Zeng and Shiao

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FEDERAL MAGISTRATES COURT OF AUSTRALIA

ZENG v SHIAO [2007] FMCA 794
TRADE PRACTICES – Misleading and deceptive conduct – aiding and abetting misleading and deceptive conduct – breach of contract – migration agents statement of services.

Migration Act 1958 (Cth) ss.5, 29, 276(1), 276(2), 313
Migration Agents Regulations 1998 (Cth)
Trade Practices Act 1975 (Cth) ss.51A, 51AA, 51AB, 52, 74(1), 74(2), 75(B), 81

Federal Magistrates Court Legislation Amendment Act 2006 (Cth)

Codelfa Construction Pty Ltd v. State Rail Authority of N.S.W. [1982] HCA 24; (1982) 149 CLR 337
Yorke v Lucas (1985) 158 CLR 661 at 666-669

Hartnett v Migration Agents Registration Authority [2004] FCAFC 269

Applicant: WANG LING ZENG
Respondent: JASON SHIAO
File number: MLG 247 of 2005
Judgment of: Phipps FM
Hearing dates: 21 & 22 February 2007
Date of last submission: 22 February 2007
Delivered at: Melbourne
Delivered on: 25 May 2007

REPRESENTATION

Counsel for the Applicant: Mr Keon-Cohen
Solicitors for the Applicant: Jonathan Wong Lawyers
Counsel for the Respondent: Mr Kuan
Solicitors for the Respondent: Nevett Ford Lawyers

ORDERS

  1. The respondents pay the applicants the sum of $50,000.

  2. The question of interest and costs are reserved.

FEDERAL MAGISTRATES
COURT OF AUSTRALIA AT
MELBOURNE

MLG 247 OF 2005

WAN LING ZENG

Applicant

And

JASON SHIAO

Respondent

REASONS FOR JUDGMENT

Introduction

  1. The applicants, Ms Zeng and Mr Zeng, are brother and sister.  The first respondent, Mr Shiao, is a migration agent.  The second respondent is a corporation through which Mr Shiao conducted his business in Australia.

  2. In 2002, Mr Zeng, a Chinese citizen, was living in the Republic of China.  His sister, originally from China, was living in Australia as a permanent resident.  Their mother and Mr Zeng’s son were also living in Australia.

  3. Mr Zeng had applied twice for a visa to come to Australia and been refused on both occasions. Ms Zeng paid Mr Shiao’s company, $50,000 to obtain a visa for Mr Zeng to visit Australia. Mr Zeng did not obtain a visa.  Mr Shiao and his company say this is because Mr Zeng did not do what was necessary. Ms Zeng and Mr Zeng claim they are entitled to recover the $50,000.

The issues

  1. The issues are:

    a)what the agreement was between the parties, and within that;

    i)whether the written agreement between Ms Zeng and Mr Zeng and the company contained a handwritten clause written on to it by a friend of Ms Zeng, Mr Liu;

    ii)whether the agreement involved the obtaining by Mr Shiao and his company for Mr Zeng of a Malaysian passport, or whether it involved the obtaining of a Malaysian My Second Home visa and then a visa to visit Australia;

    iii)whether Mr Shiao misrepresented what his company was intending to do.

    b)whether s.313 of the Migration Act 1958 (Cth) required Mr Shiao and his company to give the applicants a statement of services;

    c)The legal consequences following the resolution of these issues.

The agreement

  1. Ms Zeng said that in August 2002 she saw an advertisement by the…

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Details
Case
[2007] FMCA 794
Decision Date

CaseChat Overview and Summary

The case of Zeng and Shiao involved a dispute over the provision of immigration assistance as defined in section 276 of the relevant legislation. The applicants, Mr. and Mrs. Zeng, alleged that the respondents, Mr. Shiao and a company, provided them with immigration assistance contrary to the statutory requirements. The respondents argued that since no visa application was made, they did not provide immigration assistance. The case was heard in a court of law, where it was necessary to determine the precise scope of "immigration assistance" and whether it could be provided before an actual visa application was made.

