Legal unreasonableness
26 The passages cited in BQG21 (which, with respect, repay close study) explore the relationship between legal unreasonableness and irrationality and the concepts that underpin these grounds of review. For my own part, I consider that there is utility in maintaining a conceptual distinction between review of a decision maker's state of satisfaction (sometimes referred to as a subjective jurisdictional fact), where a serious lapse of reasoning may produce a decision properly described as "irrational", and review of a purported exercise of discretion, where a decision lacking an evident and intelligible justification is properly described as "unreasonable". One looks to whether the state of mind required as a precondition for legally effective action has in truth been reached; the other looks to "intra-mural" questions of fact finding and assessment of competing factors once power is enlivened (see Minister for Immigration and Citizenship v SZMDS [2010] HCA 16; 240 CLR 611 at [38]-[39] (Gummow A-CJ and Kiefel J) (SZMDS)). This is not to suggest that the concepts are unrelated and do not inform each other. For example, in SZMDS at [130] (a passage quoted in BQG21 at [39]), Crennan and Bell JJ observed that illogicality as a species of jurisdictional error:
is nevertheless an allegation of the same order as a complaint that a decision is "clearly unjust" or "arbitrary" or "capricious" or "unreasonable" in the sense that the state of satisfaction mandated by the statute imports a requirement that the opinion as to the state of satisfaction must be one that could be formed by a reasonable person.
27 Both concepts thus involve an underlying notion that an administrative decision that could not have been reached by a reasonable person properly instructed as to the applicable law is beyond power.
28 BQG21 itself was an "appeal" on questions of law from a decision of the Tribunal under s 44 of the Administrative Appeals Tribunal Act 1975 (Cth), in which the decision of the Tribunal had turned on it not being "satisfied" of the applicant's identity. The applicant framed the case as one of legal unreasonableness. The Chief Justice discerned significant irrationality in the Tribunal's fact finding (at [45]-[46]). The "appeal" was thus allowed (at [47]). While her Honour did not spell out the link, it is apparent that this level of irrationality amounted to a failure by the Tribunal to apply the relevant criterion in reaching its state of (non) satisfaction, and thus an error of law capable of being corrected by a s 44 appeal (and not a mere error of fact).
29 The modern case law on legal unreasonableness in Australia begins with Minister for Immigration and Citizenship v Li [2013] HCA 18; 249 CLR 332 (Li). Li concerned a discretionary decision by the Tribunal not to delay its decision on a review so that the review applicant could obtain documentation that was essential to her case. The plurality in that case (Hayne, Kiefel and Bell JJ) observed that there are:
(a) cases where unreasonableness is inferred even though a particular error in reasoning cannot be identified (at [68], referring to Associated Provincial Picture Houses Ltd v Wednesbury Corporation [1948] 1 KB 223 and Avon Downs Pty Ltd v Federal Commissioner of Taxation (1949) 78 CLR 353), such as where a decision "lacks an evident and intelligible justification" (at [76]); and
(b) "more specific errors, going to jurisdiction, which the law recognises" and which "may also be seen as encompassed by legal unreasonableness" (at [71]-[72]).
30 The impugned decision in Li itself was of the first kind, being one where "the result itself bespeaks error" (at [85]).
31 The Full Court of this Court in Minister for Immigration and Border Protection v Singh [2014] FCAFC 1; 231 FCR 437 at [44] (Allsop CJ, Robertson and Mortimer JJ) (Singh) understood the effect of Li as follows:
In order to understand how the standard of legal unreasonableness is to be ascertained, it is important to see where the concept fits in terms of the Court's supervisory powers over executive or administrative decision-making. In Li, the judgments identify two different contexts in which the concept is employed. Legal unreasonableness can be a conclusion reached by a supervising court after the identification of an underlying jurisdictional error in the decision-making process: Li at [27]-[28] per French CJ, at [72] per Hayne, Kiefel and Bell JJ; cf [SZMDS] at [39] per Gummow A-CJ and Kiefel J. However, legal unreasonableness can also be outcome focused, without necessarily identifying another underlying jurisdictional error. The latter occurs in what French CJ (in Li at [28]) calls "an area of decisional freedom": it has the character of a choice that is arbitrary, capricious or without "common sense". See also the plurality at [66] referring to an area within which a decision-maker has a genuinely free discretion. The plurality in Li described this as an inference to be drawn because the court cannot identify how the decision was arrived at. In those circumstances, the exercise of power is seen by the supervising court as lacking "an evident and intelligible justification". Gageler J also uses language suggestive of review for legal unreasonableness being concerned with an examination by the supervising court of the outcome of the exercise of power (in Li at [105]):
"It is, of course, true that, as a measure in fact of time, space, quantity and conduct, reasonableness is a concept deeply rooted in the common law: and so, in such cases, is the power of a court to say whether a particular decision of that fact is or is not within the bounds of reason": Giris Pty Ltd v FCT (1969) 119 CLR 365 at 383-384; [1969] HCA 5. Review by a court of the reasonableness of a decision made by another repository of power "is concerned mostly with the existence of justification, transparency and intelligibility within the decision-making process' but also with 'whether the decision falls within a range of possible, acceptable outcomes which are defensible in respect of the facts and law": Dunsmuir v New Brunswick [2008] 1 SCR 190 at 220-221 [47].
