P v P

The High Court of Australia considered an appeal concerning the interpretation of section 79 of the *Judiciary Act 1903* (Cth) in a dispute between P and P. The core of the disagreement related to the application of state laws in federal proceedings.

The central legal issue before the High Court was whether section 79 of the *Judiciary Act* mandated the application of the substantive law of the Australian Capital Territory in a proceeding before the Supreme Court of the Australian Capital Territory, or if it permitted the Supreme Court to apply the substantive law of New South Wales, as it had done. This involved determining the scope and effect of section 79 in circumstances where a federal court or a court exercising federal jurisdiction is sitting in a territory.

The Court reasoned that section 79 of the *Judiciary Act* requires federal courts and courts exercising federal jurisdiction to apply the laws of the state or territory in which they are sitting, unless a contrary intention appears in a federal law. In this instance, the Court found that the Supreme Court of the Australian Capital Territory, when exercising federal jurisdiction, was bound to apply the substantive law of the Australian Capital Territory. The Court clarified that section 79 is a general provision that incorporates the relevant state or territory law, and that the Supreme Court of the Australian Capital Territory had erred in applying the law of New South Wales.

The High Court allowed the appeal, setting aside the orders of the Supreme Court of the Australian Capital Territory and remitting the matter to that Court for determination in accordance with the substantive law of the Australian Capital Territory.