Bourke, Michael Patrick v Mapstone, David John Garland

[1984] FCA 116

a

1 ' J

, . fIb

Ipi THE	FEDERAL	COURT	OF	A U S T R A L I A	)
1

V I C T O R I A	D I S T R I C T	R E G I S T R Y	)	V.	No.	2 8 of 19R3
1

INDUSTRIAL	D ~ ~ I S I O N	1
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BETWEEN:

MICIIAEL PATRICK BOURRE an3 O R S . A p p l i c a n t s

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and

DAVID JOHN GARLAND MAPSTONE

R e s p o n d e n t s	and	O R S .
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CORAY:	Northrop J.
-	DATE :	10 April- 1984
DLACE:	B r l s b a n e

/

EX TEk'PORE JUDGXENT

On 14 October 1983 Elichael P a t r i c k B o n r k e o b t a i n e d

a r u l e n i s l u n d e r s.141 C o n c l l l a t l o n and A r b i t r a t i o n A c t 1 9 0 4

c a l l l n g upon t h e r e s p o n d e n t s , o t h e r t h a n t h e F e d e r a t e d

C l e r k s ' U n i o n of Australia, to s h o w cause w h y c e r t a i n orders

s h o u l d n o t be made directing t h e m t o perform or observe t h e

r u l e s of t he C l e r k s ' Un ion . O n 9 A p r i l 1984, the C o u r t

ordered t h a t t he r u l e n i s l be d ischarged . C o u n s e l for t h e

respondents , o ther t h a n the C l e r k s ' U n i o n , B a r r y Trevor

- 2 -

Llnske t and Brian Francls Tooley, thereupon moved the Cour t

t ha t Mlchae Pa t r l ck l Rourke and the o ther persons added as

a p p l i c a n t s , p u r s u a n t t o l e a v e g r a n t e d on 7 February 1984, be

o r d e r e d t o pay the c o s t s of h l s c l i e n t s ( h e r e i n a f t e r c a l l e d

" t h e r e s p o n d e n t s " ) .

?%e r u l e n i s i 1s a p roceed ing be fo re t he Fede ra l

Cour t o f Aus t ra l la . Under s . 4 3 Federa l Cour t of A u s t r a l l a

Act	1976,	t h e	C o u r t h a s	l u r i s d i c t l o n	t o	award	cos ts .	That
-

s e c t l c n i s read lr f u l l :

"43. ( 1 ) The Court o r a J u d g e h a s j u r i s d i c t i o n

t o award c o s t s I n a l l p roceed lngs be fo re t he

C o u r t ( I n c l u d l n q p r o c e e d l n g s d l s n i s s e d f o r

wan t o f j u r l sd l c t lon ) o the r awarded t han p roceed ings

l n r e s p e c t of which any other A c t p rov ides

tha t cos t s sha l l no t be .

( 2 ) Except a s provlded by any o t h e r A c t ,

t h e award o f c o s t s 1s i n t h e d i s c r e t l o n o f t h e

C o u r t or Judge."

T h a t s e c t l o n c o n f e r s a power " t o a v a r d c o s t s i n all

proceedlngs before t.he C o u r t " . I n t h a t s e c t i o n t h e word

" C o u r t " 1s d e f l n e d t o mean the Fedzra l _ _ _ Court -L cf P ,ur , t ra l ia

- Act ; S. 4 , and thc, word "Judge" means a Judge of the Cour t ,

and 12 t he exp res s lon " the Caur o r t a ?udge" means a Jucige

s l t t l n g i n Clramhers.

- 3 -

O n I t s face , sub-sec t ion 43;: ! - Federal Court of

Australia A c t empowers t3e C o u r t to award costs a g a i n s t t h e

applicants. There 19 a~ exception t o thJt power, namely, i n

"proceedlngs i n respect of whlch any other Act provides that

c o s t s s h a l l n o t a w a r d e d " . b e I t b e c o m e s n e c e s s a r y ,

t he re fo re , t o de t e rmine whe the r t he p roceed ings be fo re t he

C o u r t , b e l n g t h e r u l e n i s l , are proceedings i n r e s p e c t o f

which any other Act provldes that costs shal l not be awarded.

