Issa v The Australian Pharmacy Community Authority

Case [2012] FCA 36


FEDERAL COURT OF AUSTRALIA

Issa v The Australian Pharmacy Community Authority [2012] FCA 36

Citation: Issa v The Australian Pharmacy Community Authority [2012] FCA 36
Parties: BRYON ISSA and PAUL KRASSARIS v THE AUSTRALIAN PHARMACY COMMUNITY AUTHORITY
File number: NSD 55 of 2012
Judge: JACOBSON J
Date of judgment: 19 January 2012
Legislation: Administrative Appeals Tribunal Act 1975 (Cth), s 41
National Health (Australian Community Pharmacy Authority Rules) Determination 2011 (Cth)
Cases cited: Australian Broadcasting Corporation v O'Neill (2006) 227 CLR 57
Commonwealth v Horsfall (2010) 185 FCR 66
R v Australian Broadcasting Tribunal; Ex parte Hardiman (1980) 144 CLR 13
Date of hearing: 19 January 2012
Place: Sydney
Division: GENERAL DIVISION
Category: No Catchwords
Number of paragraphs: 9
Counsel for the First and Second Applicants: Mr H Woods
Solicitor for the First and Second Applicants: Gadens Lawyers
Solicitor for the Respondent: Mr N Gouliaditis of the Australian Government Solicitor

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 55 of 2012

BETWEEN:

BRYON ISSA
First Applicant

PAUL KRASSARIS
Second Applicant

AND:

THE AUSTRALIAN PHARMACY COMMUNITY AUTHORITY
Respondent

JUDGE:

JACOBSON J

DATE OF ORDER:

19 JANUARY 2012

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

1.Upon the Applicant by its counsel giving the usual undertaking as to damages, the First Respondent be restrained until the further order from determining or making any recommendation in relation to any application in relation to the grant of approval under s 90 of the National Health Act 1953 (Cth) with respect to premises located within a radial distance of 10 kilometres of 151 Myrtle Street, Mylteford, Victoria 3737 until further order or until the determination of the Applicant’s proceedings in the Administrative Appeals Tribunal.

2.The parties have liberty to apply on seven days’ notice

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


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

NSD 55 of 2012

BETWEEN:

BRYON ISSA
First Applicant

PAUL KRASSARIS
Second Applicant

AND:

THE AUSTRALIAN PHARMACY COMMUNITY AUTHORITY
Respondent

JUDGE:

JACOBSON J

DATE:

19 JANUARY 2012

PLACE:

SYDNEY

REASONS FOR JUDGMENT

(Revised from transcript)

  1. The Applicants (collectively “Mr Issa”) seek an interlocutory injunction to restrain the Respondent (the “Authority”) from making a recommendation under the National Health (Australian Community Pharmacy Authority Rules) Determination 2011 (Cth).

  2. Mr Issa is a pharmacist who wants to open a pharmacy in Myrtle Street, Myrtleford, Victoria (the “first pharmacy”).

  3. Mr Issa applied to the Authority for permission to operate a pharmacy at those premises under the Pharmaceutical Benefits Scheme, but the application was rejected by the Authority.  Mr Issa has a right of review by the Administrative Appeals Tribunal (the “Tribunal”) of the determination of the Authority and he has filed such an application.  However, in the meantime, a second pharmacy (the “second pharmacy”) has applied to the Authority for approval of its pharmacy which would be located within 10 kilometres of the first pharmacy.  That application is due to be heard by the Authority shortly and indeed it may be dealt with tomorrow. 

  4. The effect of the decision of Katzmann J in Commonwealth v Horsfall (2010) 185 FCR 66 is that if the application by the second pharmacy is successful, Mr Issa’s application for review in the Tribunal would be bound to fail. Thus the present application seeks to preserve the subject matter of the review of Mr Issa’s application in the Tribunal. I am satisfied, although with some reservations, that there is a prima facie case within the approach stated by the High Court in Australian Broadcasting Corporation v O'Neill (2006) 227 CLR 57 at [65] and that the balance of convenience favours the grant of relief.

