Does s 85A of the NTA apply?
4 Section 43 of the FCA Act is the statutory source of the Court's power to award costs in all proceedings before the Court, save for those Acts that make other provision. Section 43(1) provides that the Court or a judge has jurisdiction to award costs in all proceedings before the Court "other than proceedings in respect of which this or any other Act provides that costs must not be awarded", subject to particular statutory provisions not presently relevant. By s 43(2) and "[e]xcept as provided by any other Act", the award of costs is in "the discretion of the Court or Judge". It is understood that when the Court or judge exercises the costs discretion under s 43, that discretion must be exercised judicially: see Ruddock v Vadarlis (2001) 115 FCR 229 at [9]-[10]; [2001] FCA 1865.
5 Section 85A of the NTA provides that:
(1) Unless the Federal Court orders otherwise, each party to a proceeding must bear his or her own costs.
Unreasonable conduct
(2) Without limiting the Court's power to make orders under subsection (1), if the Federal Court is satisfied that a party to a proceeding has, by any unreasonable act or omission, caused another party to incur costs in connection with the institution or conduct of the proceeding, the Court may order the first-mentioned party to pay some or all of those costs.
6 Section 85A of the NTA is not an Act that provides that costs must not be awarded and so it is not a disqualification of the "jurisdiction" to award costs conferred on the Court by s 43(1). However, it is a provision that affects the exercise of the costs discretion, and so falls within the qualification "except as provided by any other Act" for the purposes of s 43(2).
7 The question then is, having regard to s 85A, whether it applies in the particular context of this proceeding commenced by Mr Corunna.
8 The first question of construction relates to the type of "proceeding" to which s 85A(1) refers.
9 Section 85A appears in Div 1A of Pt 4 of the NTA. Section 80, the first provision in Div 1A, deals with the "Operation of Part" and provides that:
The provisions of this Part apply in proceedings in relation to applications filed in the Federal Court that relate to native title.
10 Thus, a "proceeding" for the purposes of s 85A will be one which can be characterised as a proceeding in relation to applications filed in the Federal Court that relate to native title.
11 It will immediately be noticed that this composite expression engages two qualifying expressions: "in relation to" and "that relate to" native title. Ordinarily, expressions like these expand, rather than contract, the range of matters that fall within a particular category or class described.
12 Section 80, however, is very much a headline provision dealing with, as it states in the heading, the operation of Pt 4.
13 Section 81 immediately proceeds to indicate what the jurisdiction of the Federal Court is, in the following terms:
The Federal Court has jurisdiction to hear and determine applications filed in the Federal Court that relate to native title and that jurisdiction is exclusive of the jurisdiction of all other courts except the High Court.
14 Again, it will immediately be noticed that the Court's jurisdiction that is made exclusive (except in the case of the High Court) is in respect of applications filed in the Federal Court that relate to native title. That composite expression also engages two terms: "applications filed in the Federal Court" that "relate to native title". The first implies applications filed in relation to which the Court has jurisdiction, and the second identifies the character or nature of the application.
15 Section 61, within Div 1 (entitled "Applications to the Federal Court: native title and compensation") of Pt 3, deals with "Native title and compensation applications" and includes native title determination applications, non-claimant applications and compensation applications.
16 Section 69(1), which falls within Div 1A (entitled "Other applications to the Federal Court") of Pt 3 and is headed "Applications that may be made", includes claim registration applications, applications to remove an agreement from the Register and applications about the transfer of records.
17 Section 69(2), which has the subheading "Other applications", however further provides that:
This Division also applies to any other application to the Federal Court in relation to a matter arising under this Act.
(Emphasis added.)
18 Here, the terms of s 213(2) should also be mentioned, as it appears to be the particular provision that confers on the Court the jurisdiction to deal with "matters arising under this Act":
(2) Subject to this Act, the Federal Court has jurisdiction in relation to matters arising under this Act.
19 It should further be noted, in passing, that s 213(2) appears to involve the specific conferral of a jurisdiction that is otherwise conferred on the Court as part of its "original jurisdiction" by s 39B(1A)(c) of the Judiciary Act 1903 (Cth), which provides:
(1A) The original jurisdiction of the Federal Court of Australia also includes jurisdiction in any matter:
…
(c) arising under any laws made by the Parliament, other than a matter in respect of which a criminal prosecution is instituted or any other criminal matter.
20 Section 213 of the NTA has been in the same terms since the NTA was enacted in 1993; and the full terms of it are:
Native title to be determined in accordance with this Act
(1) If, for the purpose of any matter or proceeding before the Federal Court, it is necessary to make a determination of native title, that determination must be made in accordance with the procedures in this Act.
