The Applicant's claims against the Third and Fourth Respondents
52 Apart from the claim for such other relief as the Court considers fit and just in the circumstances, the claims for relief against the third and fourth respondents as contained in the Further Amended Application were as follows:
'1. A declaration that it is unlawful for the third and fourth respondent to employ or engage the detainees into detention work for reward in the disguise of merit points and/or meaningful activities.
2. An order prohibiting the third and fourth respondents from continuing, engaging, appointing and or assigning any detainee either directly or indirectly for any work or activity with or without reward or favour in detention.'
53 In the Second Further (Amended) Statement of Claim references were made to the third and/or fourth respondents in paragraphs 2, 4, 8 and 9 to which reference has been made above.
54 In addition further matter was pleaded against the third and fourth respondents as follows:
'5. At all material times the Third Respondent operated the day to day management of the Villawood IDC for reward and employed officers and agents who undertook work in the furtherance of the management of the Villawood IDC.
6. At all material times the Fourth Defendant operated the kitchen facilities at the Villawood IDC for reward.
…
11. The third and fourth respondents are engaged in crime by continuing, engaging and involving by illegally employing the detainees into detention work contrary to section 235 ss(3), (5) of the Migration Act 1958.
12. The third and the fourth respondents also failed in performing their duty of care by failing to stop and discourage the detainees from illegally working and from falling into crime.
13. The third and the fourth respondents have failed in performing their duty of care by failing to provide the proper quality of food and services by engaging low paid, inadequately skilled unmotivated detainees into detention work.
…
15. The applicant makes the claims in paragraphs 16 to 32 below in the accrued jurisdiction of this Honourable Court.
16. In or about August 2004 the applicant purported to enter into a contract for services with the Third Respondent ("the Contract").
Particulars
a) In or about July 2004 the applicant approached an employee of the Third Respondent at the Villawood IDC named Fel Aiono Laga. The applicant inquired as to how he could obtain phone cards to make phone calls. Ms Laga invited him to apply to work in the Kitchen to make "money" so he could obtain phone cards, and directed him to put his request for work in writing.
b) The next day, the applicant was then given a GSL request form and he completed it and asked for work at the Detention Centre.
c) The applicant then undertook a medical check necessary to allow him to work with food provided by the Third Respondent.
d) Upon his medical report being provided, an employee of GSL occupying the position of Mess Officer (named Tony) approached the applicant and asked him to come to the kitchen at the Villawood IDC and directed him to commence work.
17. It was a term of the Contract that the applicant would provide work in return for payment of value ("merit points"), namely 1 unit redeemable to the value of approximately $1dollars' value for certain items sold by the Third respondent (for example 10 merit points would allow the purchase of a $10 phone card from the Third Respondent).
18. The applicant was given 70 merit points per week conditional upon him providing the Services.
19. The applicant repeats paragraph 11 above and further says that the Contract was void for illegality and as against the public interest.
20. Further, and in the alternative, the contract was contrary to s117, 118 and 119 of the Industrial Relations Act 1996 (NSW) and so void for illegality and as against the public interest.
21. From about August 2004 to December 2004 the applicant performed services for the Third Respondent and also for the benefit of the Fourth Respondent ("the Services").
Particulars
a) The Services were provided in the kitchen of the Area known as "Stage 1" at Villawood IDC;
b) The Services included:
(a) cleaning, tidying and setting up of kitchen and dining areas, including the cleaning of equipment, crockery and general utensils;
(b) serving food;
(c) washing dishes;
(d) assembly and preparation of ingredients for cooking;
(e) fortnightly cooking of steaks on grill and preparation for same;
(f) handling pantry items and linen;
(g) setting and/or wiping down benches;
(h) general cleaning, and labouring tasks.
c) The Services were provided for breakfast (at 6.45 am until 7.45 am), lunch (at 11 am until 1.00pm) and dinner (at 4pm to 6pm) and handing out supper in the dormitories (from 6pm to 6.30 pm).
d) The Services were provided regularly and six days per week.
22. The Services were provided at the request of the Third Respondent.
23. In the alternative, the services were provided with the knowledge of the Third Respondent and the Third Respondent accepted the services.
