Hudson v Entsch
[2005] FCA 460
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2005-04-26
Before
Dowsett J
Source
Original judgment source is linked above.
Judgment (29 paragraphs)
Background 1 The petitioner ("Mr Hudson") is a self-employed television antenna installer. He resides in Cairns. At all material times he was enrolled as an elector pursuant to the Commonwealth Electoral Act 1918 (Cth) (the "Electoral Act") in the electoral division of Leichhardt. At all material times prior to 9 October 2004, the first respondent ("Mr Entsch") was the Member of the House of Representatives for Leichhardt. 2 At some time prior to 4 June 2002, Mr Hudson became aware of a difficulty in installing television antennae on steel roofs manufactured by, or from material supplied by, BHP Steel Ltd ("BHP Steel"). He considered that he could solve the problem and communicated with BHP Steel, suggesting that it and he should work together to develop that solution. At some time prior to 4 June 2002, Mr Hudson approached Mr Entsch, asking the latter to encourage BHP Steel to take up his suggestion. On 4 June 2002, Mr Entsch wrote to BHP Steel urging it to '… work closely with Mr Hudson and the Australian Building Codes Board to seek a solution to this serious matter.' In that letter he observed that: 'This issue has been drawn to my attention by a constituent, Mr Tony Hudson, who I understand has previously raised the matter with BHP Steel Ltd. Mr Hudson has advised me that BHP has produced four reports on this matter (7 November 2000, 12 March 2001, 4 April 2001 and 29 June 2001) and the first three and most informative have subsequently been withdrawn by BHP Steel Ltd. To ensure that I understand the full facts of the matter I would appreciate if you could provide me with all four reports.' 3 The nature of Mr Hudson's previous dealings with BHP Steel appears from the reply to Mr Entsch's letter dated 12 September 2002 as follows: 'There have been a number of issues raised in this long journey of Mr Hudson to establish his antenna design within the antenna service industry, and it is appropriate that some further clarification and review be undertaken. Mr. Hudson first approached BHP Steel in October/November 2000 in relation to the claimed advantages of his product. Our return comments were made in terms of technical reports and letters of correspondence to address issues such as in-service conditions, design issues and design recommendations. The information presented in the technical reports was specific to the issues raised by Mr Hudson in relation to his product and was not meant for further publication. We have also met with Hills Industries and received correspondence from TESA, the Television & Electronic Services Association, to seek their input and comments from the industry as a whole. The consensus presented to ourselves was that Mr Hudson had an antenna design that could be worthy of progression but it should be progressed through the antenna and manufacturing channels that are already established. Your proposal for BHP Steel to work with the Australian Building Code Board is noted but we feel Mr Hudson would be better served dealing with a respected association supporting his profession. In all of the requests and correspondence with Mr Hudson we have aimed to provide maximum assistance and direction within the bounds of the issue(s) presented, product and design considerations as well as design recommendations. We believe that such assistance is part of our bond to the wider community and importantly to do so within our responsibilities of a supplier to manufacturing market. BHP Steel shares concerns regarding the impact of poor work practices associated with "following trades", in this case the possible installation of poorly designed roof antennae, however our complaints records to date do not highlight this as an issue. In review we continue to wish Mr. Hudson well in his endeavours to have his design adopted, but we believe that the problems raised by Mr Hudson do not relate to BHP STEEL. We continue to maintain that resolution of the issues raised by Mr. Hudson should lie within the antenna manufacturing market sector and via the Television & Electronic Services Association.' 4 On 13 November 2002 Mr Entsch responded as follows: 'I refer to the attached letter of 12 September 2002 from Mr Peter Wilson, BHP Vice President Sales & Marketing, regarding the accelerated corrosive impact of roof-mounted television antennae installations on BHP Steel roofing products raised by Mr Tony Hudson. I seek your further clarification of the facts of this matter. In his response, Mr Wilson is dismissive of the accelerated corrosion issue on the grounds of Mr Hudson's commercial interest in raising the matter. Regardless of Mr Hudson's motivation, the fact remains that the Tripod design of roof-mounted antennas corrodes BHP Steel roofing products and this has long-term implications for a large number of Australian homes. This is the issue that we need to address. While Mr Wilson was unable to provide copies of the four BHP reports into the matter, I am pleased to advise that Mr Hudson has kindly made them available. Mr Wilson stated that these reports deal specifically with "in-service conditions, design issues and recommendations" raised by Mr Hudson "in relation to his product". This is not the case. The first three reports acknowledge the merit of Mr Hudson's design but focus on the corrosion issue and detail procedures to be followed for using a tripod base plate on BHP roofing products. It appears that these procedures will not be followed because BHP has deemed their release not to be in the company's interest. This matter was recently the subject of a hearing at the Cairns Small Claims Court that found the tripod antenna installation product used by AUSTAR had damaged the claimant's roof and AUSTAR was liable for the damages. Clearly, a legal precedent has now been established recognising the impact of the Tripod antenna design on BHP's roofing products. BHP cannot ignore this decision. I am firmly of the opinion that your company, as a responsible corporate citizen, has a duty of care to alert past and future customers to this matter. I look forward to receiving your further clarification on this important matter.' 