86 As to the submission that a reasonable bystander might think that I had prejudged the iniquity issue, in Cannar the issue was not whether or not the documents in question were deprived of privilege or confidentiality by iniquity, but whether the use that had been made of documents which had been held (by the Victorian Court of Appeal) to be privileged rendered the proceedings an abuse of process. That is a different issue from whether or not the documents were disentitled to privilege or confidentiality by reason of iniquity. BATAS' case in Cannar, as stated in the submissions that I settled, commenced from the proposition that the Victorian Court of Appeal had held that the documents were privileged, and had made orders to endeavour to remedy the consequences of what it held to be the erroneous first instance decision that there had been a waiver, and which upheld the claim for privilege. There is nothing in the submissions that I settled, nor in the judgment of Bell J, to suggest that the iniquity issue was raised in the Cannar proceedings, or that I was called upon to consider, advise on, or advocate a position in respect of it. Just because iniquity may be a reason for overriding a claim of privilege or confidentiality does not mean that it is necessarily considered or addressed when such a claim is advanced, particularly when a Court of Appeal had already upheld the claim for privilege. I do not accept that the iniquity issue was a live one in Cannar.
87 Iniquity does not appear to have been raised in McCabe: Eames J's first instance decision to admit the documents despite the claim for privilege was founded not on iniquity but on waiver, and the Victorian Court of Appeal's decision was that his Honour had erred in finding waiver.
88 In the present proceedings, the iniquity issue would arise in a different evidentiary context, illuminated by arguments that were not raised or addressed in Cannar. Accordingly, I do not accept that there is a substantial overlap between the issue in respect of which I was engaged in Cannar and what will be apparently the main issue in these proceedings, namely, iniquity - or, as was submitted for Slater & Gordon, that "there is simply no difference in the substantive privilege issues arising in this proceeding and the substantive privilege issues arising in Cannar and the substantive issues that arose in McCabe". In McCabe, the privilege issue was one of waiver, not iniquity. In Cannar, there was no substantive privilege issue; the issue being whether BATAS' apparently already established claims for privilege and confidentiality were a ground on which it might be permitted to intervene, and whether the use made of BATAS' documents in respect of which that privilege and confidence was asserted, to procure the issue of the letter of request and the order for examination, rendered the proceedings an abuse of process. There was just no live issue about whether the documents were entitled to privilege or not, that issue having apparently been resolved by the Victorian Court of Appeal.
89 It follows that I do not accept that there could be a reasonable apprehension that I might have prejudged the iniquity issue. In my judgment, the case is similar to but a fortiori the decision in A1 v King, since in that case there was a common defect in the notice the subject of the advice and the notice the subject of the proceedings, whereas in this case iniquity just did not arise in Cannar.
The pre-disposition point
90 The submission that a reasonable bystander might think that, having advocated for BATAS the cause which I would now be called upon to judge, I might be predisposed to find for BATAS, particularly when it would be argued that BATAS' cause (and thus the cause that I advocated) was an improper one, on account of a natural disinclination to find that a cause in which one had been engaged involved iniquity, involves two elements.
91 Insofar as it was put that I was engaged as counsel to achieve the very same purpose now sought to be achieved in these proceedings before me now, no longer as counsel but as judge, that is no more than a submission that having once advocated a cause, counsel on becoming a judge is disqualified from deciding it. Such a proposition would assume that having made submissions on an issue as counsel, a judge, after hearing evidence and argument, would be unable to determine impartially the issue that those submissions addressed. Thellusson v Lord Rendlesham, Gascor and A1 v King show that proposition to be incorrect; although the last of those cases concerned advice and not advocacy, as I have explained there is even less reason to apprehend prejudgment in the case of advocacy as distinct from advice, because adoption of a personal position by counsel is implicit in advice but not in advocacy, and the lay observer is to be taken to understand that.
