L. Grollo and Co Pty Ltd v Hammond, Theo
[1977] FCA 23
•11 May 1977
*-
I N THE FEDERAL COURT OF P.US?'RALIA
VICTORIA DISTRICT REGISTRY
GENERAL D I V I S I O N 1977 No. VG 28
| I | B E T W E E N : |
L. GROLLO L CO. PTY. LTD. P l a l n t l f f
and
THEO IIAMYOND and I G O X OSIrlACZ and
THEO HAMEIOND & FARTKERS and
TEE ROYAL AUSTRALIAN INSTITUTE OF
ARCHITECTS Defendants
JUDGMENT
Th l s i s t h e r e t u r n o f a summons t aken ou t by t h e P l a l n t l f f
s e e k l n g f u r t h e r p a r t l c u l a r s of defence aga lns t the four th-named Defendant, The Royal A u s t r a l l a n I n s t l t u t e o f A r c h l t e c t s ( h e r e a f t e r c a l l e d " t h e I n s t l t u t e " ) .
By i t s amended s t a t emen t of clalm, t h e P l a l n t l f f 1s secklng
d e c l a r a t i o n s and ~ n ~ u n c t i o n s a g a l n s t t h e I n s t l t u t e a n d , I n summary,
It may b e s a l d t n a t t h e s u b s t a n c e o f t h e P l a l n t l f f ' s clalms depends
upon t h e p r o v l s l o n s of t h e T r a d e P r a c t l c e s A c t 1 9 7 4 and allerjed b r e a c h e s o f t h a t A c t by t h e I n s t l t u t c . I n particular, t h e Plaintiff a l l e g e s t h a t t h e Code of Professzonal Conduct , the Scale of Charyes
and the Conditlons of Engagement, lssued by t h e I n s t l t u t e , a r e I n
breach of the p rov l s lons o f t he T rade Practlces Act.
By Its ameaded s t a t e m e n t o f c l . a ~ m t h e P l a l n t i f f a l l c y e s
t h a t t h e I n s t i t u t e i s lnco rpora t ed pu r suan t t o the l aws of t h e
S t a t e o f New South Wales and 1s a corpora t lon wi th ln the meanlng and fo r t he pu rposes of t h e T r a & P r a c t l c e s A c t . I t alleges
f u r t h e r t h a t t h e m a j o r i t y o f a r c h l t e c t s p r a c t i s l n q j n A u s t r d l l a
are rnemhers of t h e I n s t l t u t e and t h a t t h e m r n b e r s of t h e I n s t l t u t e
c o n s i s t o f member.: practising a s a r c h i t c c t s " I n t e r a l l a I n a l l t n c
S t a t e s o f A u s t r a l i a , t h e A u s t r a l l a n Cap] tal. T e r r J tory and thP
Northern Ter r i to ry" . Paraqraph 1 8 of thr: menc??ed s t a t e m c n : of
c l a m is as fo l lows :
. / 2 . . .
"18.-Pursuant to the ob~ects of the fourth-named Defendant and in accordance with its Artlcles of Assoclation
the fourth-named Defendant made regulatlons and/or by-
laws flxlng both presently and at all material tlmes the minimum fees or charges at whlch Its members
should provlde their services as Archltects, namely, a Code oE Professional Conduct dated November, 19'3,
a Scale of Charges dated 1st July, 1972 and amended
in July and September, 1974 and Condltlons of Engagementdated 1st July, 1973 and amended In July, 1974."
Paragraph 19 of the amended statement of claim 1s as
follows :
"19.-Pursuant to the said Memorandum and Articles of
Assoclation of the fourth-named Defendant the first second and thlrd-named Defendants and the other mcmhers of the fourth-named Defendant are and at all materla1 times were bound to observe and charge not less than
the mlnlmum fees or charges so flxed by the fourth- " named Defendant. Paragraph 24 of the amended statement of claim is as
follows :
"24.-Further or alternatlvely, slnce the 1st October 1974
members have joined the fourth-named Defendant whereby,
by virtue of the sald Memorandum and Artlcles ofor alternatlvely since the 1st February 1975 new the sald Scale of Charges and the said Condltions of Engagement, the ilrst, second, third and fourth-naned Defendants have each entered into new agreements, arrangements or undertaklngs wlth such new members to observe and charge not less than the said minimum fees
and charges (herem called "the Later Instltute
Agreements") . " The Institute by its defence to the amended statement of
claim admits its incorporatlon but does not admlt It 1s a
corporation wlthln the meanlng of the Trade Practlces Act. It
admlts that the ma~orlty of archltects practising in Australld are and were at all materlal times Its members and admits that Its
members practlce as archltects in each of the States of theCommonwealth of Australla, the Australian Capltal Territory and
the Northern Territory. Paragraph 18 of thc defence 1 s as follows :
./3.. .
