Principles governing the claim for privilege
7 The present application does not relate to the adducing of evidence, but to the response to a notice to produce. It is governed by the common law, and not by Part 3.10 of the Evidence Act 1995 (Cth): Esso Australia Resources Ltd v Commissioner of Taxation (1999) 201 CLR 49 at 59-63; Mann v Carnell (1999) 201 CLR 1 at 12 [27].
8 The contested advices, apart from Prof. Lindsey, were given by legal advisers within the Commonwealth:
(a) lawyers in AGD (Judiciary Act 1903 (Cth) (Judiciary Act), ss 55E - 55G);
(b) lawyers in AGS (Judiciary Act, ss 55I - 55R); and
(c) lawyers in the Office of the CDPP (Director of Public Prosecutions Act 1983 (Cth), ss 5 and 16). The functions of the DPP, set out in s 6(1) and (2) of that Act, and the Director of Public Prosecutions Regulations 1983, reg 3(1), include giving advice to an authority of the Commonwealth.
9 Legal professional privilege attaches to communications between a salaried legal adviser and his or her employer, provided that the legal adviser is consulted in a professional capacity in relation to a professional matter and the communications are made in confidence and arise from the relationship of lawyer and client: Waterford v Commonwealth (1987) 163 CLR 54, Dawson J at 96; Deane J at 79-82. The salaried adviser must also be professionally independent or "detached": Rich v Harrington (2007) 245 ALR 106 and see generally Candacal Pty Ltd v Industry Research & Development Board [2005] FCA 649 at [64]-[71], [99]. The conditions under which the Commonwealth employs legal officers have been recognised as securing that independence: Waterford at 72-73 per Brennan J.
10 Legal advice and services by government lawyers attract privilege: Waterford (material submitted to Deputy Crown Solicitor's Office in relation to litigation), Bennett v CEO, Australian Customs Service (2004) 140 FCR 101 (advice by AGS); Spassked Pty Ltd v Commissioner of Taxation (No 4) (2002) 50 ATR 70 (material briefing expert by AGS); State of New South Wales v Betfair Pty Ltd (2009) 180 FCR 543 (advice regarding drafting and preparation of legislation by Parliamentary Counsel).
11 Advice by OIL to AGD and the CDPP to the Australian Federal Police and others is privileged: Zentai v O'Connor (No 2) (2010) 183 FCR 180; Dunesky & Bay Wool Pty Ltd v Elder (1992) 35 FCR 429; Grofam Pty Ltd v Australia and New Zealand Banking Group Ltd (1993) 45 FCR 445; Austin v Attorney-General's Department (1986) 12 FCR 22; R v Dainer; Ex parte Pullen (1988) 78 ACTR 25.
12 The privilege attaches to confidential communications between a party and his or her legal adviser, in connection with giving or obtaining legal advice or the provision of legal services, including representation in proceedings in a court: Esso Australia Resources at 64- 65. A communication for the dominant purpose of obtaining legal advice or obtaining or providing legal services attracts privilege: Esso Australia Resources at 73 [61]. The privilege extends to documents that record confidential legal advice or confidential legal work, and to any document prepared by the lawyer or client from which the nature of the advice may be inferred: Commissioner of Australian Federal Police v Propend Finance Pty Ltd (1997) 188 CLR 501 at 569, per Gummow J. The principles and cases are discussed by Young J in AWB Limited v Cole (2006) 152 FCR 382 at [127]-[132]. The advice from and the request for advice to the lawyer are privileged: Bolton v Liverpool Corporation (1833) 1 My & K 88 at 94; 39 ER 614 at 617.
13 When the relevant communication is set out in a document, the use made of a document is not determinative. The test is "anchored to the purpose for which the document was brought into existence": Propend Finance Pty Ltd at 508 per Brennan CJ. A compendious statement of the classes of documents to which privilege will attach was given by Lockhart J in Trade Practices Commission v Sterling (1979) 36 FLR 244. Relevantly, they include not only the communication between a party and his or her legal adviser, including any note or record of that communication, but documents that would reveal the knowledge, information or belief of a client derived from privileged communications. The relevant question is "what was the intended use or uses of the document which accounted for it being brought into existence": Pratt Holdings Pty Ltd v Commissioner of Taxation (2004) 136 FCR 357 at 366. The purpose for which a document is brought into existence is a question of fact to be determined objectively.
