Relevant principles
63 The Court has power to restrain conduct where that conduct would interfere with the administration of justice. There are various sources for such a power including the broad statutory power to make orders that the Court thinks appropriate under s 23 of the FCA Act. I do not need to linger on the question of the existence of power save to say that such powers are to be given a liberal ambit and should not be subject to any limitation which is not required by their language or the purpose for which they were conferred.
64 If interference with the administration of justice is the perceived concern, the applicant for an injunction must demonstrate that there is a real risk, as opposed to a remote possibility, that justice will be interfered with, and that the tendency to so interfere is a practical reality rather than a theoretical tendency; see Hammond v The Commonwealth of Australia (1982) 152 CLR 188 at 196 per Gibbs CJ; Australian Securities and Investments Commission v AGM Markets Pty Ltd (No 2) [2018] FCA 1470 at [53].
65 For there to be a contempt, there must be a real risk of interference with the administration of justice. It is necessary to establish "a real and definite tendency to prejudice or embarrass pending proceedings" or "a substantial risk of serious prejudice" (The State of Victoria v The Australian Building Construction Employees' and Builders Labourers' Federation (1982) 152 CLR 25 at 56 per Gibbs CJ, 95 per Mason J, 129 per Wilson J). The interference must be established with specificity.
66 Now a court's power to prevent interference with the administration of justice authorises a court to restrain curial proceedings from continuing where there are parallel curial proceedings on foot which deal with the same issues; see CSR Limited v Cigna Insurance Australia Limited (1997) 189 CLR 345 at 391 and 392 per the majority. That principle extends not only to parallel proceedings in Australian courts, but also to proceedings as between Australian and foreign courts dealing with the same issues.
67 There is the potential for the judicial system to be brought into disrepute by the possibility of conflicting findings, which creates a risk of undermining confidence in the rule of law.
68 In AGM (No 2) I summarised CSR in the following terms at [29]:
In CSR Ltd v Cigna Insurance Australia Ltd (1997) 189 CLR 345, the majority recognised two somewhat distinct bases for granting an anti-suit injunction (at 391 to 394). The first basis for granting such relief is the inherent or implied power to protect the integrity of the court's processes once set in motion. So, the court may grant an injunction to restrain a person from commencing or continuing parallel proceedings in another forum if those proceedings interfere with, or have a tendency to interfere with, the proceedings pending in the court. Moreover, such an inherent or implied power to grant anti-suit injunctions is not restricted to defined and closed categories, save for the boundary condition that it may only be exercised when the administration of justice so demands and when necessary for the protection of the court's own proceedings or processes. The second basis invokes equitable jurisdiction to restrain conduct where the bringing of another proceeding involves the unconscientious exercise of legal rights. So, one well established category of case in which an injunction may be granted in the exercise of that jurisdiction is that involving the commencement of parallel proceedings which are vexatious or oppressive. Relatedly, if a party has made an election as to the forum in which it will proceed, equity may intervene to prevent it pursuing proceedings in relation to the same subject matter in another. Generally, it has been said that the limits of the Court's equitable jurisdiction are determined by the dictates of equity and good conscience.
69 The same power exists where the possibility of inconsistent findings on overlapping facts arises from parallel curial and arbitral proceedings; see Recyclers of Australia Pty Ltd v Hettinga Equipment Inc (2000) 100 FCR 420 at [66] per Merkel J and Kraft Foods Group Brands LLC v Bega Cheese Limited (2018) 358 ALR 1 at [108] per O'Callaghan J.
70 Of course in the present context I am not concerned with the second basis discussed in CSR concerning the unconscientious exercise of legal rights or the question of vexation or oppression caused to Medibank. Its case before me has concerned a permutation of the first basis albeit that I am more concerned with the BLF, Hammond and analogous line of authority.
71 Now of course every case turns on its own facts and context, but neither Hammond nor BLF provide much comfort to Medibank.
