The Independence of the legal advice
30 In support of the claim for privilege, the Minister and the Northern Territory rely on the affidavit of Jennifer Nicole Laurence of 12 June 2020. Ms Laurence's affidavit describes the nature of her role as the Director of Legal Services within the DPIR.
31 There has been a series of conflicting decisions of judges of first instance on the requirement for independence of the in-house legal advisor in a variety of contexts: Seven Network Ltd v News Ltd [2005] FCA 142 (in-house counsel with extensive involvement in commercial activities of the group); Telstra Corporation Ltd v Minister for Communications, Information Technology and the Arts (No 2) [2007] FCA 1445 (internal legal advisors); Rich v Harrington [2007] FCA 1987, (2007) 245 ALR 106 (in-house Office of General Counsel within PricewaterhouseCoopers Australia where the General Counsel was also a partner of the firm); Dye v Commonwealth Securities Ltd (No 5) [2010] FCA 950 (legal advisor employed by respondent's parent company); Archer Capital 4A Pty Ltd (as trustee for the Archer Capital Trust 4A) v Sage Group plc (No 2) [2013] FCA 1098, (2013) 306 ALR 384 (scope of agency arrangement with third party in respect of provision of legal advice to Sage); Aquila Coal Pty Ltd v Bowen Central Coal Pty Ltd [2013] QSC 082 (in-house counsel not admitted to practice in Australia); Martin v Norton Rose Fulbright Australia (No 2) [2019] FCA 96 (advisor a member of the partnership to whom the advice was provided). In relation to the latter decision, leave to appeal was also granted in respect of this issue: [2019] FCA 1101.
32 The "conflict" within these decisions centres on whether the decision of the High Court of Australia in Waterford v The Commonwealth of Australia (1987) 163 CLR 54 requires, in every case, that the legal adviser be "independent". Such a requirement had been discerned by Branson J in Rich from the judgment of Brennan J, at 70:
The purpose of legal professional privilege is to facilitate the seeking and giving of legal advice and thereby to ensure that the law be applied and litigation be properly conducted … If the purpose of the privilege is to be fulfilled, the legal adviser must be competent and independent. Competent, in order that the legal advice be sound and the conduct of litigation be efficient; independent, in order that the personal loyalties, duties or interests of the adviser should not influence the legal advice which he gives or the fairness of his conduct of litigation on behalf of his client. If a legal adviser is incompetent to advise or to conduct litigation or if he is unable to be professionally detached in giving advice or in conducting litigation, there is an unacceptable risk that the purpose for which privilege is granted will be subverted.
33 In Martin, Charlesworth J took a different view of the judgments in Waterford and did not consider that there was majority support in Waterford for the view expressed by Brennan J, at least as interpreted in Rich: Martin [2019] FCA 96 [187]. In Archer Capital, Wigney J doubted whether "Waterford establishes that there is a separate or distinct requirement to prove independence in the case of privilege claims involving in-house lawyers", expressing agreement with a similar view that had been expressed by Katzmann J in Dye: Archer Capital [72].
34 It is unnecessary for present purposes to add to the nuances of interpretation of Waterford expressed in these various judgments, each of which was concerned with salaried legal advisers employed, or engaged, by a commercial entity and whether, in that context, there was majority support for the views expressed by Brennan J. By contrast, Waterford was concerned with communications between the Commonwealth and officers of the Attorney-General's Department. It was held by the plurality that "legal professional privilege attaches to confidential, professional communications between government agencies and their salaried legal officers undertaken for the sole purpose of seeking or giving legal advice or in connexion with anticipated or pending litigation": Mason and Wilson JJ, 63-64; Brennan J, 75; Deane J, 78. Brennan J said, at 72-73:
In [Alfred Crompton Amusement Machines Ltd v Customs & Excise Commissioners [No 2] [1972] 2 QB 102], as in this, the legal advisers were the salaried employees of government and their position is, for reasons presently to be mentioned, distinguishable from the position of salaried employees of other clients.
…
I am … unable to accept the notion that salaried lawyers are generally to be assimilated to the position of the independent legal profession for the purposes of determining the availability of legal professional privilege. Although this view may seem to give insufficient acknowledgement to the personal integrity, as well as competence, of many salaried lawyers, we are concerned with a general legal rule which is framed not with regard to the characteristics of individuals but with regard to the influences that naturally attend the relationship of employer and employee.
However, those influences are not so significant when the legal adviser is in the employment of the Crown. Then the adviser's independence is protected in the manner to which Mason J and I referred in Attorney-General (NT) v Kearney [(1985) 158 CLR 500, 517]
…
The Commonwealth, State and Territorial statutes under which officers are employed in the offices of Crown Solicitors, the Australian Government Solicitor and in the Departments of the respective Attorneys-General give them a certain security of tenure and those statutes would be construed, in the absence of express provisions, as leaving these officers completely professionally independent. The protection of the respective Attorneys-General, as the first Law Officers of the Crown, should extend to all of these officers, so that none of them will be affected in the performance of their professional duty by any sense of loyalty or duty to, or hope of reward, from the government of the day (emphasis added).
35 Ms Laurence's affidavit explains that she holds an unrestricted practising certificate and remains employed by the Chief Executive Office of the Attorney-General's Department, not the DPIR. In February 2019, she was transferred to the DPIR, which is now her sole client. Her affidavit details the nature of her role within the DPIR and, in particular, that she does not perform any non-legal role. She attests that: her office is separate from that of other DPIR officers; the documents created by her are kept separate from those of other DPIR officers; she does not use the same document management server as any of the other officers; and that other officers of the DPIR are unable to access electronic or physical files and records created by her nor to access her individual work email account. Ms Laurence's affidavit also explains the protocol that exists within the DPIR for providing legal advice to the Minister. She explains that it is the usual practice for such advice to take the form of a Memorandum from the CEO of the DPIR to the Minister, which Memorandum is prepared by Ms Laurence with her name and title recorded as the "action officer". This evidence was not challenged by the applicants.
36 Ms Laurence's affidavit is evidence of her role as an independent in-house legal adviser whose communications with her client are, prima facie, capable of attracting legal advice privilege.
37 The applicants submitted that Ms Laurence was not acting qua lawyer in relation to the communications in issue and seek to draw an inference to that effect by a comparison with documents that have been produced in which Ms Laurence has merely reported on a teleconference with the solicitor for MIM or forwarded an email and letter from MIM and its solicitor to the Minister (AS-R [9]-[10]). The existence of some non-privileged communications between a legal adviser and client says nothing about the capacity in which the legal adviser was acting, particularly in the face of uncontroverted evidence to the contrary.
38 The applicants submitted further that it is "not readily apparent how the inter-Departmental emails and Ministerial briefs" constitute confidential communications made to or by a legal adviser in a professional capacity to enable a client to obtain, or the adviser to give, legal advice. It was also submitted that the "affidavit rises no higher than the formulaic assertion that the other documents [being those other than Document 113] were 'created … for the purpose of giving' or 'providing' or 'conveying', legal advice", which assertions are not sufficient (AS-R [11]).
39 The applicants did not proffer any evidence to contradict that given by Ms Laurence in her affidavit.