Legal unreasonableness and jurisdictional error: the principles
21 The effect of Pt 8 of the Migration Act 1958 (Cth) (the Migration Act) is that only decisions affected by jurisdictional error are liable to be "called into question" in a court and "subject to prohibition, mandamus, injunction declaration or certiorari": see s 474(1) and Plaintiff S157/2002 v Commonwealth of Australia [2003] HCA 2; 211 CLR 476.
22 A decision authorised to be made pursuant to the Migration Act will be affected by jurisdictional error if it is vitiated by legal unreasonableness: Minister for Immigration and Citizenship v Li [2013] HCA 18; 249 CLR 332 (Li). That is because Parliament is taken to intend that statutory power will be exercised reasonably: see Li at [26] and [29] per French CJ, [63] per Hayne, Kiefel and Bell JJ and [88] per Gageler J.
23 In Minister for Immigration and Border Protection v Stretton [2016] FCAFC 11; 237 FCR 1 (Stretton), Allsop CJ summarised the relevant case law and principles underpinning the reasoning in Li as follows (Griffiths J and Wigney J agreeing at [87] and [90] respectively):
5 [The] statements of general principle in the three judgments [in Li] (French CJ, and Hayne, Kiefel and Bell JJ, and Gageler J) variously drew upon and drew together a number of well-known expressions and bodies of principle including, and without repeating all citations: the Constitutional necessity for legal control of discretion (power): Shrimpton v The Commonwealth [1945] HCA 4; 69 CLR 613 at 629-630; the necessary confinement, explicit or implicit, of any statutory discretion or power by the subject matter, scope and purpose of the legislation: Water Conservation and Irrigation Commission (NSW) v Browning [1947] HCA 21; 74 CLR 492 at 505; the implied legislative intention to condition statutory discretionary power by a requirement that it be exercised reasonably: Kruger v The Commonwealth [1997] HCA 27; 190 CLR 1 at 36; Abebe v The Commonwealth [1999] HCA 14; 197 CLR 510 at 554 [116]; Shrimpton at 620; South Australian Commissioner for Prices and Consumer Affairs v Charles Moore (Aust) Limited [1977] HCA 38; 139 CLR 449 at 466; and Minister for Aboriginal Affairs v Peko-Wallsend Limited [1986] HCA 40; 162 CLR 24 at 41-42; the necessity that a discretion be exercised according to the rules of reason and justice, not private opinion, according to law, and not humour, and within the limits that an honest and competent person would confine herself that is "legal and regular, not arbitrary, vague and fanciful": Sharp v Wakefield [1891] AC 173 at 179; Shrimpton at 620; R v Anderson; Ex parte Ipec-Air Pty Ltd [1965] HCA 27; 113 CLR 177 at 189; Re Minister for Immigration and Multicultural Affairs; Ex parte Applicant S20/2002 [2003] HCA 30; 198 ALR 59 at 62 [9]; the illegitimacy of the exercise of a discretion in reaching a conclusion that no reasonable person could ever come to: Associated Provincial Picture Houses Ltd v Wednesbury Corporation [1948] 1 KB 223 at 229, or where no sensible decision-maker acting with due appreciation of his or her responsibilities would so decide: Secretary of State for Education and Science v Tameside Metropolitan Borough Council [1977] AC 1014 at 1064; the requirement that the satisfaction or opinion of a decision-maker about the existence of a matter, in particular a jurisdictional fact, be reasonably formed: Council of the Municipality of Bankstown v Fripp [1919] HCA 41; 26 CLR 385 at 403; R v Connell; Ex parte Hetton Bellbird Collieries Ltd [1944] HCA 42; 69 CLR 407 at 430; Buck v Bavone [1976] HCA 24; 135 CLR 110 at 118-119, (though not referred to in Li, Starke J in Boucaut Bay Company Limited (in liq) v The Commonwealth [1927] HCA 59; 40 CLR 98 at 101, approved by Windeyer J in Commissioner of Taxation of the Commonwealth of Australia v Brian Hatch Timber Co (Sales) Pty Ltd [1972] HCA 73; 128 CLR 28 at 57, said that reasonableness here meant not dishonestly, capriciously or arbitrarily and upon a rational ground for the belief); the settled principles of appellate review of judicial discretion in House v The King [1936] HCA 40; 55 CLR 499, and the guidance found therein in the analogy with judicial review of administrative action: Minister for Aboriginal Affairs v Peko-Wallsend Limited 162 CLR at 42; the principle that it is open to infer legal error if the result of the decision appears unreasonable assuming the correct question was addressed and the law was followed in the making of the decision: Avon Downs Proprietary Limited v Federal Commissioner of Taxation [1949] HCA 26; 78 CLR 353 at 360; the principle concerned with unreasonableness in the exercise of delegated law-making power - if such laws were partial and unequal or manifestly unjust, or by operation they involved oppressive or gratuitous interference with rights that could not be reasonably justified: Kruse v Johnson [1898] 2 QB 91 at 99-100; and the fact that the conditioning of a power to be exercised reasonably has an analogy with the conditioning of the power with the obligation to afford procedural fairness: Gageler J in Li at [92].
