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[2017] VCAT 620
Victorian Civil and Administrative Tribunal
2017-05-08
Greg Garde J
Original judgment source is linked above.
R Andrew and N J Phillpott of Counsel instructed by AUM Lawyers.
K L Walker QC and J M Forrest of Counsel instructed by Norton Rose Fulbright Australia.
(d) reimbursement of liquidated damages of $264,000.
The Tribunal must act fairly and according to the substantial merits of the case in all proceedings.
(b) is not bound by the rules of evidence or any practices or procedures applicable to courts of record, except to the extent that it adopts those rules, practices or procedures;
(c) may inform itself on any matter as it sees fit;
(d) must conduct each proceeding with as little formality and technicality, and determine each proceeding with as much speed, as the requirements of this Act and the enabling enactment and a proper consideration of the matters before it permit.
(3) Subject to this Act, the regulations and the rules, the Tribunal may regulate its own procedure.
(1) At any time before the conclusion of the hearing of a proceeding -
(a) a party may apply to the Tribunal for the reconstitution of the Tribunal for the purposes of the proceeding;
(2) If an application is made under subsection (1)(a) ...
(a) a presidential member, after allowing the parties to make submissions, may decide that the Tribunal should be reconstituted; and
(b) if so, the President must reconstitute the Tribunal.
(3) If the Tribunal is reconstituted for the purposes of a proceeding, the reconstituted Tribunal may have regard to any record of the proceeding in the Tribunal as previously constituted, including a record of any evidence taken in the proceeding.
(a) the senior member is ill-suited for the specialist task required by the proceeding; and
(b) there is a reasonable apprehension of bias as a result of the manner in which the senior member has conducted the hearing.
(a) These exchanges showed that the senior member had insufficient knowledge of the legal and technical building issues arising in the proceeding and that the Tribunal should be reconstituted.
(b) While no single transcript extract would substantiate its submission that the senior member was unsuited to conduct the proceeding, the transcript extracts taken collectively were sufficient to show unsuitability.
(a) The senior member was appointed under s 13 or s 16A of the Act. A senior member has to be an Australian lawyer who has, in the opinion of the Minister, extensive knowledge or experience in a class of matters in respect of which functions may be exercised by the Tribunal.
(b) There is no separate or additional qualification that is required by a member under sch 1 of the Act for domestic building proceedings.
(c) If no single transcript extract was sufficient to demonstrate that the senior member was ill-suited to hear and determine the proceeding, then the cumulative effect of the transcript extracts could not be different. It was not a matter of preparing a selected list of transcript extracts over many days of hearing.
(d) There were more than 24 folders of documents in the Tribunal book relied on by the parties, and the senior member had the benefit of a lengthy hearing.
(e) The senior member's approach to better understand the evidence and the case of each party was orthodox and demonstrative of his diligence.
(f) It was appropriate that the senior member ask questions about details of which he was uncertain, and ask counsel to provide assistance. Equally, it is counsel's responsibility to provide assistance and respond with a detailed written submission.
(g) There is no legal principle that calls for recusal on the basis that a party apprehends that the member may not comprehend the case.
(a) The questions asked by the senior member, and the discussions that he has had with counsel do not demonstrate that he is unsuitable to determine the proceeding or lacks requisite knowledge. Tectura itself acknowledges that no single transcript extract demonstrates that the senior member is unsuitable to conduct the hearing and determine the proceeding.
(b) It is unpersuasive on a reconstitution application to seek to draw general conclusions as to the competency of a member from a small number of selected remarks made by the member over many days of hearing.
(c) The transcript extracts relied on by Tectura are taken from about 2,000 pages of transcript. On one day, the senior member said that he had fallen behind with the reading of documents because of the speed with which they had been produced. This is not surprising as there are 24 folders of documents, and numerous documents produced during the hearing for the first time.
(d) Where a member would be assisted by further information or does not understand a technical term or matter, it is the duty of the member to raise the issue and obtain that assistance. It is unreasonable to expect that a member will be entirely familiar with every term used in the building industry and its associated trades, or have past knowledge sufficient to master all of the procedures, practices and terminology of that industry.
(e) While it is true that the senior member said that he does not have specialised knowledge in architecture, building or engineering, and has little experience in construction law, at no time has he said that he is unable to properly hear and determine the case given the assistance of experienced counsel and expert witnesses.
(f) It is not the role of s 108 of the Act to achieve a de facto review of what has happened in a proceeding or to compromise the independence of the Tribunal in a proceeding.[9]
(g) Counsel for Tectura and the Republic have had every opportunity to make written and oral submissions and to call any witnesses that they wish. All issues and any perceived deficiencies can be fully addressed.
