"In my view the first matter that a fair minded observer would have regard to as part of his or her knowledge when considering the facts and circumstances relied on by the defendant would be the fact that [the special referee's] professional dealings with the plaintiff's solicitors subsequent to 21 April and before 25 June did not in any way relate to the subject proceedings, nor did it relate to any party the subject of the proceedings. It related to an entirely separate matter which was the subject of this professional relationship between [the special referee] and the plaintiff's solicitors. In Aussie Airlines v Australian Airlines [1996] FCA 1308; (1996) 65 FCR 215, Merkel, J, when considering whether a personal relationship which existed between himself and counsel appearing for one of the parties in proceedings before him might give rise to a reasonable apprehension of bias, drew a distinction between such personal relationship between a judge and counsel appearing before him as against the relationship existing between the judge and the party to the proceedings on which he was sitting. At p231 His Honour expressed the view that a fair minded observer would be aware of the importance and substance of such a distinction. With respect to the latter relationship he said `there may, by reason of the perceived prospect of favour, be a cogent and rational link between the association and its capacity to influence the decision to be made'; whereas in the former situation `there was no such link as the observer must be taken to have understood the professional role of counsel'. In my view, in so drawing this distinction, his Honour expressed in another manner that for a possible apprehension of partiality or prejudice to arise from the association or relationship between the presiding judge and another to be a disqualifying factor, the possible apprehension on the part of the observer arising out of such a relationship , must in all the circumstances be reasonable. In the circumstances of this case, a fair minded observer would be aware and have knowledge that [the special referee] was a practising barrister, who, in addition to acting as a mediator and a special referee, acted for persons in a professional capacity, having been retained to do so by solicitors for such persons. The observer would know and appreciate that in consequence [the special referee] would from time to time have a professional relationship with such solicitors while acting on behalf of their clients. Such observer would know that a barrister may be acting professionally for a person against another whose solicitor had at the time retained him to act for another client or had previously done so or was likely to do so in the future. The observer would know that the relationship existing by acting for another client of that solicitor, or having done so, would not affect the manner in which counsel performed his professional duties to his client. Such is the common role, duties and functions of counsel and could not be said reasonably by a person aware of such facts to give rise to any conflict of interest or disqualify counsel from acting for his client."