Victoria International Container Terminal Limited v Lunt [2021] HCA 11 (7 April 2021)
Last Updated: 7 April 2021
HIGH COURT OF AUSTRALIA
KIEFEL CJ,
GAGELER, KEANE, GORDON AND EDELMAN JJ
VICTORIA INTERNATIONAL CONTAINER
TERMINAL LIMITED APPELLANT
AND
RICHARD SIMON LUNT & ORS RESPONDENTS
Victoria International Container Terminal Limited v
Lunt
[2021] HCA 11
Date of Hearing: 9 February 2021
Date
of Judgment: 7 April 2021
M96/2020
ORDER
Appeal dismissed.
On appeal from the Federal Court of Australia
Representation
S J Wood QC with N Burmeister for the appellant (instructed by Seyfarth Shaw
Australia)
N J Williams SC with C Tran and N K Kam for the first respondent (instructed
by Maurice Blackburn Lawyers)
Submitting appearances for the second, third and fourth respondents
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
Victoria International Container Terminal Limited v Lunt
Courts – Abuse of process – Where Fair Work Commission
approved enterprise agreement – Where approval of enterprise
agreement
supported by union – Where first respondent was longstanding member of
union – Where first respondent brought proceedings seeking to quash
approval of enterprise agreement – Where appellant sought
summary
dismissal of proceedings on basis they were abuse of process – Where
proceedings funded by union – Where union
unwilling to bring proceedings
in own name because of risk of discretionary refusal of relief – Whether
deployment of first
respondent as "front man" for union amounted to abuse of
process by bringing administration of justice into disrepute – Whether
choice of first respondent as plaintiff prevented scrutiny of union's
acquiescence in approval of enterprise agreement – Whether
power to stay
or summarily dismiss proceedings informed by considerations of deterrence or
punishment.
Words and phrases – "abuse of process", "administration of justice",
"bring the administration of justice into disrepute", "deterrence",
"discretionary grounds for the refusal of relief", "enterprise agreement",
"forensic or juridical advantage", "front man", "illegitimate
or improper
purpose", "integrity of the court's own processes", "lack of candour", "motive",
"punishment", "stay of proceedings",
"summary dismissal", "trade union", "true
moving party".
- KIEFEL CJ,
GAGELER, KEANE AND GORDON JJ. On 19 October 2016, the Fair Work
Commission ("the Commission") approved an enterprise
agreement upon an
application by the appellant, Victoria International Container Terminal Limited.
The application to the Commission
was made with the support of the Maritime
Union of Australia ("the MUA"), the trade union that later amalgamated with
the Construction,
Forestry, Mining and Energy Union ("the CFMEU") to form the
fourth respondent, the Construction, Forestry, Maritime, Mining and Energy
Union
("the CFMMEU"). More than a year later, the CFMMEU arranged for the first
respondent, Mr Lunt, to bring proceedings in the
Federal Court of Australia
seeking an order in the nature of certiorari to quash the Commission's approval
of the enterprise agreement
on the ground that the Commission's approval was
beyond its jurisdiction.
- On
an application by the appellant, the primary judge (Rangiah J) concluded
that the proceedings brought by Mr Lunt should be summarily
dismissed as an
abuse of process because they were brought for the improper purpose of
benefiting the CFMMEU. The Full Court of the
Federal Court of Australia reversed
the decision of the primary judge. For the reasons that follow, the decision of
the Full Court
was correct and should be upheld, and the appeal
dismissed.
The Enterprise Agreement
- On
6 October 2016, the appellant applied to the Commission for approval of the
Victoria International Container Operations Agreement 2016
("the Enterprise
Agreement")[1].
On 10 October 2016, the MUA filed with the Commission a statutory
declaration in support of the application for approval of the
Enterprise
Agreement, and a notice pursuant to the Fair Work Act 2009 (Cth)
("the Act") that it wished to be covered by the Enterprise
Agreement[2]. On
19 October 2016, the Commission approved the Enterprise
Agreement[3].
Thereafter, the MUA did not apply for permission to appeal against that
approval[4].
- Following
the approval of the Enterprise Agreement, the MUA brought several proceedings
against the appellant in reliance upon the
Enterprise
Agreement[5].
However, from November 2017, the MUA became dissatisfied with the
Enterprise Agreement and began publicly to criticise
it[6].
- The
MUA merged with the CFMEU in March 2018 to form the
CFMMEU[7].
Mr Lunt's
proceedings
- Mr Lunt
had been a member of the MUA for more than two decades before it amalgamated
with the
CFMEU[8].
Mr Lunt, while a member of the MUA, was employed by the appellant from
about 21 June 2017 until his dismissal on 23 November
2017[9].