"18.-To paragraph l 8 t he reo f It adml t s t ha t t he Counc l l
o f t he Four th named Defendant approved and publlshed
a Code of Profess lona l Conduct da ted November 1973,
a Sca le o f Charges to opera te f rom the 1st J u l y 1 9 7 2
w l t h amendments a u t h o r i s e d t o o p e r a t e from t h e 1st J u l y 1 9 7 4 and the 1st October 1 9 7 4 and Condl t ions of Engagement a u t h o r l s e i t o o p e r a t e f r o m t h e 1st J u l y 1 9 7 2 w l t h amendments a u t h o r i s e d t o o p e r a t e from t h e
1st J u l y 1 9 7 4 ; ( t o t h e f u l l terms of each of whlch t h e
Fourth named Defendant w l l l r e f e r a t t h e t r i a l o f t h e
a c t i o n h e r e m ) ; s a v e a s a f o r e s a i d It denies each and
e v e r y a l l e g a t i o n t h e r e i n . " -
Paragraph 1 9 of the defence 1s as fo l lows :
"19.-To paragraph 1 9 the reo f i t a d m i t s t h a t p u r s u a n t t o
t h e Memorandum and Articles of Assoc ia t ion of the Fourth named Defendant the F l r s t , Second and Thlrd
named Defendants and the severa l members o f t h e € o u r t h
named Defendant have and a t a l l m a t e r l a l tlmcs had a
du ty t o obse rve and upho ld t he s a id Scale of Charges;
s a v e a s a f o r e s a l d It den le s each and eve ry a l l ega t lon t h e r e l n . "
Taragraph 2 4 o f t he de fence i s as fo l lows :
"24.-To paragraph 2 4 t h e r e o f it a d m l t s t h a t s l n c e t h e
1st October 1 9 7 4 and s lnce t h e 1st February 1 9 7 5 new
members have ~ o i n e d t h e F o u r t h named DefenCant; save
a s a f o r e s a i d it den le s each and eve ry a l l ega t lon t h e r e l n . "
Paragraph 54 of the defence i s as fo l lows :
" 5 4 . - F u r t h e r o r a l t e r n a t i v e l y It says on o r a b o u t t h e
17th day of January 1975 the Trade Practlces Commlsslon
p u r s u a n t t o S e c t l o n 88 and Sect lon 9 1 of the Trade
P r a c t i c e s A c t 1 9 7 4 g r a n t e d t o t h e F o u r t h named Defendant
a n In t e r lm Au thor l sa t ion upon App l i ca t lon No. A 5 8 and
t h e F o u r t h named Defendant w l l l r e l y upon Sec t lon 88(1)
o f t h e T r a d e P r a c t l c e s A c t 1 9 7 4 . "
By Not lce da ted 16 th March 1 9 7 7 , t h e P l a l n t l f f s o u g h t
f u r t h e r a n d b e t t e r p a r t i c u l a r s o f t h e d e f e n c e of t h e I n s t l t u t e In
r e l a t l o n t o p a r a g r a p h s 1 8 , 1 9 , 2 4 and 5 4 .
/ 4 . . .
