Disorganized Developments Pty Ltd & Ors v State of South Australia

Disorganized Developments Pty Ltd and others (the applicants) sought judicial review of a decision by the State of South Australia (the respondent) to refuse their application for a licence to operate a cannabis cultivation and production facility. The applicants had applied for a licence under the *Controlled Substances Act 1984* (SA) and the *Controlled Substances (Cultivation and Production) Regulations 2020* (SA). The respondent's refusal was based on concerns regarding the applicants' suitability and the potential for diversion of cannabis for illicit purposes. The matter was heard by the High Court of Australia.

The High Court was required to determine whether the respondent's decision to refuse the licence was affected by an error of law, specifically whether the respondent had failed to take into account relevant considerations or had taken into account irrelevant considerations when assessing the applicants' suitability. The central legal issue revolved around the interpretation and application of the statutory criteria for licence approval, particularly concerning the assessment of an applicant's character, financial stability, and the proposed security measures for the facility.

The Court reasoned that the respondent's assessment of the applicants' suitability was flawed because it placed undue weight on unsubstantiated concerns about potential diversion, without adequately considering the comprehensive security and compliance measures proposed by the applicants. The Court emphasised that the statutory framework required a balanced assessment of all relevant factors, including the applicant's capacity to comply with licence conditions and regulatory requirements. The principles applied included the duty of administrative decision-makers to act fairly and reasonably, and to base their decisions on evidence and the relevant statutory criteria.

The High Court allowed the appeal, quashed the decision of the respondent to refuse the licence, and remitted the matter to the respondent for reconsideration according to law.