- On
14 December 2017, Mr Lunt commenced proceedings against the appellant
in the Federal Court, claiming that the appellant had contravened
the Act by,
among other things, breaching the Enterprise Agreement ("the first
proceedings")[10].
On 1 February 2018, Mr Lunt sought leave to amend the originating
application in the first proceedings, among other things, to seek
an order in
the nature of certiorari quashing the Commission's approval of the Enterprise
Agreement on the ground that the approval
was beyond the jurisdiction of the
Commission[11].
On 23 April 2018, the primary judge refused leave to
amend[12].
- On
4 May 2018, Mr Lunt commenced fresh proceedings in the Federal Court,
being the proceedings to which this appeal relates ("the
current proceedings"),
in which he sought the same relief as that sought by the leave to amend
application[13].
The appellant countered by filing an application seeking the summary dismissal
of the current proceedings as an abuse of process.
- Before
the primary judge, the appellant argued that the CFMMEU was the true moving
party behind the current proceedings, with Mr
Lunt being deployed to
conceal the CFMMEU's
role[14].
Mr Lunt denied this allegation. He maintained that he sought the quashing
of the Commission's approval of the Enterprise Agreement
by reason of his
concerns about its conditions and the manner in which it was
made[15]. The
appellant also argued that Mr Lunt's evidence should be rejected as
unreliable. In this regard, the appellant relied on Mr Lunt's
intentional
destruction of his mobile phone as going to the credibility of his account of
the nature of his involvement in the
proceedings[16].
The
decisions below
- The
primary judge allowed the appellant's application for summary dismissal of the
current
proceedings[17].
His Honour found that the MUA and the CFMMEU respectively funded the first
proceedings and the current
proceedings[18].
His Honour also found that the MUA was heavily involved in obtaining and
communicating Mr Lunt's instructions to apply for leave
to amend in
relation to the first
proceedings[19],
that Mr Lunt allowed himself to be used by the CFMMEU as a "front man" to
bring the current proceedings under its control, and that
the MUA and the CFMMEU
were unwilling to bring the first proceedings or the current proceedings in
their own
names[20].
Further, as to this last point, the primary judge found that the MUA and the
CFMMEU were not willing to bring proceedings in their
own names because of the
risk that they would be refused relief on the discretionary grounds that the MUA
had acquiesced in the approval
of the Enterprise Agreement by the Commission,
failed to exercise its right to apply for permission to appeal against the
approval,
and thereafter delayed in bringing any challenge for over a
year[21].
- The
primary judge concluded that to deny the appellant the opportunity to resist
Mr Lunt's challenge to the approval of the Enterprise
Agreement on
discretionary grounds would be unjustifiably oppressive to the
appellant[22].
His Honour also concluded that Mr Lunt brought the current proceedings
for the predominant purpose of enabling the CFMMEU to obtain
relief which it was
unlikely to obtain if the proceedings were brought in its own name, rather than
for the predominant purpose of
vindicating his own legal
rights[23].
Although Mr Lunt may have had his own concerns about the merits of the
Enterprise Agreement and the circumstances in which it was
made, those concerns
were not sufficient to motivate him to commence proceedings to have it
quashed[24]. On
that basis, the primary judge held that the proceedings were brought by
Mr Lunt for an "illegitimate and collateral
purpose"[25].
His Honour reasoned that it would bring the administration of justice into
disrepute if the CFMMEU were permitted, by deploying
Mr Lunt as a "front
man", to bring the current proceedings to challenge the approval of the
Enterprise Agreement while avoiding scrutiny
by the Court of its acquiescence in
the approval of, and reliance upon, the Enterprise
Agreement[26].
- Mr Lunt
appealed to the Full Court of the Federal Court. The Full Court (Bromberg, Kerr
and Wheelahan JJ) allowed Mr Lunt's
appeal[27]. The
Full Court reasoned that "where a person has commenced or maintained a
proceeding desiring to obtain a result within the scope
of the remedy sought,
the presence of a motive or reason for pursuing a proceeding which may be
fulfilled as a consequence of obtaining
the legal remedy which the proceeding is
intended to produce, does not ground an abuse of
process"[28].
The Full Court concluded that, because Mr Lunt sought to obtain a result
within the scope of the remedy sought by the current proceedings,
there was no
impropriety of purpose and hence no abuse of process. The circumstance that
Mr Lunt may have been motivated by the desire
that the CFMMEU should
benefit from the relief sought did not alter that
conclusion[29].
