Did the Federal Circuit Court misconstrue the nature of its s 477(2) power?
37 The applicant relied on four indicators that the Federal Circuit Court misapprehended the nature of its power to extend time. These were:
(1) the manner in which the Court expressed and applied the test for extension of time. The applicant submitted that paragraph [11] of the Federal Circuit Court reasons is taken from paragraph [29] of Minister's submissions before the Federal Circuit Court, where reference is made to Hunter Valley Developments Pty Ltd v Cohen [1984] FCA 176; 3 FCR 344, the leading case on the discretion to extend time under s 11 of the Administrative Decisions (Judicial Review) Act 1977 (Cth).
(2) the absence of any reference to s 477(2) in the Federal Circuit Court's reasons. The fact that there is a reference to the time limit and to s 477(1) does not, the applicant submits, provide sufficient basis to infer the Federal Circuit Court understood what it needed to apply was the statutory test in s 477(2).
(3) the absence of any express findings of the two jurisdictional facts for which s 477(2) provides in paras (a) and (b). Had the Federal Circuit Court been adhering to the statute which conferred its power, the applicant submits it would have made the findings the statute required.
(4) in the only paragraph of the Federal Circuit Court reasons which could be said in any way to set out the test the Court had applied (at [55] of the Court's reasons), the use of a confused and inaccurate rendition of the test in s 477(2)(b).
38 There is some force in the applicant's submissions. The reasons of the Federal Circuit Court fail to set out the terms of s 477(2), being the power the Court was called on to exercise, and fail to set out with any accuracy or particularity the key statutory consideration in dispute and of which it had to be satisfied: namely, whether it was in the interests of the administration of justice to extend time. Even if, as the Minister submits, it is appropriate to substitute the word "serve" for the word "save" in [55] of the Federal Circuit Court's reasons, so that the sentence is not nonsensical, the phrase upon which the Federal Circuit Court fastens is not the statutory phrase. Nor does it have a source in authorities such as Hunter Valley Developments. Where the Federal Circuit Court has drawn the phrase from is unknown.
39 These are not matters in which an approach similar to that articulated by the High Court in Minister for Immigration and Ethnic Affairs v Wu Shan Liang [1996] HCA 6; 185 CLR 259 can or should be taken. These are the reasons of a judicial officer of a court constituted under Ch III of the Constitution, considering whether to extend time in relation to a jurisdiction which has parallels with s 75(v) of the Constitution. The reasons were given some three months after the hearing. Even making allowances for the busy and pressured nature of the jurisdiction of the Federal Circuit Court, it is reasonable to expect that the Court will set out with some accuracy the statutory basis for the powers it is called on to exercise. If that was done, arguments of the kind now raised would have had no prospects of success.
40 It is, as the Minister submitted, less critical in this case that there is no express finding whether the terms of s 477(2)(a) have been made out. On the evidence, the satisfaction of that provision was not in dispute. Further, if this was a matter which needed to be expressly set out, that would in my opinion only be the case where the Court had decided positively to exercise the discretion in favour of an applicant. Having decided to exercise the discretion to extend time, for it to be clear that the Court had appreciated the matters in s 477(2)(a) and (b) were conditions precedent to the exercise of that power, it would be arguable, at least, that the Court would need to make express findings on both paragraphs.
41 The decision of Wilcox J in Hunter Valley Developments, which has become the classic authority on the kinds of considerations which should be taken into account by a court in determining how to exercise a discretion to extend time, was a proceeding which concerned the extension of time discretion in the AD(JR) Act. As his Honour noted, the terms of s 11 of that Act do not set out any criteria for the exercise of the discretion. In Hunter Valley Developments at 348-350 what his Honour undertook was a distillation of matters which had been seen as relevant to the discretion in the authorities of the Federal Court to the point at which his Honour came to consider the issue. That list of factors has been endorsed repeatedly in this Court, and in the Federal Circuit Court, as providing guidance on how the exercise of discretion might be approached. Reliance on guidance such as that given by Wilcox J promotes consistency in approach to the manner in which the discretion to extend time is exercised. Consistency in approach is important where the discretion involved is one which is exercised frequently in this Court, and in the Federal Circuit Court.
42 The Hunter Valley Developments principles have also been regularly endorsed and applied to similar discretions to extend time, such as those located in the appeal provisions of the Federal Court Rules: see for example SZTRY v Minister for Immigration and Border Protection [2015] FCAFC 86 at [6]; Marsden v The Queen [2002] FCAFC 229 at [19]. The principles are also regularly applied in the Administrative Appeals Tribunal and some of its state and territory counterparts.
