Final or interlocutory
86 The question of whether orders of a judge declaring a litigant to be vexatious and restraining the litigant from instituting further proceedings constitutes a final or interlocutory order has been considered by intermediate courts of appeal in New South Wales, Victoria and Western Australia, as well as by a number of judges sitting at first instance.
87 The Courts of Appeal of Victoria and Western Australia have held that orders made under the provisions of the legislation in force in those jurisdictions in relation to orders against vexatious litigants are interlocutory. There is a division of opinion on this question in a number of decisions of the Court of Appeal of New South Wales.
88 In considering the effect of those decisions on the orders made by Stone J, it is necessary to bear in mind the terms of the legislative provisions (or rules of Court) under which the orders were made.
89 Although not first in point of time, the seminal authority on the question is the decision of the Victorian Court of Appeal in Kay v Attorney-General (Vic) (2000) 2 VR 436 ("Kay"). The leading judgment was written by Chernov JA. His Honour explained, comprehensively at [31]ff, why the order made in that case was interlocutory.
90 As Chernov JA pointed out at [32], the usually accepted test for determining whether an order is final or interlocutory is whether the order appealed from finally determines the rights of the parties in the principal cause between them, having regard to the legal, rather than the practical effect of the order.
91 His Honour cited three well known High Court authorities in support of this proposition, namely Hall v Nominal Defendant (1966) 117 CLR 423 at 439-440, Carr v Finance Corporation of Australia Ltd (No 1) (1980) 147 CLR 246 at 248 and Licul v Corney (1976) 180 CLR 213 at 225.
92 In Kay, the order declaring the litigant to be vexatious was made by Eames J in an application by the Attorney-General of Victoria under s 21 of the Supreme Court Act 1986 (Vic). Chernov JA observed at [34] that the order was made in the proceeding itself. It did not arise in the course of an existing proceeding, nor was it preliminary to a proposed action in which the substantive claims would be litigated. His Honour then said:
Consequently, it might be said that the order here finally determined the rights of the parties and, therefore, the order or judgment was not one 'in an interlocutory application'. Such a conclusion was reached by the NSW Court of Appeal in Pedler v Hunters Hill Municipal Council [1976] 2 NSWLR 411.
93 However, Chernov JA distinguished Pedler on the ground that Reynolds JA, who delivered the leading judgment, took no account in his reasoning of s 84(3) of the Supreme Court Act 1970 (NSW), which was the analogue of s 21(5) of the Victorian Act. The Victorian provision empowered the Court:
at any time to vary, set aside or revoke an order made under sub-section (2) if it considers it proper to do so.
94 Chernov JA then said at [36]:
In my view, having regard particularly to the operation of s.21(5) the order in question cannot be said to have a legal effect which finally determines the rights of the parties. Either party can, at any time, seek to have the order varied, set aside or revoked, albeit not on the basis that the decision was erroneous, but by demonstrating a change in relevant circumstances. Any complaint that the decision is wrong in law can, of course, be sought to be pursued by an appeal process, but in the end, even if the order were to remain extant notwithstanding any appeal, it can be varied, set aside or revoked under s.21(5). In those circumstances, it is difficult to see how it can be said that it finally disposes of the rights of the parties inter se.
95 In Shaw v Jim McGinty in his capacity as Attorney General [2006] WASCA 231 ("Shaw"), Wheeler JA (with whom Steytler P and Buss JA agreed) held at [18] that the orders under the Vexatious Proceedings Restriction Act 2002 (WA) restraining Mr Shaw from instituting further proceedings and staying existing proceedings were interlocutory. Her Honour referred to the provisions of s 7 of that Act which provided that an order in the terms made under s 4 may be rescinded or varied by the Court or a Judge of the Court in which the order was made.
96 Her Honour went on to say that the presence of a provision to similar effect in Victoria and South Australia led the Court in Kay (and in a South Australian decision referred to below which followed Kay) to conclude that orders restraining proceedings were to be considered interlocutory.
97 The division of authority in New South Wales was referred to by Chernov JA in Kay at [38]. More recently, it was discussed in the judgment of McColl JA, Campbell JA and Sackville AJA in Klewer v Attorney-General (NSW) [2010] NSWCA 219 at [13]ff ("Klewer").
98 In Klewer at [22] their Honours left open the question of whether the decision in Pedler was correct. They neither endorsed nor disapproved the aspect of Pedler that determined the order in question to be final.
99 The South Australian decision to which Wheeler JA referred in Shaw was Commonwealth Bank v Heinrich (No 2) [2003] SASC 436. In that case, the order was made by Debelle J under s 39(1) of the Supreme Court Act 1935 (SA). Importantly, that Act provided that an order made under s 39(1) may be varied or revoked in similar terms to the legislation in Victoria and Western Australia.
100 Debelle J said at [15] that, on one view, an order made under s 39(1) constitutes a final order because it remains in full force and effect until varied or revoked. An order varying or revoking it would not be made unless there was a material change in circumstances. Those factors, his Honour said, all pointed to the conclusion that the order was final.
101 However, Debelle J went on to say at [16] that the fact that an order under s 39(1) may be varied or revoked is a compelling reason for concluding that the order was not final. He followed the reasoning in Kay and concluded that an order under s 39(1) is interlocutory,
102 What emerges from these authorities is that the critical factor which determines whether the orders made by Stone J are interlocutory or final is the terms of the Rules under which the orders were made, and whether the Rules provide, as in Victoria, South Australia and New South Wales, that the Court may vary or rescind the Orders. Otherwise, as Chernov JA said in Kay, and as Debelle J reiterated in Heinrich, the orders made by Stone J finally determined the rights of the parties having regard to the legal effect of the judgment.
103 The legal effect of the orders made by Stone J under O 21 rr 1 and 2 was to prohibit Mr Kowalski from instituting any further proceeding, including any proceeding against the Mitsubishi Parties without the leave of the Court.
104 As the authorities to which we referred at above at [89]ff make clear, the effect of her Honour's orders is to deny Mr Kowalski a right which is a fundamental principle of our legal system, namely that every person has an unfettered right of access to the courts to seek a remedy for an alleged wrong. In our opinion, this is the legal, rather than the practical effect of her Honour's orders. It might seem unusual that an order having such a profound affect on a person's right of access to the courts should be characterised as interlocutory.
105 Nevertheless, what seems to be critical in the present case is that under O 21 as it stood when the primary judge made her orders, r 4 provided that the Court may from time to time rescind or vary any order made by it under rr 1 or 2. The strong weight of authority in Kay and the other cases to which we have referred is that the effect of O 21 r 4 is to make an order under O 21 rr 1 or 2 interlocutory rather than final. In our opinion, that is the proper approach to take in light of those authorities
106 It follows in our view that the orders made by Flick J should not be disturbed. However, counsel for the Mitsubishi Parties conceded that if we are of the view that the orders made by Stone J were final, it would be open to us to set aside the orders made by Flick J and determine the appeal.
107 It seems to us that in those circumstances, in case we are wrong in coming to the view that her Honour's orders were interlocutory, we ought to address the issues which Mr Kowalski sought to raise on the appeal. In taking this approach, we bear in mind the dictum of Kirby J in Re Attorney-General (Cth); ex parte Skyring (1996) 135 ALR 29 at 31-32 that "it is regarded as a serious thing in this country to keep a person out of the courts".