24. Further and in the alternative, the Services were provided at the request of the Fourth Respondent.
25. Further and in the alternative, the Services were provided with the knowledge of the Fourth Respondent and the Fourth Respondent accepted the services.
26. The Third and Fourth Respondents knew, or ought reasonably to have known, that the applicant provided his services on the basis that he would receive reward for the Services.
27. The performance of work by the applicant was in the interests of the Third and Fourth Respondents and they obtained the value of the work performed by him for the purposes of their contractual arrangements with each other and with the First Respondent and or the Commonwealth.
28. The Services enriched and were of value to the Third Respondent.
29. Further and in the alternative, the Services enriched and were of value to the Fourth Respondent.
30. The Third Respondent has failed to provide reasonable remuneration for the Services and it would be unjust and inequitable to allow it to retain the enrichment or benefit of the value of the Services.
31. The Fourth Respondent has failed to provide reasonable remuneration for the Services and it would unjust and inequitable to allow it to retain the enrichment or benefit of the value of the Services.
32. The applicant claims from the Third and or the Fourth Respondents a fair and reasonable sum of money in quantum meruit for the Services.
Particulars
a) Particulars to be provided upon discovery'
55 It was submitted for the third and fourth respondents that a strict approach should be taken to the use of the present tense in respect of claim for relief 1 where a declaration was sought that 'it is unlawful …'. It would seem to me that this submission is without substance. If there were otherwise an entitlement to a declaration there would be no reason why the Court could not make a declaration in respect of a past illegality as opposed to a present one.
56 In the particulars provided at the end of the Second Further (Amended) Statement of Claim further matter was alleged in respect of the third and fourth respondents as follows:
'11. The Minister's statement apparently encouraged the GSL and DNCA against the law of the land and they are still using detainees by paying reward against the clear will of the Parliament expressed in section 235 of the Migration Act 1958. In other words, GSL and DNCA are aiding and abetting crime in the detention centre by the apparent sanction of the Minister and her Department.'
57 In relation to the applicant's pleading of matter alleging restitution or unjust enrichment against the third and fourth respondents the general principles to be applied are to be found in Pavey & Matthews Proprietary Limited v Paul (1987) 162 CLR 221 (see, in particular, per Deane J at 256-7). An obligation to pay fair and just compensation for a benefit which has been accepted will only arise in a case where there is no applicable genuine agreement or where such an agreement is frustrated, avoided or unenforceable. (See also Trimis v Mina [1999] NSWCA 140 at [54].)
58 The applicant submits that there was an applicable genuine agreement between the applicant and the third and/or fourth respondent for the performance of work by the applicant within the Villawood Immigration Detention Centre at the time when he was located in Stage One. The third respondent submits that there was no such agreement. The fourth respondent submits that there was such an agreement and it was fully performed thus denying any entitlement in the applicant to make a quantum meruit claim.
59 The applicant submits that the applicable genuine agreement is one which was unenforceable because it was directed at the applicant doing something which s 235(3) of the Act forbade.
60 Alternatively, it was submitted that it was void for illegality being in contravention of ss 117, 118 and 119 of the Industrial Relations Act 1996 (NSW) ('Industrial Relations Act'). Those provisions are concerned with the manner in which remuneration due to an employee within the meaning of that Act should be paid. In my opinion those sections have no present relevance. One could hardly describe the applicant as an 'employee' within the meaning of the Industrial Relations Act. He was not a person employed in an industry within the meaning of s 7 of that Act nor was he a person taken to be an employee, being a person described in Schedule 1 to that Act.
61 In Nelson v Nelson (1995) 184 CLR 538 McHugh J observed at 604 that:
'… frequently [the courts] will not enforce an agreement … that has been entered into for an unlawful purpose. But these propositions do not lead to the conclusion that a person who participated in the making or execution of such an agreement … never has a curial remedy. A court that finds that an agreement … has an unlawful purpose has merely set the stage for a further inquiry: are the circumstances surrounding the agreement such that the court should deny a relevant remedy to the party seeking the assistance of the court?'
His Honour proceeded to refer to the famous dictum of Lord Mansfield in Holman v Johnson (1775) 1 Cowp 341 at 343 that:
'[n]o Court will lend its aid to a man who founds his cause of action upon an immoral or an illegal act.'
