MISLEADING OR DECEPTIVE CONDUCT
98 Mr Nyoni relied upon a contravention by each respondent of s 18 of the ACL in order to invoke the jurisdiction of this Court.
99 Section 18(1) of the ACL provides:
A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or likely to mislead or deceive.
100 Mr Nyoni alleged that in publishing the first condition in the national register and on AHPRA's website each of the respondents engaged in conduct that was misleading or deceptive or likely to mislead or deceive in contravention of s 18 of the ACL.
101 This claim by Mr Nyoni gave rise to a number of stated issues, namely, whether:
(a) the ACL as a law of the Commonwealth bound the respondents;
(b) each of the respondents is a trading corporation;
(c) the extended application of the ACL by the operation of s 6(3) of the CCA applied to the impugned conduct;
(d) the conduct engaged in by the respondents in publishing the first condition was conduct in trade or commerce;
(e) the defence in s 19 of the ACL, being "the information provider" defence, applied to AHPRA in respect of the publication;
(f) by invoking this cause of action, Mr Nyoni engaged in an abuse of process, in light of the fact that he had a right of appeal to the State Administrative Tribunal in respect of the imposition of the first condition;
(g) by the publication of the first condition, one or both of the respondents made one or more of the following representations:
(i) Mr Nyoni had self-administered Sch 8 drugs without a prescription; or
(ii) Mr Nyoni had a propensity to self-administer Sch 8 drugs without a prescription; or
(iii) Mr Nyoni had an addiction to Sch 8 drugs; or
(iv) Mr Nyoni was unfit to hold a licence to dispense Sch 8 drugs because of one or more of the foregoing reasons.
(h) if so, such representation was false or misleading or deceptive or likely to mislead or deceive;
(i) if so, Mr Nyoni suffered or is likely to suffer loss or damage by reason of the contravening conduct.
102 In light of the conclusion to which I have come, it is convenient that I deal first with the question of whether the conduct by each of the respondents in recording the conditions upon the national register, and publishing the national register on the AHPRA website was conduct in trade or commerce.
103 In my view, Mr Nyoni has failed to establish that the publication of the first condition by the Board and AHPRA on the national register and on AHPRA's website was conduct "in trade or commerce" within the meaning of s 18 of the ACL.
104 In my view, the publication of the first condition by each of the two statutory bodies was conduct engaged in by a regulatory authority pursuant to a mandatory statutory duty. That conduct does not bear the characteristics of conduct "in trade or commerce".
105 In Concrete Constructions (NSW) Pty Ltd v Nelson (1990) 169 CLR 594 (Concrete Constructions) at 602-603, Mason CJ, Deane, Dawson and Gaudron JJ observed:
The phrase "in trade or commerce" in s 52 has a restrictive operation. It qualifies the prohibition against engaging in conduct of the specified kind. As a matter of language, a prohibition against engaging in conduct "in trade or commerce" can be construed as encompassing conduct in the course of the myriad of activities which are not, of their nature, of a trading or commercial character but which are undertaken in the course of, or as incidental to, the carrying on of an overall trading or commercial business. If the words "in trade or commerce" in s 52 are construed in that sense, the provisions of the section would extend, for example, to a case where the misleading or deceptive conduct was a failure by a driver to give the correct handsignal when driving a truck in the course of a corporation's haulage business. It would also extend to a case, such as the present, where the alleged misleading or deceptive conduct consisted of the giving of inaccurate information by one employee to another in the course of carrying on the building activities of a commercial builder. Alternatively, the reference to conduct "in trade or commerce" in s 52 can be construed as referring only to conduct which is itself an aspect or element of activities or transactions which, of their nature, bear a trading or commercial character. So construed, to borrow and adapt words used by Dixon J in a different context in Bank of NSW v The Commonwealth, the words "in trade or commerce" refer to "the central conception" of trade or commerce and not to the "immense field of activities" in which corporations may engage in the course of, or for the purposes of, carrying on some overall trading or commercial business.
(Footnotes omitted.)
106 Further, at 604, their Honours went on to explain why they preferred the alternative construction of the words "in trade or commerce" as follows:
Put differently, the section was not intended to impose, by a side-wind, an overlay of Commonwealth law upon every field of legislative control into which a corporation might stray for the purposes of, or in connection with, carrying on its trading or commercial activities. What the section is concerned with is the conduct of a corporation towards persons, be they consumers or not, with whom it (or those whose interests it represents or is seeking to promote) has or may have dealings in the course of those activities or transactions which, of their nature, bear a trading or commercial character.
