The law
9Uniform Civil Procedure Rule 33.8 provides:
"33.8 Removal, return, inspection, copying and disposal of documents and things
The court may give directions in relation to the removal from and return to the court, and the inspection, copying and disposal, of any document or thing that has been produced to the court in response to a subpoena."
10The relevant sections of the Evidence Act are ss 126A and 126B, which concern protected confidences. They relevantly read:
"126A Definitions
(1) In this Division:
harm includes actual physical bodily harm, financial loss, stress or shock, damage to reputation or emotional or psychological harm (such as shame, humiliation and fear).
protected confidence means a communication made by a person in confidence to another person (in this Division called the confidant):
(a) in the course of a relationship in which the confidant was acting in a professional capacity, and
(b) when the confidant was under an express or implied obligation not to disclose its contents, whether or not the obligation arises under law or can be inferred from the nature of the relationship between the person and the confidant.
protected confider means a person who made a protected confidence.
protected identity information means information about, or enabling a person to ascertain, the identity of the person who made a protected confidence.
(2) For the purposes of this Division, a communication may be made in confidence even if it is made in the presence of a third party if the third party's presence is necessary to facilitate communication.
126B Exclusion of evidence of protected confidences
(1) The court may direct that evidence not be adduced in a proceeding if the court finds that adducing it would disclose:
...
(b) the contents of a document recording a protected confidence...
(2) The court may give such a direction:
...
(b) on the application of the protected confider or confidant concerned (whether or not either is a party).
(3) The court must give such a direction if it is satisfied that:
(a) it is likely that harm would or might be caused (whether directly or indirectly) to a protected confider if the evidence is adduced, and
(b) the nature and extent of the harm outweighs the desirability of the evidence being given.
(4) Without limiting the matters that the court may take into account for the purposes of this section, it is to take into account the following matters:
(a) the probative value of the evidence in the proceeding,
(b) the importance of the evidence in the proceeding,
(c) the nature and gravity of the relevant offence, cause of action or defence and the nature of the subject matter of the proceeding,
(d) the availability of any other evidence concerning the matters to which the protected confidence or protected identity information relates,
(e) the likely effect of adducing evidence of the protected confidence or protected identity information, including the likelihood of harm, and the nature and extent of harm that would be caused to the protected confider,
(f) the means (including any ancillary orders that may be made under section 126E) available to the court to limit the harm or extent of the harm that is likely to be caused if evidence of the protected confidence or the protected identity information is disclosed,
(g) if the proceeding is a criminal proceeding-whether the party seeking to adduce evidence of the protected confidence or protected identity information is a defendant or the prosecutor,
(h) whether the substance of the protected confidence or the protected identity information has already been disclosed by the protected confider or any other person,
(i) the public interest in preserving the confidentiality of protected confidences,
(j) the public interest in preserving the confidentiality of protected identity information.
(5) The court must state its reasons for giving or refusing to give a direction under this section."
11The parties referred to Director General Department of Community Services v D [2006] NSWSC 827, (2006) 66 NSWLR 582, X v Commissioner of Police [2012] NSWSC 930, NRMA v John Fairfax [2002] NSWSC 563 and NRMA v Whitlam [2007] NSWCA 81. All of these cases agree that ss 126A and 126B apply to documents produced on subpoena.
12In Director General v D Brereton J commented upon subpoenas and protected confidences. His Honour stated at [14], [17] and [23]:
"[14] As is well established, the court has a discretion as to whether and to what extent access to documents produced on subpoena is to be granted [National Employers Mutual General Insurance Association Limited v Waind and Hill [1978] 1 NSWLR 372], and access will not be granted to documents which are privileged, over the objection of the party whose privilege it is.
...
