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[2008] VCAT 1724
Victorian Civil and Administrative Tribunal
2008-08-18
Original judgment source is linked above.
"... a peculiar type of relitigation would arise. There would be relitigation of a controversy (already determined) as a result of what had happened during, or in preparation for, the hearing that had been designed to quell that controversy.
Moreover, it would be relitigation of a skewed and limited kind. No argument was advanced to this court urging the abolition of judicial or witness immunity. If those immunities remain it follows that the relitigation could not and would not examine the contribution of a judge or witness to the events complained of, only the contribution of the advocate. An exception to rule against reopening of controversies would exist, but one of an inefficient and anomalous kind."[33]
"... the privilege which surrounds the evidence actually given in a Court of justice necessarily involves the same privilege in the case of making a statement to a solicitor and other persons who are engaged in the conduct of proceedings in Courts of justice is narrated to them - that is to the solicitor ... If it were otherwise ... the object for which the privilege exists is gone, because then no witness could be called; no one would know whether what he was going to say was relevant to the question in debate between the parties. A witness would only have to say, 'I shall not tell you anything; I may have an action brought against me tomorrow if I do; therefore I shall not give you any information at all'. It is very obvious that the public policy which renders the protection of witnesses necessary for the administration of justice must as a necessary consequence involve that which is a step towards and is part of the administration of justice - namely, the preliminary examination of witnesses to find out what they can prove."[34]
"Once it is accepted that the immunity exists ... and that it extends to the conduct of litigation, then the simple question is whether the step of ending current proceedings by a compromise rather than by obtaining the judgment in due course should properly be regarded as part and parcel of the work of counsel in carrying forward the proceedings to a conclusion. I am in no doubt that this must be so."[36]
"Whilst is decisive is the nature and purpose of the work in relation to the conduct and management of the litigation ... pre trial work is sufficiently connected with the conduct and management of the cause if it involves a preliminary decision affecting the way in which the cause is to be conducted when it comes to a hearing. It follows, a fortiori, that the advice given by a barrister as to the settlement of a cause during the course of a trial and the settling of terms of a compromise must attract immunity. It is intimately and immediately connected with, and involves the termination of the litigation. In such a case it is not simply that there is a temporal connection between that work and the actual trial itself. The giving of advice as to the compromise of proceedings, involving as it does the question of their continuation of termination, is an inherent feature of the conduct of the cause by counsel. And when a settlement is reached in the course of the trial itself, the compromise must surely be influenced by the barrister's assessment of the way the trial is going; how the evidence has come out; what admissions have been made; any indication the trial judge has given of his thinking; and so on. In such a case it seems to me patently unrealistic to say that the compromising of the cause is not part and parcel of the management of the trial. Advice on settlement of a cause, during trial, is as much an incident of the conduct of the trial as advice on and decisions as to the calling of witnesses and other matters, which, although not necessarily given and made in the courtroom, cannot in a practical way be severed from and dissociated from the conduct of the cause by the barrister in the presence of the judge."[37]
"A rule of law which is said to be based upon considerations of public policy should not depend for its practical operation upon chance."[41]
"[31] In Giannarelli, Mason CJ said[43] that "the barrister's immunity if it is to be sustained, must rest on considerations of public policy". His Honour explained[44] that the term "immunity" was used in a sense which assumed that rights and duties might otherwise exist at common law, but the immunity is sustained on considerations of public policy and "the injury to the public interest that would arise in the absence of immunity".[45] Of the various factors advanced to justify the immunity, "the adverse consequences for the administration of justice which would flow from the re-litigation in collateral proceedings for negligence of issues determined in the principal proceedings" (emphasis added)[46] was held to be determinative.[47] The significance of the reference to the administration of justice is of fundamental importance to the proper understanding of the immunity and its foundation.