I n these c l rcumstances It becomes necessary t@

c o n s l d e r s.197A C o n c i l i a t l o n a n d A r b i t r a t l o n A c t . I t 1s

necessa ry t o r ead t he whole of t h a t s e c t i o n whlch was f i r s t

enacted i n 1973:

"197A. A part]; tc -

( a )	a proceedlng	before	the	Commission	o r	t h e
Reg l s t r a r :

( h ) a proceedlng, lncluding an appeal, before

t h e Court . , or b e f o r e a cour t o f a S t a t e

o r T e r r l t o r y , In a mat te r a r i s ing unde r

t h l s A c t ; o r

( c ) a proceeding before the Hlgh Court -

( i ) being an appeal from a ~udgment ,

decree , o rder or sentence of t h e

C o u r t o r a n y o t h e r c o u r t u n d e r t h i s

Ac t : o r

(ii) belng a proceeding i n respea t o f an

award proposed t o b e made, made or

p u r p o r t i n g t o h a v e b e e n m a d e , a

dec l s ion p roposed t o be g iven , g iven

or purpor t lng to have been g iven , or

any o ther ac t p roposed t o be done,

done or p u r p o r t i n g t o have been

done, under t h i s Fake an award, Act or i n r e s p e c t

of a f a l l u r e t o give

. ... . - .

- 4 -

a d e c l s i o n OK do any o ther ac t t h a t

1s r equ l r ed o r pe rml t t ed by t h i s A c t

t o be made, given or done,

s h a l l n o t be ordered t o pay any c o s t s I n c u r r e d

by any where t he pe r ty aga ins t other p a r t y t o t h a t proceeding except

whom t h e o r d e r i s made

i n s t l t u t e d t h e p r o c e e d i n g v e x a t i o u s l y or

wi thout rezsonable cause . I‘

A number of observa t ions m u s t be made a b o u t t h a t

s e c t l o n :

(1; T h e :dL]c’ct msticr o f t h e s e c t i o n 1s a p a r t y t o

p r o c e r d l n a c b e f o r e s p e c i f l e d t r i b u n a l s and c o u r t s , b e i n u

t h o s e t r l b u n a l s a:12 c o u r t s r e f e r r e d t o I n p a r a g r a p h s

( a ) , (b) and (c! of s.197A. Paraqraph (a) r e f e r s t o t h e

Comm~.ssion, t h a t 1s. t h e C o n c i l i a t l o n and A r b l t r a t l o n

Comnlss lon , and the Reols t ra r , tha t i s , t h e I n d u s t r l a l

R e g l s t r a r , t r l h u n a l s c r e a t e d by t h e C o n c i l l a t i o n and

A r b i t r a t l o n A c t . I n paragraph ( b ) i t 1s n o t e d t h a t t h e

words “ the Cour t” a re def lned t o mean “ t h e A u s t r a l i a n

I n d u s t r i a l C o u r t ” , t h l s not. belng a case where otherwise

c l e a r l y l n t e n d e d ; s e e s . 4 C o n c l l l a t i o n and A r b i t r a t i o n

Act. Note f u r t h e r t h a t t h e F e d e r a l C o u r t of Aus t r a l i ? !

-

1s not a c o u r t specified i n s . 1 9 7 A o f t h e z n c i l j a t i o n

and A r b i t r a t i o n A c t .

( 2 ) Of necess l ty the p roceedings before any of t h e s p e c i f i e d

c o u r t s m u 5 t be proceedings under the Conciliation and

A r b l t r a t i o n A c t . Thls 1s made c l e a r b y a r e f e r e n c e t o

- 5 -

paragraphs ( b ) and ( c ) , I n each case the proceedlnqs

heing limited to p roceed ings i n a m a t t e r a r i s i n g u n d e r

t h e C o n c l l l a t ~ o r and A r b l t r a t i o n A c t . S e c t i o n 197A does

-

no t app ly t o p roceed ings be fo re ? n y of t h o s e c o u r t s

under m y o thcr IcC. I t m u s t be remembered a l s o t h a t

t he Aus t r a l i an Indus t r i a l Cour t had j u r i sd i c t ion unde r

o the r Ac t s such a s t he T rade P rac t l ces Ac t 1974 , and

s . 1 9 7 A C o n c l l i a t i o n and A r b l t r a t i o n Act could have n o

a p p l i c a t l o n t o p r o c e e d i n g s i n t h e A u s t r a l i a n I n d u s t r i a l

Court under Acts such as that .

