Coote Logistics Pty Ltd v Waugh, Delegate of the Director of Quarantine

Case [2010] FCA 1317


FEDERAL COURT OF AUSTRALIA

Coote Logistics Pty Ltd v Waugh, Delegate of the Director of Quarantine [2010] FCA 1317

Citation: Coote Logistics Pty Ltd v Waugh, Delegate of the Director of Quarantine [2010] FCA 1317
Parties: COOTE LOGISTICS PTY LTD v BRENDA WAUGH, DELEGATE OF THE DIRECTOR OF QUARANTINE and AUSTRALIAN QUARANTINE AND INSPECTION SERVICE
File number: WAD 321 of 2010
Judge: SIOPIS J
Date of judgment: 2 November 2010
Date of hearing: 2 November 2010
Place: Perth
Division: GENERAL DIVISION
Category: No Catchwords
Number of paragraphs: 9
Counsel for the Applicant: Mr RL Hooker
Solicitor for the Applicant: Cocks Macnish
Counsel for the First and Second Respondents:

Mr P Macliver

Solicitor for the First and Second Respondents:

Australian Government Solicitor


IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRALIA DISTRICT REGISTRY

GENERAL DIVISION

WAD 321 of 2010

BETWEEN:

COOTE LOGISTICS PTY LTD
Applicant

AND:

BRENDA WAUGH, DELEGATE OF THE DIRECTOR OF QUARANTINE
First Respondent

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE
Second Respondent

JUDGE:

SIOPIS J

DATE OF ORDER:

2 NOVEMBER 2010

WHERE MADE:

PERTH

THE COURT ORDERS THAT:

Stay Order

1.Upon the undertaking of the applicant as to damages, the operation of the decision of the first respondent on behalf of the second respondent made on or about 27 October 2010 to suspend the applicant’s “Quarantine Approved Place” approval is suspended until further order.

2.Each party has liberty to apply in relation to this stay order.

Affidavits

3.The applicant is to file and serve any further affidavits on which it intends to rely by 4.00 pm on 9 November 2010.

4.The respondents are to file and serve any further affidavits on which they intend to rely by 4.00 pm on 19 November 2010.

Submissions

5.The applicant is to file its submissions by 4.00 pm on 19 November 2010.

6.The respondents are to file their submissions by 4.00 pm on 22 November 2010.

Hearing

7.The hearing in this matter is provisionally set for 10.15 am on 24 November 2010.

Costs

8.Costs of today are in the cause.

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 Federal Law Search on the Court’s website.


IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRALIA DISTRICT REGISTRY

GENERAL DIVISION

WAD 321 of 2010

BETWEEN:

COOTE LOGISTICS PTY LTD
Applicant

AND:

BRENDA WAUGH, DELEGATE OF THE DIRECTOR OF QUARANTINE
First Respondent

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE
Second Respondent

JUDGE:

SIOPIS J

DATE:

2 NOVEMBER 2010

PLACE:

PERTH

REASONS FOR JUDGMENT

  1. On 27 October 2010, a delegate of the Director of Quarantine, Australian Quarantine and Inspection Service, wrote to the applicant informing it that she had decided in the exercise of her discretion under s 46A of the Quarantine Act 1908 (Cth), to suspend the applicant’s Quarantine Approved Place (QAP) approval, effective from midnight on 31 October 2010.

  2. The delegate said that she was of the view, given the four incidents of serious non‑conformities by the applicant on 4 May 2010, 26 June 2010, 6 August 2010 and 6 October 2010 respectively, that there were sufficient grounds to suspend the applicant’s QAP approval.  The delegate stated that the latter two incidents were found to have occurred after she had previously written to the applicant, on 14 September 2010, regarding its performance.

  3. The applicant, which has carried on business as a Quarantine Approved Place since 1996, has commenced a proceeding to review the suspension decision of the delegate.

  4. The applicant has also applied for an order under s 15 of the Administrative Decisions (Judicial Review) Act 1977 (Cth) staying the operation of the delegate’s decision suspending the applicant’s QAP approval.

