EDELMAN J.
Introduction
Speaking in the context of the adjudication of questions of construction of legislation, Aronson, Groves and Weeks observe that "[o]ne of the assumptions underlying Marshall CJ's judgment in Marbury v Madison remains to this day, namely, that to every question of law, there can be only one right answer". On judicial review of, or appeal from, a decision concerning the construction of legislation, a contract, a will, or a trust, no latitude is given to a primary decision maker even where the primary decision was one about which opinions might reasonably differ. "As to construction, there is always one and only one true meaning to be given to fully expressed words."
However, there are other categories of case, also where the primary decision is one about which opinions might differ, but where, other legal errors aside, review is limited to, or an appeal is constrained to, decisions outside a permissible range. On judicial review of administrative action, the legality of an otherwise lawful decision disclosing no error of law is generally assessed for reasonableness rather than for correctness. On appeals from decisions commonly described as "discretionary", judicial restraint is also required even if the appellate judge would have reached a different decision. For instance, in criminal law, the classic example is that a sentence will not usually be overturned merely because the appellate judge would have made a different order. In civil law, the classic example concerns an assessment of general damages for personal injury.
This appeal concerns the nature of judicial restraint in these two categories. The Refugee Review Tribunal had affirmed a decision of a delegate of the Minister to refuse to grant protection visas to the first and second respondents. The Federal Circuit Court of Australia held that the Tribunal acted beyond power on the ground of unreasonableness. On appeal, the Full Court of the Federal Court of Australia effectively held that judicial restraint should be exercised because the decision of the Federal Circuit Court was "largely an evaluative one" and comparable to circumstances where a "discretionary" decision is made.
The first issue on this appeal concerns the nature of judicial review for legal unreasonableness. For the reasons below, the Federal Circuit Court erred in concluding that the decision of the Tribunal should be set aside on the ground of unreasonableness. The second issue concerns the circumstances in which judicial restraint should be exercised on an appeal. The Full Court should not have exercised judicial restraint on the appeal from the Federal Circuit Court. This appeal should be allowed.
Judicial review for unreasonableness
The basis for judicial review on the ground of unreasonableness
The reasonableness constraint that usually applies to the exercise by an administrator of statutory power is generally based upon a statutory implication. Where the statutory implication imposes a duty of reasonableness as a condition of decision making, violation of that duty means that the decision will have been made beyond power and therefore unlawfully. This appeal, and the discussion that follows, is concerned only with unreasonableness as an independent ground of judicial review. It is not concerned with unreasonableness as a description of those other grounds of judicial review concerned with specific errors in decision making, such as "[b]ad faith, dishonesty ... attention given to extraneous circumstances, [and] disregard of public policy".
The implication of reasonableness is not unique to statutes. When a legal power is conferred by an instrument, it is often implied that the legal power will be exercised reasonably. For instance, at least where reasons are given, courts will examine the exercise of general powers in trust deeds or will trusts to determine whether the decision could reasonably have been reached by the trustee. Even in contract, where powers are usually expected to be exercised with self-interest, a contractual clause that empowers one party to act to the detriment of another has sometimes been construed to require the power holder to reach the decision reasonably or, in more detail, "reasonably and with fair dealing having regard to the interests of the parties (which will, inevitably, at times conflict) and to the provisions, aims and purposes of the contract, objectively ascertained". In every case the terms of the statute or instrument, in their context, determine whether the implication is required.
The precise content of the implied duty of reasonableness will also depend on the circumstances. In England it has been said that the terms and context of a contract might impliedly proscribe "a decision to which no reasonable person having the relevant discretion could have subscribed". Similarly, when a trustee has an implied duty to act reasonably in the exercise of a power of appointment, perhaps in cases other than those where reasons are provided, it may sometimes be that the duty of reasonableness obliges the trustee not to act perversely or in a manner in which "no reasonable trustee ... could possibly act". Ultimately, however, the assessment of reasonableness will be undertaken in light of a construction of the instrument as a whole, and influenced by expressions such as "their sole and absolute discretion" in the empowering provision.