14 The existence of privilege is not subject to a balancing exercise in respect of some other public interest, such as the interests of justice. Unless privilege has been waived by the person entitled to it, or has been abrogated by statute, it is absolute: Waterford at 64-5; Attorney-General (NT) v Kearney & Northern Land Council (1985) 158 CLR 500, at 532; Carter v Managing Partner, Northmore Hale Davy & Leake (1995) 183 CLR 121, at 128, 133, 163; Propend Finance at 552.
15 A claim of privilege will, if challenged, be determined upon a proper investigation of the circumstances: Fruehauf Finance Corporation Pty Ltd v Zurich Australian Insurance Ltd (1990) 20 NSWLR 359; National Crime Authority v S (1991) 29 FCR 203. The onus of establishing that legal professional privilege applies is on the party claiming privilege: Grant v Downs (1976) 135 CLR 674 at 689. The party claiming privilege may point to the nature of the documents, or by evidence describe the circumstances in which they were brought into existence. In many instances "the character of the documents the subject of the claim will illuminate the purpose for which they were brought into existence": Grant v Downs at 689; Barnes v Commissioner of Taxation (2007) 242 ALR 601 at [22].
16 However, where communications take place between a client and his or her legal advisers it may be appropriate to assume that legitimate legal advice was being sought, absent any contrary indications: Kennedy v Wallace (2004) 208 ALR 424 at 442 [65] affirmed on appeal, Kennedy v Wallace (2004) 142 FCR 185 at 191-192 [23]-[27]. See also Cross on Evidence, Online edition at [2570]. That is the case here.
17 The concept of legal advice is wide: DSE (Holdings) Pty Ltd v InterTAN Inc (2003) 135 FCR 151 at [52]. It extends to professional advice as to what a party should prudently or sensibly do in the relevant legal context: Balabel v Air India [1988] Ch 317 at 323 and 330; Nederlandse Reassurantie Groep Holding NV v Bacon & Woodrow [1995] 1 All ER 976 at 983; Three Rivers District Council v Governor and Company of the Bank of England (No 6) [2004] UKHL 48; [2005] 1 AC 610 at 652-653 [43]-[44], 657-658 [59]-[60], 681 [114] and 683 [120]; Dalleagles Pty Ltd v Australian Securities Commission (1991) 4 WAR 325 at 332-333; DSE (Holdings) Pty Ltd v InterTAN Inc at 161-173 [25]-[71].Where legal advice contains extraneous matter, which cannot be separated from it, the legal advice will not lose its privilege for that reason: Waterford at 66 and 103.
18 Where a document contains legal advice, it is permissible and has become common practice to redact the document and claim privilege as to the redacted part only: Gray v Associated Book Publishers (Aust) Pty Ltd [2002] FCA 1045 at [14]- [18]; Candacal Pty Ltd at [53]-[54]; Assistant Treasurer & Minister for Competition Policy and Consumer Affairs v Cathay Pacific Airways Ltd (2009) 179 FCR 323 - the practice was also affirmed in Bailey v Department of Land and Water Conservation [2009] NSWCA 100.
19 The Court should uphold a claim of privilege where the relevant dominant purpose can be reasonably inferred from the content and on the face of the document on inspection: See Barnes at [38]. Otherwise, the court has, and will exercise, the power to examine a document for itself to assess whether the communication in it is privileged: Grant v Downs at 677 and 688-9; Trade Practices Commission v Sterling at 246-7; Woollahra Municipal Council v Westpac Banking Corporation (1994) 33 NSWLR 529 at 541-2; Esso Australia Resources at [52]; AWB Ltd v Cole (2006) 152 FCR 382 at 391. Inspection is discretionary: Grant v Downs at 688-9; District Council of Mallala v Livestock Markets Ltd (2006) 94 SASR 258 at [30]. The Court cannot order disclosure to the party seeking disclosure for the purposes of enabling that party to make a submission on the point: Rayney v AW [2009] WASCA 203 at [36] and [40].