62 To like effect Windeyer J said in Smith v Jenkins (1970) 119 CLR 397 at 414:
'If a plaintiff has to rely upon an unlawful transaction to establish his cause of action, the court will dismiss his case …'
63 In Pearce v Brooks at 218 Pollock CB said:
'Nor can any distinction be made between an illegal and an immoral purpose; the rule which is applicable to the matter is, Ex turpi causa non oritur actio, and whether it is an immoral or an illegal purpose in which the plaintiff has participated, it comes equally within the terms of that maxim, and the effect is the same; no cause of action can arise out of either the one or the other.'
(See also per Pigott B at 219)
64 Referring to the dictum of Lord Mansfield, McHugh J proceeded to say:
'The principle contained in this dictum applies in both law and equity. But it is subject to exceptions which allow relief to be granted despite the presence of illegality. First, the courts will not refuse relief where the claimant was ignorant or mistaken as to the factual circumstances which render an agreement or arrangement illegal. …'
65 In the instant case, the applicant claims, and I accept, that he was ignorant of the proscription contained in s 235(3) of the Act at the time when he was performing work in Stage One.
66 At 612 - 613 McHugh J continued:
'If courts withhold relief because of an illegal transaction, they necessarily impose a sanction on one of the parties to that transaction, a sanction that will deprive one party of his or her property rights and effectively vest them in another person who will almost always be a willing participant in the illegality. Leaving aside cases where the statute makes rights arising out of the transaction unenforceable in all circumstances, such a sanction can only be justified if two conditions are met.
First, the sanction imposed should be proportionate to the seriousness of the illegality involved. It is not in accord with contemporaneous notions of justice that the penalty for breaching a law or frustrating its policy should be disproportionate to the seriousness of the breach. The seriousness of the illegality must be judged by reference to the statute whose terms or policy is contravened. It cannot be assessed in a vacuum. The statute must always be the reference point for determining the seriousness of the illegality; otherwise the courts would embark on an assessment of moral turpitude independently of and potentially in conflict with the assessment made by the legislation.
Second, the imposition of the civil sanction must further the purpose of the statute and must not impose a further sanction for the unlawful conduct if Parliament has indicated that the sanctions imposed by the statute are sufficient to deal with conduct that breaches or evades the operation of the statute and its policies. In most cases, the statute will provide some guidance, express or inferred, as to the policy of the legislature in respect of a transaction that contravenes the statute or its purpose. It is this policy that must guide the courts in determining, consistent with their duty not to condone or encourage breaches of the statute, what the consequences of the illegality will be. Thus, the statute may disclose an intention, explicitly or implicitly, that a transaction contrary to its terms or its policy should be unenforceable. On the other hand, the statute may inferentially disclose an intention that the only sanctions for breach of the statute or its policy are to be those specifically provided for in the legislation.' (footnotes omitted)
67 Given that an offence under s 235(3) is a strict liability offence by virtue of s 235(4B) of the Act I cannot see how the applicant could avoid a finding that the contract or arrangement which he had with the third and/or fourth respondent was void for illegality and unenforceable.
68 If the contract is void for illegality and unenforceable in circumstances where it is directed at the performance of an illegal act I cannot see how, consistent with the maxim to which reference has been made, the applicant could recover on a quantum meruit claim for work performed by him which retained its illegal character. Moral culpability is irrelevant.
69 No claims are made against the third and/or fourth respondents in the Further Amended Application founded upon quantum meruit. In the circumstances all that is required is that paragraphs 15 to 32 inclusive of the Second Further (Amended) Statement of Claim should be struck out.
70 This conclusion renders it unnecessary to consider whether the quantum meruit claim could properly have survived as being one within the accrued jurisdiction of the Court after the dismissal of the claims made by the applicant against the first and second respondents.
71 In Petrotimor Companhia de Petroleos SARL v Commonwealth of Australia (2003) 128 FCR 507 at [18] Black CJ and Hill J said:
'What is, we think clear, however, is that where the federal part of the controversy is such that the Court lacks jurisdiction to hear it, then there can be no accrued jurisdiction. Accrued jurisdiction can only arise where the single controversy which is the "matter" is one which is within the jurisdiction conferred upon the Court. If no federal jurisdiction is properly invoked then there can be no accrued jurisdiction: Carlton & United Breweries Ltd v Castlemaine Tooheys Ltd (1986) 161 CLR 543 and Johnson Tiles Pty Ltd v Esso Australia Pty Ltd (2000) 104 FCR 564 at 598 per French J.
