Hooper v Kirella Pty Ltd

Case [1999] FCA 1584


FEDERAL COURT OF AUSTRALIA

Hooper v Kirella Pty Ltd [1999] FCA 1584

CONSTITUTIONAL LAW – validity of Federal Court Rules O 15A rr 3, 6 – preliminary discovery – whether a claim for preliminary discovery involves a “matter” within s 77(i) of the Constitution

JURISDICTION – whether Parliament has conferred jurisdiction on the Court to make orders for preliminary discovery – whether jurisdiction conferred by Judiciary Act 1903 (Cth), s 39B(1A) – whether grant of jurisdiction under s 39B(1A) of the Judiciary Act precluded by Trade Practices Act 1974 (Cth), s 86(1)

Constitution, ss 71, 75, 76, 77(i)
Judiciary Act 1903 (Cth), ss 39B(1A), 78B
Federal Court of Australia Act 1976 (Cth), ss 5, 19, 23, 24, 31, 32, 59
Trade Practices Act 1974 (Cth), ss 52, 82, 86, 163A
Fair Trading Act 1987 (NSW), s 42
Law and Justice Legislation Amendment Act 1997 (Cth)

Federal Court Rules, O 15A, rr 1, 3, 6, 9

Malouf v Malouf (1999) 86 FCR 134, followed
State Bank of South Australia v Hellaby (1992) 59 SASR 304; (1993) 6 Leg Rep SL2, cited
Survival & Industrial Equipment (Newcastle) Pty Ltd v Owners of Vessel “Alley Cat” (1992) 36 FCR 129, cited
Levis v McDonald (1997) 75 FCR 36, cited
Orr v Diaper (1876) 4 Ch D 92, cited
Norwich Pharmacal Co v Customs and Excise Commissioners [1974] AC 133, discussed
Heimann v Commonwealth (1935) 54 CLR 126, cited
McLean v Burns Philp Trustee Co Pty Ltd (1985) 2 NSWLR 623, cited
British Steel Corporation v Granada Television Ltd [1981] AC 1096, cited
X Ltd v Morgan-Grampian (Publishers) Ltd [1991] 1 AC 1, cited
Re Pyne [1997] 1 Qd R 326, cited
Glaxo Wellcome PLC v Minister of National Revenue (1998) 81 CPR (3d) 372, cited
Mercantile Group (Europe) AG v Aiyela [1994] QB 366, cited
Breen v Williams (1996) 186 CLR 71, cited
P v T Ltd [1997] 1 WLR 1309, cited
Corrs Pavey Whiting & Byrne v Collector of Customs (Vic) (1987) 14 FCR 434, cited
Stewart v Miller [1979] 2 NSWLR 128, cited
Exley v Wyong Shire Council, unreported, NSW Supreme Court, Master Allen, 10 December 1976, cited
John Fairfax & Sons Ltd v Cojuangco (1988) 165 CLR 346, cited
Paxus Services Ltd v People Bank Pty Ltd (1990) 99 ALR 728, cited
Ricegrowers Co-operative Ltd v ABC Containerline NV (1996) 138 ALR 480, cited
Minister for Health & Aged Care v Harrington Associates Ltd [1999] FCA 549, cited
CCA Beverages (Adelaide) Limited v Hansford, unreported, Federal Court of Australia,

15 November 1991, cited
Alphapharm Pty Ltd v Eli Lilly Australia Pty Ltd, unreported, Federal Court of Australia, 24 May 1996, cited
Re Wakim; Ex parte McNally (1999) 163 ALR 270, discussed
Abebe v Commonwealth (1999) 162 ALR 1, discussed
In re Judiciary and Navigation Acts (1921) 29 CLR 257, discussed
Philip Morris Inc v…

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AGLC
Hooper v Kirella Pty Ltd [1999] FCA 1584
Case
[1999] FCA 1584
Decision Date

CaseChat Overview and Summary

In the matter of Hooper v Kirella Pty Ltd, the parties were engaged in a dispute over the validity of Federal Court Rules O 15A rr 3, 6, which pertain to preliminary discovery. The case was heard by the High Court of Australia, which was tasked with determining the constitutionality and jurisdictional scope of these rules. The core issue was whether a claim for preliminary discovery constitutes a "matter" within section 77(i) of the Constitution, and if the Parliament had conferred the requisite jurisdiction on the Court. Additionally, the Court needed to assess whether the grant of jurisdiction under section 39B(1A) of the Judiciary Act 1903 (Cth) was valid and not precluded by section 86(1) of the Trade Practices Act 1974 (Cth).

The High Court found that the Court did indeed have jurisdiction to make orders for preliminary discovery under the Federal Court Rules O 15A rr 3 and 6. This conclusion was based on the reasoning that the rules were validly made under the Parliament's power to make laws with respect to federal judicial matters. The Court concluded that the relevant rules were necessary to provide an effective remedy in respect of the actionable wrong of which the applicant complains, as emphasized by the High Court in John Fairfax & Sons Ltd v Cojuangco. Furthermore, the Court held that the jurisdiction conferred by section 39B(1A) of the Judiciary Act was not precluded by section 86(1) of the Trade Practices Act, as the latter did not expressly or impliedly exclude such jurisdiction.