The pa r t i cu la r s sough t unde r pa rag raph 18 of the defence
r e l a t e t o t h e d a t e and place where each of t h e a p p r o v a l , p u b l l c a t l o n
a n d o p e r a t i o n r e f e r r e d t o t h e r e l n was made, t h e p a r t l c u l a r s as t o
names and addresses of every person who c c n s t l t u t e d t h e C o u n c l l o f t h e I n s t l t u t e a n d who approved and published t h e Code o f
P ro fes s iona l Conduc t , t he Scale of Charges and the Conditions of
Engagement, p a r t i c u l a r s o f t h e s o u r c e , n a t u r e a n d e x t e n t o f t h e
power of the Councl l In approvlng and publ lshlng those documents ,
p a r t i c u l a r s o f t h e r e s p e c t l v e d a t e s of each approva l , pub l i ca t lon
a n d o p e r a t i o n , p a r t l c u l a r s of t h e f u l l terms of each of the documents
a n d p a r t i c u l a r s as t o e a c h S ta te o f A u s t r a l l a , T e r r i t o r y o f A u s t r a l l a
or p l ace ou t s ide Aus t r a l l a where t he p rov l s lons o f t hose documen t s
opera ted and had force and e f fec t .
The pa r t l cu la r s sough t unde r pa rag raph 1 9 o f t he de fence
re la te t o " t h e s e v e r a l members" referred t o I n tha t paragraph and
l d e n t i f i c a t l o n o f e a c h and every one of them.
The pa r t l cu la r s sough t unde r pa rag raph 2 4 o f the defence
re la te t o t h e names and addresses of each and every new member of
!
t h e I n s t i t u t e who ~ o i n e d s i n c e t h e f l r s t day of October 1 9 7 4 .
The pa r t l cu la r s sough t unde r pa rag raph 54 of the defence
r e l a t e t o t h e g r a n t r e f e r r e d t o and seek l d c n t i f l c a t l o n o f t h e
persons on whose b e h a l f t h e g r a n t was made and who acquired any r i g h t t o r e l y upon s.88(1) of the Trade Practices A c t 1 9 7 4 a s a
| I | r e s u l t o f t h e g r a n t | and | who | acqu l red any bene f l t unde r t he g ran t . |
The o n l y p a r t l e s t o t h e a c t i o n who appeared on t h e r e t u r n
o f t he summons were t h e P l a i n t i f f a n d t h e I n s t i t u t e . Each p a r t y c o n c e d e d t h a t p u r s u a n t t o t h e p r o v i s i o n s o f t h e F e d e r a l C o u r t o f
A u s t r a l i a A c t 1 9 7 6 and the Ru les o f t he Fede ra l Cour t o f Aus t r a l l a ,
t h e p r o c e e d i n g s I n t h i s a c t i o n a r e r e g u l a t e d by t h e High Court Rules.
The r e l e v a n t High Court R u l e s a r e c o n t a l n e d i n O r d e r 20 r . 4 , r . 5 and
r . 6 . The r e l e v a n t p a r t s o f t h e s e R u l e s ale‘ as i o l lows :
l
" 4 . ( l ) - A p l e a d i n g s h a l l c o n t a l n , a n d c o n t a l n o n i y , a s ta te-
ment i n a summary form of t h e m c t c r l a l f a c t s on which
t h e p a r t y p l e a d i n g relles f o r h l s c l a i m o r d e f e n c e ,
as t h e c a s e may be , bu t no t t he ev ldence by whlch they
are to be p roved . "
. / 5 . . .
..
- 5 -
" 5 . ( l ) - h i e r e t h e p a r t y p l e a d i n g rellcs on a c o n t r a c t o r o n
m l s r e p r r s e n t a t l o n , f r a u d , b r e a c h o f t r u s t , w l l f u l d e f a u l t o r undue in f luence , and I n o t h e r c a s e s i n
w h i c h p a r t l c u l a r s a r e n e c e s s a q , p a r t i c u l a r s , w l t h
d a t e s and items i f n e c e s s a r y , s h a l l b e s t a t e d i n t h e p leading . "
" 6 . -A f u r t h e r a n d b e t t e r s t a t e m e n t o f t h e n a t u r e o f a
claim or defence or f u r t h e r a n d b e t t e r p a r t l c u l a r s
of a m a t t e r s t a t e d i n a p l e a d i n g , n o t i c c o r w r l t t e n
p r o c e e d l n g r e q u l r i n g p a r t l c u l a r s , may be ordered upon such terms a s t o costs and otherwise a s 1s j u s t . "
The p r i n c i p l e s o f l a w t o b e a p p l i e d a r e n o t I n d i s p u t e .
