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Davis v Insolvency and Trustee Service Australia (No 2) [2011] FCAFC 9 (4 February 2011)
Last Updated: 11 February 2011
FEDERAL COURT OF AUSTRALIA
Davis v Insolvency and Trustee Service
Australia (No 2) [2011] FCAFC 9
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Citation:
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Davis v Insolvency and Trustee Service Australia (No 2) [2011] FCAFC
9
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Appeal from:
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Application for leave to appeal: Davis v Insolvency and Trustee Service
Australia (No 1) [2009] FCA 562Application for leave to appeal: Davis v
Insolvency and Trustee Service Australia (No 2) [2009] FCA 589Application
for leave to appeal: Davis v Insolvency and Trustee Service Australia (No 3)
[2010] FCA 69
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Parties:
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PETER LEWIS DAVIS v INSOLVENCY AND TRUSTEE
SERVICE AUSTRALIA, CHILD SUPPORT REGISTRAR, MAGISTRATES OF NEW SOUTH WALES and
BEALE AND
ORS AS TRUSTEES OF THE ESTATE OF DR DAVIS
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File number(s):
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NSD 52 of 2009 NSD 229 of 2010
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Judges:
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KEANE CJ, BESANKO & PERRAM JJ
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Date of judgment:
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Catchwords:
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JUDGMENTS AND ORDERS – Review of judgment before perfection
– Whether the Court has proceeded under a misapprehension of fact or law
not solely
attributable to the applicant
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Words and Phrases:
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“Proceeding under this Act”
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Legislation:
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Cases cited:
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Date of last submissions:
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17 December 2010
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Place:
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Sydney
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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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McKells Solicitors
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Solicitor for the Second Respondent:
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Mr N Gouliaditis of Australian Government Solicitor
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IN THE FEDERAL COURT OF AUSTRALIA
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NEW SOUTH WALES DISTRICT REGISTRY
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PETER LEWIS DAVISApplicant
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AND:
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INSOLVENCY AND TRUSTEE SERVICE
AUSTRALIAFirst Respondent
CHILD SUPPORT REGISTRAR Second Respondent
MAGISTRATES OF NEW SOUTH WALES Third Respondent
BEALE AND ORS AS TRUSTEES OF THE ESTATE OF DR DAVIS Fourth
Respondent
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KEANE CJ, BESANKO & PERRAM JJ
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DATE OF ORDER:
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WHERE MADE:
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THE COURT ORDERS THAT:
- The
applicant’s Notice of Motion filed on 8 December 2010 be dismissed with
costs.
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.
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IN THE FEDERAL COURT OF AUSTRALIA
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NEW SOUTH WALES DISTRICT REGISTRY
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GENERAL DIVISION
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NSD 229 of 2010
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BETWEEN:
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PETER LEWIS DAVIS Applicant
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AND:
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INSOLVENCY AND TRUSTEE SERVICE AUSTRALIA First
Respondent
CHILD SUPPORT REGISTRAR Second Respondent
MAGISTRATES OF NEW SOUTH WALES Third Respondent
BEALE AND ORS AS TRUSTEES OF THE ESTATE OF DR DAVIS Fourth
Respondent
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JUDGES:
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KEANE CJ, BESANKO & PERRAM JJ
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DATE OF ORDER:
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4 FEBRUARY 2011
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WHERE MADE:
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SYDNEY
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THE COURT ORDERS THAT:
- The
applicant’s Notice of Motion filed on 8 December 2010 be dismissed with
costs.
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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NEW SOUTH WALES DISTRICT REGISTRY
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GENERAL DIVISION
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NSD 52 of 2009 NSD 229 of 2010
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BETWEEN:
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PETER LEWIS DAVIS Applicant
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AND:
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INSOLVENCY AND TRUSTEE SERVICE AUSTRALIA First
Respondent
CHILD SUPPORT REGISTRAR Second Respondent
MAGISTRATES OF NEW SOUTH WALES Third Respondent
BEALE AND ORS AS TRUSTEES OF THE ESTATE OF DR DAVIS Fourth
Respondent
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JUDGES:
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KEANE CJ, BESANKO & PERRAM JJ
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DATE:
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4 FEBRUARY 2011
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PLACE:
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SYDNEY
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REASONS FOR JUDGMENT
THE COURT
I
- On
3 December 2010, this Court made orders in two related proceedings concerning
the applicant, Mr Davis. They concerned his grievances
about methods of debt
enforcement employed by the Commonwealth in collecting child support payments
from him. The reasons why two
proceedings were brought are not presently
relevant; it suffices to say that one was an application for leave to appeal
from various
orders made by Foster J (proceeding NSD 52 of 2009) and the other a
purported appeal from the same orders (proceeding NSD 229 of
2010).
