The absence of appellable error
26 The refusal of the extension of time sought by Mr Martin in order to file his Notice of Appeal by reason of his delay renders it unnecessary to consider in any detail the merits of the proposed appeal, assuming time had been extended. It is also unnecessary to consider the Notice of Contention which the Respondent foreshadowed it would seek leave to file in the event that the Application for an extension of time was granted.
27 But the merits of the proposed appeal should be briefly addressed. Even assuming delay was not of itself a sufficient basis upon which to refuse the extension of time, the merits of the arguments sought to be advanced themselves presented insufficient prospects of success to warrant leave being granted, given the nature of the application now under consideration.
28 In very summary form, the primary Judge was presented with three fundamental issues which divided the parties in respect to the principles to be applied, namely:
the adequacy of the evidence in support of the claim;
the circumstances in which a judge could inspect documents when resolving a disputed claim for legal professional privilege; and
whether Mr Cross was acting in a professional capacity as a lawyer, vis a vis, the other partners of Norton Rose as client.
29 As to the former matter, the affidavit of Mr Cash relied upon in support of the claim (this affidavit being an annexure to Mr Toemoe's affidavit affirmed 2 November 2018) provided, as set forth at para [96] of the primary Judge's reasons, as follows:
[6] The documents set out in part 3 are in the control of the respondent but I claim privilege from production of each of these documents on the grounds that they are:
(a) confidential documents recording or evidencing confidential communications, or from which the content or substance of such communications could be inferred or revealed, between the respondent and its counsel, made for the dominant purpose of providing the respondent with professional legal services relating to this proceeding, the FWC application and/or proceeding no. NSD1610/2016; or
(b) documents that are, or that would reveal the contents of, confidential documents prepared for the dominant purpose of providing the respondent with professional legal services relating to this proceeding, the FWC application and/or proceeding no. NSD1610/2016.
[7] The documents set out in part 4 are in the control of the respondent. Parts of some documents in part 4 are redacted. I object to producing unredacted copies of those documents on the ground that the redacted parts are privileged, and I claim privilege from production of each of these documents on the grounds that those parts:
(a) record or evidence confidential communications, or from which the content or substance of such communications could be inferred or revealed, between the respondent and its counsel, made for the dominant purpose of providing the respondent with professional legal services relating to this proceeding, the FWC application and/or proceeding no. NSD1610/2016; or
(b) reproduce, or would reveal the contents of, confidential documents prepared for the dominant purpose of providing the respondent with professional legal services relating to this proceeding.
A principal argument sought to be advanced at the hearing in this matter was the contention made by Mr Martin that the evidence relied on by the Respondent, including the affidavit of Mr Cash, failed to discharge the onus of proof necessary to support a claim for privilege.
30 As a matter of general principle, it is not possible to describe the evidence necessary to support such a claim in all cases. As explained by Stephen, Mason and Murphy JJ in Grant v Downs (1976) 135 CLR 674 at 688 to 689, privilege is not "necessarily or conclusively established by resort to any verbal formula or ritual". The facts and circumstances in which a claim for privilege may be made may vary depending upon a myriad of circumstances, varying from:
the factual and legal issues dividing the parties;
and extending to:
the number of documents said to attract the claim.
Whatever else may be necessary in the circumstances of an individual case, as a matter of general principle it may be accepted that a mere assertion of privilege, or an assertion in conclusory terms as to the existence of the privilege, will not be sufficient: cf. Hancock v Rinehart (Privilege) [2016] NSWSC 12; Rinehart v Rinehart [2016] NSWCA 58.
31 The evidence of Mr Cash, with respect, may have fallen perilously close to a simple assertion as to the privilege without providing admissible evidence in support of the claim. But evidence in a comparable format is common in litigation.
32 As to the latter matter, even if it be assumed in favour of Mr Martin that the evidence fell short of establishing of itself the claim for privilege, the fact remains that the primary Judge inspected the documents and by reference to that inspection upheld the claim. She did so in accordance with an accepted discretion to do so. In the course of oral submissions, Senior Counsel for the Respondent contended that the Court's discretion to inspect documents "is not to be fettered". Whether the discretion is truly "unfettered" may be left to one side. It is a discretion to be exercised judicially. However the ambit of the discretion is expressed, the court has an unquestioned "power to examine the documents for itself, a power which has perhaps been exercised too sparingly in the past, springing possibly from a misplaced reluctance to go behind the formal claim of privilege": Grant v Downs (1976) 135 CLR at 689. Whether the documents the subject of a claim should be inspected "is a matter for the discretion of the court, and primarily for the judge at first instance": Trade Practices Commission v Sterling (1979) 36 FLR 244 at 247 per Lockhart J.