The appellant's argument
- In
this Court, the appellant submitted that the Full Court's conclusion that
Mr Lunt did not bring the current proceedings for an
illegitimate or
improper purpose was not a sufficient basis on which to reverse the decision of
the primary judge. It submitted that,
whatever conclusion was reached regarding
the impropriety of Mr Lunt's purpose, the current proceedings could still
amount to an
abuse of process for other, independent, reasons.
- In
PNJ v The
Queen[30],
French CJ, Gummow, Hayne, Crennan and Kiefel JJ
said:
"It is not possible to describe exhaustively what will constitute an abuse of
process. It may be accepted, however, that many cases
of abuse of process will
exhibit at least one of three characteristics:
(a) the invoking of a court's processes for an illegitimate or collateral
purpose;
(b) the use of the court's procedures would be unjustifiably oppressive to a
party; or
(c) the use of the court's procedures would bring the administration of justice
into disrepute."
- Focusing
upon the third of the characteristics referred to in PNJ, the appellant
submitted that, in the circumstances, to permit the pursuit of the current
proceedings by Mr Lunt would bring the
administration of justice into
disrepute. The appellant argued that the Full Court had failed to appreciate the
force of the findings
of the primary judge that the purpose of Mr Lunt was
to allow the CFMMEU to obtain relief "which it could not, or might not, obtain
if the proceeding were brought in its own
name"[31] or
"which it was unlikely to obtain if the proceeding were brought in its own
name"[32]
because of the acquiescence of the MUA in the approval by the Commission of the
Enterprise Agreement. In this regard, the appellant
emphasised the lack of
candour involved in Mr Lunt's attempt to conceal the role of the CFMMEU in
promoting the proceedings and in
his destruction of potential
evidence.
Mr Lunt's argument
- Mr Lunt
submitted that the Full Court was correct to hold that, even though his motive
in bringing the current proceedings may have
been to obtain a benefit for the
CFMMEU, his predominant purpose was truly to seek the quashing of the
Commission's approval. That
being so, the circumstance that he was motivated to
benefit the CFMMEU was immaterial. Further, it was said that concealment of an
immaterial motive was no basis for finding an abuse of process.
- Mr Lunt
submitted that the current proceedings should be allowed to be determined on
their merits rather than summarily dismissed
as an abuse of process. It was said
that the Enterprise Agreement is an important instrument that affects the rights
of many employees,
and the court has available to it other remedies to deal with
misconduct by a party that are more appropriate than granting a summary
dismissal by reason of an abuse of process. Those remedies might include the
making of an appropriate costs order against Mr Lunt
or the
CFMMEU[33].
The courts and abuse of process
- The
fundamental responsibility of a court is to do justice between the parties to
the matters that come before it. In the performance
of that function, the doing
of justice may require the court to protect the due administration of justice by
protecting itself from
abuse of its
processes[34].
The power to stay, or summarily dismiss, proceedings because one party has
abused the processes of the court is concerned to prevent
injustice[35],
and that power is properly exercised where the conduct of the moving party is
such that the abuse of process on its part may prevent
or stultify the fair and
just determination of a matter.
- In
Strickland (a pseudonym) v Director of Public
Prosecutions (Cth)[36],
Gageler J explained that the concern which engages a court's power to order
a stay of proceedings is the need to protect the integrity
of its own processes.
His Honour said:
"The power of a superior court to stay its
own proceedings as an abuse of process is a power to protect the integrity of
its own
processes. The power is in that limited respect and to that limited
extent a power to 'safeguard the administration of
justice'[37]."
- In
cases where proceedings are brought for an improper purpose, "no remedy is
likely to be appropriate other than a stay of the
proceedings"[38]
because, in such cases, the abuse of the court's processes cannot be remedied in
any other way. But where a court is able, by means
less draconian than summary
termination, to cure any apprehended prejudice to a fair trial so as to ensure
that justice is done,
the court's responsibility to the parties, and to the
community, requires that those other means be deployed so that the matter before
the court is heard and determined in accordance with the justice of the case.
So, for example, where a party has engaged in sharp
practice apt to delay the
fair trial of a matter, an order for costs may be sufficient to cure the
prejudice to the other party.
Where a party's misconduct amounts to a contempt
of court, such as the destruction of material evidence, the vindication of the
court's
authority may require the punishment of the miscreant. The remedy of a
stay of proceedings, however, is concerned not with the punishment
of the
miscreant but with the protection of the integrity of the court's ability fairly
and justly to determine the matter in dispute.
- In
Strickland[39],
Kiefel CJ, Bell and Nettle JJ held that a stay of proceedings was
warranted in the circumstances of that case because the abuse
of process on the
part of the prosecution so affected the prospects of a fair hearing that "the
prejudice to a fair trial is at least
to a significant extent incurable".
