Smith Kline & French Laboratories (Australia) Limited v The Secretary to the Department of Community Services and Health; v The Secretary to the Department of Community Services and Health

These proceedings concerned applications for special leave to appeal to the High Court of Australia. The applicants, Smith Kline & French Laboratories (Australia) Limited and related entities, sought leave against the Secretary to the Department of Community Services and Health. Alphapharm Pty Limited was the second respondent in one of the matters. The core dispute revolved around the obligations of the government when in possession of confidential information supplied to it, and whether a law permitting the government to use such information constituted an acquisition of property otherwise than on just terms.

The legal issues before the Court were twofold. Firstly, the extent of the government's obligation in circumstances where it receives confidential information. Secondly, the Court was asked to consider whether a statutory provision authorising the government to use such information amounted to an acquisition of property contrary to the constitutional requirement for just terms. These issues were presented as matters of substantial public importance, particularly in light of growing concerns about privacy and the potential for government data banks.

The applicants argued that the principles governing the use of confidential information by the government, especially when the government is the defendant, had not been thoroughly considered by the High Court. They contended that equitable principles of confidence and potential issues of estoppel were relevant but unelucidated in this context. The Court, however, clarified that the central question was not a broad inquiry into how the government *may* use information, but rather whether there was anything *to prevent* the government from using the information in question.