J & S Holdings Pty Ltd v NRMA Insurance Ltd
[1982] FCA 78
•27 Apr 1982
IN THE FEDERAL COURT 017 AUSTRALIA ) 1
AUSTPALTAN CAPITAL TERRITORY ) No ACT G50 of 1981 1 DISTRICT REGISTRY ) 1 GCNE?AL DIVISTON ) BETWEEN: ARTHUR LEE RURXS
Applicant
AND: THE AUSTRALIAN NATIONAL
UNIVm;SITY
Respondent
CORRIGEKDA
CLLICOTT J:
Anendment to be made as follows to his Honour’s
rezsons for ~udgment of 27 April 1962
The word “agreevent“ In line nineteen (19) oLC page
nineteen (19) should read “arqurrent”
Adminis t ra t ive lax: - Judic ia l rev iew - Furn i sh ing o f
r e a s o n s f o r d e c i s i o n - T e n ~ i n a t i o n of p r o f e s s o r ' s appointment by Council of !.mstralian XationaL Universi.ty
on ground of permanent incapacity - Council p u r p o r t i n g to
ac t unde r power con ta ined i n cond i t io r s of appointment -.
&pplication f o r reasons under Administrative Decisions
( J u d i c i a l Review) Act - Whether dec i s ion t o which A c t
a p p l i e s - WheLher of a n a d m i n i s t r a t i v e c h r a c t e r - \?€lether
made under cont rac t of appoin tnent o r cncler it and the Univers-
ity Act - Test for deternining whether s o Fade. Administrative Decisions (Judicial %view) A c t 1977 ss.3, 13,Schedule 2
- Austra1.ian National U n i v e r s i t y t 1946 s s - 4, 6 , 10, 2 3 , 2 7 , 28.
CORAV : E l l i c o t t J. Canberra 27 A p r i l 1982
ARTHUR LEE BURNS
O R D E R
JUDGE ?WXIK ORGEE.: E l l i c o t t J. TXERE FADE : Canberra DATE : 27 April 1982
TIIE COUXT : -
(1) Declares tha t the applicznt vas entitl-ed
t o make t he r eques t naZc by h i m in h i s l e t t e r d a t e d 23 Rovember 1981 to the Universiey;
( 2 ) Orders that the respondent pay the a p F l i c a n t ' s
c o s t s or this app l i ca t ion . ARTHUR LEE BUFGS
Applicant - -
_-
T€E AUSTRALIAT bXTIOI?AL UXIVERSITY Respondent
COP&*L: ELLICOTT J. REASONS FOR JUXPlEXT
Arthur Lee Burns( "the applicant?)rras appointed
to the second Chair in the Department of P o l i t i c a l S c i e n c e ,
~ _-
Research School of Socia l Sc iences a t The Aus t ra l ian Nat iona l
University(l1the University") on 9 December 1966. €le was f i r s t
employed by the Univers i ty as a Research Fellox i n I n t e r n a t i o n a l Relat ions on 14 Harch 1955.
On 1 3 Wovember 1981 the Council of the Univers i ty
r e so lved t o t e rn ina te h i s appoln t ren t wi th e f rcc t from c l o s e
o f business on t h a t dcy on the ground th2-t he had become
pcrnanent ly incapaci ta ted from performine thc d u t j c s of h i s o f f i c e .
Afte r t ha t da t e , t he app l i can t r eques t ed the
Universl-ty, in accordance with S . 13 o f t he Administrative
Decis lons ( .Judicial Review) Act 1977 ( " the Ac t " ) , t o
f u r n i s h him with E s-ca-tement i n wr i t i ng r ega rd ing the Cour?c i l ' s dec is ion , se t t ing ou t i t s f ind ings on m a t e r i a l quest ions o f f a c t , r e f e r r i n g t o the evidence o r o t h e r ma te r i a l on which those f indings were based and giving the dec is ion . reasons f o r the - --
This appl icat ion has been brought by the a p p l i c a n t
pursuant t o s . l3 (4A)(b) o f t h e Act f o r an o r d e r d e c l a r i n g
t h a t h e was e n t i t l e d t o make the request .
The Universi ty was o f t he op in ion t ha t the
app l i can t was n o t e n t i t l e d t o make th i s reques l : and gave
him not ice in wr i t ing accord tngly .
The r e l e v z n t f a c t s a r e n o t i n d i s p u t e . Gn
9 December 1966 the then Regis t ra r o f t h e I n s t i t u t e o f
Advanced Studics wi th in the Univers i ty , o f which I n s t i t u t e
the Research School or^ Social Sciences forms p a r t , wrote to t h e a p p l i c a n t o f f e r i n g him appointment t o 2 second L-air i n
. _-
the Department of P o l i t i c a l S c i e n c e e f f e c t i v e f rom 9 December
1966. The l e t t e r a t t a c h e d two copies o f t he cond i t ions o f
appointment and requested that i f he wished to accept the
appointment, he sign or?e and r e t u r n it- The condi t ions of
appolctment re€erred t o were conta ined in a document dated 26 February 1963 and headed I'Conditions o f Appointment or^ a
Professor, other than a Professor in charge or^ a
Departmcnt". The condl t ions In the i r t e rms '.rere no t d i r e c t e d
t o t h e a p ~ l i c a n t , i n P a r t i c u l a r ,bu t appear to hzvc been
the penera1 condi t io~s used by the Ucivers i ty €or the
appointment o f a p r o f c s s o r i n t h e I n s t i t u t e of Advanced
Studies a t t h e University. They d e a l t w i t h a number of
na t t e r s i nc lu6 inp s a l a ry , t enu re , du t i e s and leave. Those
r e l a t i n g t o t e n u r e end d u t i e s were as follows:-
"2. Tenure
(a) The appointment will b2 s u b j e c t to
t he r ece ip t o f a s a t i s f a c t o r y m e d i c a l
report following an examination carr ie-e out by a physician nominated by the Uaiversi ty .
