L.K. Jewellery Investments Pty Ltd v Percy Marks Pty Ltd

[1980] FCA 20

P v z c t i c c s

2 .

The f i r s t f i ve r spondcn t s a r e compan ies cngagcd i n what. 15

c a l l e d t h e " d u t y f r e e " t r a d e i n Syr?ney I n which Soorls a r e so l2 by

r e t a i l t o persons ehout t.o d e p a r t from P u s t r a l l a a n $ , p r o v j d e d r-11

appropriate proce(111re i s fnllowcei, It i s p o s o i h l c for t h e ~ c c r ! s

t o be s o l d wi thou t l ~ a b l l ~ t y for customs d u t y a n d a p p a r e n t l y

sa le s t a x .

The a p p l j c a n t i s a r e t a i l e r of h igh c l a s s ~ e w c l l r r y a n d

a rnin@r p a r t of I ~ S b u s i n e s s i s I n t h e d u t y f ree t.rac3e wi.th

p e r s o n s s h o r t l y t o d e p a r t from the in te rna t . lonP1 airport a t

Sydney.

The most s a t i s f a c t o r y method of o p e r a t i n g i n v o l v e ? ?

p r o c e d u r c I n w h i c h a n i n v o i c e is a t - t a c h e d t o t h c p a c k a ~ e

c o n t a m i n g t h e d u t y free goods a t t h e point. o€ sale and t h c qcc,dc

a r e s j q h t e d and t h e i n v o i c e d e t a c h e d a t t h e a i r p o r t when t h e

p s s e n g e r i s d e p a r t i n q from P u s t r a l i a . r u r i n q t h e c o u r s e cf t h c

h e a r i n g t h l s p r o c c d u r c of d e t a c h j n q i n v o l c e s was c a l l e c 7

"p luck ing" the invo lce and I have adopter1 thc sane cour se j n t h l s

judgment. The "plucVer3" i nve icc had t.0 be forwarr'ecl t o t h e

Bureau of Customs.

The o p p o r t u n i t y of eng?qing i n t h e ?vt.y f r c r trade

depends upon a p e r m i s s i o n b e l n g g i v e n b y t h e Rt!reau of Cus tQ- :ns

u n d e r t h c p r o v i s l o n s of s . 4 0 A A of t h e CL.stov.'G Act 1901.

3 .

The s i x t h respondent was inco rpora t ed on 10 June 1978 c's

a company l i m i t e d by gua ran tee for t h e p u r p o s r of a c t i n ? a s agc>nt

a t the a i r p o r t t o p lnck l nvo ices wh ich had bcen a t t ached t o koCl1

l s rge and small packages c.f d u t y free gooLk. The appl ic?nt.

commenccd business i n a b o u t J u l y 107P and f o r some t ime maclc I1sc

o f s e r v i c e s p r o v i d e d by P.F. Flonded Warctho~~scs Pty. Ltd. t o

c o l l c c t t h c r e l e v a n t ~ n v o i c c s a t t h e a ~ r f o r t and paid a f c e o f

$625 p e r month.

On 2 November 1 9 7 8 t h e a p p l i c a n t s c n t a t c l c x t o t h c

f i r s t a s s i s t P n t s e c r e t a r y ( O y e r a t l o n s R u r e a u of Customs) a s k ~ n q

whether t11at Pcyartment would g r a n t perm] s s l n n t o onr of t h e

a p p l i c a n t ' s r e p r e s e n t a t i v e s t o p l u c k t b e i n v o i c e s f r o m t h e goorls

of a p a r t i c u l a r c u s t o m e r who wcls t o d e p a r t from A u s t r a l ? ? I>y a i r

t he nex t day . The C e p a r t m c n t r e y l > r d t h a t t h i s r e a u c s t v a s

o u t s i d e t h e terms of Custom' S permission which ad been isqucd

and so c 0 1 1 1 c ~ n @ t he apyroved. Ilp t o t b i S timc i n v o i c e s bad been

p lucked by r ep resen ta t ives of t w o groups rlal:ir!ly I'own Tolvn Puty

!