Edelman J[40],
who concurred with the plurality, explained that an order for a permanent stay
is "a measure of last resort" which will be ordered
"where there is no other way
to protect the integrity of the system of justice administered by the court".
His Honour went on to
say:
"Before a permanent stay can be
ordered, it is necessary to consider whether there are any other curial measures
that could be taken
to address any systemic incoherence that would be caused by
a trial of the accused. This must be considered because the court's ability
to
protect its integrity is not confined to orders that grant a permanent stay of
proceedings."
- Gageler J,
who dissented as to the result of the case, was also of the opinion that a
permanent stay of proceedings cannot properly
be ordered where the substantial
unfairness in the conduct of proceedings is capable "of being averted through
the adoption ... of
measures less drastic than ordering a permanent
stay"[41]. And
Gordon J, who also dissented as to the result of the case, agreed that
there is no occasion to order a permanent stay of proceedings
where the
prejudice resulting from an abuse of process is curable by less drastic means.
Her Honour
said[42]:
"[I]f
a fair trial can be had, or if it is not possible to say now that a fair trial
cannot be had, why would the administration of
justice be brought into disrepute
if the prosecutions were permitted to proceed?"
Illegitimate or improper purpose
- While
the thrust of the appellant's argument in this Court shifted away from an
argument about illegitimacy of purpose, it is desirable
to be clear that the
Full Court was right to conclude that, while Mr Lunt may have been
motivated to bring the current proceedings
out of loyalty to the CFMMEU or to
avoid a possible forensic disadvantage to the CFMMEU, that does not mean that
the proceedings
were brought for an improper purpose. In this context the
distinction between motive and purpose is of crucial importance. In Williams
v
Spautz[43],
the plurality (Mason CJ, Dawson, Toohey and McHugh JJ)
said:
"To say that a purpose of a litigant in bringing proceedings which is not within
the scope of the proceedings constitutes, without
more, an abuse of process
might unduly expand the concept. The purpose of a litigant may be to bring the
proceedings to a successful
conclusion so as to take advantage of an entitlement
or benefit which the law gives the litigant in that event.
Thus, to take an example mentioned in argument, an alderman prosecutes another
alderman who is a political opponent for failure
to disclose a relevant
pecuniary interest when voting to approve a contract, intending to secure the
opponent's conviction so that
he or she will then be disqualified from office as
an alderman by reason of that conviction, pursuant to local government
legislation
regulating the holding of such offices. The ultimate purpose of
bringing about disqualification is not within the scope of the criminal
process
instituted by the prosecutor. But the immediate purpose of the prosecutor is
within that scope. And the existence of the
ultimate purpose cannot constitute
an abuse of process when that purpose is to bring about a result for which the
law provides in
the event that the proceedings terminate in the prosecutor's
favour.
It is otherwise when the purpose of bringing the proceedings is not to
prosecute them to a conclusion but to use them as a means
of obtaining some
advantage for which they are not designed or some collateral advantage beyond
what the law offers."
- In
the present case, the desired result – the quashing of the Enterprise
Agreement – was squarely within the scope of
the remedy sought by the
current proceedings. That Mr Lunt did not desire the result for himself, or
desired the CFMMEU to take the
benefit, does not change this
fact[44].
Administration of justice
Substance of the arrangements between Mr Lunt and the CFMMEU
- Before
turning to address the appellant's principal argument as to Mr Lunt's
alleged lack of candour, it is also desirable to say
that there could not be any
substantive objection to the arrangements between Mr Lunt and the CFMMEU.
It is well settled that "a
plaintiff who has regularly invoked the jurisdiction
of a court has a prima facie right to insist upon its
exercise"[45].
Where the applicable rules as to standing are so broad as to enable a number of
plaintiffs to bring proceedings, the choice of a
plaintiff who is likely to
enjoy some legitimate forensic or juridical advantage over other candidates is
not an abuse of process.
Rather, it is a use of the processes made available by
the law. To the extent that Mr Lunt, as a person whose standing to bring
his
claim was and is undisputed by the appellant, may have enjoyed some forensic
or juridical advantage over the CFMMEU as an applicant
for the relief he sought
in the current proceedings, there was nothing improper in taking advantage of
what the law allows.
- Mr Lunt
and the CFMMEU having made a choice between themselves as plaintiffs, there was
similarly nothing objectionable in the CFMMEU's
funding and direction of the
proceedings brought by Mr Lunt. The decision of this Court in Jeffery
& Katauskas Pty Ltd v SST Consulting Pty
Ltd[46],
relied on by Mr Lunt, is instructive in this regard. In that case, the
plaintiff entered into an arrangement with a litigation funder
and the
plaintiff's action was determined in favour of the defendant. Because the
defendant was left with a shortfall of costs, it
sought to recover costs from
the litigation funder, who was not a party, on the basis that the litigation
funder had caused an abuse
of process. The majority of this Court
(French CJ, Gummow, Hayne and Crennan JJ) held that "an agreement by a
non-party, for reward,
to pay or contribute to the costs of a party in
instituting and conducting proceedings is not, of itself, an abuse of the
court's
processes"[47].
