Relevant authorities
56 So far as I can see, there is nothing in the Federal Court Rules 2011 (Cth) (the Federal Court Rules) or the Federal Court (Corporations) Rules 2000 (Cth) (the Corporations Rules) which prevents the proceeding being constituted in this way.
57 There is a general convention, which does not find separate expression in either the Federal Court Rules or the Corporations Rules, that there can only be one solicitor for multiple plaintiffs, unless the court orders otherwise. This convention can be traced to the judgment of Sir John Romilly MR in Wedderburn v Wedderburn (1853) 17 Beav 158 in which his Lordship said, in essence, that co-plaintiffs must appoint the same solicitors and act together, including in respect of the appointment and removal of solicitors.
58 This was referred to as a "rule of practice" in Lewis v Daily Telegraph Ltd (No 2) [1964] 2 QB 601. In that case, Mr Lewis and the company of which he was the managing director and chairman commenced separate proceedings against two newspaper publishers for libel. Thus, four separate proceedings were commenced. Subsequently, Mr Lewis' and the company's proceedings against each publisher were consolidated, resulting in two proceedings - one against each publisher in which Mr Lewis and the company were co-plaintiffs. The same solicitors acted for both plaintiffs in each proceeding. Later, because of disputes that had arisen, the solicitors removed themselves from the record. By this time, the company had also gone into liquidation. Mr Lewis instructed new solicitors to act on his behalf in both proceedings. Separately, the liquidator instructed other solicitors to act on his behalf in both proceedings.
59 Subsequently, the publishers sought to have the two proceedings consolidated into one. Mr Lewis, on the other hand, sought to have the two proceedings deconsolidated, so that the original four proceedings would "re-emerge". The publishers' consolidation application was granted. On appeal, the Court of Appeal found that the consolidation should continue. However, their Lordships were not prepared to allow the consolidated action to proceed while the plaintiffs were separately represented.
60 After referring to Wedderburn, Pearson LJ (at 620-621) said:
That is the proper rule of practice, and it has plainly been departed from on the plaintiffs' side in this case. It is quite true that since then the defendants have not sought to take any steps to rectify the position. Lord Gardiner has said that it was not very clear what steps they ought to have taken. It is conceivable that an application to stay the action until the constitution of the action was rectified and put in proper order might have been an appropriate remedy. But I am not seeking to give any firm decision about that. There is also this fact, that the defendants have acquiesced in the position. It may be contended that they have waived any rights which they might have had.
However, that could not be the final answer in the present case, because there is the interest of the court itself in having actions properly constituted, so that regular trials may be had; and here is an irregular situation. I am not saying that it would be impossible ever in any case to have separate representation, wholly or partially, in a consolidated action. It is not very easy to envisage such cases; but they can arise, and an illustration is Healey v. A. Waddington & Sons Ltd. In that case eight actions were consolidated as to the issue of liability but separate representation was allowed as to the issue of damages. That is an interesting case, and it shows the possibility of at any rate partial separate representation in consolidated actions. But is, in my view, not a good guide or a good precedent for the present case, because there the trials were going to be by judge alone and were in respect of an accident, whereas here we are faced with an action or actions for libel to be tried by judge and jury. It would be extremely inconvenient and awkward, so far as one can see, to have any separate representation in a matter of that kind. Many difficult problems would arise. How would the opening speech (or speeches) be made? Would it be right that the plaintiffs should have as against the defendants the advantage of two opening speeches instead of one? Then, in the conduct of the case, if there were two plaintiffs separately represented, would each plaintiff be allowed to cross-examine the other plaintiff's witnesses and have the advantage of being able (as Lord Gardiner pointed out) to put leading questions to a witness who would be substantially on the same side? Again, when the defendants' witnesses were called, would it be right that both plaintiffs, separately represented, should be allowed to cross-examine those witnesses? The same problem would arise in respect of the final speeches at the end of the case. Would separately represented plaintiffs be allowed to have two speeches?
61 Later (at 622) Pearson LJ said:
I fail to see how separate representation is workable on the special facts of this case. Moreover, as I have pointed out, it was wrong for the de facto separate representation to be created in this case. When the solicitors, who had been acting for the plaintiff company and the plaintiff Lewis jointly throughout the first trial, found it necessary to withdraw from the record, the two plaintiffs should have concurred in appointing a new firm of solicitors to represent the two of them. That is still, in my view, what ought to be done, and the only satisfactory basis. Until that is done the action is not properly constituted, and if the plaintiffs seek to take the case to trial with this constitutional defect, they will be in very grave difficulty indeed. It is open to the plaintiffs, if so advised, to apply for some special order. Although the consolidation order remains in force, it can have super-imposed upon its practical operation some further order to adapt the consolidation order to the actual requirements of the situation. But I am far from seeking to encourage any application for complete or partial separate representation, because I am unable to see how separate representation could possibly work.
