Communications Electrical Electronic Energy Information Postal Plumbing and Allied Services Union of Australia v McKenzie (No 1)

Case [2009] FCA 649


FEDERAL COURT OF AUSTRALIA

Communications Electrical Electronic Energy Information Postal Plumbing & Allied Services Union of Australia v McKenzie (No 1) [2009] FCA 649

COMMUNICATIONS ELECTRICAL ELECTRONIC ENERGY INFORMATION POSTAL PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA v CRAIG MCKENZIE, NATIONAL ELECTRICAL CONTRACTORS ASSOCIATION and STOWE AUSTRALIA PTY LIMITED

NSD 297 of 2009

PERRAM J
5 JUNE 2009
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 297 of 2009

BETWEEN:

COMMUNICATIONS ELECTRICAL ELECTRONIC ENERGY INFORMATION POSTAL PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA
Applicant

AND:

CRAIG MCKENZIE
First Respondent

NATIONAL ELECTRICAL CONTRACTORS ASSOCIATION
Second Respondent

STOWE AUSTRALIA PTY LIMITED
Third Respondent

JUDGE:

PERRAM J

DATE OF ORDER:

5 JUNE 2009

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.The respondents serve the applicant with any request for particulars by 4 pm on 29 May 2009.

2.The applicant supply the respondents with particulars properly requested by 4 pm on 12 June 2009.

3.Each respondent file and serve its defence by 4 pm on 26 June 2009.

4.The applicant file and serve any reply to the defences by 4 pm on 10 July 2009.

5.The parties each file and serve categories of documents for discovery by 24 July 2009 except that the first respondent shall not be required to give discovery.

6.The applicant, second respondent and third respondent each serve a list of documents on the other parties to the proceeding listing all documents required to be discovered together with an affidavit verifying the list by 14 August 2009.

7.The parties inspect discovered documents by 28 August 2009.

8.The applicant file and serve all affidavits upon which it intends to rely on or before 18 September 2009.

9.The second and third respondents file and serve all affidavits upon which they intend to rely by 30 October 2009.

10.The applicant file and serve any affidavits in reply to the affidavits of the second and third respondents by 27 November 2009.

11.The matter be stood over for further directions at 9.30 am on 8 December 2009.

Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


The text of entered orders can be located using eSearch on the Court’s website.


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 297 of 2009

BETWEEN:

COMMUNICATIONS ELECTRICAL ELECTRONIC ENERGY INFORMATION POSTAL PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA
Applicant

AND:

CRAIG MCKENZIE
First Respondent

NATIONAL ELECTRICAL CONTRACTORS ASSOCIATION
Second Respondent

STOWE AUSTRALIA PTY LIMITED
Third Respondent

JUDGE:

PERRAM J

DATE:

5 JUNE 2009

PLACE:

SYDNEY

REASONS FOR JUDGMENT

  1. There are three issues between the parties.  They are:

    (a)whether and to what extent the first respondent is obliged to give discovery;

    (b)whether the respondents should be required to serve evidence prior to the applicant closing its case; and

    (c)the nature of the directions which are appropriate consequent upon the answers to those first two questions.

  2. These issues arise in the context of the applicant pursuing the respondents for the imposition of a civil penalty under the Building and Construction Industry Improvement Act 2005 (Cth) (“the Act”). The first respondent is a natural person; the second and third respondents are corporations.

    The first issue – extent of obligation to give discovery

  3. The applicant submits that I should direct each of the respondents, including the personal respondent “to make discovery on oath save that the first respondent is not compelled to list or produce any documents which he believes in good faith fall within the privilege against the penalty”.  I will not make this direction.  It assumes, incorrectly, that the first respondent’s privilege inheres in documents when in truth it actually inheres in the first respondent.  Because the applicant seeks the imposition of a penalty on the first respondent he is not obliged to give discovery: see Rich v Australian Securities and Investments Commission (2004) 220 CLR 129 at 147 [39] per Gleeson CJ, Gummow, Hayne, Callinan and Heydon JJ. The second and third respondents did not suggest that they should not be obliged to give discovery.

    The second issue – time for service of evidence

  4. The applicant submitted that I should direct that the respondents file any affidavits they wish in advance of the trial but retain the right to amend their defences and serve affidavits after the close of the applicant’s case.  In the case of the first respondent I am certain that such a direction should not be made.  It would be contrary to this Court’s decision in Australian Competition and Consumer Commission v FFE Building Services Ltd (2003) 130 FCR 37 at 44 [29] per Emmett, Hely and Jacobson JJ. The position of the other two respondents is a little more complex. Neither has the privilege that the first respondent does so that there is no prima facie reason why they should not be required to put their evidence on. It might be tidy to put those corporate respondents in the same position as the natural person respondent but I do not think that considerations of an aesthetic nature are sufficient to deny the applicant its entitlement to know the second and third respondents’ case in advance.

  5. The same issue, in fact, arose in Australian Competition and Consumer Commission v FFE Building Services Ltd. Although the Court did not need to decide the issue, it is apparent that all parties, the first instance judge and the Full Court (130 FCR 37 at 39 [6]) considered that this was an appropriate course to take. In my opinion that assumption was a well-founded one. Accordingly the corporate respondents will not be relieved from the obligation to furnish their evidence prior to the trial.

    The third issue – appropriate directions

  6. I will make a number of directions.  I have not made any order in relation to the granting of leave to issue subpoenas.  The procedure which is normally adopted about that is that a party applies to issue the subpoena in the registry which I will then deal with in chambers.

  7. I have not made a number of the other pre-trial directions sought because my anticipation will be that on 8 December 2009 I will fix the matter for hearing so the parties should have a better idea of how long it will take on that day.  I will make appropriate pre-trial directions at that time.

I certify that the preceding seven (7) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Perram.

