[2025] WASC 431
General information, not legal advice.
Supreme Court of WA
2025-10-08
Gething J
Original judgment source is linked above.
Meeting at Mercy Care 21.9.2016
Margaret Ingleton said that when Mercy Care takes over 40% of admissions will be concessional.
Maintenance personal Gary stipulated that no more risk taking was to occur. He is available 24/7 for emergency problems. Also indicated that if something was to break more than 5 times then don't fix. Get a new one.
I asked Margaret Ingleton who to call for information on bonds suggesting Nicholas and she replied that I must run all questions past her.
[signature]
Margaret Draper
(a) he sent an email to the lawyers for the ACK Parties on 17 September 2025 objecting to the admission of the Draper Note which had been referred to in the written opening submissions filed on behalf of the ACK Parties on 1 September 2025; and
(b) on 21 September 2025, at 8:10pm, he received a draft supplementary witness outline of Mr Markoff which addressed the circumstances in which the Draper Note was created.
(a) she was responsible for reviewing the admission of future residents into the Business Facilities; and
>
> (b) when Mercy took over the Business Facilities, 40% of future residents admitted would be Concessional Residents.
The attendees at the meeting included Margaret Draper and Nicholas Shao.
(1) Subject to subsection (2), in any proceedings where direct oral evidence of a fact or opinion would be admissible, any statement in a document and tending to establish the fact or opinion shall, on production of the document, be admissible as evidence of that fact or opinion if the statement -
(a) was made by a qualified person....
(2) Where a statement referred to in subsection (1) is made by a qualified person or reproduces or is derived from information in a statement made by a qualified person, that person must be called as a witness unless...-
(a) he is dead; or
...
(2a) Notwithstanding subsections (1) and (2), in any proceedings where direct oral evidence of a fact or opinion would be admissible, any statement in a document and tending to establish the fact or opinion shall, on production of the document, be admissible as evidence of that fact or opinion if -
(a) the statement is, or directly or indirectly reproduces, or is derived from, a business record; and
(b) the court is satisfied that the business record is a genuine business record.
(2b) Where a statement referred to in subsection (2a) is made by a qualified person that person shall not be called as a witness unless the court orders otherwise.
(3) This section makes a statement admissible notwithstanding -
(a) the rules against hearsay; or
(b) the rules against secondary evidence of the contents of a document; or
(c) that the person who made the statement or the person who made a statement from which the information in the statement is reproduced or derived is a witness in the proceedings, whether or not he gives evidence consistent or inconsistent with the statement; or
(d) that the statement is in such a form that it would not be admissible if given as oral evidence,
but does not make admissible a statement which is otherwise inadmissible.
(5) For the purposes of this section a court may -
(a) for the purpose of deciding whether or not a statement is admissible as evidence, draw any reasonable inference from the form of contents of the document in which the statement is contained, or from any other circumstances.
(6) For the purposes of this section a court may, in its discretion, reject a statement notwithstanding that the requirements of this section are satisfied with respect thereto, if the court is of the opinion that the probative value of the statement is outweighed by the consideration that its admission or the determination of its admissibility -
(a) may necessitate undue consumption of time; or
(b) may create undue prejudice, confuse the issues ...
Is the Draper Statement admissible pursuant to EA s 79C(1)(a)?
qualified person, in relation to a statement, means a person who -
(a) had, at the time of making of the statement, or may reasonably be supposed to have had at that time, personal knowledge of the matters dealt with by the statement ...
