Recusal
13 The applicant says that she is entitled to appeal the Decision of 29 June 2016 on the basis that senior member should have recused herself from adjudicating the directions hearing on 14 June 2016. As a result of not recusing herself, procedural fairness was denied by the senior member in hearing and deciding the case. Furthermore, the applicant says, natural justice was denied by the Tribunal through procedural errors in the findings.
14 The applicant refers to s 21A of the AAT Act, which was in effect at the time in which she first made a complaint about the senior member. This provision of the AAT Act, now replaced by s 19D, provided for the reconstitution of the Tribunal in certain circumstances, such as upon the request of a party to the proceeding.
15 The applicant points to a directions hearing on 10 October 2014 by the senior member in which the applicant says the senior member placed more weight on meeting the Tribunal's statistical requirements than on a medical report sent directly to the Tribunal by the applicant's treating doctor. The applicant then wrote to the then Deputy President of the Tribunal objecting to the senior member's continued involvement with her case. As a result of that letter there was a directions hearing on 11 December 2014 held by the then Deputy President who said that since a medical report had been received by the Tribunal, there was no reason why 'postponement' should not be granted. He also said that he did not wish to discuss the question of the senior member, which the applicant regarded as 'diplomatic handling of an awkward situation'. The senior member then resumed the carriage of the applicant's matter before the Tribunal.
16 The applicant, again, wrote to the then Deputy President of the Tribunal on 6 January 2015 complaining about the continued involvement of the senior member. A directions hearing was held on 22 January 2015 by the senior member and in which the applicant says the senior member apologised to the applicant for her 'error of judgement'. The applicant thanked her for her apology, but stated that she still wished for someone else to hear her case.
17 Subsequently, the applicant's case was heard by Dr Kendall. The applicant says she was therefore 'alarmed' when at the directions hearing on 14 June 2016, she discovered that it would be convened by the same senior member. She says she expressed her 'surprise and consternation'. The applicant says that she expected the directions hearing to be only about nominating a suitable date for the hearing of the case remitted by this Court following the First Decision. When the applicant expressed her concern to the senior member at the directions hearing, she stated that she did not wish the senior member to hear the case remitted by this Court. She says that the senior member's response was that she 'can't promise but would try'. She says that the senior member indicated that the Perth Registry was a small registry but attempts would be made to accommodate the applicant's request. The applicant goes on to say that the senior member was therefore well aware of the applicant's previous objections and continuing objections to her adjudicating her case. The applicant says it would have been appropriate for the senior member to have recused herself, but she did not.
18 The applicant points to the content of [89]-[90] of the First Decision and says that to have complied with the senior member's coercion would have put the applicant at a marked disadvantage in presenting her evidence. This was because Barker J had said that work needed to be identified before the question could be answered whether or not an applicant is prevented by reason of impairment from performing such work.
19 The applicant contends that because the senior member apologised to the applicant on 22 January 2015 in the way quoted above, 'some in the public would fear that the senior member would harbour resentment towards the applicant for exposing her error, which resulted in a public apology'.
20 The applicant contends that the Tribunal erred in rostering the senior member to hear the directions hearing of 14 June 2016. The applicant submits that even if there was no bias, the perception by the public would be that there was. This perception of bias would arise because, the applicant contends, the Deputy President of the Tribunal had recognised the importance of a medical report that the senior member had ignored, however, then had proceeded to include and act on its contents and subsequently apologised for the error, therefore 'it would have been wiser to have been overly cautious and [for the senior member to] recuse herself'. The applicant points to the Direction of the Deputy President of the Tribunal, Justice Kerr, issued in 2015 'Constituting the Tribunal' and contends, without further specificity, that there was non-compliance or non-application with the Direction in her case.