6 Each of the judgments in Li sought to give explanatory content to the concept of legal unreasonableness. As was discussed in Minister for Immigration and Border Protection v Singh [2014] FCAFC 1; 231 FCR 437, the judgments in Li identified two different contexts in which the concept of legal unreasonableness was employed: a conclusion after the identification of jurisdictional error for a recognised species of error, and an "outcome-focused" conclusion without any specific jurisdictional error being identified: Singh at [44].
7 It is in relation to the second context, the "outcome-focused" application of the concept, that precise definition, beyond explanation of the operative notion and of the legal technique by which to make the assessment, becomes productive of complexity and confusion. There is "an area of decisional freedom" of the decision-maker, within which minds might differ. The width and boundaries of that freedom are framed by the nature and character of the decision, the terms of the relevant statute operating in the factual and legal context of the decision, and the attendant principles and values of the common law, in particular, of reasonableness. The boundaries can be expressed by the descriptions and explanatory phrases of the kind set out in [5] above.
24 In respect of the duty of a court when a conclusion has been asserted to be vitiated by unreasonableness his Honour observed:
9 The conclusion that a decision is legally unreasonable by reference to the outcome, whether or not there are reasons therefor, is assisted by reference to expressions taken from cases such as those mentioned in [5] above. Any criticism that these explanations are circular and vague is to be met by attending to the terms, scope and policy of the statute and the values drawn from the statute and the common law that fall to be considered in assessing the decision. The terms, scope and policy of the statute and the fundamental values that attend the proper exercise of power - a rejection of unfairness, of unreasonableness and of arbitrariness; equality; and the humanity and dignity of the individual - will inform the conclusion, necessarily to a degree evaluative, as to whether the decision bespeaks an exercise of power beyond its source.
10 This concept of legal unreasonableness is not amenable to minute and rigidly-defined categorisation or a precise textual formulary. For instance, in argument, the submission was put that [76] of Li in the judgment of Hayne, Kiefel and Bell JJ contained two (different) "tests": (1) if upon the facts the result is unreasonable or plainly unjust and (2) if the decision lacks an evident and intelligible justification. The submission reflected the dangers of overly emphasising the words of judicial decisions concerning the nature of abuse of power, and of unnecessary and inappropriate categorisation. The plurality's discussion of unreasonableness at [63]-[76] in Li should be read as a whole - as a discussion of the sources and lineage of the concept: [64]-[65], of the limits of the concept of reasonableness given the supervisory role of the courts: [66], of the fundamental necessity to look to the scope and purpose of the statute conferring the power to find its limits: [67], of the various ways the concept has been described: [68]-[71], of the relationship between unreasonableness derived from specific error and unreasonableness from illogical or irrational reasoning: [72], of the place of proportionality or disproportion in the evaluation: [73]-[74] (as to which see also French CJ at [30] and see also McCloy v New South Wales [2015] HCA 34; 325 ALR 15 at [3] (French CJ, Kiefel, Bell and Keane JJ)), of the guidance capable of being obtained from recognising the close analogy between judicial review of administrative action and appellate review of judicial discretion: [75]-[76].