72 In Hammond an injunction had been sought restraining the Royal Commissioner from further inquiring into or reporting on matters touching and concerning a criminal charge laid against Hammond. An injunction was also sought restraining the Commissioner from compulsorily examining Hammond about that charge. The latter injunction was granted but not the former.
73 As to the refusal of the former injunction, Gibbs CJ said (at 199):
However, in my opinion, no case has been made out for an injunction restraining the defendants from inquiring into or reporting on matters touching and concerning the charge against the plaintiff. In the circumstances, where no further inquiry is contemplated, other than by examination of the plaintiff himself, it is the reporting that is sought to be restrained. There is no suggestion that the Commissioner will report directly on the question whether the plaintiff is guilty of the offence charged. It is a mere speculative possibility that anything in his report will affect the plaintiff's trial. Since it has not been established that there is a real risk that the report will interfere with the administration of justice, the application for order (b) must fail. It would very seriously impede the conduct of executive inquiries into matters of public importance if no report could be made on a matter which touched and concerned a pending criminal charge. If a report could not be made in such a case, it is difficult to see any reason why the position would be different if the charge was merely contemplated and not pending. However, as I have said, the theoretical possibility that the trial of an accused person may be prejudiced cannot justify the courts in stultifying proper inquiries into matters of public interest simply because they relate in some way to the subject of a charge. In assessing the likelihood of prejudice, the court should be entitled to assume that the executive will exercise a sound discretion in making a decision whether any part of the report that might be prejudicial will be made public while criminal proceedings are pending.
74 Now Deane J in dissent on this aspect would have gone further. He would have restrained the delivery of the report. But even his observations are explained by the context and do not assist.
75 He said (at 206):
The mere fact that proceedings are pending in a court of law does not mean that any parallel or related administrative inquiry, conducted for proper administrative purposes, constitutes an interference with the due administration of justice in that court. For example, the existence of civil proceedings, in respect of certain alleged actions, will not ordinarily preclude proper administrative inquiries as to whether penal proceedings should be instituted in respect of those alleged actions. Thus, neither police inquiries nor committal proceedings constitute, in themselves, an improper interference with the proceedings of a court hearing a civil claim based on the subject matter of such inquiries.
On the other hand, it is fundamental to the administration of criminal justice that a person who is the subject of pending criminal proceedings in a court of law should not be subjected to having his part in the matters involved in those criminal proceedings made the subject of a parallel inquisitorial inquiry by an administrative tribunal with powers to compel the giving of evidence and the production of documents which largely correspond (and, to some extent, exceed) the powers of the criminal court. Such an extra-curial inquisitorial investigation of the involvement of a person who has been committed for trial in the matters which form the basis of the criminal proceedings against him constitutes, in my view, an improper interference with the due administration of justice in the proceedings against him in the criminal court and contempt of court. …
76 He then said (at 208 and 209):
… It seems to me that ordinary considerations of justice and fairness require that the Commissioner be restrained from reporting to the Governments his findings or views as to the plaintiff's involvement in the relevant events, until the criminal proceedings against the plaintiff have been concluded. To hold otherwise would be to hold that, while the conduct of the inquiry in so far as it related to that involvement constituted an improper interference with the due administration of justice, the results of that inquiry should be made available, against the plaintiff's wishes, to the Commonwealth and Victorian Governments in circumstances where it has not been suggested that there is any effective way of ensuring that any prejudicial findings and views are not made public before the pending criminal proceedings have been concluded.
77 But these observations do not really assist Medibank. Deane J made it clear that the mere overlap did not carry the day. Moreover, his observations were explained by the criminal context and potentially the jury context. Further, the question of potential inconsistency in any findings between the two processes was not what was of concern.
78 The BLF decision also does not greatly assist Medibank either. It did not turn on the question of potential inconsistency in any findings. The suggestion was made that the proceedings before the Royal Commission would interfere with the administration of justice in proceedings before the Federal Court seeking to de-register the BLF. There was "some common ground between the matters the subject of inquiry and those relating to the proceedings in the Federal Court" (Gibbs CJ at 55). But the Royal Commission's terms of reference did not involve a report into the very matters in issue in the Federal Court proceedings. Rather than any potential inconsistency in any findings, other matters were said to be of concern in terms of a risk of interference with the administration of justice.
