Northern Territory Second Reading Speeches

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VEXATIOUS PROCEEDINGS BILL 2006

Dr TOYNE (Justice and Attorney-General): Mr Acting Speaker, I move that the bill be now read a second time.

A vexatious litigant is a person who frequently and persistently seeks to commence litigation without any reasonable grounds. Such people can repeat arguments which have already been rejected by the court, disregard the court’s rulings, or generally attempt to abuse the court process. The Northern Territory courts have, over the years, experienced their fair share of such litigants. Not only do these people waste public resources by taking up the court’s time, they also cause harassment, annoyance and expense to those who are forced to defend matters which lack a reasonable basis. Despite this, it is vitally necessary to exercise care to ensure that the fundamental right of citizens to approach the courts to seek justice in accordance with the law are maintained.


Mr Acting Speaker, this bill finds an appropriate balance. On the one hand, it restricts the actions of vexatious litigants while, on the other hand, it maintains safeguards which enable these people to still commence a legal action where it is appropriate and founded.


The bill was developed through the forum of the Standing Committee of Attorneys-General, and is based on a model bill which was developed after much consultation with stakeholders around Australia. Although there are some variations in the bills which are now being developed in the other states, the uniform approach to vexatious litigants will discourage them from forum shopping, curtail litigants acting in concert, and enable similar consequences to flow from one jurisdiction to another.


Currently, there are provisions in both the Supreme Court Rules and the Local Court Rules which allow a court to stay proceedings or give judgment on the basis that a claim or proceeding is scandalous, frivolous or vexatious. However, there is no power to prevent a vexatious litigant from issuing further proceedings. This bill gives the Supreme Court the power to make a Vexatious Proceedings Order which prohibits or limits the right of such a person to take or continue to take legal action.


Vexatious Proceedings Orders may only be made by the Supreme Court. It is considered that any power to curtail a person’s common law right to institute legal proceedings must only be vested in a jurisdiction’s superior court, the Supreme Court. A similar view was reached in other states, although only the Supreme Court has the power to make Vexatious Proceedings Orders or grant leave related to vexatious litigants, this power extends to the making of orders concerning a vexatious litigant in any court or tribunal in the Northern Territory. Similarly, the Supreme Court has the power to determine an application made by a vexatious litigant for leave to bring proceedings in any court or tribunal in the Northern Territory.


Before the Supreme Court can make a Vexatious Proceedings Order, the court must be satisfied that the person has frequently instituted or conducted vexatious proceedings, or that the person is acting in concert with such a litigant. The definition of ‘vexatious proceedings’ includes proceedings that are an abuse of the process of the court, instituted to harass or annoy, cause delay or detriment, or pursued without reasonable grounds. All orders made in Australia can be considered by the Supreme Court in reaching its determination, including proceedings which were instituted before the commencement of this legislation.


If the court is satisfied that the person has met the threshold test, the Supreme Court may make an order staying all or part of any proceedings in the Territory already instituted by the person and/or an order prohibiting the person from instituting proceedings in the Territory. Once the order is made, the person or anyone else acting in concert with the person, cannot institute further proceedings without the leave of the court.


However, the bill balances this limitation on the right to bring a legal action by providing that the Supreme Court may not make a Vexatious Proceedings Order until the person in question has had the opportunity to be heard. The bill also provides that a person, the subject of a Vexatious Proceedings Order, may apply to the court to have that order varied or set aside.


In addition to the Attorney-General, Solicitor General or a Registrar of the Supreme Court, members of the public who are aggrieved by vexatious litigants may also apply to the court for a Vexatious Proceedings Order. This means that the bill is accessible to all people who have suffered as a consequence of a vexatious litigant. In order to ensure that this process is not abused, the leave of the court must first be obtained.


The bill also ensures that a person who is the subject of a vexatious proceedings order may still initiate a legitimate legal action, such as a personal injuries claim, with the leave of the court. However, there is no appeal from the decision of the court to dismiss the application. A decision by the Supreme Court is made after consideration of all the relevant facts. It is considered necessary to block off another avenue, as vexatious litigants tend by their nature to take action in any way possible to question a court’s decision, regardless of the merit of their position.


Mr Acting Speaker, I commend the bill to honourable members and table a copy of the explanatory statement.


Debate adjourned.

 


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