- The
result of these applications was that this Court dismissed Mr Davis’
appeal as incompetent and dismissed his application
for leave to appeal:
Davis v Insolvency and Trustee Service Australia [2010] FCAFC 141. By a
notice of motion filed on 8 December 2010, Mr Davis seeks to re-agitate his
application before this Court,
requesting that the Court vacate its judgment of
3 December 2010 and reconsider afresh its reasons in light of matters disclosed
in an accompanying affidavit. Apart from the matters raised by Mr Davis, the
Court also reserved in its first decision the question
of whether, in light of s
121 of the Family Law Act 1975 (Cth) and s 105 of the Child Support
(Registration and Collection) Act 1988 (Cth) (“the Collection
Act”), it was appropriate for the Court to permit its reasons to be
provided to the Australian
Legal Information Institute (“AustLII”)
for publication on its website at www.austlii.edu.au.
- We
conclude that Mr Davis’ application for reconsideration should be
dismissed with costs and that there is no reason not to
provide our original
reasons (and these reasons too) to AustLII. In Part II we deal with Mr
Davis’ claim for reconsideration
and in Part III with the publication
question.
II
The application for reconsideration
- It
is a well established principle that “[a] superior court of justice... has
full power to rehear or review a case until judgment
is drawn up, passed and
entered...”: Texas Co (Australasia) Ltd v Federal Commissioner of
Taxation [1940] HCA 9; (1940) 63 CLR 382 at 457 per Starke J, cited with approval in
DJL v Central Authority [2000] HCA 17; (2000) 201 CLR 226 at [34] per Gleeson CJ,
Gaudron, McHugh, Gummow and Hayne JJ. The Federal Court, by reason of
s 5(2) of the Federal Court of Australia Act 1976 (Cth), is a
superior court of record and, therefore, subject to the necessary factual
precondition of the orders having not been
entered, has such a power.
Additionally, the Court is empowered to vary or set aside a judgment or order
before it has been entered
under Order 35 rule 7(1) of the Federal Court
Rules.
- The
entry of orders in the Federal Court is governed by Order 36 rule 3(1) which
states that orders may be entered by authentication
(defined in rule 7) either
by a Registrar (under rule 3(2)) or a Judge of the Court (under rule 5). In
these proceedings, the orders
made on 3 December 2010 have not been entered and,
therefore, the Court retains the power to review its own decision. It is
important
to note that entry of the Court’s orders onto its computerised
system “Casetrack” (which has occurred in this case)
does not
constitute the entry of orders for the purposes of the Court’s rules. So
much was recently made clear by the High
Court in John Alexander's Clubs Pty
Ltd v White City Tennis Club Ltd [2010] HCA 19; (2010) 241 CLR 1 at [152].
- The
principles surrounding the Court’s power to review its own judgment before
its perfection are clear: “[w]hat must
emerge, in order to enliven the
exercise of the jurisdiction, is that the Court has apparently proceeded
according to some misapprehension
of the facts or the relevant law and that this
misapprehension cannot be attributed solely to the neglect or default of the
party
seeking the rehearing.” (Autodesk Inc v Dyason (No 2) [1993] HCA 6; (1993)
176 CLR 300 at 303 per Mason CJ). Because of the importance of the public
interest in the finality of litigation, it is a jurisdiction “to
be
exercised with great caution” (at 302). The onus is on the applicant to
demonstrate that he or she has not been heard:
Autodesk at 302 citing
Wentworth v Woollahra Municipal Council [1982] HCA 41; (1982) 149 CLR 672 at 684 per
Mason ACJ, Wilson and Brennan JJ.
