Magi Enterprises Pty Ltd v Luvalot Clothing Pty Ltd
[2017] FCA 1143
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2017-09-25
Before
Mr J, Murphy J
Source
Original judgment source is linked above.
Judgment (6 paragraphs)
THE APPLICATION TO HEAR MR WEI DONG'S TESTIMONY BY VIDEO LINK
The legislative framework and relevant principles 11 Section 47A(1) of the Federal Court of Australia Act 1976 (Cth) (the Act) provides a broad power to the Court to "direct or allow testimony to be given by video link, audio link or other appropriate means." The exercise of the power is in the Court's discretion. Section 47A(2) expressly contemplates that a witness in a foreign country may give testimony by one of these means. 12 Section 47C(1) precludes the exercise of the power conferred by s 47A(1) unless certain technical requirements are met. On the evidence of Mr Lao's first affidavit I am broadly satisfied as to the suitability of the facility in Guangzhou. However, had I been minded to order that the testimony of either Mr Wei Dong or Ms Bi Zi be heard by video link, I would also have made orders for a test run of those facilities to be conducted in order to ensure that the requirements of s 47C(1) were met. 13 Luvalot did not contest that oral testimony should generally be given directly to and in the presence of the Court. It applied for orders for testimony by video link on the basis that a departure from the usual practice was appropriate in the interests of justice in the present case because, if it was not permitted, Luvalot would be denied an opportunity to call witnesses essential to its defence of Magi's claim and Luvalot's pursuit of its cross-claim. 14 Over the years there has been some divergence in judicial approaches to the exercise of the discretion to permit testimony to be taken by video link. 15 In Tetra Pak Marketing Pty Ltd v Musashi Pty Ltd [2000] FCA 1261 Katz J permitted cross-examination of an expert in Switzerland to take place over the opposition of the cross-examining party. His Honour said (at [25]) that there was "a strong current of authority" in favour of permitting testimony by video link "in the absence of some considerable impediment telling against its use in a particular case." In Versace v Monte [2001] FCA 1454 at [16] Tamberlin J approved Katz J's remarks and said "a substantial case" needed to be made out before a Court will decline to make an order for testimony by video link. 16 In Australian Medical Imaging Pty Ltd v Marconi Medical Systems Australia Pty Ltd (2001) 53 NSWLR 1; [2001] NSWSC 651 at [3] Palmer J referred to a developing line of authority that "almost as a matter of course, the evidence of overseas witnesses should be taken by video link" but his Honour rejected that approach. His Honour concluded (at [29]) that evidence by video link should only be allowed upon the applicant showing good reason for the witness's non-attendance. Palmer J's approach was endorsed by Conti J in Moyette Pty Ltd v Foundation Healthcare Ltd [2003] FCA 116 at [10]. 17 In Dorajay Pty Ltd v Aristocrat Leisure Ltd [2007] FCA 1502 at [7] Stone J referred to some of the difficulties that attend the taking of testimony by video link, particularly in relation to cross examination, and refused to permit evidence to be taken from an overseas witness. Her Honour observed: In my experience, however, those difficulties are considerable and markedly interfere with the giving of the evidence and, particularly, with cross-examination. They include technical problems such as difficulties with hearing, in presenting documents to the witness, in maintaining transmission over an extended period of time and those arising from time differences. More importantly, even if those difficulties can be overcome or minimised, there are the problems in maintaining a line of cross-examination and the difficulty of assessing a witness where evidence is given by video link. As a matter of justice to both parties these problems are critical. It is perhaps more workable where one is dealing with an expert witness who is generally well-prepared, has written a detailed report and has an expertise and familiarity with the subject that may not be the case with a lay witness. 18 In Campaign Master (UK) Ltd v Forty Two International Pty Ltd (No 3) (2009) 181 FCR 152; [2009] FCA 1306 (Campaign Master) at [77], Buchanan J said that, notwithstanding the efficiency that might be obtained in an appropriate case, the trend of authority emphasised the need for a persuasive case to be made out to hear testimony by video link, particularly when it is to be imposed on an unwilling cross-examining party. His Honour said (at [78]), and I respectfully agree: I share the concerns expressed by Spender J in World Netscape and by Stone J in Dorajay about the limitation on the effectiveness of video link arrangements as a means of taking oral evidence. I am particularly troubled by the prospect (or possibility) that the cross-examination of an important witness might be rendered less effective by the limitations of video link technology or the absence of the witness from the courtroom. Although the days are gone when witnesses are expected to feel any sense of intimidation as an aid to telling the truth, there is no doubt in my mind that the requirement to give evidence on oath or affirmation in the (generally) solemn atmosphere of a courtroom in the presence of a judge, and