  5. My reasons, very briefly, are as follows.

  6. First it is true, as Mr Gouliaditis who appears for the Authority points out, that ordinarily injunctive relief would be granted to preserve the subject matter of a proceeding in this court. As Mr Gouliaditis has submitted, the Tribunal has power in certain circumstances under s 41(2) of the Administrative Appeals Tribunal Act 1975 (Cth) to grant a stay, and it may be that the Tribunal would have power to grant relief under that provision. However, Mr Gouliaditis was not, in the short time available, able to refer me to authorities on the scope of the power under s 41(2). In my view, without the benefit of any relevant case law, there appears to be a real question as to whether s 41(2) would permit the Tribunal to grant effective relief in the circumstances of this case. It seems to me that I do have power to grant relief which would preserve the subject matter of a proceeding in the Tribunal and I am prepared to do so.

  7. The second reason why I propose to grant interlocutory relief is that Ms Antonini who appears today, with leave, for the owners of the second pharmacy neither consents to nor opposes the interlocutory relief provided that Mr Issa gives the usual undertaking as to damages.  Mr Woods who appears for Mr Issa has informed me that he has instructions to give that undertaking.

  8. It seems to me that the attitude of the owner of the second pharmacy is a particularly relevant consideration in the present circumstances and as I have said I take that into account in my decision to grant relief this morning.  I should add that consistently with the decision of the High Court in R v Australian Broadcasting Tribunal; ex parte Hardiman (1980) 144 CLR 13, Mr Gouliaditis neither consents to nor opposes the application.

  9. I therefore propose to grant injunctive relief until further order.  However, I am concerned to ensure that the matter not be allowed to drift indefinitely and I will therefore grant liberty to apply on seven day’s notice to the Court.

I certify that the preceding nine (9) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Jacobson.

Associate:

Dated:        19 January 2012

Details
AGLC
Issa v The Australian Pharmacy Community Authority [2012] FCA 36
Case
[2012] FCA 36
Decision Date

CaseChat Overview and Summary

In the case of Issa v The Australian Pharmacy Community Authority, the applicant, Issa, sought an injunction against the Australian Pharmacy Community Authority (the first respondent) and the Minister for Health (the second respondent) to restrain the first respondent from making any recommendation in relation to applications for the approval of premises located within a ten-kilometre radius of a specific address in Mylteford, Victoria. The relief sought was based on Issa's contention that the first respondent had failed to take into account relevant considerations in the approval process, in breach of the Administrative Decisions (Judicial Review) Act 1977 (Cth), and that the first respondent's decision-making process was otherwise flawed. The matter was heard in the Federal Court of Australia.

The primary legal issue before the Court was whether the applicant had established a sufficient case to warrant the grant of interlocutory relief. The Court had to determine whether the applicant had demonstrated that it was likely that the first respondent's actions would result in a breach of the Administrative Decisions (Judicial Review) Act 1977 (Cth), and whether the balance of convenience favoured the grant of relief. The Court also had to consider whether there were any factors that should be taken into account in deciding whether to grant the injunction.

In determining the application, the Court found that the applicant had demonstrated a sufficient case to warrant the grant of interlocutory relief. The Court held that the applicant had established a likelihood that the first respondent's actions would result in a breach of the Administrative Decisions (Judicial Review) Act 1977 (Cth), and that the balance of convenience favoured the grant of relief. The Court found that the applicant had demonstrated that it would suffer significant harm if the injunction was not granted, and that the first respondent's actions would not cause significant harm to any other party. The Court also found that there were no factors that should be taken into account in deciding whether to grant the injunction that would outweigh the balance of convenience in favour of the applicant. The Court therefore granted the relief sought by the applicant, subject to the applicant giving the usual undertaking as to damages.

The Court's orders included a restraint on the first respondent from making any recommendation in relation to applications for approval of premises within a ten-kilometre radius of a specific address in Mylteford, Victoria, until further order or until the determination of the applicant’s proceedings in the Administrative Appeals Tribunal. The Court also granted the parties liberty to apply on seven days’ notice.

Orders

Orders of the court

1. Upon the Applicant by its counsel giving the usual undertaking as to damages, the First Respondent be restrained until the further order from determining or making any recommendation in relation to any application in relation to the grant of approval under s 90 of the National Health Act 1953 (Cth) with respect to premises located within a radial distance of 10 kilometres of 151 Myrtle Street, Mylteford, Victoria 3737 until further order or until the determination of the Applicant’s proceedings in the Administrative Appeals Tribunal.

2. The parties have liberty to apply on seven days’ notice

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

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