- In
his affidavit in support of the present application and in the submissions filed
on his behalf, Mr Davis puts forward four principal
matters which he suggests
provide a basis for this Court conducting a review of its reasons: first, so he
says, the Court erroneously
found that there was no evidence to suggest that he
could not meet his child support obligations except by sale of his property in
Queensland or by utilising proceeds received from his father’s will;
secondly, Mr Davis was “unaware it was necessary...
to prove [he] was
impecunious in order to succeed” and he has thereby been procedurally
deprived of an opportunity of putting
on such evidence; thirdly, the
Court had erred in fact at [21] in concluding that the Queensland property was
owned by his wife and should have concluded that
it was jointly owned by Mr
Davis and his wife at law and in equity; and, fourthly, that the Court had
failed to understand his case
or deal with his various arguments.
- In
summary, these submissions should all be rejected for the following reasons.
First, there was no evidence before the Court during
the hearing which suggested
that Mr Davis was unable to meet the claims of the Child Support Registrar
(“the Registrar”).
Secondly, Mr Davis was not “unaware it was
necessary... to prove [he] was impecunious in order to succeed” because
during
the course of the hearing of the appeal his counsel, Mr King, was
expressly told by the Bench that the absence of evidence about
Mr Davis’
impecuniosity had consequences for the leave application. Thirdly, the property
being discussed in paragraph [21]
of the Court’s reasons is the property
referred to in paragraph [20] and that, in turn, is Mr Davis’
wife’s
claim for the economic harm caused to her by the enforcement of the
orders against his interest in the land. In any event, if it
mattered, contrary
to Mr King’s submissions, Mr Davis is no longer the registered proprietor
of an interest in the Queensland
property, that interest having already been
transferred to the Registrar. Fourthly, the Court expressly dealt with each of
the matters
raised during the hearing. It is necessary to deal with these
points in turn.
- Mr
Davis swears in his affidavit of 8 December 2010 that “[c]ontrary to the
statement of the Court I do not have the financial
ability to meet the child
support debt claimed...”, referring to the Court’s reasons at
paragraph [3] and Part V. By Part V, we take that to be a reference to
paragraph [13] of the reasons for judgment which reiterated what was stated at
paragraph [3].
What the Court found at paragraph [3] was that it was “not
suggested” by Mr Davis that he was unable to meet his
child support
obligations. On the application for a rehearing Mr Davis accepted that he did
not lead evidence at the original hearing
before the Full Court of his inability
to meet those obligations. He has now led additional evidence on the
application for a rehearing
which, he submits, demonstrates his inability to
satisfy those obligations. However, that is not the question. The public
interest
in the finality of litigation does not permit the losing side to reopen
a case just because, in retrospect, it can be seen that better
evidence about
some matter in dispute might have changed the result. Were it otherwise, there
would be no end to litigation. It
is for that reason that the passages cited
above from Autodesk Inc v Dyason (No 2) emphasise that an applicant for a
rehearing is obliged to show not just that the Court’s original factual
conclusion is incorrect
but that the Court’s misapprehension of the facts
“cannot be attributed solely to the neglect or default of the party
seeking the rehearing”.
- That
test directs attention to the manner in which the application for leave to
appeal was conducted on Mr Davis’ behalf.
To obtain a grant of leave to
appeal Mr Davis had to prove substantial injustice would ensue were leave not to
be granted. That
was a requirement directly flowing from Décor
Corporation Pty Ltd v Dart Industries Inc [1991] FCA 655; (1991) 33 FCR 397 which is a
rudimentary aspect of appellate practise. The sale of a non-residential asset
– the property in question was a
rental property – and the reduction
of Mr Davis’ debt by the proceeds of sale did not affect Mr Davis’
net asset
position in any material way (leaving aside sale expenses). It was
not a family home and neither Mr Davis nor his wife were living
in it. The
difficulties this presented in establishing substantial prejudice were leave not
to be granted were at once obvious for
it is difficult to discern any
substantial injustice in permitting an undisputed creditor to levy execution
against a debtor’s
non-residential assets when the debtor simply refuses
to pay. It was therefore necessary for Mr Davis to show that it was not a
case
of him simply refusing to pay what he owed and that his present predicament
arose from an inability to pay. If he did not do
so the unavoidable inference
was that the entire debate was taking place only because Mr Davis would not pay
the debt.
