[2022] WASC 295
General information, not legal advice.
Supreme Court of WA
2022-09-02
Curthoys J
Original judgment source is linked above.
(a) selling or transferring;
(b) engaging in acts or conduct to effect or complete the sale, or registration at Landgate of the transfer, of; or
(c) omitting to engage in acts or conduct to prevent the completion of the sale, or registration at Landgate of the transfer, of;
the Property to Mr Morrison Jnr on 6 August 2021 (First Contempt).
(a) engaged in acts or conduct to enable Mr Morrison Snr to effect or complete the sale, or registration at Landgate of the transfer, of; or
(b) omitted to engage in acts or conduct to prevent the completion of the sale, or registration at Landgate of the transfer, of;
the Property, to himself (Second Contempt).[4]
If the President is satisfied that an act or omission of a person would constitute a contempt of the Court if a proceeding of the Tribunal were a proceeding in the Supreme Court, the President may report that act or omission to the Supreme Court and the Court has jurisdiction to deal with the matter as if it were a contempt of the Court,
(i) that an order was made by the court;
(ii) that the terms of the order are clear, unambiguous and capable of compliance;
(iii) that the order was served on the alleged contemnor or excused in the circumstances, or service dispensed with pursuant to the Rules of Court;
(iv) that the alleged contemnor has knowledge of the terms of the order;
(v) that the alleged contemnor has breached the terms of the order.
It is necessary for the plaintiff to prove each element beyond reasonable doubt. In accordance with the principles of the criminal law, in proving element (v) it must be proven that the act or omission which constituted the breach of the order was deliberate and voluntary.
(a) an undertaking was given to the court or tribunal;
(b) the terms of the undertaking were clear, unambiguous and capable of compliance. The court should seek to give meaning to the undertaking if its terms so permit. In this regard, the context in which the undertaking was given is relevant to its proper construction;[17]
(c) the contemnor has knowledge of the terms of the undertaking;
(d) the contemnor has by their act or omission breached the terms of the undertaking; and
(e) the act or omission which constituted the breach of the undertaking was deliberate and voluntary; it must have been more than causal, accidental or unintentional. It is unnecessary to establish that the alleged contemnor had a specific intention to break the law. What is required is proof that they were aware of the facts that made their act or omission a breach of the undertaking.[18]
A motion to commit a man for breach of an injunction, which is technically wrong unless he is bound by the injunction, is one thing; and a motion to commit a man for contempt of Court, not because he is bound by the injunction by being a party to the cause, but because he is conducting himself so as to obstruct the course of justice, is another and a totally different thing. The difference is very marked. In the one case the party who is bound by the injunction is proceeded against for the purpose of enforcing the order of the Court for the benefit of the person who got it. In the other case the Court will not allow its process to be set at naught and treated with contempt. In the one case the person who is interested in enforcing the order enforces it for his own benefit; in the other case, if the order of the court has been contumaciously set at naught the offender cannot square it with the person who has obtained the order and save himself from the consequences of his act.
I think that the following propositions may be stated as to the consequences which ensue when there are acts or omissions which are contrary to the terms of an injunction. (1) The person against whom the order is made will be liable for contempt of court if he acts in breach of the order after having notice of it. (2) A third party will also be liable if he knowingly assists in the breach, that is to say if knowing the terms of the injunction he wilfully assists the person to whom it was directed to disobey it. This will be so whether or not the person enjoined has had notice of the injunction
(a) the President explained the general effect of s 82 of the GA Act to all those in attendance;[55]
(b) the President advised that the purpose of the directions hearing was not to determine the s 82 application but rather to deal with preliminary matters including 'to ensure that nothing can happen to the property, 146 Old Dairy Court, Oakford, until we work out what's going to happen to the transaction';[56]
(c) the President explained to Mr Morrison Snr that the Public Trustee had proposed an order 'effectively that restrains you from selling or doing anything to that property', and the purpose of such an order was to 'stop anything happening to the property which might jeopardise the Tribunal's ability ultimately to set aside the transaction if it decides that's what should happen';[57]
(d) the President further explained to Mr Morrison Snr that the order proposed by the Public Trustee was called an interim or interlocutory injunction and that 'An injunction is an order of the Tribunal that prohibits someone from doing something';[58]