Is the Draper Note admissible pursuant to EA s 79C(2a)?
business means any business, occupation, trade or calling and includes the business of any governmental body or instrumentality and of any local government;
business record means a book of account or other document prepared or used in the ordinary course of a business for the purpose of recording any matter relating to the business;
(a) the business records legislation is remedial legislation intended to remove the difficulty or, in some instances, impossibility of proving certain business facts by admitting a material which in common experience is likely to be accurate, and should be construed liberally and not pedantically;[5]
(b) adopting a liberal and non-pedantic construction of the words, the notion of 'recording any matter relating to the business' is qualitatively different from the notion of making a 'record' relating to the business - in its more expansive sense, the reference to recording embodies broadly the preservation of things in writing as knowledge or information, rather than the notion of the written preservation for some more formal, internal or official process;[6]
(c) on the other hand, in construing the definition of a 'business record' it is relevant to take account of the statutory consequence of a document being a business record which is that the document will be admissible as evidence of the truth of its contents and that will be so notwithstanding the document is second hand hearsay;[7]
(d) s 79C(2a) makes 'statements' in a document admissible and does not make the document itself admissible - so existence of an admissible statement in a document therefore does not make the balance of the document admissible, if it is otherwise inadmissible;[8] and
(e) the preparation or use of the document must have been for the purpose of recording any matter relating to the business, though it need not be the sole or even the dominant purpose; it is enough that it is a substantial purpose.[9]
... Pt IIC, of which s 14CE is the core, has extended the common law rules of evidence in a way which is of great importance in the search for truth. Any significant organization in our society must depend for its efficient carrying on upon proper records made by persons who have no interest other than to record as accurately as possible matters relating to the business with which they are concerned. In the every-day carrying on of the activities of the business, people would look to, and depend upon, those records, and use them on the basis that they are most probably accurate.
In this case, MFI 73 was prepared at the request of Mr Bennett, who was a director of ITC. Evidence was given during the trial that Mr Bennett was the director responsible for most of the administrative functions of ITC including dealing with staff issues such as payment of wages etc. In my view, the letter produced was a document used in the ordinary course of business for the purposes of recording a matter relating to the business.
In this matter, I take into account the following matters:
(i) The letter of 9 October 2000 contains a very detailed account of incidents between Mr Soia and the staff which was prepared largely from the detailed notes of Mr Andrew Posa. To allow the letter to be admitted as evidence of the matters contained in the letter without Mr Andrew Posa being called and subjected to cross‑examination is potentially unfair to the plaintiffs. The unavailability of Mr Andrew Posa for cross‑examination is a relevant consideration (see Tobias v Allen [1957] VicRp 32; [1957] VR 221, 225). The extent that counsel for the plaintiffs might have cross‑examined Mr Andrew Posa is difficult to assess. Although Mr Emery was not cross‑examined about his evidence concerning the behaviour of Mr Soia and his relationship with staff, this does not mean that counsel appearing for the plaintiffs would not have cross‑examined Mr Andrew Posa about the detailed recording of incidents that is contained in the letter of 9 October 2000.
(ii) Further, the probative value of the contents of the document is reduced by the fact that the primary author, Mr Andrew Posa is not available for questioning and his notes have not been produced.
(iii) Further, although the defendant called Mr Emery, a joint signatory to the letter, his evidence‑in‑chief as contained in his witness statement did not seek to address with particularity the contents of the letter of 9 October 2000. Rather, he gave evidence of a more general description concerning Mr Soia's behaviour and his relationship with the staff. During the trial I made an oral ruling that Mr Emery could not be asked whether the contents of the letter was correct and thus simply adopt its content, but he could be asked questions taking him through the alleged incidents and asking him to give his evidence in relation to each such incident. This was not done
(iv) Further, I take into account that excluding of the contents of the letter dated 9 October 2000 has not prevented the defendant from adducing further evidence of the behaviour of Mr Soia and his relationship with the staff. As I have mentioned, Mr Emery covered this issue in his evidence‑in‑chief. Further, the defendant also called Ms Rosalinde Miles, who was employed as a casual typist at ITC, and was able to give evidence about her observations concerning Mr Soia's behaviour and relationship with the staff. Further, the defendant did not call Mr Mark Posa, who had provided a witness statement.