Allsop J in his papers appears to us to propound the view that all that is required to invoke federal jurisdiction for this purpose is that federal jurisdiction be asserted (but subject perhaps to the qualification that the assertion is bona fide and is not frivolous or colourable). His Honour cites the decision of a Full Court of this Court in Westpac Banking Corporation v Paterson (1999) 95 FCR 59 at 62 in support of this view. That was a case where a cross-claim, not being colourable, attracted federal jurisdiction where it asserted a claim founded on Commonwealth legislation. But Westpac Banking Corporation seems rather to be a case where the cross-claim was such that the Court had authority to proceed to hear and determine the issue involved, and thus the non-federal part of the controversy, and not a case where the Court was first required to decide whether it had jurisdiction to hear and determine any federal claim at all.'
72 Notwithstanding the dismissal of the claims against the first and second respondents there would, in my opinion, be a sufficient 'common substratum' of facts between the claims made by the applicant against the third and fourth respondents for a quantum meruit and the outstanding claim made by the applicant against the fifth respondent which invokes federal jurisdiction, such as to justify their characterisation as a 'single controversy' where relief could, but for the reasons which I have given, be given to the applicant in the accrued jurisdiction of the court.
73 This brings me to a consideration of the claims for relief made by the applicant against the third and fourth respondents as contained in the Further Amended Application. The question is one of standing. For an applicant such as Mr Hussein to have standing may require a connection between the applicant's interests and the relief sought. As a general rule the Court will not recognise busybodies who interfere in things that do not concern them.
74 In my opinion the circumstances of the applicant when he was in Stage One were such that the Court would not grant him any relief. His position would be not unlike that of the driver of a getaway car seeking declaratory relief to the effect that the person who converted the bank robber's shotgun into a sawn-off shotgun for use by him in robbing the bank engaged in unlawful activity. However, as at the date of the institution of the proceedings his circumstances had changed and it could be argued that he was entitled to relief in respect of the work said to have been performed by other detainees in contravention of s 235(3) of the Act under contracts or arrangements to which the applicant says that the third and/or fourth respondents were parties.
75 In my opinion the applicant has sufficient standing to seek declaratory relief against the third and fourth respondents in respect of such employment or engagement of detainees within the Villawood Immigration Detention Centre to perform work (see Phelps v Western Mining Corp Limited (1978) 20 ALR 183 at 189-190 and Truth About Motorways Pty Limited v Macquarie Infrastructure Investment Management Limited (2000) 200 CLR 591 at [2], [93] and [162]).
76 On a summary dismissal application it would be inappropriate to find that the applicant in this case lacked a special interest which may be required for his claims to succeed.
77 The rule requiring an applicant to have a special interest in the subject matter of the action for him to have standing is a flexible one. The nature and subject matter of the litigation will dictate what amounts to a special interest. In determining whether there is a special interest it is necessary to have regard to the exigencies of modern life as occasion requires (see Bateman's Bay Local Aboriginal Land Council v The Aboriginal Community Benefit Fund Pty Limited (1998) 194 CLR 247 at [46], [50] and [52]).
78 In the foregoing circumstances I would decline to order that the applicant's claims against the third and fourth respondents be summarily dismissed. However, as indicated earlier paragraphs 15 - 32 of the Second Further (Amended) Statement of Claim should be struck out.
79 Given the dismissal of the claims against the first and second respondents and the striking out of the quantum meruit claims against the third and fourth respondents, consideration should be given to the utility of retaining any part of what remains in the Second Further (Amended) Statement of Claim in its present form, but this is a matter on which the applicant and the third, fourth and fifth respondents should be heard. The preferred course may be to allow the applicant to replead his case against those respondents.
80 Costs should follow the event. Even though the third and fourth respondents have not succeeded in obtaining all the relief sought by them, they have achieved substantial success.
I certify that the preceding eighty (80) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Graham.