5 A more detailed explanation of the issues addressed in this correspondence appears in exhibit E15 to Mr Hudson's affidavit filed on 18 March 2005, a memorandum to him from a scientist employed by BHP Steel. It seems that a problem occurs where a tripod support for an antenna is mounted on a metal base plate and fitted to a roof. Because the area under the base plate is not regularly washed by rainwater, dirt and other detritus accumulate there. This may lead to deterioration in the roofing material. 6 Mr Entsch was probably in error when he suggested that Mr Wilson had asserted that the four reports mentioned in the correspondence dealt with '… in-service conditions, design issues and recommendations'. He seems to have been referring to use of those words in the second paragraph of the letter of 12 September 2002 which is quoted above. Similar words occur elsewhere in the letter. In my view, Mr Wilson was identifying the subject matter of earlier dealings with Mr Hudson, not the contents of the reports. Nonetheless, the reports were no doubt relevant to the issues raised in those dealings. 7 As appears from the transcript of a news broadcast which is exhibit F15 to Mr Hudson's same affidavit, following his letter of 13 November 2002, Mr Entsch met with representatives of BHP Steel. Mr Hudson wrote to Mr Entsch on 29 December 2003. Although the letter is not in evidence, Mr Entsch's reply dated 29 January 2004 gives a clear indication of its contents. Mr Entsch wrote: 'I am in receipt of your letter of 29 December 2003 regarding, amongst other things, your ongoing dispute with BHP over your concerns with the accelerated corrosive impact of roof-mounted antenna on BHP roofing products. As you would be aware, I was seriously concerned about the issues you raised and consequently put a huge amount of work into the subject in an attempt to see if it was indeed a problem, and if so, what could be done to deal with it. To this end I met with BHP representatives in Canberra last year where they presented sufficient evidence to satisfy my concerns. They did acknowledge that roof damage can occur, but that it was a matter of individuals taking due precautions in installation and operation to remove this possibility. In the end, BHP does not believe it is responsible for end-use application of its products and I agreed with their position. I certainly found no evidence that BHP is attempting to conceal the facts or avoid its responsibilities. I should take offence at the tone of your letter given the huge amount of time and effort myself and my staff put into investigating the issue and dealing on your behalf. It appears to me that after all due consideration, the fact that I don't totally agree with your position is the basis of your attack. While I acknowledge your ongoing concerns, I am still not convinced there isn't an additional motive regarding promotion of your own product, particularly since you do not appear to be willing to accept the facts in this case concerning BHP's culpability. However, given your apparent obsession I'm prepared to treat your insults and accusations with the disdain they deserve. Unfortunately, there is nothing else I can do to help you with this issue. I do, however, wish you the best in your continued attempts to advertise your product.' On 29 July 2004 Mr Hudson wrote to Mr Entsch as follows: 'I thought I'd send further evidence of BHP's Legal Counsel attempting to conceal the facts to assist your previous amnesia on the subject. Amnesia would explain your forgetting that BHP lied to you on 12 September 2002. My customers, your constituents would like know if your condition has improved. With a Federal election looming it's the appropriate time to expose BHP's dishonourable conduct and your part in the affair. I have given your political opponent copies of your letters and BHP's. Your attempt to cover up BHP's deceit at the expense of your constituents is in black and white on your letterhead. You wrote to BHP's CEO Mr Kirby Adams on 4 June 2002 requesting access to reports BHP had concealed. BHP refused in writing to grant your request for access. In your reply of 13 November 2002, you criticized BHP for deliberately deceiving you about the facts contained in the reports which BHP had refused you access to. In your letter to me of 29 January 2004 you state "I certainly found no evidence that BHP is attempting to conceal the facts." If you have some plausible explanation for the contradictions in your correspondence, why have you failed to provide it? Your constituents are entitled to an explanation for such serious contradictions. It was sufficiently important for BHP to fly their Executive Vice President to Canberra to discuss the matter with you in person. Would revealing the truth, be more politically embarrassing than refusing to answer your constituents' questions? Your refusal to answer, is an answer in itself. I've seen you on the News recently. You appear pale and worried. Perhaps, this isn't the only skeleton in your closet? Whatever the case, this is one skeleton that is due for exhumation and post mortem. Hopefully to be followed by guillotine at the ballot box!' 8 Mr Hudson's criticism of Mr Entsch appears to have arisen out of the letter from BHP Steel to Mr Entsch dated 12 September 2002, Mr Entsch's response of 13 November 2002 and his letter to Mr Hudson dated 29 January 2004. Mr Hudson asserts that Mr Entsch's observation, in his letter of 13 November 2002, that Mr Wilson had made an inaccurate statement concerning the reports was inconsistent with his observation, in the letter of 29 January 2002, that he had found no evidence of concealment of information by BHP Steel. As I have already observed, Mr Entsch's interpretation of the letter of 12 September 2002 is, in my view, incorrect. In any event, the correspondence suggests that BHP Steel subsequently satisfied his concerns, leading him to withdraw his support for Mr Hudson's campaign. Mr Hudson said in his oral submissions that Mr Entsch had been "warned off" by BHP Steel, and that this had led him to withdraw his support. There is no evidence before me which would support that view. It is fairly clear that Mr Hudson's letter of 29 July 2004, which refers to '… a Federal election looming', was an opportunistic attempt to take advantage of the uncertainty which parliamentarians must feel at election time, either to punish Mr Entsch or perhaps to encourage him to resume his support for the campaign.