FEDERAL COURT OF AUSTRALIA
Commonwealth of Australia v Harrison [2019] FCA 937
File number: NSD 2074 of 2018 Judge: PERRY J Date of judgment: 19 June 2019 Catchwords: EDUCATION – multiple alleged contraventions of the National Vocational Education and Training Regulator Act 2011 (Cth) – where, among other things, the respondent offered to provide Vocational Education and Training (VET) courses or parts of VET courses, and purported to issue VET statements of attainment and VET qualifications, when the respondent was not a registered training organisation and the VET statements of attainment and VET qualifications were not genuine – application for default judgment under rule 5.23, Federal Court Rules 2011 (Cth) – where the respondent was in default and had every opportunity to participate in the proceeding – application granted – declarations made Legislation: National Vocational Education and Training Regulator Act 2011 (Cth) ss 117, 125, 127, 129, 131
Federal Court Rules 2011 (Cth) r 5.23(2)
Cases cited: Australian Competition and Consumer Commission v Adata (Vic) Pty Ltd (No 3) [2015] FCA 583
Australian Competition and Consumer Commission v Dataline.Net.Au Pty Ltd (in liq) [2007] FCAFC 146; (2007) 161 FCR 513
Australian Competition and Consumer Commission v Dataline.Net.Au Pty Ltd [2006] FCA 1427; (2006) 236 ALR 665
Director of Consumer Affairs v Nightingale Electrics Pty Ltd [2016] FCA 279
Hipages Group Pty Ltd v Reach Aussie Pty Ltd [2017] FCA 112
Lenijamar Pty Ltd v AGC (Advances) Limited (1990) 27 FCR 388
Professional Administration Service Centres Pty Ltd v Commissioner of Taxation [2012] FCAFC 180; (2012) 295 ALR 52
Speedo Holdings BV v Evans (No 2) [2011] FCA 1227
Titan Support Systems Inc v Nguyen [2014] FCA 884
Yeo v Damos Earthmoving Pty Ltd [2011] FCA 1129
Date of hearing: 11 June 2019 Registry: New South Wales Division: General Division National Practice Area: Commercial and Corporations Sub-area: Regulator and Consumer Protection Category: Catchwords Number of paragraphs: 81 Counsel for the Applicant: Mr P Melican Solicitor for the Applicant: Australian Government Solicitor Counsel for the Respondent: The Respondent did not appear ORDERS
NSD 20724 of 2018 BETWEEN: THE COMMONWEALTH OF AUSTRALIA
Applicant
AND: DONNA AMANDA HARRISON
Respondent
JUDGE:
PERRY J
DATE OF ORDER:
19 JUNE 2019
THE COURT ORDERS THAT:
1.Judgment be entered in favour of the Applicant pursuant to rule 5.23 of the Federal Court Rules 2011 (Cth) against the Respondent.
UPON ADMISSIONS WHICH THE RESPONDENT IS TAKEN TO HAVE MADE, AND UPON NON-COMPLIANCE WITH THE FEDERAL COURT RULES 2011 AND ORDERS OF THE COURT, FAILURE TO ATTEND A HEARING IN THE PROCEEDING, AND FAILURE TO DEFEND THE PROCEEDING WITH DUE DILIGENCE, IT IS DECLARED THAT:
2.In the period from 23 January 2015 to 8 November 2016, the Respondent (Ms Harrison) contravened s 117(1) of the National Vocational Education and Training Regulator Act 2011 (Cth) (NVR Act) on 134 occasions because she offered to provide all or part of a VET course, either in South Australia (to persons either in South Australia or Queensland)…
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- Case
- [2019] FCA 937
- Decision Date
CaseChat Overview and Summary
The legal issues before the Court were whether the Commonwealth had properly pleaded its case, whether there was any reason to not grant the declaratory relief sought, and if the Commonwealth was entitled to the relief claimed. The Court considered whether the Commonwealth had demonstrated that Ms. Harrison was in default and had every opportunity to participate in the proceeding. The Court also assessed if the claim fell within its jurisdiction and if each element of the relevant civil wrong was properly pleaded.
