Factual circumstances in which damages are to be assessed
32 As explained in the joint judgment of the Full Court, Mr Nyoni was a pharmacist who migrated to Australia from Zimbabwe and in 2003 bought and operated until 2013, the only pharmacy in Kellerberrin, in the central Wheatbelt of Western Australia. He brought proceedings against the Shire, two of its successive CEOs, Mr Frank Peczka and Mr Friend, its President, Mr Stan McDonnell, and an electrical contractor, Mr Peter Mitchell.
33 The primary judge, following a lengthy trial in July 2014, delivered a judgment on 23 November 2015, dealing with five substantive causes of action advanced against these respondents by Mr Nyoni, namely that:
(1) Mr Peczka and the Shire acted in concert with Mr Robert Bateman, a senior investigating officer of the Health Department, in trespassing upon Mr Nyoni's pharmacy property in October 2007;
(2) the Shire, by one or more of its agents or officers, had made disparaging statements about Mr Nyoni's business and, thereby, engaged in misleading or deceptive conduct and/or malicious falsehood;
(3) the Shire, Mr Friend and Mr McDonnell were liable as joint tortfeasors with Mr Mitchell in trespassing upon Mr Nyoni's property in the course of disconnecting the electricity supply to Mr Nyoni's pharmacy in March 2010 and in October 2010 (2010 trespass claim);
(4) the conduct of Mr Friend and Mr McDonnell in relation to the disconnection of the electricity supply to Mr Nyoni's pharmacy on 14 October 2010, amounted to misfeasance in public office (misfeasance claim); and
(5) the Shire engaged in misleading or deceptive conduct by publishing the minutes of a Shire Council meeting which disparaged Mr Nyoni's pharmacy business.
34 The primary judge found in Mr Nyoni's favour on one aspect of the 2010 trespass claim. He held that Mr Mitchell had committed a trespass at the pharmacy on 14 October 2010 when he intentionally entered and remained on the premises without consent of owner or lawful authority and, in the course of which, he disconnected the electricity without any lawful basis to do so. His Honour awarded Mr Nyoni $12,000 in damages against Mr Mitchell that included $4,000 in aggravated damages, and ordered Mr Mitchell to pay Mr Nyoni's costs in relation to the issues between them.
35 However, his Honour dismissed with costs all of Mr Nyoni's claims against the Shire and Messrs Peczka, Friend and McDonnell, including the balance of the 2010 trespass claim.
36 On appeal to the Full Court, the Full Court by majority dismissed all grounds of appeal against these findings, save in respect of the misfeasance claim.
37 At [43]-[52] in the joint judgment, their Honours summarised the findings of the primary judge about Mr Friend's email that he sent on 14 October 2010 to Mr Bateman and Mr Timothy van Bronswijk, and copied to Mr McDonnell, six councillors and three other individuals, including Mr Raymond Griffiths. Their Honours, at those paragraphs, stated:
43 In the meantime, at 3:31pm on 14 October 2010, Mr Friend sent an email to Messrs Bateman and van Bronswijk, and copied it to each of the elected members of the Shire Council, including Mr McDonnell, and three Council officers, that stated:
Subject: PHARMACY POWER
Tim/Robert I have been advised by Peter Mitchell, the local electrician, that he is cutting the power at both the pharmacy and Nyoni residence on Bedford Street this afternoon.
I assume I will see you both tomorrow?
Darren
(Emphasis added.)
44 Mr van Bronswijk replied at 4:04pm as follows:
Please arrange to have the electrician confirm to me in writing on his letterhead (electronically or by facsimile) that he has carried out disconnection of the power supply to both premises once he has done so.
45 His Honour found that Mr van Bronswijk wanted that confirmation for the purposes of pursuing disciplinary action against Mr Nyoni.
46 After effecting the disconnections, Mr Mitchell attended the Shire offices later on 14 October 2010 and co-operated with Mr Friend in composing a letter that was then produced and printed in the Shire offices, signed there by Mr Mitchell and sent, by or under the direction of Mr Friend, from the Shire offices to Mr van Bronswijk, later on the same day. Mr Mitchell's letter dated 14 October 2010 had his trading name in bespoke letterhead and appeared to be professionally formatted and presented. It read:
To Whom It May Concern
Re disconnection of power to both sites owned by Chemist one being house and other being owner's business.
Meter number for house is … disconnected at 3.01 pm on 14 October
Meter number for chemist shop is … disconnected at 3.32 pm on 14 October
Please note this is not the first time this has occurred on the same premises.
(Emphasis added.)
47 At about 9:45am on 15 October 2010, Mr Mitchell reconnected the electricity supply to the pharmacy. Mr Friend advised Mr van Bronswijk of this bland fact by email at 10:58am. His Honour found, however, that no one, including Mr Friend, advised Mr van Bronswijk or the Department of Health that Mr Nyoni was not at fault for the electricity supply to the pharmacy being disconnected. The primary judge found that Mr van Bronswijk was left with the false impression that Mr Nyoni had been at fault.
