Bannon v Nauru Phosphate Royalties Trust (No 3)

In the case of Bannon v Nauru Phosphate Royalties Trust (No 3), the plaintiff, Mr. Bannon, sought to bring the Republic of Nauru into the proceedings through a third-party notice. Mr. Bannon aimed to hold the Republic of Nauru accountable for alleged breaches of Australian labour laws by the Nauru Phosphate Royalties Trust. The matter was before the Federal Court of Australia, presided over by Justice Edelman.

The legal issues before the Court were whether the Republic of Nauru was already a party to the proceeding prior to the order setting aside the third-party notice and whether the Court had the power to order costs in this context. The Court considered the implications of the Foreign States Immunities Act 1985 (Cth), the Supreme Court Act 1986, the Fair Work Act 2009 (Cth), and the Supreme Court (General Civil Procedure) Rules 2015 in its analysis.

Justice Edelman held that the Court did not have the power to order costs against the Republic of Nauru due to its immunity under the Foreign States Immunities Act 1985 (Cth). The Court also found that the Republic of Nauru was not a party to the proceeding prior to the order setting aside the third-party notice. Consequently, the Court set aside the third-party notice and dismissed the costs application. The Court's decision was based on the understanding that the Republic of Nauru, as a sovereign state, enjoys immunity from legal proceedings in Australian courts, except as expressly provided by statute.