Re Australian Federation of Construction Contractors; Ex parte Billing

The High Court of Australia considered an application for a writ of prohibition by Mr. Billing against the Australian Federation of Construction Contractors. Mr. Billing sought to prevent the Federation from proceeding with a hearing concerning allegations of breaches of its rules. The dispute centred on whether the Federation had the power to conduct such a hearing and impose penalties.

The primary legal issue before the Court was whether the rules of the Australian Federation of Construction Contractors, which purported to confer power on the Federation to discipline its members for breaches of its rules, were valid and enforceable. Specifically, the Court had to determine if these rules constituted an unlawful restraint of trade or were otherwise contrary to public policy, thereby rendering them invalid.

The Court reasoned that the rules of a voluntary association, such as the Federation, would be invalid if they imposed an unreasonable restraint of trade. In this instance, the rules allowed for the imposition of penalties, including expulsion from the association, for conduct that was not necessarily unlawful or tortious. The Court found that the rules, as they stood, were too wide and did not sufficiently define the conduct that could lead to disciplinary action. Consequently, they were held to be an unreasonable restraint of trade and therefore void. The Court made absolute the order nisi for prohibition.