79 Gibbs CJ said (at 57):
The learned judges of the Federal Court took the view that the proceedings of the Commission in public would amount to a contempt for a number of reasons - that they would be calculated to prejudice or bias the public mind, that they would be liable to have an undesirable effect on prospective witnesses, and that they might, albeit subconsciously, bring pressure on the judges who eventually dealt with the proceedings in the Federal Court. There is no direct evidence to support any of these conclusions, which rest on inferences drawn by the court from the nature of the proceedings and from the sort of publicity that the inquiry has already attracted.
80 He then said (at 58 and 59):
… It is the everyday task of a judge to put out of his mind evidence of the most prejudicial kind that he has heard and rejected as inadmissible. It is not uncommon for a judge to try a case which was the subject of emotional public discussion before the proceedings commenced. I find it quite impossible to believe that any judge of the Federal Court who may ultimately deal with the proceedings in that court will be influenced in his decision by anything he may have read or heard of the evidence given or statements made at the inquiry.
If there is a real risk that the conduct of the inquiry in public will deter witnesses from coming forward to give evidence in the Federal Court, or will influence the evidence that the witnesses will give, there will be reasonable ground to apprehend that the conduct of the inquiry will amount to a contempt of court. Deane J. did not consider that witnesses would be deterred from giving evidence; on the contrary he said that he thought that publicity during the course of the Commission's proceedings would be likely to lead to new witnesses coming forward and new re1evant material being disclosed. However, he considered that a widespread public awareness of allegations that illicit benefits were sought or obtained by officers of the Federation as the price of industrial harmony would be likely to result in witnesses before the Federal Court being subjected to pressures unconnected with the judicial proceedings, and that the continued public proceedings were liable to have an undesirable effect on prospective witnesses in those proceedings. The nature of those pressures, or of the undesirable effect on the witnesses, is not explained. With all respect, I consider that it is no more than speculation to say that the continuance of the inquiry in public will influence witnesses in the Federal Court. It is important to remember that the inquiry and the proceedings in the Federal Court are directed to very different issues; for that reason, the inquiry cannot pre-judge the merits of the proceedings in the Federal Court and it cannot be made the vehicle for criticism of the Federation or its officers in relation to the alleged conduct that forms the ground of the application in the Federal Court. If the allegations made at the inquiry are [true], and are relevant to the issues arising in the Federal Court, an honest witness, called to give evidence in that court, and aware of the facts, will give evidence in support of those allegations; if they are false, an honest witness, if aware of the falsity, will say so. …
81 Further, he said (at 60):
… The resulting principle requires that the court be satisfied that there is a real risk that the material alleged to be a contempt will interfere with the administration of justice in pending proceedings before it can hold that a contempt has been committed or is threatened. The discretion of the court lies in dealing with a contempt, not in deciding whether a contempt has been committed. The jurisdiction to punish as a contempt something otherwise lawful is exceptional and drastic and must be exercised with great care. The court must, if possible, be even more cautious in granting an injunction to restrain an apprehended contempt. In my opinion it has not been shown that there is a real risk that the conduct of the inquiry by Mr. Winneke in public would interfere in any way with the administration of justice in the proceedings in the Federal Court. …
82 Further, Aickin J said (at 119):
… It is at the present stage impossible for this Court to predict either how long the Royal Commissioner will continue to sit and hear evidence and how long it will take for the parties to the deregistration proceedings to be ready for trial, or to predict which of those two events will first occur.
In these circumstances the risk of contempt of the Federal Court is in my opinion both slight and remote in time and by no means sufficient to warrant any restriction upon the conduct of the Royal Commissioner in accordance with his two Commissions. …
83 Let me deal with another topic that excited the parties' attention before me.
84 There is a difference between an injunction to restrain the performance of a statutory duty or the exercise of a statutory power, and an injunction to restrain the commencement or carrying on curial or arbitral proceedings.