33 Not only did Mr Martin have to confront the difficulties of challenging the manner in which the primary Judge exercised the discretion to inspect the documents, he further recognised that he had to establish a misapprehension as to the ambit of the discretion in accordance with the principles outlined in House v The King (1936) 55 CLR 499 at 504 to 505. Dixon, Evatt and McTiernan JJ there summarised the general principles as follows:
… The manner in which an appeal against an exercise of discretion should be determined is governed by established principles. It is not enough that the judges composing the appellate court consider that, if they had been in the position of the primary judge, they would have taken a different course. It must appear that some error has been made in exercising the discretion. If the judge acts upon a wrong principle, if he allows extraneous or irrelevant matters to guide or affect him, if he mistakes the facts, if he does not take into account some material consideration, then his determination should be reviewed and the appellate court may exercise its own discretion in substitution for his if it has the materials for doing so. It may not appear how the primary judge has reached the result embodied in his order, but, if upon the facts it is unreasonable or plainly unjust, the appellate court may infer that in some way there has been a failure properly to exercise the discretion which the law reposes in the court of first instance. In such a case, although the nature of the error may not be discoverable, the exercise of the discretion is reviewed on the ground that a substantial wrong has in fact occurred ...
The contention advanced by Mr Martin that the primary Judge erred in such a manner was misplaced, if not misconceived.
34 To bring himself within the constraints imposed by House v The King, Mr Martin sought to contend that the primary Judge necessarily had to refuse to inspect documents in circumstances where:
the evidence relied upon was in the form stated by Mr Cash; and
there was a "fundamental inconsistency", at least in Mr Martin's submission, between the claim for privilege set out in the Mr Cash's affidavit and that which was set out in Mr Toemoe's affidavit.
Mr Martin further submitted that the primary Judge committed a House v The King error in inspecting the documents in circumstances where:
a submission had been made to the primary Judge, and said to have been erroneously made, that para [1] of Mr Cross' affidavit was "unchallenged".
Mr Martin went on to contend that the primary Judge "did not confine herself to the grounds upon which privilege had been actually claimed by the respondents, nor did she confine herself to the grounds upon which Mr [Toemoe] said the documents were privileged". Instead, so submitted Mr Martin, the primary Judge "went on a roving commission of inquiry".
35 But none of those factors, taken either alone or in combination, go anywhere near establishing a House v The King error. There is no reason to question the manner in which the primary Judge resolved the discretion to inspect the documents.
36 Mr Martin sought to contend that the primary Judge had erred in concluding that Mr Cross was acting in a professional capacity as a lawyer, vis a vis, the other partners of Norton Rose as client. This was referred to in argument as the "independence" issue. The primary Judge, in addressing this issue, referred to the approach taken by Branson J in Rich v Harrington [2007] FCA 1987, (2007) 245 ALR 106 ("Rich") and conducted a close analysis of the High Court's decision in Waterford v Commonwealth of Australia [1987] HCA 25, (1987) 163 CLR 54. Mr Martin sought to argue that the primary Judge erred in rejecting the approach adopted by Branson J in Rich. This issue raised a number of complex sub-issues, including whether, even if Mr Martin is right, there would be exceptions to the approach he relied on. The Court did not have the benefit of submissions on all aspects of this difficult issue. Furthermore, it is not irrelevant that the primary Judge's examination of the documents subject to Norton Rose's claim for privilege revealed few documents in respect of which the claim for privilege depended wholly upon an analysis of the independence of Mr Cross (in his professional capacity as lawyer), vis-a-vis, Norton Rose in its capacity as client, if "independence" is to be conceptualised as having the role identified by Branson J in Rich. It is concluded that, even if delay alone was not to be treated as sufficient to refuse the Application for an extension of time, this proposed Ground of Appeal does not, when considered with the other factors identified, have sufficient prospects of success to suggest that an extension of time should be granted.
37 Irrespective of how other arguments may have been resolved, the arguments sought to be pursued on appeal as to appellable error on the part of the primary Judge in upholding the claims for privilege lacked any sufficient prospects of success to warrant an extension of time being granted.