62 Similar observations were made by the other members of the Court of Appeal. At 622-623, Russell LJ said:
I will only add to what has been said a word on the question of representation. Prima facie, co-plaintiffs, whether in one original action or in an action consisting of consolidated actions, must be jointly represented by solicitor and counsel. In a proper case, an order may be made authorising severance in point of representation, but this must be, I think, rare and should only be done to avoid injustice. Here a suggestion is made that a special order should be made for separate representation at the trial of the consolidated actions, either wholly or on the issue of damages. I do not think that it would be right to make an order for complete separate representation; it would impose an unfair burden on the defendants which such differences as there are between the two plaintiffs do not justify. Common representation on liability, followed by separate representation on damages, is not really a practical idea in defamation proceedings. Nor, indeed, quite apart from that, do the facts, in my view, begin to justify separate representation on damages. The case of the plaintiff Lewis for damages due to him and the case of the plaintiff company for damages due to it can be prepared and presented perfectly well by the same solicitors and counsel. At present the plaintiffs have separate solicitors on the record, and appear by separate counsel. No order permitting that has ever been made, though for the purpose of these interlocutory proceedings the court has permitted it. It seems to me that if the plaintiffs turn up at the trial and no solicitor and counsel can say that they appear for both the plaintiffs, and no order permitting separate representation has been made, their case cannot be opened and the two actions will be dismissed. With this thought in mind, they will no doubt put their house in order.
63 At 624, Sellers LJ said:
… I entirely agree with the views which have been expressed - that, as the matter stands, it is so irregular that it is not in a proper state to go for trial and should, I think, without doubt be rectified. It may well be that a method can be found for applying for an order of the court to have separate representation. I do not want to prejudge it. As far as I can see there is no justification for granting it as at present advised. I can see no reason why one firm of solicitors, regularly appointed to act on behalf of both the plaintiffs, should not appear for them, and instruct counsel likewise, to appear and present the case of both of them before the court as each of them desires it presented. That would be regular. There is, as I see it, no conflict, either on liability or on damages. If there were, the situation would be different.
64 It can be seen that none of their Lordships considered the rule of practice they applied to be immutable. Rather, they considered it to be a rule that, for sound practical reasons, should not be departed from in that particular case.
65 In SCI Operations Pty Ltd v Australian Paper Manufacturers Ltd (1983) 51 ALR 365, Woodward J rejected an application for the joint hearing of separately commenced proceedings alleging a contravention of s 50 of the Trade Practices Act 1974 (Cth). In the course of hearing that application, a submission was advanced that, if there was to be a joint hearing, it should be on the condition that joint counsel be briefed for the applicants. His Honour rejected that submission, primarily on the basis that it would be inappropriate for one of the applicants, the Trade Practices Commission, with its independent statutory responsibilities, to be represented by the same counsel as the other applicant in the other proceeding, who had strong commercial interests in the outcome of the proceeding.
66 In the course of considering that submission, Woodward J cited Lewis and another case that had considered Lewis, Goold & Porter Pty Limited v Housing Commission [1974] VR 102. His Honour saw the underlying principle in those cases to be that "a respondent to litigation should not normally have to face two separate sets of applicants' representatives …": see at 373.
67 In Johnson Tiles Pty Ltd v Esso Australia Ltd (1999) ATPR 41-679, Merkel J made orders for the consolidation of two representative proceedings brought under Pt IVA of the Federal Court of Australia Act 1976 (Cth) (the Federal Court Act) against the same defendant on behalf of the same represented parties for the same loss: see at [6]. At [70] his Honour said:
70 Senior counsel for the applicants in each proceeding conceded that the main objective sought to be achieved by consolidation was for both solicitors, Slater & Gordon and Maurice Blackburn & Co, to be solicitors on the record in the consolidated proceeding. Although in the usual course the Rules provide for only one solicitor to appear on the record (see O 4 r 4(1)(c), I am satisfied that there is no reason why two solicitors cannot be solicitors on the record in a proceeding if that course is warranted. Whilst separate representation at trial should not be permitted where there are co-plaintiffs (see Lewis v Daily Telegraph Ltd (No 2) (1964) 2 QB 601 at 612) having two solicitors on the record in the present case will not have that result as there is agreement that they are to jointly engage one set of counsel to represent all applicants and group members. In these circumstances, the consequence of both solicitors appearing on the record as a result of consolidation is not a factor which warrants refusing to order consolidation of the two proceedings. If, in the future, a question arises as to separate representation by reason of the fact that there are two solicitors on the record then that question will be able to be resolved by the Court in a manner which avoids injustice or unfairness to Esso or the represented persons. At the present time the fact that such a problem may theoretically arise is not sufficient reason to refuse the application for consolidation.
68 In making the order for consolidation, his Honour also ordered, as foreshadowed, that the two firms of solicitors, as solicitors on the record in the consolidated proceedings, nominate only one address for service and engage one set of counsel to represent the applicants and group members.