21 The applicant emphasises repeated and expressed concerns as to the constitution of the Tribunal by the particular senior member and focusses in particular on the senior member's emphasis on administrative deadlines at the expense of a letter directed to the Tribunal from her treating doctor. The applicant refers to Ebner v Official Trustee in Bankruptcy (2000) 205 CLR 337 where Gleeson CJ, McHugh, Gummow and Hayne JJ said (at [6]):
Where, in the absence of any suggestion of actual bias, a question arises as to the independence or impartiality of a judge (or other judicial officer or juror), as here, the governing principle is that, subject to qualifications relating to waiver (which is not presently relevant) or necessity (…), a judge is disqualified if a fair-minded lay observer might reasonably apprehend that the judge might not bring an impartial mind to the resolution of the question the judge is required to decide. That principle gives effect to the requirement that justice should both be done and be seen to be done, a requirement which reflects the fundamental importance of the principle that the tribunal be independent and impartial. …
22 The applicant also relies upon a Tribunal decision in Confidential v Commissioner of Taxation [2013] AATA 112 where the Deputy President said (at [597]):
When it is understood that Tribunal members are expected to meet the same standards of behaviour as judicial officers, it is also understood that the security or otherwise of appointments made to the Tribunal or their being full or part time appointments does not have any effect on the role that they must play and the integrity with which they must undertake their work. The Tribunal's members continue to swear an oath or make an affirmation that they will "… faithfully and impartially perform the duties of…" the office of member. At no time have the courts given any indication that it has changed what is expected of the Tribunal in making a lawful decision. In light of this, it seems to me that the principles relevant to ascertaining whether a member should disqualify him or herself for bias, whether actual or apprehended, remain those that guide the courts. They do not require modification. [emphasis added by applicant]
23 The applicant also relies on R v Watson; Ex parte Armstrong (1976) 136 CLR 248 where the High Court (Barwick CJ, Gibbs, Stephen and Mason JJ) said (at 259-260), citing Lord Denning in Metropolitan Properties Co (FGC) Ltd v Lannon [1969] 1 QB 557:
… "it is not merely of some importance, but is of fundamental importance that justice should not only be done, but should manifestly and undoubtedly be seen to be done." After saying that he stood by that principle, Lord Denning M.R. continued:
"… in considering whether there was a real likelihood of bias, the court does not look at the mind of the justice himself or at the mind of the chairman of the tribunal, or whoever it may be, who sits in a judicial capacity. It does not look to see if there was a real likelihood that he would, or did, in fact favour one side at the expense of the other. The court looks at the impression which would be given to other people. Even if he was as impartial as could be, nevertheless if right-minded persons would think that, in the circumstances, there was a real likelihood of bias on his part, then he should not sit. And if he does sit, his decision cannot stand. … Nevertheless there must appear to be a real likelihood of bias. Surmise or conjecture is not enough … There must be circumstances from which a reasonable man would think it likely or probable that the justice, or chairman, as the case may be, would, or did, favour one side unfairly at the expense of the other. The court will not inquire whether he did, in fact, favour one side unfairly. Suffice it that reasonable people might think he did. The reason is plain enough. Justice must be rooted in confidence: and confidence is destroyed when right-minded people go away thinking: 'The judge was biased.'"
Danckwerts L.J., who dealt with the matter quite shortly, appears to have accepted that it would be enough to justify the court's interference if a person knowing the circumstances might reasonably feel doubts as to the tribunal's impartiality. Edmund Davies L.J. was clearly of the view that the court should interfere if it considered that it would appear to right-thinking people that there were solid grounds for suspecting that a member of the tribunal responsible for the decision may (however unconsciously) have been biased. He expressed his conclusions as follows:
"With profound respect to those who have propounded the 'real likelihood' test, I take the view that the requirement that justice must manifestly be done operates with undiminished force in cases where bias is alleged and that any development of the law which appears to emasculate that requirement should be strongly resisted. That the different tests, even when applied to the same facts, may lead to different results is illustrated by Reg. v. Barnsley Licensing Justices itself, as Devlin L.J. made clear in the passage I have quoted. But I cannot bring myself to hold that a decision may properly be allowed to stand even although there is reasonable suspicion of bias on the part of one or more members of the adjudicating body."
