Rules of the Federal Court of Australia Act 1976 1991 No. 395
EXPLANATORY STATEMENT
Statutory Rules 1991 No. 395
Issued by the authority of theJudges of the Federal Court of Australia
AMENDMENT OF THE RULES OF THE FEDERAL COURT OF AUSTRALIA
Section 59 of the Federal Court of Australia Act 1976 permits the Judges of the Court (of whom there are thirty-three (33) including the Chief Justice) or a majority of them to make Rules of Court not inconsistent with the Act, making provision for or in relation to the practice and procedure to be followed in the Court, including practice and procedure to be followed in Registries of the Court, and for or in relation to all matters and things incidental to any such practice or procedure, or necessary or convenient to be prescribed for the conduct of any business of the Court. Section 59 of the Act also provides that sections 48, 48A, 48B, 49 and 50 of the Acts Interpretation Act 1901 apply in relation to these Rules of Court made under that section as if references in those sections of that Act to regulations were references to Rules of Court.
Subsection 60(1) of the Corporations Act 1989, as amended, provides that the power to make rules of court conferred under s59 of the Federal Court Act extends to making rules of court, not inconsistent with the Corporations Law of the Capital Territory, with respect to proceedings, and the practice and procedure, of the Federal Court under that Law; with respect to matters required or permitted to be prescribed by rules under that Law, or which it is necessary or convenient to be prescribed by rules for carrying out or giving effect to the Corporations Law; and with respect to costs and rules and meetings ordered by the Court.
Subsection 60(2) of the Corporations Act provides that the Court must apply the rules of court made under s 60(1), with such alterations as are necessary, when the Court exercises jurisdiction with respect to matters arising under the Corporations Law of a State which is conferred on the Court by a law of the State corresponding to Division 1 of Part 9 of the Corporations Act of the Capital Territory. Accordingly, Order 71 of the Federal Court Rules applies to proceedings heard by the Court which arise in the exercise of jurisdiction conferred under the Corporations Law of the Capital Territory or a State.
The present Federal Court Rules came into operation on 1 August 1979. They have been reviewed regularly since then.
Rule 1
This rule provides a commencement date for the rules.
Rule 2
This rule indicates that the Federal Court Rules are to be amended by these rules.
Rule 3
This rule inserts a new provision regarding assessment procedures for costs of proceedings before the Court. It is aimed at reducing the time and cost of taxation and in providing a clear guide to parties as to the amounts they can expect to recover if awarded costs in a proceeding. There is also specific provision for mediation on costs without the necessity of preparing bills of costs. It should result in a reduction in the cost of litigation generally.
Rule 4
This rule is to standardise the time for filing an application to review a decision of a Registrar under the Federal Court Rules.
Rules 5 to 13
These rules are designed to correct a number of formal errors which were included in the Corporations Rules of Court (Order 71) introduced during the last year.
Overview
The Rules of the Federal Court of Australia Act 1976 was enacted to provide a framework for the Federal Court of Australia to make rules governing the practice and procedure of the court. The Act empowers the Judges of the Court to make Rules of Court, not inconsistent with the Act, which include the practice and procedure to be followed in the Court and all matters incidental to such practice or procedure. The Act also provides that certain sections of the Acts Interpretation Act 1901 apply to these Rules of Court. The policy objective of the Act is to ensure that the Federal Court of Australia has the flexibility to manage its own practice and procedure, while also ensuring consistency with the broader legislative framework.
The Rules of the Federal Court of Australia were amended in 1991 to address a number of issues, including the time and cost of taxation of costs of proceedings before the Court, and to correct formal errors in the Corporations Rules of Court. The amendments were made by the Judges of the Court, as permitted under section 59 of the Act, and came into operation on the date specified in the amending rules. The amendments are aimed at reducing the time and cost of litigation generally, and providing a clear guide to parties as to the amounts they can expect to recover if awarded costs in a proceeding.
Scope and Application
The Rules of the Federal Court of Australia Act 1976, as amended, apply to the practice and procedure of the Federal Court of Australia and its registries. This legislation enables the Judges of the Court, including the Chief Justice, to establish rules governing court processes, which must be consistent with the overarching Act and extend to matters incidental or necessary for the conduct of court business. The rules also cover proceedings under the Corporations Law of the Capital Territory and states, including the practice, procedure, and costs associated with such proceedings. These rules are applicable to any proceedings before the Court that arise under the Corporations Law of a State, with necessary adaptations, as per the Corporations Act. The current iteration of these rules commenced on 1 August 1979 and have undergone regular reviews, with the recent amendments focusing on refining cost assessment procedures, standardising the time for reviewing a Registrar's decisions, and correcting formal errors in the Corporations Rules of Court.
Key Provisions
The Rules of the Federal Court of Australia Act 1976, as amended by these rules, set forth several key provisions regarding the operation and administration of the Federal Court of Australia. Under Section 59 of the Act, the Judges of the Court are empowered to make Rules of Court, which must not conflict with the Act and must cover practice, procedure, and all matters necessary for the Court's business. This includes establishing rules for proceedings in the Court's registries, as well as for costs and court-ordered meetings. Importantly, these rules apply to matters arising under the Corporations Law, as outlined in Section 60 of the Corporations Act 1989.
The new rules impose specific obligations on parties and entities involved in proceedings before the Federal Court. For instance, Rule 3 introduces new assessment procedures for costs, aimed at streamlining the taxation process and reducing litigation costs. This rule also includes provisions for mediation on costs, which can help parties avoid the need to prepare detailed bills of costs. Rule 4 establishes a standardised timeframe for filing an application to review a decision made by a Registrar under the Federal Court Rules. This ensures consistency and predictability in the review process. Additionally, Rules 5 to 13 correct various formal errors in the Corporations Rules of Court (Order 71), ensuring the rules are accurate and enforceable.
Failure to comply with the provisions of these rules can lead to various consequences. While the rules themselves do not specify detailed penalties for breaches, breaches of court rules can generally result in penalties under the Federal Court Act. Such penalties may include fines, costs orders, or other sanctions deemed appropriate by the Court. The severity of these penalties can depend on the nature and severity of the breach, with the Court having broad discretion to impose suitable sanctions. Parties are therefore required to adhere strictly to the rules to avoid any adverse consequences.