DCL22 v Sage

Case [2022] FCA 1310


FEDERAL COURT OF AUSTRALIA

DCL22 v Sage [2022] FCA 1310

File number: VID 530 of 2022
Judgment of: ABRAHAM J
Date of judgment: 10 October 2022
Date of publication of reasons: 3 November 2022
Catchwords: PRACTICE AND PROCEDURE – public interest immunity – where documents produced pursuant to notice to produce are redacted – where documents include written reasons for the issue of a summons under s 28(1) of the Australian Crime Commission Act 2002 (Cth) – where applicant challenges the validity of the Summons – whether redacted passages are covered by public interest immunity – claim established
Legislation:

Australian Crime Commission Act2002 (Cth) ss 7, 7A, 7C, 20-22, 24A, 28, 29A and 30

Evidence Act 1995 (Cth) s 130

Judiciary Act 1903 (Cth) s 78B

Cases cited: Alfred Crompton Amusement Machines Ltd v Customs and Excise Commissioners (No. 2) [1974] AC 405
Alister v The Queen [1984] HCA 85; (1984) 154 CLR 404
Assistant Commissioner Condon v Pompano Pty Ltd [2013] HCA 7; (2013) 252 CLR 38
Attorney-General (NSW) v Stuart (1994) 34 NSWLR 667
Barnes v Boulton [2004] FCA 1219; (2004) 139 FCR 356
Beneficial Finance Corporation Ltd v Commissioner of Australian Federal Police (1991) 52 A Crim R 423
Beneficial Finance Corporation Ltd v Commissioner of Australian Federal Police (1991) 31 FCR 523
Burmah Oil Co. Ltd. v Governor and Company of the Bank of England and Another [1980] AC 1090
Cain v Glass(No 2) (1985) 3 NSWLR 230
Church of Scientology Inc v Woodward [1982] HCA 78; (1982) 154 CLR 25
Commonwealth v Northern Land Council [1993] HCA 24; (1993) 176 CLR 604
Commonwealth v Northern Land Council (1991) 30 FCR 1
Conway v Rimmer [1968] AC 910
D v National Society for the Prevention of Cruelty to Children [1978] AC 171
DBCT Management Pty Ltd v McConnell Dowell Constructors (Aust) Pty Ltd and Geosea Australia Pty Ltd Joint Venture [2021] FCA 512
Director of Public Prosecutions v Smith (1996) 86 A Crim R 308
Esso Australia Resources Ltd v Federal Commissioner of Taxation [1999] HCA 67; (1999) 201 CLR 49
Gypsy Jokers Motorcycle Club Inc v Commissioner of Police [2008] HCA 4; (2008) 234 CLR 532
Harper v Costigan (1983) 72 FLR 140
HT v The Queen [2019] HCA 40; (2019) 278 A Crim R 133
Marinovich v Director of Public Prosecutions & Anor (1987) 14 ALD 315
National Crime Authority v Gould (1989) 23 FCR 191
National Companies and Securities Commission v News Corporation Ltd  [1984] HCA 29; (1984) 156 CLR 296
Polley v Johnson; Gillard v Johnson; Ward v Higgs [2013] NSWSC 543
R v Baladjam & Ors(No 29) [2008] NSWSC 1452
R v Lodhi [2006] NSWSC 596; (2006)199 FLR 270
Roberts-Smith v Fairfax Media Publications Pty Ltd (No 14) [2021] FCA 552
Rogers v Home Department State Secretary; Gaming Board for Great Britain v Rogers [1973] AC 388
Sankey v Whitlam [1978] HCA 43; (1978) 142 CLR…

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Details
AGLC
DCL22 v Sage [2022] FCA 1310
Case
[2022] FCA 1310
Decision Date

CaseChat Overview and Summary

In the Federal Court, the matter of DCL22 v Sage concerns a dispute over the production of documents that were redacted on the basis of public interest immunity. The case involves the Australian Crime Commission (ACIC) which, pursuant to a notice to produce, had disclosed certain documents to the applicant. The applicant has challenged the validity of a summons under section 28(1) of the Australian Crime Commission Act 2002 (Cth) and the subsequent redactions. The central legal issue was whether the redacted passages were indeed protected by public interest immunity.

