Ground 1(c)
34 By this ground the applicant asserts that the primary judge erred in law by failing to hold that the Tribunal's credit findings were unreasonable and/or irrational.
35 The primary judge addressed this aspect of the applicant's claims at [26] to [36] of her judgment. The applicant submitted before the primary judge that the Tribunal's adverse credit findings against her were based on flimsy or incorrect factual foundations analogous to the circumstances in Minister for Immigration and Border Protection v SZSNW [2014] FCAFC 145 (SZSNW). Those parts of SZNSW relied on by the applicant were extracted by the primary judge at [26] and [27] as follows:
26 The first aspect concerns the Tribunal's adverse credit finding against the applicant. It was submitted that the Tribunal's conclusions were based on flimsy or incorrect factual foundations, analogous to the circumstances in Minister for Immigration and Border Protection v SZSNW [2014] FCAFC 145 (SZSNW) …
27 The observations by Mansfield J in SZSNW, submitted the applicant, are also applicable. Mansfield J said:
[15] It is clear from Li [Minister for Immigration and Citizenship v Li [2013] HCA 18; (2013) 249 CLR 332] that the principle or standard of reasonableness generally applies to decisions made under the Act, and is not confined to discretionary decisions. The reasons for judgment of French CJ addressing "Reasonableness" would appear to be directed to the exercise of a statutory discretion: see at [23], but his Honour's observations at [26]-[30] are of more general application. His Honour refers to "the rules of reason" as an essential element of lawfulness in decision-making, and to "the framework of rationality", as a descriptor of a range of what might be seen as subsets of, or illustrations of, that general principle. Some illustrations referred to do not relate to discretionary judgments. The plurality judgment at [72] made the same point, as did Gageler J at [91]-[92]. Gageler J in [91] also made the point through a reference to Minister for Immigration and Ethnic Affairs v Teoh (1995) 183 CLR 273 at 300 that the implied condition of reasonableness covers both why a decision is made and how it is made.
[16] Like French CJ in Li at [30], I do not find it necessary to explore whether the boundaries of rationality and reasonableness differ in principle. That is because, in this matter, notwithstanding the detailed reasons of the IMR for rejecting the claim of the first respondent, the decision of the IMR is unreasonable in the sense discussed in Avon Downs Pty Ltd v Federal Commissioner of Taxation (1949) 78 CLR 353 at 360 per Dixon J, and as explained by Lord Greene MR in Associated Provincial Picture Houses Ltd v Wednesbury Corporation [1948] 1 KB 223 at 234. It is not a matter where the IMR's decision is within the area of "decisional freedom" (as explained by French CJ in Li at [28]) because it wrongly attributes to the first respondent a failure to complain of a particular matter in circumstances where, plainly, that complaint was made and it significantly builds on that wrongful attribution to reject the claims generally made by the first respondent.
36 The primary judge found that this case was not like SZSNW and that the Tribunal's credit finding "was not based on a material error of fact. It was based on the Tribunal's overall assessment of the applicant in the giving of her evidence, both in chief and under questions from the respondent's counsel": Munswamy at [28]. The primary judge extracted those parts of the Tribunal's reasons where it commented on its overall impression of the applicant's credit commencing at [28] of her judgment:
… The overall impression the Tribunal formed was as described at [10] of its reasons, namely, that:
We did not consider Ms Munswamy to be a convincing witness. She gave vague replies at the Tribunal, and answers to questions often either retreated into can't recall, or answering to best advantage.
[29] The Tribunal reiterated its adverse view of the applicant's credit as follows:
59. We were not satisfied that Ms Munswamy was entirely candid in reporting her levels of pain and its duration. Her evidence was sometimes quite vague…
…
101. As discussed above, we consider that there are issues of credit involving Ms Munswamy in this matter.
37 The primary judge did not accept that the matters set out at [11] of the Tribunal's reasons were reasons for the Tribunal's conclusion about the applicant's credit. Rather at [30] the primary judge found that they were examples of "specific instances that the Tribunal considered supported the impression it had formed based on the applicant's evidence". The primary judge addressed each of the examples included at [11] of the Tribunal's decision concluding that none of the evidentiary findings was irrational or illogical: Munswamy at [31] to [35].