Like other legal instruments, statutes often confer powers upon a decision maker without any express condition as to the manner in which those powers must be exercised. To the question: "how should the power be exercised?" the implication will not usually be: "in any way that the decision maker desires". Rather, it will usually be implied that the power should be exercised reasonably. As for the content of the duty of reasonableness, following the classic exposition by Lord Greene MR, the content of the implication of reasonableness as an independent ground of judicial review has often been expressed in this Court in terms similar to those which ask whether a decision is "so unreasonable that no reasonable repository of the power could have taken the impugned decision or action". In Canada, in a distinction now abandoned, this high standard of unreasonableness was once described as "patent" unreasonableness in contrast with "unreasonableness simpliciter". Although Lord Cooke of Thorndon presciently observed nearly two decades ago, and a majority of this Court more recently said, that the legal standard of reasonableness is not necessarily limited to patent unreasonableness, it is not helpful to attempt to divide unreasonableness into predetermined species. Rather, the precise content of an implication of reasonableness, where it is implied, will be based upon the context, including the scope, purpose, and real object of the statute.
An important matter of context in relation to the statutory implication is the legal tradition in which many statutes conferring administrative powers have been enacted. A strong part of that tradition has been the common description of unreasonableness in the terms of "patent" unreasonableness. One reason for this description may be that the consequence of a finding of unreasonableness is that the decision by the body entrusted by Parliament will be beyond power and unlawful. The strong terms of the common description of unreasonableness may be based upon an assumption that Parliament did not manifest an intention that such a conclusion be lightly reached. To reiterate, this is not to suggest that there are two, or more, tests of unreasonableness. There is only one, but its content is assessed in light of the terms, scope, purpose, and object of the statute, as Allsop CJ eloquently said in Minister for Immigration and Border Protection v Stretton.
The unreasonableness conclusion of the Federal Circuit Court
The first respondent and his wife, the second respondent ("the respondents"), applied to the Tribunal for review of a decision of a delegate of the Minister, who had refused their original applications for Protection (Class XA) visas. The respondents did not attend the Tribunal hearing.
At the relevant time, if an applicant for review were invited (under s 425 of the Migration Act 1958 (Cth), with the notice required under s 425A) to appear before the Tribunal and did not appear at the designated time and place, s 426A(1) of the Migration Act empowered the Tribunal to make a decision on the review "without taking any further action to allow or enable the applicant to appear before it". There was no dispute in this Court that the respondents had been invited, in compliance with the requirements of the Migration Act, to appear before the Tribunal. They did not appear at the designated time and place.
The Tribunal proceeded to hear the matter in the absence of the respondents. The reasons that the Tribunal gave for doing so were essentially threefold: (i) the respondents had been invited to appear before the Tribunal by a letter that was sent to their last identified address for correspondence; (ii) in the letter sent to the respondents the Tribunal had said that, if the respondents did not attend the scheduled hearing, the Tribunal may make a decision without taking any further action to allow or enable them to appear; and (iii) the respondents had not made any contact with the Tribunal, including to provide any further documentation, in respect of their scheduled appearance or the review application more generally.
The respondents sought review of the Tribunal's decision. The Federal Circuit Court held that the Tribunal had acted unreasonably when it proceeded under s 426A of the Migration Act in the absence of the respondents to consider, and refuse, their applications for protection visas. The primary judge relied upon a number of matters in reaching her conclusion that the decision was unreasonable: (i) the lack of evidence before the Tribunal that the letter was delivered by ordinary post; (ii) the relatively short period of time between the sending of the invitation and the hearing; (iii) the significance of the hearing to the respondents; and (iv) the lack of "follow-up" by the Tribunal in the absence of a response from the respondents, despite the Tribunal having the respondents' email address and a telephone number.
The matters relied upon by the primary judge do not, even in combination, establish legal unreasonableness. In particular, two matters of statutory context require a highly demanding approach in determining whether legal unreasonableness exists in the exercise of the power under s 426A(1), which is in Div 4 of Pt 7 of the Migration Act. First, there was the objective of review of protection visa decisions under Pt 7, expressed in s 420(1) as providing a mechanism that is "fair, just, economical, informal and quick". Secondly, and in relation to "fairness and justice", s 422B(1) provided that "[Div 4] is taken to be an exhaustive statement of the requirements of the natural justice hearing rule in relation to the matters it deals with" and, as Nettle and Gordon JJ observe, the effect of s 441C(4) was to deem the respondents to have received the invitation to the hearing.
The decision by the Tribunal, for the reasons it gave, was not legally unreasonable. Three further reasons, additional to those given by the Tribunal, are also relevant. First, in the original applications by the respondents to the Minister, they undertook to inform the Department if they intended to change their address for more than 14 days while their applications were being considered. No change of address was provided. It was reasonable for the Tribunal to draw the inference that the respondents were still accessing mail at that address. Secondly, the letter from the Department refusing the respondents' original applications was sent to their nominated address. Thirdly, prior to the decision of the delegate, the respondents had not attended a scheduled interview with the Department, despite apparently being made aware of the interview by letters sent to their nominated address and a telephone call rescheduling the interview. It would have been reasonable to infer that a rescheduled hearing before the Tribunal might have been futile.