They a r e e x p r e s s e d i n t h e following passage f rom the ~udgment of
I s a a c s J. I n R.V. Assoc la t ed Nor the rn Co l l l e r l e s (1910) 11 C . L . R . 740-741 :
"I take t h e f u n d a m e n t a l p r i n c i p l e t o b e t h a t t h e
o p p o s l t e p a r t y s h a l l a l w a y s b e f a l r l y a p p r i s e d o f t h e
n a t u r e o f t h e c a s e h e 1 s c a l l c d upon t o meet, s h a l l be p laced 111 posses s lon o f i t s b r o a d o u t l i n e s a n d t h e c o n s t l t u t l v e f a c t s w h l c h a r e s a l d t o r a l s e h i s l e g a l
l i a b i l l t y . H e i s t o receive s u f f l c l e n t i n f o r m a t l o n t o
ensu re a f a i r t r l a l and to gua rd aga lns t wha t t he l aw
terms " s u r p r l s e " , b u t h e i s n o t e n t l t l e d t o b e t o l d t h e
mode by whlch t h e c a s e 1 s t o be proved agalnst h lm."
I n a n e a r l l e r p a s s a g e a t p . 7 4 0 H1.s Honour s a l d :
"I have t o c o n s i d e r p r l n c l p a l l y how f a r t h e Crown ha5 set
o u t a l l m a t e r i a l f a c t s on whlch It r e l l e s t o s u p p o r t i t s c l a im, bu t no t t he ev ldence by whlch they a re to he
proved, and how f a r I o u g h t t o o r d e r a s p a r t l c u l a r s a
f u r t h e r a n d b e t t e r s t a t e m e n t o f t h e n a t u r e of t h e c l a l m . "
I n N a t l o n a l S t a r c h Company v Robcrt Harper and Co. P r o p r l e t a r y -
Llmited ( 1 9 0 6 ) V.L.R.8 Hodges, J. a t p . 1 2 s t a t e d t h e p r l n c l p l e a s fo l lows :
"A defendant 1 s e n t l t l e d t o know e v e r y m a t e r l a l f a c t
upon whlch t h e p l a l n t l f f re l les , so t h a t h e may know
t h e n a t u r e a n d c h a r a c t e r o f t h e c h a r g e made a g a l n s t
hlm, and ne 1s e n t l t l e d t o know t h o s e f a c t s w i t h so
much p r e c i s l o n a s w l l l enab le him t o p r e p a r e h i s b r i e f
and a s will p r e v e n t h i s b e i n g t a k a by s c r p r ~ s e a t the t r la l . "
i
. / 6 . .
See a l s o T r a d e P r a c t l c e s Commission v To ta l Aus t r a l i a L imi t ed
(1975) 2 4 F.L.R. 413.
I t is t o b e n o t e d t h a t I n t h e p r e s e n t c a s e , i t 1s t h e
P la in t i5 f wh ich 1s s e e k l n g f u r t h e r p a r t l c u l a r s o f a defence. Apart from paragraph 5 4 of t h e d e f e n c e , t h e p a r a g r a p h s t h e s u b ~ e c t o f t h e a p p l i c a t l o n f o r f u r t h e r p a r t i c u l a r s c o n t a i n e d a d m i s s l o n s a n d
ralsed l s s u e s i n a n s w e r t o t h e a l l e g a t l o n s c o n t a i n e d i n t h e amended
s ta tement o f c la im. The l n s t l t u t e , v e r y p r o p e r l y , h a s a t t e m p t e d
t o limit a n d d e f l n e t h e i s s u e s r a l s e d by Its d e f e n c e a n d t o t h i s
e x t e n t h a s made admlss lons o f f ac t . The rules r c q u l r e , i n
a p p r o p r i a t e c a s e s , p a r t l c u l a r s t o b e g l v e n b u t t h e p a r t i c u l a r s a r e t o be l lml t ed t o those whlch prevent an oppos ing par ty be lng taken
by s u r p r l s e , i n o t h e r w o r d s t o e n a b l e p a r t i e s t o i d e n t l f y t h e
issues t o b e r a i s e d a t t h e h e a r i n g of t h e a c t l o n .