( 3 ) The sect ion imposes a l i m i t a t i o n on t h e power of t h e

s p e c l f l e d c o u r t s t o make o r d e r s a s t o c o s t s a g a i n s t

p a r t l e s t o p r o r e e d l n g s u n d e r t h e C o n c i l i a t i o n a n d

Arb l t r a t lon Ac t . The sect ior! does not confer power t o

make a n o r d e r i o r c o s t s . T h e s e c t i o n I m p o s e s a

l l m l t a t i o n on power. The power t o make an o r d e r f a r

c o s t s n o r m a l l y m u s t be found i n o t h e r s t a t u t o r y

F r o v l s l o n s .

( 4 ) On i t s f a c e , s . lL37A has no app l j ca t ion t o procecdlngs

be fo re t he Fede ra l Cour t o f Aus t r a l i a i n a m a t t e r

a r i s lng unde r t he Conc i l l a t ion an2 Arb l t r a t lon A c t .

I n V i n e r v . A u s t r a l i a n B u l l d i n g C o n s t r u c t i o n

E m p l o y e e s a n 5 B u i l d e r s ' L a h o u r e r s ' F e d e r a t i o n (1981) 38

A.L .R . 550 the Fede ra l C o u r t , a s p r e s e n t l y c o n s t i t u t e d , d r e w

- 6 -

a t t e n t l o n t o t h i s q u e s t i o n and s u g g e s t e d t h a t t h e l e g i s l a t u r e

,

should cons lder the mat te r . That was i n an tempore ex

judgment, b u t the followinq passage, pp.552-3, i s r e l e v a n t .

A f t e r r e f e r r l n g t o t h e r e l e v a n t p a r t s o f s.197A - C o n c l l i a t i o n

and A r b i t r a t i o n A c t , I s a i d :

" I t 1 s n o t e d t h a t i n t h a t s e c t i o n , b y

d e f l n l t i o n , t h e words ' t h e c o u r t ' mean t h e

Australian I n d u s t r i a l C o u r t c r e a t e d by the Act

and not the Federal Court of A u s t r a l l a ; S 4

o f t ha t Ac t .

The ques t ion immec?lately ar lses whether that .

s e c t l o n h a s any a p p l i c a t l o n to a proceedin?

hpFore the Fedcra l Cour t . I t is recoqnlzed

tha t . t ra r7 l t lona l ly the Federa l Cour t has ac ted

on t.he basis t h a t S 197A does so apply and accordingly has re fused t o make o r d e r s a g a i n s t

a p a r t y t o a proceedlng before the Federa l

C o u r t i n a m a t t e r a r i s i n g u n d e r t h e

C o n c l l l a t l d n and A r b i t r a t i o n A c t . I t w a s

a r g u e d t h a t t h e e f f e c t o f S 118A of t h e Act is

s u f f i c i e n t tO ens-21-e t h a t B 197P. does so apply

t o proceedlngs before the Federa l Cour t . That

s e c t l o n y r o v i d e s s u b s t a n c e i n t h a t t h e

] u r l s d i c t 1 o n ar:d powers ves t ed i n or

e x e r c l s o t 1 e h q t h e A v s t r a l i a n I n d u s t r l a l C o u r t

or a ~ u d g e o i t h a t cou r t a r e , excep t i n

c e r t a l n s r e c i f i e d m a t t e r s , v e s t e d lr. and

e x e r c i s E b i e b y t h ? r'ederal. Court of A u s t r a l i a

or a ~ u d g e o f t h a t c o u r t . By S 1 1 8 A ( l ) ( b ) , it

p r o v l d e s t h a t a r e f e r e n c e i n t h e C o n c l l l a t l o n

and A r b l t r a t i o n A c t t o ' t h e c o u r t ' o t h e r t h a n

I n enumerated sect lons lncludlng S 116 s h a l l ,

I n r e l a t l o n t h a t ~ u r i s d j c t i o n or t o , and t o m a t t e r s a r l s i n g o u t of

t h o s e powers a s so v e s t e d

o r e x e r c l s a b l e , be read as Conci l ia t io .1 r e f e r e n c e s t o t h p

