Standing
10 Mr Ferdinands became a bankrupt on 2 September 2013. He was discharged from bankruptcy on 24 September 2016. Subject to certain exceptions, upon Mr Ferdinands becoming a bankrupt, his property vested in the Official Trustee and was divisible among his creditors: Bankruptcy Act 1966 (Cth) (BA), s 58.
11 So far as it can be understood, Mr Ferdinands' claim is founded, at least in part, on a breach of copyright subsisting in literary works allegedly authored by him. The orders sought in the proceedings are those specified in a proposed amended originating application annexed to an affidavit of Mr Ferdinands sworn on 28 March 2017. The document contains pleaded allegations of fact and law and is clearly intended to serve the purpose of a pleading. I will refer to it in these reasons as the Statement of Claim.
12 The relief sought by Mr Ferdinands in the action is expressed in the following terms (without alteration):
ORDERS
1. A declaration that the respondent has breached the Copyright Act pursuant to s.115 4 (a) (b) (i) (ia) and (ib), and pursuant to s.195AJ and 195AK 7, and pursuant to s.132AI.
2. An order requiring the respondent to make Phase 1 [March 2016 to December 2016 = $2,208,000.00] and Phase 2 [January 2017 to July 2017 = $5,325,000.00] payments for damages forthwith.
3. A declaration the respondent has acted in malice by declining to adhere to the laws of the State of South Australia as per s.17 of the Police (Complaints and Disciplinary Proceedings) Act (SA) 1985.
4. A declaration the respondent has acted in malice by declining to adhere to the laws of the State of South Australia as per s.5 and s. 7 of the Whistleblowers Protection Act 1993 (SA).
5. An order as to the conduct of the respondent is transferred malice.
6. Such further orders as the Court considers appropriate.
13 Section 115(1) of the Copyright Act 1968 (Cth) (CA) provides that the owner of a copyright may bring an action for its infringement. The respondent contends that Mr Ferdinands does not have standing to commence such an action because he was, at the time that the action commenced, an undischarged bankrupt. It was submitted that any chose of action in connection with the works pleaded in the Statement of Claim vested in the trustee of Mr Ferdinands' estate pursuant to s 58 and s 116 of the BA, and that although Mr Ferdinands was discharged from bankruptcy after the commencement of this proceeding, ownership of the copyright did not re-vest in him upon his discharge. The respondent relied on Daemar v Industrial Commission of New South Wales (No 2) (1990) 22 NSWLR 178 at 185 (Kirby P) and Silvia v Thomson [1989] FCA 394; (1989) 87 ALR 695.
14 It is to be borne in mind that the question of Mr Ferdinands' standing arises in the context of a summary dismissal application in which it is alleged that the proceedings have no reasonable prospects of success because there is no right to sue vested in Mr Ferdinands: r 26.01(1)(a) of the Rules. In that context, the respondent should demonstrate "a high degree of certainty about the ultimate outcome of the proceeding if it were allowed to go to trial in the ordinary way": Agar v Hyde (2000) 201 CLR 552 at [57] (Gaudron, McHugh, Gummow and Hayne JJ). See also Batistatos v Roads and Traffic Authority (NSW) (2006) 226 CLR 256 at [46] (Gleeson CJ, Gummow, Hayne and Crennan JJ). Whilst the Court is not required to determine that Mr Ferdinands' claim is "hopeless" or "bound to fail": Spencer v The Commonwealth (2010) 241 CLR 118 at [56] - [58] (Hayne, Crennan, Kiefel and Bell JJ), it must nonetheless be borne in mind that the discretion to summarily dismiss an action is not to be exercised lightly.
15 An order for summary judgment against Mr Ferdinands on the basis that he does not have standing to sue, should not be granted for three reasons.
16 First, the circumstances in which Mr Ferdinands was discharged from bankruptcy are unknown. It is unclear, for example, whether the discharge occurred in circumstances where there was a surplus in the bankrupt estate. The respondent has not established on the facts or the law that the former trustee of Mr Ferdinands' bankrupt estate presently remains the owner of any copyright alleged to subsist in the works referred to in the Statement of Claim.
17 Second, the relief sought in the proceedings includes remedies under Pt IX of the CA in respect of (at least) the moral rights of Mr Ferdinands as the alleged author of literary or artistic works. Moral rights are in addition to any other rights in relation to a work that the author or anyone else has under the CA: s 192(1). Section 195AI of the CA provides that the author of a work has a right of integrity of authorship, being a right not to have the work subjected to derogatory treatment. The expression "derogatory treatment" in relation to a literary work is defined to mean the doing of anything that results in the material distortion of, the mutilation of, or a material alteration to the work, or the doing of anything else in relation to the work, that is harmful to the author's honour or reputation: CA, s 195AJ. A similar definition applies in relation to an artistic work: CA, s 195AK. These provisions protect the uniquely personal and reputational interests of an individual in his or her capacity as the creator of a work, whether or not the author is or has ever been the owner of the copyright subsisting in it. The rights persist until copyright ceases to subsist in the work: CA, s 195AM(2) and (3). An action for infringement of moral rights may be commenced by the author under s 195AZ for relief including an injunction, damages, a declaration of infringement, and a public apology: see s 195AZA.
18 The property of Mr Ferdinands that was divisible among his creditors did not include any right of Mr Ferdinands to recover damages or compensation for personal injury or wrong done to him: BA, s 116(2)(g)(i). The respondent has not established for the purposes of a summary dismissal application that the effect of Mr Ferdinands' bankruptcy was to deprive him for all time of the rights conferred under Pt IX of the CA or, for that matter, the right to sue for infringement of copyright in an action commenced under s 115 of the CA. As I have said, the provisions in Pt IX of the CA have as their purpose the protection of the honour and reputation of the author of a literary or artistic work. The respondent could point to no authority to support the proposition that a claim founded on an act that is harmful to the honour or reputation of the author of a literary or artistic work is not a "personal injury or wrong". Mr Ferdinands' asserted entitlement to sue for alleged infringement of alleged moral rights is clearly arguable.
19 Third, Mr Ferdinands' claim is not wholly founded in contraventions of the CA in any event. As will be seen, the Statement of Claim alleges a confusing conglomeration of claims, characterised by vague, embarrassing and scandalous allegations. Although difficult to interpret, it is nonetheless clear that the claim is not one solely seeking remedies available under the CA. Any conclusion that Mr Ferdinands lacked standing to commence an action for remedies under the CA would not affect his standing to sue for other remedies.