The Court granted leave to appeal in each case, but dismissed the appeals. The applicants were ordered to pay the costs of the respondent for both the application for leave to appeal and the appeal itself. The decision underscored the importance of ensuring that preliminary discovery claims are not only procedurally valid but also necessary in the interests of justice, as mandated by the rules and the overarching principles of equity. The ruling also clarified the jurisdictional boundaries and the interplay between various legislative provisions governing federal judicial matters.

Orders

Orders of the court

1. Leave to appeal be granted.

2. The appeal be dismissed.

3. The applicants for leave pay the costs of the respondent of the application for leave to appeal and of the appeal.

1. Leave to appeal be granted.

2. The appeal be dismissed.

3. The applicant for leave pay the costs of the respondent of the application for leave to appeal and of the appeal.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

It follows that the Court, in each of the proceedings at first instance, had jurisdiction to make the orders authorised by FCR, O 15A rr 3 and 6. Since s 39B(1A) of the Judiciary Act only came into force in April 1997, our reasoning does not address the question of whether the Court had jurisdiction prior to that date to make orders for preliminary discovery under O 15A: cf Arnhem Land Aboriginal Land Trust v Minister for Mines and Energy for the Northern Territory (1997) 78 FCR 556 (O’Loughlin J), at 564-565. It is, however, not necessary to consider that question in these proceedings.Conclusion Having regard to the importance of the issues raised by the applications for leave to appeal, the Court grants leave in each case. However, each appeal should be dismissed. The applicant or applicants for leave in each case should pay the costs of the respondent. The order should cover the costs of the application for leave to appeal and of the appeal.

Ratio Decidendi

Legal Principle Established

As Finn J pointed out in the present case (at [11]), except in New South Wales, Queensland and Tasmania, Rules of Court have obviated the need to resort to the equitable bill both for identity discovery and information discovery: General Rules of Procedure in Civil Proceedings 1986 (Vic), rr 32.03, 32.05 (in terms substantially the same as FCR, O 15A rr 3 and 6); Supreme Court Rules 1987 (SA), rr 60.01, 60.02; Supreme Court Rules (ACT), O 34A, rr 3, 5; Supreme Court Rules (NT), rr 32.03, 32.05; Supreme Court Rules (WA), O 26A, rr 3, 4 and 5. In New South Wales, provision is only made for identity discovery: Supreme Court Rules (NSW), Pt 3, r 1.The Scope and Operation of Order 15A Whatever the scope of general law preliminary discovery, O 15A, in terms, specifically provides for both identity and information discovery. Moreover, it departs from the general law in some important respects, for example by rejecting the “mere witness” principle in O 15A r 3. Before considering the applicants’ arguments, it is convenient to consider the scope and operation of O 15A rr 3 and 6.Order 15A r 3 An applicant for relief under O 15A r 3 must show that, after having made reasonable inquiries, he or she is unable to ascertain the description of a person sufficiently for the purpose of commencing a proceeding against that person. Order 15A r 3 plainly contemplates that the applicant needs to ascertain the identity of the relevant person in order to institute a proceeding in the Court against him or her. Secondly, the applicant must show that “some person” has or is likely to have knowledge of facts, or the possession of documents, tending to assist in identifying the prospective respondent. The rule is therefore available even if relief is sought against a person who is in no way implicated in the wrongful conduct of which the applicant complains. In other words, relief is available against a “mere witness” or bystander: Stewart v Miller [1979] 2 NSWLR 128 (Sheppard J), at 135 (a decision on the New South Wales rule). To this extent, the rule differs from the equitable bill of discovery. Thirdly, the applicant is not required to demonstrate the existence of a prima facie case against the prospective respondent: Levis v McDonald, at 41, 44; Stewart v Miller, at 139-140. Nonetheless, the power conferred by O 15A r 3 is not to be used in favour of a person who intends to commence “merely speculative proceedings”: Stewart v Miller, at 140; Levis v McDonald, at 44. A material factor in the exercise of the Court’s discretion is the prospect of the applicant succeeding in proceedings against the person he or she wishes to sue: Exley v Wyong Shire Council, unreported, 10 December 1976, Master Allen, noted Ritchie’s Supreme Court Procedure (NSW) par [13,004]. Fourthly, the High Court has emphasised that an applicant under a rule in the form of O 15A r 3 must show that the order sought is necessary in the interests of justice. That is, the applicant must show that “the making of the order is necessary to provide him with an effective remedy in respect of the actionable wrong of which he complains”.John Fairfax & Sons Ltd v Cojuangco (1988) 165 CLR 346, at 357. These observations emphasise the link between identity discovery and the applicant’s complaint that he or she has suffered from an actionable wrong.Order 15A r 6