(e) after ensuring that Mr Morrison Snr had a copy of the Minute in front of him, the President directed his attention to the precise terms of the injunction sought and read them out to him. Her Honour then explained that 'the thrust of the order is it would stop you, Mr Morrison [Snr], from doing anything [until] we work out what the answer is to the current application. That might be a while down the track';[59]
(f) the President stated that the Tribunal had received an email from Mr Morrison Jnr indicating that his father wanted an adjournment of the directions hearing in order to obtain legal advice and asked whether Mr Morrison Jnr had obtained any legal advice;[60]
(g) Mr Morrison Jnr advised the President that he and Mr Morrison Snr had not obtained legal advice;[61]
(h) the President noted that Mr Morrison Snr's request for an adjournment seemed 'like a perfectly reasonable kind of a request, but the Tribunal needs to be assured that nothing is going to happen to the property in the meantime until we get this thing sorted';[62]
(i) the President explained that there were two options open: '(1) you can agree to the order being made or (2) I can adjourn say until tomorrow or later today. You can go and get a lawyer, but it will be very - it will be a short adjournment to permit you to go and get someone if you want to argue about whether the order should be made.' Her Honour further advised Mr Morrison Snr that there was 'one alternative way, and it's not really very much different to be making an order with which you agree. It's you can undertake - you can tell me - make a solemn promise effectively to the Tribunal that you won't do anything to deal with the property';[63]
(j) the President explained that it was a matter for Mr Morrison Snr whether he wanted to consider agreeing to the order proposed in the Minute or wanted to get some legal advice about whether the order should be made;[64]
(k) the President explained to Mr Morrison Snr that if he gave an undertaking it was a promise that he would not 'deal with the property and do any of those things that are set out in order 3' and that if he went ahead and did something 'it's very likely [the lawyer for the Public Trustee] will say to me that I should refer you to the Supreme Court to be punished for contempt, which is a very serious thing, and I'm sure you wouldn't dream of doing anything of the kind';[65]
(l) Mr Morrison Snr confirmed to the President that he wished to get some legal advice and Mr Morrison Jnr also advised the President that he would like to get 'further legal advice' in relation to the s 82 application 'before we make comment';[66]
(m) the President advised Mr Morrison Snr that 'Just as a matter of precaution, I think something needs to happen to ensure that I can be comfortable that nothing is going to be done to this property until you go and get some legal advice. Now, I'm sure you don't have any intention, given the circumstances, of going and doing anything with respect to this property';[67]
(n) the President then asked Mr Morrison Snr whether he was 'prepared to give a promise to [her], an undertaking, today that you won't deal with this property in the way described in paragraph 3 for say seven days [until] I list the matter for a further hearing next week';[68]
(o) the President explained that this should give Mr Morrison Snr more time to obtain legal advice and prepare and that the further hearing would deal with whether an injunction should be granted into the future until such time as the s 82 application was answered;[69]
(p) Mr Morrison Snr confirmed that he was prepared to give such an undertaking;[70]
(q) after Mr Morrison Snr confirmed that he was prepared to give the Undertaking, the President stated: [71]
[So] we're all very clear about it. Let me say again. As I explained a moment ago, it's a serious promise that you're making to me when I record this undertaking and receive it from you. It's a serious promise. If you breach it, you deal with that property contrary to the terms of that undertaking, then, no doubt [the Public Trustee's lawyer] will be asking me to refer you for contempt. I'm sure we don't need to worry about that, but you need to be very clear about the serious consequences of the promise
(r) the President then stated that upon Mr Morrison Snr giving the Undertaking the matter would be adjourned to 10.30 am on 12 August 2021 for the hearing of the Public Trustee's application for an interlocutory injunction;[72]
(s) the President then read out the order she was making again slowly so that Mr Morrison Snr was 'very clear';[73]
(t) the President then stated: [74]
What's going to happen is you're not going to do anything to this property between now and then. 10.30 next week, we will come back, and we will be talking about the same sort of thing, which will be the first thing for us to discuss, hopefully when you've had some legal advice or your lawyer will come along, and we will talk about whether I make an order that stops you or you give another undertaking or whether you say nothing should happen at all.
(u) in response, Mr Morrison Snr stated, 'That's fine';[75]
(v) the President made comments at the outset which indicated that her understanding was that Mr Morrison Snr was the owner of the Property;[76] and
(w) at no time during the directions hearing did Mr Morrison Snr or Mr Morrison Jnr mention that they had already entered into a contract for the sale of the Property or that settlement of the sale was due to occur the next day, that is, 6 August 2021.