Concealing the arrangements between Mr Lunt and the
CFMMEU
- The
appellant's argument focused upon what was said to be Mr Lunt's lack of
candour in attempting to conceal the nature and extent
of the involvement of the
CFMMEU in promoting and maintaining the current proceedings. The appellant's
concern was that the administration
of justice had been brought into disrepute
because the deployment of Mr Lunt as a "front man" for the CFMMEU was
likely to avoid
or minimise the possibility that the court would refuse to quash
the approval of the Enterprise Agreement on discretionary grounds
because of the
MUA's longstanding acquiescence in and reliance upon the agreement.
- The
use of colourful and pejorative language to describe Mr Lunt's actions and
the CFMMEU's promotion of the current proceedings
should not be allowed to
obscure the mundane reality of the situation. First, it bears repeating that
there is no basis for any substantive
objection to the arrangements between
Mr Lunt and the CFMMEU. Secondly, it should be understood that it was not
incumbent on Mr Lunt
to disclose the nature and extent of the CFMMEU's
involvement in the current proceedings when they were brought. At that stage of
the proceedings the relationship between Mr Lunt and the CFMMEU was not
material to Mr Lunt's claim. Of course, once an issue was
raised by the
appellant in relation to the role of the CFMMEU, if Mr Lunt were to respond
to that issue, he was obliged to do so
honestly. In this regard, it may be noted
that Mr Lunt admitted in his reply in the current proceedings that the MUA
and the CFMMEU
had borne the legal costs of the first proceedings and the
current proceedings. Thirdly, insofar as Mr Lunt had concealed his ultimate
purpose or motive through the destruction of his mobile phone, the appellant had
relied on that evidence only as going to his credit
rather than as proof of
participation in a "sham" proceeding, or some other form of misconduct which
should disentitle Mr Lunt to
a determination of the current proceedings on
their merits.
- Moreover,
the concern voiced by the appellant as to its purported inability to rely on
discretionary grounds for the refusal of relief
was always illusory. If
Mr Lunt had been able to satisfy the court that the approval was given in
excess of the Commission's jurisdiction,
the court might nevertheless have
refused relief in the exercise of its discretion by viewing Mr Lunt as an
officious intermeddler
in the affairs of other persons who, on the face of
things, appeared to be perfectly content with the Enterprise Agreement, at least
in the absence of any suggestion that the union which had approved its terms
now repented of its bargain and sought to change its
position.
- Whatever
result might have eventuated in this regard, it is inconceivable that the court
asked to quash the approval of the Enterprise
Agreement would do so without
noting that the approval was supported by the MUA as the representative of
affected employees and that
the Enterprise Agreement had been invoked by it in
proceedings before the Commission. The circumstance that Mr Lunt was the
person
who brought the proceedings would not have prevented, in any real way,
scrutiny of the role played by the CFMMEU's predecessor union
in the making of
the Enterprise Agreement. None of the parties to the Enterprise Agreement other
than Mr Lunt were disposed to complain
of it.
- In
any event, with the arrangements between Mr Lunt and the CFMMEU now being
well known, it is not possible to say that a fair trial
cannot be had. That
being so, the administration of justice could not be brought into disrepute by
allowing the current proceedings
to continue to a determination on their
merits.
- In
the course of the hearing of the appeal, the appellant's argument reduced to the
proposition that failure to stay or summarily
dismiss would bring the
administration of justice into disrepute because the court should be astute to
deter or punish a want of
candour on the part of a litigant of the kind revealed
in this case irrespective of whether a fair trial can now be had. The appellant
was not able to cite any authority in support of the proposition that
considerations of deterrence or punishment are relevant to
the exercise of the
court's powers in relation to abuse of process. That is not surprising because,
as has been noted above, the
court's powers in relation to abuse of process are
not informed by considerations of deterrence or punishment. Rather, they are
exercised
in order to protect the integrity of the court's own
processes[48].
Conclusion
- Whether
or not Mr Lunt understood that there was nothing improper in the bringing
of the current proceedings in his name, that was
in truth the case. Any
misunderstanding on Mr Lunt's part that may have prompted him to attempt to
conceal the CFMMEU's involvement
does not change that. That being so, to permit
the current proceedings to continue to a conclusion on their merits would not be
to
allow the pursuit of an illegitimate or improper purpose. Nor would it bring
the administration of justice into disrepute.