(b) A Professor sha l l , exceyt where otherwise
providcd in the condi t ions of his appointpent
hold o f f i c e u n t i l t h e t h i r t y - f i r s t d a y of December in the year in which he a t ta ins
t h e age of 65 years , provided that -
(i) a P r o f e s s o r n a y r e t i r e a t any time
a f t e r r each ing the aE.e of 60 y e a r s
with superannuat ion benefi ts i n
accordance with the Un ive r s i ty ' s
superannuation scheme;
(ii) the Council mey te rmina te the appointment o f , ancl remove from
o f f i c e , any Professor who has
become permanent ly incapaci ta ted from perforning the duties of his
o f f i c e , o r who i s g u i l t y of misconduct
or has become i n e f f i c i e n t ; b u t -in the
case of misconduct o r i n e f f i c i e n c y onL:
a f t e r enqu i ry and r e p o r t by a
committee appointed by the Council, before which the Professor shal l be
en t i t l ed t o appea r and , i f h e d e s i r e s , t o be represented.
(c) A ProPessor i s required t o give six
monkhs' notice i f he wishes t o resign
his offlce. "
. 4 . 3 . Duties
A Trofessor E ;ha l l devote the 5; rhole of h i s
time to t he du t i e s o f h i s o f f i ce . I t s h a l l
be the primary duty of a P ro fes so r t o devo te
h imself to research and the advancement of
knowledE? i n h i s s u b j e c t .
Fe will be respons ib le to the Head of h i s
Department. It will be expected that he will
co lopera te wi th the €Lead of h i s Department
and v i t h h i s c o l l e a g u e s i n t h e r e s e a r c h work
of the DeTartment 2nd of the School as a whole.
b u t c o n s i s t e n t l y w i t h t h i s p r i n c i p l e h e w i l l
not be subject to direct ion by the Head o f h i s
Pepartmenr: i n r e s p e c t of t h e r e s e a r c h work which
he w i l l h inse lE car ry oat 2nd may d i r e c t as.-. Professor .
These conditions were signed by t h e a p p l i c a n t
and r e tu rned t o t he Reg i s t r a r o f t he In s t i t u t e of
Advanced Studies .
k change occur red to the appl icant ’s du t ies
i n 1975 vhen the University Council spproved the
establishment of a Cent re for Fore ign Tol i t ics
(Western Europe) within the Research School o f Soc ia l
Sciences. He was appointed head oE the Centre . The
appl icant was informed of t h i s by l e t t e r the
Regis t rar of the Universi ty dated 1 4 February 1975 . - _-
The l e t t e r s t a t e d : -
“You will be respons ib le to the d i rec tor
f o r t h e management oE the Centre but in
o ther respec ts the condi t ions o f
ap?ointment whic5 you signed on 9 December 1966 will remain unchanged.”
The app l i can t r ep l i ed on 17 February 1975
ag ree ing t o t hese new arrangements.
On or about 16 A p r i l 1981 he went on
extended s ick leave and i n September las t arrangements - _ - were made f o r him t o be exanined by the Comomiealth
Medical Officer on 8 September 1981.
On 7 September the secre ta ry wrote t o the
Commonwealth Medical Officer confirming this appointment
and enclosing a s ta tement of his dut ies and
r e spons ib i l i t i e s i nc lud ing conmmts on h i s work
performance and a curr iculum vi tae . The l e t t e r went on: -
“AS you t r i l l see there has been concern
about Professor Eurns‘ academic performance
i n recent years. Since 16 A p r i l 1961 he has a l so been on exter.cled s ick leave. Because o f the foregoing University thc I --
wishes t o know whether Professor Burns
has any medical condition such that it
is un l ike ly t ha t he i s f u l l y f i t t o ca r ry out h i s d u t i e s and r e s p o n s i b i l i t i e s .
Deta i l s o f h i s s ick l eave absences are
a t tached and a r e p o r t from h i s doc to r .....
will be made ava i l ab le t o you p r i o r t o t h e
appointment time”. The l e t t e r couc luded : -
"I would. now bc gra teEul i f you would f u r n i s h me wi th a r eFor t on uhether you consider
Professor Burns i s E i t o r un f i t f o r con t inued employment i n h i s p r e s e n t p o s i t i o n a n d , i f you
f i n d h i m unfit , whether he should be granted
f u r t h e r sick l e a v e o r r e t i r e d on the grounds of i n v a l i d i t y . "
P r i o r t o t h e w r i t i n g of t h i s l e t te r t h e a p p l i c a n t
had s a id t ha t t he l i s t of pub l i ca t ions i n h i s cu r r i cu lum
v i t a e was incomplete and he was i r w i t e d t o p r o d u c e t o t h e
-
Commonwealth Med ica l Of f i ce r de t a i l s o f zny pub l i ca t ions . -- omit ted.
The Commonwealth Medical Off icer ' s report , fol lowing
th i s examination, stated under the heading "Prognosis":-
"Not good. He i s a se r ious ly ill man"
She went on to s t a t e t ha t she cons ide red t he
appl icant unf i t €or cont inued employment and t h a t he should
be re t i red on the grounds of i n v a l i d i t y .
F o l l o v i n & r e c e i p t o f t h i s r e p o r t t h e a p p l i c m t was
interviewed by t h e Vice Chancellor of the University on
22 September 1981. There i s a dispute as to exac t ly what
was sa id bu t i t i s suf f ic ien t fc r p resent purposes to say
. _-
t h a t t h e a p p l i c a n t was informed of the Com.onvealth EIedicaL
O f f i c e r ' S opinion and tha t t he ma t t e r would be brought before
the Council of the Univers i ty for i t s decis ion.
There i s l i t t l e doubt that as a r e s u l t of t h a t
in tc rv ie~r the appl icant be l ieved the Counci l might re t i re
him on the ground o € i n v a l i d i t y .
Correspondcnce than took place bctween t h e
appl icant and the Universi ty and between the app l i can t ’ s
s o l i c i t o r and t h e U n i v e r s i t y ’ s s o l i c i t o r s . A s a r e s u l t
of this correspondence a decis ion on h i s r e t i r - ornent t7as defer red un t i l the meet ing of the Council held on 1 3 November
1081 and h i s s i c k l e a v e was extended accordingly.
On 11 Movenber 1981 t h e a p p l i c a n t v r o t e t o the
Regis t rar of the Universi ty informing him that an appointment had been made fo r t he app l i can t t o have an electroencephaLogram
on 23 Kovember through a s p e c i a l i s t who had been unable to arrange it f o r an e a r l i e r d a t e . On 1 2 November he =gain
wrote to the Registrar reques t ing tha t the Counci l o r o ther
oEfice holders not determine the matter of his retirement
before he had rece ived the repor t on this e lectroencephalogram.