(a) sent an email to Mr Morrison Snr (at 1.39 pm via Mr Morrison Jnr's email address) attaching a document comprising the seller's settlement statement for the sale of the Property for his approval;[81] and
(b) sent an email to Mr Morrison Jnr (at 1.42 pm) attaching a document comprising the buyer's settlement statement for the sale of the Property 'for tomorrow'.[82]
(a) sent an email to Mr Morrison Jnr (at 7.59 am) attaching a copy of the final buyer's settlement statement for the sale of the Property, which requested. 'Can you please confirm you are happy to proceed';[83]
(b) sent an email to Mr Morrison Snr (at 8.07 am via Mr Morrison Jnr's email address) attaching a document comprising the final seller's settlement statement for the sale of the Property. The email stated that 'To enable settlement to be effected [I] need the seller to sign and return the attached to authorise Seacrest Settlements to proceed today noting the credit to the buyer particularly';[84]
(c) received an email from Mr Morrison Jnr (at 8.10 am) in response her email sent at 7.59 am stating 'Yes proceed';[85]
(d) received an email from Mr Morrison Jnr's email address (at 8.14 am) in response to her email sent to Mr Morrison Snr at 8.07 am stating 'Please proceed' and attaching a copy of the final seller's settlement statement for the Property endorsed with the signature of Mr Morrison Snr underneath the following statement: 'I Robert Noel Morrison authorise Seacrest Settlements to effect settlement today and confirm that the attached statement is correct. I am crediting the buyer with $500,000 and will receive net proceeds today of $647,937.84 in full and final settlement to the account noted above'.[86]
(1) whether Mr Morrison Snr breached the Undertaking;
(2) whether the terms of the Undertaking were clear and unambiguous and whether Mr Morrison Snr understood them correctly; and
(3) whether Mr Morrison Snr gave the Undertaking under duress.
Whether the terms of the Undertaking were clear and Mr Morrison Snr understood them
Whether Mr Morrison Snr gave the Undertaking under duress
(a) an undertaking was given to the Tribunal by Mr Morrison Snr;
(b) the terms of the Undertaking were clear, unambiguous and capable of compliance. The Undertaking given by Mr Morrison Snr was that he would 'not sell, change, transfer, mortgage, or otherwise deal' with the Property. The excuse provided by Mr Morrison Snr for doing so was that the Property had already been sold. However, it is clear that Mr Morrison Snr knew that settlement had not occurred and that transfer took place at settlement. It is clear from his cross-examination that Mr Morrison Snr knew that settlement had not occurred at the time he gave the Undertaking. It is obvious from the transcript that the President went to great lengths to explain the Undertaking and its effect to Mr Morrison Snr. Even without her Honour's explanation the terms of the Undertaking were clear and unambiguous;
(c) the context in which the Undertaking was provided was that it was required to preserve the position for a week while the Morrisons sought legal advice. There was nothing complex about the Undertaking.
(d) Mr Morrison Snr had knowledge of the terms of the Undertaking. The President made clear to Mr Morrison Snr what the terms of the Undertaking were and that there were serious consequences for a breach of the Undertaking. Further, a copy of the Undertaking was emailed to Mr Morrison Jnr's email address by the Tribunal at 12.33 pm on 5 August 2021. I find that Mr Morrison Snr had knowledge of the terms of the Undertaking by reason of giving the undertaking to the Tribunal. I am unable to be satisfied beyond a reasonable doubt that Mr Morrison Snr read the email sent by the Tribunal to Mr Morrison Jnr's email;
(e) Mr Morrison Snr breached the terms of the undertaking by allowing settlement to proceed on 6 August 2021without taking steps to prevent it and by signing the authority to Seacrest Settlements to effect settlement;
(f) Mr Morrison Snr's acts were deliberate and voluntary. He did not have to sign the authority to effect settlement. He chose to do so when he was aware of the terms of the undertaking. He could simply have cancelled the settlement or declined to sign any documentation enabling the settlement agent to proceed. He was aware of the facts that constituted the contempt.
(a) engaged in acts or conduct to effect or complete the sale or registration at Landgate of the transfer of the Property to Mr Morrison Jnr by signing the authority to Seacrest Settlements to proceed to settlement; and
(b) omitted to engage in acts or conduct to prevent the completion of the sale, or registration at Landgate of the transfer of the Property in that he failed to instruct Seacrest Settlements not to proceed with the settlement in breach of the Undertaking.