Federa l Cour t o f Aus t ra l la I n I ts I n d U S t r l 2 l

D lv l s lon . Sec t lon 116 of the and

A r h l t r a t l o n Act 1 s r e f e r r e d t o s p e c i f l c a l l y

since t h a t 1s t h e s e c t l o n w?Iich v e s t s power i n

the I n d u s t r i a l C o u r t t o make such orders a s it

t h i n k s j u s t a s t o t h e c o s t s and expenses of

p r o c e e d l n g s h e f o r e t h a t c o u r t . The powers

confer red by t h a t s e c t i o n d o n o t a p p l y t o t h e

Fecieral C o u r t .

- 7 -

Tne dereglstration proceedlngs come to the

Federal Court pursuant to S 143 of the

Concillatlol1 en3 Frhitration Act, S l l g ~ of

that kct, ant1 .F of rhe Federal ' Court of

Australia Act 1976. That section provides

th?.t the court, in thlr; case the Federal

COLI't, hals 5ur;l or-qlrlal Jurisdiction as is vested in It ?y law: made by the Parliament, being ~urlsdlction In respect of matters arlslng under 1?dz Fade hy the Parliament. In that sectlcr, '-h? w o r d 'matters' is to be glven Its technical meanlng oi matters or

things ln controversy between parties the

sub~ect OC leqal proceedings.

When one turnc agaln to S 197A of the

Conclllation and Arbltration Act, it is noted that Its applicatlon is llmited to a party to a proceeding before the Australian Industrial Court. On Its face, it 1s not to apply to a

party to a proceeding before the Federal

Court. I do not flnd it necessary to resolve this questlon in these proceedings, but I draw

attentlon to it slnce lt might require conslderation by the legislature in due

course. 'I

As far as I know, the legislature has not seen fit

to take any action pursuant to that suggestion. It would

have been easy to do so by inserting the words 'or before the

Fcdera l Court of Australia' in the appropriate place in

paragraph (h) of s.107A Conclllation an? Arbitration Act.

It 1s necessary to emphasize that the power of the

Federal Court to make orders for costs against a party to

proceedings under the Conciliatlon and Arbitration Act is not

a power vested in the Federal Court by reason of s.llRA

Conclllatlon and Arbitratlon Act.	Sub-section (1) of that
section 1s read in full:

:

- 8 -

"118A. (1) On and a f t e r t h e d a t e of

commencement of t h l s P a r t -

t h e j u r i s d l c t i o n and powers expressed by

thls Act t o be vested i n or e r e r c l s a b l e

by the C o u r t or a Judge of t h e C o u r t a r e ,

e x c e p t I n r e l a t i o n t o m a t t e r s i n r e s p e c t

of which the hear ing of p roceedings in

t h e A u s t r a l i a n I n d u s t r i a l Cocrt had

commencef! o r been completed before that

d a t e , v e s t e d i n and e x e r c i s a b l e b y t h e

Federa l C o u r t o f s u b ~ e c t Aus t r a l i a or a Judge of

t h a t C o u r t a n d , t o t h i s s e c t i o n ,

a r e e x e r c i s a b l e I n accordance wi th the

Fede ra l Cour t o f Aus t r a l i a A c t 1956; and

a r e f e r e n c e i n t h l s Act t o t h e C o u r t

( o t h e r t h a n s e c t i o n s i n 1 0 4 , 1 0 5 ,

sub-sec t lons ( l ) and ( 2 ) o f s e c t i o n 111

and s e c t l o n s 114, 115, 116 , 117 , 118 and

1 8 4 ) s h a l l , i n r e l a t l o n t o , a n d t o

m a t t e r s a r l s l n q o u t o f , t h a t ] u r i s d l c t i o n

or t h o s e p o w e r s a s so v e s t e d or

e x e r c l s a b l e , b e r e a d a s r e f e r e n c e s t o t h e

F e d e r a l C o u r t A u s t r a l i a o f i n i t s

J n d u s t r l a l D l v l s i o n . "

A number of obse rva t ions m u s t be made a b o u t t h a t

sub - sec t lon .

