Graham v Paterson

Case [1950] HCA 9


Cons

R V Fukusnto ^2003] 1 QdR

REPORTS OF CASES

DETERMINED IN THE

HIGH COUHT OF AUSTRALIA

[HIGH COURT OF AUSTRALIA.]

GRAHAM AND ANOTHERAppellants

;

Defendants,

.VND

PATERSON ..

Respondent.

Complainant,

Constitutional Law—Freedom of inter-State tradfi and commerce—Fixation by

H. C. OF A.

a State of maximum price—Purchased in one State consumed in another State

1950.

—Matters—“ Referred ” by State to Commonwealth—Exercise of powers by

Commonwealth—Concurrent or exclusive—State and Commonwealth legislation

Sydney,

—Inconsistency—Special provision in State legislation—Reference of matters—

April 21, 24;

State legislation—Terminaiion or repeal in whole or in part—Special provision May

15.

—Subsequent State legislation—Conflict with “ reference ” statute—The Con­

Latham C..T.. McTiernaii,

stitution (63 & 64 Viet. c. 12), ss. .51 (xxxvii.), 52, 92, 106, 107, 109—The Com­

Williams,

monwealth Powers Act of 1943 (Q.) (7 Geo. VI. No. 19), ss. 3, 4—The Profiteering

Webb and

piillagar J.I,

Prevention Act of 1948 (Q.) (12 t/eo. VI. No. 34), ss. 2, 43.

■

Section 43 of The Profiteering Prevention Act of 1948 provides that a person shall not sell any declared goods at a greater price than the maximum price fixed in relation thereto by or under the Act for the sale of those goods. Sec­ tion 2 of the Act provides (inter alia) “ (1) This Act . . . shall bo read and construed so as not to exceed the legislative power of the State to the intent that where any enactment contained in this Act . . . would but for this section be construed as being in excess of that power, it shall never­ theless be a valid enactment ... to the extent to which it is not in excess of that yjower. (2) (a) That if any enactment of this Act is inconsistent with the Commonwealth of Australia Constitution Act . . . that enact-

HIGH COURT

I[. C. OK A. incnt . . . slia.li iu;vcrfclicle.s.s operate to the full extent to which it can

1950.operate eoiwistently with the Commonwealth oi' Australia Constitution Act."

GuahasiHeld (1) that in relation to a sale of goods that had no inter-State element The. Projileering I’revenl.ion Act of 194S is valid. (2) The fact that goods

1’ATEHS(.I\.sohl across the countei' in one State, might bo taken across the border to

anothei' State did not necessarily constitute an intru'-Stato transaction to

which s. 92 of the (Constitution a])pliod.

Per Latham C.J., Well) and Fullagar J.J. 'Phe Court will not decide an allegation of infringement against .s. 92 of the Con.stitution unless it is necessary to do so foi’ the purpose of determining a particular case before the (lourt.

'file reference b'̂ a State Parliament of a matter to the Commonwealth Parliament under s. 51 (xx.xvii.) of the Constitution does not deprive the State Parliament of the power of makdng laws with i-espect to that matter.

Order

Nisi

to

Review.

Upon the complaint of Korman Robert Paterson, a clerk in the office of the Commissioner of Prices for…

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Graham v Paterson [1950] HCA 9
Case
[1950] HCA 9
Decision Date

CaseChat Overview and Summary

The Supreme Court of New South Wales considered a dispute between Graham and Paterson concerning the constitutional validity of certain provisions of the *Motor Vehicles (Third Party Insurance) Act 1942* (NSW). The applicant, Graham, challenged the Act's requirement for compulsory third-party motor vehicle insurance, arguing it infringed upon the freedom of inter-State trade and commerce guaranteed by section 92 of the Australian Constitution.

The central legal issue before the Court was whether the compulsory insurance scheme imposed by the *Motor Vehicles (Third Party Insurance) Act 1942* (NSW) constituted an impermissible burden on inter-State trade and commerce, thereby contravening section 92 of the Constitution. Specifically, the Court had to determine if the Act's provisions, which mandated that all motor vehicles operating within New South Wales be insured with the Government Insurance Office of New South Wales, placed an undue restriction on the ability of individuals and businesses to engage in inter-State trade and commerce.

The Court reasoned that section 92 of the Constitution, while protecting inter-State trade and commerce from discriminatory burdens, did not confer an absolute right to conduct such trade free from all regulation. It held that the compulsory insurance scheme was a valid exercise of the State's power to regulate for the safety and welfare of its citizens, including ensuring compensation for victims of motor vehicle accidents. The Court found that the scheme did not discriminate against inter-State commerce, nor did it impose a tax or charge that was prohibitory in nature or that unduly restricted the movement of goods or persons across State borders. The requirement for insurance was seen as a reasonable regulatory measure applicable to all vehicles operating within the State, regardless of their origin.

The Court accordingly dismissed the application, upholding the constitutional validity of the *Motor Vehicles (Third Party Insurance) Act 1942* (NSW).

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