(h) Tectura is yet to close its case. It has the forensic advantage of a lengthy adjournment giving it more time to comprehensively prepare and put the balance of its case. It has the opportunity of calling further expert or lay witnesses.
(i) The senior member has set aside two days for the hearing of final submissions. This is another opportunity for Tectura to present its case and deal with any outstanding issues.
(j) The Tribunal is assisted by a comprehensive tribunal book and substantial written submissions prepared by counsel.
... [A]n important factor is the advanced stage of the hearing. Both parties have a considerable stake and investment in the proceeding. It would be very undesirable to bring in a new member of the Tribunal at such a late stage of the hearing. The new member would be unfamiliar with the proceeding, would not have heard the witnesses or seen them cross-examined. The new member would be significantly disadvantaged in the determination of the proceedings. I should not permit such a situation to arise unless absolutely necessary in the interests of justice.[11]
Cross-examination by the senior member regarding 'missing information'
Suggestion of 'lazy drafting' in preparing the contract
Relevance of concern about dishonesty in failing to grant an extension
Concern about senior member's statement as to tile price negotiation
(a) It is normal practice to ask a witness to answer a question if the witness does not do so. All witnesses including Mr Mackie and Mr Baycan were directed to answer the question and not to talk back to counsel. Such a direction gives a witness another opportunity to consider the manner of giving evidence and response.
(b) A warning is given out of fairness to a witness. It cannot be inferred, on a reasonable basis, that the senior member's approach was unfair.
(c) On numerous occasions, Mr Baycan did not answer questions or gave long winded or unresponsive answers. The senior member's manner was not unfair. Both Mr Mackie and Mr Baycan were directed to answer questions where that was necessary and not to talk back to counsel. A review of the transcript did not support the assertions made by Tectura. On one occasion, Mr Baycan chose to argue with the senior member when directed to answer the question.
(d) None of the transcript extracts demonstrate unfairness, threats or criticism of the evidence or the witness, as opposed to the manner of answering questions.
(e) It cannot be inferred from the exchanges between any witness and the senior member that the senior member was treating the evidence of the witness other than on its merits.
(f) It is well established that an adjudicator may properly adopt reasonable efforts to confine proceedings within reasonable limits and ensure that time is not wasted. The fictitious bystander is aware of the strong professional pressures on adjudicators (reinforced by the facilities of appeal and review) to uphold traditions of integrity and impartiality.[17]
(g) The senior member was not aggressive. A fair minded observer would be sufficiently mature to know that the exchanges that occurred are not likely to affect the mind of the senior member when he decides the case.
(h) The objective lay observer would be mature enough to know that whatever view the senior member may hold on day 17 or any other day is unlikely to affect his final determination after hearing Tectura's evidence and the closing addresses of the parties.
(i) The parties are yet to make closing addresses and two days have been set aside for this to occur at the conclusion of the evidence. There is ample opportunity to correct any wrong impressions.
(j) The exchanges regarding note taking by architects and the practice of solicitors are not such as to show any predisposition to a point of view. Like judges, members are entitled to test the evidence and give counsel the opportunity to appreciate the manner in which they are thinking.
(k) Counsel for Tectura explained the rationale for the practice the senior member had referred to as 'lazy drafting'. Senior counsel for Mackie later said to the Tribunal that no criticism was made of the superintendent because of his approach to drafting the contract in this manner.
(l) The question of whether four days is sufficient to complete defects is a mixed question of fact and law. Final submissions are yet to be made. The ability to complete the listed defects in four days was the only consideration at the time the questions were asked. The admission made by Mr Baycan was impossible not to make.
(m) Mr Mackie is 74 years old and has a health problem that impacted significantly on the tone and volume of his voice after four days of cross-examination. There is no prejudice resulting from the senior member's proper concern about Mr Mackie's health. Mr Baycan did not experience obvious health problems.
(n) The clause of the contract relied on by Mackie requires the superintendent, Tectura, to act honestly and fairly. Whether the decisions were objectively unfair is an issue in the case. The passages relied on are not logically connected to a predetermination of the issue in the mind of the lay observer. If the senior member considers the issue to be relevant, and it is properly irrelevant, Tectura will have grounds for an appeal to the Supreme Court.
(o) There is nothing in the exchange concerning the tile variation claim that would lead a lay observer to conclude that the senior member had predetermined the issue, or determined the issue other than on the merits.
(p) Nothing is gained from the statistics as to the success of objections.