92 Nonetheless, there is force in the submission that the reasonable bystander might think that, having advocated BATAS' cause in that case through the written submissions, I was (even if unwittingly) involved in what Slater & Gordon propose to contend was an iniquitous course of conduct involving the suppression of relevant evidence for the purpose of perpetuating a miscarriage of justice, and I might be naturally predisposed on that account against finding iniquity, since it might be embarrassing to conclude that the cause which one was advocating was, knowingly or not, an iniquitous one. In that sense, it could be said that I have an interest in the determination of the iniquity issue.
93 Although this does not fall precisely within the circumstances in which it was said in Polites that a judge should not sit - namely that a former legal advisor should not sit as a judge in a case if the advice went beyond an exposition of law and advised an adoption of a course of conduct to advance the client's interests, the efficacy, wisdom reasonableness or appropriateness of which would be in issue - because I am far from satisfied that what happened in Cannar will be a relevant issue in the present proceedings - nonetheless some might reasonably think that I had been sufficiently connected with an endeavour to preserve the confidentiality of the document management policy that it would be difficult for me - or at least, more difficult for me than it might be for others who had been not so involved - to conclude that the document management policy, or maintenance of confidentiality in respect of it, involved iniquity.
94 It is to be borne in mind that the test is a relatively undemanding "double might" one, requiring only that the reasonable lay observer might think that the judge might not bring an impartial mind to the matter and decide the case other than on its legal and factual merits (although this requires a real and not remote danger that the judge would do so [Locabail (UK) Ltd v Bayfield Properties Limited [2000] 2 WLR 870, 883 (CA)]. I have come to the conclusion that in this case a reasonable bystander might think that there was a real danger that I might be influenced, even unintentionally, by a natural inclination to avoid a conclusion that a cause with which I had been professionally associated, however briefly, was an iniquitous one, and that I should therefore not sit on a proceeding which would require me to consider the iniquity issue.
The extraneous material point
95 I am reinforced in that conclusion by the circumstance that, despite my assertions that I have no recollection of what comprised the 800 or so odd pages in my brief from Corrs, a lay observer might reasonably wonder whether I had been privy to special or extraneous material, which because it is protected by legal professional privilege cannot be known to the other parties, by which attitudes to the document management policy might consciously or subconsciously have been shaped or influenced, even if I did not now recall the detail. Although the observer is to be taken to know that judges are frequently expected to ignore inadmissible material of which they may gain knowledge, nonetheless a fair-minded lay observer might entertain a doubt as to whether my approach to and decision on the iniquity issue would be based only upon the evidence in open court, where I had apparently had access to a substantial amount of material in respect of which a claim for privilege was maintained, the detail of which could be known only to BATAS and not to Slater & Gordon, which circumstance might be perceived to advantage BATAS.
Does apprehended bias disqualify from interlocutory applications?
96 Accordingly, I have concluded that, objection having been taken, I should not sit on a proceeding in this matter in which the iniquity issue would require consideration. However, that does not mean that I am disqualified from all interlocutory aspects of the case.
97 As Mr Smith SC submitted, the question of apprehended bias must be considered in the context of the issues that the court has to decide. Thus, for example, in Livesey v NSW Bar Association (1983) 151 CLR 288, the test derived from the authorities was said to be that a judge should not hear a case if in all the circumstances the parties or the public might entertain a reasonable apprehension that he or she might not bring an impartial or unprejudiced mind to the resolution of the question involved in it [Re JRL, 349 (Gibbs CJ), 351 (Mason J)]. And in Aussie Airlines, where what was involved was the hearing of two preliminary questions, the judge identified the issue on the disqualification application as being whether the parties or the public might entertain a reasonable apprehension that as the trial judge he might not bring an impartial and unprejudiced mind to the resolution of the questions before him in the present case. These cases show that the question of apprehension of bias is inextricably interwoven with identification of the issues that the judge is called upon to decide. Accordingly, attention needs to be focussed separately on (1) the issues that may arise on the final hearing of the matter; (2) the issues that arose in the proceedings on 29 November 2006; and (3) the issues on the transfer application set down for hearing before me on 26 February 2007.