Australian Postal Corporation v Gray and Morgan

The appeal in Australian Postal Corporation v Gray and Morgan before the Supreme Court of Tasmania involved an interlocutory injunction granted against the Australian Postal Corporation by Cox J on 7 April 1989. The injunction restrained the Corporation from delivering certain letters deemed defamatory by Gray and Morgan. The Corporation appealed the injunction on the grounds that its operation would be inconsistent with the Commonwealth's Postal Services Act 1975, rendering it invalid under section 109 of the Constitution. The Full Court of the Supreme Court of Tasmania, comprising Neasey, Nettlefold, and Wright JJ, examined the grounds of appeal, particularly the issue of inconsistency between state and federal laws.

Neasey J, delivering the judgment, held that the court was not obliged to decide the constitutional inconsistency before granting the interlocutory injunction. Citing various authorities, including the House of Lords and the High Court of Australia, Neasey J emphasized that courts may grant interlocutory relief even if an outstanding question of law remains unanswered, provided it is necessary in the interests of justice. The court concluded that Cox J's discretion to grant the interlocutory order should not be interfered with, as no clear case of error was made out.

Nettlefold J agreed with Neasey J's reasoning and order. However, Wright J, while also agreeing with the outcome, argued that the court should address the constitutional issue on appeal. Wright J noted that both parties had fully argued the inconsistency point, and resolving it could substantially dispose of the action, saving costs and avoiding apparent injustice. Wright J further examined the appellant's argument that there was a direct inconsistency between the Postal Services Act 1975 and the Defamation Act 1957 (Tas), concluding that the Commonwealth Act did not confer immunity from civil suits on the Corporation. Wright J found no basis for the appellant's contention that the Commonwealth Act intended to cover the field of postal services to the exclusion of state laws on civil liability.

Ultimately, the Full Court dismissed the appeal, affirming the interlocutory injunction granted by Cox J. The court held that the appellant had not demonstrated a clear error in the lower court's decision, and the interests of justice supported the injunction's continuation.