Associate:

Dated:        15 June 2009

Counsel for the Applicant: Mr SEJ Prince
Counsel for the First Respondent: Mr B Miles
Counsel for the Second and Third Respondents: Mr G Boyce
Counsel for the Intervener: Mr PC Coleman
Date of Hearing: 5 June 2009
Date of Judgment: 5 June 2009
Details
AGLC
Communications Electrical Electronic Energy Information Postal Plumbing and Allied Services Union of Australia v McKenzie (No 1) [2009] FCA 649
Case
[2009] FCA 649
Decision Date

CaseChat Overview and Summary

The case of Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v McKenzie (No 1) involved the Union as the applicant and McKenzie as the first respondent, along with two other respondents. The dispute centred around various procedural matters, including the granting of discovery, the timing of evidence service, and the appropriateness of certain pre-trial directions. The court was required to address these issues in the context of the Federal Court of Australia.

The primary legal issues before the court were whether the first respondent should be compelled to give discovery despite a belief in the existence of privilege, the timing for the service of evidence, and the appropriateness of certain pre-trial directions. The court needed to balance the applicant's rights to discovery with the respondents' privileges and procedural fairness. Regarding the timing of evidence service, the court had to decide if the corporate respondents should be required to furnish their evidence prior to the trial, despite differing from the natural person respondent in terms of privilege. Additionally, the court had to determine whether certain pre-trial directions were necessary and appropriate, given the procedural context and the parties' submissions.

The court concluded that the applicant was not entitled to compel the first respondent to give discovery if the respondent believed in good faith that the documents were privileged. This decision was based on the principle that privilege inheres in the respondent, not the documents themselves. The court further held that the corporate respondents should not be relieved from the obligation to furnish their evidence prior to the trial, aligning with previous case law. The court made several pre-trial directions, including deadlines for the service of particulars, defences, and affidavits, and scheduled a further hearing to address additional directions. These decisions aimed to ensure procedural fairness and efficient management of the case.

The court's final orders included specific deadlines for the service of particulars, defences, and affidavits, as well as directions for the inspection of discovered documents. The matter was stood over for further directions to be provided on a later date, ensuring that the parties had a clearer understanding of the trial's duration and the procedural requirements.

Orders

Orders of the court

1. The respondents serve the applicant with any request for particulars by 4 pm on 29 May 2009.

2. The applicant supply the respondents with particulars properly requested by 4 pm on 12 June 2009.

3. Each respondent file and serve its defence by 4 pm on 26 June 2009.

4. The applicant file and serve any reply to the defences by 4 pm on 10 July 2009.

5. The parties each file and serve categories of documents for discovery by 24 July 2009 except that the first respondent shall not be required to give discovery.

6. The applicant, second respondent and third respondent each serve a list of documents on the other parties to the proceeding listing all documents required to be discovered together with an affidavit verifying the list by 14 August 2009.

7. The parties inspect discovered documents by 28 August 2009.

8. The applicant file and serve all affidavits upon which it intends to rely on or before 18 September 2009.

9. The second and third respondents file and serve all affidavits upon which they intend to rely by 30 October 2009.

10. The applicant file and serve any affidavits in reply to the affidavits of the second and third respondents by 27 November 2009.

11. The matter be stood over for further directions at 9.30 am on 8 December 2009.

Note:

Background

Background to the litigation

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Evidence

Evidence Before The Court

The applicant submits that I should direct each of the respondents, including the personal respondent “to make discovery on oath save that the first respondent is not compelled to list or produce any documents which he believes in good faith fall within the privilege against the penalty”. I will not make this direction. It assumes, incorrectly, that the first respondent’s privilege inheres in documents when in truth it actually inheres in the first respondent. Because the applicant seeks the imposition of a penalty on the first respondent he is not obliged to give discovery: see Rich v Australian Securities and Investments Commission (2004) 220 CLR 129 at 147 [39] per Gleeson CJ, Gummow, Hayne, Callinan and Heydon JJ. The second and third respondents did not suggest that they should not be obliged to give discovery.The second issue – time for service of evidence The applicant submitted that I should direct that the respondents file any affidavits they wish in advance of the trial but retain the right to amend their defences and serve affidavits after the close of the applicant’s case. In the case of the first respondent I am certain that such a direction should not be made. It would be contrary to this Court’s decision in Australian Competition and Consumer Commission v FFE Building Services Ltd (2003) 130 FCR 37 at 44 [29] per Emmett, Hely and Jacobson JJ. The position of the other two respondents is a little more complex. Neither has the privilege that the first respondent does so that there is no prima facie reason why they should not be required to put their evidence on. It might be tidy to put those corporate respondents in the same position as the natural person respondent but I do not think that considerations of an aesthetic nature are sufficient to deny the applicant its entitlement to know the second and third respondents’ case in advance. The same issue, in fact, arose in Australian Competition and Consumer Commission v FFE Building Services Ltd. Although the Court did not need to decide the issue, it is apparent that all parties, the first instance judge and the Full Court (130 FCR 37 at 39 [6]) considered that this was an appropriate course to take. In my opinion that assumption was a well-founded one. Accordingly the corporate respondents will not be relieved from the obligation to furnish their evidence prior to the trial.The third issue – appropriate directions I will make a number of directions. I have not made any order in relation to the granting of leave to issue subpoenas. The procedure which is normally adopted about that is that a party applies to issue the subpoena in the registry which I will then deal with in chambers. I have not made a number of the other pre-trial directions sought because my anticipation will be that on 8 December 2009 I will fix the matter for hearing so the parties should have a better idea of how long it will take on that day. I will make appropriate pre-trial directions at that time.

Decision

Reasons for decision

PERRAM J

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Ratio Decidendi

Legal Principle Established

Established by: PERRAM J

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