FEDERAL CIRCUIT COURT OF AUSTRALIA
| ABDIRAHMAN & ORS v ASSETLINK LINK SERVICES (17) PTY LIMITED | [2021] FCCA 90 |
| Catchwords: INDUSTRIAL LAW – Application for preliminary discovery – respondent submitting this court has no power to order preliminary discovery and, in the alternative, that the grounds for preliminary discovery have not been made out. |
| Legislation: Federal Circuit Court of Australia Act 1999, ss.43, 45, 81 Federal Circuit Court Rules 2001, r.1.05, item 3B in Pt.2 of Sch.3 Federal Court Rules 2011, r.7.23 |
| Cases cited: BCI Media Group Pty Ltd v Corelogic Australia Pty Ltd [2020] FCA 1556 Mondal v Transclean Facilities Pty Ltd [2020] FCCA 1334 Shorey v One Key Workforce Pty Ltd (in liq) [2020] FCA 1750 |
| First Applicant: | MOHAMED ABDIRAHMAN |
| Second Applicant: | ALI AL SHAHER |
| Third Applicant: | MOHAMED ALI |
| Fourth Applicant: | IMRAN ASHKAR |
| Fifth Applicant: | SADIK DEMIRAL |
| Sixth Applicant: | PHOOLA SINGH DHILLON |
| Seventh Applicant: | AHMED OSMAN |
| Eighth Applicant: | HASAN REKABI |
| Ninth Applicant: | MOHAMED SHARIF |
| Tenth Applicant: | EMMANUEL ZERVAS |
| Respondent | ASSETLINK LINK SERVICES (17) PTY LIMITED (ACN 126 171 079) |
| File Number: | MLG 3521 of 2020 |
| Judgment of: | Judge Riley |
| Hearing date: | 16 December 2020 |
| Date of last submission: | 16 December 2020 |
| Delivered at: | Melbourne |
| Delivered on: | 27 January 2021 |
REPRESENTATION
| Solicitor advocate for the applicants | Yusuf Mohamud |
| Solicitors for the applicants: | Starnet Legal |
| Counsel for the respondent: | Andrew Denton |
| Solicitors for the respondent: | Mark Diamond |
DECLARATION
Item 3B in Part 2 of Schedule 3 to the Federal Circuit Court Rules 2001 is valid.
| FEDERAL CIRCUIT COURT OF AUSTRALIA AT MELBOURNE |
MLG 3521 of 2020
| MOHAMED ABDIRAHMAN |
First applicant
And
| ALI AL SHAHER |
Second applicant
And
| MOHAMED ALI |
Third applicant
And
| IMRAN ASHKAR |
Fourth applicant
And
| SADIK DEMIRAL |
Fifth applicant
And
| PHOOLA SINGH DHILLON |
Sixth applicant
And
| AHMED OSMAN |
Seventh applicant
And
| HASAN REKABI |
Eighth applicant
And
| MOHAMED SHARIF |
Ninth applicant
And
| EMMANUEL ZERVAS |
Tenth applicant
And
| ASSETLINK LINK SERVICES (17) PTY LIMITED (ACN 126 171 079) |
Respondent
REASONS FOR JUDGMENT
Introduction
This is an application for preliminary discovery brought under rule 7.23 of the Federal Court Rules 2011.
The applicants are 10 prospective applicants in a prospective fair work application. The respondent was their employer and the prospective respondent to the fair work application. The respondent provided security services and the applicants were security guards.
Basically, the applicants sought preliminary discovery to help them decide whether to bring a fair work proceeding against the respondent.
The respondent argued that this court has no power to make an order for preliminary discovery, and, in the alternative, that the grounds for making an order for preliminary discovery have not been made out.
It was decided to deal with the question of the court’s power as a threshold issue. The question of whether the grounds for making an order for preliminary discovery will be dealt with separately, if it is held that the court does have power to make such an order.