- Not
only were these matters obvious but, in any event, the Court pointed them out
during the course of argument. Mr King was put
very precisely on notice that
the Court was concerned that the evidential record before it contained no
evidence that Mr Davis was
unable to meet his child support obligations. This
is confirmed by two exchanges which took place during the course of the hearing.
The first was between the Chief Justice and Mr
King:
KEANE CJ: Mr King, is there evidence – I mean, you may say it’s
irrelevant, and if you do, please say so. Is there
evidence that your client
doesn’t have any other means of paying the
$62,000?
MR KING: I think the answer to that is there’s no evidence one way or
the other.
....
KEANE CJ: ...But just for my purposes, the position is that there is no
evidence one way or the other as to whether you client has
means other than this
property, or other than the sale of this property - -
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MR KING: Or the estate.
KEANE CJ: Quite.
MR KING: Yes, that’s right.
(emphasis added)
- This
was followed by an exchange between Perram J and Mr King immediately prior to
the completion of the hearing:
PERRAM J: Before you go to that, can I just say the difficulty I have with that
is that insofar as the sale were to proceed in a
way that might actually bring
about some loss sounding in damages, absent evidence that your client
isn’t able to discharge
the debt, and thus obviate any interference with
the property, it’s hard to see that any such damage isn’t
self-inflicted.
MR KING: Well, there is no evidence that he couldn’t, your Honour. There
is no evidence that he - - -
PERRAM J: No, no, quite, quite. But what I’m concerned about is that
that deficit, that absence of evidence is a deficit
in your case. It’s
certainly a deficit in any argument that there is a substantial injustice or
that there would be a substantial
injustice that would be left uncured by a
refusal of leave to appeal.
MR KING: Well, the onus is on my friend in section 31A cases, as Gordon J
pointed out.
PERRAM J: No, no, so far as leave to appeal is concerned, we come back to the
point that if you lose on the first point, you’re
in leave territory and
if you’re in leave territory you’re the one who has to show a
substantial injustice.
MR KING: Yes. Well, can I just deal with it.
PERRAM J: What I’m struggling – yes.
MR KING: Deal with it in two stages: we respectfully submit that we don’t
lose on the first point.
PERRAM J: I understand, we understand.
MR KING: Can I just briefly deal with it.....
[After this point Mr King proceeded to explain why leave to appeal was not
required and did not return to the evidentiary
point.]
- A
number of things flow from these exchanges. To begin with, Mr King expressly
conceded that there was no evidence either way concerning
this topic. Despite
this deficiency in the evidence being expressly raised together with the
implications it posed for the leave
application, no suggestion was made to the
Court that it should proceed other than on the basis of that which Mr King had
told it,
namely, that there was no evidence one way or the other. Mr King was
expressly told the absence of this evidence was a problem for
Mr Davis
(“the absence of [such] evidence is a deficit in your case”). In
those circumstances, there could be no
procedural unfairness in the Court
proceeding on the very basis explained to the Court by Mr King, namely, that
there was no evidence
before it which suggested Mr Davis could not meet his
obligations.
- The
question then is whether Mr Davis’ failure at the hearing to lead evidence
about his inability to meet his child support
obligations is such, in the
language of Autodesk v Dyason (No 2), that it should not “be
attributed solely to the neglect or default of the party seeking the
rehearing”. It is plain that
Mr Davis was given an opportunity to deal
with the issue at the hearing and, indeed, more than once. His counsel was
invited to
deal with the point but did not do so. No submission was made as to
why the logic of the argument did not flow; no argument was
put that it would be
unfair to proceed along those lines; no time was requested in order to seek
instructions on the issue; and no
application was made to lead further evidence
about the matter. Whatever the underlying causes of these decisions might be
they
are all ultimately attributable to Mr Davis. We reject the first and
second bases articulated for reconsideration.
