Consideration
33 A number of points arise from the extracts of the Timber Creek line of decisions. First, on Mansfield J's postulation, endorsed by the High Court, if the claim group established that it would have put the compensation to work at a profit, then an award of compound interest may have been warranted. That threshold would appear, as the Commonwealth submitted, to require evidence beyond speculation or supposition.
34 Second, as appears from [264(1)] and [264(3)] of Mansfield J's reasons, the witnesses Josie Jones and Alan Griffiths were available and gave evidence about the use of funds and (relevantly in that case) the 'Bradshaw ILUA'.
35 Third, the type of evidence that Mr Kimmings purports to give may well be relevant to a claim for compound interest. I accept that some of the proposed evidence may be of a similar nature to that referred to by Mansfield J at [264(2)] in the first instance decision. I am prepared to proceed on the basis that it may otherwise have been admitted, had there been notice (including by identification of material facts), compliance with case management processes, a good explanation for delay, an opportunity for discovery of source documents and cross-examination, and absent significant prejudice. I will now turn to these matters.
36 It is not in issue that a decision as to whether evidence that is produced late may be tendered requires the exercise of a discretion that takes into account a number of matters, including the importance of the proposed evidence, the prejudice to other parties and whether there is an explanation for the delay: see generally Aon Risk Services Australia Limited v Australian National University [2009] HCA 27; (2009) 239 CLR 175 at [103] (Gummow, Hayne, Crennan, Kiefel and Bell JJ), speaking in the context of a late amendment to pleadings; and as referred to in the context of late evidence in Capic v Ford Motor Company of Australia Limited (Late Evidence) [2020] FCA 1117 at [24] (Perram J).
37 All of these matters fall to be weighed having regard to case management principles reflected in Part VB of the Federal Court of Australia Act 1976 (Cth) and in particular s 37M and s 37N. Parties are required to bring forward their cases frankly, prior to the final hearing. The case management system is designed to enable both the parties and the Court to be informed of the case each party intends to advance and to identify the real issues in dispute prior to trial.
38 In this case, I am not satisfied that there has been a satisfactory explanation for the delay in providing Mr Kimmings' affidavit, having regard to the particular circumstances. It is clear that Mr Kelly was investigating the role of MAWA from at least August 2022. It is unclear why its role came to his attention only then. Nor is it disclosed whether anyone else from the legal team at the NLC was aware of the role of MAWA at that time. Accepting that Mr Kelly only appreciated in August 2022 that MAWA might have relevant information, to suggest that delay was caused by the need to await audited financial accounts diminishes the relevance of the following:
(a) the affidavit deals with matters beyond the audited accounts, including the various transactions in which MAWA has been involved, and there is no suggestion that Mr Kimmings was not in a position to provide at least this evidence earlier than 29 May 2023 - he had been communicating with Mr Kelly since September 2022;
(b) even though it took some time to locate all of the audited accounts, they were available through ORIC and at the very latest they were all available in April 2023;
(c) despite this, and in the face of a pending trial and the obvious need to seek an extension of time to rely on any new affidavit, there is no explanation as to what happened in the weeks between the complete set of audited accounts being given to Mr Kimmings and provision of the affidavit;
(d) Mr Kimmings had access to a number of the audited accounts from December 2022;
(e) despite it being apparent from at least 2 March 2023 that Mr Kimmings was prepared to provide an affidavit (and it not clear why no formal request was made earlier), no effort was made to inform the Northern Territory or the Commonwealth that steps were being taken with respect to preparing evidence that might be relevant to the claim to compound interest, or the likely need for there to be supplementary discovery and additional evidence - nor was there any offer to provide some of the information, even if at that stage it may have been incomplete; and
(f) despite the fact that it must have been obvious that there was a pressing need to apply for an extension of time to file the affidavit, no application for an extension of time was filed or anticipated.
39 The delay is to be viewed against the backdrop of both the absence of prior disclosure about the affidavit to the Northern Territory and the Commonwealth, and the fact that the points of claim do not set out the material facts relied upon and do not particularise the claim in any way. Further, the difficulty created by the absence of reference to material facts and particulars is heightened in circumstances where the applicants do not use the language of Mansfield J in the pleading to the effect that had it been received earlier, the claimants would have put the compensation to work at a profit. Instead, they plead that they may have done so - that is, that the possibility is sufficient to give rise to a claim. Senior counsel for the Commonwealth observed that the inadequacy of the pleading of the claim for compound interest (or a claim by analogy with a Hungerfords type claim) has made it difficult to assess the purpose of the affidavit or make informed decisions about whether to cross examine, and if so, on what matters. It was submitted that it is not enough to put on evidence by affidavit and point to the reasons in Timber Creek and say, in effect, that 'our case is like that'. That does not meet the requirement of frank disclosure, a requirement that should be met by proper pleading of material facts. There is force in those submissions.
40 In my view there is significant prejudice to the Northern Territory which weighs heavily against the grant of an extension of time to rely upon the affidavit. The prejudice arises from the nature of the evidence and the absence of any opportunity to properly test it. I infer from their nature that the history of MAWA's activities and the transactions referred to by Mr Kimmings would be reflected at least in part in documents. The financial arrangements referred to by Mr Kimmings are not without a level of commercial and financial complexity, involving a number of different entities. The Northern Territory would ordinarily be entitled to seek discovery of relevant documents, to seek to issue subpoenas to third parties as appropriate, to retain a forensic accountant (or similar) to assess the accuracy of the audited financial statements and other documents, and importantly, to cross examine the witnesses who have an involvement with MAWA about those matters. It can no longer do so, without the trial in effect being derailed. Witnesses who may have given relevant evidence under cross-examination have already given evidence. To the extent the applicants submitted that the Northern Territory's prior knowledge of MAWA's existence mitigated prejudice, I do not agree. It was not for the Northern Territory to speculate as to whether the applicants would rely on any evidence relating to MAWA and to then make its own inquiries based on such speculation.
41 I am aware of the potential significance of evidence of the nature of that which the applicants now seek to tender. I have given that significance careful consideration. Although the applicants may well face other hurdles with respect to their claim for compound interest (and this remains to be seen), I do not make this decision lightly. However, in my view the very late attempt to rely on the affidavit (particularly in the face of programming orders), the absence of a good reason for various parts of the lengthy delay, and the significant prejudice to the Northern Territory persuade me that Mr Kimmings' affidavit should not be received.
42 Finally, and separately, I note that the reference to evidence of Martyn Gray in the points of claim was to evidence 'to be filed'. Evidence was purportedly provided by an affidavit of Martyn Grey filed 4 October 2022 that included a summary table he prepared relating to records said to be held by the NLC of dealings in Aboriginal land. The Northern Territory and Commonwealth have had notice of its contents since around that date. Its tender was rejected on the basis of a hearsay objection and I was not satisfied that a direction should be made under s 50(1) of the Evidence Act 1995 (Cth), having regard to the nature of the various documents and these proceedings. However, the potential remains for some or all of the source documents to which Mr Gray referred to be separately tendered. It is not necessary to address this issue further at this point.