The legal issues in the case centered around the interpretation of section 276 of the legislation and its interaction with the definition of "migration procedure" in section 29. The court had to decide whether the respondents provided immigration assistance by preparing or advising about a visa application, even if the application itself was never submitted. The respondents argued that immigration assistance could only be provided once a visa application was made, relying on a previous case, Hartnett v Migration Agents Registration Authority. However, the applicants contended that the legislative language and the broader context of the statutory scheme indicated that the preparatory actions taken by the respondents constituted immigration assistance.

The court's reasoning was that the preparatory actions and advice given by the respondents, including discussions about the visa application, constituted immigration assistance as defined by section 276. The court found that the preparatory and advisory actions taken by the respondents fell under the umbrella of "acting or assisting in a visa application." The court rejected the argument that immigration assistance could only be provided after an application was made, holding that the legislative language and broader statutory context indicated otherwise. Consequently, the court held that the respondents had indeed provided immigration assistance.

In conclusion, the court ordered that the respondents pay the applicants $50,000. The questions of interest and costs were reserved for further determination.

Orders

Orders of the court

1.

The respondents pay the applicants the sum of $50,000.

2.

The question of interest and costs are reserved.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Section 276 defines "immigration assistance", for this case relevantly subsection (1):Immigration assistance (1)For the purposes of this Part, a person gives immigration assistance if the person uses, or purports to use, knowledge of, or experience in, migration procedure to assist a visa applicant or cancellation review applicant by: (a)preparing, or helping to prepare, the visa application or cancellation review application; or (b)advising the visa applicant or cancellation review applicant about the visa application or cancellation review application; or (c)preparing for proceedings before a court or review authority in relation to the visa application or cancellation review application; or (d)representing the visa applicant or cancellation review applicant in proceedings before a court or review authority in relation to the visa application or cancellation review application. Section 275 says ‘"migration procedure" means the law, and administrative practice, relating to immigration.’ A combination of s.5 and s.29 defines a Visa as "a permission to travel and enter Australia." In Hartnett v Migration Agents Registration Authority [2004] FCAFC 269, the Full Court of the Federal Court at [3] said of the definition of "immigration assistance" in s.276, that the term includes only "acting or assisting in a visa application", "acting or assisting in a cancellation review application", and "acting or assisting in nominating or sponsoring a visa applicant". The relevant words for this case are "acting or assisting in a visa application". The respondents argue that because the contract between the parties was terminated before Mr Zeng had applied for an Australian visa, or simply because no application was made for an Australian visa, neither Mr Shiao nor the company provided immigration assistance. They did not act or assist in a visa application because there was no visa application. The argument depends on interpreting the Full Court words in Hartnett as meaning immigration assistance can only be provided once a visa application is made. If that is correct, it means that if a migration agent prepares or helps prepare a visa application, or advises about a visa application, neither the migration agent nor the migration agent's client can know at that stage whether the obligations imposed on a migration agent in providing immigration assistance apply. If the argument is right, the obligations will apply if the visa application is eventually made, but will not apply if it is not made. That cannot be right. Elsewhere, in [56] the Full Court in Hartnett refers to "conduct in connection with the applications identified in subs.276(1) and (2)". The Full Court’s words cannot be interpreted as meaning that the application must be made. The words of the section have to have to be looked at. Whatever was involved in Mr Zeng going to Malaysia, the contract in this case, and the discussions at the meeting between Ms Zeng and Mr Shiao in Sydney, contemplated an application for an Australian visa, that is a visa application as defined by the Migration Act 1958. At the very least the contract contemplated the respondents giving Ms Zeng and Mr Zeng advice about such a visa application, and that is what happened. That is enough to meet that part of the definition contained in s.276(2).