43 It has been said on many occasions that the Hunter Valley Developments principles are not to be taken as exhaustive, given the s 11 discretion is not expressly fettered. See for example Mentink v Minister for Home Affairs [2013] FCAFC 113 at [33]-[36] per Griffiths J, Edmonds J agreeing, citing with approval French J in Seiler v Minister for Immigration, Local Government and Ethnic Affairs [1994] FCA 878; 48 FCR 83 at 97. Similarly, it would be an incorrect approach to a discretion constrained by a consideration as broad as the "interests of the administration of justice" for the list of factors in Hunter Valley Developments to be seen as exhaustive of the content of that phrase.
44 I accept the applicant is correct to identify the question whether the failures in the Federal Circuit Court's reasons to set out the terms of the statutory power it was exercising and to make it clear that it sought to apply the terms of s 477(2) to the evidence before it mean that it did not understand the nature of the power it was exercising, and did not appreciate the mandatory considerations for which s 477(2) provides.
45 Resolving that question requires a determination whether the statutory phrase in s 477(2)(b) - "in the interests of the administration of justice" - requires any different approach in substance to that taken by the Federal Circuit Court, which undoubtedly was based on the guidance provided by Wilcox J in Hunter Valley Developments, as were the Minister's submissions to the Federal Circuit Court.
46 The parties were given leave to make short submissions after the hearing of the application on what might be drawn from the extrinsic material surrounding the introduction of this phrase into the Migration Act.
47 The first respondent's submissions, which I accept, noted that in its original form s 477 contained no power to extend the time for filing an application for judicial review when it was first introduced by the Migration Legislation Amendment (Judicial Review) Act 2001 (Cth). There was also an express prohibition on the Federal Court making any order which had the effect of extending time. When the (then) Federal Magistrates Court was given its judicial review jurisdiction, s 477 in these terms applied to its jurisdiction.
48 In November 2005 by the Migration Litigation Reform Act 2005 (Cth), s 477 was amended to include for the first time the criterion which appears in s 477(2). The Federal Magistrates Court could extend the (then) 28 day time limit by a further 56 days if a request was made within 84 days of actual notification of a decision and the Court was "satisfied that it is in the interests of the administration of justice to do so".
49 The final step was the amendments introduced by the Migration Legislation Amendment Act (No 1) 2009 (Cth) which extended the time for filing an application for judicial review of a migration decision to 35 days from the date the decision was made and replaced the existing s 477(2) with a provision substantially in the current form, requiring an applicant to specify why he or she considered it was "necessary in the interests of the administration of justice to make the order" extending time. The provision also required the Court to be "satisfied that it is necessary in the interests of the administration of justice" to extend time. This round of amendments followed, the second reading speech noted, the High Court's decision in Bodruddaza v Minister for Immigration and Multicultural Affairs [2007] HCA 14; 228 CLR 651, where the High Court had held the non-extendable time limit on applications for judicial review to the High Court as then contained in the Migration Act was unconstitutional.
50 The Minister submitted, and I accept that there is nothing in the extrinsic material which throws any particular light on the content of the phrase "in the interests of the administration of justice".
51 The applicant's submissions in response agreed with the Minister's outline of the legislative history. A large portion of the submissions consisted of a restatement and rearguing of the central aspects of the applicant's grounds of review. No leave was granted to the applicant to make submissions of that nature, and the Court has consistently emphasised submissions should not be made or filed in such circumstances: Carr v Finance Corporation of Australia Ltd (No 1) [1981] HCA 20; 147 CLR 246 at 257-258 per Mason J; Eastman v Director of Public Prosecutions (ACT) [2003] HCA 28; 214 CLR 318 at [27]-[31] per McHugh J; NT Power Generation Pty Ltd v Power and Water Authority [2004] HCA 48; 219 CLR 90 at [191]-[192] per McHugh A-CJ, Gummow, Callinan and Heydon JJ; Seafish Tasmania Pelagic Pty Ltd v Burke, Minister for Sustainability, Environment, Water, Population and Communities [2013] FCA 782 at [2]-[5] and Singh v Secretary, Department of Employment and Workplace Relations [2009] FCAFC 59 at [66]-[72]. Accordingly, I have disregarded paragraphs [4]-[10] of the applicant's submissions in response filed after the hearing.
52 The phrase "in the interests of the administration of justice" is deliberately broad, and as the relevant parts of Wilcox J's judgment in Hunter Valley Developments reveal, factors which can be described as forming part of the content of the interests of the administration of justice have always been factors courts have turned to in determining how to exercise such a discretion.