Free Pty . Itd. and I?. F. Ronded Warehouscs Pty. L t d . I?owrvpr,

P

d ix ing 1977 t he R u r e a u of Cus toms had exyresscd d i ssa t l s fac t lon

w i t h t h e s y s t e m of r c c o v e r l r g i n v o i c e s a n d L F O U ~ ~ I ~ . t.0 jnprovc t1-f .

1 L

p rocedurc w h l c l ~ was i n operation and, w ~ t l : this i n vicw, it. hacl 3

i

number o f discussions w i t h r c p r e c c n t a t i v e s cf pcr sons c,nqi.'qcc1 I n

i

t h e c7uty f ree t r p d c . I t stems c lea r Cha t ?t l e a s t i n t h c l a t t e r

p a r t of 1077 and t h e e a r l y p a r t of 197P p r r s o n s ir Cbc! t ra r ic wcrc

l

t x m q t o l d a t v c r l o u s r r e e t i n q s , I n suhrtancc. , thai the Pcpartmcnt

i

4.

of Transpor t w o u l d n o t t c l e r a t c t h e placement r~f more thnn one

d u t y f ree d o c k e t " p l u c k e r " a t w h ? t h a s been callcc7 " a p o i n t of no

r e t u r n " . F. p o i n t of n o r c t u r n referred t o wa9 a par t from \:hich

i n t c n d i n q p a s s e n g e r s c o u l d co t r c t u r n t o t h e p u h l > c p a r t of t h e

a i r p o r t and jt was an a r e a s u l t a h l c t o the n u r w u of ('ustoms for

t h e p l u c v i n g of d o c k e t s .

The a p p l i c a n t ' s e v j d e n c c was t h a t a t t h c time t1.c

l n t e r l o c u t o r y i n j u n c t l o n w a s g r a n t e d t h e s j x t h r e s p o n d e n t woulc?

n o t p e r f o r m t h e t a s k of removing involces for anyone otl7f.r than a

member ancl t ha t memhersh ip i nvo lved t h e payncn t o f fees of

$16,671 per annum for any ccmrany wlth one F t o r e i n Vew South

Walcs i r r e s p e c t i v e of t h e number of p a c k e t s from which i n v o j c e s

had t o bc d e t a c h e d a t t h e a i r p o r t .

I n p a r t j c u l a r c o n t r a v e n t i o n s of s s . 4 5 and 45',A w p r e

a l l e g e d by the app l i can t . Argumen t s were advznceci a l s o t o

support allegations of contraventions of s s . 45E and 4 6 .

After evidcnce had bccn g j v c n o n a number of P a p s thct

a p p l i c a n t was g j v e n l c a v e t o re-@pen i t s c a s e t o call a Mr.

Langford who was t h e director, h'cw South l 'a les reg ion , of t h e

Depart-mcnt of T r a n s p o r t . The a p p l i c a t i o n t o re-cycn arcs? out of

s t a t r m c n t s g i v e n i n e v j d e n c c ' by ?-'r, Pcbrker, a n ofil.rer of t h c

l3urenl1 of C u s t o m s , whlch <S p a r t of t1.c J'epartmcnt of D u s ~ n c ~ . s

and C o n s u m e r E f f a i r s . Y r . Parker w a s c;illccl by t h e r e s p n d ~ n t s .

J n c h i e f , i n glving Evidence of a m c v t l n q of persons r'ngaqccl i n

5.

t h e d u t y f r p e t r a d e , on 1 Pecember 1 9 7 7 , h e s a i d t h a t s t t h ? t

meet ing a represent-al IVC cf tbe Pepartn!cnt of Transpor t exprcssr?

t h e v i e w t h a t t h a t d e p a r t m e n t would n o t t o l r r a t r t h e p l z c e n i c n t of

more than one docPeC " p l u c k e r " a t a p o i n t o f ro r e t u r n a n ? t h a t

a t t h e m e e t i n g i n February 197P t h c r e p r e s e n t a t j v e cf t h e