32 The reference to "outcome focused" review as one of the limbs of legal reasonableness was taken up later in Minister for Immigration and Border Protection v Stretton [2016] FCAFC 11; 237 FCR 1 at [6]-[12] (Allsop CJ), [61] (Griffiths J) and [91] (Wigney J) (Stretton) and in Minister for Immigration and Border Protection v SZVFW [2018] HCA 30; 264 CLR 541 at [82] (Nettle and Gordon JJ) (SZVFW).
33 In Stretton, Allsop CJ sought to emphasise that the task of the court is "not definitional, but one of characterisation" (at [11]). His Honour continued:
the decision is to be evaluated, and a conclusion reached as to whether it has the character of being unreasonable, in sufficiently lacking rational foundation, or an evident or intelligible justification, or in being plainly unjust, arbitrary, capricious, or lacking common sense having regard to the terms, scope and purpose of the statutory source of the power, such that it cannot be said to be within the range of possible lawful outcomes as an exercise of that power. The descriptions of the lack of quality used above are not exhaustive or definitional, they are explanations or explications of legal unreasonableness, of going beyond the source of power.
34 Allsop CJ then observed, at [12], that:
the task is to evaluate the quality of the decision, by reference to the statutory source of the power and thus, from its scope, purpose and objects to assess whether it is lawful. The undertaking of that task may see the decision characterised as legally unreasonable whether because of specific identifiable jurisdictional error, or the conclusion or outcome reached, or the reasoning process utilised.
(Emphasis added.)
35 The reference to "reasoning process" as a basis on which a decision might be characterised as legally unreasonable appears to take matters further than the observations of the plurality in Li. However, it is consistent with his Honour's conception of those observations as illustrative and descriptive rather than definitional. It is also consistent with the emphasis by Gageler J in Li (quoted in the passage from Singh set out above) on "the existence of justification, transparency and intelligibility within the decision-making process". It may therefore be that a glaring deficiency in reasoning on the part of a decision maker (where reasons are expressed) could lead to the decision being characterised as unreasonable, even if the outcome per se is "within a range of possible, acceptable outcomes" and the deficiency is not one of the "more specific errors, going to jurisdiction, which the law recognises". The applicant's broad proposition that "an error of fact or reasoning made en route to an administrative decision is judicially reviewable for legal unreasonableness" cannot therefore be rejected at a general level.
36 However, such error would need to be one which infected the decision - the purported exercise of power - with the quality of unreasonableness; that is, one which allowed the decision to be characterised as lacking rational foundation or an evident or intelligible justification, or plainly unjust, arbitrary, capricious or lacking common sense (Stretton at [11]; see also Djokovic v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2022] FCAFC 3; 289 FCR 21 at [30]-[35] (Allsop CJ, Besanko and O'Callaghan JJ)). This is a high threshold, in the application of which courts must always be alert to the limits of the judicial function (SZVFW at [11] (Kiefel CJ), [52] (Gageler J), [135] (Edelman J)). It stands in contrast to the "more specific errors, going to jurisdiction, which the law recognises", mentioned in Li, any of which will vitiate a decision subject to meeting the low threshold of materiality. Nothing in the cases purports to add an "error of fact or reasoning" to this latter category.
37 The difficulty for the applicant's case is that "legal unreasonableness" (in the broader sense identified in Li and elaborated in Singh and Stretton) "is to be judged at the time the power is exercised or should have been exercised": Minister for Home Affairs v DUA16 [2020] HCA 46; 271 CLR 550 at [26] (Kiefel CJ, Bell, Keane, Gordon and Edelman JJ). That is to say, if a decision is to be characterised as capricious, unjust, arbitrary or one which no reasonable person could have made, that must follow from consideration of the decision against the material known to (or knowable by) the decision maker. The applicant does not submit that the Minister should have predicted the change in understanding of the law wrought by NZYQ, or that the Minister's forecasting of the potential for him to be indefinitely detained was improper by reference to the law as expounded by the authorities at the time the decision was made.