53 One of the early decisions to which Wilcox J refers is the decision of Fitzgerald J in Lucic v Nolan [1982] FCA 217; 45 ALR 411. Lucic concerned an application under the AD(JR) Act to review the decision of the Chief Officer of the Department of Social Security to charge the applicant with two instances of improper conduct, to sustain the charges and to recommend his dismissal from the public service. The judicial review application was well outside the time limit in s 11(3) of the AD(JR) Act. In the course of considering an application under s 11(1)(c) for an extension of time, Fitzgerald J said at 415-416:
In Riordan v Parole Board of the Australian Capital Territory (1981) 34 ALR 322; 3 ALD 144, Lockhart J at 327 (ALR); 148 (ALD) referred to the triad of Commonwealth legislation, of which the Administrative Decisions (Judicial Review) Act is one part, which provides machinery for review of administrative decisions and actions of Commonwealth Ministers, officials, and statutory bodies. It seems broadly accurate to say that there is a legislative intention that certain standards are to be observed in respect of such decisions and actions. However, that is not the only public interest to be served. Other matters of proper public concern which are readily identifiable as relevant to the review of administrative acts and decisions include the need for finality in disputes, the efficient use of public resources, the appropriate allocation and expenditure of public funds, and also where what is in question involves promotion and discipline in the Australian Public Service, the orderly administration of that vast body. Further, the impact of an act or decision is often not confined to a particular individual who is adversely affected and wishes to challenge it; a contest for promotion is an obvious example.
The legislation contains various mechanisms to allow these different policy considerations to be balanced. Thus, for example, one of the features of the Administrative Decisions (Judicial Review) Act is that it contains limitations with respect to the time for the commencement of proceedings. Where specific periods are fixed, they are quite short. That carries obvious implications. However, the time limitations are not absolute. In this, as in other matters arising under the Act, eg in respect of the relief which may be granted under s 16, the court is given a discretion. None the less, it must, in my opinion, be accepted that it has deliberately been made the prima facie rule that proceedings not commenced in time should not be entertained. In this respect, there is an obvious contrast between the terms of s 11(3) which provides a pre-emptive fixed period subject to a discretionary power of extension, and provisions like that of s 11(4) which do not fix any particular period but refer merely to what is in the court's opinion "reasonable".
54 I note also that much of Fitzgerald J's decision is occupied with a detailed examination of the evidence said by the applicant to explain the delay in seeking review. His Honour also considers the merits of the proposed application, but in shorter compass. His Honour founded his refusal to exercise the s 11 discretion on this aspect, finding (at 417) that:
There is ample evidence of the applicant's total failure to take any step, even go to his solicitors, within 28 days after any of the decisions which he now seeks to call in question.
55 Another early authority on which Wilcox J based his identification of relevant factors in Hunter Valley Developments was the decision of Neaves J in Chapman v Reilly (unreported, 9 December 1983). The applicant sought to review a decision of the Australian Federal Police to revoke an offer of employment made to him. He had commenced proceedings in respect of that decision in the ACT Supreme Court, which were dismissed. After those proceedings, he sought judicial review of the decision. Neaves J granted an extension of time, finding the conduct of the Supreme Court proceedings constituted an acceptable explanation for the delay. His Honour adverted to the merits of the application and expressed some doubts about the applicant's prospects of success, but nevertheless concluded it was "fair and equitable" to extend time. That is a phrase which has some resonance with the statutory term in s 477(2), the "interests of the administration of justice".
56 Of course, these authorities are simply examples of the large number of cases dealing with the exercise of the s 11 discretion. I refer to them to illustrate two points. First, considerations wider than the interests of the parties to judicial review litigation have always been important in the exercise of this kind of discretion. Second, the merits of the underlying judicial review application were not necessarily explored in the kind of detail seen in decisions such as the Federal Circuit Court decision in the present case. If anything, more emphasis was placed on the explanation for the delay. In my opinion that is a preferable approach. The grant of an extension of time places a litigant in the same position she or he would have been in had the application been brought within time: that is, in a position to develop and advance her or his case in the usual way to a final hearing, and thereafter, to access any available appellate processes. The judgment made by a court exercising the discretion is that it is appropriate, or fair and equitable, that a litigant should have the opportunity for which the legislative scheme provides: namely, a review of the lawfulness of the decision said to affect the litigant, conducted in accordance with judicial process and subject to considered judicial determination.