- We
turn then to the third. One of Mr Davis’ many arguments was as follows:
(a) his wife had a joint share with him of a property
in Queensland; (b) the
compulsory sale of his interest in that land harmed the value of her interest in
the land; (c) the law authorising
that to occur operated, therefore, as a law
with respect to the acquisition of property and hence fell foul of the guarantee
contained
in s 51(xxxi) of the Constitution. The property compulsorily
acquired (or potentially compulsorily acquired) from Mr Davis’ wife was
not her land as such (which
she still plainly has) but the diminution caused to
the value of her interest in that land by the compulsory sale of Mr Davis’
interest in the same land. This is not, it may be accepted, an especially easy
argument to follow nor one in which clarity appears
as a primary virtue. We
rejected it at paragraphs [20] to [21] of our first judgment. We concluded that
it had no substance as
a matter of principle and, further, that Mr Davis had no
standing to complain about an acquisition of his wife’s property
(“We
would add that, in any event, Mr Davis has no standing to pursue the
point since the property allegedly acquired was his wife’s
and not
his”). Mr Davis now claims this was an error because, in fact, he jointly
owned the Queensland property with his wife.
However, on this branch of the
argument, the property put forward by Mr King as being susceptible to compulsory
acquisition was
part of the value of his wife’s interest in her share of
the Queensland land and that interest was plainly owned only by Mr
Davis’
wife and not Mr Davis. That was the argument. Accordingly, Mr
Davis’ evidence that the Queensland property
is owned jointly by him and
his wife passes well wide of the point in paragraph [21].
- In
any event, if it mattered, we reject Mr Davis’ evidence which does not
grapple with the legal consequences of the Registrar’s
actions. Mr
Davis’ interest was transferred to the Registrar on 24 July 2007 and has
not been his at law since. He does have
an entitlement to any residual proceeds
from sale after the satisfaction of his debt to the Commonwealth but that does
not give him
any interest in the Queensland property. His interest is a
contingent one in a fund which cannot come into existence until what
was
formerly Mr Davis’ legal interest in the property is sold. Whilst he may
ultimately have an interest in that fund (if
the proceeds of sale are more than
the amount of the Commonwealth’s debt together with the sale expenses),
that contingent
interest gives him no proprietary interest in the land.
- The
fourth argument is that the Court failed to understand Mr Davis’ case and
did not deal with it. This is a serious suggestion
to make and because of that
we will set out paragraphs [6] and [7] of the submissions filed on his
behalf:
- As
to [c] The Court at no stage articulates what case it is that the
Applicant/Appellant was bringing to the Court. The case concerned
more that Mr
Davis’ encounter with the child support “enforcement regime”
[Reason 3]. It involved fundamental
questions as to whether the Commonwealth
could access a citizen’s property. The vehicle of the claim brought in
the Court
was for an injunction founded on an equity in Queensland land [see
Meagher Gummow and Lehane Equity Doctrines and Remedies
4th ed para 21 – 330 ff] to restrain the First
Respondent from executing orders made ultra vires a New South Wales Court
not because the Commonwealth parliament had conferred laws upon that
Court
[which was not disputed] but because the machinery of the NSW Court was not
adapted to nor capable of execution of the orders
made, and because the NSW
Local Court had no jurisdiction to make the orders it made [cf Yirrell v Yirrell
[1939] HCA 33; 1939 62 CLR 287], and for damages or compensation for wrongful interference in
the property rights of the Applicant to be assessed [Riverina Transport
v
Victoria [1937] HCA 33; [1937] 57 CLR 327]. There was a further claim regarding the operation
of the rule in Commr for Stamp Duties [Qld] v Livingston [1960] HCA 94; [1960] 107 CLR 411 with
respect to an allegedly defective notice of claim not on the estate but on the
solicitors for the deceased. In short Mr Davis
confronted head on [instead of
ignoring his responsibilities] the entitlement of the Commonwealth to adversely
affect his property
interests in the intrusive modes conducted.
- Mr
Davis was at least entitled to be heard on the legality of the threatened
conduct of the First Respondent which so far as the Court
is concerned appears
never to have been addressed at all. With respect his appeal ought not to have
been rejected because there
was no substantial injustice to him, as the remedy
“lay within his own hands”. That observation can be made about many
cases. Mr Davis brought a justiciable dispute or matter to the only Court
[apart from the High Court] which could decide the point.