(v) Finally, the defendant called Mr Emery, one of the persons who was a signatory to the letter, without seeking an order from the court to do so pursuant to s 79C(2b). This subsection provides that a qualified person who makes a statement in a business record shall not be called as a witness unless the court orders otherwise. This section appears to be based upon the rationale that, if the person is called, the factual material contained in the document should be the subject of oral evidence rather than the document.
Counsel for the respondent alleged that the notes comprised a 'one-off' record which were not part of a system of notetaking within a business. He submitted that their 'one-off' nature deprived them of the essential character of a business record.
Typically, a business brings many records into existence. Some of those records, indeed it may be most, are likely to be part of the systematic record keeping of the business - the keeping of postage books, stock records or accounting records are classic examples. However, the phrase 'record of a business' in s 14B [Evidence Act 1898 (NSW)] of the is a descriptive term and is not confined to any particular category of document. This was recognised in Atra v Farmers & Graziers Co-op Co Ltd (1986) 5 NSWLR 281 where Wood J stated at 288 that:
' ... the term 'record of a business' denotes documents which truly might be regarded as the internal records kept by or for that company in respect of its business such as its books of account, ledgers, employment records, stock records, postage books, its own correspondence, internal memoranda, and so on.'
Counsel for the applicant conceded that the notes were properly described as an internal memorandum of a business. In my opinion a record brought into existence once only in a business, is not deprived of the quality of a 'record of a business' merely because the typical example of a business record is one which is part of systematic record keeping of a business involving more than a single document. In this case, the notes were brought into existence in respect of a matter relating to the affairs of the Jack group of companies. by an employee of the group, during the course of a meeting which related to the operation of a piece of machinery used in the business. In my opinion, the notes are a record of a business and fall within the provisions of s 7B of the Evidence Act (Cth).
The note in issue (to the extent admitted) is set out at the conclusion of the decision. It contains in detail statements made by participants at the meeting.
The appellant's submissions went no further than to contend that the Sonic Health letter was relevant stating that it was a letter of 'significant importance'... There was no attempt to explain how, given that the statement relied on plainly offended the rule against hearsay, the letter was a business record and thus admissible in accordance with the exception in s 79C(2a) of the Evidence Act. There was no proper basis for contending that the letter was a business record within the definition set out in s 79B of the Evidence Act. The letter was a one-off piece of correspondence sent to the District Court in answer to a subpoena rather than a document prepared or used in the ordinary course of business for the purpose of recording any matter relating to the business. The primary judge was correct to reject the tender of the Sonic Health letter on the basis that it was not a business record.
Those observations are apposite to the present case.
Should the court reject the Draper Statement on discretionary grounds?
The formation of the opinion referred to in s 79C(6) is a condition for the existence of the discretion conferred by that subsection. Forming that opinion requires the court to take three steps in a jury trial where it is not suggested that the admission of the evidence or the determination of its admissibility may necessitate undue consumption of time. First, the court must assess the probative value of the statement sought to be admitted. Second, the court must identify whether the admission of the evidence may create undue prejudice, confuse the issues or mislead the jury. Third, it is necessary to assess whether the probative value of the evidence is outweighed by any undue prejudice, confusion of the issues or misleading effect which its admission may create.
This overall approach is apposite to a civil trial before a judge, though issue like confusion or misleading effect have a different weighting than in a trial before a jury.
The principles relevant to the exercise of discretion under s 79C(6) are not in dispute.
The starting point is that it is a discretion to reject. Thus once the requirements of the section are otherwise satisfied, the prima facie position is that the statement is to be admitted. The discretion to reject only arises if the court forms the opinion that the probative value of the statement is outweighed by, relevantly, the consideration that its admission may necessitate undue consumption of time or may create undue prejudice.
In considering whether any undue prejudice exists, regard must be had to the interests of both parties to the proceedings...
Relevant 'undue prejudice' may be suffered by a party who is unable to cross‑examine a witness...