The parties filed written submissions. The applicants’ written submissions were filed after the respondent’s but did…
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- Case
- [2021] FCCA 90
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the Court was to determine whether an application for preliminary discovery under rule 7.23 of the Federal Court Rules is a "proceeding" within the meaning of the Federal Court of Australia Act 1976. A secondary issue arose from the respondent's argument that if it were a proceeding, an order for discovery would be final relief, thus not conforming with the statutory prerequisite of being "in the interests of the administration of justice" by contributing to the fair and expeditious conduct of proceedings.
Justice Riley found that the weight of authority, including decisions from French J, Besanko J, and Bennett J, supports the view that an application for preliminary discovery is a proceeding. His Honour respectfully disagreed with the contrary view expressed in *Telstra Corporation Limited v Minister for Communications, Information Technology and the Arts*, noting that it was decided without reference to earlier, persuasive authority. The Court held that the definition of "proceeding" in section 4 of the Act, which includes incidental proceedings, encompasses applications for preliminary discovery. Regarding the respondent's secondary submission, the Court clarified that while the interests of justice are a prerequisite, the specific requirement that discovery contribute to the fair and expeditious conduct of proceedings is a matter for consideration, not a prerequisite that must be met for the order to be granted.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
The conflict in Federal Court authority mentioned by the respondent in paragraph 21 of its written submissions seems to have been resolved in favour of an application for preliminary discovery being a proceeding. In Shorey, Murphy J said at [22]: In Telstra CorporationLimited v Minister for Communications, Information Technology and the Arts[2007] FCA 1331, decided under the previous rules, Graham J held that a third party cannot be joined to or given leave to intervene in an application for preliminary discovery because it is not a “proceeding”. I respectfully disagree. A “proceeding” is defined in s 4 of the FCA to mean “a proceeding in a court, whether between parties or not, and includes an incidental proceeding in the course of, or in connection with, a proceeding...” which in my view includes an application for preliminary discovery under r 7.23. I note also that the decision in Telstra Corporation was given without reference to earlier authority which provides that an application for preliminary discovery is a “proceeding” (Carnegie CorporationLimited v Pursuit Dynamics Plc [2007] FCA 1010; (2007) 162 FCR 375 (French J as his Honour then was) at [48]-[53]) which decision has been subsequently followed: Gearhart United Pty Ltd v Omni Oil Technologies (Asia) SDN BHD[2010] FCA 401; (2010) 267 ALR 630 (Besanko J) at [14]; Australian Competition and Consumer Commission v April International Marketing Services Australia Pty Ltd (No 7)[2010] FCA 902 (Bennett J) at [4]. In other words, the weight of authority, including more recent authority, is overwhelmingly in favour of an application under rule 7.23 being a proceeding. It is appropriate that I follow Shorey. For completeness, I note that the definition of proceeding in s.5 of the Act is the same as the definition of proceeding in s.4 of the Federal Court of Australia Act 1976. In that event that the court followed Shorey, the respondent argued that:if the application is a “proceeding” within itself, then an order for discovery is the final relief being sought within that proceeding. An order granting final relief would not conform with the statutory prerequisite [in s.45] of being “in the interests of the administration of justice” by “contribut[ing] to the fair and expeditious conduct of the proceedings” – it would end the proceeding. That submission misunderstands s.45(2)(a) of the Act. The prerequisite that the order for discovery be appropriate in the interests of the administration of justice does not include a prerequisite that discovery would be likely to contribute to the fair and expeditious conduct of the proceedings. Whether discovery would be likely to contribute to the fair and expeditious conduct of the proceedings is a matter the court must consider. However, it is not expressed as a prerequisite. As is always the case when the legislature specifies a list of matters to which a decision maker must have regard in making a decision, if a matter does not apply, it need not be considered. Similarly, such lists do not require that the matters being considered be resolved one way or the other. Such lists just require that decision makers turn their minds to the listed matters, and consider those of them that arise.