Daly v State of Victoria

This case concerned an action brought in the High Court of Australia by the executors of a deceased estate, residents of New South Wales, against the State of Victoria. The plaintiffs sought a declaration that certain probate duty paid under protest to the Victorian Commissioner of Taxes was not legally payable, and requested a refund of the overpaid amount. The State of Victoria sought to set aside the service of the writ, arguing the High Court lacked jurisdiction.

The central legal issues before the Full Court were whether the High Court possessed original jurisdiction under section 75(IV) of the Constitution to hear a matter between a resident of one State and another State, and whether the plaintiffs had an independent cause of action against the State of Victoria that would found such jurisdiction, or if their right to sue was solely created and limited by Victorian legislation. The Court was required to determine the nature and scope of contractual obligations that could exist between the Crown and a subject, and the effect of section 58 of the Judiciary Act 1903-1915.

The Court reasoned that section 75(IV) of the Constitution, which grants the High Court original jurisdiction in "matters" between residents of different States or between a State and a resident of another State, encompassed claims founded on contractual obligations. It held that the Victorian Crown Remedies and Liability Act 1915 did not create a cause of action but merely prescribed the procedure for enforcing existing claims against the Crown. The Court affirmed that contractual obligations could exist between the Crown and a subject at common law, citing established authorities, and that such claims constituted "matters" within the meaning of section 75(IV). Consequently, section 58 of the Judiciary Act provided for the enforcement of these claims in the High Court.

The application by the State of Victoria to set aside the service of the writ was dismissed with costs.