11 The boundaries of power may be difficult to define. The evaluation of whether a decision was made within those boundaries is conducted by reference to the relevant statute, its terms, scope and purpose, such of the values to which I have referred as are relevant and any other values explicit or implicit in the statute. The weight and relevance of any relevant values will be approached by reference to the statutory source of the power in question. The task is not definitional, but one of characterisation: the decision is to be evaluated, and a conclusion reached as to whether it has the character of being unreasonable, in sufficiently lacking rational foundation, or an evident or intelligible justification, or in being plainly unjust, arbitrary, capricious, or lacking common sense having regard to the terms, scope and purpose of the statutory source of the power, such that it cannot be said to be within the range of possible lawful outcomes as an exercise of that power. The descriptions of the lack of quality used above are not exhaustive or definitional, they are explanations or explications of legal unreasonableness, of going beyond the source of power.
12 Crucial to remember, however, is that the task for the Court is not to assess what it thinks is reasonable and thereby conclude (as if in an appeal concerning breach of duty of care) that any other view displays error; rather, the task is to evaluate the quality of the decision, by reference to the statutory source of the power and thus, from its scope, purpose and objects to assess whether it is lawful. The undertaking of that task may see the decision characterised as legally unreasonable whether because of specific identifiable jurisdictional error, or the conclusion or outcome reached, or the reasoning process utilised.
13 The relationship between the conclusion or outcome and the reasoning process revealed by reasons to reach it is one that should not be rigidly set. Reasons may fail to disclose an evident and intelligible justification or may not be sufficient to outweigh the inference that the decision is so unjust as to be (in the context of the statutory source of the power) beyond a lawful exercise of the power.
25 Subsequently in Minister for Immigration and Border Protection v SZVFW [2018] HCA 30; 92 ALJR 713 (SZVFW), Nettle and Gordon JJ stated the principles governing the task of a court where it is alleged a decision is unreasonable as follows:
78 The task of the court, where it has been alleged that a decision is legally unreasonable, is to ask whether the exercise of power by the decision-maker was beyond power because it was legally unreasonable.
79 That task requires the court to assess the quality of the administrative decision by reference to the statutory source of the power exercised in making the decision and, thus, assess whether the decision was lawful, having regard to the scope, purpose and objects of the statutory source of the power.
80 Parliament is taken to intend that a statutory power will be exercised reasonably by a decision-maker. The question with which the legal standard of reasonableness is concerned is whether, in relation to the particular decision in issue, the statutory power, properly construed, has been abused by the decision maker or, put in different terms, the decision is beyond power. That question is critical to an understanding of the task for a court on review.
81 How that abuse of statutory power manifests itself is not closed or limited by particular categories of conduct, process or outcome. The abuse of statutory power is not limited to a decision affected by specific errors which bring about an improper exercise of power because, for example, the decision maker took into account an irrelevant consideration or failed to take into account a relevant consideration; or exercised the power in bad faith, or for a purpose other than a purpose for which it was conferred; or exercised the power in such a way that the result of the exercise of power is uncertain.
82 Nor is the abuse of statutory power limited to a decision which may be described as "manifestly unreasonable", or to what might be described as an irrational, if not bizarre, decision that is so unreasonable that no reasonable person could have arrived at it. A conclusion of legal unreasonableness may be outcome focused - where, for instance, there is no "evident and intelligible justification" for the decision. As Gageler J explained in Minister for Immigration and Citizenship v Li, "[r]eview by a court of the reasonableness of a decision made by another repository of power 'is concerned mostly with the existence of justification, transparency and intelligibility within the decision making process' but also with 'whether the decision falls within a range of possible, acceptable outcomes which are defensible in respect of the facts and law'".
83 Indeed, grievous error may result if a court on review had to identify a particular error to found its conclusion of unreasonableness. If the court approached the assessment in this way, at least one important part of the lens for assessing legal unreasonableness would be removed: namely, error identified by observing that the result is so unreasonable that it could not have been reached if proper reasoning had been applied in the exercise of the statutory power in the particular circumstances. In that situation, the court is not undertaking merits review of an exercise of a discretionary power by a decision maker. Rather, the court is asking whether the decision maker's purported exercise of power was beyond power because it was legally unreasonable.
84 Moreover, legal unreasonableness is invariably fact dependent and requires a careful evaluation of the evidence. That is, assessment of whether a decision was beyond power because it was legally unreasonable depends on the application of the relevant principles to the particular factual circumstances of the case, rather than by way of an analysis of factual similarities or differences between individual cases. Where reasons are provided, they will be a focal point for that assessment. It would be a rare case to find that the exercise of a discretionary power was unreasonable where the reasons demonstrated a justification for that exercise of power.