Matters arising under this Act
(2) Subject to this Act, the Federal Court has jurisdiction in relation to matters arising under this Act.
21 Section 39B(1A) of the Judiciary Act, conferring a more general original jurisdiction on the Court, was inserted more recently, in April 1997.
22 Of these competing or overlapping provisions and their history, in The Lardil Peoples v State of Queensland (2001) 108 FCR 453 at [41]-[42]; [2001] FCA 414, French J (as his Honour then was) observed:
Section 213 of the NTA stands unamended since 1993. Section 39B(1A) of the Judiciary Act confers general jurisdiction on the Court in matters arising under a law of the Commonwealth. The generality of that grant of jurisdiction is subject to any restrictions imposed by statute in respect of any particular subject matter. Such a restriction, albeit of a procedural character, may be seen as imposed by s 213(1) of the NTA. Prior to the 1998 amendments the jurisdiction of the Court to decide a native title determination application did not arise until the application had been lodged with the National Native Title Tribunal, the National Native Title Tribunal had failed to resolve it and the matter had been referred to the Court under s 74. This was the effect of ss 80 and 81 prior to the 1998 amendments. The amendments altered the process so that applications for native title determination were thereafter to be commenced as proceedings in the Court and referred to the Tribunal for mediation subject to the power of the Court to terminate such mediations. This is reflected in the current form of ss 80 and 81. The restriction set out in s 213(1) remains but seems to have little effective operation in light of the new procedures.
The jurisdiction of the Court under the NTA prior to the 1998 amendments, was referred to by the High Court in Fejo v Northern Territory (1998) 195 CLR 96 at 123. That case concerned proceedings for declaratory and injunctive relief brought on behalf of the Larrakia People in respect of the grant of a lease over land in relation to which they asserted native title. The Court however did not determine the jurisdictional question, focusing rather upon the requirements for interlocutory injunctive relief. The application in the Fejo case was initiated in the Federal Court after the enactment of s 39B(1A) of the Judiciary Act. There was no discussion of the relationship between s 213 of the NTA and s 39B(1A) of the Judiciary Act. An assumption was made for the sake of argument that the 'matter … arose under the Act so as to attract the jurisdiction of the Federal Court' (123).
23 Returning to s 81, on the face of it, a reasonable construction of the long expression "applications filed in the Federal Court that relate to native title" used there picks up the sorts of applications to which both ss 61 and 69 refer. This first blush construction though, may be altered by consideration of the immediately following words of s 81: "and that jurisdiction is exclusive". If, as a matter of construction, an application not under s 61, but say under ss 213(2) and 69(2), concerns an issue arising under the NTA, is the Court's jurisdiction in respect of the application "exclusive"? Section 81 suggests it is. If it is not, then on the proper construction of the NTA, it may be argued that s 85A is only intended to affect the award of costs in a proceeding where the Court exercises exclusive jurisdiction. This is not an easy issue to resolve.
24 In Cheedy v Western Australia (No 2) (2011) 199 FCR 23; [2011] FCAFC 163, the Full Court (North, Mansfield and Gilmour JJ) at [35] said that the reference to "a proceeding" in s 85A takes its meaning from ss 80 and 81. Their Honours added that the textual references referred to earlier in their judgment indicated that applications that "relate to native title", referred to in s 81, should not be unduly confined to proceedings claiming a determination of native title or compensation under s 61. Their Honours said that where the provisions of Div 1A (of Pt 4) are intended to be so confined, they expressly say so.
25 At [36], the Full Court added that the specific provisions referred to in ss 84 and 84C (that is ss 61, 61A and 62) are in Div 1 of Pt 3 dealing with native title and compensation applications; and that the more general operation of the other provisions in Div 1A must either be confined to the three discrete applications in s 69(1) or have a more broad application.
26 At [37], their Honours said the expression "relate to native title" is on its face a wide expression and stated:
It is in the context of Pt 3 encompassing not just applications to the Court made under Pt 3, Div 1 but also applications to the Court referred to in Div 1A, which includes s 69(2) providing for 'any other application' to the Court in relation to a matter arising under the NT Act.
27 Their Honours further considered that the limited right of appeal from decisions of the National Native Title Tribunal on a "right to negotiate" arbitral application under s 169, which was the nature of the proceeding before the Court in that case, would also be in contemplation of s 69(2).