38 The applicant submits that the Tribunal's finding that the applicant was an unreliable witness was based on the incidents it set out at [11] of its reasons. She says that the Tribunal's adverse credit findings were highly prejudicial to the fair assessment of the applicant's case and were either irrelevant or based on erroneous assumptions of fact that should have been known to the Tribunal at the time.
39 In order to address this ground it is necessary to consider [11] of the Tribunal's decision which is as follows:
11. Amongst others, we noted the following:
• Notwithstanding that 2006 and 2004 consultations with doctors about her back and leg pain had already been the subject of evidence at the Tribunal in 2009, Ms Munswamy gave evidence before us that she was unable to recall 2006 and 2004 injuries. She was reluctant to admit that she had suffered any back pain prior to 2008.
• We noted that the history Professor McGill elicited from Ms Munswamy was that she had no incidents prior to that of 30 January 2008. However, he noted from the medical records that her doctor had recorded as follows:
• 5 December 2006 -muscle pain in her back. Hurts moving arm and back. No injury or strain. Voltaren prescribed
• 28 October 2007 - [one week] gradual onset of pain at left lower anterior chest wall aggravated by movement. Disturbed sleep. Woke up with same pain. Tender +++. Denied any trauma. Brufen continued.
• 5 March 2008 - injured her back last [month] after picking up an oversize unlabel [sic] parcel ...
• 5 May 2009 - Dr B Darwish, a neurosurgeon and spinal surgeon, recorded: she continues to complain of lower back pain not radiating anywhere and not associated with any sensory or motor symptoms. Her examination was unremarkable. Advised continue analgesics.
• Ms Munswamy's evidence regarding a consultation with Dr Lee on 18 November 2004 where she allowed her brother-in-law to use her Medicare card, and at which it seems from the doctor's notes that she was not present. Dr Lee's medical notes of 18 November 2004 indicate as follows:
only partner present
request voltaren for leg pain
suggest to come in for examination
due for her pap smear
• Ms Munswamy denied she agreed to sign consent orders at the Tribunal in April 2011, stating that she was coerced to sign. We reject that evidence on the basis that she was legally represented throughout the proceedings.
40 I agree with the primary judge's characterisation that the findings in [11] were examples of instances that supported the Tribunal's overall view of the applicant's credit. Were then any of the findings illogical or irrational?
41 In relation to the first finding, concerning the applicant's failure to recall injuries sustained in 2004 and 2006, I note that the applicant was cross examined by the respondent's counsel in relation to this issue. She gave evidence that she could not recall those injuries despite the fact that she was asked about them in proceedings in 2009 before the Tribunal. As the primary judge noted, whether or not the applicant had suffered back pain prior to 2008 was not the point. Rather, in circumstances where the applicant had been confronted relatively recently about events in 2004 and 2006, it was open to the Tribunal to infer that she was likely to recall those matters yet, she could not recall them. There was nothing irrational or illogical about this finding.
42 In relation to the second finding the Tribunal was not, as the primary judge observed, saying that Professor McGill's notes of events after 2008 were relevant to the applicant's reluctance to recall pain prior to 2008.
43 The third point concerns the applicant's evidence that she allowed her brother-in-law to use her Medicare card for a consultation with Dr Lee. There is nothing irrational, unreasonable or illogical about the Tribunal taking this evidence into account in relation to its overall finding about the applicant's credit. As identified by the primary judge, the relevance of the evidence was not in relation to the clinical notes there recorded and who was reporting the leg pain but rather the fact that the applicant permitted another person to use her Medicare card.
44 The last point concerns the applicant's evidence that she was coerced into signing the consent orders in April 2011. The Tribunal rejected that evidence on the basis that she was legally represented. In oral submissions the applicant's counsel put that there was no evidence on which that conclusion could be based and that it was irrational. It was contended that because the solicitor acted on a "no win, no pay" basis he would find himself in a position of conflict, preferring his own interests to that of his client. When asked whether there was evidence of the basis of the solicitor's retainer before the Tribunal, counsel for the applicant informed me that there was no such evidence.