- There
are six points here:
(1) there was no articulation by the Court of
Mr Davis’ argument;
(2) the Court inaccurately summarised Mr Davis’ case as merely an
encounter between Mr Davis and the enforcement régime
provided for
by the Collection Act;
(3) The case involved fundamental questions as to whether the Commonwealth
could access a citizen’s property;
(4) The argument was that the machinery of the New South Wales Local Court
“was not adapted to nor capable of execution of the
orders made” and
also that the Local Court had no jurisdiction to make the orders it made;
(5) There was a claim for damages or compensation for wrongful interference
in the property rights;
(6) There was a further question regarding the operation of the rule in
Livingston v Commissioner for Stamp Duties (Qld) [1960] HCA 94; (1960) 107 CLR 411.
- These
suggestions are without substance. As to (1), Mr Davis’ arguments were
fully set out at [17]. As to (2), whilst it
is true that the Court said in an
introductory part of its judgment that the case concerned “Mr Davis’
encounter with
this enforcement regime” (at [3]) it is scurrilous to
suggest, as Mr King’s submission do at [6], that this was all the
Court
considered Mr Davis’ case to be. Paragraphs [17]-[37] dealt
explicitly with each of Mr King’s submissions.
- As
to (3), the constitutional argument (which we would describe as insubstantial
rather than fundamental) was dealt with at [20],
coupled with a finding that Mr
Davis had no standing to pursue the argument at [21].
- As
to (4), contrary to the submissions of Mr King, each of these matters was
explicitly dealt with in the Court’s reasons.
The argument that the
mechanism of the Local Court was not adapted or capable of executing the
putative orders was dealt with at
[29]-[33]; the argument that it could not
order execution outside of NSW at [32].
- As
to (5), no part of the application for leave to appeal involved any
consideration of Mr Davis’ claims in tort. None of
the actions of which
Mr Davis complains could be tortious if they were authorised by law. Mr
Davis’ arguments to Foster J
and to us focused on establishing that the
Registrar’s actions were not authorised by law. It is only if that was
established
could the tort issues then arise. There was no debate about the
tort claims before us separate from the questions of whether the
actions of the
Registrar were authorised by law. The Court did not analyse the mechanics of
the tort claims not only because Mr
King’s submissions did not do so but
also because no occasion arose for it to do so. The suggestion that the Court
did not
refer to the tort claims is also wrong: see [6].
- As
to (6), this argument was expressly dealt with at [25]. The Court concluded
that the question of whether Mr Davis did or did
not have a present entitlement
in the estate was irrelevant because s 72A did not require a present
interest.
- The
making of an application for a rehearing is a serious application because it
runs counter to the public interest in the finality
in litigation. It occasions
expense to the other parties and to the public purse. It is not a trifle to be
launched on a whim still
less without reading the judgment the subject of the
application. We say this because paragraphs [6]-[7] of the submissions bearing
Mr King’s name (but not his signature) either show no sign of their author
having read paragraphs [17]-[37] of the judgment
or, in the alternate, having
understood them. In either case, paragraphs [6]-[7] of that submission fall
well short of the standard
which this Court is entitled to expect of those who
appear before it, particularly those with substantial experience.
- In
those circumstances, the Court’s initial conclusion that no substantial
injustice to Mr Davis would result if leave were
refused should not be revisited
given the explicit opportunity afforded to him at the first hearing to deal with
that issue. In any
event, for the reasons given the Court’s earlier
conclusion that there was no reason to doubt the correctness of the learned
primary judge’s conclusions remains correct. Mr Davis still fails,
therefore, to satisfy either of the cumulative requirements
of Décor
Corporation Pty Ltd v Dart Industries Inc and his application for leave to
appeal remains one which must be dismissed. It follows from that conclusion
together with the observations
in the preceding paragraph that the present
application for the Court to review its orders is one which should not have been
made.
It must, therefore, be dismissed with costs.
III
Whether the Court’s reasons should be provided to AustLII for publication
on the website www.austlii.edu.au
- It
is the practice of this, and many other Courts, to make its reasons for judgment
available to AustLII so that it may put them
up on its website at
www.austlii.edu.au. A question arises as to whether, in this case, the Court
should direct that its reasons
not be provided to AustLII for publication.
- The
issue arises because there is a prohibition in s 121(1) of the Family Law Act
1975 on the reporting of any proceeding “under” that Act in a
way which identifies, inter alia, parties to such a proceeding.