48 Thus, the registrar of the Pharmaceutical Council, immediately, before its statutory dissolution later on 15 October 2010, wrote to Mr Nyoni informing him that the Council considered that the continuous supply of electricity to registered pharmacy premises was essential to the provision of a professional pharmacy service. Dr Robertson of the Department of Health wrote to Mr Nyoni on 19 October 2010 informing him that, in light of the 14 October 2010 disconnection of electricity and the earlier one between 15 and 17 March 2010, any future disconnection would give rise to consideration of whether his pharmaceutical chemist licence for the pharmacy should be suspended.
49 His Honour found that Mr Mitchell's purpose in advising the Shire in advance, on 14 October 2010, of the impending disconnection was to assist the Shire in demonstrating to regulatory authorities that, contrary to Mr Nyoni's assertions, the latter did not run a 'perfect pharmacy'. The primary judge found:
Mr Friend's evidence that the first time he had seen the letter was when it was shown to him in the witness box, is highly implausible, and I reject that evidence. It is inconceivable that Mr Friend who had since January 2010, been engaged in a continuing campaign to cause the regulatory authorities to take disciplinary action against Mr Nyoni would not have examined the letter before it was dispatched from the Shire offices so as to ensure that Mr van Bronswijk's request for confirmation of the disconnection of the pharmacy's electricity, had been complied with.
(Emphasis added.)
50 His Honour also found:
I find that Mr Friend's intention in sending the email to Mr Bateman and Mr van Bronswijk advising of the impending disconnection of the electricity to the pharmacy, and in procuring the production and dispatch to Mr van Bronswijk of the letter of confirmation signed by Mr Mitchell, was to persuade the Pharmaceutical Council to consider taking disciplinary action against Mr Nyoni. The same is true in relation to the dispatch of the letter of confirmation to the Health Department. This action was part of a continuing campaign by Mr Friend and the Shire to persuade the various bodies which regulated the practice of a pharmacist, either to withhold benefits from, or impose sanctions against, Mr Nyoni so that Mr Nyoni would cease operating the Kellerberrin pharmacy and would be replaced by another pharmacist. That this was Mr Friend's and the Shire Council's objective from, at the latest, early January 2010, is obvious from the activities engaged in by Mr Friend and the Shire which are described in [90] to [137] above. The closing submissions of the second, third and fourth respondents, correctly acknowledge this to be the case.
(Emphasis added.)
51 The primary judge found that on 14 October 2010, Mr Mitchell trespassed on the pharmacy premises and was liable in damages because he had no lawful authority to enter them. As noted earlier, his Honour assessed that Mr Mitchell should pay $12,000 in damages, which included $4,000 in aggravated damages to compensate for the affront to Mrs Nyoni, and thereby to her husband's right to enjoy exclusive possession, in the way that Mr Mitchell carried out that trespass. He found that Mr Mitchell acted in a manner that was high-handed and disrespectful.
52 However, his Honour found that Mr Mitchell's trespass had not involved, or been authorised or directed by, Mr Friend, even though Mr Mitchell had informed Mr Friend beforehand of what he proposed to do. He also found that Mr McDonnell had nothing to do with the disconnection of power to the pharmacy on 14 October 2010. Accordingly, the primary judge dismissed Mr Nyoni's claims that Mr Friend and Mr McDonnell were joint tortfeasors on that occasion.
38 In the joint judgment, at [75], their Honours stated that Mr Friend acted maliciously, on the primary judge's findings, in sending his 14 October 2010 email and causing Mr Mitchell's letter to be produced and sent to the two regulators. They said that the harm that Mr Friend sought to bring about, using his position as CEO of the Shire in an official email from him in that office, was to give the Department and the Pharmaceutical Council of Western Australia a basis to act against Mr Nyoni to undermine his ability to act as a professional, licensed and qualified pharmacist at the pharmacy.
39 At [85], their Honours found that for the purposes of these proceedings, Mr Friend's malicious intention, as found by the primary judge, should be imputed to his employer, the Shire.
40 In the course of a discussion of legal authorities explaining the tort of misfeasance in public office, at [90], their Honours cited the decision of the Supreme Court of Canada in Odhavji Estate v Woodhouse [2003] 3 SCR 263 and discussed the judgment of Iacobucci J (for the Court). They noted that his Lordship identified the essential ingredients of the tort as falling into two categories: Category A involved a public officer whose conduct was specifically intended to injure a person or class of persons; and Category B involved a public officer who acted with knowledge both that he, she or it had no power to do the act complained of and that act was likely to injure the plaintiff.
41 At [94] in the joint judgment, their Honours said that Iacobucci J's Category A is what Lord Steyn called "targeted malice" in Three Rivers District Council v Bank of England (No 3) [2003] 2 AC 1. They also referred to the use of the "targeted malice" expression in authorities of this Court, including Sanders v Snell (No 2) (2003) 130 FCR 149 at [108]; [2003] FCAFC 150 (Black CJ, French and von Doussa JJ).