28 The Court then said, at [39], that the decision whether s 85A applies directly should not be made by reference to whether the Court is exercising exclusive or non-exclusive jurisdiction, but rather by reference to the terms of s 85A, its position in the NTA and surrounding provisions, and the textual terms, in that case, of s 169 under which the proceeding arose.
29 Their Honours, at [41], however, also noted what Greenwood J had said in Akiba v Queensland (2010) 184 FCR 406 at [45]-[46]; [2010] FCA 321, concerning what Dowsett J, with whom French J agreed, had said in Lardil about s 85A:
In Lardil v Queensland 108 FCR 453, Dowsett J at [156] (French J agreeing at [68]), concluded that the jurisdiction conferred by Pt 4 supplements the operation of Pt 3 and that an application which relates to native title for the purposes of s 81 is an application made pursuant to Pt 3 (as contemplated by s 13(1) or s 50(2)). That, in their Honours' view, would not include 'any other application' referred to in s 69(2) or a "matter arising under the Act" for the purpose of s 213(2). Thus, their Honours considered that the conferment of jurisdiction pursuant to s 81 is limited to matters arising under Pt 3 (that is, as Dowsett J had earlier discussed, the three applications contemplated by s 61(1), namely, an application for a determination of native title; an application for revocation or variation of an approved determination of native title, or a determination of compensation under s 50(2)).
The point of the majority analysis is reflected in the conclusion at [157] that a 'proceeding' for the purposes of s 85A is a proceeding within the jurisdiction conferred by s 81 and does not apply to proceedings within the jurisdiction conferred in relation to matters arising under the Act. Since, in Lardil v Queensland, the Court was exercising the subject matter jurisdiction conferred by s 213(2), s 85A did not apply to those proceedings: [159].
30 The Court in Cheedy said the analysis of Greenwood J "accurately reflects the decision of the Full Court in that case", but that it did not directly deal with the issue whether an application under s 169 of the NTA attracted the direct application of s 85A.
31 Their Honours, at [42], said:
The role ascribed to s 69(2) in that case [Lardil] is inconsistent with the line of reasoning adopted above. It is, however, unnecessary to decide whether these appeals from the decision at first instance under s 169 of the NT Act are distinguishable from Lardil Peoples, since that case did not decide the point. Nor can it be considered it should not be followed as it is plainly wrong … That is because it is not necessary on these appeals to determine the issue.
32 The Court went on to say, at [43], that whether s 85A applied directly, or whether the Court applied the "spirit" of s 85A - by inference, in the course of the judicial exercise of the s 43 costs discretion - the result was the same. Their Honours explained, at [44], that that was because in the particular circumstances of that case it was not a matter where indemnity costs should be ordered.
33 In Cheedy (as here), the State, which was one of the parties to the appeal, did not seek a costs order when it was successful on the appeal; however, another party, Fortescue Metals Group (FMG), applied for costs on an indemnity basis or alternatively on a party/party basis.
34 The Full Court, having decided that indemnity costs were not appropriate, considered, having regard to the particular circumstances of the case, that there should be an order that the appellant in each appeal pay one half of the costs of FMG of each of the appeals. The reasons leading to that conclusion included the way the appellant conducted the appeal and the grounds actually pressed at the appeal.
35 As a result, the apparently differing approaches to the application of s 85A indicated in Lardil and Cheedy remain; although Cheedy expressly refrained from saying Lardil was wrong. Lardil, on the face of it, is binding on this Court, or at the very least is very persuasive authority on the point. But Cheedy is not irrelevant.
36 A number of other decisions of this Court have held that judicial review proceedings under the Administrative Decisions (Judicial Review) Act 1977 (Cth) are not "proceedings" under the NTA while nonetheless concerning matters arising under the NTA and its interpretation; and that s 85A does not directly apply to the exercise of the costs "jurisdiction" in relation to them. See, for example, Murray v Registrar of the National Native Title Tribunal (2003) 132 FCR 402; [2003] FCAFC 220; Northern Territory of Australia v Doepel (No 2) [2004] FCA 46.
37 In Stock v Native Title Registrar (No 2) (2014) 140 ALD 203; [2014] FCA 202 I also rejected a submission that a judicial review application to review the validity of the registration of a native title claim under the NTA was a proceeding to which s 85A applied. I found, at [15], that the proceeding related to the registration of a claimant application made under the NTA but that fact of itself did not give the judicial review proceeding the character of a proceeding related to native title. I said that, put another way, the relationship of the judicial review proceeding to native title was so indirect that it should not be considered a relationship that falls within the category of applications filed in the Court that "relate to native title".