The prejudice suffered by the party who is seeking to tender the document, if that document is not admitted, must also be considered....
In this case, the prejudice to the plaintiffs in refusing to admit the report lies in the absence of the benefit of whatever probative value the report may have had. The extent of that prejudice must be considered taking account of whether, and to what extent, matters dealt with in the report can be the subject of cross‑examination of witnesses and submissions.
Other factors that may be relevant to the exercise of the discretion include:
(a) The extent to which the statement in the document is ambiguous and requires clarification or explanation...
(b) whether the statement was prepared by the tendering party's lawyers as a witness statement and was intended for use by them in an adversarial context...
(c) whether the statement seeks to provide evidence of a central issue in the case and
(d) whether the other party is or is not in a realistic position to controvert the proposed evidence by firsthand evidence of their own....
However, in the exercise of my discretion, I also cannot ignore the fact that the statement was prepared by the plaintiff's lawyers as a witness statement and was intended for use by them in the adversarial context of this hard fought litigation. Even though the legislation contemplates the admissibility of documents under s.55(4), which may not be completely impartial, this nevertheless may in the appropriate case be a factor in the rejection of the statement in the exercise of the discretion conferred by s.55(9). In this case the statement seeks to provide evidence of a central issue in the case. It contains nothing adverse to the parties seeking to admit the evidence, namely the plaintiffs, nor does it contain anything which on its face could assist the defendants. It is not only what is contained in the statement which must be considered in this case.
The concern expressed is magnified with the Draper Note. At least a witness statement would be prepared in accordance with the ethical obligations contained in the Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015 (WA) (r 24) and the Legal Profession Uniform Conduct (Barristers) Rules 2015 (WA) (rr 69 to 71). Mr Markoff was under no such ethical obligations.
(a) the accuracy of what is recorded compared with what Ms Draper could have recalled, the minutes of the meeting and the (contrary) evidence of Ms Ingelton;
(b) the ambiguity of the first statement, including whether it was just in relation to the existing facility operated by Mercy, or in relation to one facility or over what time;
(c) how it was to be implemented.
In relation to the last sentence of the Draper Note, there could have been cross-examination on whether there was a discussion about which questions were to be directed to Ms Ingelton or whether the questions were also to be run past Mr Shao. These are all important issues in assessing the weight to be given to the statements in the Draper Note. I regard the statements in the Draper Note as at least requiring clarification or explanation.
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[5] Cavill v The State of Western Australia [2008] WASCA 108 [208] (Miller JA) (Cavill); Donohoe v Director of Public Prosecutions (WA) [2011] WASCA 239; (2011) 215 A Crim R 1 [126] (Buss JA) (Donohoe).
[6] Rhodes v De Castro [No 2] [2023] WASC 93 [40] (Solomon J) (Rhodes).
[7] McKay v Commissioner of Main Roads [No 2] [2010] WASC 153 [33] (Beech J) (McKay).
[8] Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd [No 23] [2023] WASC 380 [11] (Smith J) (Wright); Donohoe [125] (Buss JA).
[9] Wright [14]; Rhodes [28] ‑ [30] (Solomon J).
[10] Albrighton v Royal Prince Albert Hospital [1980] 2 NSWLR 542, 548 - 549 (Hope JA with whom Reynolds and Hutley JJA agreed) (Allbrighton).
[11] Soia v Bennett [No 4] [2012] WASC 292 (Soia).
[16] Feltafield Pty Ltd v Heidelberg Graphic Equipment (1995) 56 FCR 481 (Feltafield).
[22] Greenaway v The State of Western Australia [2022] WASCA 166 [326] (judgment of the court) (Greenaway).
[24] Commissioner of Australian Federal Police v Li [No 2] [2018] WASC 359 [44] (Archer J).
[25] Shmee Pty Ltd v Bresam Investments Pty Ltd [2008] VSC 291 [21] (Vickery J).
(1986) 5 NSWLR 281
(1995) 56 FCR 481