Copies of these le t ters were placed before the
Coinc i l a t i t s meeting on 1 3 November 1981 bur apparent ly a
dec is ion 772s made to p roceed wi th the cons idera t ion o f h i s
re t i rement . The Council a t thnt meeting resolved to t e rmina te
h i s appointment v i t h t t , e Un ive r s i ty i n t he t e rns to which I b3-ve
r e fe r r ed . a l r eady . _-
On 23 ??ovember 2 9 S l t he app l i can t r eques t ed t he
Un ive r s i ty t o fu rn i sh a s t a t e m e n t i n w r i t i n p r e l a t i n g t o i t s dec is ion in accordance wi th s.13 of the Act. O n
4 December 1982 the Universi - ty not i f ied him t h a t as a matter
of l a u he was n o t e n t i t l e d t o make the reques t .
E .
I n t h e l i g h t o f t hese f ac t s , t he ques t ion
before me i s .cJl,ctber the appl icant i s e n t i t l e d t G a
d e c l a r a t i o n t h a t he was e n t i t l e d t o make the reques t
of the Universi ty .
Sect ion 13(1) of t h e Act provides:-
"13. (1) Where a person makes a dec is ion to wbich
t h i s s e c t i o n a p p l i e s , any person who is
e n t i t l e d t o make an appl ica t ion to the Cour% under section 5 i n r e l a t i o n to t h e
dec is ion may, by n o t i c e i n w r i t i n g g i v e n
t o the person who nade the decis ion, reqEest
him t o f u r n i s h a statement i n w r i t i n g . --
se t t i ng ou t t he f i nd ings on material quest ions of f a c t , r e f e r r i n g t o t h e e v i d e n c e o r o t h e r m a t e r i a l on which those f indings
were based and g iv ing the reasons for the dec is ion . "
The phrase "decis ion to which t h i s Act applies"
i s def ined i n s.3 as f o ~ ~ o v 7 s : -
"dec i s ion t o which t h i s Act appl ies" neaz:s a
dec is ion of an adminis t ra t ive character made,
proposed t o be made, o r r equ i r ed t o be made,
as the case may be (whether in the exercise of
a d i sc re t ion o r no t ) unde r an e n a c t m n t , o t h e r
than a decision by the Governor-General or a
decision included in any of t he c l a s ses o f I,
dec is ions se t ou t in Schedule 1;
I n t h e same section "enactment" i s def ined as
f O l l O t 7 S : - - _- "'enactment' means
( a ) an Act other than the Comonweaith
Places (Application of Laws) A c t 1970 o r the Northern Terr i tory (Self
Government) Act 1 S78 ;
( b ) ~ T I Ordinance of a T e r r i t o r y o t h e r t h a n t h e Northern Terr l tory;
( C ) a n k s t r u m e n t ( i n c l u d i n g r u l e s , r e g u l a t i o n s
o r by-laws) m a d e under such an A c t o r under
such an Ordlnancc; or
( d ) a ~ X J , o r a p a r t of a 1 ~ 7 . of the 'Korthern
Ter r l to ry dec la red by t h e r e g u l a t i o n s , i n
accordance 1 7 i t t ? scLtion 191:. to be an
enzctrwnt for the purposes of t h i s A c t ,
and, for the F u r p o s e s oT para[;raph ( a ) , ( L ) o r ( c ) ,
includcs n p,arL: G! an cnactmcl?t;"
.. 9.
As appears frorn S. 13(1 ) , the right to make a
request under that sub-section is limited EO lra person who is entitled to make an application to the Court
under s.5 in relation to the decision. Section 5 of the Act gives that right to a person who is aggrieved by the decision.
Under s.3(4)(a)(i) it is provided that a reference
to a person aggrieved by a decision includes a reference-
- --
"to a person whose interests are adversely affected by the decision.Il
Section 13(11) provides -thatIra decision to which
tnis section appliesll means a decision that is a decision to which the Act applies but does not include -
"(a) a decision in relation to rhich sec-Lion 28
of the Admlnistrative Appeals Tribunal Act 1975 applies;
(b) a decision that includes, or is accompanied
by a statement sett1ng out, Findings of
facts, a reference to the evidence or
other material on which those f.i.ndings
were based and the reasons f o r the decision; or (c) a dpcision included in any o? +he classes
of decision set out in Schedllle 2." - -- Clearly enough, neither paragraphs (a) nor (b)
of s.13(11) are applicable to this case. I will subsequently refer, in greater detail,
t o Schedule 2 of the Act. II; ic sufficient to say, a t
tnis stage, that t nc Schedul-e ccatains nc provision excluding from t'ne application of s.13 a
ckcisicn rnade by - the Council of the University on l 3 November
. 10 4
It follows fron thls analysis that, if the
decisior. macle by the Council was a decision to which the
Act applies, the applicant vas entitled to make the
request pursuant to S. 13( l ) . F o r there can be no doubt
that, if it was such a decision, the applicant's interests
were adversely affected by it ard he vould therefore, given approprizte grounds, be entitled Lo make an
application in relation to it under s.5 a f the Act. -
Everything turns, therefore, on whether the _-
decision in question was Ita decision to which this Act zpplies". Stated shortly, this involves determining
whether it was I1a decision of an adminiscrative character made.. ....... or required CO be made (whether in -the
I!
exercise of a discretion or c o t ) under an enactment ..,...
The applicant says it was clearly a decision of
an administrative character made under an enactment, namely, the Australian National University Act 1946 ("the Ilniversity ActTT). The University says it vras n o t
a decislon "of 8n administrative characterr1 but, even if it was, it was made, not under that Act, but, under __ the contract of service between it m d -the applicant which
was entcred into on 9 Oecember 1966.
The ansrrer -to these opposing contentions depends,
in part, on a consideration of the University Act.
Sect ion 4 of the L‘niversity Act e s t ab l i shed
a t Canberra a Universi ty consis t ing of a Council and Convocation and graduate and under-graduate nsnbers.
It a l s o provided tha t the Univers i ty sha l l be a body
corporate by t h e name o f “The Aus t ra l ian Rat iona l University“ and t h a t by t h a t name i t s h a l l have
perpetual succession and a cormon s e a l and be capable by that
-
name o f suing, being sued, hcldixg property, acting as trustee, grant ing and sel l - in: property e tc .