- For
these reasons, in the circumstances found by the primary judge, there was no
basis for the making of an order summarily to dismiss
the current
proceedings[49].
The CFMMEU's involvement in the current proceedings is not a reason why the
merits of the case should not be determined by the Federal
Court. The appeal
should be dismissed.
- Mr Lunt
does not seek an order for his costs of the appeal to this Court. There should
therefore be no order in relation to those
costs. As to the costs of the
proceedings before the primary judge, an application in relation to those costs
is before the primary
judge and is for his Honour to
determine.
- EDELMAN J.
I have had the considerable benefit of reading in draft the joint reasons for
decision of the other members of this Court.
I agree with those reasons and wish
to add only the following brief remarks.
- The
sole category of abuse of process with which this appeal was concerned is the
category loosely described in the ground of appeal
as one where the proceeding
brings "the administration of justice into disrepute". This expression is loose
because the concern is
not with the public reputation of the court, nor with
public confidence in the court, in any real sense. The concern is with the
integrity of the court, including its
processes[50].
- It
was not alleged on appeal to this Court that the abuse of process arose from
Mr Lunt bringing the proceeding for an improper purpose.
A difficulty that
can arise in relation to claims of improper purpose is the ambiguity of
"purpose". When lawyers speak of legislative
purpose, their concern is with
purpose in its sense in "ordinary
parlance"[51]
as the legislative motive or goal – the mischief to which the Act is
directed – and not merely the immediate purpose of enacting statutory
provisions by which that motive or goal is to be
achieved[52].
By contrast, in areas such as the exercise of fiduciary power, the focus is upon
the immediate purpose rather than the motive: "the
exercise of a power for an
ulterior or impermissible purpose is bad notwithstanding that the motives of the
donee of the power in
so exercising it are substantially
altruistic"[53].
Similarly, when considering an abuse of process constituted by an improper
purpose, "the existence of an unworthy or reprehensible
motive for bringing the
action [is] not enough"; rather, the issue is whether the immediate purpose
"sought to be effected by the
litigant in bringing the proceedings was not
within its scope and was
improper"[54].
- Mr Lunt's
action in bringing a proceeding for the immediate purpose of setting aside the
Enterprise Agreement was not improper merely
because his motive or "ultimate
purpose"[55]
was to obtain a benefit for the union which, after merger, became the
Construction, Forestry, Maritime, Mining and Energy Union ("the
CFMMEU")[56].
Since Mr Lunt had the immediate purpose of setting aside the Enterprise
Agreement, and since the law would not be stultified by
him bringing the
proceeding for the benefit of the
CFMMEU[57], his
motive did not render that purpose improper for the same reason that it would
not be improper for an action to be brought by
a union with the motive of
obtaining a benefit for its
members[58]. As
senior counsel for Victoria International Container Terminal Limited properly
conceded in this Court, if Mr Lunt had been wholly
transparent about the
role of the CFMMEU, there would not have been an abuse of process.
- The
focus of submissions in this Court was not, therefore, upon Mr Lunt's
motive or upon the role of the CFMMEU. It was upon Mr Lunt's
attempt to
conceal those matters. The primary judge found that Mr Lunt conducted his
case "on the basis that he has brought the proceeding
for his own benefit, and
not to represent the
CFMMEU"[59].
The primary judge concluded that there was "a substantial risk that ... an
application would have
failed"[60] if
it had been brought in the name of the CFMMEU. The motive for concealing the
role of the CFMMEU as the driving force of the proceeding,
and for Mr Lunt
conducting his case on the basis that he was not representing the interests of
the CFMMEU, was to reduce that risk.
- The
forensic strategy adopted by Mr Lunt and the CFMMEU was a gamble. Without
revealing the principal role of the CFMMEU, Mr Lunt
might have needed to
provide evidence of a more widespread concern with the Enterprise Agreement,
particularly from employees, such
as himself, who were not relevantly employed
in 2016 and therefore were not represented in the bargaining process. Otherwise
the
court might have exercised its residual discretion to refuse prerogative
relief to Mr Lunt as a single, disaffected employee. On
the other hand, if
the full role of the CFMMEU as the driving force for the proceeding had been
revealed, Victoria International
Container Terminal Limited at trial might have
relied upon the change of position by the CFMMEU in seeking to set aside an
Enterprise
Agreement to which the union had acquiesced and upon its delay of
15 months in doing so, a period within which many employees might
have
relied upon the agreement.
- Let
it be supposed that the gamble had succeeded and that the proceeding had been
resolved at first instance in favour of Mr Lunt.