Judicial restraint on appeals
The second issue on this appeal is whether the principles of judicial restraint could preclude an appellate court from substituting its own view on whether the Tribunal's decision was unreasonable if the appellate court considered that the answer given by the primary judge was open in the circumstances.
Judicial restraint, deference, and discretionary decisions
The concept I describe in these reasons (and have described previously) as "judicial restraint" is one for which different labels are sometimes used. One label commonly used is the review of a "discretionary decision". Another is the review of a decision where "deference" is afforded to the primary decision maker. Although labels in this area "ought not to fetter our substantive thinking", the use of some labels can lead to confusion, as it did in this case.
The label "discretionary", when used in relation to a decision that is the subject of judicial restraint, was said by Gleeson CJ, Gaudron and Hayne JJ in Coal and Allied Operations Pty Ltd v Australian Industrial Relations Commission to describe a situation in which "'no one [consideration] and no combination of [considerations] is necessarily determinative of the result'. Rather, the decision-maker is allowed some latitude as to the choice of the decision to be made". Similarly, in Norbis v Norbis, Mason and Deane JJ spoke of a discretionary decision as one involving "value judgments in respect of which there is room for reasonable differences of opinion".
In addition to cases involving these "discretionary" decisions, there are other, similar circumstances where judicial restraint is exercised by extension from these cases. In Miller v Jennings, Dixon CJ and Kitto J exercised judicial restraint in the assessment of general damages, saying that "there is generally so much room for individual choice so that the assessment of damages is more like an exercise of discretion than an ordinary act of decision". More controversially, four members of this Court in Batistatos v Roads and Traffic Authority (NSW) might be taken as suggesting that the duty of a court to exercise its power to prevent an abuse of process is subject to appellate judicial restraint for the same reasons. A similar approach was thought by the Full Court to apply in this case. The Full Court said that an appellate court will approach its consideration of a primary judge's assessment of the unreasonableness of the Tribunal's decision by "broad analogy" with "helpful guidance ... from well-known authorities which emphasise the need for caution by an appellate court which is asked to disturb the outcome of a discretionary judgment".
The expression "discretion" is commonly used and unobjectionable. But, to avoid confusion, it must be used with care. There are two reasons for this.
First, "discretion" can be a slippery term that is used in law in a number of different ways. Even in the particular sense described above - a situation where no one consideration is determinative of the result - the label could be attached to almost any circumstance where legal standards impose duties upon a decision maker but the decision maker is required to evaluate different, competing considerations. Not all of those circumstances require the exercise of judicial restraint when reviewing the decision of the primary decision maker. In other words, although the notion of "discretion" is associated with "room for individual choice", there is a danger that it will be thought that a decision concerning an evaluative, and uncertain, legal issue is one that should be subject to judicial restraint upon review. This danger is exemplified by the approach of the Full Court in this case.
Secondly, some categories of decision that were once discretionary are still described as such, although they are no longer the subject of any real judicial restraint. For instance, the historical foundation of much equitable doctrine lay in the notion of a discretionary application of conscience. This Court has said of equitable remedies that "the interference of a court of equity is a matter of mere discretion". Yet, it is well recognised that legal rules now govern the equitable "discretion" to award specific performance, to grant injunctions, or to award an account of profits. No judicial restraint is exercised by appellate courts in considering whether there has been compliance with those rules.
In other jurisdictions, the language of discretion as a description of circumstances in which judicial restraint is exercised is often replaced by describing the decision as one where "deference" is afforded to the primary decision maker. For instance, in the House of Lords in R v Director of Public Prosecutions; Ex parte Kebilene, Lord Hope of Craighead said that some categories of case created an area "within which the judiciary will defer, on democratic grounds, to the considered opinion of the elected body or person". And in the Supreme Court of Canada in Dr Q v College of Physicians and Surgeons of British Columbia, McLachlin CJ, writing for the Court, said that a reviewing judge's task was "to review the decision with the appropriate degree of curial deference". But the label "deference" has been deprecated in Australia. It has historical, unfortunate connotations of servility. Where judicial restraint is exercised, the appellate or reviewing court is not deferring to the primary decision maker in the sense of submission to the "source" or "pedigree" of the decision. Rather, the court is recognising that in cases where judicial restraint is required, then within a range of possible, usually reasonable, decisions made in the proper way, the court is required not to interfere with the primary decision.