to answer questions in cross-examination in the presence also of cross-examining counsel, has at least three potential benefits. It enhances the prospect that the witness will remain conscious of the nature and solemnity of the occasion and of his or her obligations. It affords the cross-examiner some reassurance that the gravity and immediacy of the moment, and of the supervising presence of the judge, are not lost on the witness and the cross-examination is not thereby rendered any less effective, to the possible prejudice of the cross-examining party. It provides the Court with a more satisfactory environment in which to assess the nature, quality and reliability of responses by a witness, both to questions and to the overall situation presented by the necessity to give evidence in court. To my mind there remains, even in the modern context, a certain "chemistry" in oral interchanges in a courtroom, whether between a judge and counsel (or other representative) or between cross-examiner and witness. I would not wish too lightly to deprive a cross-examiner of that traditional forensic element in the exchange although, as the cases universally make clear, the Court must now, if asked to do so, balance the interests of a cross-examining party against claimed inconvenience both in individual cases and with respect to individual witnesses. Notwithstanding the increased availability and use of video link technology, in my view, a case must be made out for the use of video link evidence if it is opposed by an affected party. I do not share the view expressed by Katz J. My own view and, I think, the weight of authority, is to the contrary. 19 His Honour said (at [76]) that any tension between the differing judicial approaches could readily be reconciled by reference to the facts of each particular case. That observation was echoed by Gordon J in Kirby v Centro Properties Ltd (2012) 288 ALR 601; [2012] FCA 60 at [11] where her Honour said: In the end, each case will turn on its own facts and circumstances and the exercise of discretion as to what is appropriate in a particular case will involve a balancing exercise as to what will best serve the administration of justice consistently with maintaining justice between the parties. All modern courts seek to limit the costs of litigation. One cost is in requiring a witness, especially a witness who is not a party, to travel to Australia to give viva voce evidence. Whether that cost can be minimised by giving that evidence by video link, as has been said, will need to be assessed not just on a case by case basis but also on a witness by witness basis. 20 I prefer the approach taken in Campaign Master to the approach in the earlier decisions cited. That decision has been expressly or implicitly endorsed in numerous cases: see for example Blackrock Asset Management Australia Services Ltd v Waked (No 2) [2011] FCA 479 at [45]-[46] (Perram J); Traxys Europe SA v Balaji Coke Industry Pvt Ltd (No 4) [2012] FCA 1416 at [17] (Foster J); Unilever Australia Ltd v Revlon Australia Pty Ltd (No 4) [2014] FCA 1074 at [14] (Gleeson J); Stuke v ROST Capital Group Pty Ltd (2012) 207 FCR 86; [2012] FCA 1097 (Stuke) at [32] (Katzmann J); Seymour v Commissioner of Taxation (2016) 241 FCR 361; [2016] FCAFC 18 at [41] (Griffiths J); Jones v Treasury Wine Estates (No 3) [2017] FCA 961 at [32]-[33] (Foster J). There have, however, also been cases going the other way, some of which are usefully listed by Flick J in Australian Competition and Consumer Commission v Pirovic [2014] FCA 544 (Pirovic) at [10]. In the finish, whether an order to hear testimony by video link is appropriate will depend on the facts and circumstances surrounding the application. 21 In Pirovic (at [11]) Flick J set out a non-exhaustive list of considerations which may assume relevance in a particular case, as follows: • the extent to which the proposed witness seeks to give evidence of facts relevant to the dispute as opposed to opinions founded upon, or largely founded upon, agreed facts or assumptions; • whether the parties are in agreement as to the utility in allowing evidence to be given by way of video link; • whether the proposed evidence is centrally relevant to the issues to be resolved or more tangential to those matters of real dispute; • the extent to which any cross-examination may be inhibited by the absence of the witness being present; • the relevance of the evidence the subject of any cross-examination - the more limited the cross-examination and the more questionable the relevance of the evidence the more limited may be the prejudice to the cross-examiner; • the reasons proffered by the witness as to the inability to come to Australia; and • the practical impediments that a refusal to allow cross-examination to proceed by way of video link upon the ability of a party to present its case. Considerations in any particular case could also include: • factors peculiar to the proposed witness, including ill-health or an inability to freely travel to and depart from Australia; and • the extent to which the Court itself may consider that it would be assisted by evidence being given in person. The overriding consideration must, however, forever remain what is considered by the Court to be in the best interests in the administration of justice, including the need to ensure that justice is done as between the parties. I respectfully agree.