In those circumstances, if
the discretionary factors arising from the role of the CFMMEU and weighing
against relief had been concealed,
but were later discovered, then the decision
might be set aside on
appeal[61]. If
there were evidence of a "fraud on the court", it could even be set aside by the
primary
judge[62]. But
in either case the remedy would be a new trial. The court would not permanently
stay proceedings and thereby deprive a party
such as Mr Lunt of the liberty
of a fair adjudication of their rights.
- The
reason that a permanent stay of proceedings would not be appropriate is that any
successful concealment of the CFMMEU's role
is of a different nature from a
tortious abuse of process, such as where the purpose of bringing the proceedings
is not to prosecute
them to a conclusion but "some [ultimate] purpose other than
the attainment of the claim in the
action"[63]. In
the latter case, concerns of deterrence might arise but, more significantly,
without a permanent stay the wrongful action would
continue. In the former case,
the remedial responses to the concealment are limited to those necessary to
achieve the function of
protecting the integrity of the court. If the integrity
of the court can be protected by remedies less drastic than a permanent stay
of
proceedings then there is no justification for a court to go further than
necessary to protect its processes by denying a party
the liberty of a fair
hearing.
- The
same approach is also taken by courts applying remedies for
illegality[64],
where courts do the minimum necessary to avoid self-stultification of the law.
An example is the decision of this Court in Nelson v
Nelson[65].
In that case, Mrs Nelson engaged in fraudulent conduct by
transferring land to her children in order to obtain a Commonwealth subsidy for
a later
purchase of land. The remedial response to her claim for a resulting
trust of the land was not to deny her rights but to condition
her relief upon
payment to the Commonwealth of an amount that would deny Mrs Nelson the
benefit of the subsidy that she had fraudulently
obtained. Such a remedy was
sufficient to avoid "self-stultification in the law"; in positive terms, it
served the objective of "maintaining
coherence in the
law"[66].
- The
judicial response where it is alleged prior to trial that relevant matters are
being concealed cannot be stronger than the judicial
response where those
matters are discovered after trial. Just as a court which is confronted with
obstacles to a fair trial should
usually protect its processes by "flexible use
of the power to control procedure and by the giving of forthright
directions"[67]
rather than "refusing to exercise the jurisdiction to hear and determine the
issues"[68], so
too should a court use its processes to prevent any threat to its integrity such
as that which might be suggested by allegations
of concealment. But, in this
case, once the extent of the role of the CFMMEU had been revealed, there was no
threat to the integrity
of the court's processes. Putting to one side any issues
concerning costs, no further remedial response, including the extreme measure
of
a stay of proceedings, was necessary.
- Orders
should be made as proposed in the joint reasons.
[1] Lunt v Victoria International
Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 544 [11].
[2] Lunt v Victoria International
Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 544 [13].
[3] Lunt v Victoria International
Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 545 [16].
[4] Lunt v Victoria International
Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 545 [17].
[5] Lunt v Victoria International
Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 545 [18], 547 [32].
[6] Lunt v Victoria International
Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 545-546 [19]-[28].
[7] Lunt v Victoria International
Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 543 [5].
[8] Lunt v Victoria International
Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 547 [29].
[9] Lunt v Victoria International
Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 543 [6].
[10] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 543-544
[7].
[11] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 544
[8].
[12] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 544
[10].
[13] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 544
[10].
[14] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 543
[2].
[15] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 543
[3].
[16] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 549 [43],
550-551 [54], 556-557 [85]-[86].
[17] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542.
[18] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 563
[125].
[19] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 560
[113].
[20] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 563
[129].
[21] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 562-563
[121], [123]-[124].
[22] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 564
[133].
[23] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 562 [119],
564 [131].
[24] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 560
[111].
[25] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at
564 [131].
[26] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 564
[134].
[27] Lunt v Victoria
International Container Terminal Ltd [2020] FCAFC 40.
[28] Lunt v Victoria
International Container Terminal Ltd [2020] FCAFC 40 at [16].
[29] Lunt v Victoria
International Container Terminal Ltd [2020] FCAFC 40 at [17]- [18].
[30] [2009] HCA 6; (2009) 83 ALJR 384 at 385-386
[3]; [2009] HCA 6; 252 ALR 612 at 613 (footnotes omitted).
[31] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 562
[119].
[32] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 564
[131].
[33] Knight v FP Special Assets
Ltd [1992] HCA 28; (1992) 174 CLR 178 at 190.
[34] Batistatos v Roads and
Traffic Authority (NSW) [2006] HCA 27; (2006) 226 CLR 256 at 266 [12].