When judicial restraint is required
Sometimes the reason for judicial restraint is said to be that "there is room for reasonable differences of opinion, no particular opinion being uniquely right". This explanation might be said to confuse uncertainty with indeterminacy but, in any event, it cannot be sufficient because otherwise it could mean that restraint could be exercised even when reviewing decisions about the legal meaning of legislation or decisions about the common law. Although there is often room for reasonable differences of opinion in those cases which "consist of reasoned thinking supporting one view or the other", and although judges sometimes avoid the language of correctness, saying that they "adopt, accept, or prefer one argument to the other", there is no judicial restraint exercised in Australia when reviewing a primary decision concerning the legal meaning of a legislative provision or the common law.
Where the source of the power and grounds of review is statutory, then any requirement for judicial restraint should be implied from, or based upon, the terms of the statute. For instance, the judicial restraint required on review of the quantum of an award of contribution between tortfeasors arises where the relevant statute creating that power "intends to give a very wide discretion to the judge or jury entrusted with the original task", and from the breadth of that discretion it is inferred that "[m]uch latitude must be allowed to the original tribunal". On the other hand, as the appellant observed in written submissions, a statutory provision that proscribes "conduct that is unconscionable, within the meaning of the unwritten law", is, like the doctrine of unconscionability in equity upon which it is based, not one that requires judicial restraint, at least to the extent that the evaluative exercise is not affected by the natural limitations of the appellate judge.
One significant indication of a manifested legislative intention that judicial restraint should be exercised upon review is the breadth of the decision making power afforded to the primary decision maker. In Coal and Allied Operations Pty Ltd v Australian Industrial Relations Commission, Gleeson CJ, Gaudron and Hayne JJ focused upon the statutory breadth of the decision making power, saying:
"The latitude may be considerable as, for example, where the relevant considerations are confined only by the subject matter and object of the legislation which confers the discretion. On the other hand, it may be quite narrow where, for example, the decision-maker is required to make a particular decision if he or she forms a particular opinion or value judgment."
Their Honours characterised as "discretionary decisions" requiring judicial restraint those involving (i) the satisfaction or otherwise of the decision maker that industrial action being pursued was a threat for the purposes of s 170MW(3) of the then Workplace Relations Act 1996 (Cth), and (ii) whether the bargaining period should be terminated.
The breadth of a statutory decision making power is not conclusive of a manifested statutory intention that judicial restraint should be exercised upon review of the decision. All matters of statutory context are relevant. Those matters include the nature of the rights in issue and the manner in which they have historically been adjudicated, the extent to which the subject matter of the decision is concerned with matters of general public interest rather than merely individual rights and interests, and the expertise of the primary decision maker in the area of adjudication. Further, where the review is by way of an appeal, the nature of any restraint upon the judge will depend upon whether, on the proper construction of the legislation conferring the right of appeal, the appeal is by way of a hearing de novo, an appeal in the strict sense, or an appeal by way of rehearing. I agree with the section of Gageler J's reasons headed "The need for appealable error", concerning the difference between correction of error on an appeal in the strict sense and correction of error on an appeal by way of rehearing, and the natural limitations that can sometimes constrain an appellate judge reaching a conclusion that the primary decision maker erred.
No judicial restraint in an appeal concerning an unreasonableness finding
The power of the primary judge to make a finding of legal unreasonableness derived from s 476 of the Migration Act. That section provided the Federal Circuit Court with the same original jurisdiction that this Court has under s 75(v) of the Constitution, subject to exceptions that are not presently relevant. As I have explained, the primary judge's judicial review for legal unreasonableness involved both a question of law and the application of that law. Like questions of construction of legislation, contracts, wills, or trusts, it was a question about which it is readily acknowledged in this country that there can only be one right answer and an appeal from the decision is concerned with its correctness. It contrasts with questions such as the sentence to be imposed for a crime or the general damages to be awarded for personal injury where the uncertainty of result is a significant factor, sometimes described as a circumstance where there is no right answer, which requires judicial restraint on an appeal from the decision.
The assessment of legal unreasonableness was also a legal question concerned with the boundaries of the authority of the Tribunal. Although there may be uncertainty in some, perhaps many, cases involving decisions of legal unreasonableness, and although the assessment of legal unreasonableness involves value judgments upon which it might be said that reasonable minds could differ, our constitutional tradition has never been to exercise judicial restraint in relation to appeals or judicial review of this category of question. If it were constitutionally permissible, there would need to be clear words in legislation, or a strong foundation for an inference, before an appellate court would depart from that tradition. There is no foundation for such an inference in the Migration Act.
Conclusion
The appeal should be allowed and orders made in the terms proposed by Nettle and Gordon JJ.