(1) T h e s u b - s e c t i o n , p a r t i c u l a r l y p a r a g r a p h ( b ) , i s

conce rned w l th j u r l sd i c t lon and powers. I t does not. s ay

t h a t r e f e r e n c e s I n t h e C o n c i l i a t i o n and A r b i t r a t l o n Act

t o t h e A u s t r a l i a l n d u s t r i a l C o u r t shou ld be r ead a s

r e f e r e n c e s t c , t k Fed.xill Court of A u s t r a l i a . F o r t h i s

reason it i s not otherwise c l e a r l y i n t e n d e d , w i t h i n t h e

meaning of s . 4 C o n c l l i a t l o n and A r b i r r a t i o n A c t , t h a t

the words " the Cour t" , when used in s.197A, mean t h e

Federa l Cour t o f Aus t ra l ia .

- 9 -

(2) Under paragraph (b), references In the Conclllation and

Arbitratlon Act to the Australian Industrial Court, -

exzept in specified sections, shall - "in relation to

and to matters arlsing out of" the ~urlsdlction or the

powers referred to In paragraph (a) - be read as

references to the Federal Court.

( 3 ) One of the excepted sections is s.116 Conciliation and

Arbltratlon Act. That section conferred E power or, t11.c.

Australlan Industrial Court to make orders for costs

agalnst a party to "proceedings before" the Australian

Industrlal Court. Thet sectlon should be read:

"116. Subject to section 197A and to the

regulations, the Court may make such orders as It thmks just as to the costs and expenses (Including the expenses of witnesses) of

proceedings before the Court, lncluding

proceedings dismissed for war. t of

~urlsdlction."

Note the v:ords, "Sub~ect to section 197A". Those words

were first inser:@,? in 1973 by the same Act whlch

inserted s . 1 9 i . X lntg the Conciliation and Arbitration

P-ct. Note	clso the power to award costs applied to all
-

proqeedln2s tefsrs ??K: Ahstrallan Industrial Court an3

was not limited to proceedings under the Conciliatisn

and Arbitration Act.

, .

- 10 -

( 4 ) The power confe r r ed upon t h e A u s t r a l l a n I n d u s t r i a l C o u r t

t o F a k e o r d e r s f o r c o s t s , no matter under what Act, i s

n o t a power which 1s vested l n t he Fede ra l Courk by

s . 1 1 8 A C o n c i l l a t l o n and A r b l t r a t l o n R c t .

I n my op in ion , on i t s p r o p e r c o n s t r u c t i o n s .197A

C o n c l l i a t i o n a n d A r b i t r a t i o n Act h a s n o a p p l i c a t l o n t o

p r o c e e d i n g s b e f o r e t h e F e d e r a l C o u r t b r o u g h t u n d e r t h c

C o n c i l i a t i o n nncl A r b i t r a t l o n A c t . On i t s f a c e , s . 1 9 7 A

-

Conc i l i a t ion ano Arb l t r a t lon Ac t 1s not an Act providing that

cost5 i n a p roceed ing be fo re t he Fede ra l Cour t sha l l no t be

awar2ed except as t h e r e l n s p e c i f i e d . A c c o r d i n g l y , t h a t

s e c t l o n c a n have n o a p p l i c a t i o n u n d e r 5 . 4 3 Federa l Cour t OF

Australia Act. -

I n J o n e s v . T h i e s s Bros. P t y . L t d . ( 1 9 7 7 ) 3 0

F.L.R. 422, Kecly J. h e l d t h a t h e had n o power t o o r d e r costs

a g a i n s t a par ty p roceeding before the Federa l Cour t under the

C o n c l l l a t l o n and A r b i t r a t l o n act . H e d i d n o t g l v e r e a s o n s

f o r t h a t o p i n i o n , and a t p.443 h e s a i d :