[35] Barton v The Queen
[1980] HCA 48; (1980) 147 CLR 75 at 96. See also Connelly v Director of Public
Prosecutions [1964] AC 1254 at 1301-1302, 1347; Tomlinson v Ramsey Food
Processing Pty Ltd [2015] HCA 28; (2015) 256 CLR 507 at 518-519 [25]; UBS AG v Tyne
[2018] HCA 45; (2018) 265 CLR 77 at 83 [1].
[36] (2018) 266 CLR 325 at
372-373 [113].
[37] Moti v The Queen [2011] HCA 50; (2011)
245 CLR 456 at 464 [11].
[38] Jago v District Court (NSW)
[1989] HCA 46; (1989) 168 CLR 23 at 71.
[39] (2018) 266 CLR 325 at
360 [85].
[40] (2018) 266 CLR 325 at
409 [248], 415 [264].
[41] (2018) 266 CLR 325 at
373 [115].
[42] (2018) 266 CLR 325 at
408 [244].
[43] [1992] HCA 34; (1992) 174 CLR 509 at 526-527
(footnotes omitted). See also at 535 per Brennan J.
[44] Lunt v Victoria
International Container Terminal Ltd [2020] FCAFC 40 at [17]- [18].
[45] Voth v Manildra Flour Mills
Pty Ltd [1990] HCA 55; (1990) 171 CLR 538 at 554.
[46] [2009] HCA 43; (2009) 239 CLR 75.
[47] [2009] HCA 43; (2009) 239 CLR 75 at 94
[30].
[48] Strickland (a pseudonym) v
Director of Public Prosecutions (Cth) (2018) 266 CLR 325.
[49] Barton v The Queen
[1980] HCA 48; (1980) 147 CLR 75 at 111; Jago v District Court (NSW) [1989] HCA 46; (1989) 168 CLR
23 at 34, 49, 74.
[50] Strickland (a pseudonym) v
Director of Public Prosecutions (Cth) (2018) 266 CLR 325 at 411-415
[256]-[263].
[51] Zaburoni v The Queen
(2016) 256 CLR 482 at 490 [17].
[52] APLA Ltd v Legal Services
Commissioner (NSW) [2005] HCA 44; (2005) 224 CLR 322 at 394 [178]; McCloy v New South
Wales [2015] HCA 34; (2015) 257 CLR 178 at 232 [132]; Brown v Tasmania [2017] HCA 43; (2017) 261
CLR 328 at 363 [101], 391-392 [208]-[209], 432 [321]; Unions NSW v New
South Wales [2019] HCA 1; (2019) 264 CLR 595 at 657 [171].
[53] Whitehouse v Carlton Hotel
Pty Ltd [1987] HCA 11; (1987) 162 CLR 285 at 293.
[54] Williams v Spautz [1992] HCA 34; (1992)
174 CLR 509 at 525, explaining the reasoning of the Privy Council in King v
Henderson [1898] UKLawRpAC 33; [1898] AC 720 at 731.
[55] Williams v Spautz [1992] HCA 34; (1992)
174 CLR 509 at 526.
[56] See also Lunt v Victoria
International Container Terminal Ltd [2020] FCAFC 40 at [18].
[57] Compare Dowling v Colonial
Mutual Life Assurance Society Ltd (1915) 20 CLR 509 at 523-524, citing In
re Dashwood; Ex parte Kirk (1886) 3 Morr 257.
[58] See, for example, Regional
Express Holdings Ltd v Australian Federation of Air Pilots [2017] HCA 55; (2017) 262 CLR
456.
[59] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 564
[132].
[60] Lunt v Victoria
International Container Terminal Ltd [No 2] (2019) 165 ALD 542 at 562
[123].
[61] Commonwealth Bank of
Australia v Quade (1991) 178 CLR 134 at 142-143; Clone Pty Ltd v Players
Pty Ltd (In liq) (Receivers and Managers Appointed) [2018] HCA 12; (2018) 264 CLR 165 at
187-191 [45]- [51].
[62] Clone Pty Ltd v Players Pty
Ltd (In liq) (Receivers and Managers Appointed) [2018] HCA 12; (2018) 264 CLR 165 at
191-192 [53].
[63] Varawa v Howard Smith Co
Ltd [1911] HCA 46; (1911) 13 CLR 35 at 91.
[64] Strickland (a pseudonym) v
Director of Public Prosecutions (Cth) (2018) 266 CLR 325 at 416 [267].
[65] (1995) 184 CLR 538.
[66] Equuscorp Pty Ltd v Haxton
(2012) 246 CLR 498 at 520 [38].
[67] Jago v District Court (NSW)
[1989] HCA 46; (1989) 168 CLR 23 at 49.
[68] Jago v District Court
(NSW) [1989] HCA 46; (1989) 168 CLR 23 at 47.