Meghla v Prostitution Licensing Authority - [2021] QSC 320

SUPREME COURT OF QUEENSLAND

CITATION:

Meghla v Prostitution Licensing Authority [2021] QSC 320

PARTIES:

MANJOT SINGH MEGHLA

(applicant)

v
PROSTITUTION LICENSING AUTHORITY

(respondent)

FILE NO/S:

BS No 13564 of 2021

DIVISION:

Trial Division

PROCEEDING:

Application

ORIGINATING COURT:

Supreme Court at Brisbane

DELIVERED ON:

30 November 2021 (ex tempore)

DELIVERED AT:

Brisbane

HEARING DATE:

30 November 2021

JUDGE:

Martin J

ORDER:

1. The decision of the respondent dated 4 November 2021 that the applicant’s brothel licence be suspended for a period of 12 months from midnight on 3 December 2021, be suspended until final determination of this proceeding or further earlier order.

2. Costs are reserved.

CATCHWORDS:

EQUITY – EQUITABLE REMEDIES – INJUNCTIONS – INTERLOCUTORY INJUNCTIONS – where the applicant seeks an order that the respondent’s decision to suspend his brothel licence for 12 months be suspended until the final determination of the statutory order of review – where the parties agree that there is a prima facie case – where the applicant argues that the balance of convenience favours the status quo because the suspension of the licence will bring about the closure of the brothel, the applicant is the guarantor of the lease of the premises and there is a contract for the sale of the business – where the respondent argues that is an inevitable consequence of a suspension - whether the balance of convenience favours a suspension of the operation of the decision to be granted

Prostitution Act 1999, s 26, s 27B

Australian Leisure & Hospitality Group Ltd & Ors v Chief Executive, Department of Employment, Economic Development and Innovation & Anor [2009] QSC 354
Minister for Immigration, Local Government and Ethnic Affairs v Msilanga (1992) 34 FCR 169
Owen-D’Arcy v Chief Executive, Queensland Corrective Services [2021] QSC 273

COUNSEL:

CA Jennings QC for the applicant

VG Brennan for the respondent

SOLICITORS:

Nyst Legal for the applicant

McInnes Wilson Lawyers for the respondent

The applicant holds a licence to conduct a brothel under the Prostitution Act 1999. On 6 September this year he was charged with multiple offences concerning the possession and supply of and trafficking in a dangerous drug, unlawful possession of weapons, and contravening a condition of that brothel licence, among other things.

Section 26 of the Prostitution Act empowers the respondent to take disciplinary action against a licensee in defined circumstances. Those circumstances include if the licensee, “has been charged with or convicted of an offence in Queensland or elsewhere”. One of its powers is to suspend the licence.

On 27 September this year, the respondent served the applicant with a disciplinary inquiry notice under s 27B of the Act setting out grounds for disciplinary actions referring to some of the charges against the applicant, annexing those charges to the notice, and inviting the applicant to make submissions about the charges.

On 15 October this year, the applicant through his solicitors provided written submissions in response to the notice given by the respondent. The submissions are some eight pages long together…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2021] QSC 320
Decision Date: 30 November 2021 (ex tempore)

CaseChat Overview and Summary

The case of Meghla v Prostitution Licensing Authority involved a dispute where the applicant, Meghla, sought an interim order to suspend the Prostitution Licensing Authority’s decision to suspend her brothel licence for 12 months. The decision was due to take effect from midnight on 3 December 2021. Both parties agreed that there was a prima facie case for the statutory review, and thus the central issue was whether the balance of convenience favoured suspending the operation of the decision until the final determination of the review. Meghla argued that the balance of convenience favoured maintaining the status quo, as suspending the licence would result in the closure of her brothel, which would have significant financial repercussions. She was the guarantor of the lease of the premises and had a contract for the sale of the business, which would be adversely affected by the suspension. The Licensing Authority countered that the closure of the brothel was an inevitable consequence of the suspension and did not impact the balance of convenience.

The court considered the evidence and arguments presented by both parties. It assessed the potential harm that would result from the suspension of the licence versus the harm that would occur if the decision was not suspended. The court found that the balance of convenience favoured the applicant, as the financial and contractual consequences of the suspension were significant and would irreversibly impact the applicant’s ability to sell the business and maintain the lease of the premises. The court held that the potential harm to the applicant outweighed any benefit to the Licensing Authority from enforcing the decision immediately.

As a result, the court granted the interim order, suspending the operation of the Licensing Authority’s decision until the final determination of the statutory review. The court reserved costs for later determination. This decision underscores the importance of weighing the balance of convenience in interlocutory injunction cases, particularly where significant financial and contractual interests are at stake.

Orders

Orders of the court

1. The decision of the respondent dated 4 November 2021 that the applicant’s brothel licence be suspended for a period of 12 months from midnight on 3 December 2021, be suspended until final determination of this proceeding or further earlier order.

2. Costs are reserved.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.

CITATION:	Meghla v Prostitution Licensing Authority [2021] QSC 320
PARTIES:	MANJOT SINGH MEGHLA (applicant) v PROSTITUTION LICENSING AUTHORITY (respondent)
FILE NO/S:	BS No 13564 of 2021
DIVISION:	Trial Division
PROCEEDING:	Application
ORIGINATING COURT:	Supreme Court at Brisbane
DELIVERED ON:	30 November 2021 (ex tempore)
DELIVERED AT:	Brisbane
HEARING DATE:	30 November 2021
JUDGE:	Martin J
ORDER:	1. The decision of the respondent dated 4 November 2021 that the applicant’s brothel licence be suspended for a period of 12 months from midnight on 3 December 2021, be suspended until final determination of this proceeding or further earlier order. 2. Costs are reserved.
CATCHWORDS:	EQUITY – EQUITABLE REMEDIES – INJUNCTIONS – INTERLOCUTORY INJUNCTIONS – where the applicant seeks an order that the respondent’s decision to suspend his brothel licence for 12 months be suspended until the final determination of the statutory order of review – where the parties agree that there is a prima facie case – where the applicant argues that the balance of convenience favours the status quo because the suspension of the licence will bring about the closure of the brothel, the applicant is the guarantor of the lease of the premises and there is a contract for the sale of the business – where the respondent argues that is an inevitable consequence of a suspension - whether the balance of convenience favours a suspension of the operation of the decision to be granted Prostitution Act 1999, s 26, s 27B Australian Leisure & Hospitality Group Ltd & Ors v Chief Executive, Department of Employment, Economic Development and Innovation & Anor [2009] QSC 354 Minister for Immigration, Local Government and Ethnic Affairs v Msilanga (1992) 34 FCR 169 Owen-D’Arcy v Chief Executive, Queensland Corrective Services [2021] QSC 273
COUNSEL:	CA Jennings QC for the applicant VG Brennan for the respondent
SOLICITORS:	Nyst Legal for the applicant McInnes Wilson Lawyers for the respondent