I accept that substantial injustice, either because of the existence of a repugnant law or because of a repugnant application of the law in a particular case, may invoke the public policy ground. But it will only do so where the offence to public policy is fundamental and of a high order. For the public policy ground to be invoked in this context enforcement must offend some principle of Australian public policy so sacrosanct as to require its maintenance at all costs."
157I am entirely unpersuaded that the Applicants have demonstrated that the enforcement of the judgment would be contrary to public policy.
158The judgment of Goldsborough J of 20 May 2009 arose in circumstances where the Applicants had not prosecuted the retrial of the matter following the orders of the Court of Appeal. The orders of the Court of Appeal had provided the opportunity to the Applicants to prove their case following a hearing on the merits, unattended by the numerous errors which had infected the judgment of Brown J. Having been presented with that opportunity, the Applicants did not prosecute the retrial.
159Thereafter, the Court of Appeal, on 22 July 2009, dismissed an appeal from the judgment of Goldsborough J after a hearing at which Mr King, for the Applicants, had an opportunity to contend (without success) that Goldsborough J had fallen into error.
160It has not been demonstrated that it would be contrary to public policy for the Respondents to enforce the judgment made by Goldsborough J.
161I reject this ground relied upon by the Applicants.
Ground Based Upon s.7(2)(b) FJ Act - The Matter in Dispute in the Proceedings had Before the Date in Judgment in the Original Court Been the Subject of a Final and Conclusive Judgment by a Court Having Jurisdiction in the Matter
Submissions of the Parties
162Mr King developed an argument, by reference to procedural provisions in Solomon Islands which he contended gave rise to this ground for setting aside the registration of the judgment. The submission, developed in writing, contended that Goldsborough J, sitting in the High Court on 20 May 2009, had no authority to tax and to make orders in respect of costs of the Court of Appeal or to award costs of the original trial.
163Mr Assaf submitted that the argument of the Applicants did not demonstrate a basis for the relief sought and that the argument itself was misconceived.
Decision
164I am entirely unpersuaded that the Applicants have demonstrated that the registration of the judgment of Goldsborough J of 20 May 2009 ought be set aside because the matter in dispute had been the subject of a final and conclusive judgment already by that time.
165The judgment of Goldsborough J demonstrated that the parties were represented before his Honour, including Mr Hayes appearing for the Applicants, and with the whole question of costs (including assessment) being the subject of determination, without objection, by Goldsborough J. It has not been demonstrated that this course was not available to Goldsborough J because of any earlier judgment of a Court in Solomon Islands.
166I reject this ground of the Applicants.
Discretionary Considerations
Submissions of the Parties
167Mr King submitted that this Court should exercise any relevant discretion in favour of the Applicants. He pointed to what was said to be the unsatisfactory nature of the first decision of the Court of Appeal and the second decision of the Court of Appeal. He submitted that the Applicants had been "treated harshly and unjustly by the Solomon Islands courts".
168Mr Assaf submitted that an entirely contrary view should be adopted with respect to the hearings by various courts in Solomon Islands, culminating in Quarter failing to prosecute its case at the retrial.
Decision
169I am entirely unpersuaded that the discretionary considerations relied upon by Mr King have been demonstrated in this case. Quarter and Mr Gibbs undertook what became protracted litigation in the Courts of Solomon Islands, with the first-instance judgment in their favour being resoundingly and emphatically overturned by a Court of Appeal presided over by eminent Judges. The conclusions expressed by the Court of Appeal demonstrated that the first-instance judgment was profoundly flawed. It was not possible, the Court of Appeal said, to save "something from the wreck" (see [145] above).
170The orders of the Court of Appeal allowed Quarter the opportunity to prove its case at a retrial, with findings of fact and law to be made by the presiding trial Judge by reference to evidence adduced at the retrial. If the Applicants wished to contend that different factual findings should be made concerning the events of 21 February 1997, there would have been an unfettered opportunity to present evidence and arguments in that respect at the retrial.
171However, Quarter did not prosecute its claim in a manner which was open to it. Goldsborough J made orders and the second Court of Appeal heard and dismissed an appeal from that judgment.
172In my respectful view, the Courts of Solomon Islands (at least after the first trial) have discharged their duties in a manner which does not warrant the criticisms which the Applicants direct to them.
173The Applicants' approach to this application brings to mind the observations of Gleeson CJ, Gummow, Hayne and Heydon JJ in D'Orta-Ekenaike v Victoria Legal Aid [2005] HCA 12; 223 CLR 1 at 18 [37]:
"Parties who fail in litigation, whatever its subject, may well consider the result of that litigation to be wrong, even unjust. Seldom will a party have contested litigation without believing, or at least hoping, that it will be resolved in that party's favour. If that party does not succeed, an explanation for failure may be sought in what are perceived to be the failures of others - the judge, the witnesses, advocates - anyone other than the party whose case has been rejected."
174It is the regrettable fact that strongly contested civil litigation may lead to an outcome which leaves the losing party dissatisfied and financially worse off. That this is the outcome here does not provide a proper and reasonable foundation for the Applicants to avoid their responsibilities under the relevant judgment.