85 On review, a conclusion by a primary judge that a decision maker has exercised a power in a manner which is unreasonable does not depend upon the exercise of any discretion by the primary judge. It may involve an evaluative process. But labelling the task of a primary judge as "evaluative" does not entitle an appeal court to determine, for example, that the purported exercise of power by the decision maker was valid because it was not legally unreasonable but then, nonetheless, go on to conclude that it was open to the primary judge to reach the opposite view.
(Emphasis in original, footnotes omitted)
26 The reasoning of Allsop CJ in Stretton necessarily must be subject to any express or implied contrary statements of the High Court but we are satisfied that there is no inconsistency between Allsop CJ's analysis of the law as expressed in Stretton and the reasoning of Nettle and Gordon JJ in SZVFW. Nor was there anything said by Keifel CJ (at [10]-[15]) in SZVFW to suggest her Honour doubted the propositions stated in Stretton. Gageler J (at [59]-[60]) and Edelman J (at [135]) each referred approvingly to aspects of Allsop CJ's reasoning. We accordingly proceed on the basis that neither the reasoning of the plurality in SZVFW nor that of any single judge of the High Court stands in the way of this Court having recourse to the reasoning in Stretton to further illuminate how the relevant principles governing legal unreasonableness as expressed in SZVFW (binding on us) are to be assessed and applied. Neither party submitted otherwise.
27 How then do those principles apply in the facts in this case?
28 It will be recalled that Mr Mohammed made a combined application on 11 September 2012 for both a Temporary Partner visa and a Permanent Partner visa. He did so by ticking the single box on the relevant form (Form 47SP) as supplied by the Department of Immigration and Border Protection (the Department).
29 Mr Mohammed's application for a Temporary Partner visa was subsequently refused by a delegate of the Minister. Mr Mohammed sought review in the MRT (as it then was). On 18 December 2014, the MRT affirmed the Minister's decision.
30 On 12 February 2017 the Tribunal affirmed a decision of the delegate of the Minister not to grant Mr Mohammed a Permanent Partner visa. The Tribunal's decision was based on Mr Mohammed's want of satisfaction of cl 801.221 of Sch 2 to the Regulations which, as discussed above, relevantly required an applicant for a Permanent Partner visa to hold or to have held, a Temporary Partner visa.
31 It was not until 12 October 2018, by consent, that the MRT's decision in respect of Mr Mohammed's application for a Temporary Partner visa was set aside by the FCCA and the matter remitted to the Tribunal (now subsuming the role of the former MRT) for determination according to law. In setting aside that decision the primary judge annotated those orders to record:
The Minister consents to the decision of the Migration Review Tribunal made on 18 December 2014 in matter number 1312032 being set aside because it is affected by the error identified in Waensila v Minister for Immigration and Border Protection (2016) 241 FCR 121; [2016] FCAFC 32.
32 Upon the MRT's decision of 18 December 2014 being set aside by the order of the FCCA, that decision was judicially recognised to have been, in law, at all times, merely purported, and no decision at all. In his oral submissions Mr Knowles did not press the proposition advanced at footnote 29 of his written submissions, on the authority of Jadwan Pty Ltd v Secretary, Department of Health and Aged Care [2003] FCAFC 288; 145 FCR 1, that the jurisdictional error affecting the MRT's decision may not necessarily have such a legal consequence. Given the terms of the consent annotation and consent orders made by the primary judge the concession was appropriately made.
33 It is therefore uncontentious that the MRT's (now the Administrative Appeals Tribunal by reason of the tribunals' amalgamation) review in respect of Mr Mohammed's application for a Temporary Partner visa was never validly completed. As a matter of law, it remained and remains pending.
34 Thus when the Tribunal affirmed the Minister's decision to refuse Mr Mohammed a Permanent Partner visa, as a matter of law no decision had yet been made by it in respect of his application for a Temporary Partner visa.
35 However, to establish the context for the submissions advanced on behalf of the Minister in this appeal it is common ground that as at the time of its decision neither the MRT nor Mr Mohammed (or the Minister) were aware, or could have been aware, that as a matter of law the earlier decision of the MRT made in December 2014 may have been, or was, infected by legal error. The possibility that that might be so became evident only after the Tribunal had made its decision to affirm the Minister's decision to refuse Mr Mohammed a Permanent Partner visa. It did so upon the publication of the decision in Waensila a month later on 11 March 2016.