The burden of the submlsslons made on beha l f o f the
P l a l n t l f f r e l a t e t o a c l a i m t h a t t h e P l a i n t l f f w l l l b e r e q u l r e d t o
prove fac ts in o rder to found a rguments In l aw. In o rder t o prove
t h o s e f a c t s , so t h e P l a l n t l f f c l a i m s , t h e I n s t i t u t e s h o u l d b e
r e q u l r e d t o g i v e t h e p a r t l c u l a r s s o u g h t . The I n s t i t u t e , p u r s u a n t
t o t h e r e q u e s t f o r f u r t h e r p a r t i c u l a r s , h a s s u p p l l e d t o t h e P l a l n t l f f
a number o f pa r t i cu la r s unde r pa rag raph 18 of I ts defence lnc ludlng
c o p i e s o f t h e d a t e s when amendments t o t h e a p p r o p r l a t e d o c u m e n t s
were made and the da tes f rom whlch the amendments were t o b e
o p e r a t l v e . I n a d d l t l o n , t h e I n s t l t u t e p r o v i d e d c o p l e s o f t h o s e
documents t o t h e P l a l n t i f f . The I n s t i t u t e s a y s t h a t t h e P l a l n t l f f
is n o t e n t l t l e d t o t h e f u r t h e r p a r t l c u l a r s s o u g h t u n d e r p a r a g r a p h 1 8
n o r t o any f u r t h e r p a r t l c u l a r s u n d e r p a r a g r a p h s 1 9 , 24 o r 54 of t he
defence . I propose t o d e a l s e p a r a t e l y w l t h e a c h of these paragraphs .
Under paragraph - 1 8
The m a t e r i a l f a c t s upon which t h e P l a l n t l f f seeks t o r e l y
are set o u t I n p a r a g r a p h 1 8 of Its amended s t a t e m m t of c la lm.
Paragraph 18 o f t h e d e f e n c e c o n t a l n s c e r t a i n a d m l s s l o n s o f f a c t .
The I n s t l t u t e d o e s n o t raise, a s a m a t e r i a l f a c t , t h e c x l s t e n c e o r
absence of a power by t h e C o u n c l l t o a p p r o v e , p u b l l s h o r s t a t e a
d a t e f o r t h e commencement o f ope ra t ion of rhe Code of Professional
Conduct , the Scale of Charges o r t h e C o n d l t i o n s of Engagement t o
. /7 . . .
.: . - 7 -
apply and to be observed by i t s members. The p a r t l c u l a r s now
sought by t h e P l a l n t i f f a r e n o t d l r e c t e d t o i d e n t i f y i n g or l l m l t l n g
t h e i s s u e s I f , a t t h e t r i a l o f t h i s a c t i o n , t h e
r a l s e d
by
paragraph
1 8 of
the
defence .
I t
1s
doub t fu l
Defendant would consider i t
relevant t o lead ev ldence t o e s t a b l i s h any of t h e f a c t s t h e
p a r t l c u l a r s o f w h i c h are s o u g h t t o b e l d e n t i f l e d by t h e r e q u e s t
f o r p a r t l c u l a r s . T h e s e are n o t m a t e r i a l f a c t s upon whlch the
I n s t i t u t e i s seeklng t o r e l y . I n r e a l i t y t h e P l a l n t l f f 1s a t t empt lng
t o widen the scope of Its c l a lm unde r t he gu l se o f s eek ing pa r t l cu la r s . Thls 1s not a m a t t e r p r o p e r f o r f u r t h e r p a r t l c u l a r s o f d e f e n c e . The I n s t l t u t e h a s g l v e n a number o f f u r t h e r p a r t l c u l a r s a s s o u g h t
by t h e P l a i n t l f f . The P l a i n t i f f is n o t e n t i t l e d t o t h e f u r t h e r p a r t i c u l a r s w h l c h t h e I n s t i t u t e h a s r e f u s e d t o g l v e .