42 In the joint judgment at [100], their Honours referred to Watkins v Secretary of State for the Home Department [2006] 2 AC 395, where the House of Lords rejected a claim by a prisoner that prison officers and the Home Secretary had committed misfeasance in public office when three prison officers maliciously opened letters to the prisoner from his lawyers. That was, their Honours said, because their Lordships found that the prisoner could not establish that he had suffered "material damage", however unlawfully the three officers had acted.
43 Their Honours then said, at [101], that there was a distinction between that situation and the present case involving Mr Nyoni, where Mr Friend targeted his malice to have the two regulators take steps to cause Mr Nyoni to cease operating his pharmacy by raising matters with them that suggested that Mr Nyoni was unfit to properly conduct, or incapable of properly conducting, his profession or the business of a pharmacist. Their Honours added:
The making of such an allegation by a public officer or body, such as Mr Friend or the Shire, to another government agency or authority with regulatory powers over a person in Mr Nyoni's position should be presumed (as it would in cases of slander) to cause sufficient material or actual damage to support the action of misfeasance in public office.
44 At [102], their Honours stated:
In substance, Mr Friend intended, maliciously, as his Honour found, to cause both economic and reputational harm to Mr Nyoni. There is no reason why the law should ignore the reality that a professional person must suffer some real, material harm, when a public officer makes a complaint about the person to a regulator of his or her profession.
45 In the joint judgment, their Honours then found that Mr Friend acted, in sending his email of 14 October 2010 and causing Mr Mitchell's letter to be sent, with the intention that these would cause other public authorities to act on their powers to suspend or prevent Mr Nyoni from continuing to practise as a pharmacist or to dispense essential medicines. They observed that that was, as the primary judge found, Mr Friend's intention.
46 Ultimately, at [115]-[119], in the joint judgment, their Honours held:
115 On his Honour's findings, Mr Friend intended that his actions on 14 October 2010 would bring about, at least, such a result, namely that the two regulators would treat the disconnection of electricity to the pharmacy as a matter adverse to Mr Nyoni's entitlement to continue to operate it. Importantly, as noted above, his Honour found that no one, including Mr Friend, had advised Mr van Bronswijk or the Department that Mr Nyoni was not at fault for the electricity being disconnected and that Mr van Bronswijk was left with the impression that Mr Nyoni had been at fault.
116 As a consequence, the two regulators maintained uncorrected on their records in relation to Mr Nyoni and the pharmacy, the false report, that Mr Friend had sent or caused Mr Mitchell to make, that Mr Nyoni was responsible for the disconnection of the pharmacy that would be used against him should there be a repetition. That result advanced the campaign against Mr Nyoni that Mr Friend and the Shire had been pursuing.
117 Mr Friend's actions were not isolated or unexplained. He had been acting on the instructions and with the authority of the Shire for months, in expressing complaints about Mr Nyoni to the Department, as his 6 January 2010 letter to its Minister showed, and the Pharmaceutical Council.
118 In our opinion, based on the primary judge's findings of fact, Mr Friend committed the tort of misfeasance in public office in acting as he did on 14 and 15 October 2010 by sending his email and assisting Mr Mitchell to produce and despatch his letter to convey that Mr Nyoni was at fault for the pharmacy's disconnection. In so acting Mr Friend was also acting as the Shire so as to make it also liable for misfeasance in public office: Dunlop [1982] AC at 172F-G; [1981] 1 NSWLR at 84C-D; Hamilton at 127-129. Their intention, of injuring Mr Nyoni in doing so, entailed that their exercise of a public power was done for an ulterior and an improper purpose and, so, was a misuse of their powers: Futuris [11]. It was targeted malice.
119 Given that the primary judge had the advantage of seeing and hearing the witnesses over a lengthy trial, we consider that we should remit the assessment of damages, including aggravated and or exemplary damages, to his Honour which he should be able to do without the need for further submissions.
47 This Court is now required to make the relevant assessment of damages. That means the Court should consider whether (1) general damages; (2) aggravated damages; and/or (3) exemplary damages should now be awarded in favour of Mr Nyoni.
48 It is a matter of regret that Mr Nyoni elected to not participate in the assessment of damages hearing that I conducted. As I have indicated above, I consider I have no real alternative in the circumstances but to complete the hearing. Plainly, Mr Nyoni is entitled to an award of damages, based on the Full Court's orders and reasons, that is real in its quantum and not nominal in the ordinary, minimalist sense of the word. The Shire acknowledges that an award of general damages should be made but submits that aggravated and/or exemplary damages are not appropriate in the circumstances of this case.
49 The second, third and fourth respondents (Mr Friend, Mr McDonnell and Mr Peczka respectively), to the extent that they are all affected by the award of damages against the Shire, similarly acknowledge that general damages may be awarded but deny that there is any case for the award of aggravated and/or exemplary damages.
50 These second to fourth respondents, and the Shire, also seek orders that costs orders in their favour against Mr Nyoni should be satisfied prior to the payment of any damages to him, relating to the misfeasance in public office claim. That, however, is a question for later following the assessment of damages.