38 In Lardil, the Full Court considered whether the appellants, registered native title claimants, could successfully challenge the decision of the State of Queensland (Acting Regional Harbour Master) to grant an authority to establish a buoy mooring within the area the subject of the appellants' claim. The primary application ultimately failed because there was no evidence to suggest that the future act in question would in fact affect native title rights and interests. French J, at [43], and Dowsett J, at [156]-[157], considered that the source of the Court's jurisdiction to hear and determine the proceeding was not pursuant to ss 81 or 213(1) of the NTA. However, their Honours considered the Court had jurisdiction to deal with it under s 213(2) of the NTA or s 39B(1A) of the Judiciary Act; and had the power to grant the declaratory or injunctive relief sought, if appropriate, under s 23 of the FCA Act.
39 Dowsett J, with whom French J agreed, decided that s 85A did not apply directly because the proceeding was brought pursuant to s 213(2) and was therefore not within the exclusive jurisdiction of the Court (at [150]). His Honour, at [153]-[159], said that the application of s 85A was confined to matters arising under the exclusive jurisdiction conferred by s 81 of the NTA and not merely matters that relate to native title.
40 Dowsett J, at [156], considered that it was difficult to avoid the conclusion that the jurisdiction conferred by Pt 4 of the NTA was intended to supplement the operation of Pt 3, that the conferment of jurisdiction pursuant to s 81 is limited to the matters arising under Pt 3 and that s 213(2) confers jurisdiction not otherwise expressly conferred under the NTA.
41 In other words, the majority view in Lardil must be taken to be that, on the proper construction of the NTA, the only jurisdiction that is exclusive to the Federal Court is that relating to applications made under Pt 3 (but not including applications under s 69(2) and jurisdiction conferred by s 213(2) of the NTA or s 39B(1A) of the Judiciary Act).
42 In this case Mr Corunna sought to argue that he had a certain right under the NTA. His argument was that as a member of an unregistered native title claim group he was entitled under the NTA to separately authorise the relevant proposed indigenous land use agreements (ILUAs). On that issue I have found that he has no reasonable prospect of succeeding. But the issue raised, it must be said, was one "arising under" the NTA. It dealt directly with the proper construction of the NTA and whether or not it gave Mr Corunna the sort of right he contended for.
43 The case that Mr Corunna ran, therefore, was more akin to that of the appellants in Lardil than that of the appellant in Cheedy; and quite different from the judicial review cases such as that I decided in Stock and the other cases referred to above. This proceeding, unlike that in Cheedy, does not arise under a specific provision of the NTA.
44 Under the prevailing authority of Lardil, the originating application made by Mr Corunna is not one that falls within the exclusive jurisdiction of the Court. On the basis that s 85A of the NTA only applies to an application of that nature, s 85A cannot apply in the circumstances of this proceeding.
45 It might be said there is good reason for such an outcome. It might be considered a surprising outcome if, by force of the expression in s 81 of the NTA- "and that jurisdiction is exclusive" - the Federal Court gained an exclusive jurisdiction in respect of proceedings commenced in the Federal Court under s 213(2) of the NTA. Certainly there is nothing in that provision or in s 39B(1A)(c) of the Judiciary Act to suggest that a proceeding commenced in the Federal Court under such provisions falls into the exclusive jurisdiction of the Court.
46 As Dowsett J noted in Lardil, at [158], in Brownley v Western Australia (No 2) (1999) 95 FCR 172; [1999] FCA 1431, Lee J was concerned with an application for judicial review of a decision of the National Native Title Tribunal but concluded that such proceedings were not within the jurisdiction conferred by s 81 and therefore not subject to s 85A. Lee J observed, at [21], that the Federal Court's jurisdiction under the Administrative Decisions (Judicial Review) Act 1977 (Cth), under which that proceeding was brought, was not exclusive, and that:
It would be most unlikely that Parliament intended to establish different 'rules' in respect of the costs of litigation in a federal matter depending upon the choice of forum.
47 That is a valid and important point to note and it was a point of significance in Dowsett J's judgment in Lardil at [159].
48 In short, it seems to me that I should apply the reasoning in Lardil because it is not plainly wrong. That reasoning precludes Mr Corunna's application being considered one to which s 81 and therefore s 85A of the NTA apply.
49 I find that s 85A does not apply to the exercise of the costs discretion in this proceeding.
50 In these circumstances, the question does not arise whether s 85A(1) should be applied in this proceeding or whether Mr Corunna should pay costs in whole or in part to SWALSC having regard to the terms of s 85A(2).