Sect ion 6 of the Universi ty Act gives t h e
University tho following FUnctLons: -
I , (a) To encourage, and p r o v i d e f a c i l i t i e s f o r ,
post-graduate research and study, both
penera l ly and i n r e l a t i o n t o s u b j e c t s of
nat ional importance to Austral ia ;
(b) To p r o v i d e f a c i l i t i e s f o r un ive r s i ty educa t ion
for persons who e l ec t t o ava i l t hemse lves of
t h o s e f a c i l i t i e s 2nd a r e e l i g i b l e s o t o do; and
(c) Sub jec t t o t he S t a tu t e s , t o award and confer degrees and diplcmas”.
*
Sect ion 7 p rov ides t ha t t he re sha l l be, within
- _-
the Universi ty , an Institute oE Advanced Studies and a
group of f a c u l t i e s and other bodies, as determined by the
Counci l , to be knosm as’The Faculties.” The I n s t i t u t e is
t o comprise research schools i n r c l a t i o n t o ( i n t e r a l i a )
t he soc i a l s c i ences and the ntmss of those schools , the
f i c l d s o f l ea rn ing , with one excepr ion , in re la t ion to
which they arc established, and the Dcpn*-tmer!ts t l l e reof , a re
to be as determined Ly the Council.
Section 10 of the university Act provides that
the governing authcrity oE the University shall be the Council and ss . 11 to 15AA (inclusive) deal with the Council's constitution, membership and meetings.
Provision is also made for a Board of the
Institute (s.15A); a Eoard of The Faculties (S-1%); a Professorial Board of the University (s.15D) and
-
Convocation There are several sections relevaot
(S. 1 6 ) .
- -
to the
powers of the Council. Section 23 is the basic
provision and provides:-
"23. Subject to this Act and the Statutes,
the Council nay from tine to time appoint
deans, professors, lecturers, examiners 2nd
other officers and servants of the University, and s h a l l have the entire
control and management of the affairs and
conccrns of the University, and nay act in all natters concerning the University
in such manner as appears to it best
calculated to promote the interests of
the University. " Sections 7 6 and 26A deal with the control and
management by the Council of property and contracts by ~ _- the University.
Section 2 7 ( 1 ) enpovers the Council from time to
time to make, alter and repeal Statutes with respect to a l l or any of a large nunber of natters. They include such
matters as the maneFenent, good govcmment and discipline of the University (s.27(1)(2)), the natriculation,
adr?lssior. and enro Lvpnt of s tudents ( ( j ) (h)), the grantinE of dezrees, diploaas, certificates and honours ( ( T ) ( k ) )
and the prcvision of superannuation benefits ((l)(t). Also included amongst them is the following:-
( g ) The numbzr, stipend, canner of appointment and dismissal 05 deans. professors,
lecturers, examiners and other officers I . and servants of the University.
A number of Statutes have been made by the
Council in exercise of the power conferred-by s.27 but
-
none has been m-de in respect of tfie'matter referred to - --
in ( g ) .
Provision is also made for the making of by-laws,
rules or orders pursuant to provisions contained in
Statutes ( S . 27 (t)) . By s . 2 8
every Statute whcn approved by the
Council is to bs sealed with the comon seai and transmitted
for the approval of the Governor-General. Upon being so approved it is to be notified in the Gazette and thereupon
has the force of law. A copy of every such Statute is to
be laid before each House of the Parliament rrithin 15
. _-
sitting days of that House after notification of the
Statute in the Gazette ( s . 2 8 ( 3 ) ) .
Other provisions in the Act relate to finances,
the keepin? and auditirlg of accounts and the preparation of an annual report. In general no L'ees are chargeable
( s . 2 3 ) ) . The University is esenpted f ron taxation and the administration S E any rcligious test is forbidden.
. L There is CO provision € o r the appointment of
a Visi-tor to the Unlversity.
Was it a decision of an administrative character?
The first question is whether the clecision is of
an administrative character.
The word tladministrativetl carries vith it the
notion o f ttmanagingtl I1executingf1 or ”carrying into effect”.
The administration of an enterprise or undertaking whether
a business, a gc;rernment department, a stztutory authority - -
o r educational institution such as a University, inevitably
involves decisions as to the appointment o r dismissal of
officers and other employees. Such decisions are, in my view, administrative in character. They are a n essential
part of managing, running or adninistering the enterprise or undertaking.
The decision by the Council of the University to
tsrnlinate the applicant’ S appointment was therefore, in a general sense, tladrninistrative in character”.
Under the clefinition in question, the decisions of
an administrative character which are referred to are those
. ._
“made under an enac tmenttl. In this contex-c, “administrative”
is clearly used to dlstinguish the decisions the legislature has in mind from those which are judicial or legislative. This distinction hovever does not Sear directly on the present case because the decision was clearly
veither judicial r1or legislative.
Therc is stlll IcTt for consideration the actual
meaning of the wgrd lladministrativcll in the context of "decisions of an administrative character made or
r equ i r ed t o be rrade.. . . . .under an enactnent".
It i s obviously unwlss t o a t t eqp- t a comprehensive
d e f i n i t i o n b u t , i n my opinion, it is a t l e a d a p t t o desc r ibe a l l t hose dec i s ions , ne i t ' ne r j ud ic i a l no r
l e g i s l a t i v e i n c h a r a c t e r , which I l i n i s t e r s , public servan-ts
government agencies and others m a k e i n the exe rc i se o f
statuto-ry power conferred 02 them, vhether by Act o f the
Parliament o r by de lega ted l eg is la t ion . In o t h e r words it -
a t l e a s t c o v e r s t h e d e c i s x n s Ylade i n executing o r carrying--
i n t o e f f e c t t h e laws of the Commonwealth. Such dec i s ions ,
as the d e f i n i t i o n i n d i c a t e s , may or nay n o t r e q u i r e the
exe rc i se o f a d iscre t ion . Usual ly they will. Q u i t e o f t e n ,
t hey will, i n the exe rc i se o f a d iscre t ion , involve the a p p l i c a t i o n o f t h e g e n e r a l t o t h e p a r t i c u l a r , e.g. a general
r u l e or broadly f ramed powr to par t icular c i rcumstances.
