Principles on which the discretion to grant leave ought be exercised
5 It is unnecessary to attempt any analysis of the authorities dealing with the principles on which this Court determines whether to grant leave to amend a notice of appeal to raise new grounds on appeal. That is because they have been thoroughly considered in the recent, lucid reasons of Bromwich J in Han v Minister for Home Affairs [2019] FCA 331 at [8]-[18]. These passages were relied upon by the Minister and no summary or further analysis could improve upon his Honour's exposition. That being so, I set them out in full:
8 It may be convenient, and in many cases it will be entirely appropriate, to decide the question of whether to grant leave to advance an entirely new proposed ground of review in the form of a ground of appeal by giving dominant, but not exclusive, weight to the merit of the proposed ground. Merit is necessary, but not of itself ordinarily sufficient. Other features will generally need to be absent or present. Possible further considerations for the granting of leave in addition to merit include such things as an acceptable explanation for the ground not being run below, the nature and extent of any injustice (beyond a merely adverse result) that may result if the issue raised is not addressed, and the lack of prejudice to the opposing party. The decision to grant or refuse leave is then made by weighing the competing considerations, which are sometimes finely balanced.
9 The approach of relying predominantly on merit as the basis for leave becomes more problematic when there is no adequate explanation for the ground not having been advanced at the trial in the court below and other circumstances also tell against leave being granted. Care needs to be taken to ensure that a focus on merit does not have the troubling practical effect that a new ground sought to be raised is effectively heard and determined by this Court in the exercise of its appellate jurisdiction as though leave was not required. If that happens, the appellant may get to run an appeal which in truth is a new trial upon nothing more compelling than the fact that it might have succeeded if it had been run below. If the argument in support of the proposed ground finds favour, leave is then granted, and the appeal is allowed. If the argument does not find favour, leave is refused and the appeal dismissed. The grant or refusal of leave then turns on the success or failure of the new ground, making leave a mere formality. If so, an important principle in the administration of justice may be lost in the process.
10 Appeals, even appeals by way of rehearing such as this appeal, are not to be relegated to the role of only providing an opportunity to conduct a second trial upon a different basis, the first trial having failed. Longstanding and much-cited authority of the High Court makes this abundantly clear, supported by related considerations raised by numerous cases in the Full Court of this Court, of which only few will be cited.
11 In University of Wollongong v Metwally (1985) 60 ALR 68 (also reported as University of Wollongong v Metwally (No. 2) (1985) 59 ALJR 481) it was stated by all six justices of the High Court sitting that (60 ALR at 71; 59 ALJR at 483):
It is elementary that a party is bound by the conduct of his case. Except in the most exceptional circumstances, it would be contrary to all principle to allow a party, after a case had been decided against him, to raise a new argument which, whether deliberately or by inadvertence, he failed to put during the hearing when he had an opportunity to do so.
12 The above passage from Metwally was quoted in Coulton v Holcombe (1986) 162 CLR 1 at 8. In Coulton v Holcombe, the following (again, much-cited) observations were made by four justices of the High Court as to the application of the principle to appeals by way of rehearing (at 7):
To say that an appeal is by way of rehearing does not mean that the issues and the evidence to be considered are at large. It is fundamental to the due administration of justice that the substantial issues between the parties are ordinarily settled at the trial. If it were not so the main arena for the settlement of disputes would move from the court of first instance to the appellate court, tending to reduce the proceedings in the former court to little more than a preliminary skirmish. The powers of an appellate court with respect to amendment are ordinarily to be exercised within the general framework of the issues so determined and not otherwise. In a case where, had the issue been raised in the court below, evidence could have been given which by any possibility could have prevented the point from succeeding, this Court has firmly maintained the principle that the point cannot be taken afterwards…
13 In VUAX, the following pertinent observation was made (at [46]):
In our view, the application for leave to rely upon the sole ground of appeal now raised should be refused. Leave to argue a ground of appeal not raised before the primary judge should only be granted if it is expedient in the interests of justice to do so: O'Brien v Komesaroff (1982) 150 CLR 310; H v Minister for Immigration & Multicultural Affairs; and Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd (2001) 117 FCR 424 at [20]-[24] and [38].
14 Their Honours in VUAX then quoted a portion of the passage from Coulton v Holcombe reproduced above and said, by particular reference to migration appeals (at [48]):
The practice of raising arguments for the first time before the Full Court has been particularly prevalent in appeals relating to migration matters. The Court may grant leave if some point that was not taken below, but which clearly has merit, is advanced, and there is no real prejudice to the respondent in permitting it to be agitated. Where, however, there is no adequate explanation for the failure to take the point, and it seems to be of doubtful merit, leave should generally be refused. In our view, the proposed ground of appeal has no merit.