The court addressed the legal issue by examining the evidence presented by the Commonwealth, specifically the affidavits of Mr Halls, the ACIC’s National Manager of Examinations. Mr Halls, who was deemed well-positioned to comment on the implications of disclosing the redacted material, testified that such disclosure would prejudice the ongoing investigation by revealing its objectives, targets, and the intelligence holdings of the ACIC and other law enforcement agencies. He also stated that the disclosure would undermine the effectiveness of any future examinations and sensitive law enforcement methodologies. The court found Mr Halls’ evidence credible, accepting that the disclosure of the redacted material could indeed be injurious to the public interest by potentially aiding those involved in serious and organised criminal activities.

Upon considering the evidence and the authorities cited, the court concluded that the claim of public interest immunity was established. The redacted portions of the documents were protected as they pertained to ongoing investigations and sensitive intelligence methodologies. Consequently, the court upheld the claim of public interest immunity over the redacted passages of the documents produced to the applicant.

The court's final order was that the second respondent’s claim of Public Interest Immunity over the redacted portions of the documents produced to the applicant is established. The specific redactions were those referenced in the annexures to the affidavit of Jason Leigh Halls dated 5 October 2022. The court's decision was made in accordance with Rule 39.32 of the Federal Court Rules 2011.

Orders

Orders of the court

1. The second respondent’s claim of Public Interest Immunity over the redacted portions of the documents produced to the applicant pursuant to a Notice to Produce dated 27 September 2022, the redactions being reflected in the annexures to the affidavit of Jason Leigh Halls dated 5 October 2022, is established.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

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

In most cases where a claim of public interest immunity is made, the claim may be determined without the Court inspecting the documents over which the claim is made, although the Court has the power to inspect the documents “privately” if this is considered necessary to determine the claim: see, for example, Sankey v Whitlam at 46; see also Attorney-General vStuart at 672, citing Conway v Rimmer at 971, 979 and 995. Consideration It is appropriate to commence by considering the evidence relied on by the Commonwealth. The Commonwealth relies upon the evidence of Mr Halls, the ACIC’s National Manager of Examinations. Mr Halls has sworn an open affidavit dated 5 October 2022 and a confidential affidavit dated 7 October 2022 in support of the claim. I accept the Commonwealth’s submission that, given the evidence, he has extensive experience and seniority, which leads to him being well-positioned to give evidence about the realities of the ACIC’s investigations and the damage to the public interest that might arise if the redacted material is disclosed. Mr Halls gives evidence in his open affidavit that disclosure of the redacted material would, or would tend to: prejudice the special ACIC investigation, which is ongoing, by disclosing the objectives of that investigation, the targets of that investigation, and the state of the intelligence holdings of the ACIC and other law enforcement agencies in relation to that investigation; undermine the effectiveness of any examinations which may be conducted and the purposes of that investigation; and reveal sensitive law enforcement methodologies. These are recognised bases of a public interest claim. Mr Halls deposes that the effectiveness of the special ACIC investigations is dependent to a large extent on its capability to gather and assess intelligence and to apply safeguards to protect it. He said that this effectiveness would be undermined if the intelligence gathered by ACIC were to be disclosed publicly, particularly during an ongoing investigation. He gave evidence that for the reasons he gave in the open and confidential affidavit, it would be injurious to the public interest for the redacted material to be disclosed because this could be used by persons involved in serious and organised criminal activity to understand the state of ACIC's intelligence holdings and sensitive law enforcement methodologies, as well as to identify sources and targets of past and ongoing investigations by the ACIC. Such disclosure would undermine the ability of the ACIC to exercise its statutory functions. I have also had regard to the Mr Halls’ confidential affidavit, which the second respondent refers to in its written submissions as identifying an additional ground. I accept Mr Halls’ evidence. I have already referred above to the observations of Hunt CJ in Attorney-General v Stuart. The ACIC refer, in particular, to three other cases, Barnes v Boulton [2004] FCA 1219; (2004) 139 FCR 356 (Barnes v Boulton), National Companies and Securities Commission v News Corporation Ltd [1984] HCA 29; (1984) 156 CLR 296 (National Companies and Securities Commission) and Harper v Costigan (1983) 72 FLR 140) (Harper v Costigan), which make observations to the same effect.