Pepartrnent of Transpor t had qa in said t .hat an ?rranqonent

i n v o l v i n g l o c a t l n n more tban o n c c7ockct "p luckc r" ~n tY,e t h r o a t

of t h e a l r p o r t was n o t a c c e p t a b l e t o 1t. Y r . Pa rke r alsc said

t h a t a t t h a t m e e t i n s h e s t r e s s e d h i s D e p s r t m c n t ' R v iew tha t

docket plucl . inT m u s t he c a r r i c d out b y o n e s l n a l e ,'c~rcy or!

b e h a l f of t h e i n d u s t r y . I t a p p e a r s t h a t s o m w h a t l a t e r t h e

r rpa r tmen t of Transpor t took a d i f f c r e n t a t t i t u 3 e c m c e r n ~ n ~

d o c k e t p l u c k e r s . I n c r o s s e x ? m i n a t ~ c n Yr. Parker sajr' t h a t li

permlsszon could be o h t a i n e e f r o n the rcprlr tmcnt of Transport f n r

a r e p r c s r n t a t l v e 05 t h e a p p l i c a n t t o e n t e r t h e " t h r o a t " , wkl(-h

was a p o i n t of no r e t u r n , t h e P u r e a u cf C u s t c m s h a d no olN]c,ctlon

t o the p luck lno of P o c k e t s b y t h a t r e p r e s e n t z t i v f ~ n s l ( l e t h e

t h r o a t . S u b s e o u e n t l y t h e a p p l i c G n t c a l l e d Mr. Langfcr~-d wFc; s a i d

t -hat	the	Departmrnt	of	Transpor t . ,	wh ich	con t ro l l cc l	t he	t ?~ ro ; t	i
i

a r e a , w o u l d g r a n t pcrnlssion t o a p e r s o n t o p l u c k c3ockr.t:. on i

b e h a l f of a p p l i c a n t t h e p r o v i r l e d P c p a r t p c n t t b e of fuC:tcns i

approvcd ancl t h e pcrson noninz ted t o pluc'f t h e c7cckel:- hac! a 1

s e c u r i t y	c l e a r a n c e	and	pasllengers	r.;ls=lrq	t b r o u q h	t b c	h r o a t	!
i

w0111cl	not	a f f e c t e d .	be	a d v c r s l e y	I
L

A f t e r t h i s evj(qence Tcnlor col?nseI for t2-e i lpppl lca~t

l

subnlt.tec! t h a t t h e n a t t e r mighL bc rrsolvec! i f approvc'l \ w r e I

6.

granted hy bo th repar tmcl l t s t o a r e p r e s e n t a t i v e o f t h e z p p l i c a n t

i

I

t o p luck docke t s i n t h e t h r o a t a r e a a n d t h a t t h c c a s e s h o u l d h?

adjourned u n t i l LL c o u l d h e a s c e r t a i n e d w h e t h e r t h e r e n u i s i t c

i

consen t s cou ld be o h t a l n e d . S e n i o r c o u n s e l f o r t h e r e s p o r s e n t s

I

d i d n o t a g r e e t o t b i s c o u r s e bllt s:ukmltted t h a t h e p p l i c a n t

could seek t o witFc7raw the p roceed ings and p a y t h e r e s p o n d e n t s ‘

costs. T h e r e a f t e r t h e r e s p o n 2 e n t s c a l l e d some fu r the r ev l r ! cnce

and t h e n a t t e r was a d l o u r n e d f o r a P d r e s s e s . when t h e m t t p r

resumed some t i m e l a t e r 2 copy of a l e t t e r from the r l?par tmcnt of

Transpor t was t ende red by c o n s e n t . J n t h l s l e t t e r p c r m ~ s s ~ o n was

g i v e n f o r t h e a p p l i c a n t t o p luck docye t s i n the t h r o a t a r e a of

t h e a i r p o r t . J t w a s e s t a b l i s h e d t h a t a t t h a t t ~ m e t h e r e vas

no th ing t o p r e v e n t h e “pp1 l can t hav ing docke t s p luck rd by a n

?gen t or employee of i t s c h o i c e a t t h e a i r p o r t i n a way wh2ch v a s