It has since been doubted whether in practice materially different results would follow from the adoption of one test rather than another: see Hannam v. Bradford Corporation. No doubt in many cases it will be immaterial which test is applied, but that is not universally true, as Edmund Davies L.J. pointed out in the passage already cited from Metropolitan Properties Co. (F.G.C.) Ltd. v. Lannon. It has also been said that the "two tests are often overlapping and it may be that one is appropriate to one situation and another is appropriate to another situation": Reg. v. Altrincham Justices; Ex parte Pennington. However that may be, the judgments of the Court of Appeal in Metropolitan Properties Co. (F.G.C.) Ltd v. Lannon provide authority for the proposition that if there is a reasonable suspicion of bias against a judge that is enough to warrant the court's interference.
24 The applicant says, and I accept, that the crucial question is whether a fair-minded lay observer might reasonably apprehend that the tribunal member might not bring an impartial mind to the resolution of the question the tribunal member is required to decide.
25 I propose to deal immediately with the recusal ground on the basis of apprehended bias.
26 At the 14 June 2016 directions hearing the senior member directed that on or before 28 June 2016 the applicant have leave to file submissions in relation to her objection to attend a medical appointment with the respondent's preferred occupational physician on various dates. Lengthy submissions were filed on 28 June 2016, with the application objecting, in essence, on the basis that:
(a) it was unnecessary for the purpose of the Tribunal deciding the limited question it was required to decide on remittal;
(b) a labour market analysis was not a medical appointment;
(c) to comply with the respondent's request would leave the applicant open to a further abuse of process; and
(d) the respondent had previously engaged the Health Professional Advisory Unit (HPAU) to provide a biased medical report.
27 On 29 June 2016, the senior member delivered the Decision, much of which is extracted above, making the necessary directions. The senior member rejected the applicant's arguments and found that a report from the respondent's preferred occupational physician, which would address whether the applicant's severe impairment would prevent her from performing work 'in the open labour market' independently of a program of support within the next five years, was likely to assist in satisfying the Tribunal's obligation to reach the correct and preferable decision in the case and that obtaining such a report was appropriate in the circumstances of the case.
28 Clearly there was no lack of procedural fairness in providing this opportunity to present an argument and in considering and evaluating the argument. These were merely interlocutory directions and nothing in the procedure adopted contravenes the requirements in s 39 of the AAT Act which are to the following effect:
39 Submissions-Divisions other than Security Division and Social Services and Child Support Division
(1) Subject to sections 35, 36 and 36B, the Tribunal shall ensure that every party to a proceeding before the Tribunal is given a reasonable opportunity to present his or her case and, in particular, to inspect any documents to which the Tribunal proposes to have regard in reaching a decision in the proceeding and to make submissions in relation to those documents.
(2) This section does not apply to:
(a) a proceeding in the Security Division to which section 39A applies; or
(b) a proceeding in the Social Services and Child Support Division (see section 39AA).
(3) This section does not limit subsection 25(4A) (Tribunal may determine scope of review).
29 It is well established that an allegation of apprehended bias must be firmly established. It is not sufficient that there be some idiosyncratic or over-sensitive perception of concern about the decision-maker. The decision-maker is required to bring an impartial and unprejudiced mind to the process; he or she has a duty to sit and is not to accede too readily to suggestions of appearance of bias which might encourage parties to raise such questions for inappropriate purposes. The hypothetical lay observer can be assumed not to be a lawyer, however, is not to be taken to be uninformed or uninstructed about the law or ordinary judicial practice, but rather is assumed to have informed him or herself as to the relevant context and to be neither complacent nor unduly sensitive or suspicious: see, for example, the discussion by Perry J in Picos v Australian Federal Police [2015] FCA 118 (at [27]).
