Ground 3: The possible cocaine dealing
30 The intercepted telephone conversations had been put to CDs, and transcripts of the conversations had also been prepared. Early in the evidence of Detective Crass the transcripts were tendered as an aide memoire, and were admitted without objection. Detective Crass was asked by the Crown Prosecutor to play the conversations in succession, with occasional questions following the playing of a conversation.
31 The evidence came to call no 32, from the appellant to Mr Compton at 3.53 pm on 9 October 2001. The conversation began -
"RNC Hello
KG How're ya goin'?
RNC Alright, mate.
KG Yeah, good. Um, listen, is that bloody, ah, you know that Pepsi Cola? The opposite to the Pepsi?
RNC Yeah.
KG Is that any good to ya?
RNC Um, depends - yeah, how much ya got?
KG Well, they - they - they're looking, ah, at, ah, one thirty five (135) a keg of it.
RNC Yeah, it's a bit rich.
KG But it's apparently ninety eight (98) or somethin', you know.
RNC Yeah?
KG Yeah
RNC I'd have to ask him about that".
32 The conversation continued, and included Mr Compton asking "what about the other?" and some discussion of Mr Compton getting "four" and "the other too".
33 After the conversation was played, Detective Crass was asked -
"Q. Detective, through your experience as a detective senior constable, I should ask you this, how many years have you been investigated [sic] drug supplies?
A. Between eight and ten years.
Q. In your experience during that time, are you aware of what the expression Pepsi Cola means?
A. It can have two meanings. Pepsi Cola can be referred to as amphetamine, but it also can be referred to when you say the opposite of Pepsi, it actually refers to cocaine. So it's been obviously Pepsi being coke [sic]."
34 A short while later the Court adjourned. In the absence of the jury, counsel for the appellant applied for a discharge of the jury.
35 Counsel accepted that evidence of the telephone conversation was relevant to show continuing association between the appellant and Mr Compton leading up to the supply on 17 October 2001. He submitted that the Crown should not have led evidence from Detective Crass to suggest that the appellant may have been talking about cocaine, and therefore may have been involved in negotiations to obtain quantities of cocaine as part of his dealings with Mr Compton. He submitted that there was unfair prejudice in the suggestion that the appellant was involved in the supply of cocaine. The Crown Prosecutor submitted that the witness' answer "could mean a number of things", and that in context the conversation was about methylamphetamine; she said that she would make it quite clear that it was not part of the Crown case that the appellant was involved in the supply of cocaine.
36 The judge ruled -
HIS HONOUR: It may or may not be prejudicial. It is obviously prejudicial to the accused. Whether it is something that is unfairly prejudicial, by virtue of the interpretation given to what Pepsi Cola and the opposite means, I do not think it is a discharge point."
37 Call no 32 was not specifically referred to in the addresses of the Crown Prosecutor or counsel for the appellant, or in the judge's summing-up. Nothing was said about involvement in the supply of cocaine.
38 The appellant did not object to the evidence of call no 32 itself. It was submitted on appeal that the Crown should have edited out that part of the telephone conversation, given the knowledge of Detective Crass as to the meaning of the expression, but the content of the conversation was known to the defence and I do not think that the appellant was relieved from taking objection if he desired. The appellant's counsel did not object to the question asking what the expression Pepsi Cola meant, perhaps understandably in order to avoid highlighting the conversation in the jury's minds. The ground of appeal was more appropriately that the judge should have discharged the jury.
39 The appeal is against the conviction, not against the refusal to discharge the jury, but the judge was exercising a discretion in the circumstances which had arisen. He accepted the possibility of prejudice, but thought that there was not unfair prejudice warranting discharge. It was not submitted that he acted on a wrong principle, but rather that the jury should have been discharged because "the jury would inevitably have thought that the appellant was a person willing to be involved in the illicit supply of cocaine, notwithstanding that that was not part of the Crown case".
40 The judge was best placed, in the atmosphere of the trial, to assess the effect upon the jury of understanding the appellant as referring to cocaine, and how best to deal with that possibility. This was one of a great many conversations between Danny, Mr Compton, Mr Borgman and others concerning the supply of amphetamines, and between Mr Compton and the appellant which on the Crown case were concerned with the supply of amphetamines. The conversations necessarily went beyond the particular drug dealing the subject of the counts. Although he did not spell it out, the judge plainly enough considered that the potential prejudice could be otherwise dealt with. Any question of involvement in the supply of cocaine was not thereafter brought back to the jury's attention, and his Honour emphatically directed the jury in a way which, if the jury had brought to mind the reference to Pepsi Cola, was directed to causing them to put aside involvement in the supply of cocaine -
"But there is one matter that I have forgotten to say to you which is very important. You have heard, principally in the telephone intercept material I think it is - yes, in the telephone intercept material. You have heard evidence in some of that material that may give you cause to think that Mr Gage might have been involved in drug dealing in some other way, or committing some other offence other than the ones for which he has been charged. Whether you think that or not is going to be a matter for you, but if you do think that or feel that the evidence might establish that you cannot use that evidence as establishing in any way the offences before the court. You cannot reason that, 'We have listened to all those tapes now, we are pretty sure this guy is dealing in drugs. We are not really satisfied about the methylamphetamine but we will convict him because we think he is dealing in drugs.' That would be most unfair to the accused. It would lead to a miscarriage of justice and it would be unfair to the Crown as well.
You are entitled to use that evidence as evidence of the relationship that Mr Gage had with Mr Compton. You have heard evidence that they had a relationship that went back many years, with some hiatus in the middle of about 15 years or something like that. The Crown suggests to you that when you look at all those intercepts, that their relationship, certainly around this time, was a relationship involving the dealing in illegal substances, in particular on the days in question, methylamphetamine. So the Crown leads that evidence to you as establishing the relationship between the accused and Mr Compton … ".
41 I consider that it was well open to the judge to exercise his discretion in the manner he did. In my opinion, there was no miscarriage of justice in the admission of the evidence and the ruling that the jury should not be discharged.