45 Counsel for the applicant referred me to the cross examination of the applicant before the Tribunal on this issue. In that evidence the applicant acknowledges that she settled the proceedings, says that she signed the statement because her solicitor said "you've got to sign this document", that she did not read it, she did not understand it and that he, which I understand to be a reference to her solicitor, made her sign it.
46 There is no evidence or suggestion that any allegation of the kind now referred to by the applicant against the applicant's solicitor was made in the Tribunal. Nor was there any evidence to support such an allegation before the Tribunal. In my view, there was evidence before the Tribunal on which it could make the finding that it did, it was not bound to accept the applicant's evidence and it was entitled to make a finding about her evidence as it did. As the primary judge found, the Tribunal's finding was not irrational.
47 As the primary judge noted at [35] of her judgment it was a matter for the Tribunal to make credit findings as it saw fit. She continued:
… To suggest that, in so doing, the Tribunal acted unreasonably or irrationally is an illegitimate invitation to this Court, on fragments of the evidence that was before the Tribunal, to interfere with a matter that was squarely within the remit of the Tribunal, involving matters of fact and degree, as well as of evaluation and impression. The illegitimate invitation for this kind of review is a very long way from the kind of appeal s 44 permits and thus must be rejected.
48 In Kelly v Australian Postal Corporation [2015] FCA 1064 (Kelly) at [55] to [60], Griffiths J relevantly said:
55 As the Full Court observed in Tarrant v Australian Securities and Investments Commission [2015] FCAFC 8; (2015) 317 ALR 328 at [100(g)] (duplicate citations omitted):
…the weighing and evaluation of various pieces of evidence is a matter for the AAT and is generally not susceptible to review in either judicial review proceedings for jurisdictional error (see Abebe v Commonwealth of Australia (1999) 197 CLR 510 at [197] per Gummow and Hayne JJ and Minister for Immigration and Citizenship v SZJSS (2010) 243 CLR 164; [2010] HCA 48 at [33] (SZJSS) per French CJ, Gummow, Hayne, Heydon, Crennan, Kiefel and Bell JJ), or in an 'appeal' under s 44 of the AAT Act (see Brown v Repatriation Commission [2006] FCA 914 at [7] per Branson J and Fisse v Secretary, Department of the Treasury (2008) 172 FCR 513; [2008] FCAFC 188 at [152] per Flick J). As the Full Court (Fox, Deane and Morling JJ) observed in Collins v Minister for Immigration and Ethnic Affairs (1981) 58 FLR 407 at 410-411 in the context of an appeal under s 44 of the AAT Act and in response to a claim that a Tribunal decision was against the evidence or the weight of the evidence (emphasis added):
A number of authorities was cited by counsel for the appellant in support of the propositions that the making of a decision against the evidence or the weight of the evidence and the making of an unreasonable decision are errors of law. We find it unnecessary to examine these authorities for the reason that, in our opinion, there is no factual basis to found those propositions. We would, however, comment that the concepts of a decision being against the evidence and of being against the weight of the evidence belong to appeals from courts of law and have particular application to jury verdicts. Even in that context, they did not involve questions of law. They certainly have no place when the appeal, or review, is of proceedings of an administrative tribunal which is not bound by the rules of evidence, subject to their obligation to observe the requirements of natural justice, can inform itself as it chooses (see, s 33(1)(c) of the Administrative Appeals Tribunal Act 1975.) An appellant who attacks a conclusion of the Tribunal because of deficiency of proof said to amount to error of law must show, if he is to succeed, that there was no material before the Tribunal upon which the conclusion could properly be based…
56 Nor do I accept that the AAT's reasoning is illogical (ground 3) or its decision to prefer Dr Smith's evidence to that of Dr Parsonage to be unreasonable in the legal sense of that term (ground 4). As Crennan and Bell JJ held in Minister for Immigration and Citizenship v SZMDS [2010] HCA 16; (2010) 240 CLR 611 (SZMDS) at [131]:
… the test for illogicality or irrationality must be to ask whether logical or rational or reasonable minds might adopt different reasoning or might differ in any decision or finding to be made on evidence upon which the decision is based. If probative evidence can give rise to different processes of reasoning and if logical or rational or reasonable minds might differ in respect of the conclusions to be drawn from that evidence, a decision cannot be said by a reviewing court to be illogical or irrational or unreasonable, simply because one conclusion has been preferred to another possible conclusion.