E a t l s f a c t o r y b c t h t o t h e i3urpau c f C u s t o m s anc7 the Feppr!n?pt c f

T r a n s p o r t . S e n i o r c o u n s e l for t h e appl ~ c o n t t h e n abanc:oned any

c l a i m f o r an in lunc t i cn o r dan .qes bu t soug l - t a n order f o r c o s t s ,

o r t h a t n o o r d e r be mase a s t o costs, based on a s l l t , n i s s i o n t h a t

i n r e l a t i o n to c o s t s I shoulc? have r qs rd to \%bat wi1s thc

F o s i t l o n when t h e p r o c e e d i n g s w e r e i n s t i t u t e d r a t h r r t h a n t o tF.c

p o s i t i o n a t t h e t i n c o f ny Iudgnent .

The o n l y l - s u e f o r mc t o d e t c r m j n e i s i n r e l a t ~ c n t o

c o s t s . T h e r e s p o n d e n t s s o u g h t t b . c i r costs cf # ? l 1 t h e

p roceed ings . J t was coml-on nrounrl, a s inhecd I t m u s t 1 ~ ~ 1 v e t.(a(m,

t h a t t h e r0111-t had n o 3 u r i s d l c t j o n t o ? r e n t a n i n j u n c t l n r unlcss

a t t h e t i n e whcn t h c o r d c r \*’as made circun:.t33nccs exlr,t.cd \:h~ch

1 .

j u s t i f i e d t h a t order ( s c r -- T r a d e P r a r t l c e s C ~ ~ m i . s s ~ o n v . P i l r c t s -

1	(1978) 3 2	F.L.P.	734	a t p.241).	P,asjc t o t h e	a p p l i c a p t ' s	c a r e
!

was t h e proposition t h a t it wa5 n o t p o s s l h l c f o r t h c a p p l i c a n t t o

l

a e t i t s invoices p lucked o ther than t l7 rough th r s i x t h dcfcndr .n t .

Even I f t h i s hacl been t h e p o s i t i o n when t.hc p rocc rd ings wcr r

comnenced it was n o t t h c p o s j t i o n a t t h e t i m e o f t h e a d d r e s s e s .

There I S no s u o g e s t l o n t h a t , lf any such chpncrc had cccnrrrcl, iC

was d u e t o a n y a c t o f any of t.he r e sponden t s and i t cotlld only

h a v e a r i s e n d u e t o a change af a t t i t u d e , i f i n d e c ? t h a t wrrs

changed, by one or nore Covernmental Prpar tncnts . Thls Cour t has

j u r i s d l c t j o n c o n f e r r e d i n It by s . 4 3 of t1.e Fcc7c.ral C c v r t of

A u s t r s l ~ a A r t 1976 t o award cos t s a r d , c x c e p t a s pr@v]?.ed by any

o t h e r Act, " t h e awzrd of costs i s i n t h e d i s c r c t l o n of t h c C o w t

o r Judcje" . The re a r c n o r e l e v a n t p r o v i s i o n s o f a n y o t h e r l'rt.

I c o n e i d c r t h a t I shoc1.d follow t h e view exp-esse? by

t h e ITousc of Lords i n C o n ? l d C a ~ p b e l l F. Co. L t d . v . P n l l ? P 119771

A . C . 732 . A t pp. POO-013 V i s c c u n t Cave d e a l t w i t h t h e q u c s t l o n

of t h c a w a r r l l n g of c o s t s t o a s ~ ~ c c e s s + u l l i t i q a n l . and djscussc?

l-he views cxpresscd i n P i t t e r v. Coc?frry [ l a 2 0 1 2 K . R . 4 7 . A t p.