(a) engaged in acts or conduct to enable Mr Morrison Snr to effect or complete the sale or registration at Landgate of the transfer of the Property, specifically, by:
(i) emailing Mr Morrison Snr's authority to proceed to Seacrest Settlements; and
(ii) emailing his authority to proceed to Seacrest Settlements; and
(b) omitted to engage in acts or conduct to prevent the completion of the sale or registration at Landgate of the transfer of the Property by failing to inform Seacrest Settlements that Mr Morrison Snr had given the Undertaking.
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Affidavit of Yasmin Salleh sworn 13 April 2022 [7], [9] - [10], attachment YS2, (9 - 14), attachment YS3 (First Salleh Affidavit).
[2] First Salleh Affidavit [8], attachment YS2 (6 - 7); Affidavit of Robert N Morrison sworn 8 June 2022 [22] ‑ [23] (RNM Affidavit); Affidavit of Robert Frank Morrison sworn 8 June 2022 [26] ‑ [27] (RFM Affidavit).
[3] First Salleh Affidavit [13], attachment YS4, attachment YS6.
[4] Notice of originating motion for punishment of contempt of court filed 13 April 2022, 3.
[5] Hammond v Aboudi [2005] WASCA 204; (2005) 31 WAR 533, [22] (McLure JA, Wheeler JA & Le Miere AJA agreeing); Allbeury v Corruption and Crime Commission [2012] WASCA 84; (2012) 42 WAR 425 [58] (McLure P, Mazza JA agreeing).
[6] Witham v Holloway [1995] HCA 3; (1995) 183 CLR 525, 534 (Brennan, Deane, Toohey & Gaudron JJ).
[7] Australasian Meat Industry Employees' Union v Mudginberri Station [1986] HCA 46; 161 CLR 98, 107 (Gibbs CJ, Mason, Wilson & Deane JJ).
[8] Witham v Holloway (530) (Brennan, Deane, Toohey & Gaudron JJ), (538 - 539) (McHugh J).
[9] Witham v Holloway (530) (Brennan, Deane, Toohey & Gaudron JJ), (538 - 539) (McHugh J); Australasian Meat Industry Employees' Union v Mudginberri Station (108); Pang v Bydand Holdings Pty Ltd [2011] NSWCA 69 [73] - [74] (Beazley JA), [167] (Lindgren AJA), [173] (McColl JA).
[10] Witham v Holloway [1995] HCA 3; (1995) 183 CLR 525, 539.
[11] Perpetual Trustees Victoria Ltd v Allen [2012] WASC 258 [27] - [28]; Advan Investments Pty Ltd v Dean Gleeson Motor Sales Pty Ltd [2003] VSC 201 [31] - [32].
[12] Advan Investments Pty Ltd v Dean Gleeson Motor Sales Pty Ltd [2003] VSC 201 [31] - [32].
[13] Construction Forestry Mining and Energy Union v Grocon Constructors (Victoria) Pty Ltd [2014] VSCA 261 [139].
[14] Pang v Bydand Holdings Pty [51] (Beazley JA).
[15] Compare Windsurfing International Inc v Sailboards Australia Pty Ltd [1986] FCA 384; (1986) 19 FCR 110, 113.
[16] Perpetual Trustees Victoria Ltd v Allen [28]; Advan Investments Pty Ltd v Dean Gleeson Motor Sales Pty Ltd [31] - [32]. These cases concerned the breach of an order but their principles are equally applicable to the breach of an undertaking.
[17] Pang v Bydand Holdings Pty Ltd [59] (Beazley JA).
[18] Perpetual Trustees Victoria Ltd v Allen [27]; International Land Developments Pty Ltd v Diamo Nominees Pty Ltd [2007] WASC 96; (2007) 34 WAR 201 [43] - [68]; Chief Executive Officer, Department of Environment and Conservation v Szulc [2010] WASC 195 [5].
[19] Pang v Bydand Holdings Pty Ltd [2011] NSWCA 69 [11] (Beazley JA).
[20] Pang v Bydand Holdings Pty Ltd [32] - [35] (Beazley JA).
[21] Pang v Bydand Holdings Pty Ltd [129].
[22] The Queen v Hinch [2013] VSC 520 [55].
[23] Seaward v Paterson [1897] UKLawRpCh 22; [1897] 1 Ch 545, 555 - 556.
[24] Z Ltd v A-Z [1982] 1 QB 558.