(cf . The Commonwealth and Others v. Grunseit (1943) 67 C.L.R.
58; Tooheys Ltd. v. Minis te r
- €or Business and ConsTwner Affairs
(1 981 ) 36 A , L.R. 64 a t pp. 7 2 4 ) . A s t o the neaning o f
tlaclminis-trative act ion" under the Ombudsman Act 1973 ( V i c . ) s ee Booth v. Di l lon (No. 1) (1976) V.R. 291 ; Booth v. D i l l o n
(No. 2 ) 1976 V.R. 434 and Glenis ter v. Dillon (1976) V.R.550).
A decis ion appoint ing a p e r s o n t o o r removing a
person froin a p a r t i c u l a r o f € i c e o r emploTpent made i n the
exe rc i se of a power confer red by l eg is la t ion i s , i n m y opinion,
c l ea r ly admin i s t r a t lve i n cha rac t e r . It is one made
i n t h e c o u r s e o f executing 01' carryln; . in to effect the
law from which t h e power springs. The Par1iamer.t
recognised Y h s , i t r j e l f , j n r e l a - t l on t o r ~ p p o i n t n e n t s t o
t h e p u b l i c s e r v i c e , by spec l f lca l ly exc luding from the
app l i ca t ion of s.17 decisions r e l a t i n g t o the making
of appointments i n t he Aus t r a l i an Pub l i c Se rv ice or
any o ther Serv ice es tab l i shed by an enac tmnt or t o t h e
s t a f f o f a Common7;ealth authority". (See Schedule 2 ,
para. ( t )( i)) .
In p rev ious dec is ions o f th i s cour t under the -
Act, it has been held o r acknowledged tha t dec is inr rs
r e l a t i n g t o employment e.g. promotion i n the p u b l i c
-
s e rv i ce , ar?. dec is ions "of an adminis t ra t ive charactzr" - - -
(See Hamblin v. Jhf fv & Ors. (1981) 34 A.L.R. 333;
Finch v. Goldstein & Ors.(1981) 36 A.L.R. 287). In my opinion a decis ion t o remove o r dismiss a person f r o n a p a r t i c u l a r emploxyment i n the exerc ise o f a power conzerred by m- enactment is l ikewise a decis ion o f an admin i s t r a t ive charac te r .
If the rezo re t he dec i s ion o f t h e U n i v e r s i t y t o
tsrminzte the applicantvs appointment as a p r o f e s s o r was
"made under an enac tmnt" it was, i n my view, a dec i s ion
o f an ach in i s t r a t ive cha rac t e r and the rz fo re one t o 1.rhich
t h e Act app l i e s . . _-
Was the dec is ion made under an enactmsnt?
It was submitted on bzhalf of the Univers i ty
t h a t the dec is ion was r.ot made "under an enactment?' but I1uncler9l t he con t r ac t o€ se rv ice between the Univers i ty
and the appl icar l t .
No s ta tu te has been made by the Council pursuant
t o S-2'7 (1 ) ( g ) OF the Unlversl ty Ac l: r e l a t i n g to the manner
of ap2,n intmenI; an;: alsrnl.ssa1 o€ professors . Therefore the povcr exercxsed by th? Counc i l , as the governing
' : l
17.
au thor i ty o f the University, i n appoinLing the app l i can t ,
vas tha t confer red o n it by S. 23.
Counsel f o r the Univers i ty argued,hoT:rever, t h a t
even i f the appointment o f t he app l i can t was an ahinis t ra t ive
dec is ion made "under an enactment" t h a t i s , under s.23
(which vas n o t conceded) , the decis ion t o t e r n i n a t e h i s
appoiatment was made under c l a u s e 2 ( b ) ( i i ) o f -&e cond i t ions of appointment.
-
In dea l ing wi th th i s ques t ion it is as well t o - _ _
have i n mind the ob jec t 2nd purpose o f t he Act (s.15Aa Acts
I n t e r p r e t a t i o n Ac t 1901 ) . Sect ion 13 is c lear ly des igned
t o enable a c i t i z e n whose i n t e r e s t s a r e a d v e r s e l y a f e e c t e d
by a d e c i s i o n t o which -the sec Lion a p p l i e s , t o o b t a i n a
s t a t e m a t in virTting concerning the reasons f o r it i n the
terms s p c i f i e d i n sub-S. (l) It confers a bas i c righ.% . which the c i t i zen p rev ious ly d id no t have except where l eg i s l a t ion expres s iy r equ i r ed it or t he app l i ca t ion OS^
r u l e s o f n a t u r a l j u s t i c e demznded it. Those exe rc i s ing
adminis t ra t lve power under Common:srealth enactrll.ents were
not xnder a general duty t o give reasons. Up t o a po in t , - _ _
they were en tz t led to h ide behind a wal l o f s i l ence . A
c i t i zen adve r se ly a f f ec t ed cou ld , o f course , a t tempt to
use t h z prmogat ivz writ procedure t o e s t a b l i s h t h a t a dec is ion was d2Eective but this procedure was u n l i k e l y t o
be of value ~f the reasons f o r the decision cou1.d not be
proved. Therefore pi-lor t o tfle enac tnent o f s.13, a
persorl V J ~ O S C i n t e r e s t s wcre adversvly affcc ted by an
adminis t ra t ive decis ion might be deprived o f a remedy
even though the decision was a c t u a l l y d e f e c t i v e i n law.
It was l a r g e l y t o remedy this s i t u a t i o n that the s e c t i o n was enacted.
The Administrative Revielr Counci l es tab l i shed by
the Administrative Appeals Tribunal Act 1975 (s.48) has
s t a t e d sone o f the purposes o f imposing the obl igat ion under
s.13 o f the Act t o furn ish s ta tements o f reasons, It has
s a i d i n terms I am happy t o a d o p t t h a t t h e y i n c l u d e - -
--
( a ) t o overcome t h e r e a l g r i e v a n c e persons
experience when they are n o t t o l d why
something affect ing them has been done;
(b) t o enable persons affected by a d e c i s i o n
t o s e e what was t&en i n t o account and
whether an error has been made s o t h a t they
may determine whether to chal lsnge the
dec i s ion and vhat means to adopt Tor doing so.