" M r . Lawrence, on beha l f o f t he i n fo rman t ,

s o u g h t a n o r d e r f o r c o s t s a g a i n s t t h e

defendant . He pu t an argument tha t , a lkhough

no order for cos t s could be made under s.197A

o f t h e C o n c i l l a t l o n and A r b i t r a t i o n A c t i f t h e

mat te r had been before the Commonweal th

I n d u s t r i a l C o u r t , s.43 of the Federa l C o u r t of

A u s t r a l i a A c t 1976 a l lowed t h l s Cour t t o make

o r d e r a n as t o costs . Mr. B r o w n . i n

c o n t e n d l n g t h a t t h e r e was no power t o g r a n t

t h e a p p l l c a t i o n f o r c o s t s , r e l i e d upon

s . l l e A ( l ) ( b ) o f t h e Act ( inser ted by s.3 of

- 11 -

A c t N o . 160 of 1 9 7 6 ) which provides tha t : ' e

r e f e r e n c e i n t h l s Act t o t h e C o u r t [ o t h e r t h a n

I n c e r t a i n s e c t i o n s n o t i n c l u d l n g s . 1 9 7 A I

s h a l l , I n r e l a t i o n t o ... t h a t j u r i s d i c t i o n

... be read ?E r e fe rences t o the Federa l Cour t

of Australia l n I t s I n d u s t r i a l D i v l s l o n ' .

I n my o p l n i o n t h e c o m t h a s no power t o o r d e r

t he de fendan t	t o	pay	t h e c o s t s I n c u r r e d b y t h e
in formant . "

The m a t t e r was d i scussed by E l l i c o t t J. i n S t a p l e t o n v .

A f r i c a n L l o n S a f a r i P t y . L t d . (1982) 4 3 A.L.R. 305. That

~udgment was g i v e n a f t e r V l n e r ' s case, b u t h i s Honour made no

r e f e r e n c e t o the d l c t a c o n t a i n e d i n V i n e r ' s c a s e . F u r t h e r ,

h i s Honour made no r e f e r e n c e t o t h e b a s i s upon which t h a t

d l c t a was made. The bas i s o f t he j udgnen t i n S t a p l e t o n ' s

- case appea r s t o be t ha t because t he p roceed lngs i n t h e

Federal Court were proceeding I n a m a t t e r a r i s i n g u n d e r t h e

C o n c l l l a t l o n and A r h l t r a t i o n A c t , s.197A Conc l l i a t ion and

A r b l t r a t l o n A c t app l l ed t o t hose p roceed lngs and c o n s t i t u t e d

an A c t which provided that costs should n o t be awarded withln

t h e m e a n l n g of S . 4 3 F e G e r a l C o u r t o f A u s t r a l i a A c t . A t

-

pp.387-8 h i s H o n o u r , a f t c r r e f e r r l n q s . l 1 8 A ( 1 ) t o

C o n c l l l a t i o n and A r b l t r a t i o n A c t , s a i d :

"Paragraph ( b ) r e q u i r e s t h e words ' t h e C o u r t ' ,

i n any p rov i s ion o the r than t h o s e excepted , t o

be r ead a s be ing a r e f e r e n c e t o the Fede ra l

.Court b u t t h e y a r e t o b e so read ' i n r e l a t l o n

t o , a n d t o m a t t e r s a r i s m g o u t o f t h a t

~ u r i s d i c t i o n o r t h o s e powers a s so ves t ed or

e x e r c i s a b l e ' . S e c t i o n 197A i s not excepted

and it does not refer s p e c i f i c a l l y t o S 116.

I t p r o v i d e s , l n t e r a l i a , t h a t a p a r t y t o a

p r o c e e d i n g b e f o r e t h e c o u r t i n a m a t t e r

a r i s l n g u n d e r t h e A c t s h a l l n o t be ordered t o

I - -- - - -

- 12 -

pay any t h a t p r o c e e d i n g e x c e p t i n c e r t a i n e v e n t s . cos ts incur red by any other p a r t y t o

Broad ly spcak ing pa ra ( a ) ves t s i n and makes

exerc isab le by the Federa l Cour t the same

j u r i s d i c t i o n a n d t h e same powers i n r e l a t i o n

t o f u t u r e m a t t e r s a s would have been ves t ed i n

or e x e r c l s a b l e by the I n d u s t r i a l C o u r t . This

1 s t h e j u r l s d l c t i o n and these a r e t he powers

r e f e r r e d t o a s 'so ves t ed or e x e r c i s a b l e ' i n

p a r a ( b ) . I t IS ' i n r e l a t i o n t o ' t h a t

j u r i s d i c t i o n and those powers or ' i n r e l a t i o n

t o m a t t e r s a r l s l n g o u t o f ' t h a t j u r l s d l c t i o n

and t h o s e powers t h a t r e f e r e n c e s t o t h e cour-c

i n s e c t i o n s o f t h e A c t , o t h e r t h a n t h o s e

e x c e p t e d , a r e t o b e r e a d a s r e f e r r l n g t o t h e

F e d e r a l C o u r t I n i t s I n d u s t r i a l D l v i s i o n .