57 Although these observations were directed to the head of the judicial review relating to illogicality, they are also relevant where an error of law based on illogical reasoning is raised in a s 44 AAT Act appeal, as here. …
58 Similar considerations apply in rejecting the applicant's complaint of unreasonableness. Li is the leading current High Court authority on that ground of review, at least in a judicial review context. For the applicant to establish that the AAT's decision to prefer the medical opinion of Dr Smith over that of Dr Parsonage is unreasonable in the legal sense of that term, it is insufficient to demonstrate that another decision-maker may have come to a different conclusion. Rather, in the circumstances here, the applicant needed to demonstrate that the AAT's preference was arbitrary, capricious or devoid of common sense (Li at [28] per French CJ) or that it lacked "an evident and intelligible justification" (Li at [76] per Hayne, Kiefel and Bell JJ). The AAT's preference for the views of Dr Smith (and Dr Shaw) over that of Dr Parsonage may be one upon which reasonable minds could differ but it is not irrational or unreasonable to prefer one opinion over another (see SZMDS at [78] per Heydon J and at [121]-[131] per Crennan and Bell JJ). As French CJ observed in Li at [30] (citations omitted):
The requirement of reasonableness is not a vehicle for challenging a decision on the basis that the decision-maker has given insufficient or excessive consideration to some matters or has made an evaluative judgment with which a court disagrees even though that judgment is rationally open to the decision-maker. Gleeson CJ and McHugh J made the point in Eshetu that the characterisation of somebody's reasoning as illogical or unreasonable, as an emphatic way of expressing disagreement with it, "may have no particular legal consequence."
59 Different considerations arise where an administrative decision-maker has given reasons for a decision and there is a claim of unreasonableness. As the Full Court observed in Minister for Immigration and Border Protection v Singh [2014] FCAFC 1; (2014) 308 ALR 280 (Singh) at [47]:
This question highlights the distinctions made between reasonableness review which concentrates on the outcome of the exercise of power, and reasonableness review which concentrates on an examination of the reasoning process by which the decision-maker arrived at the exercise of power. Although it is not necessary for the purposes of this appeal to resolve the question whether those should be seen as two different kinds of review and what might flow from that, we are inclined to the opinion that, where there are reasons for the exercise of a power, it is those reasons to which a supervising court should look in order to understand why the power was exercised as it was. The "intelligible justification" must lie within the reasons the decision-maker gave for the exercise of the power - at least, when a discretionary power is involved. That is because it is the decision-maker in whom parliament has reposed the choice, and it is the explanation given by the decision-maker for why the choice was made as it was which should inform review by a supervising court. It is not, as in House v R (1936) 55 CLR 499, on an appeal from an exercise of a judicial discretion, for the court to re-exercise the discretion. If a supervising court goes outside the reasons given by a decision-maker for another justification for the exercise of power, that court might then be seen to be placing itself in the position of the repository of the power and therefore acting impermissibly. Where there are reasons, either the reasons given by the decision-maker demonstrate a justification or they do not. It would, we think, be a rare case where the reasons demonstrate a justification but the ultimate exercise of the power would be seen to be legally unreasonable.
60 Decisions such as Li, SZMDS and Singh all emphasise the need for judicial self-restraint in applying heads of judicial review concerning illogicality and unreasonableness. Such restraint is related to the legitimacy of judicial review and the need to ensure that it is confined to its proper province. Similar constraints arise in the context of a s 44 AAT Act appeal where an applicant raises errors of law based on illogicality or unreasonableness. …
49 I can discern no error in the approach of the primary judge in considering the Tribunal's credit findings in relation to the applicant. As the primary judge found the Tribunal made its findings on the basis of the evidence before it. There is no irrationality or illogicality in those findings in the sense described by the authorities which are summarised by Griffiths J in Kelly. There is no merit to this ground.