[32] To adopt the language found in the cases considering Ch III of the Constitution, the central concern of the exercise of judicial power is the quelling of controversies. Judicial power is exercised as an element of the government of society and its aims are wider than, and more important than, the concerns of the particular parties to the controversy in question, be they private persons, corporations, polities, or the community as personified in the Crown or represented by a Director of Public Prosecutions. No doubt the immediate parties to a controversy are very interested in the way in which it is resolved. But the community at large has a vital interest in the final quelling of that controversy. And that is why reference to the "judicial branch of government" is more than a mere collocation of words designed to instil respect for the judiciary. It reflects a fundamental observation about the way in which this society is governed.
[33] As s 71 of the Constitution says, what is "vested in a Federal Supreme Court, to be called the High Court of Australia, and in such other federal courts as the Parliament creates, and in such other courts as it invests with federal jurisdiction" is the judicial power of the Commonwealth, that is, the judicial power of the national polity. No matter whether the judicial branch of government is separated from the other branches of government (as it is and must be at the federal level[48] but, at least generally, is not at the state level[49]) it is, in Quick and Garran's words,[50] "the third great department of government".[51]"
"....the central justification for the advocate's immunity is the principle that controversies, once resolved, are not be reopened except in a few narrowly defined circumstances"[52]
"The 'unique and essential function' of the judicial branch is the quelling of controversies by the ascertainment of the facts and the application of the law. Once a controversy has been quelled, it is not to be relitigated. Yet relitigation of the controversy would be an inevitable and essential step in demonstrating that a advocates' negligence in the conduct of litigation had caused damage to the client...."[53] (emphasis added)
"[166] There is, of course, a greater public interest in maintaining confidence in the administration of criminal rather than civil justice. So, it is possible to sue a practitioner for the negligent settlement of proceedings or for the negligent loss or abandonment of a cause of action. Such claims lead to the litigation of a primary claim even if that claim can no longer be pursued. These results flow even though there is a public interest in the finality achieved through the statutes of limitations and the promotion of out-of-court dispute settlement. But where a trial has taken place, as the judgment of Gleeson CJ, Gummow, Hayne and Heydon JJ demonstrates, public confidence in the administration of justice is likely to be impaired by the re-litigation in a negligence action of issues already judicially determined."
"In any event, there is a sense in which allowing the clients' first claim to proceed against the solicitors would undermine the finality of the decision in the Federal Court case."
"I raised with counsel the question whether D'Orta had restricted the immunity to situations in which the proposed attack on the legal practitioner would bring into question the correctness of a previous court decision. Peter Cane has argued that just such an implication should be seen in D'Orta, because the joint majority placed almost the entire weight of justifying the immunity on the "finality argument", ie. the proposition that allowing clients to sue advocates would derogate from and undermine the principle of the finality of court decisions.
Counsel for the clients did not embrace this suggestion. He recognised, as had Peter Cane himself, that the actual outcome in D'Orta was not consonant with any such restriction. To have allowed Mr D'orta-Ekenaike to sue the legal practitioners who advised him to plead guilty at the committal before the first trial would not have undermined the jury's verdict in the second, ultimate trial. Similarly the supposed restriction would sit ill with the outcome in Giannarelli, the judgment in which was applied in D'Orta. Further, as McHugh J noted in D'Orta, the immunity has been applied in relation to negligently advising a settlement. In Chamberlain v Ormsby (trading as Ormsby Flower), a case decided by the New South Wales Court of Appeal after D'Orta, it was held, obiter, that the immunity applied in relation to advice given by a barrister to an injured worker to accept a settlement of his case before the Compensation Court.