85 A court cannot by final injunction prevent the lawful exercise of a statutory power. As was observed in Reid v Howard (1995) 184 CLR 1 at 16 per Toohey, Gaudron, McHugh and Gummow JJ, when discussing the inherent power of the NSW Supreme Court and s 23 of the Supreme Court Act 1970 (NSW):
… Neither the inherent power nor the completely general terms of s 23 can authorise the making of orders excusing compliance with obligations or preventing the exercise of authority deriving from statute. …
86 Likewise neither this Court's implied power nor the power under s 23 of the FCA Act confers authority for granting an injunction where there is otherwise no case for injunctive relief either under the general law or by statute.
87 Now to restrain by final injunction conduct that is done in performance of a statutory duty or the exercise of a statutory power, it is necessary to establish that the conduct is not authorised by the statute, which question turns on the proper construction of the statutory duty or power.
88 Where the statutory duty or power potentially interacts with pending court proceedings, the ordinary limitation as a matter of statutory construction is found in the law of contempt. Subject to any express statement or necessary implication to the contrary in the relevant statute, a generally expressed statutory power or duty will not be construed as authorising conduct that would amount to a contempt of court.
89 In Lee v New South Wales Crime Commission (2013) 251 CLR 196, it was said by Gageler and Keane JJ (at [319] and [320]):
Separate, but overlapping with the right of a person charged with a criminal offence to a fair trial and available to protect that right, is the power that inheres in a court to restrain as a contempt conduct giving rise to a real risk of interference with the administration of justice. There is a corresponding principle, itself an application of same general principle of statutory construction, that "[a] statute expressed in general terms should not be construed so as to authorise the doing of any act which amounts to a contempt of court".
It is important to recognise, however, that a contempt of court of the relevant kind occurs "only when there is an actual interference with the administration of justice" or "a real risk, as opposed to a remote possibility" of such an interference and that the "essence" of contempt of that kind is a "real and definite tendency to prejudice or embarrass pending proceedings" involving "as a matter of practical reality, a tendency to interfere with the due course of justice in a particular case". The finding of such a real risk or definite tendency necessarily requires more than abstract assertion: it requires the finding at least of some logical connection between the action that is impugned and some feared impediment to the conduct of the proceedings that are pending, which impediment can properly be characterised as an interference with the administration of justice or, more specifically in a particular case, as unfairness to an accused.
(citations omitted)
90 In the context of the particular legislative scheme and statutory power that they were dealing with, Gageler and Keane JJ went on to say (at [335] and [340]):
The power conferred by s 31D(1)(a) does not authorise the making or implementation of an examination order where to do so would give rise to a real risk of interference with the administration of justice including by interfering with the right of the person to be examined (or any other person) to a fair trial. For reasons already given, however, the making of such an order does not give rise to a real risk of interference with the administration of justice by reason only that the subject matter of the examination will overlap with the subject matter of criminal proceedings that have commenced but that have not been completed.
…
The additional factor alone gives rise to no more than a possibility that the implementation of the examination order might give rise to an interference with the administration of justice. That is the significance of the ability of the Supreme Court, or officer of the Supreme Court before whom the examination is conducted, to control the course of questioning and to make suppression or non-publication orders limiting the timing and scope of any use or dissemination by the Commission of answers given or documents produced. When it is appreciated that the conduct of the examination remains at all times subject to the supervision and protection of the Supreme Court, the possibility that the implementation of the examination order might give rise to an interference with the administration of justice does not rise to the level of a real risk merely because the subject matter of the examination will overlap with the subject matter of pending criminal proceedings against the person to be examined.
91 In the case of an investigation under s 40(1) or a determination under s 52, there is nothing in the Act to support a limitation on the AIC's duty to investigate which is any broader than the established principle that the AIC is not authorised to commit a contempt of court.
92 Section 40(1) obliges the AIC to investigate a complaint including a representative complaint about an act or practice that may be an interference with the privacy of an individual. Section 40(2) empowers the AIC to conduct an own initiative investigation.
