Martin & Martin and Anor (No. 2)

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FAMILY COURT OF AUSTRALIA

MARTIN & MARTIN AND ANOR (NO. 2) [2014] FamCA 232
FAMILY LAW – PRACTICE AND PROCEDURE – Subpoenae objection – relevance, oppression and fishing – objection rejected.
FAMILY LAW – EVIDENCE – Expert evidence – Should the third party creditor by the wife be allowed to adduce evidence about the parties’ assets? – permission to file granted.
FAMILY LAW – LEGAL PRACTITIONERS – Client privilege – implied waiver – Can a solicitor unilaterally ignore the privilege based on an assertion of, or anticipating of, a finding of implied waiver?
Family Law Act 1975 (Cth)

Alister v R [1984] HCA 85; (1984) 154 CLR 404
Attorney-General for the Northern Territory v Kearney (1985) 158 CLR 500
Mann v Carnell (1999) 201 CLR 1
Martin and Martin (2012) 49 Fam LR 76
Papadopoulos and Papadopoulos (No 2) [2007] FamCA 1683
Spincode Pty Ltd v Look Software Pty Ltd [2001] 4 VCR 501
Woley and Humboldt (No 3) [2009] FamCA 546

APPLICANT: Ms Martin
RESPONDENT: Mr Martin
INTERVENOR: X Firm
FILE NUMBER: MLC 9829 of 2007
DATE DELIVERED: 9 April 2014
PLACE DELIVERED: Melbourne
PLACE HEARD: Melbourne
JUDGMENT OF: Cronin J
HEARING DATE: 3 March 2014

REPRESENTATION

COUNSEL FOR THE APPLICANT: Mr Ambrose
SOLICITOR FOR THE APPLICANT: Cahill & Rowe Family Law
COUNSEL FOR THE RESPONDENT: Mr Glick SC
SOLICITOR FOR THE RESPONDENT: Taussig Cherrie Fildes
COUNSEL FOR THE INTERVENOR: Mr Kirkham QC With Dr Ingleby
SOLICITOR FOR THE INTERVENOR: Nedovic & Co

Orders

  1. That all material produced under subpoenae by J Firm and K Accountants is released for inspection and copying. 

  2. That the third party X Firm has leave to file the affidavit of Mr I.

IT IS NOTED that publication of this judgment by this Court under the pseudonym Martin & Martin and Anor (No. 2) has been approved by the Chief Justice pursuant to s 121(9)(g) of the Family Law Act 1975 (Cth).

FAMILY COURT OF AUSTRALIA AT MELBOURNE

FILE NUMBER: MLC 9829 of 2007

Ms Martin

Applicant

And

Mr Martin

Respondent

REASONS FOR JUDGMENT

  1. There were two issues in this interlocutory hearing which require determination prior to the matter proceeding to a final trial.  They are:

    (a)The husband’s objections to the release of information provided pursuant to subpoenae issued by the Court at the request of X Firm who are the interveners in the proceedings; and

    (b)Whether X Firm should be permitted to lead evidence from a valuer in relation to a business conducted by the husband through a variety of corporate entities.

  2. The first of the two issues arises because of the husband’s objection to the release of the subpoenaed material upon which a ruling is required. 

  3. Before dealing with those two matters, there is also a third (and perhaps underlying) issue which relates to whether or not evidence of the principal solicitor of X Firm should be allowed into evidence at all.  The wife asserted, and the husband joined with her in submitting, that the acceptance of the affidavit into evidence…

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Details
Case
[2014] FamCA 232
Decision Date

CaseChat Overview and Summary

In the matter of *Martin & Martin and Anor (No. 2)*, heard by Cronin J, the court considered objections to subpoenas and the admissibility of expert evidence in a family law proceeding. The dispute involved the wife's claim to an equitable interest in certain assets, with a third party, X Firm, also asserting an interest arising from previous court orders. The court also addressed issues of client privilege and its potential waiver.

The primary legal issues before the court were whether objections to subpoenas issued to J Firm and K Accountants should be upheld on grounds of relevance, oppression, or "fishing," and whether the third party, X Firm, should be permitted to adduce expert evidence regarding the value of the parties' assets. Additionally, the court considered whether a solicitor could unilaterally disregard client privilege based on an assertion or anticipation of implied waiver.

Cronin J reasoned that the rules governing expert evidence, particularly Chapter 15 of the *Family Law Rules 2004*, emphasise the need to confine litigation without compromising the interests of justice. The court expressed concern that without expert evidence on asset valuation, the court might not have comprehensive information to determine the interests of justice, especially given X Firm's claim. Therefore, the court determined that the evidence could at least be filed, with its admissibility to be tested at the hearing if its relevance to the causes of action could be demonstrated. The objections to the subpoenas were rejected, and X Firm was granted leave to file its affidavit.

Orders

Orders of the court

1. That all material produced under subpoenae by J Firm and K Accountants is released for inspection and copying.

2. That the third party X Firm has leave to file the affidavit of Mr I.

Background

Background to the litigation

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Evidence

Evidence Before The Court

To adduce evidence of an expert nature, Chapter 15 of the Family Law Rules 2004 applies. Rule 15.42 provides guidance. The relevant provisions are:(a) to ensure that parties obtain expert evidence only in relation to a significant issue in dispute; (b) to restrict expert evidence to that which is necessary to resolve or determine a case; (c) to ensure that, if practicable and without compromising the interests of justice, expert evidence is given on an issue by a single expert witness… It is important to note the rule emphasises the need to confine the litigation process without compromising the interests of justice. I have concerns that there is no evidence other than what the husband and wife allege in circumstances where X Firm claim an interest because of the orders made as set out earlier. Is it open to the Court to find that the order amounted to the husband acknowledging the equitable interest of the wife? If possibly so, to deny X Firm an opportunity to present some evidence about value may mean that the interests of justice are not being met because the Court is not being given comprehensive information. Rule 15.44 says:(1) If the parties agree that expert evidence may help to resolve a substantial issue in a case, they may agree to jointly appoint a single expert witness to prepare a report in relation to the issue. Note: Subrule 15.54 (3) sets out the requirements that apply to instructions to a single expert witness appointed by agreement between the parties. (2) A party does not need the court's permission to tender a report or adduce evidence from a single expert witness appointed under subrule (1). Rule 15.45 says:(1) The court may, on application or on its own initiative, order that expert evidence be given by a single expert witness. (2) When considering whether to make an order under subrule (1), the court may take into account factors relevant to making the order, including: (a) the main purpose of these Rules (see rule 1.04) and the purpose of this Part (see rule 15.42); (b) whether expert evidence on a particular issue is necessary; (c) the nature of the issue in dispute; (d) whether the issue falls within a substantially established area of knowledge; and (e) whether it is necessary for the court to have a range of opinion. (3) The court may appoint a person as a single expert witness only if the person consents to the appointment. (4) A party does not need the court's permission to tender a report or adduce evidence from a single expert witness appointed under subrule (1). In my view, the rules as indicated in Chapter 1 are designed to ensure that justice is done for all parties but particularly that the Court provide an expeditious outcome so that justice is done. If the evidence is not permitted to be called, a party would be entitled to argue that justice was not done. In my view therefore, the evidence can at least be filed and if it can be shown at the time of the hearing to be relevant to the causes of action before the Court, it can be admitted and then tested if necessary.

Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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