The Court found that the Commonwealth had properly pleaded its case and that there was no reason in the exercise of discretion not to grant the declaratory relief sought. The Court accepted that Ms. Harrison was in default and had every opportunity to participate in the proceeding. The Court concluded that the Commonwealth was entitled to the relief claimed and granted the application for default judgment. The Court made several declarations against Ms. Harrison, including that she contravened various sections of the Act by offering to provide VET courses without being an RTO and by purporting to issue non-genuine VET statements of attainment and VET qualifications. The Court ordered judgment in favour of the Commonwealth and detailed the specific contraventions committed by Ms. Harrison.
The final orders included judgments in favour of the Commonwealth, declarations regarding Ms. Harrison's contraventions of the Act, and amendments to the future timetabling of the proceedings. The Court emphasized that the Commonwealth could seek additional evidence and submissions on pecuniary penalties and costs if the Court granted the declaratory relief sought.
Orders
Orders of the court
1. Judgment be entered in favour of the Applicant pursuant to rule 5.23 of the Federal Court Rules 2011 (Cth) against the Respondent.
UPON ADMISSIONS WHICH THE RESPONDENT IS TAKEN TO HAVE MADE, AND UPON NON-COMPLIANCE WITH THE FEDERAL COURT RULES 2011 AND ORDERS OF THE COURT, FAILURE TO ATTEND A HEARING IN THE PROCEEDING, AND FAILURE TO DEFEND THE PROCEEDING WITH DUE DILIGENCE, IT IS DECLARED THAT:
2. In the period from 23 January 2015 to 8 November 2016, the Respondent (Ms Harrison) contravened s 117(1) of the National Vocational Education and Training Regulator Act 2011 (Cth) (NVR Act) on 134 occasions because she offered to provide all or part of a VET course, either in South Australia (to persons either in South Australia or Queensland) or in and throughout Australia, and on each of those occasions she was not an NVR registered training organisation, as follows:
(a) Between 23 January and 27 January 2015, Ms Harrison, in South Australia, offered to provide Ms Kelly Bainbridge, in Queensland, 4 parts of a VET course concerning waxing, facial, lash and brow treatments and applying the principles of skin biology to beauty treatments when she was not an NVR registered training organisation.
(b) Between 29 March 2015 and 30 March 2015, Ms Harrison, in South Australia, offered to provide Ms Tahlee Bridges, in Queensland, a VET course concerning hairdressing when she was not an NVR registered training organisation.
(c) On 29 March 2015, Ms Harrison, in South Australia, offered to provide Ms Kate Matthews, in South Australia, 4 parts of a VET course concerning applying the principles of skin biology to beauty treatments, designing and applying make-up, remedial camouflage make-up and make-up for photography, when she was not an NVR registered training organisation.
(d) On 4 November 2015, Ms Harrison, in South Australia, offered to provide Ms Bridges, in Queensland, a VET course concerning hairdressing when she was not an NVR registered training organisation.
(e) Between November 2015 and January 2016, Ms Harrison, in South Australia, offered to provide Mr Craig Hasch, in South Australia, a VET course concerning hairdressing when she was not an NVR registered training organisation.
(f) As at 2 August 2016, Ms Harrison was offering to provide, on a Facebook profile associated with her business, Glow Salon, in and throughout Australia, a total of 45 VET courses or parts of VET courses concerning beauty treatments and hairdressing, when she was not an NVR registered training organisation.
(g) As at 4 August 2016, Ms Harrison was offering to provide, on a Facebook profile associated with her business, Glow Salon, in and throughout Australia, a total of 40 VET courses or parts of VET courses concerning training and assessment, beauty treatments and hairdressing when she was not an NVR registered training organisation.
(h) As at 5 August 2016, Ms Harrison was offering to provide, on the website glowsalon.biz, in and throughout Australia, a total of 29 VET courses or parts of VET courses concerning beauty treatments, hairdressing and fashion styling when she was not an NVR registered training organisation.
(i) As at 8 November 2016, Ms Harrison was offering to provide, on the website glowacademy.webs.com, in and throughout Australia, a total of 9 VET courses or parts of VET courses concerning beauty treatments and hairdressing when she was not an NVR registered training organisation.
3. In the period from 19 February 2015 to 26 April 2016, Ms Harrison contravened s 129 of the NVR Act on a total of 5 occasions when she purported to issue 5 statements as VET statements of attainment and on each occasion those statements were not genuine VET statements of attainment as follows:
(a) On 19 February 2015, Ms Harrison purported to issue Ms Kerrie-Ann Ditz a statement concerning hair extensions as a VET statement of attainment when that statement was not genuine.