107 In the case of Johnstone v Victorian Lawyers RPA Ltd (2003) 132 FCR 411 (Johnstone), the applicant, Mr Johnstone, a solicitor, brought a claim against the respondent which was a recognised professional association accredited under the Legal Practice Act 1996 (Vic). The respondent had statutory duties to investigate complaints against legal practitioners. Another solicitor, Mr Borden, made a complaint to the Law Institute of Victoria against Mr Johnstone alleging that Mr Johnstone had acted unprofessionally in sending Mr Borden a letter which contained an improper threat.
108 A solicitor acting for the respondent wrote a letter to Mr Johnstone in which she advised that pursuant to the Legal Practice Act the respondent was under a statutory duty to investigate Mr Johnstone's conduct in relation to the complaint made by Mr Borden.
109 Mr Johnstone commenced an application in this Court alleging that in sending the letter the respondent had engaged in unconscionable conduct in trade or commerce contrary to s 51AA of the now repealed Trade Practices Act 1974 (Cth).
110 Sundberg J dismissed the application on the basis that the conduct of the respondent statutory body in writing and sending the letter pursuant to its duty under the Legal Practice Act was not conduct in trade or commerce.
111 After referring to the two passages from Concrete Constructions which are referred to above, Sundberg J went on to observe at [14]:
In my view it is clear beyond serious argument that the despatch by the respondent of the letter of 11 September was not conduct in trade or commerce. Once the respondent had decided not to dismiss the complaint under s 141 of the Legal Practice Act, it came under a mandatory obligation, imposed by s 146, to investigate the complaint. In sending the letter it was discharging that obligation. The letter was part of the respondent's function of investigating complaints against practitioners and firms. The letter does not have a commercial or trading character. It is the letter of a body, which may be assumed to be a "corporation" as defined in s 4 of the Trade Practices Act, exercising a regulatory function imposed on it by statute in relation to the professional conduct of legal practitioners.
112 In the case of Markan v Bar Association of Queensland [2013] QSC 146 (Markan), the plaintiff, Mr Markan brought an action against the Bar Association of Queensland which was a body with statutory powers to investigate complaints of unprofessional conduct by barristers in Queensland.
113 Mr Markan had made complaints about the conduct of three Queensland barristers.
114 The Bar Association of Queensland having investigated Mr Markan's complaints against the Queensland barristers decided to dismiss the complaints. Mr Markan then commenced his action against the Bar Association alleging misleading or deceptive conduct and unconscionable conduct under the ACL. The claims made required Mr Markan to demonstrate that the conduct of the Bar Association was conduct in trade or commerce.
115 Atkinson J followed Johnstone and held that the conduct of the Bar Association in carrying out its statutory functions was not conduct in trade or commerce. At [58], Atkinson J observed:
The investigation of a complaint against a legal practitioner pursuant to a statutory duty to do so cannot be said to be activity engaged in "in trade or commerce" so as to attract the operation of the ACL.
116 In my view, the decisions in Johnstone and Markan are applicable to the circumstances of this case. Thus, in my view, in determining to place conditions upon Mr Nyoni's registration as a pharmacist and in publishing those conditions, each of the respondents was acting pursuant to a statutory duty, and, in so doing, did not act in trade or commerce.
117 It follows that Mr Nyoni has failed to establish an essential element of his claim that each of AHPRA and the Board contravened s 18 of the ACL and, accordingly, Mr Nyoni's claim under that statutory provision is dismissed.
118 It is, therefore, unnecessary to consider the other elements of this claim. However, in the event that the matter goes further, I make the following findings.
119 First, in my view, Mr Nyoni has established that an ordinary or reasonable consumer reading the first condition as published would have concluded that in publishing the first condition each of AHPRA and the Board had made the representations alleged by Mr Nyoni (see [101(g)] above).
120 My reasons for coming to that view are essentially the same as the reasons referred to in [181]-[184] below dealing with the imputations arising from the first condition in respect of the defamation claim.
121 Secondly, in my view, Mr Nyoni has failed to prove that he has suffered any actual loss by reason of the misleading or deceptive conduct comprising the publication of the first condition.
