Review for alleged legal unreasonableness
5 The requirement that a statutory power be exercised within the bounds of reasonableness is an implied condition of the statutory conferral of the power that arises by applying common law principles concerning the interpretation of statutes: Minister for Immigration and Border Protection v SZVFW [2018] HCA 30; (2018) 264 CLR 541 at [53] (Gageler J), [80] (Nettle and Gordon JJ), [131] (Edelman J); and Minister for Home Affairs v DUA16 [2020] HCA 46; (2020) 271 CLR 550 at [26] (Kiefel CJ, Bell, Keane, Gordon and Edelman JJ). The precise content of that which is required must be determined as a matter of statutory construction of the relevant provisions. Part of that process will involve a consideration of the nature of the repository of the power: SZVFW at [51]-[53] (Gageler J), [84] (Nettle and Gordon JJ), [134]-[135] (Edelman J). The required threshold of legal unreasonableness is usually high: DUA16 at [26].
6 Whether the decision in a particular case meets the required standard of reasonableness (and is therefore within power) must be decided by the court on review based upon a consideration of the facts of the particular case: SZVFW at [61]-[70] (Gageler J), [84] (Nettle and Gordon JJ), [140]-[141] (Edelman J). It 'requires a close focus upon the particular circumstances of the exercise of the statutory power': DUA16 at [26].
7 In the usual case where the implied threshold is high, legal unreasonableness is a very confined ground of review: SZVFW at [61]-[70] (Gageler J). The authorities as to the nature and scope of review for legal unreasonableness in a case where the threshold is high and where the complaint is about fact finding were summarised in Vo v Minister for Home Affairs [2019] FCAFC 108; (2019) 269 FCR 566 (Derrington, Banks-Smith and Colvin JJ) at [43] in the following terms:
Where a complaint is made that there has been jurisdictional error by the Tribunal by reason of a breach of the implied standard of reasonableness in decision-making and the complaint is concerned with factual findings then the following matters pertain:
(1) the test for unreasonableness is stringent and extremely confined;
(2) where reasons have been provided then the reasons are the focal point for assessing whether the decision was unreasonable;
(3) unreasonableness will not be demonstrated on the basis of a complaint about the weight given to particular evidence or material because determination of the weight to be given to evidence or material is a matter entrusted to the Tribunal;
(4) it is for the Tribunal to reach conclusions about credibility and unreasonableness is not shown by complaints about credibility findings alone, but may be demonstrated where a finding on credit on an objectively minor matter of fact is used as a basis for rejecting the entirety of the claimant's evidence (a conclusion to be reached with a high degree of caution);
(5) generally speaking, the Tribunal has the authority to reach conclusions about the inferences that might be drawn from particular evidence or material;
(6) the Tribunal is not required to refer to every piece of evidence placed before it;
(7) in many instances, by reason of the nature of the Tribunal's statutory obligation to give reasons, it may be inferred that a failure to refer to a particular matter reflects the Tribunal's view that it was not material to its decision (although the positon may be different where there is a failure to consider a factual issue that is an essential integer of a claim or that would be dispositive;
(8) mere strong disagreement with factual reasoning does not establish jurisdictional error;
(9) a decision (not just a part of a decision) which lacks an evident and intelligible justification is unreasonable;
(10) a decision that no reasonable person could have arrived at is one circumstance in which the decision may be unreasonable, but there may be others - the category is not limited to such instances; and
(11) there must be an error that is so grave both as to its nature and the significance of its subject matter that it results in a decision that has been reasoned in a manner that it is not authorised.
(citations omitted)
8 Further, as was stated in Tsvetnenko v United States of America [2019] FCAFC 74; (2019) 269 FCR 225 at [85] (Besanko, Banks-Smith and Colvin JJ):
[R]eview for legal unreasonableness concerns the overall character of an administrative decision. Erroneous or illogical reasoning at a particular point in the decision-making process may or may not lead to the conclusion that the decision as a whole fails to conform to the implied statutory standard of reasonableness.
9 The same approach pertains to claims of alleged jurisdictional error characterised in terms of irrationality and illogicality: Minister for Immigration and Citizenship v SZMDS [2010] HCA 16; (2010) 240 CLR 611 at [119]; BHD18 v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2020] FCAFC 151; (2020) 280 FCR 26 at [29]; and Minister for Immigration and Border Protection v MZZMX [2020] FCAFC 175; (2020) 280 FCR 1 at [23]-[26].