[17] At the outset, it is to be observed that s 126B is concerned with the adducing of evidence in a proceeding, and not with the granting of access to documents produced on subpoena. However, as it would defeat the purpose of s 126B to grant access to documents which record a protected confidence, I accept that the provisions of s 126B are relevant to the exercise of the court's discretion whether or not to grant access to documents produced on subpoena. It would generally be inappropriate to grant access to the documents in question, if the court were likely to make a s 126B direction at the hearing.
...
[23] Before s 126B, the confidentiality of a document, in the absence of legal professional privilege, was no objection to its production or admissibility. Section 126B does not create a 'privilege', properly so called, but confers on the court a discretion by which it may direct that evidence of a confidential communication not be adduced, which is to be exercised having regard to the various relevant factors, including those listed in s 126B(4). The mere fact of confidentiality gives rise to the discretion, but it is clear from the factors listed in s 126B that the mere fact of confidentiality does not create an entitlement to a favourable exercise of that discretion."
13And in X v Commissioner of Police at [47] Johnson J stated:
"[47] ... The mechanism contained in s 126A-126B requires a court, in the context of a decision as to whether evidence ought be admitted, to undertake a balancing exercise in the context of the hearing then underway. It is true that these provisions of the Evidence Act 1995 are capable of being invoked at other interlocutory stages, such as where application is made for inspection of documents produced on subpoena..."
14In Whitlam, Campbell JA (with whom Beazley JA and Handley AJA agreed) stated at [120] to [123]:
"[120] If objection is taken to the documents being inspected, on the ground of confidentiality, and there is a prima facie basis for that objection, it is for the person seeking access to make out a case that access should be granted. In deciding whether to grant access, the Court takes into account both the inherent degree of confidentiality of the documents, and also the importance of the role that they might play in the proceedings.
[121] If legitimate objection is taken to inspection of the documents, on the ground that they are confidential, an expedient frequently adopted is to permit inspection by legal advisors on the basis that the contents of the documents are not to be disclosed by them, and are to be used only for the purpose of the proceedings. That permits the hearing to advance, with the confidentiality impinged on only to the minimum extent necessary to enable the hearing to proceed. If in the course of a hearing a question arises of whether such a document that has been permitted to be inspected by legal advisers on confidential terms should be tendered, or should be used in cross-examination of a witness, the court decides at that stage whether any, and if so what, restrictions are imposed on the manner in which the oral evidence is taken, or the access that is granted to the exhibit.
[122] In relation to those confidential documents that fit within a recognised category of privilege (other than the special "protected confidential relationships" privilege) the law has already made a judgment that the documents fall within a class whose confidentiality is such that the administration of justice must proceed without them: Waterford v The Commonwealth (1987) 163 CLR 54 at 64-65; Carter v Northmore Hale Davy & Leake (1995) 183 CLR 121 at 128, 133-135; Commissioner of Australian Federal Police v Propend Finance Pty Limited (1997) 188 CLR 501 at 511 , 563. In relation to the category of protected confidences established by section 126A-126E Evidence Act 1995, the Court is required, by section 126B, to form a view, at the time such a confidence is sought to be adduced in evidence, about whether it is more important that the confidence be protected than that the evidence be available. The need to form that view at the time of tender of the evidence can influence a judge's decision about whether at any earlier stage to permit inspection of such a document, and if so on what terms: Urquhart v Lanham [2003] NSWSC 109.
[123] For confidential information that is not privileged, and not within section 126A-126E, the usual approach of the Court is that, to the extent to which the confidential information is relevant to the conduct of the proceeding, it is more important that it be used in the administration of justice than that the confidence be protected. It is, of course, a matter for the discretion of the trial judge whether to follow that usual course in any particular case that is before him or her. Following that usual course, however, involves deciding what is the extent to which it is necessary for the confidence to be overridden to enable justice to be properly administered, and seen to be properly administered. It may be, in the circumstances of a particular case, that that objective is achieved by having those clauses or pages of a document that are relevant to the decision of the case admitted as an open exhibit, and the balance of the document admitted as a confidential exhibit."