Sec t ion 197A. i f so read , would have t he

e f f e c t t h a t a p a r t y t o a p roceed lng be fo re the

F e d e r a l C o u r t i n a m a t t e r s u c h a s t h i s ,

a r i s l n g u n d e r t h e A c t , c o u l d n o t , e x c e p t a s

p rovided , be o rdered t o pay t h e costs of

a n o t h e r p a r t y . T h i s cou r t c l e a r l y h a s

~ u r l s d l c t l o n , a s a r e s u l t of S 1 1 8 A ( l ) ( a ) , t o

d e a l w l t h a p roceed ing such a s t h i s fo r a n

o f f e n c e a g a i n s t S 5 a l l eged ly commi t t ed a f t e r

P t VA comenced . Sec t ion 197A c l e a r l y makes

p r o v l s l o n i n r e l a t i o n t o , o r t o a m a t t e r

a r l s i n g o u t o f , t h a t j u r i s d l c t l o n when r e a d a s

d l r e c t e d . I t 1 s ' I n r e l a t l o n t o ' t h a t

~ u r i s d i c t i o n o r ' a m a t t e r a r l s l n q o u t o f ' it

because it r e l a t e s t o w h e t h e r a p a r t y t o t h e

p r o c e e d i n g I n which t h e ~ u r i s 8 i c t i o n i s

e x e r c l s e d , s h a l l b e o r d e r e d t o p a y c o s t s .

It was a rgued tha t para (b) on ly app l i ed where

the Fede ra l C o u r t was e x e r c l s i n g j u r i s d i c t i o n

or powers p rev ious ly ves ted in or e x e r c i s a b l e

by t he Aus t r a l i an Indus t r l a l Cour t . In t h e

l i g h t o f t h e e x c l u s i o n o f S 116 f rom S

1 1 8 A ( l ) ( b ) , so the ]u r i sd i c t ion argument wen t , it could n o t

have been intended, by p a r a ( a ) , t o v e s t i n

the Fede ra l Cour t he t o r powers

of the I n d u s t r i a l C o u r t i n r e l a t i o n t o C O S t S .

Therefore , it was s a i d , s i n c e S 197A was a

, p r o v i s l o n which re la ted t o the I n d u s t r i a l

. C o u r t ' s power t o award costs, and s i n c e t h l s

power was no t ves t ed i n the Federa l Cour t , it

could not be a p rov i s ion wh ich r e l a t ed t o t he

j u r i s d l c t i o n v e s t e d I n o r e x e r c i s a b l e b y the

Federal Court .

- 13 -

I t h i n k a t t e m p t t h e f a l l a c y i n t h i s argument i s i t s

t o t r e a t S 197A a s t l e 3 , i n some way,

t o S 116. Before the Federal Court was

e s t a b l i s h e d I t was f o r p r a c t l c a l p u r p o s e s so

tled b u t , I n I ts terms, It i s no t so dependent

a n d c a n i n t e r p r e t a t l o n , a p p l y , w i t h o u t a n y d i f f i c u l t y o f

t o any proceeding before the

Federal Court i n a m a t t e r a r l s i n g u n d e r t h e

Act. The ~ u r i s d l c t i o n and powers vested in or

e x e r c i s a b l e by s u b j e c t the pa rag raph Fede ra l Cour t by v i r tue o f

S 1 1 8 A ( l ) ( a ) a r e , t o S 118A, made

exe rc i sab le by t ha t i n accordance

with the Thls would , ~n my view, Ib: leral Court of Australia Act 1976.

apply S 4 3 of t h a t Act

w h l c h c o n f e r s ~ u r i s d l c t i o n t o award c o s t s .