(See Administrative Review Council S-ta temen t o f Reasons : An Explanatory Memorandum para 9 , The Australian -Administrative
Law Service (Pearce) pp. 5003-5010. See too Administrative
Appeals Tribunal Act 7975 ss. 28, 37, 38; Re Palner and Min i s t e r
f o r t h e CaDital T e r r i t o r y (1978) 1 A.L.D. 183 a t pp. 192 e t seq;
Iveach (Earl of) and Others v. Minis ter o f HousTng and Local
- Goveroment and Pnother (1964) 1 Q.B. 395 a t pp. 405 and 410;-
I n Re Poyser and i h l l s ' Arb i t r a t ion (1964) 2 Q.B. 467 a t
pp. 469-470).
Sectloll 13 o f t h e Act covers a v i d e variety of
dec is ions . It extends beyond the dec i s ions of PIinisters and
publ ic se rvants to those confer red on s t a t u t o r y a u t h o r i t i e s
and o t h e x by an enacLment. Thc o n l y s ign i f i can t excep t ions _-
i.
a r e those by the Governor-General and those by p e r s o n s a c t i n g - -
under la:~s r e l a t i n g -to Northern the Terri-tory. L - .F. -. -
Schedt:le 2 o f the Act by cuc lud iug ce r t a in
d e c i s l o m f r o p ths app l i ca t ion o f s.13 gives somc idea
o f the sccpe and operat ion v:hich the draftsinan thought the sect ion might have.
Paragraph ( k ) is a s u f f l c i e n t example for t h e
purpcses or^ t h i s c a s e . It excludes the decis ions o f a
number oP a E t h o r i t i e s " i n r e s p e c t o f t h e i r c o r a e r c i a l
ac t iv i t i e s t1 . Inc luded among those bodies a re the
Aus t ra l ian Nat ion21 Ai r l ines Cormnission, t he Aus t r a l i an
Wheat Soard, the Cvlberra Commercial Development Author i ty
and t h e Commonveal-th Savings Bank o f Aus t ra l ia .
It is tc be noted that , s tanding a lone, the
p h r a s e " d c c i s i o n s i n r e s p e c t OF Lheir cgmn?.ercial ac-tivikiesll is wide enough t o cover decisions made by
t h e s e a u t h o r i t i e s i n exerc ise o f con t r sc tua l r i gh t s . Wlletl~er it b e a r s t h a t meaning in paragraph ( k ) , i t is,
i n my view: unnecessary t o d e c i d e i n t h i s c a s e b u t the
exc lus ion of t hese dec i s ions desc r ibed i n pa ra (k) does
lend support - to the agreement that decisions by a
s t t i t u to ry au tho r i ty i n exe rc i se of the general powers
confer red on it are decisions "under an enactmmtrl f o r
the purpose o f t h e Act even though thsy are also dec i s ions which are made i n e x e r c i s e oP con t r ac tua l r i gh t s .
A consicioratlon or^ t hc ncl; c lear ly emphas ises
i t s a o t e n t i a l l y broac'. scope and remedial character i n
c r e a t i n g new pi-ocedural rmedies and a r i g h t t o receive a
wri t t en s ta tement regarding reasons. It s h o u l d , c o n s i s t e n t with i t s larguage, be given a broad as opposed t o a narrow
c o n s t r u c t i o n and one which will se rve t o ach ieve t he b road
o b j e c t s and purposes Parliament had i n mind. (See Evans v-
Friemann and Others (1981) 35 A.L.R. 428 at p.435).
Consis tent with this approach, I am o f the o p i n i o n
t h a t i f a s t a t u t o r y a u t h o r i t y makes a d e c i s i o n by which a
person i s aggrieved, which i s made unde r b road s t a tu to ry pcwers but whi-ch l i e s a t t h e v e r y h n a r t o f t h o s e f u n c t i o n s for which the body was e s t a b l i s h e d b y s t a t u t e , t h e courts
shocld be slow t o f i n d t h a t s u c h a dec i s ion , if a d m i n i s t r a t i v e
i n c h a r a c t e r , i s no t macie !'under an enac tment'l simply
because the occasion for the exercise o f ths power arises
ou t 07 a con t rac tua l s i t ua t ion . The c l e a r o b j e c t o f the
Act i s t o c o n f e r r i g h t s on aggr i eved c i t i zens as a result
o f t h e e x e r c i s e o f pGi-rers corLerred by a n enactment on
H i n i s t e r s , p u b l i c s e r v m - t s , s t a t u t o r y a u t h o r i t i e s and
o t h e r s . I n many cases Yne power exercised will be p r e c i s e l y
s ta ted. i n t h e l e g i s l a t i o n . I n o t h e r c a s e s the power t o do
a p a r t i c u l a r t h i n g w i l l be found i n a broadly statcd
power. The Act should not be confined t o cases where t h e p a r t i c u l a r po'ver i s p r e c i s e l y s t a t c d . I n each case
t he ques t ion t o be as!:ed is one o f suhs ta rxe , rhether, i n
e f z e c t , the dccic lon is inade "urlder an enactment" o r o therwisc .
I t doe; not fo l lo i : from th i s app?-oach that i n
cases o f a s ta tutrJry author I zy, s u c h a:, the LJnivcrsity,
every riecision I +, makes i.s madc "unrl:.r" [:he p a r t i c u l a r
s t a t u t e . Each case s h o u l b be considered separ2-teLy to
i d e n t i f y t h e s u b s t a n t i a l b a s i s upon vhich the ?oIrer is
exe rc i sed . But i t w o ~ l d be wrong, i n ny view, to exc lude
from the operation of th.e Act fundalnsntal decisions of the
Unive r s i ty ( a body crea ted by s t a tu t e ) t h rough i ts Council
about natters l y i n g a t t h e v e r y h e a r t o f i ts existence and
essential t o t h e f u l f i l m e n t o f t h e b a s i c f u n c t i o n fo r which
t he Un ive r s i ty was s e t up by Parliament. The establishment
o f t he Un ive r s i ty as an autonomous s t a t u t o r y body independent
OF Government i s suoported ._ by nany provisions in the
Universi ty Act . This emphasises the scope and importance
of the powers i t exe rc i se s .
Ir. t h i s c a s e , tf.e Council o f the U n i v e r s i t y
appoin ted the appl icant a p r o f e s s o r i n e x e r c i s e of the powers
confer red on i t by s s . 10 end 2 3 G € t he Un ive r s i ty A c t .
