Applicable principles
62 Rule 36.10 of the Federal Court Rules allows an appellant, without leave of the Court, to amend a notice of appeal during the period of 28 days after filing the notice of appeal. Rule 36.11(1) of the Federal Court Rules allows a party to apply to the Court, constituted by a single Judge, for directions in relation to the management, conduct and hearing of an appeal. Rule 36.11(2)(b) permits a party to apply to the Court for an order giving leave to amend the grounds of appeal. Rule 36.11 places no limits on how the discretion conferred by r 36.11(2)(b) may be exercised.
63 In Aon Risk Services Australia Ltd v Australian National University [2009] HCA 27; (2009) 239 CLR 175 (Aon), the High Court found that a party did not have an entitlement to amend a pleading subject to payment of costs by way of compensation; JL Holdings at 154-155 was disapproved: see Aon at [6] and [30] (French CJ) and [95]-[98] (Gummow, Hayne, Crennan, Kiefel and Bell JJ). All matters relevant to the exercise of the power to permit amendment should be weighed. Case management concerns such as the fact of substantial delay and wasted costs and their effect on the parties, the court and other litigants assume importance on an application for leave to amend. Relevant matters would also include the nature and importance of the amendment to the party applying, the stage the litigation had reached when the amendment was sought, and the explanation for any delay in applying for amendment.
64 Another relevant issue is whether the new claim that an applicant wishes to include in the pleadings by way of an amendment would have been struck out under s 31A of the Federal Court of Australia Act 1976 (Cth) had it appeared in the original application: SZSRR at [48]-[52]. In Riva, Perry J summarised principles relevant to strike out under s 31A as follows:
45 First, the respondent as the moving party bears the onus of persuading the Court that the application has no reasonable prospects of succeeding: Australian Securities and Investments Commission v Cassimatis [2013] FCA 641; (2013) 220 FCR 256 (Cassimatis) at 271 [45] (Reeves J).
46 Secondly, the intention behind the enactment of s 31A is "to lower the bar for obtaining summary judgment (including summary dismissal) below the level that had been fixed by such authorities as Dey v Victorian Railway Commissioners (1949) 78 CLR 62 at 91-92, and General Steel Industries Inc v Commissioner for Railways (NSW) (1964) 112 CLR 125 at 129-130 …": White Industries Aust Ltd v Commissioner of Taxation [2007] FCA 511; (2007) 160 FCR 298 (White Industries) at 310 [54] (Lindgren J); see also Cassimatis at 271 [46] (Reeves J). In the cases to which Lindgren J referred in White Industries, the requirement had been expressed in such terms as "manifestly groundless" or "hopeless". As Hayne, Crennan, Kiefel and Bell JJ held in Spencer v The Commonwealth of Australia [2010] HCA 28; (2010) 241 CLR 118 (Spencer) at 139 [52]-[53]:
52. … effect must be given to the negative admonition in sub-s (3) that a defence, a proceeding, or a part of a proceeding may be found to have no reasonable prospect of successful prosecution even if it cannot be said that it is "hopeless" or "bound to fail". … [I]t is important to begin by recognising that the combined effect of sub-ss (2) and (3) is that the inquiry required in this case is whether there is a "reasonable" prospect of prosecuting the proceeding, not an enquiry directed to whether a certain and concluded determination could be made that the proceeding would necessarily fail.
53. In this respect, s 31A departs radically from the basis upon which earlier forms of provision permitting the entry of summary judgment have been understood and administered.
47 Thirdly, the assessment required by s 31A of whether a proceeding has no reasonable prospects of success necessitates the making of value judgments in the absence of a full and complete factual matrix and argument, with the result that the provision vests a discretion in the Court: Kowalski v MMAL Staff Superannuation Fund Pty Ltd [2009] FCAFC 117; (2009) 178 FCR 401 (Kowalski) at 408-409 [28] (the Court). That discretion includes whether to deal with the motion at once or at some later stage in the proceedings when the legal and factual issues have been more clearly defined: Butorac v WIN Corporation Pty Ltd [2009] FCA 1503 at [19] (Buchanan J); Cassimatis at 272 [50] (Reeves J).
48 In the fourth place, despite the threshold for summary dismissal having been lowered, the discretion must still be exercised with caution (Spencer at 131 [24] (French CJ and Gummow J) and 141 [60] (Hayne, Crennan, Kiefel and Bell JJ)). Consistently with this, the discretion is concerned "with the bringing and defending of proceedings, not just with pleadings; with substance, not just with form": White Industries at [50] (Lindgren J) (approved in Kowalski at 409 [30] (the Court); see also Spencer at [23] (French CJ and Gummow J)).