Bct it excep t s , as a l ready no tee , p roceedings

In respcct- a€ wlilch any o ther A c t p rovides

t h a t c o s t s s h a l l no t be awarded. By v i r t u e of

S ]le?.( l)(h) o f t h e C o n c i l i a t i o n a n d

Arb l t r a t lon Ac t , S 1 9 7 A o f t h a t Act i s sucb a

p r o v l s l o n and t h e r a f o r e thls c o u r t ' s power t o

ac:arcl c o s t s 1 s t o t h a t e x t e n t l l m l t e d . "

Wlth a l l r e s p e c t , t h i s d o e s n o t f o l l o w . T h a t

r e a s o n l n g I g n o r e s t h e f a c t t h a t s.197h C o n c i l i a t i o n a n ?

A r b l t r a t i o n A c t i s d i r e c t e d t o Federa l a p a r t y t o p r o c e e d i n g s I n

s p e c i f l e d c o u r t s , and tha t the Cour t i s no t one O f

t hose spec l fxed cour t s . I n my O p l n l o n , t h e f a c t t h a t

proceedlngs i n the Federa l Cour t a re p roceedlnos I n a m a t t e r

a r l s lnc j under the Conci l la t ion and A r b i t r a t i o n P.ct i s

n o t o f i t s e l f s u i f i c l e n t t o make proceedings. s .197A Concl l ia t lon and

A r b i t r a t i o n A c t a p p l y t o t h e s e F u r t h e r , I n

m a k i n q a n o r d e r f o r c o s t s , t h e F e d e r a l C o u r t i s n o t

exerclr ; lng a ~ u r i s d l c t i o n o r power vested I n it by s.llRA(I )

C o n c l l l a t l o n and A r b i t r a t i o n A c t .

l

- 14 -

I am very conscious of the necessity to adhere strictly to the doctrlne of precedent in the Federal Court. I have expressed views on that matter: see Wood v. The City

of Melbourne (1979) 41 F.L.R. 22 at pp.24-6.

In the present case an appeal lies to the Full Court from any order as to costs. Nevertheless, in all the

Circumstances I decline to follow Jones's case and

Stapleton's case. In Jones's case no reasons were given. In Stapleton's case no reference was made to Viner's case nor to the basis for the cllcta contained therein. In my opinlon there is a real posslbiilty that Stapleton's case was given per ncuriam, and that it is demonstrably mistaken; see Pynehoard Pty. Llmlted v. Trade Practices Commission (1981)

57 F.L.R. 368, per Northrop, Deane and Fisher JJ. at p.371.

The Court determines, therefore, that s.197A

Conciliation and Arhltratlon Act - does not apply to

proceedings before the Federal Court of Australia, and that

that Court has power to award costs against the applicant.

It becomes necessary, therefore, to decide whether to make ,an order for costs. This 1s a matter in the discretlon of the Court. Normally costs should follow the event. In the present case, however, special circumstances may be relevant.

- 15 -

Under the Federal Court Rules the general method of

commenclng proceedings in civil matters is by way of

application. That appears from 0.4 r.1, Federal Court Rules. A special rule, however, applies where applications are made under sections 140 and 141 Conciliation and Arbitration Act (see 0.4 r.l5), and I quote sub-rules (1) and (2) of that rule:

"15. (1) This rule shall operate only for so

long as sub-sectlon 141A(2) of the

Concillation and Aribtration Act 1904

speclties the makinq of a rule as a condltion ~ -

Precedent to the grant of financial

assistance.

( 2 ) A proceeding under section 140 or

section 141 of the Conciliation and

Arbitration Act 1904 shall be by rule in accordance with Form 6 calling upon the person or organization concerned to show cause why the order should not be made."

That form of procedure was adopted in the present case. The rule nlsi procedure is an exception to the normal requirement provided for by the Federal Court Rules and that special procedure is obvlous because of the provlsions of s.141A Conclllation and Arbitratlon Act. That section and s.141B are lengthy and I do not need to read them in full. Under s.141A where a rule nisi has been granted in proceedings under s.140 or s.141 Conciliation and Arbitratlon

- Act, the Attorney-General is empowered to authorize payment

by the Commonwealth of the costs of the applicant and any cost the applicant has become liable to pay or may become

- 16 -