MINISTER'S CONTENTIONS
28 The Minister's submissions commence with the issue of whether leave to appeal should be granted. It is noted that the applicant frames the question of whether there should be a grant of leave to appeal by reference to the two factors identified in Décor Corporation (at 398-399). There is no error in that approach per se, however, it must be noted that the power to grant leave to appeal conferred by s 24(1A) of the Federal Court of Australia Act 1976 (Cth) is unfettered. The factors identified by the Full Court serve as 'general guidance' rather than 'rigid rules': see in Décor Corporation (at 399).
29 Further, the Minister says, it has not been shown that 'substantial injustice would result if leave were refused'. The medical certificate relied on by the applicant in the Federal Circuit Court was brief. It was obtained on 22 June 2017, more than a week after the hearing. To the extent that the certificate addressed the applicant's capacity to attend the hearing on 14 June 2017, it relied only upon the applicant's self-reported symptoms. The certificate did not account for the applicant's failure to contact the Court or the Minister's representative on the day of the hearing to explain his circumstances. For all these reasons, the Minister says the primary judge was correct to find the applicant's explanation for his non-attendance to be inadequate. This finding is not challenged in the application for leave to appeal or the applicant's submissions.
30 The Minister argues that the existence of a reasonable explanation for the applicant's absence from the hearing is an important consideration in the exercise of the discretion to reinstate an application that has been dismissed on the basis of non-attendance: MZYEZ v Minister for Immigration and Citizenship [2010] FCA 530 per Ryan J (at [7]). Ordinarily, an adequate explanation will be 'a pre-condition to the exercise of the discretion': cf Hunter Valley Developments Pty Ltd v Minister for Home Affairs and Environment (1984) 3 FCR 244 per Wilcox J (at 348) (considering an analogous application to extend time to commence proceedings). The Minister says that in circumstances where no adequate explanation has been given by the applicant for his non-attendance at the initial hearing, there would be no injustice if leave to appeal were refused.
31 Turning then to the issue of whether the primary judge's exercise of discretion miscarried, the Minister notes, first, it is said by the applicant that the primary judge 'overstated the primacy of the merits of the substantive application'. The Minister asserts that this complaint is not well founded. The prospects of success in relation to the substantive application is a highly significant factor to the exercise of the Court's discretion to set aside orders made in the absence of a party. Where the substantive claim has little or no prospects of success that consideration is, of itself and without consideration of any other factor, likely to result in the Court refusing to exercise the discretion provided for in r 16.05 of the Rules: MZYEZ (at [8]) citing Gallo v Dawson (No 2) (1992) 109 ALR 319 per the High Court (Mason CJ, Brennan, Deane, Toohey and Gaudron JJ) (at 319-320) (Gallo No 2). The grounds advanced by the applicant at first instance were found by the primary judge to 'not identify any arguable jurisdictional error'. That finding is not challenged and the applicant now abandons any reliance on those grounds. In circumstances where the grounds asserted were without merit, there was no error on the part of the primary judge in giving primacy to that consideration.
32 The Minister submits, and I accept, that whatever assistance that may be gleaned from earlier judicial decisions considering the discretion to set aside orders made in the absence of a party, those authorities can only operate as a guide to the exercise of the discretion in r 16.05. The applicant's contention impermissibly elevates 'guidelines' developed in earlier decisions to the status of binding legal principles which a court must consider in the exercise of its discretionary power: Décor Corporation (at 398-399); Norbis v Norbis (1986) 161 CLR 513 (at 519-520); Hunter Valley Developments (at 348). See also my recent decision in ACK16 v Minister for Immigration and Border Protection [2018] FCA 1554.
33 As to the applicant's specific complaints, the Minister correctly submits it would be surprising if the exercise of discretion required the Federal Circuit Court to consider the length of the delay between the failure of a party to appear and the bringing of an application to set aside the orders made in the absence of that party. The Minister contends the leading decision of this Court on the exercise of the discretion in r 16.05 does not identify that matter as a factor relevant to the exercise of the discretion: see MZYEZ (at [7]) cited recently in, for example, AAI15 v Minister for Immigration and Border Protection [2018] FCA 1110 (at [29]) and BAL17 v Minister for Immigration and Border Protection [2018] FCA 792. That is not to say that the factor could not be relevant in a particular case (and indeed a long delay may well be fatal), rather, it is to say that it is not a factor which the primary judge was required to consider in the exercise of the discretion.
34 The Minister submits, and I accept, that the question of prejudice to the Minister is in the same category. The existence of prejudice can be highly material. Where, however, there is no apparent prejudice, that factor takes on less importance. The mere absence of prejudice is not a sufficient basis to exercise the discretion: cf Hunter Valley Developments (at 349). The absence of any reference to prejudice in the primary judge's reasons suggests that the primary judge did not consider it a factor that weighed against the applicant. In circumstances where, however, there was an inadequate explanation for the applicant's non-attendance and no merit to the substantive application, it is not surprising that the mere absence of prejudice did not feature prominently in the primary judge's reasoning.