122 This conclusion is based on the reasons which I set out below.
123 Mr Nyoni contended that he has suffered millions of dollars in loss by reason of the contravening conduct of AHPRA and the Board. Mr Nyoni claimed that he had suffered the loss of future earnings from the conduct of a pharmacy business and also that he had lost earnings from being denied employment.
124 In respect of the claim for loss of future earnings from the conduct of a pharmacy business, Mr Nyoni in his affidavit of 7 August 2017 adduced evidence of the past financial performance of the Kellerberrin Pharmacy and the earnings which he and his wife had derived from the conduct of that business. More specifically, Mr Nyoni adduced evidence of his income tax returns and the distributions which his wife had received from the Nyoni Family Trust which appeared to be a service trust for the Kellerberrin Pharmacy business. In his affidavit of 7 August 2017, Mr Nyoni refers to these losses as being attributable to the imposition of "the conditions".
125 There are a number of problems in relation to Mr Nyoni's claim for loss of future earnings from the conduct of a pharmacy business.
126 Pursuant to s 236 of the ACL, a party is entitled to recover the amount of loss or damage suffered because of misleading or deceptive conduct in contravention of s 18 of the ACL. In other words, there must be a causative link between the misleading or deceptive conduct and the loss or damage which the party claims to have suffered.
127 In this case, the misleading or deceptive conduct alleged does not comprise the imposition and publication of all of the conditions. The misleading or deceptive conduct alleged is the imposition and publication of the first of the conditions.
128 The disability which Mr Nyoni incurred in April 2013 in respect of his practice as a pharmacist was the revocation of his authority under s 23(2) of the Poisons Act to manufacture, possess, sell or supply Sch 8 drugs by the delegate of the chief executive officer of the Department of Health. This revocation was consequent upon his conviction in the Magistrates Court of offences under the Poisons Act and the Poisons Regulations in January 2013. Mr Nyoni was unsuccessful in his attempts in the Supreme Court to set aside the convictions on appeal. Mr Nyoni was also unsuccessful in his attempts to set aside the revocation of his s 23 authority by the delegate of the chief executive officer of the Department of Health. The imposition of the second condition and subsequent conditions by the Board on 26 November 2013 were consequent upon, and reflected the revocation of Mr Nyoni's s 23 authority.
129 As mentioned, in his affidavit evidence Mr Nyoni has deposed that it is the imposition of the conditions which has caused him the loss of future earnings from the conduct of a pharmacy business. Mr Nyoni did not seek to distinguish between the causative effect of the imposition and publication of the first condition, which comprises the impugned conduct, and the imposition and publication of the remainder of the conditions which reflect the revocation of Mr Nyoni's s 23 authority by the delegate of the chief executive officer of the Department of Health.
130 Another obstacle to Mr Nyoni proving a loss of future earnings based on the ownership and operation of the Kellerberrin Pharmacy business, is that Mr Nyoni entered into a contract for the sale of the Kellerberrin Pharmacy business about eight months prior to the imposition by the Board of the conditions. Therefore, the impugned conduct could not possibly have had a causative effect upon Mr Nyoni's decision to sell the Kellerberrin Pharmacy business.
131 I observe in passing that Mr Nyoni continued to operate the Kellerberrin Pharmacy business for about four months after the publication of the conditions which had been imposed by the Board, but Mr Nyoni did not in his evidence prove any specific loss during that four month period said to be attributable to the publication of the first condition, or at all.
132 Further, Mr Nyoni did not lead any evidence upon which it was possible to conclude that by reason of the impugned conduct, he was deprived of the opportunity of purchasing another pharmacy business, after the sale of the Kellerberrin Pharmacy business, which would have yielded him the future earnings which he claimed. Mr Nyoni did not adduce evidence that he was willing and able to purchase such a pharmacy but was deprived of the opportunity of doing so because of the impugned conduct.
133 In further support of this claim for damages, Mr Nyoni adduced evidence of his attempts to secure further employment after the sale of the Kellerberrin Pharmacy business. To that end, Mr Nyoni annexed to his affidavit of 20 April 2015 correspondence with the recruitment agencies in question.