011 t h e Lord C h a n c e l l o r s a i d t h a t t h e t r l l e v i e w w a s s u b s t . a n t i ? l l y

tha t exp res sed by Lord 7tcrng7ale I n a passage j n his ~ u d q n c n t j n

R j t t c r v . - Gcrlfrey, cuyra. Thc passage quo l rd i s a t

p . 809 and i n r l udcs the foIloLring:

" R u t t h e r e 1s s u c h a s e t t l e d p r a r t l r e of

t h e Collr tc t h a t i n t h c a h s e n c c rf srcci .?]

c i r c u r n s t a n c c s a c u r c e s s f u l 11Cic!ant

s h o u l d r e c e i v r hjs coi:ts, t h a t i t i s

n e c e s s a r y t o s h o w some q r c u n d for

e x e r c l s i n ? a S j s c r r t l o n by r c f ~ b i n q a n

o r d r > r w h i c h v ,oul r l nlve them t o h i m . T h c

d i s c r e t i o n m u s t be j u d ~ c j a l l y e x c r c i s d ,

a n d t h e r e f o r e t b c r e m u s t be some grocn( ' s

for i t s e x e r c j se , f o r a + I s c r e t ~ o n

e x e r c i s e d	on	n o	g r o u n d s	c a n n o t	hr
j u c ' j c j a l . "

T was n o t rcferrel! t o ? n y c a s e whi.ch would support t h e

a p p l i c a n t ' s s u b m i s s i o n o n costs. I t i s appropriate t o notc t h a t

I n s u b s t a n c e t he a r p l i c a n t d i s c c n t . i n u e d t h e a c t i o n I n the sense

t h a t i t s o u g h t n o r e 1 l e f . llag i t d i s c c n t . i n u e d t h e a c t l v n u n d e r

t h e H i g h C o u r t P u l e s , w h i c h wrre t h e r e l e v a n t rt?le.s at. t h e r l a t c

of t h e c o n n e n c e m e n t of the a c t i c n , D r d e r 2 7 r. 1 w o u l d h a v e

a p p l i e d u n d c r w h j c h t h e a p p l i c a n t w o ~ ~ l c l h a v e bcen r e o u i r d t o FJY

t h e r e s p o n d e n t s ' costs. I f t h e C o u r t h z d s e e n f l t t o orc le r unc ier

O r d e r 64 t h a t t h c p r e s e n t F e d e r a l C o u r t P u l e s shoulc! a p p l y t h e n

u n d e r Orc!cr 22 r . 2 , the applicant would hzve r c q c i r e d the l ezve

of t h e CoLl r t t o d i s c o n t l n u c .

I can see n o r e a s o n why t h c a p p l i c a n t s P o u l d n o t rcry t h e

costs of t h e r e s p o n d e n t s i n c l u d l n q t h e r e s e r v r d costs of t h e

l n t e r l o c u t o r y	p r o c e e d i n g s .	T h e	r	s p o n d e n t s	h a v e	hcrn	w h o l l y
s u c c e s s f u l .

One o t h e r m a t t e r rcm?jn.; f o r c o n s l ( 1 e r a t j o n . F f t r r T had

i n d i c a t e d t h a t I c o n s ~ c q e r e d t h c a p y l i c a n t v a s e n t i t . l r ~ d t.o

i n t c r l o c u t o r y r e l l e f t?lc question of t h e t p r m s of t h z t r e l i r ? waci

c o n s ~ d c r e d . U l t . i m a t e l y e n u n d c r t a k i ~ o was q l v c n by tbr a p y l ~ c a n t

w h l c h i n c l u ? c d t h e f o l l o w l n q :

-.

. .

" . . . i f i t Pc a d ] ~ + ? d t h a t t h c a p p l ~ c a n t

i s n o t e n t l t l e c q w i t h o u t t a k i n ? L I P

m r n b e r s h i p t h e n = i x t h r e s p o p d e n t t o

h a v c i t per form s e r v l c e s for t h e

"pp1 i c a n t , t h r a p p l j c a n t WI 11 p a y . . .tc

t h r s l x t h r e s p o n d e n t . . . "

!

t h e c o s t s ,

l n c l

u d i n g

r c s e r v c c !

costs,

of

t h e r ~ s p o n d e n t s .

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