49 Finally, in his Honour's helpful explanation of how these principles are to be applied, Reeves J in Cassimatis further explains at 271-272 [46] that:
… the determination of a summary dismissal application therefore does not require a mini-trial based upon incomplete evidence to decide whether the proceedings are likely to succeed or fail at trial. Instead, it requires a critical examination of the available materials to determine whether there is a real question of law or fact that should be decided at trial. Each application for summary judgment or summary dismissal has to be determined according to its particular circumstances. What is required is a practical judgment of the case at hand. The relevant circumstances will partly depend upon the stage which the proceedings have reached. Among other things, this will affect the materials available to the Court considering the application, for example, whether pleadings have been exchanged, or discovery of documents has occurred.
50 To illustrate the application of these principles, Reeves J explained at [47] that the moving party is more likely to succeed if she or he demonstrates that the applicant's success relies on a question of fact that is fanciful, trifling, implausible, improbable, tenuous or contradicted by all the available documents or evidence. Conversely, his Honour explained that, as a general principle, such an application is unlikely to succeed where, on a critical examination of all the available materials, the Court is satisfied that there appears to be a real question of fact to be determined. The latter, in his Honour's view, is more likely to be the case where the available materials include pleadings that raise factual disputes that can truly be described as significant, substantial, plausible or weighty.
65 The principles applicable to whether leave should be granted to argue a ground for the first time on appeal (new ground) are well established. They are set out in the Full Court's decision in VUAX at [46]-[48] (Kiefel, Weinberg and Stone JJ) as follows:
46. … 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 [[2000] FCA 1348]; and Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd (2001) 117 FCR 424 at [20]-[24] and [38].
47. In Coulton v Holcombe (1986) 162 CLR 1, Gibbs CJ, Wilson, Brennan and Dawson JJ observed, in their joint judgment, at 7:
"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."
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. …
66 The Court has a discretion to receive further evidence in an appeal under s 27 of Federal Court of Australia Act and r 36.57 of the Federal Court Rules. Relevant principles were conveniently summarised in CKT20 v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2022] FCAFC 124 at [32]-[34] (Katzmann, Charlesworth and Burley JJ) as follows:
32 A convenient summary of the relevant principles on this subject appears in the judgment of the Full Court in Kedem v Johnson Lawyers Legal Practice Pty Ltd [2014] FCAFC 3 at [74]-[76] (North, Barker and Katzmann JJ). In short, the Court has a discretion to receive further evidence in an appeal. That discretion is conferred by s 27 of the Federal Court of Australia Act 1976 (Cth) (FCA Act). The power is not limited to "fresh" evidence, that is to say, evidence of which an appellant was unaware at the time of the original hearing and with reasonable diligence could not then have been obtained: CDJ v VAJ (No 1) (1998) 197 CLR 172 at [51]-[52] (Gaudron J). But that circumstance is not irrelevant. Moreover, despite the absence of express limitations in the section itself, the discretion is not at large. As the Full Court observed in Sobey v Nicol and Davies as Joint and Several Receivers and Managers of the Property of Mercorella and the Scheme and as Joint and Several Liquidators of the Scheme [2007] FCAFC 136; 245 ALR 389:
71 The discretion to receive further evidence must be exercised judicially, consistently with proper judicial process and in the interests of justice. It is highly unlikely that the legislature intended that s 27 should be construed in such a way as to obliterate the distinction between original and appellate jurisdiction.
72 The proper role of an appellate court under s 25 of the Federal Court Act … is ordinarily to correct error. Nothing in CDJ was, in our view, intended to minimise the force of the observation of Gibbs CJ and Wilson, Brennan and Dawson JJ in Coulton v Holcombe (1986) 162 CLR 1 at 7 …
33 Finally, the power is remedial: August v Commissioner of Taxation [2013] FCAFC 85; ATC ¶20-406; 94 ATR 376 at [116] (Siopis, Besanko and McKerracher JJ). An important consideration in determining whether it should be exercised is whether, if the further evidence had been available at the trial, it would have produced, or at least would be likely to have produced, a different result.
34 We would add to this summary one further observation. Section 27 of the FCA Act is one of the civil practice and procedure provisions covered by s 37M of the FCA Act. Section 37M(3) imposes an obligation on the Court to exercise any such power in the way that best promotes the overarching purposes of those provisions. That purpose is described in s 37M(1) as the facilitation of the just determination of disputes as quickly, efficiently and inexpensively as possible.
67 I will consider each of the grounds in the proposed amended notice of appeal in turn having regard to these principles.