Safetycare Australia Pty Ltd v Australian Trade Commission

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

VG 645 of 1997

BETWEEN:

SAFETYCARE AUSTRALIA PTY LTD
FIRST APPELLANT

VIDEOTRAIN PTY LTD
SECOND APPELLANT

AND:

AUSTRALIAN TRADE COMMISSION
RESPONDENT

JUDGES:

HEEREY, TAMBERLIN AND SUNDBERG JJ

DATE:

1 SEPTEMBER 1998

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

This is an appeal from Finkelstein J who dismissed an appeal from the Administrative Appeals Tribunal (AAT) against a decision under ss 19 and 38 of the Export Market Development Grants Act 1974 (Cth) to limit the combined export grants to the appellants to $250,000 for the 1994 year.

The factual background and relevant details of the legislation are set out in his Honour’s judgment.

We agree with his Honour that it was open to the AAT to find, as a matter of fact, that the establishment of Videotrain’s management training video business and its expansion into the export market constituted an “act” which had the effect of “transferr(ing) or re-arrang(ing) a business activity” of SafetyCare, within the meaning of s 38(2) and that a substantially similar activity was being carried on by Videotrain as a result of an “other business arrangement” within the meaning of s 19(1)(b).

The question was one of characterisation. The AAT saw the core activity of each company as being “research, development and production of training material” and Videotrain’s export venture as “merely reflective of a re-arrangement of potential topics to which research, development, production and marketing can be applied”. Given the close practical connection between the two companies in terms of ownership, management, location of premises and format of the videos themselves, the AAT’s conclusion was clearly open as a matter of fact.

The appeal will be dismissed with costs.

I certify that this and the preceding page are a true copy of the Reasons for Judgment herein of the Honourable Justices Heerey, Tamberlin and Sundberg

Associate:

Dated: 1 September 1998

Counsel for the Appellants: Mr PJ Hanks

Solicitor for the Appellants: Home Wilkinson & Lowry

Counsel for the Respondent: Ms D S Mortimer

Solicitor for the Respondent: Australian Government Solicitor

Date of Hearing: 1 September 1998

Date of Judgment: 1 September 1998

CaseChat Overview and Summary

Safetycare Australia Pty Ltd and Videotrain Pty Ltd (collectively, the appellants) appealed against a decision of the Administrative Appeals Tribunal (AAT) that limited their combined export grants under the Export Market Development Grants Act 1974 (Cth) to $250,000 for the 1994 year. The Federal Court of Australia was asked to review the AAT’s decision. The AAT had found that the establishment of Videotrain’s management training video business and its expansion into the export market constituted an "act" which had the effect of transferring or rearranging a business activity of SafetyCare. The AAT also concluded that a substantially similar activity was being carried on by Videotrain as a result of an "other business arrangement".

The court needed to determine whether the AAT's findings were legally sound. Specifically, the court had to consider whether the AAT correctly characterised the activities of the appellants under the relevant provisions of the Act. The court examined the nature of the business activities of both companies and the relationship between them. The court also assessed whether the AAT's conclusion that the appellants' activities constituted a transfer or rearrangement of a business activity was supported by the evidence.

The court found that the AAT’s characterisation of the appellants’ activities was legally sound. The court agreed that the core activity of both companies was the research, development, and production of training material. The court accepted that Videotrain’s export venture was a reflection of a rearrangement of potential topics to which research, development, production, and marketing could be applied. Given the close practical connection between the two companies, including ownership, management, location of premises, and format of the videos, the court concluded that the AAT's findings were clearly open as a matter of fact. The appeal was dismissed with costs.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY	VG 645 of 1997

JUDGES:	HEEREY, TAMBERLIN AND SUNDBERG JJ
DATE:	1 SEPTEMBER 1998
PLACE:	MELBOURNE

Counsel for the Appellants:	Mr PJ Hanks
Solicitor for the Appellants:	Home Wilkinson & Lowry
Counsel for the Respondent:	Ms D S Mortimer
Solicitor for the Respondent:	Australian Government Solicitor
Date of Hearing:	1 September 1998
Date of Judgment:	1 September 1998