15 Plainly enough from the above passage in VUAX, merit alone is generally not enough for the grant of leave, and the weaker the point, the greater the need for other aspects to be favourable, such as the explanation for not taking it below and prejudice to the opposing party. The issue of prejudice was not fleshed out in VUAX, and is of greater moment in cases of this kind for reasons that are developed below, related to the scheme of Part 8 of the Migration Act and the practical reality that cases decided in the appellate jurisdiction of this Court will invariably reflect the final resting place for the issues and arguments ventilated.
16 In addition to taking into account merit, the explanation for a point not being raised below and the question of prejudice, it was observed in Murad (at [20]) that "generally speaking, leave is more likely to be granted to permit a fresh issue to be raised on appeal where the new point turns only upon a question of construction or upon a point of law, or where the facts are not in controversy", citing Summers v Repatriation Commission [2015] FCAFC 36; 230 FCR 179 at [94], approved by a five member bench in Haritos v Commissioner of Taxation [2015] FCAFC 92; 233 FCR 315 at [79].
17 In BZD17 v Minister for Immigration and Border Protection [2018] FCAFC 94; 161 ALD 441 the Full Court observed on the topic of the scope and purpose of Part 8 of the Migration Act and the effective prejudice to the Minister that results where a point is raised for the first time in a migration appeal, at [28]-[29]:
… as Perram J emphasised in AAM15 v Minister for Immigration and Border Protection [2015] FCA 804; (2015) 231 FCR 452 (AAM15)[at [14]]:
… Pt 8 of the [Migration Act], which regulates judicial review of refugee determinations, ensures that there is one substantive trial in the Federal Circuit Court followed by one substantive appeal to this Court followed by a more cursory review by the High Court. If this Court, in substance, determines a case at first instance … this structure is thwarted because no appeal lies to the High Court other than by special leave which is rarely granted and then only on the grounds set out in s 35A of the Judiciary Act 1903 (Cth). If the matter is effectively tried in this Court then the appellant is denied a layer of appellate scrutiny.
The approach adopted by his Honour in AAM15 is consistent with the fact that, following the advent of special leave to appeal to the High Court, intermediate courts of appeal ought in general to be regarded as the final courts of appeal: Morris v R (1987) 163 CLR 454 at 475 (Dawson J) cited with approval in Smith Kline & French Laboratories (Aust) Ltd v Commonwealth (1991) 173 CLR 194 at 217-218 (the Court). As, by analogy, Kirby J, writing extra-judicially, has observed:
The interposition of the Court of Appeal in England produced 'two tier appeals', with a further avenue of appeal to the House of Lords, either by leave of the Court of Appeal or by the Law Lords themselves. However, as Sir Raymond Evershed explained in 1951, '[t]he Court of Appeal is the final court, in fact, for ninety-five per cent of the civil cases.' The same was quickly to prove the case after the creation of the Australian permanent courts of appeal.
(Kirby, M, "Judicial Supersession: The Controversial Establishment of the New South Wales Court of Appeal" (2008) 30(2) Sydney Law Review 177)
18 It follows that it may be important to consider whether, irrespective of merit, leave should be refused because the other factors are, individually or collectively, sufficient to exercise the discretion adversely. That will help to ensure that the ends do not justify the means driven by merit alone. The principles in Metwally and in Coulton v Holcombe, and the observations in each of the Full Court decisions cited above, should apply with even greater force and effect when it is not just an argument, issue, or even substantial change in the pleading that is new, but where the very basis upon which the case was brought in the court below has changed. In this case, the change is from a ground of asserted invalidity of a regulation, a purely legal point, to a ground of jurisdictional error, which turns on the facts and circumstances of the particular case at hand and the decision-making process that took place. The latter is a true trial point turning on executive error, rather than an appeal point turning on judicial error (albeit in relation to executive error).
6 In this case the appellants rely upon the observations of the Full Court of this Court in BUD17 v Minister for Home Affairs [2018] FCAFC 140 at [86], where it was said:
The appellant's proposed grounds of appeal include grounds that were not raised, or not clearly raised, before the Federal Circuit Court. The appellant therefore required leave to rely on those grounds: Coulton v Holcombe [1986] HCA 33; 162 CLR 1 at 7-8. At least in a case of this kind where the consequences for an appellant in leave being denied are serious and might work a substantial injustice, leave will be granted if the proposed grounds have substantial merit and there is no real prejudice to the respondent in permitting them to be raised: VUAX v Minister for Immigration and Multicultural and Indigenous Affairs [2004] FCAFC 158; 238 FCR 588 at [48], per Kiefel, Weinberg and Stone JJ.
7 This passage of the Court's reasons is entirely consistent with the observations of Bromwich J. It merely emphasises that the criterion of the nature and extent of any injustice that may result if the issue sought to be raised is not addressed becomes more acute by reason of the potential circumstances of the appellants.