  5. The following are my short reasons for making an order staying the operation of the decision of the delegate, pending the determination of the applicant’s review application.

  6. In my view, there is a serious question to be tried in relation to the question of whether in making the suspension decision, the delegate afforded natural justice to the applicant in respect of two important matters.  First, the delegate invited no submissions from the applicant in respect of the incident of 8 October 2010, which the delegate relied on in the making of the suspension decision.  Secondly, before making the suspension decision, the delegate invited no submissions from the applicant in relation to the more general question as to whether suspension of the applicant’s QAP approval was, in the exercise of the delegate’s discretion, the appropriate course in the circumstances.

  7. As to the balance of convenience, I take into account, on the one hand, the fact that the applicant has carried on a QAP business for a good number of years and that it employs a number of people in that that business.  It is a matter of some weight that if a stay of the suspension decision is not granted, and even if the applicant was to succeed at trial, there would be a substantial interruption to the applicant’s business, and interference with the lives and livelihoods of the persons who are employed by the applicant.

  8. I also accept, of course, as the respondents contended, that there is a strong public interest that quarantine is enforced rigorously in Australia.  However, I do not accept that that factor alone, when weighed against the position of the applicant, is sufficient to tilt the balance of convenience in favour of the respondents - particularly in light of the difficulties that I perceive the respondents face in respect of the issues to which I have referred, in considering the issue of the serious question to be tried.

  9. I will also give each party liberty to apply and costs of today will be in the cause.

I certify that the preceding nine (9) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Siopis.

Associate:

Dated:       29 November 2010

Details
AGLC
Coote Logistics Pty Ltd v Waugh, Delegate of the Director of Quarantine [2010] FCA 1317
Case
[2010] FCA 1317
Decision Date

CaseChat Overview and Summary

Coote Logistics Pty Ltd filed a case against the Waugh, Delegate of the Director of Quarantine, in an Australian court, seeking to challenge a decision made by the respondents to suspend the applicant's "Quarantine Approved Place" approval. The respondents had issued the decision on or about 27 October 2010. The applicant sought a stay order on the operation of this decision, pending the final determination of the substantive proceedings. The court was tasked with determining whether to grant the stay order, which would suspend the operation of the respondents' decision until further order, and to set out the procedural steps for the filing of affidavits, submissions, and the scheduling of the hearing.

The primary legal issues before the court involved the appropriate circumstances under which a stay order should be granted in administrative law cases and the criteria for assessing the balance of convenience in such situations. The court had to consider the merits of the applicant's case, the potential harm to the applicant if the stay order was not granted, and the impact on the respondents and public interest if the stay order was granted.

The court found that the applicant had demonstrated a strong likelihood of success on the merits of its case, and that the balance of convenience favoured the grant of the stay order. The court held that the applicant had established that there were substantial grounds going to the merits of the case, particularly concerning the procedural fairness of the respondents' decision-making process. Additionally, the potential harm to the applicant if the stay order was not granted, including significant financial and reputational damage, outweighed the public interest in enforcing the respondents' decision. Consequently, the court granted the stay order, suspended the operation of the respondents' decision, and set out detailed procedural steps for the continuation of the case, including deadlines for filing affidavits, submissions, and scheduling the hearing. The costs of the interim application were left in the cause.

Orders

Orders of the court

Stay Order

1. Upon the undertaking of the applicant as to damages, the operation of the decision of the first respondent on behalf of the second respondent made on or about 27 October 2010 to suspend the applicant’s “Quarantine Approved Place” approval is suspended until further order.

2. Each party has liberty to apply in relation to this stay order.

Affidavits

3. The applicant is to file and serve any further affidavits on which it intends to rely by 4.00 pm on 9 November 2010.

4. The respondents are to file and serve any further affidavits on which they intend to rely by 4.00 pm on 19 November 2010.

Submissions

5. The applicant is to file its submissions by 4.00 pm on 19 November 2010.

6. The respondents are to file their submissions by 4.00 pm on 22 November 2010.

Hearing

7. The hearing in this matter is provisionally set for 10.15 am on 24 November 2010.

Costs

8. Costs of today are in the cause.

Note:

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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