57 In BHP Billiton Ltd v Schultz [2004] HCA 61; 221 CLR 400, in the context of a cross-vesting application where the Court's discretion depended upon satisfaction that a cross-vesting order was "in the interests of justice", Gleeson CJ, McHugh and Heydon JJ said at [15]:
The interests of justice are not the same as the interests of one party, and there may be interests wider than those of either party to be considered. Even so, the interests of the respective parties, which might in some respects be common (as, for example, cost and efficiency), and in other respects conflicting, will arise for consideration. The justice referred to in s 5 is not disembodied, or divorced from practical reality.
58 In my opinion, the statutory precondition in s 477(2) of the "interests of the administration of justice" does not import any necessarily different set of factors to those which have been identified as relevant, in a permissive rather than a mandatory sense, under regimes such as that established by s 11 of the AD(JR) Act. The presence of that phrase in the context of the Migration Act may afford a basis for other factors to be taken into account - such as the nature of the visa decision sought to be reviewed. It is a phrase broad enough to encompass factors such as the fact that without a favourable exercise of discretion, a litigant is deprived of an appeal as of right to this Court from any substantive decision made by the Federal Circuit Court. Other factors, such as case management considerations in busy jurisdictions such as the Federal Circuit Court where the interests of other litigants in the efficient and orderly progress of their own proceedings may be affected by the extension of time, may also be comprehended. What factors are taken into account, and how they are weighed, must be the subject of individual consideration in each case.
59 While there may be other factors it is permissible to take into account (and which are not irrelevant in the Peko-Wallsend sense (Minister for Aboriginal Affairs v Peko-Wallsend Ltd [1986] HCA 40; 162 CLR 24)), the applicant has not pointed to any factors which must be taken into account and were not. Although as I have observed, the reasons of the Federal Circuit Court are somewhat unsatisfactory because they do not clearly set out and apply, in terms, the statutory basis for the discretion, I am not persuaded the Federal Circuit Court misunderstood or misconstrued the power it was called on to exercise in a way which results in it exceeding its jurisdiction, or failing to exercise its jurisdiction. None of the four bases articulated on behalf of the applicant in submissions as impugning the approach of the Federal Circuit Court is made out.
60 In reply submissions at the hearing, in answer to a question from the Court about what difference it was submitted it made that there was no reference to s 477(2) in the Court's reasons, counsel submitted the difference was that, had there been, the Court may have exercised greater caution in respect of what counsel described as the "low bar" for the consideration of the merits of grounds of review as part of the factors to be taken into account in deciding whether to extend time. Counsel submitted it appeared the Federal Circuit Court had decided the extension of time as if the case was fully argued, and this was an incorrect approach, especially given there is no right of appeal from the refusal to extend time: see s 476A(3)(a) of the Act.
61 This was not a matter identified in the amended application as a ground of review in relation to the Federal Circuit Court decision. It was not a matter on which the first respondent made any detailed submissions. It cannot be considered as a basis for granting any relief in this proceeding. However, lest these reasons be taken as an endorsement of the approach taken by the Federal Circuit Court, it is appropriate that I express my disquiet about the way in which the Federal Circuit Court dealt with the factor of the merits of the applicant's proposed grounds of review.
62 As I have observed previously (see MZZIV v Minister for Immigration and Border Protection [2013] FCA 1203 at [6] and [16]; SZTDC v Minister for Immigration and Border Protection [2014] FCA 1298 at [48]), it will seldom be in the interests of the administration of justice to grant leave where an appeal has little or no prospects of success, because of the considerable additional resources expended by the parties and the Court, and the inevitable impact on other litigants who have abided by time limits and are waiting for their appeals to be heard, in circumstances where an unsuccessful outcome can be confidently predicted at the leave stage. There is, however, in that approach a level of certainty about the unsuccessful outcome which is not borne of an exhaustive preliminary examination of the grounds as if they had been fully considered, developed and argued. Rather, the certainty or confidence a judge may have about an unsuccessful outcome is because the grounds on their face, and without the detailed argument and development which attends a full hearing, are plainly hopeless. That in my opinion is the kind of threshold intended by the presence of merit as a consideration in the discretion to extend time. If a judge travels beyond an examination of the grounds at what should be a reasonably impressionistic level (see Mladenov v Secretary, Department of Families, Housing, Community Services and Indigenous Affairs [2014] FCA 12 at [25]; Jackamarra v Krakouer [1998] HCA 27; 195 CLR 516 at [7]-[9]) into a fuller consideration of the arguments for and against each ground of review, then in my respectful opinion that is not a function appropriate to a discretion such as that contained in s 477(2).