175None of this, it seems to me, assists the Applicants in the exercise of any discretion relevant to the Court's present function.
Application to Reopen Proceedings Following the Court Reserving Judgment
176I have mentioned earlier in this judgment the fact that, after judgment was reserved on 6 July 2011, the Applicants filed a Notice of Motion, without prior contact with my Chambers, seeking to reopen the hearing. I directed that written submissions be filed with respect to that application. In due course, I indicated that I refused the application and would give reasons for that decision in my final judgment. What follows constitutes my reasons for this conclusion.
177The principles to be applied on a reopening application were summarised helpfully by Garling J in Gaskin v Ollerenshaw [2010] NSWSC 788 at [13]-[23]. I apply those principles to this application. The Court has a discretion whether to grant leave to reopen, with the overriding purpose in s.56 Civil Procedure Act 2005 to facilitate the just, quick and cheap resolution of the real issues in the proceedings being kept firmly in mind. It is necessary to consider whether it is in the interests of justice to grant the application.
178The Applicants' Notice of Motion sought leave to reopen the hearing to admit a further affidavit of Ronald Harry Gibbs sworn 22 July 2011 or, alternatively, seeking a direction that the Respondents be required to admit certain facts as contained in a letter of Hayes Partners dated 14 July 2011.
179By the time this Notice of Motion had been filed, the Applicants had had more than ample opportunity to develop arguments and adduce evidence at the hearing before Davies J on 19 July 2010, in which they chose to participate, and in particular, at the hearing before me which extended over three sitting days between 30 June 2011 and 6 July 2011.
180It is necessary to keep in mind that the present application is an application to set aside the registration of a judgment under the FJ Act. The judgment relates to a costs order made in civil proceedings.
181If the Applicants wished to take the steps sought to be achieved as set out in the affidavit of Mr Gibbs sworn 22 July 2011, there was every opportunity to do so at the three-day hearing in this Court which concluded on 6 July 2011.
182To the extent that one part of the application may seek to overcome the inability of Mr King to explain, in the course of his reply (T103-106, 6 July 2011), why the appeal books before the first Court of Appeal (23 volumes) ought be admitted in evidence before me, I observe that Mr King did not seek leave to take further steps in this regard before the hearing concluded on 6 July 2011. To the extent that Mr King articulated the purpose of the tender of the 23 volumes, he said the purpose was to "ensure that, if your Honour is in any doubt about any submission put or otherwise, your Honour is able to make an inquiry" (T106.18, 6 July 2011). This unappealing purpose did not warrant the wholesale tender of multiple appeal books.
183However, the affidavit of Mr Gibbs went far beyond that. Accompanying the affidavit were more than 300 pages of assorted documents. The affidavit itself and the accompanying documents raised further factual matters which, if the application was allowed, would have involved a further hearing, with prejudice being experienced by the Respondents.
184Like other affidavits of Mr Gibbs read at the hearing before me, much of this affidavit was argumentative in content, mixing submissions with factual elements.
185Significantly, no explanation was proffered by the Applicants in the material in support of the Notice of Motion as to why this application was not made prior to or at the hearing itself.
186To reopen the hearing in the circumstances which presented themselves would be entirely contrary to the provisions contained in s.56ff Civil Procedure Act 2005 and the principles expressed in Aon Risk Services Australia Limited v Australian National University at 186-187 [17], 188-189 [23].
187By the conclusion of the hearing on 6 July 2011, a substantial discretionary indulgence had already been extended to the Applicants by the provision of time over three sitting days to allow the hearing of their application. In my view, no basis was demonstrated for yet another phase of the hearing in this matter which has already occupied different courts in different countries now on several occasions.
188I accepted the submission of the Respondents that the reopening application ought be declined and that the alternative form of relief, namely a requirement that the Respondents admit facts, ought not be the subject of any order by the Court.
189I observe, in any event, that I do not consider that the material sought to be relied upon would have materially assisted the Applicants on any of the grounds relied upon.
190It was for these reasons that I declined the application to reopen this hearing.
Conclusion
191I have rejected the Applicants' grounds in support of the application to set aside registration of the judgment under s.7 FJ Act. I will make an order that the Applicants' Notice of Motion filed 27 September 2010 be dismissed.
192In addition, I will make an order dismissing the Applicants' Notice of Motion filed 22 July 2011.
193At the conclusion of the hearing, I was requested to provide an opportunity to the parties to make submissions as to costs in light of my judgment, when delivered.
194The ordinary rule is that costs should follow the event, so that an order would ordinarily be made that the Applicants should pay the Respondents' costs of the hearing of the application determined by me. Mr Assaf foreshadowed that an application will be made for a special costs order on an indemnity basis. I will hear the parties on that application if it is pressed.
195I make the following orders:
(a)the Applicants' Notice of Motion filed 27 September 2010 is dismissed;
(b)the Applicants' Notice of Motion filed 22 July 2011 is dismissed;
(c)I will hear the parties on the question of costs.
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated.
Decision last updated: 07 May 2012