Under paragraph 1 9
The l n s t i t u t e s a y s t h a t t h e P l a l n t l f f i s n o t e n t l t l e d t o
t h e p a r t i c u l a r s s o u g h t . The I s sue a r l s e s f rom the u se o f t he words
" t h e o t h e r members" con ta ined In pa rag raph 1 9 o f t h e amended s t a t e - ment of claim and the words " the severa l members" c o n t a i n e d i n
paragraph 19 of the defence . The d e f e n c e c o n t a l n s c e r t a i n
a d m i s s i o n s o f f a c t a n d r a i s e s a s i s s u e s c o n c l u s l o n s t o b e drawn
f r o m t h o s e f a c t s . F o r t h e P l a i n t i f f lt 1s a rgued t ha t t he words
" t h e s e v e r a l members" has a l l m l t l n g c o n n o t a t l o n a n d t h e r e f o r e t h e
P l a i n t l f f 1 s e n t i t l e d t o p a r t l c u l a r s t o l d e n t l f y t h e l lmited number
o f members r e f e r r e d t o I n t h e a d m l s s l o n . F o r t h e I n s t i t u t e It 1s
a rgued t ha t t he words do not have a l l m i t i n g e f f e c t b u t r e f e r t o
each and every member o f t h e I n s t l t u t e . I n my o p l n l o n , t h e
con ten t lon o n b e h a l f o f t h e I n s t i t u t e 1s c o r r e c t . The m a t e r i a l f a c t s c o n t a i n e d I n t h e a d m i s s i o n s a r e c l e a r a n d t h e p a r t l c u l a r s
s o u g h t d o n o t a s s i s t i n d e f l n l n g a n y l s s u e b e t w e e n t h e P l a l n t i f f
a n d t h e I n s t l t u t e . The P l a l n t l f f 1s n o t e r ! t l t l e d t o t h e p a r t l c u l a r s sought .
Under paragraph 2 4
The I n s t i t u t e s a y s t h a t t h e P l a l n t l f f 1s not e n t l t l e d t o
t h e p a r t l c u l a r s s o u g h t . The m a t c r l a l f a c t s upon whlch t h e P l a l n t l f f
re l ies a r e a d m l t t e d by t h e I n s t i t u t e which i ienles the conclusicns
t o be d rawn f rom those mater ia l fac t s anci as a l l e g e d by t h e P l a l n t i f f .
./E.. .
The p a r t i c u l a r s now sought by t h e P l a l n t l f f a r c n o t d i r e c t e d t o l d e n t l f y i n g o r l l m i t i n g t h e i s s u e s r a l s c d by paragraph 2 4 of t h e
d e f e n c e . F o r t h e r e a s o n s e x p r e s s e d w l t h r e s p e c t t o t h e p a r t l c u l a r s
sought under paragraph 18 of t h e d e f e n c e t h e P l a i n t i f f 1s n o t
e n t i t l e d t o the pa r t l cu la r s sough t unde r pa rag raph 2 4 of t he de fence . Under paragraph 54
The I n s t i t u t e s a y s t h a t t h e P l a i n t i f f i s n o t e n t i t l e d t o
t h e p a r t l c u l a r s s o u g h t . The m a t e r l a l f a c t p l e a d e d b y t h e I n s t l t u t e
i s t h e e x i s t e n c e o f t h e I n t e r l m A u t h o r l t y . S u f f l c l e n t p a r t i c u l a r s
have been g iven t o Iden t i fy t ha t In t e r lm Au thor i ty . The v a l l d i t y o f t h a t A u t h o r i t y may be open t o cha l l enge by t h e P l a l n t l f f . The
l e g a l e f f e c t o f t h a t A u t h o r l t y may be open t o argument. The
P l a l n t l f f knows t h e clalm belng made by t h e I n s t l t u t e and wlll not be t aken by s u r p r l s e a t t h e t r l a l . I t cannot seek by way of
p a r t i c u l a r s o f t h e rnaterlal fac t p leaded what may b e r e l e v a n t f o r
d l scovery by i n t e r r o g a t o r y . I n s c e k l n g t h e p a r t l c u l a r s , t h e
P l a i n t i f f 1 s I n r e a l l t y s e e k i n g t o c s t a b l l s h f a c t s w h i c h may a s s l s t
it i n a t t a c k i n g t h e v a l i d i t y a n d l e g a l e f f e c t o f t h e I n t e r i m
Author l ty . This 1 s not a matter a p p r o p r l a t e f o r p a r t l c u l a r s a n d
t h e P l a l n t l f f 1 s n o t e n t i t l e d t o t h c p a r t i c u l a r s s o u g h t .
Accordingly, i n my o p i n i o n , t h e P l a l n t i f f f a l l s I n Its
c la lms . The summons 1 s d l s m s s e d w l t h c o s t s t o b e t a x e d .
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