134 The materials which Mr Nyoni has annexed to his affidavit were presented in a haphazard way. So it is not possible to describe comprehensively Mr Nyoni's attempts to secure employment and the outcome of each application made by Mr Nyoni. Nevertheless, it is apparent that from about October 2014 to April 2015 when his affidavit was sworn, Mr Nyoni had submitted numerous online applications to a variety of recruitment agencies in relation to both full-time and part-time, regional and metropolitan, pharmacist and pharmaceutical sales representative roles. I will, based on the materials adduced into evidence by Mr Nyoni, attempt to describe the applications for employment made by Mr Nyoni and the outcomes.
135 There is email correspondence which shows that on 14 and 15 October 2014, Mr Nyoni applied through the SEEK online jobs board for four pharmaceutical sales representative jobs, in relation to general practitioners, based in Perth and New South Wales as advertised by Bayer Pharmaceuticals, and the recruitment agencies Frontline Health, Paras & Partners and EvansPetersen Healthcare.
136 On Wednesday, 15 October 2014, Mr Nyoni received an email from Ms Kristie Ainsworth, a consultant at Frontline Health, stating that his application had been unsuccessful.
137 On 21 October 2014, Mr Nyoni applied for a job as a general practitioner pharmaceutical sales representative in the north of Western Australia through Randstad recruitment agency. The job was for a pharmaceutical sales representative to manage a portfolio of pharmaceutical products for an unidentified pharmaceutical company, in order to grow sales and market share in that company's products amongst general practitioners.
138 Mr Nyoni was invited to an interview with Mr Nicolas Aristizabal via Skype. The interview was due to take place on Thursday, 23 October 2014. There is no evidence as to whether the interview ever took place or of the outcome of the interview, but it can be inferred that no job offer eventuated from that interview.
139 Prior to Monday, 27 October 2014, Mr Nyoni applied to the pharmaceutical company GSK for the position of general practitioner sales representative in Sydney south and Coffs Harbour.
140 On Monday, 27 October 2014, Mr Nyoni received an automated email from GSK recruitment advising him that his application had been unsuccessful.
141 In October 2014, Mr Nyoni applied for the position of "Pharmacy Territory Manager" advertised by Michael Page recruitment agency (Michael Page).
142 On Wednesday, 29 October 2014, a representative of Michael Page advised Mr Nyoni that the company would not be able to proceed any further with Mr Nyoni's application because after Mr Nyoni's application was received, their client had decided "to postpone the recruitment of the role".
143 On 31 October 2014, Mr Nyoni was offered a position with Chemist Warehouse in Albury, New South Wales. The offer email of 31 October 2014 from Ms Constantinou of Chemist Warehouse requested Mr Nyoni to provide personal information, including his AHPRA registration number. In response to that email, Mr Nyoni stated that he was in the process of having a condition removed from his registration, and in response to a request for further information by Ms Constantinou, Mr Nyoni replied that the condition to be removed was the revocation of his Sch 8 licence.
144 In early November 2014, Mr Nyoni applied through the SEEK online jobs board for four more pharmaceutical sales representative jobs, including two general practitioner sales roles and two hospital-based sales roles in relation to specialist medical practitioners, two of which were advertised by the recruitment agency Pettit Pharma & Device Search (Pettit), and one each by the recruitment agencies PharMED Hahn and EvansPetersen Healthcare. Automated replies from PharMED Hahn and Pettit stated that only short-listed candidates would be contacted. It may be inferred that these applications too were unsuccessful.
145 On 10 November 2014, Mr Nyoni was advised that an application he had made for the role of pharmacist, within the Jadin Chemist Group, had been unsuccessful.
146 In January 2015, Mr Nyoni applied for the position of "pharmacy - sales representative" through Frontline Health.
147 On Wednesday, 21 January 2015, Mr Nyoni received an email from Ms Connie Fitzpatrick of Frontline Health advising him that his application had been unsuccessful.
148 There is also evidence that on 8 April 2015, Mr Nyoni applied through Adecco Australia, a recruitment agency, for a position as a pharmacist.
149 On Wednesday, 15 April 2015, Mr Nyoni was advised by Mr Paul Fiore of Adecco Australia that his application had been unsuccessful. The email stated:
Unfortunately, the role has be [sic] cancelled. We wish you well in your job search and hope to hear from you again for any future opportunities we have listed that interest you.
150 On 9 April 2015, Mr Nyoni applied for a position as a pharmacist within the My Chemist Retail Group of retail pharmacy stores. That application does not appear to have been successful.
151 Mr Nyoni then applied on 10 April 2015 for another position through the My Chemist Retail Group, this time at a Chemist Warehouse pharmacy in Mayfield, New South Wales.