In any event, there is a sense in which allowing the clients' first claim to proceed against the solicitors would undermine the finality of the decision in the Federal Court case."[54]
"The issue is whether the relevant connection with the conduct of the litigation exists, not the form of the negligence. An integral part of the advocate's role is the giving of advice on the basis of which the client will give instructions that direct the course of the proceedings. The advice is critical to and often determinative of the client's decision."[56]
"It is difficult to imagine a stronger case than the present where the advice given by the barrister led to the appellant's decision as to the conduct of his case before the Compensation Court or which was more intimately connected with the course of that case including its settlement."[57]
"We do not, with respect, consider that the passage from the judgement of McHugh J to which Tobias JA referred supports that conclusion. McHugh J had earlier held [152] that a decision about a plea of guilty cannot be described as other than intimately connected with the conduct of a criminal cause; it is a decision made preliminary to the hearing of the charge which affects the conduct of the accused's matter before the court. In that connection, it is significant that his Honour's statement was made in circumstances where the plea of guilty would not avoid the matter going to a hearing, but would affect the conduct of the hearing. The reference by McHugh J to 'the giving of advice on the basis of which the client will give instructions that direct the course of the proceedings' must be read in that light and also in the context of the conclusion his Honour reached in relation to the extent of the immunity, namely, that it should extend to any work which, if the subject of a claim in negligence, would require the impugning of a final decision of a court or the relitigation of matters already determined by a court.
We do not, therefore, with respect, consider that what was said by McHugh J in D'Orta-Ekenaike provides support for the proposition that advice in relation to settlement before trail falls within the immunity."[59]
"The position when a claim against an advocate is framed, not in negligence, but as a breach of the Fair Trading Act of a State or of the Trade Practices Act 1974 (Cth), does not appear to have been squarely considered in Australia. In Boland v Yates Property Corporation Pty Ltd [1999] HCA 64, the High Court concluded that it was unnecessary to consider the immunity issue in the context of a claim under the Trade Practices Act. In Gray v Morris [2004] QCA 5; [2004] 2 Qd R 118 (53), the question again did not have to be determined but was regarded as not settled.
The questions of how the public policy considerations which ground the immunity are to be reconciled with the operation of s.10 of the Fair Trading Act, and the scope of any immunity which limits the operation of the Fair Trading Act as it applies to the provision of legal services, therefore still await determination.
The application of the immunity to the Fair Trading Act is not, in our view, a matter appropriately to be determined on a pleading summons. It involves a novel question of law that is properly left to be determined at trial. It is, moreover, a matter which, if it arises on the facts as fond, is properly to be determined in the light of the findings as the precise nature of any misleading and deceptive conduct engaged in by the respondent."[62]
"....are not restricted to dealings or communications which can properly be described as being at arm's length in the sense that they are within open markets or between strangers or have a dominant objective of profit marking. They are apt to include commercial or business dealings in finance between a company and its members which are not within the mainstream of ordinary commercial activities and which, while being commercial in character, are marked by a degree of altruism which is not compatible with a dominant objective of profit making".[64]
Where the conduct of a profession involves the provision of services for reward, then in my opinion, even allowing for widely differing approaches to definition, there is no conceivable attribute of that aspect of professional activity which will take it outside the class of conduct falling within the description 'trade or commerce'. This conclusion flows from both the judicial exposition and the particular statutory context of that term"[69]
"The characterisation of particular conduct must always be a question of fact and degree. It is not possible or desirable to judicially define the concept of 'conduct in trade or commerce' by prescriptive criteria."[71]
"In the case of the practice of the law it is not appropriate to describe conduct in the area of litigation as conduct in trade or commerce."
"It is also doubtful that the expression of professional advice (which lies at the core of the practice of a profession) constitutes trade and commerce."