(b) On 14 March 2015, Ms Harrison purported to issue Ms Bainbridge a statement concerning waxing, facial, lash and brow techniques as a VET statement of attainment when that statement was not genuine.
(c) On 22 December 2015, Ms Harrison purported to issue Ms Matthews a statement concerning designing and applying make-up and applying the principles of skin biology to beauty treatments as a VET statement of attainment when that statement was not genuine.
(d) On 19 April 2016, Ms Harrison purported to issue Ms Leanne Taylor a statement concerning cosmetic tattooing and applying the principles of skin biology to beauty treatments as a VET statement of attainment when that statement was not genuine.
(e) On 29 April 2016, Ms Harrison purported to issue Ms Ditz a statement concerning cosmetic tattooing and applying the principles of skin biology to beauty treatments as a VET statement of attainment when that statement was not genuine.
4. On 24 October 2015, Ms Harrison contravened s 127 of the NVR Act on 1 occasion when she purported to issue Ms Ditz a qualification concerning nail technology as a VET qualification when that statement was not genuine.
5. In the period from 19 February 2015 to 29 April 2016, Ms Harrison contravened s 125 of the NVR Act on a total of 6 occasions because she provided 5 statements and 1 qualification which, in the case of the statements, she falsely represented were genuine VET statements of attainment and, in the case of the qualification, she falsely represented was a genuine VET qualification, as follows:
(a) On 19 February 2015, Ms Harrison provided Ms Ditz a statement concerning hair extensions falsely representing to Ms Ditz that it was a genuine VET statement of attainment.
(b) On 14 March 2015, Ms Harrison provided Ms Bainbridge a statement concerning waxing, facial, lash and brow techniques falsely representing to Ms Bainbridge that it was a genuine VET statement of attainment.
(c) On 22 December 2015, Ms Harrison provided Ms Matthews a statement concerning designing and applying make-up and applying the principles of skin biology to beauty treatments falsely representing to Ms Matthews that it was a genuine VET statement of attainment.
(d) On 24 October 2015, Ms Harrison provided Ms Ditz a qualification concerning nail technology falsely representing to Ms Ditz that it was a genuine VET qualification.
(e) On 19 April 2016, Ms Harrison provided Ms Taylor a statement concerning cosmetic tattooing and applying the principles of skin biology to beauty treatments falsely representing to Ms Taylor that it was a genuine VET statement of attainment.
(f) On 29 April 2016, Ms Harrison provided Ms Ditz a statement concerning cosmetic tattooing and applying the principles of skin biology to beauty treatments falsely representing to Ms Ditz that it was a genuine VET statement of attainment.
6. On 27 July 2016, Ms Harrison contravened s 131(1) of the NVR Act on 2 occasions because she created or otherwise obtained 2 bogus VET qualifications in her own name concerning hairdressing and training and assessment, and on 27 July 2016 displayed each of those 2 bogus VET qualifications in premises from which she conducted a business and purported to hold out each of them as a legitimate VET qualification.
7. On 27 July 2016, Ms Harrison contravened s 125 of the NVR Act on 2 occasions because she created or otherwise obtained 2 fabricated qualifications in her own name concerning hairdressing and training and assessment, and on 27 July 2016 displayed them in premises from which she conducted a business and falsely represented that each of the 2 qualifications was a legitimate VET qualification issued to her by an RTO.
8. In the period from 29 March 2015 to 27 July 2016, Ms Harrison contravened s 125 of the NVR Act on a total of 6 occasions because, in providing information to students and members of the public about VET courses or courses held out as such, Ms Harrison made false representations about her relationship with RTOs as follows:
(a) On 29 March 2015, in providing information to Ms Bainbridge about a VET course concerning hairdressing or a course held out as such, Ms Harrison represented that she was affiliated with a genuine RTO, Adelaide Institute of Hair & Beauty Pty Ltd (AIHB), when in fact she was not.
(b) On 4 November 2015, in providing information to Ms Bridges and others about a VET course concerning hairdressing or a course held out as such, Ms Harrison represented that her business, Glow Salon, was associated with, or part of, an RTO known as ‘Ainos Education’, when in fact Ainos Education was not and is not an RTO.
