a question of law. And, of course, there is no suggestion
that Mr Hardie proposes to act for any other party
in the Iman #2 claim and he
has not acted for Queensland South in these proceedings, nor does he intend to
do so. It follows that
both the perception and reality is that Mr Hardie will
not be “changing sides” if Queensland South becomes a party to
the
proceedings.
- As
to the other matters raised by Mr Rangiah, I do not consider s 203BB of the
Act is relevant. It is clear on the evidence before me that neither the second
respondents, nor Ms Barnes (or anyone else for that matter),
has asked
Queensland South to provide assistance in the discharge of the statutory
function described in that section and s 203BB(2) makes it clear that
Queensland South “must not perform” that function unless it
is requested to do so.
- Finally,
as to s 203B(4), I do not consider that provision currently applies to the
Iman People because they are not yet “native title holders”
as defined in s 224 of the Act. It may be otherwise if that provision
extended to “persons who may hold native title” (cf, for
example, the terminology s 203BB(1)(b)), or if the Iman People had already
succeeded to a determination of native title under the Act.
- For
these reasons, I do not consider that the second respondents have demonstrated
that Mr Hardie may be placed in a position of
conflict in relation to his duties
of loyalty to the second respondents if Queensland South were to become a party
to these proceedings.
That being so, I am left in a position where I consider
Queensland South has a sufficient interest in the decision the subject of
these
proceedings and no good reason has been advanced as to why I should not exercise
my discretion to allow it to be made a party.
- However,
there is another factor I consider I should take into account in deciding
whether to exercise my discretion in this application.
That is that there is
not presently a fully fledged contradictor in these proceedings. At an early
stage of the proceedings, there
was a suggestion that the Attorney-General of
the Commonwealth may intervene to take that role, but this did not eventuate.
As a
result, the only contradictors at present are the Delegate and Ms Barnes.
Of course, QGC and the second respondents (excluding Ms
Barnes) share common
interests. I used the expression “fully fledged” because, while the
Delegate has indicated through
her counsel that she intends to make submissions,
as I understand it, those submissions will be constrained by the principles set
out by the High Court in R v Australian Broadcasting Tribunal, Ex parte
Hardiman [1980] HCA 13; (1981) 144 CLR 13 at 35 to 36. As to Ms Barnes, she has indicated
that she will not be represented by a legal practitioner at the hearing. It
will
therefore be difficult for her to properly discharge the role of a proper
contradictor. It follows that, in these circumstances,
if Queensland South is
made a party in these proceedings, it will assist in providing a proper
contradictor in the proceedings.
CONCLUSION
- For
these reasons, I consider that Queensland South has a sufficient interest to
justify it being made a party in these proceedings
and I do not consider that
its so becoming a party will give rise to an actual, or perceived, conflict of
duties on Mr Hardie’s
part.
- For
these reasons, I propose to order that Queensland South be made a party in these
proceedings.
I certify that the preceding eighty-five (85)
numbered paragraphs are a true copy of the Reasons for Judgment herein of the
Honourable
Justice Reeves.
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