Sec t ion 23 recopnises che signiEicance o f t h e power t o appoint deans and professors by p lac ing i t f irst zmong the powers vhich the Counci l i s t o e x e r c i s e s u b j e c t to the A c t
and tine S ta tu t e s . Th i s is not surpr i s ing because such
ap?ointments are so fundamenta l to the fu l f i lment o f the
UniversTty’s functions under 5.6.
Another aspect of the Ccuncil‘s powers ix rc lat lon
to the agpointment and dismissal of proressors t o b e borne
i n mind i s i t s poxier t o make s t a t u t e s OR numerous matters
inc ludinz the number, s t i p e n d , manner of appointment and
clismis-,aJ of deans and p ro fes so r s e t c . Konc €;as bccn made
on t h i s s u b j e c t bvr such R s t a t u t e , i f made, Woul-d, when
ap?roved by the Governor-General and notified i n t h e Gazette, have the force or lav. It wauld, having regard t o t h e
def in i t ion o f “enac tment“ be an enactment for the purposes of
the Act and if it contained powers of u i smis sa l the d e c i s i o n
t o e x e r c i s e t h o s e powers would, i t seems t o ne, b e d e c i s i o n s
under an enactment.
The appointment of the appl icant ~ 2 made subject s
t o a condi t ion givinE the Counci l power t o t e r m i n a t e his
appointment 2nd remove him from off ice i n t h e circumstances
t h e r e i n set ou t . I n cer ta in events (a l leged misconduct o r
inefEiciency) an enquiry has f i r s t t o be he ld -
When the Counci l vas confronted with t h e t e r m i n a t i o n
of Professor Burns’ appointment on the ground of permanent
i ncapac i ty , t he ques t ion be fo re i t , i n ny opinion, vent far
.. beyond t h e mere exe rc i se of a power under hi.s a n d i t i n n s of
appointment and involved, as w e l l , t h e e x e r c i s e of the powers
and discret ions conferred on i t under the Univers i ty A c t as
the governing authority of the Univnrsi . ty.
The involuntary terminat ion o f a p ro fes so r ’ s tenure
i s a matter involv ing ques t ions of g e n e r a l s i g n i f i c a n c e t o
a University, one which is capable oE r a i s i n g i s s u e s fa r
beyond the c i rcumstances o f the par t icu lar p rofessor .
The involuntary t e rmina t ion of p rofessor ia l t enure is a
n o t o r i o u s l y s e n s i t i v e i s s u e , e . g . Orr’s Case ( f o r High Court
proceedings see ( 1 9 5 7 ) 1 0 0 C.L.I?. 5 2 6 ) . It is v i t a l CO thc
f u l f i l m e n t of the Univcrs i ty’s Euncrions a s an fndcpendent
.
. 2 3 .
e d u c a t i o n a l i n s t i t u c i o n c o x l i t t e d t o the s e a r c h f o r
t r u t h t h a t the t enure of i t s p r o f e s s o r i a l s t a f f b e free f r o m a r b i t r a r y a t t a c k . I can think o f no pr inci?Le more
b a s i c t o t h e e x i s t e n c e of a U n i v e r s i t y i n a free s o c i e t y .
The not ion the t in the involunt .a ry t e rmina t ion o f a
professor 's a?pointment i t i s merely acting under the terns of apDointment _ _ and not under i t s bas i c s ta tu te as well, in
my vier?, debases the very p r inc ip le upon rihich the University
i s founded - academic freedon. This i s rihy, i n my oFin ion , the d e c i s i o n f o r i n v o l u n t a r y t e r n i n a t i o n o f a proEessor ' s
apyointment i s of a fundanental character and when it is
made by a U n i v e r s i t y s e t up by s t a t u t e , i t i s inescapably
one which i s made i n exerc ise o f the povers conEerred by
s t a tu t e , even i f the occa-s ion for i t s e x e r c i s e erises as a
result o f a. contractual arrangement.
Furthermore the conditions of appointmmt in this
case were no t t a i l o red only fo r Professor Burns, but appear,
on t h e i r f a c e , t o be the genera l ccgdi t ions used a t the time
for the appointment of a p r o f e s s o r t o the I n s t i t u t e of
Advanced Studies o ther than one in charFe o f a department.
T h e i r e x e r c i s e i n 't'nis case could provide a d i rec t p receden t i n o t h e r s .
.- Eecause of considerat ions such as thesc, the Counc i l
i n consider ing t*rhether to exercise i t s pover to t e rmina te
Professor Burns' appointrncnt under the conditions of
appointr.ent would, i n m] vicx, inevitlably hc a c t i n g i n exercise
of t he pene ra l po:.rccs i t has ur.tlcr s s . 1 0 and 23 of the
Univers i ty Act as the eovexning a u t l w r i t y o f tbc University
with I t s e n t i r e rnannPement and control and the power and
duty t o ac t a s appea r s bes t ca l cu la t ed t o p roco te i t s i n t e r e s t s .
Not o n l y i s the appointnent and t enure of
p ro fes so r i a l s t a f f fundamen ta l t o t he Un ivs r s i ty ' s func t ions .
A professor such as the appl icant , once appointed, has certain
r igh t s wh ich a r e con fe r r ed upon him under the University A c t .
He i s e n t i t l e d t o b e a member o f t h 2 P r o f e s s o r i a l Board which
advises the Universi ty Counci l on natters r e l a t i n g t o educa t ion , l ea rn ing , r e sea rch o r t he academic work o f the
Univers i ty . Iie i s e l i g i b l e f o r e l e c t i o n t o the Council and
i s e n t i t l - e d t o v o t e f o r t h e e l e c t i o n t o t h e C o u n c i l VE a
pro fes so r i n t h e I n s t i t u t e . ( s . l l ( l ) ( g ) ) . Tie i s a l s o e l i g i b l e
t o be appointed Chairman of t b e Board of t h e Ins t i tu te or t o
be e l e c t e d t o i t in t h e manner provided by the Stazu tes
(s.l5A(l) ( e ) ) . I have not purported to give a c o q l e t e .
s ta tement oE t h e r i r h t s which flow from appointment as a
p r o f e s s o r w i t h i n t h e I n s t i t u t e o f A ~ v a n c e d S t u d i e s - Ihac
L have s a i d i s s u f f i c i e n t t o show f irst , t h e s i g n i f i c a n c e of
t h e o f f i c e of professor within the Universi ty and its
adminis t ra t ive and execut ive s t ruc ture and , secondly that a
prof?ssor may, i n a d d i t i o n t o b-is professorsh ip , have ach ieved
o t h e r o f f i c e w i t h i n t h e U n i - v e r s i t y on bod ies e s t ab l i shed by
the Un ive r s i ty P.ct and t h a t i f h i s a p p o i n t m e n t is terminated i n v o l u n t a r i l y i t caE nEfectr,ot only his professor iaL te rmre ?)ut a l s o tbose o the r oc i i ces . In a given case thc offices so
held could be of considerable inr2ortance t o t h c a d m i n i s t r a t i o n
of che University e . g . Chairman o f t he T<oartl o € t h e T n s t i t u t e .