69 In Kirby v Centro Properties Ltd (2008) 253 ALR 65, a question arose as to whether three representative actions under Pt IVA of the Federal Court Act against the same respondent should be permitted to proceed. When considering the possibility of consolidation, Finkelstein J noted that there is a special difficulty where multiple plaintiffs seek to have separate representation. His Honour noted (at [10]) that "there is a rule of practice that, without leave, separate representation is not permitted on the [plaintiffs'] side". At [11] his Honour said:
11 It is true that separate representation is sometimes allowed. For example, it was allowed in Johnson Tiles Pty Ltd v Esso Australia Ltd (1999) ATPR 41-679; [1999] FCA 56, but only on the basis that the solicitors agreed jointly to engage one set of counsel to represent the named plaintiffs. But if there is a falling out between separately represented co-plaintiffs, one would have to be removed as plaintiff and added as a defendant: Holden v Silkstone and Dodworth Coal & Iron Co (1881) 45 LT 531.
70 In Carnie v Esanda Finance Corporation Ltd (1996) 38 NSWLR 465, Young J (as his Honour then was) stated, in relation to the Supreme Court Rules 1970 (NSW) at 470:
It is clear that under the rules of court, all plaintiffs must act by the same solicitor and counsel and that the court will waive this rule only in the most extreme circumstances and that different views of plaintiffs in representative proceedings are not such a circumstance: Goold & Porter Pty Ltd v Housing Commission [1974] VR 102; SCI Operations Pty Ltd v Australian Paper Manufacturers Ltd (1983) 51 ALR 365.
71 Later, in Elphick v Westfield Shopping Centre Management Co Pty Ltd (2011) 216 IR 41, Young JA considered the position of a respondent to an appeal who appeared by different counsel and solicitors in the appeal and in the cross-appeal it had brought. After noting that there were no specific provisions in the Uniform Civil Procedures Rules 2005 (NSW) (UCPR), either permitting this practice or forbidding it, his Honour expressed the view that such representation was "contrary to the proper practice in this court unless the court gives leave for it to occur": see at [3]. His Honour saw Lewis as standing for the proposition that "plaintiffs must always be represented by the same solicitor", as noted in Ritchie's Uniform Civil Procedure 7.25.5.
72 His Honour continued (at [6]):
6 Normally this does not cause a problem though it has occurred as a problem where siblings make application under statutes allowing for the court to make provision for children out of deceased's estates. They all seek to be plaintiffs in the one action with different counsel and solicitors. That is a situation which is not permitted unless the court gives leave. The court will give leave if it considers that balancing questions of costs and the problems that might arise with a lawyer acting for conflicting interests justice requires one set of lawyers or more than one.
73 In United Medical Protection, Finkelstein J considered the question of multiple plaintiffs seeking separate representation in circumstances closely similar to the present case. His Honour described the background to that proceeding as follows (at [1]):
1 United Medical Protection Ltd (United) and The Medical Defence Assn of Victoria Ltd (MDAV), each a company limited by guarantee whose members for the most part are medical practitioners, were established as medical defence organisations. They provide members with indemnity for claims arising from the members' medical practices. Through subsidiaries, (Australasian Medical Insurance Ltd (AMIL) and Professional Indemnity Insurance Co Australia Pty Ltd (PIICA) respectively), they have since 2003 provided indemnity to their members under contracts of insurance. It is now proposed that United and MDAV amalgamate (the word they use is "merge") their respective operations through schemes of arrangement under the Corporations Act 2001 (Cth) and a scheme under the Insurance Act 1973 (Cth). This application is concerned only with the Corporations Act schemes and is for an order for the convening of meetings of the members of United and MDAV to consider the schemes.
74 At [3], his Honour said:
3 The Corporations Act schemes in fact consist of two arrangements, one between each company and its own members. It used to be the practice to require separate applications or petitions to be filed, one for each company, which would then be heard together as a matter of course. This undesirable practice, which apart from adding unnecessarily to the costs ran the risk of an appeal from one order only, has happily fallen by the wayside. If each company wishes to be separately represented, as is the situation here, that can be accommodated as the requirement that there be one legal representative on the plaintiff's side is simply a rule of practice that can give way to the demands of fairness.
75 Significantly, his Honour did not appear to envisage difficulty with the plaintiffs also being represented by separate counsel. Further, his Honour did not suggest that there should be one address for service.
It is convenient at this point to refer briefly to the joinder of MDA as defendant in the proceeding. As I have noted, it has been foreshadowed that orders will be sought under s 413(1) of the Act. MDA should therefore be joined as a party. In Royal Victorian Institute for the Blind Limited v RBS.RVIB.VAF Ltd (2004) 206 ALR 581 at [17], Finkelstein J noted that it is the presence of the transferee company as a party that gives the Court jurisdiction to make the order. See also the numerous cases cited in Damian T and Rich A, Schemes, Takeovers and Himalayan Peaks (3rd ed, Sydney University Press, 2013) p 455, footnote 58 as well as Equatorial Mining Pty Limited v Antofagasta Investment Company Limited [2013] FCA 1452 at [14].
76 An affidavit has been made by Mr Botha, a director of MDA, in which he deposes that MDA does not wish to be served with court process in relation to the schemes or the amalgamation; that MDA does not wish to appear or be heard in relation to the amalgamation; and that MDA consents to any orders of the Court which are made to effect the amalgamation. MDA does not seek to take, and has not taken, any active role in the proceeding.