[29] RNM Affidavit [3] - [4]; RFM Affidavit [2].
[31] RNM Affidavit [7], [10]; RFM Affidavit [5].
[32] RNM Affidavit [14]; Second Affidavit of Yasmin Salleh sworn 11 July 2022 [6], attachment YS8 (5 - 6) (Second Salleh Affidavit).
[33] RNM Affidavit [12] - [13]; RFM Affidavit [14]; Second Salleh Affidavit [6], attachment YS8 (24).
[34] RNM Affidavit [13]; RFM Affidavit [15]; First Salleh Affidavit [13], attachment YS5.
[35] First Salleh Affidavit [13], attachment YS4 (40); Affidavit of Ebony Rae Bishop affirmed 8 July 2022 [6], attachment ERB2 (11) (Bishop Affidavit); Second Salleh Affidavit [6], attachment YS8 (21 - 22).
[36] RNM Affidavit [16]; RFM Affidavit [21].
[37] Second Salleh Affidavit [6], attachment YS8 (5 - 6).
[38] Second Salleh Affidavit [6], attachment YS8 (37, 40).
[40] Second Salleh Affidavit [6], attachment YS8 (40).
[41] RNM Affidavit [17]; RFM Affidavit [20].
[42] Bishop Affidavit [6] - [7], attachment ERB2.
[43] Bishop Affidavit [10], [14], attachment ERB4, attachment ERB8.
[44] Bishop Affidavit [10], attachment ERB4.
[45] First Salleh Affidavit [5] - [6].
[46] Second Salleh Affidavit [7] - [8], attachment YS9.
[47] First Salleh Affidavit, attachment YS2 (9 - 10).
[48] Bishop Affidavit [11], attachment ERB5.
[49] Bishop Affidavit [12], attachment ERB6.
[50] First Salleh Affidavit [4], attachment YS1.
[51] First Salleh Affidavit [9], attachment YS2 (6 - 9, 36).
[55] First Salleh Affidavit [9], attachment YS2 (8).
[56] First Salleh Affidavit, attachment YS2 (9).
[57] First Salleh Affidavit, attachment YS2 (9).
[58] First Salleh Affidavit, attachment YS2 (10).
[59] First Salleh Affidavit, attachment YS2 (10).
[60] First Salleh Affidavit, attachment YS2 (9 - 10).
[61] First Salleh Affidavit, attachment YS2 (10).
[62] First Salleh Affidavit, attachment YS2 (10).
[63] First Salleh Affidavit, attachment YS2 (11).
[64] First Salleh Affidavit, attachment YS2 (11).
[65] First Salleh Affidavit, attachment YS2 (11 - 12).
[66] First Salleh Affidavit, attachment YS2 (12 - 13).
[67] First Salleh Affidavit, attachment YS2 (13).
[68] First Salleh Affidavit, attachment YS2 (14).
[69] First Salleh Affidavit, attachment YS2 (14).
[70] First Salleh Affidavit, attachment YS2 (14).
[71] First Salleh Affidavit, attachment YS2 (14).
[72] First Salleh Affidavit, attachment YS2 (15).
[73] First Salleh Affidavit, attachment YS2 (15).
[74] First Salleh Affidavit, attachment YS2 (15).
[75] First Salleh Affidavit, attachment YS2 (15).
[76] First Salleh Affidavit, attachment YS2 (9).
[79] First Salleh Affidavit [10], attachment YS3.
[81] Bishop Affidavit [13], attachment ERB7.
[82] Bishop Affidavit [14], attachment ERB8.
[83] Bishop Affidavit [15], attachment ERB9.
[84] Bishop Affidavit [16], attachment ERB10.
[85] Bishop Affidavit [17], attachment ERB11.
[86] Bishop Affidavit [18], attachment ERB12.
[89] First Salleh Affidavit [13], attachment YS4, attachment YS5.
[90] Bishop Affidavit [15] - [19]; attachments ERB9 - ERB12. The RNM Affidavit and the RFM Affidavit do not suggest that any such request was made.
[92] RNM Affidavit [23] - [24]; see also RFM Affidavit [28].
[93] Pang v Bydand Holdings Pty Ltd [52] (Beazley JA).
[94] RNM Affidavit [23]; see also RFM Affidavit [27].
(2005) 31 WAR 533
(2012) 42 WAR 425
(1995) 183 CLR 525
(1986) 19 FCR 110
(2007) 34 WAR 201