152 On 11 April 2015, Mr Nyoni received a no reply email in standard form acknowledging receipt of that application.
153 At about the same time that Mr Nyoni was applying for pharmacist and pharmaceutical sales positions, he also submitted various applications for chief executive officer roles. The evidence in this respect is similarly piecemeal; although the following job applications are revealed.
154 On 25 October 2014, Mr Nyoni applied for the position of chief executive officer with the Derby Aboriginal Health Service Council.
155 On 12 November 2014, a representative of the Kimberley Aboriginal Medical Services Council Inc advised Mr Nyoni that his application for the positon of chief executive officer with the Derby Aboriginal Health Service Council had been unsuccessful.
156 At an unspecified date before 27 October 2014, Mr Nyoni applied for the position of chief executive officer of the Richmond Shire Council, Queensland. That application did not appear to have been progressed.
157 On 12 November 2014, Mr Nyoni applied for the position of chief executive officer with CopperChem Limited. On Friday, 28 November 2014, Mr Nyoni received an email saying that his application had not been successful.
158 On Wednesday, 12 November 2014, Mr Nyoni applied for the position of chief executive officer of an unspecified organisation in Darwin, Northern Territory, through Hays recruitment agency.
159 On 13 November 2014, Mr Nyoni appears to have applied for a chief executive officer position through Precruitment recruitment agency and on 25 November 2014, he was advised that he had not been shortlisted.
160 On 14 November 2014, Mr Nyoni applied for the position of chief executive officer of the Northern Territory News in Darwin. The application does not appear to have been proceeded with.
161 Around 17 November 2014, Mr Nyoni applied for the position of chief executive officer of Animal Management in Rural and Remote Indigenous Communities.
162 On 20 November 2014, it appears that Mr Nyoni applied for the position of chief executive officer with "Helen Martin" through the CareerOne online jobs board. The job was located in Uluru, Northern Territory. It appears that application was not progressed.
163 On 4 April 2015, Mr Nyoni applied, through the recruitment agency Chandler Macleod, for a "directors general" position. This application does not appear to have been progressed.
164 None of the emails or letters which rejected Mr Nyoni's applications stated that the reason why Mr Nyoni was not offered the position was the fact that the potential employer or employment agency had read the first condition on his registration as a pharmacist on the AHPRA website and formed the view that Mr Nyoni was addicted to Sch 8 drugs or had the conditions imposed on him by reason of him self-administering or otherwise abusing Sch 8 drugs.
165 Further, Mr Nyoni did not call any oral evidence from any person to whom Mr Nyoni had applied for a position who said Mr Nyoni had not been offered the position because of the presence of the first condition associated with his registration as a pharmacist on the national register as evident on the AHPRA website.
166 The closest that the evidence gets to showing a causal relationship between the failure of any of Mr Nyoni's employment applications and the imposition and publication of the first condition on the APHRA website is the application Mr Nyoni made for a position as a pharmacist with Chemist Warehouse in Albury, New South Wales. However, the highest that the evidence gets is that Mr Nyoni revealed to the potential employers that there were conditions on his registration. This revelation appeared to have an adverse effect on Mr Nyoni's application progressing to a successful conclusion. However, it is not sufficient for Mr Nyoni to show that the imposition of the conditions generally had an adverse effect on his employment applications. This is because Mr Nyoni's claim is that the contravening conduct comprised the imposition of the first condition which conveyed the false impression that he had abused or was addicted to Sch 8 drugs. Thus, for Mr Nyoni to establish the causal link between the contravening conduct and the damage arising from the failure to obtain employment, it would be necessary for Mr Nyoni to show that he did not obtain an employment position by reason of the presence of the first condition on his registration rather than the presence of the conditions taken together.
167 As I have said, the conditions, other than the first condition, reflect the revocation of his s 23 authority by the chief executive officer of the Department of Health. This revocation inhibited Mr Nyoni's ability to practice as a pharmacist and was based on his convictions in the Magistrates Court. By the time Mr Nyoni started applying for jobs, he had failed in his attempts to set aside the convictions, and also to set aside the revocation of his s 23 authority.
168 Accordingly, I find that Mr Nyoni has failed to establish that he has suffered any actual economic loss by reason of the publication of the first condition in the national register and on the AHPRA website.