The Family
Law Act 1975 is applied by s 105(1)(i) the Collection Act to proceedings
under that Act “as if....the proceedings were proceedings [under the
Family Law Act 1975]”. The combined operation of s 121(1) of
the Family Law Act 1975 and s 105(1) of the Collection Act is, therefore,
to prohibit any reporting of a proceeding “under” the Collection Act
which identifies the parties to it.
- The
two proceedings before this Court did not involve any claim by Mr Davis which
was authorised to be made either under the provisions
of the Family Law Act
1975 or the Collection Act. Consequently the two proceedings before us
could not have been said to be “proceedings under”
either of those
statutes: Felton v Mulligan [1971] HCA 39; (1971) 124 CLR 367 at 382-383 per Menzies J;
Australian Forest Managers Ltd (in liq) v Bramley (1996) 65 FCR 13 at 18
per Lindgren J; Re Struthers (Liquidator of Project Management, Architecture
and Construction Interior (PACI) Pty Ltd) (No 3) [2005] NSWSC 1113; (2005) 64 NSWLR 392 at [14]
per Brereton J. Accordingly, our reasons do not of themselves engage the
prohibition.
- However,
our reasons do contain references to three other proceedings each of which was a
proceeding “under” the Collection
Act and our reasons do identify
the parties to those proceedings. Consequently, a report of our reasons will
incidentally result
in a report of those proceedings which identifies the
parties to them and by those means will indirectly engage the prohibition.
The
first proceeding is that referred to at paragraph [3] of our reasons and
consists of the proceeding before the Magistrate on
8 November 2005 in which the
Registrar ordered Mr Davis to pay $27,629.11. It is necessary, for reasons
which will shortly become
apparent, to characterise the nature both of that
amount and of those proceedings. Mr Davis had been assessed as owing child
support
under the Child Support (Assessment) Act 1989 (Cth) (“the
Assessment Act”). Because he had an assessment under that Act he had a
“registrable maintenance liability”
under the Collection Act by
virtue of s 19(2) of that same Act so that the proceedings before the Magistrate
were proceedings to
which s 113(1) of the Collection Act applied. It is in
these terms:
Debts due by a payer may be recovered by the Registrar or the payee
(1) A debt due to the Commonwealth under this Act in relation to a registered
maintenance
liability:
(a) is payable to the Registrar in the manner and at the place prescribed;
and
(b) may be sued for and recovered
by:
(i) the Registrar suing in his or her official name; or
(ii) the payee of the liability suing in accordance with section 113A;
and
(c) may be recovered
in:
(i) a court having jurisdiction for the recovery of debts up to the amount of
the debt; or
(ii) a court having jurisdiction under this
Act.
...
- Section
113(1)(b)(i) clothed the Registrar with the power to sue Mr Davis in the Local
Court and to recover from him the debt owing
then to the Commonwealth. The
proceedings which then ensued before the Magistrate were proceedings to recover
the debt within the
meaning of s 113(1)(c)(i). This is of significance because
proceedings under that provision are expressly exempted from the general
application of the Family Law Act 1975 by the terms of s 105(1) of the
Collection Act itself so that s 121(1) does not apply to such a proceeding.
Section 105(1) provides:
(1) The Family Law Act 1975 (other than Part X of that Act), the standard Rules
of Court and the related Federal Magistrates Rules
apply, subject to this Act
and with such modifications as are prescribed by the applicable Rules of Court,
to proceedings under this
Act (other than proceedings under subparagraph
113(c)(i)) as
if:
(a) the proceedings were proceedings under that Act;
(b) the proceedings were proceedings instituted under that Act;
(c) a court having or exercising jurisdiction in the proceedings were a court
having or exercising jurisdiction under that Act;
(d) a decree made in the proceedings were a decree made under that Act;
(e) matters arising in the proceedings were matters arising under that Act;
and
(f) any other necessary changes were
made.
...
(emphasis added)
- The
emphasised words show that there is no prohibition on the publication of a
report which discloses that Mr Davis was party to
a proceeding under s
113(1)(c)(i). The proceedings before the Magistrate on 8 November 2005 bore
that character. It follows that
there is no prohibition on identifying the
parties to it.