63 The correct approach may be expressed by the use of language such as whether a ground is "arguable", "reasonably arguable", "sufficiently arguable" or has "reasonable prospects of success" (see SZTES [2015] FCA 719 at [48]; SZRIQ [2013] FCA 1284; 139 ALD 252 at [46]-[48]). Whichever description is chosen, the approach taken under s 477(2) should not be transformed into a de facto full hearing, especially where the outcome is not subject to any appeal as of right. The subject matter of s 477(2) is whether time for bringing a judicial review application, which is to be heard and determined in the ordinary course of the processes of the Federal Circuit Court, should be extended. The subject matter is not whether the applicant will ultimately be successful in impugning the merits review decision.
64 I agree, respectfully, with the observations of Wigney J in SZTES in two particular respects. I note an appeal from his Honour's orders was dismissed: SZTES v Minister for Immigration and Border Protection [2015] FCAFC 158.
65 First at [82] to [85], Wigney J sets out the need for careful distinction in an assessment of the prospects of grounds of review between grounds that are hopeless and destined to fail, and those which are properly described as weak. As his Honour says at [84], in the latter case it will seldom be appropriate to refuse to extend time. Certainly, in my opinion it is inappropriate to require an applicant, in effect, to establish that her or his grounds of review will succeed. The point was made more than 20 years ago by French J in Seiler [1994] FCA 878; 48 FCR 83 at 98:
In deciding to allow time to be extended, I have not taken into account the merits of the application. It was fully argued on the merits in any event. In the circumstances, it would be artificial to import into the consideration of the extension of time some assessment of the likelihood of the success of the application. The question of the merits of a substantive application has to be approached with some caution in any consideration of a claimed extension of time. If an application has no reasonable prospect of success, then the decision to refuse an extension on that basis reduces to a decision to strike it out. To say a substantive application has a reasonable prospect of success is to say no more than that there is a finite non-trivial probability that it will succeed. The statement of its merits is then stochastic. It is based upon necessarily incomplete evidence or consideration of the case. It is difficult to imagine any case which appeared weak but not hopeless in which it would be proper to refuse an extension on that account. On the other hand, the stronger the case appears to be, the higher may be the probability that an injustice will be done if an extension is refused. So a strong case may be a positive factor in favour of the grant of extension, but an apparently weak case cannot be treated as a factor weighing against it. In the event, and for the reasons outlined, I propose to grant the necessary extension of time.
(Emphasis added.)
66 Second at [102] Wigney J refers to the Federal Circuit Court practice of listing both an application for extension of time and the final hearing at the same time, noting that practice may encourage an undue focus on determination of the merits of the proposed grounds of review raised by an application for an extension of time and resulting in an artificial approach to the extension of time application. I agree with those observations. In my opinion, unless the grounds are hopeless in the sense I have discussed above so that simply on an impressionistic reading and consideration without full argument a judge can be confident they must fail, the better approach if the Court is otherwise satisfied it is in the interests of the administration of justice to grant an extension of time would be to do so and then to consider and determine the grounds of review with a full consideration of them. There is no reason that cannot still be done in one hearing and in my opinion it reflects a more appropriate exercise of the supervisory jurisdiction of the Federal Circuit Court.
67 In the present case, the Federal Circuit Court's reasons could be read as if the Federal Circuit Court finally determined the grounds of review. That inference arises because of the concluding expressions used in the reasons after each group of grounds of review and which I have set out at [15]-[17] above, and because of the extent of the consideration given to each ground.
68 Whether the adoption of such an approach could properly be characterised as exceeding the Federal Circuit Court's jurisdiction is another and difficult question. In Kirk [2010] HCA 1; 239 CLR 531 (at [74]-[75]), the plurality characterised misconstruction of a statute which leads a court to misapprehend the limits of its powers as an error which was jurisdictional in nature. If, for example, her Honour in the present case could be said to have taken the approach that it would only be in "the interests of the administration of justice" to extend time if persuaded a ground of review would succeed, then this would in my opinion reflect such a fundamental misunderstanding of the discretion in s 477(2) as to represent a misapprehension of the nature of the power there conferred.
69 In a proceeding where this matter was not a ground on which relief was sought and was not fully addressed in submissions, it is not appropriate to determine the issue. In any event, I am not persuaded her Honour's reasons, fairly read, so clearly take the kind of erroneous approach to which I have referred.
70 However, the line is a fine one, and in my respectful opinion both in respect of s 477(2), and in respect of the corresponding power reposed in this Court under s 477A(2), the need for a restrained approach to the assessment of the merits of grounds of review as one of a relatively unconfined range of factors to be considered in exercising this discretion, as outlined by French J in Seiler, should always be recalled.