…
58 Section 355(1) provides that an Arbitrator is not to make an award or otherwise determine a dispute referred to the Commission for determination without first using the Arbitrator's best endeavours to bring the parties to the dispute to a settlement acceptable to all of them. There is a clear emphasis in the WC Act on resolving disputes by conciliation; conciliation must first be attempted before arbitration. The objective is to settle matters in the form of 'durable agreements'.
59 In Kuligowski at [32] the High Court referred to the goal of Western Australian workers' compensation legislation of:
[H]aving workers' compensation disputes heard and determined in an informal, quick and cheap manner would not be assisted by a construction of the legislation which prevented the doctrine of issue estoppel from ever applying. That would increase the chance of double litigation of issues and vexation of parties.
60 We think these observations apply with equal force to the New South Wales legislation.
Later proceeding
61 It was submitted his Honour erred in finding the issue estoppel claimed in the absence of actual legal proceedings making a claim for an on duty injury benefit under the Award. The appellant argued that the respondent had failed to take into account the essential nature of an issue estoppel. By definition, it was submitted, issue estoppel only arose in the context of proceedings subsequent to those wherein the findings of fact or determinations of law which were said to give rise to an issue estoppel took place, and where the same issues of fact or law arose for determination.
62 The appellant submitted that in the absence of some second set of proceedings, where the same issues arose for determination, an issue estoppel, by definition, could not arise. It was submitted that an application seeking declaratory orders could not be those second set of proceedings; an application for a Declaration of Right seeks a declaration with respect to existing facts, rights or obligations. What the respondent sought in its application was the application of a common law doctrine relating to a hypothetical set of circumstances and not to existing facts, rights or obligations.
63 The appellant referred to what Dixon J said in Blair v Curran at 464:
A judicial determination directly involving an issue of fact or of law disposes once for all of the issue, so that it cannot afterwards be raised between the same parties or their privies. The estoppel covers only those matters which the prior judgment, decree or order necessarily established as the legal foundation or justification of its conclusion, whether that conclusion is that a money sum be recovered or that the doing of an act be commanded or be restrained or that rights be declared. The distinction between res judicata and issue estoppel is that in the first the very right or cause of action claimed or put in suit has in the former proceedings passed into judgment, so that it is merged and has no longer an independent existence, while in the second, for the purpose of some other claim or cause of action, a state of fact or law is alleged or denied the existence of which is a matter necessarily decided by the prior judgment, decree or order.
64 The appellant also made reference to what Barwick CJ said in Ramsay v Pigram (1968) 118 CLR 271 at 276:
Long standing authorities, in my opinion, warrant the statement that, as a mechanism in the process of accumulating material for the determination of issues in a proceeding between parties, an estoppel is available to prevent the assertion in those proceedings of a matter of fact or of law in a sense contrary to that in which that precise matter has already been necessarily and directly decided by a competent tribunal in resolving rights or obligations between the same parties in the same respective interests or capacities, or between a privy of each, or between one of them and a privy of the other in each instance in the same interest or capacity. The issue thus determined, as distinct from the cause of action in relation to which it arose, must have been identical in each case. Of its nature such an estoppel must be available to and operative in respect of each party; or, as it is said, estoppels must be mutual.
65 Neither of these authorities suggests that an application for declaratory relief could not constitute the 'second proceedings' referred to by the appellant. Further, it is notable that the appellant was not able to identify any authority to the effect that in proceedings for declaratory relief an applicant was not entitled to rely on issue estoppel.
66 The appellant submitted that:
A binding declaration of right must consider legal rights, privileges or power and what in fact has happened here is seeking something akin to an advisory opinion. There is nothing other than a hypothetical circumstance which may crystallise into a matter and some proceedings at some point, but it has not done so. Until that has occurred then what is being sought is merely hypothetical. Importantly it does not seek to attach to any particular right. That is the difficulty with it. There may be circumstances where a hypothetical proposition can be the subject of a declaration but this is not it.
67 The first thing to be said is that the Court's jurisdiction to make a declaration is a very wide one under s 154 of the Act. The only statutory restriction is that declarations of right may only be made in relation to a matter in which the Court has jurisdiction.
68 If the respondent had sought a bare declaration in relation to a hypothetical issue the court would not grant it under the relevant tests as outlined by Lockhart J (with whom Spender and Cooper JJ agreed) in Aussie Airlines Pty Ltd v Australian Airlines Ltd (1996) 68 FCR 406; (1996) 139 ALR 663 at 670-671:
For a party to have sufficient standing to seek and obtain the grant of declaratory relief it must satisfy a number of tests which have been formulated by the courts, some in the alternative and some cumulative. I shall formulate them in summary form as follows:
· The proceeding must involve the determination of a question that is not abstract or hypothetical. There must be a real question involved, and the declaratory relief must be directed to the determination of legal controversies: Re Judiciary Act 1903 and Navigation Act 1912 [1921] HCA 20; (1921) 29 CLR 257. The answer to the question must produce some real consequences for the parties.
· The applicant for declaratory relief will not have sufficient status if relief is "claimed in relation to circumstances that [have] not occurred and might never happen": University of New South Wales v Moorhouse [1975] HCA 26; (1975) 133 CLR 1 at 10; 6 ALR 193 per Gibbs J; or if the court's declaration will produce no foreseeable consequences for the parties: Gardner v Dairy Industry Authority New South Wales (1977) 18 ALR 55; 52 ALJR 180 per Mason J at 180 and per Aickin J at 189.
· The party seeking declaratory relief must have a real interest to raise it: Forster v Jododex Australia Pty Ltd [1972] HCA 61; (1972) 127 CLR 421 per Gibbs J at 437 and Russian Commercial and Industrial Bank v British Bank for Foreign Trade Ltd [1921] 2 AC 438 per Lord Dunedin at 448.