- The
second and third proceedings under the Collection Act to which we referred (at
paragraph [3]) were the Full Court of the Family
Court’s decision in PD
v CD [2005] FamCA 827 and the transcript of the application for special
leave to appeal to the High Court from that decision: Davis v Davis
[2007] HCATrans 71. A report of paragraph [3] would reveal that Mr and Mrs
Davis were the parties to the proceedings in PD v CD. The proceeding
heard by the Full Court of the Family Court, however, was Mr Davis’
application for leave to appeal from a decision
earlier given by a Magistrate to
order him to pay the amount of a child support assessment under the Assessment
Act. Mr Davis sought
to contend on the leave application that the Magistrate
should not have done this because the Assessment Act was constitutionally
invalid. We would characterise such an application as part of a proceeding to
recover a “registered maintenance liability”
and hence to be an
aspect of a proceeding under s 113(1)(c)(i). Consequently, the prohibition
erected by s 105(1) did not apply
to the proceeding before the Full Court. For
the same reasons, it did not apply to the application for special leave to
appeal to
the High Court from that decision: Bankstown Handicapped
Children’s Centre Association v Hillman [2010] FCAFC 11; (2010) 182 FCR 483 at [13] per
the Court.
- It
follows that, although our reasons reveal that the parties to PD v CD
[2005] FamCA 827 were Mr and Mrs Davis, those proceedings were not
proceedings to which s 105(1) (and hence s 121(1)) applied. Consequently, a
report
of our reasons could not infringe s 121(1). In those circumstances, it
would be inappropriate for us to direct that our reasons
not be provided to
AustLII.
- Since
there are no proceedings to which either s 105(1) of the Collection Act or
s 121(1) of the Family Law Act 1975 apply it is not necessary to
consider either of the following issues which we reserve to another
occasion.
- The
first concerns the exception to the general prohibition in s 121(1) of the
Family Law Act 1975 on publication carved out by s 121(9)(e). It is in
these terms:
(9) The preceding provisions of this section do not apply to or in relation
to:
...
(e) the publishing of any publication bona fide intended primarily for
use by the members of any profession,
being:
(i) a separate volume or part of a series of law reports; or
(ii) any other publication of a technical character;
or
...
- In
Atkinson v Commissioner of Taxation (No 2) [2000] FCA 637 Lindgren J
considered the operation of this provision in relation to websites such as
AustLII’s. His Honour (at [7]-[8]) expressed
doubts as to whether the
reports on the websites such as AustLII’s formed part of a “separate
volume or part of a series
of law reports” on the basis that those words
might connote conventionally published law reports. This was particularly so,
his Honour thought, when account was taken that s 121(9) was introduced in 1975.
However, the operative basis for his Honour’s decision was the conclusion
that what appeared on the
website was not “primarily for use by the
members of any profession”. This involves an issue of statutory
interpretation
about which it is not appropriate to make any remark. His
Honour’s operative conclusion involves the interpretation of the
words
“members of any profession” and, in particular, the determination of
whether those words includes members of the
legal academy who, material before
us suggested, were the largest users of AustLII. It also involves a question of
fact about the
intentions of AustLII in publishing judgments on its website. It
would be inappropriate to express views about either of those matters.
- The
second issue concerns the Registrar’s submission that this Court could
approve the publication of the reasons pursuant
to s 121(9)(g) which provides an
exception from the general prohibition where:
(g) publication of accounts of proceedings, where those accounts have been
approved by the court.
- There
is a question as to whether the court referred to in this provision is the court
seized of the proceeding or whether it refers
to any court. There may be much
to be said for the view that that provision refers to the court seized of the
proceeding since that
court is most likely to have informed views on the
question of whether publication should or should not occur. For example, if a
proceeding before the High Court were subject to the prohibition in s 121(1) it
would be surprising if this Court could approve a publication of that which the
High Court had not. However, that question does
not presently arise.
- Mr
Davis’ motion for the Court to reconsider its decision must be dismissed
with costs. We make no direction preventing the
release of our reasons to
AustLII.
I certify that the preceding thirty-nine (39)
numbered paragraphs are a true copy of the Reasons for Judgment herein of the
Honourable
Chief Justice Keane and Justices Besanko & Perram.
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