30 In this instance, the Tribunal explained its reasons for directing that the applicant attend an appointment with the respondent's preferred occupational physician. Any reasonable person being apprised of the issues in dispute and the role to be played by the Tribunal could not reasonably entertain an apprehension of bias in anything done by the Tribunal, both in the immediate direction Decision or in the broader historical context of other decisions. It follows that there was no basis upon which the senior member should have recused herself, as the applicant contends. It is not obvious that there was a specific application made by the applicant for recusal of the senior member despite lengthy submissions made on a number of occasions. Mere expressions of concern do not rise to this level. Even if it was clear that such an application was made, it would be wrong in principal for a member to accede to a demand for recusal where a proper legal basis for such a step is lacking. Section 21A, as discussed above (at [14]), provided for the reconstitution of the Tribunal at the relevant point in which the applicant had made a complaint about the senior member. Section 21A, at the relevant time, read as follows:
21A Reconstitution of Tribunal at the request of a party
Scope
(1AA) This section does not apply in relation to proceedings in the Security Appeals Division.
Party may request reconstitution of Tribunal
(1) At any time during the hearing of a proceeding before the Tribunal (other than a proceeding in which the Tribunal is constituted by a presidential member who is a Judge and 2 other members), a party to the proceeding may apply to the Tribunal as constituted for the purposes of the proceeding requesting that the Tribunal be reconstituted for the purposes of the proceeding.
(2) Upon the making of an application under subsection (1), the Tribunal as constituted for the purposes of the proceeding shall, after receiving the submissions made in support of the application and any submissions made in opposition to the application, notify the President of the making of the application and give him or her particulars of those submissions.
(3) The President may, after taking the submissions into account, if he or she considers that the matters to which the proceeding relates are of such public importance as to justify him or her in so doing, give a direction that the Tribunal as constituted for the purposes of the proceeding be reconstituted by:
(a) adding one or more members; or
(b) removing one or more members; or
(c) substituting one or more other members;
(or any combination of these).
(4) Where a direction is so given, the Tribunal as reconstituted in accordance with the direction shall continue the proceeding and may either:
(a) complete the proceeding; or
(b) at any time remit the proceeding to the Tribunal as previously constituted for completion by the Tribunal as previously constituted.
Note: Section 23D provides that the reconstituted Tribunal may have regard to any record of the proceeding before the Tribunal as previously constituted.
(5) Where the Tribunal as reconstituted so remits a proceeding to the Tribunal as previously constituted, the Tribunal as reconstituted may give directions in relation to the proceeding to the Tribunal as previously constituted and the Tribunal as previously constituted shall, in making a decision on the review, comply with those directions.
(7) Where, by virtue of subsection (4), a proceeding is remitted by the Tribunal as reconstituted to the Tribunal as previously constituted, the Tribunal as previously constituted may, for the purposes of that proceeding, have regard to any record of the proceeding before the Tribunal as reconstituted including a record of any evidence taken under the proceeding.
31 It does not appear to be the case in the history of this disputation that the applicant has made a specific request to the Tribunal through the presiding senior member for the exercise of a discretionary power residing in the President to reconstitute the Tribunal. Even if she had, there is no reason why the President should accede to that request. It is not as though a party can shop around until finding the person perceived as the most favourable member.
32 There is absolutely no evidence express or inferential to support any conclusion that the senior member had any interest whatsoever that was adverse to the applicant or favourable to the respondent which could conflict with a proper performance of her functions in relation to the proceedings. The error in the applicant's submission is apparent from the contention that the senior member should 'have checked that the applicant was happy for her to hear the matter, and if not, immediately recused herself' (emphasis added). Plainly, this is not the test and does not accord with authority. Judicial officers and Tribunal members are not required to recuse themselves simply because a litigant is unhappy with them hearing a particular matter. There is no obligation to check that each litigant is 'happy' in that sense.
33 Finally, it is particularly important to place this discussion in context. This was simply a directions hearing where the Tribunal was programming a matter to hearing. The senior member had indicated that the oral request by the applicant for another member to determine her ultimate application would be considered. This was also confirmed in an email to the applicant from the Registrar on 26 July 2016. This communication, however, is not in any way to be taken as some implicit acceptance of the applicant's assertions. In all of the circumstances of this case it was intended presumably to be a practical (but not strictly necessary) solution which may have avoided the additional expense, delay and stress of the present appeal.
34 There is no merit in any of the assertions of apprehended bias or failure to recuse.