10 Nevertheless, it is possible for the sheer number of errors made in the reasoning process of a decision-maker to lead to the conclusion that an implied statutory requirement for reasonableness as to the making of the decision has not been met: see, for example, the recent decision by Stewart J in WCJS v Minister for Home Affairs [2021] FCA 1093. It was a basis for review that was entertained by all members of the Full Court in BHL19 v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2020] FCAFC 94; (2020) 277 FCR 420. In that case Bromwich J, White J agreeing, recognised the possibility of unreasonableness by a series of errors but did not accept that such a case had been made out: at [347]. Wigney J, in dissent, would have upheld the claim of jurisdictional error on such a basis: at [148]-[150].
11 Two matters must be borne in mind. Firstly, as noted by Brennan J in Norbis v Norbis (1986) 161 CLR 513 at 541: 'It is harder to be satisfied that an administrative body has acted unreasonably [than a judicial body exercising a judicial discretion], particularly when the administrative discretion is wide in its scope or is affected by policies of which the court has no experience'.
12 Secondly, where an administrative decision maker articulates in reasons the justification for the exercise of the discretionary power then the justification as articulated must be sufficiently plausible and coherent that, when scrutinised with an eye properly attuned to the first matter, it is a reasonable justification in the sense that it is an evident and intelligible justification for bringing the case within the scope of the discretion. As explained by Allsop CJ, Robertson and Mortimer JJ in Minister for Immigration and Border Protection v Singh [2014] FCAFC 1; (2014) 231 FCR 437 at [47]:
The 'intelligible justification' must lie within the reasons the decision-maker gave for the exercise of the power - at least, when a discretionary power is involved. That is because it is the decision-maker in whom Parliament has reposed the choice, and it is the explanation given by the decision-maker for why the choice was made as it was which should inform review by a supervising court. … If a supervising court goes outside the reasons given by a decision-maker for another justification for the exercise of power, that court might then be seen to be placing itself in the position of the repository of the power and therefore acting impermissibly. Where there are reasons, either the reasons given by the decision-maker demonstrate a justification or they do not. It would, we think, be a rare case where the reasons demonstrate a justification but the ultimate exercise of the power would be seen to be legally unreasonable.
13 So, where the reasons (that is, the whole of the reasons) given for the exercise of a statutory discretion, upon due examination, are shown to be illogical, irrational or insufficient, an unreasonableness error is demonstrated, namely an exercise of discretion for explicit reasons that provide no reasonable support for the way the discretion has been exercised. However, in considering whether there has been an unreasonable exercise of discretion there must be due regard to the breadth of the discretion and the extent to which it may be guided by matters of policy.
14 In such cases, the complaint is not that the result is unreasonable in the sense that it is outside the range of those outcomes that might have been justified by a reasonable decision-maker, but rather that the result was reached by a process of reasoning that was so unreasonable that it lacked the quality necessary to support the exercise of discretion that the statute required. The deficiency in the reasons shows that requirement that there be a reasonable exercise of the discretion has not been performed. Therefore, 'a decision on factual matters essential to the making of a finding by a decision-maker … can be reviewed on the basis that the reasoning which led to the decision was irrational or illogical irrespective of whether the same conclusion could be reached by a process of reasoning which did not suffer from the same defect': Duncan v Independent Commission Against Corruption [2016] NSWCA 143 at [287] (Bathurst CJ, Beazley P agreeing).
15 Finally, the case for the applicant was advanced on the basis that materiality needed to be demonstrated in addition to unreasonableness. That is not correct: MZAPC v Minister for Immigration and Border Protection [2021] HCA 17 at [33] (Kiefel CJ, Keane, Gageler and Gleeson JJ). As unreasonableness is a ground of review that concerns the whole of the outcome or the whole of the reasons, it embodies a consideration of the consequence of any alleged flaw for the outcome or the overall reasoning process. It either assumes from the unreasonableness of the outcome that something must have gone wrong in a fundamental way or it requires a conclusion that the reasoning as a whole is so flawed that it cannot meet the implied condition of reasonableness that qualifies the valid exercise of the decision making power.
16 The distinction is significant in the present case because certain of the contentions advanced in support of the single ground of unreasonableness advanced by reference to the content of the Tribunal's reasons might have been framed as errors of another kind, perhaps as a failure to comply with the Direction. However, had that course been followed it would have been necessary to demonstrate materiality such that the particular error could have affected the outcome. Unreasonableness, on the other hand, allows for a form of aggregation of flaws in the reasons to support a conclusion that the reasons as a whole do not meet the required implied standard of reasonableness irrespective of whether any one flaw may have been sufficient in and of itself to support that conclusion. It allows for the possibility that a number of errors may combine to make the whole of the Tribunal's reasoning unreasonable. It also recognises that one fundamental factual error or lack of coherence in reasoning though not a basis for some other ground of review for jurisdictional error may amount to such an error because it makes the whole decision or the whole of the reasons unreasonable in the requisite sense.