93 To construe s 40, it is necessary to have regard to s 41(1). Section 41(1) provides that the AIC may decide not to investigate a complaint if the AIC is satisfied of any of the nine circumstances in s 41(1)(a) to s 41(1)(f). These include three classes of circumstances.
94 First, procedural circumstances such as that the complaint was made more than 12 months after the complainant became aware of the act or practice (s 41(1)(c)) or the complainant has not responded to a request for information from the AIC (s 41(1)(db)).
95 Second, there is a broad discretion of the AIC not to investigate where the AIC is satisfied that in all the circumstances an investigation is not warranted (s 41(1)(da)).
96 Third, there are circumstances in which there is another dispute resolution process on foot or other suitable legislative regimes for dealing with the relevant act or practice or appropriate remedies (ss 41(1)(dc) to 41(1)(f)).
97 Now I should note that of the nine matters, none deals directly with the overlap between an investigation under the Act and court proceedings, although s 41(1)(e) is tantalisingly close.
98 In my view it would be inconsistent with the highly qualified nature of the s 40(1) duty, by reason of s 41(1), to construe s 40(1) as not also being subject to an implied qualification on the AIC's duty to investigate a complaint where that investigation gives rise to a real risk of interference with the administration of justice. Likewise, the discretionary power in s 40(2) should be construed as subject to the same implied qualification.
99 Further, if the Parliament had intended to depart in s 40(1) or s 40(2) from the general system of law, which includes the principle that the Court may issue an injunction to minimise or reduce the possibility or prospect of different courts reaching different decisions in relation to the same dispute to avoid undermining confidence in the rule of law, it would have so stated.
100 Any legislative intention to depart from the general system of law must be expressed with "irresistible clearness". So, for example, in X7 v Australian Crime Commission (2013) 248 CLR 92, it was said by Hayne and Bell JJ at [86] and [87]:
The question of statutory construction which arises in this case requires the consideration and application of a well-established rule. That rule, often since applied, was stated by O'Connor J in Potter v Minahan by quoting Maxwell's On the Interpretation of Statutes:
"It is in the last degree improbable that the legislature would overthrow fundamental principles, infringe rights, or depart from the general system of law, without expressing its intention with irresistible clearness; and to give any such effect to general words, simply because they have that meaning in their widest, or usual, or natural sense, would be to give them a meaning in which they were not really used."
(Emphasis added.)
This rule of construction has found most frequent application in this Court with respect to legislation which may affect rights. In that context, it has come to be referred to as a "principle of legality". But the rule is not confined to legislation which may affect rights. It is engaged in the present case because of the effects which the asserted construction of the ACC Act provisions authorising compulsory examination would have not only on the rights, privileges and immunities of a person charged with an indictable Commonwealth offence, but also on a defining characteristic of the criminal justice system. In particular, it would alter to a marked degree the accusatorial nature of the criminal justice system. To hold that the general words of the relevant provisions of the ACC Act authorise compulsory examination of a person charged with an indictable Commonwealth offence about the subject matter of the offence charged would thus depart in a marked degree from the "general system of law".
(citations omitted)
101 There is no "irresistible clearness" which rules out the implied qualification that I have discussed. And if there were, it may be constitutionally infirm in any event, although fortunately I do not need to flirt further with such a hypothetical.
102 There is one other general matter. There are aspects of the AIC's task and processes that may be said to mimic the exercise of judicial power, such as considering, ruling upon and making a determination concerning a controversy as between the OAIC representative complainant and Medibank involving rights and duties based upon existing facts and the law under the Act; see by analogy the discussion in Brandy v Human Rights and Equal Opportunity Commission (1995) 183 CLR 245 at 269 per Deane, Dawson, Gaudron and McHugh JJ. But the infringing Chapter III vice through the registration device in Brandy is not present in the Act given, inter-alia, s 55A. So, the AIC's function, powers and processes cannot be aligned with judicial power.