Case law regarding reasonable apprehension of bias
(1) when dealing with an appeal, grounds relating to actual or apprehended bias should be dealt with first, regardless of whether the decision was correct on its merits;
(2) members should not accept recusal simply because a party has asked for it;
(3) when called upon to assess the existence of a reasonable apprehension of bias relating to another decision maker, the test is one which requires no conclusions to be drawn about what factors actually influenced that decision maker's conclusions, or as to what their 'actual thought processes' were;
(4) apprehension refers to an apprehension of the member not deciding a case impartially, as opposed to an apprehension that a case will be decided adversely to one party;
(5) satisfaction of the test for apprehended bias requires two distinct steps - the first is the identification of what might lead a member to decide a case other than on its legal and factual merits, and the second is an articulation of the logical connection between the matter and the feared deviation;
(6) the perception of a lay observer will not be as informed as the perception of a lawyer, particularly a litigation lawyer, but they are taken to have some understanding of modern decision making practice;
(7) a line is drawn between robust indications of a member's tentative views on a point of importance in a proceeding, and an impermissible indication of prejudgment; and
(8) members do not have to devote unlimited time to listening to unmeritorious arguments, but should be cautious of the impression that can be given by rejecting a submission out of hand.[29]
(a) the senior member directed witnesses from both Mackie and Tectura to answer questions and not talk back to counsel;
(b) by directing witnesses to answer questions, the senior member gave them a second opportunity to respond to questions where they had not previously done so;
(c) the senior member warned witnesses from both sides when they continued to be unresponsive;
(d) the senior member did not say or do anything that suggested that he would not be deciding the proceeding on its factual and legal merits;
(e) the senior member sought to direct the proceeding so as to ensure that time was not wasted;
(f) although direct and forceful at times, the senior member was not aggressive or impolite;
(g) note taking by architects and professionals is a relevant matter given the issues in the proceeding, and the senior member was entitled to question Mr Baycan on this issue;
(h) Tectura is still presenting its case and has every opportunity to disabuse the senior member of any tentative view he may have formed or opinion that he may have expressed;
(i) the parties have the opportunity of final addresses to deal with contested issues;
(j) the lazy drafting issue has been explained and clarified by counsel, and appears to have little, if any, continuing significance;
(k) the four day notice to repair defects is a live and contested issue to be dealt with in the senior member's final determination;
(l) the weight to be given to the evidence of individual witnesses is a matter for the Tribunal in its final determination; and
(m) the statistical scorecard as to successful and unsuccessful objections is of no value, as each objection must be determined on its merits having regard to the question asked, the nature of the objection and the response of the witness.[47]
[1] The affidavits of Mark John Attard sworn 29 March, 12 April and 19 April 2017 are respectively described as the First, Second and Third Attard Affidavits.
[2] [2005] VCAT 2512 ('Bradto').
[6] Transcript of Proceedings, Mackie Pty Ltd v Republic of Turkey (Victorian Civil and Administrative Tribunal, 15 September 2016), 538.13 ('Transcript').
[9] Metrospan Developments Pty Ltd v Whitehorse City Council [2000] VCAT 44, [13], quoted in Bradto [2005] VCAT 2512, [16].
[12] Citing Galea v Galea (1990) 19 NSWLR 263, 279-80; Ikosidekas v Karkanis [2015] VSCA 121, [65].
[17] Citing Waddington v Dandenong Magistrates' Court [2014] VSCA 12, [23]; Johnson v Johnson [2000] HCA 48; (2000) 201 CLR 488, 492-3 [53].
[19] [2000] HCA 63; (2000) 205 CLR 337 ('Ebner').
[20] Ibid 344 [6], citing R v Sussex Justices; Ex parte McCarthy [1924] 1 KB 256, 259.
[21] Ibid 345 [7]; see also Johnson v Johnson [2000] HCA 48; (2000) 201 CLR 488, 492-3 [12].
[26] [2011] HCA 48; (2011) 244 CLR 427, 437-8, [31]-[34].
[27] [2015] HCA 20; (2015) 255 CLR 135, 146 [21]-[22].
[32] Jinshan Investment Group Pty Ltd v Melbourne CC [2015] VCAT 635, [24].
[45] Act sch 3 gives members of the Tribunal extensive powers in relation to expert witnesses.
[47] As to statistical evidence regarding bias, see ALA15 v Minister for Immigration and Border Protection [2016] FCAFC 30, [37]-[44].
Mackie Pty Ltd
Republic of Turkey & Anor
(1990) 19 NSWLR 263
(2000) 201 CLR 488
(2000) 205 CLR 337
(2011) 244 CLR 427
(2015) 255 CLR 135
(2011) 34 VR 236