35 The Minister contends that the applicant's complaint that the primary judge did not weigh the issue of delay and prejudice against the merits of the substantive application should also be rejected. There is no prescriptive requirement that a judge considering the exercise of a discretion must make a specific finding in respect of each potentially relevant consideration. Where, as in this case, the merits of the substantive application were thoroughly examined and found to be poor, it was not necessary for the primary judge to perform the process of making a finding in relation to other potentially relevant factors and weighing that finding against the fact that the substantive application lacked merit: Gallo v Dawson (1990) 93 ALR 479 per McHugh J (Gallo No 1), affirmed in Gallo (No 2) (at 319-320).
36 As to the assertion that the primary judge erred in his assessment of the merits of the substantive application, the applicant now seeks to rely on a ground of review not advanced in the Federal Circuit Court. This Court is exercising appellate jurisdiction and is concerned with the correction of error. Specifically, given the discretionary nature of the primary judge's decision, the applicant needs to demonstrate error on the part of the primary judge in exercising that discretion. The exercise of a judicial discretion does not miscarry merely because no consideration is given to an argument which was not raised before the judge. The standard of review required by House v The King (1936) 55 CLR 499 cannot be avoided simply by raising a new ground on appeal: see generally, Minister for Immigration and Border Protection v SZVFW [2018] HCA 30 per Gageler J (at [29]-[49]) and Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd (2001) 117 FCR 424 per Allsop J (as his Honour then was) (with whom Drummond and Mansfield JJ agreed) (at [34]-[38]).
37 In any event, the Minister says, even if the primary judge's exercise of discretion did miscarry because of the failure to consider the question of delay and prejudice and associated failure to weigh these matters against other relevant factors, it does not follow that the appeal would be allowed. Indeed, this Court should not re-exercise the discretion in a different manner to the primary judge in circumstances where there was no adequate explanation for the applicant's non-attendance and where the substantive application lacks merit.
38 The Minister's submissions finally address the question of whether the grounds of review sought to be raised by the applicant's counsel on appeal have sufficient merit to warrant the applicant's case being reinstated. The applicant's proposed ground of review depends on the contention that the IAA found it necessary to consider the issue of relocation to Cairo because it could not exclude the real chance that the applicant had been threatened by his fiancée's family in the manner claimed, citing Rajalingam. The Minister says this contention is not consistent with a fair reading of the IAA's reasons.
39 It is useful in this regard to set out the IAA's reasoning (at [34]) on this issue in full:
… However, even accepting that the acid attack occurred as claimed, and that his fiancée's family subsequently discovered the relationship between them, I do not accept that the applicant faces a real chance of harm as a consequence. The applicant's evidence indicating that there has been no ongoing contact between his family and that of his fiancée since his departure does not suggest that his whereabouts is of ongoing interest to the other family; in these circumstances I have considerable doubt about the existence of an ongoing intention to harm him. On his own account, the applicant was able to remain in Cairo for over twelve months after leaving his home town when he was told that the family had found out about the relationship, and for some two months after his meeting with a friend from his home town which he believes placed him at risk of being discovered. Even if the applicant were found to be at risk of harm from his fiancée's family in his home area - which I am not satisfied, in any event, rises to the necessary level of real chance - I am satisfied that the real chance of persecution does not relate to all areas of Egypt, the receiving country.
(Emphasis added.)
40 The Minister submits, contrary to the applicant's submissions, the IAA was not left in sufficient doubt as to the merit of the applicant's claims for protection in his home area that it felt required to consider the question of relocation in order to determine whether the applicant faced a real chance of persecution. On the contrary, the IAA expressly held that it was not satisfied that the applicant faced a real chance of persecution in his home area by reason of the threat posed by his fiancée's family. It is true that the IAA went on to consider the question of relocation, however, this was merely an additional reason which supported the IAA's conclusion. The relocation finding was confirmatory of, but not essential to, the outcome because the IAA had already reached the separate conclusion that the applicant did not face a real chance of persecution or a real risk of significant harm. So understood, any failure of the IAA to consider the exercise of its powers to seek further information from the applicant in relation to relocation was not unreasonable. Nor would such a failure be material to the outcome (because of the separate finding as to the risk of harm in the home area) and, accordingly, any error would not go to the IAA's jurisdiction: Hossain v Minister for Immigration and Border Protection (2018) 92 ALJR 780 per Kiefel CJ, Gageler and Keane JJ (at [30]-[31]), Nettle J (at [41]) and Edelman J (at [46] and [72]).