[1] Fancourt v Mercantile Credits Pty Ltd [1983] HCA 25; (1983) 154 CLR 87 at 99; Lay v Alliswell Pty Ltd [2001] VSC 385 at [14]
[2] State Electricity Commission of Victoria v Rabel [1998] IVR 102; Forrester v Aims Corporation [204] VSC 506 (8 December 2004)
[6] Op cit at pp20-21, paras [45] - [46]
[7] (1988) 165 CLR 543 at 560
[8] [2005] HCA 12; (2005) 223 CLR 1 at 31 [86]
[11] Wilson v Rigg [2005] NSWSC 1351 at [64] per Rothman J
[12] [2000] 3 AII ER 673 at 707 per Lord Hoffman
[13] (1988) 165 CLR 543 at 559-560; cited with approval in D'Orta-Ekenaike
[14] [2005] HCA 12; (2005) 223 CLR 1 at 52
[15] Rees v Sinclair [1974] INZLR 180 at 187
[16] Keefe v Markes (1989) 16 NSWLR 713 at 718
[17] Munnings v Australian Government Solicitor [No.2] [1994] HCA 65; (1994) 118 ALR 385 at 390 per Dawson J
[18] Giannarelli v Wraith (1988) 165 CLR 543
[19] Biggar v McLeod [1978] 2 NZLR 9
[20] (1989) 16 NSWLR 713 at 718
[21] See generally (1988) 165 CLR 543 at 553 per Mason CJ
[22] [2005] HCA 12; (2005) 223 CLR 1 at 31-31
[23] Saif Ali v Sydney Mitchell & Co. [1980] AC 198 at 216, 224 and 232
[24] MacRae v Stevens [1996] Aust Tort Reports 81-405 (63.679)
[25] Donellan v Watson (1990) 21 NSWLR 335
[26] Heydon v NRMA Ltd [2000] NSWCA 374; (2000) 51 NSWLR 1
[33] [2005] HCA 12; (2005) 214 ALR 92 at 103, para [45]
[34] [1905] UKHL 1; [1905] AC 480 at 487; approved in Gibbons v Duffell [1932] HCA 26; (1932) 47 CLR 520 at 525 per Gavan Duffy CJ and Rich and Dixon JJ
[39] Alpine Holdings Pty Ltd v Funawer [2008] WA SCA 85 (30 April 2008) at [25]
[40] [2005] 3 NZLR 291 at [125]
[41] (1989) 16 NSWLR 713 at 719
[42] Zaparenkov v Perpetual Trustees Victoria Ltd [2006] VCAT 2147 at [11] per Justice Morris P
[43] (1988) 165 CLR 543 at 555; 81 ALR 417 at 421
[44] (1988) 165 CLR 543 at 554-5; 81 ALR 417 at 420-1
[45] Gibbons v Duffell [1932] HCA 26; (1932) 47 CLR 520 at 529 per Starke J
[46] (1988) 165 CLR 543 at 555; 81 ALR 417 at 421
[47] See also (1988) 165 CLR 543 at 574; 81 ALR 417 at 435 per Wilson J, CLR 579; ALR 438-9 per Brennan J, CLR 595-6; ALR 450-2 per Dawson J.
[48] R v Kirby; Ex parte Boilermakers' Society of Australia [1956] HCA 10; (1956) 94 CLR 254 at 267-8 per Dixon CJ, McTiernan, Fullagar and Kitto JJ.
[49] Kable v DPP (NSW) [1996] HCA 24; (1996) 189 CLR 51; 138 ALR 577
[50] Quick and Garran, The Annotated Constitution of the Australian Commonwealth 1901, p 719
[54] [2007] VSC 528 at [34]- [36]
[58] [2008] WASCA 85 (30 April 2008)
[62] [2008] WASCA 85 at [96]- [98]
[63] Re Ku-Ring-Gai Co-operative Building Society (No.12) Ltd [1978] FCA 50; (1978) 36 FLR 134 per Deane J, with whom Brennan J agreed.
[65] [1990] HCA 17; (1990) 169 CLR 594 at 604 per Mason CJ and Deane J, Dawson and Gaudron JJ
[66] Sigma Constructions (Vic) Pty Ltd v Morwell Investments Ptyy Ltd [2004] VSCA 242 (9 December 2004) at paragraph 22 per Batt JA with whom Vincent and Nettle JJA agreed.
Naylor
Oakley Thompson & Co Pty Ltd & Ors
(1983) 154 CLR 87
(2005) 223 CLR 1
(1988) 165 CLR 543
(1989) 16 NSWLR 713
(1994) 118 ALR 385
(1990) 21 NSWLR 335
(2000) 51 NSWLR 1
(2005) 214 ALR 92
(1932) 47 CLR 520
(1956) 94 CLR 254
(1996) 189 CLR 51
(1978) 36 FLR 134
(1990) 169 CLR 594
(1987) 14 FCR 215