I n dc.cLding to terminate such a proEcssol-‘s appointment,
as a professor , the Counci l r.Tould c lear ly have to t2ke in to
account the ramif ica t ions i t r7ould have f o r t h e University as a t7hole -
There i s no evidence before me of any pos i t ion
which the appl icant holds apar t f rom being a oenber of t h e
Professor ia l Board and bead of the Centre for Foreign
Polit ics (bJestern Europe) within the Research School of S o c i a l
Sciences. But the question I a m consider ing i s the nature
of t h e power which the Council exercises when it dec ides t o
terminate the appointment oE a professor . The fac t t h a t i n
h i s c a s e i t would have l e s s e r r a n i f i c e t i o n s t h a n in o t h e r s ,
does no t s een t o m e t o m z t t e r . It 17ould n o t a f f e c t t h e nature
o f t h e power i t s e l f . It i s one of a nutaber of factors which t h a t ,
h2ve l e d m e t o the viex7/ i~ Jec id inp t o t e rmina te the a p p l i c a n t ’ s
appointment as a professor , the Univers i ty , th rcuzh i ts
Council , was making a decis ion “under” the Univers i ty A c t .
It E o i l o w t h a t , i n my opin ion , the Counci l in
d e c i d i n g t o terminate h i s appointment was noc merely e x e r c i s i n g
a power under the condi t ions of his appointment but was also
making a decis ion under the Universi ty Act of an a d m i n i s t r a t i v e
cha rac t e r . Th i s means tha t , p r ima f ac i e a t least, the
z.-oplicant i s e n t i t l e d t o a d e c l a r a t i o n t h a t h e was ent i t led t o
mzke t h e r e q u e s t f o r a writ ten s ta tement undzr s - l3( l ) of
rhe k t . Such a statement should set out not only t h e r e a s o n s f o r t h e dcc i s ion but a l s o the finc1inf;s on nateriaZ q u e s t i o n s of
f a c t 2nd should rc-fer t o L h e evidence or oc1lc?r material on whicI1
t h o s e findings were based .
L U .
Needless to say a k n o x l e d ~ e of those matters is
fundanencal to Professor Burns' capacity to defend himself.
From such a statement he should be b e t t e r a b l e to determine
t rhethcr the Universi ty has erred - f o r i n s t a n c e rrhether it
acted on insuff ic ient medtcal evidence, wb-ether f t should have
acted on the ground o f i n e f f i c i e n c y i f i t wished t o act and
should have es tabl ished a Connittee of Inqu i ry ber'ore irhich
he could appear or whether it ac t ed with undue haste and
should have waited, before making a d e c i s i o n , u n t i l fie hc3
an oppor tun i ty t o p rov ide t he r e su l t s of the electroencephalograr;:
and other medical advice. It nay show tha t he has no grounds Eor complaint a t all.
Huch of t h e a r p m e n t i n ch i s ca se r e I a t ec? t o t h e
ques t ion whether the cour t s would intervene on the basis of a
d e n i a l oE n a t u r a l j u s t i c e o r whether, i f it r r 2 s a m e r e master and se rvan t r e l a t ionsh ip , t he app l i can t shou ld be left te his
r i g h t s t o b r i n g a n a c t i o r ! f o r wron,pful dismissal- (See
University Council of Vidyodaya, Unive-csity of Ceylon v. S i l v a
(1965) 1 W.L.R. 7 7 ) ; _- Mallocf! v.Aberdeen Corporation (1971) I K.L.R. 157E p e r Lord b7ilberEorce ar pp- 1595-6; O r r v.
Univers i ty of Tasmania ( s u p r a ) ) .
I do no t f i nd i t necessa ry t o consider this question
because the i s sue before me, a s I see i t , is one o f c o n s t r u i n g
the s t a tu t e t o de t e rmine vhe the r t he app l i can t is en t i t l ed tu
reasons under s.13. It does not necessarily Zollow that
c
- I
, L ' 2 7 .
, 4 1
because he i s cnt i t jec! to reasons, he i s also e n t i t l e d t o relief
under S . 5 of the Act or to the issus of a prerogatixre rrit i n
the I i igh Court . Iie n a y f i n d t h a t h i s o n l y remedy ( i f any)
i s an ac t ion for wrongful d i smissa l .
I \.]as a l so r e f e r r e d t o an unreported d e c i s i o n of
Barker J. i n - Dwen v. Youn: and Karicato Val ley Author i ty
Supreme Court of Few Zealand (15 December 1978). Although
bear ing on the i s sue before me, i t does not : i n my view,raise
the same ques t ion re l .a t ine as i t does t o a d i f f e r e n t statute
and d i f fe ren t c i rcumstances .
Another quest ion ra ised at t h e h e a r i n e i s whether
I should reEuse to make a declarat ion under s.13 ( 4 N (b)
no twi ths t and in r my view tha t the dec is ion in ques t ion is one
t o which the sec t ion appl ies . In my o p i n i o n , n o s u f f i c i e r t
ground exis ts for reEusing t u do s o .
T. propose therefore t o d e c l a r e t h a t t h e a p p l i c a n t
w a s e n t i t l e d t o make t he r eques t made by h i m by l e t t e r t o
the Un ive r s i ty da t e3 23 Xovenber 1381 and t o o r d e r t h e
U n i v e r s i t y t o p a y t h s a p p l i c a n t ' s c o s t s o f th i s app l i ca t ion .
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