Paterson v MacPherson; Zacharakis v MacPherson

The case of *Paterson v MacPherson; Zacharakis v MacPherson* involved a challenge to the validity of Terms of Reference issued by a Minister for an investigation into a local council. The plaintiffs, Paterson and Zacharakis, sought judicial review of these Terms of Reference, arguing they were beyond the scope of the Minister's statutory power and that the investigation process lacked procedural fairness. The matter came before the Supreme Court of South Australia, presided over by Doyle CJ, White and Peek JJ.

The central legal issues before the Court were whether the Minister's Terms of Reference for the investigation were authorised by the relevant legislation, specifically section 272 of the *Local Government Act* (LGA), and whether the process adopted by the Minister and the investigator breached the principles of procedural fairness. The plaintiffs contended that the Terms of Reference permitted an investigation into matters that the Minister had no reasonable belief existed, thereby exceeding the statutory authority granted.

The Court reasoned that the Terms of Reference, as initially drafted, purported to authorise an investigation that extended beyond the matters in relation to which the Minister had demonstrated a belief for the purposes of section 272(1) of the LGA. Specifically, the authorisation to investigate contraventions of "any provision at all of the LGA" was considered to be beyond power. However, the Court found that the Terms of Reference could be read as limited to the specific contraventions and circumstances identified by the Minister in her letters of 2 July 2009 and 22 July 2009, pursuant to section 13 of the *Acts Interpretation Act 1915* (SA). The Court also noted that while the investigation was primarily directed at the conduct of the Council, it did not exclude an investigation into the conduct of individuals, though drawing this line would be difficult. The Court concluded that the Minister had complied with the obligation imposed by section 272(2) of the LGA.