(c) On 25 November 2015, in providing information to Ms Bridges about a VET course concerning hairdressing or a course held out as such, Ms Harrison represented that her business, Glow Salon, was associated with, or part of, an RTO known as ‘Ainos Education’, when in fact Ainos Education was not and is not an RTO.
(d) On 27 January 2016, in providing information to Ms Bridges and others about a VET course concerning hairdressing or a course held out as such, Ms Harrison represented that her business, Glow Salon, was ‘partnered’, or had an agreement, with the genuine RTO Sunbury College of Hair & Beauty Pty Ltd (Sunbury College), when in fact it was neither partnered nor had an agreement with Sunbury College.
(e) On 23 March 2016, in providing information to Ms Taylor about a VET course concerning hairdressing or a course held out as such, Ms Harrison represented that her business, Glow Salon, was ‘partnered’, or had an agreement, with the genuine RTO Sunbury College, when in fact it was neither partnered nor had an agreement with Sunbury College.
(f) On 27 July 2016, in providing information about a VET course concerning hairdressing or a course held out as such, on a poster displayed in premises from which she conducted her business, Glow Salon, Ms Harrison represented that the genuine RTO trading as Advanced Careers College was Glow Salon’s ‘training provider’ when it fact it was not.
9. Order 5 of the orders made on 11 June 2019 is amended so as to refer in place of 13 August 2019 to the date 21 August 2019.
THE COURT NOTES THAT:
10. The future timetabling of the remainder of the proceedings is addressed in the orders made on 11 June 2019.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
I agree with the Commonwealth’s submission that by analogy, these considerations are relevant also to an application under r 5.23(2)(c) such as that made here. 5. CONSIDERATION OF THE APPLICATION FOR DEFAULT JUDGMENT5.1 Background to, and overview of, the alleged contraventions Ms Harrison conducted a business located in South Australia variously known as “Glow”, “Glow Salon”, “Glow Salon Hair and Beauty Training”, “Glow Salon & Academy”, and “Glow Salon Hair & Beauty Treatment Academy” (Glow Salon) (statement of claim at [5]-[6]). Ms Harrison operated, and either maintained or caused to be maintained, a Glow Salon email address, together with a Facebook account associated with Glow Salon at facebook.com/glow salon.academy (the Glow Salon Facebook page) and websites associated with Glow Salon at glowsalon.biz (the glowsalon.biz website) and glowacdemy.webs.com (the glowacdemy.webs.com website) (together the Glow Salon websites). At all material times, training packages endorsed by the Ministerial Council (as defined in s 3 of the Act) were:(1)SIH11 - Hairdressing Training Package first endorsed by the Ministerial Council on 23 June 2011;(2)SIB10 - Beauty Training Package first endorsed by the Ministerial Council on 23 September 2010;(3)HLT07 - Health Training Package first endorsed by the Ministerial Council on 30 November 2006;(4)TAE10 - Training and Education Training Package first endorsed by the Ministerial Council on 14 February 2011; and(5)SHB - Hairdressing and Beauty Services Training Package first endorsed by the Ministerial Council on 22 September 2015.(statement of claim at [12]) Schedule 1 to the statement of claim lists the qualifications which were either included in the training packages set out above or a VET accredited course; and were a VET course within the meaning of s 3 of the Act (statement of claim at [13]). Schedule 2 in turn lists each of the units of competency which were, from the date specified in the schedule, included in the training packages set out above and were at all material times a unit of competency and part of at least one VET course (statement of claim at [14]). Against that background, the Commonwealth’s primary allegations to found the grant of declaratory and other relief may be summarised as follows. First, the Commonwealth alleges that Ms Harrison contravened s 117(1) of the Act on 134 occasions in the period between 23 January 2015 and 8 November 2016 because she offered to provide all or part of a VET course in South Australia to individuals in South Australia and Queensland, and in and throughout Australia via the Facebook page and Glow Salon websites, despite the fact that neither she nor Glow Salon were a RTO under the Act (originating application at [1]; statement of claim at [15]-[207]). I note in this regard that, as the Commonwealth submitted, each representation on each page within a website constituted a separate contravention of the Act. Secondly, the Commonwealth contends that Ms Harrison issued VET statements of attainment and a VET qualification to individuals between 19 February 2015 and 26 April 2016 when they were not genuine VET statements of attainment or a genuine VET qualification contrary to ss 129 and 127 of the Act respectively (originating application at [3] and [5]; statement of claim at [211]-[258]).