Dismissal for want of jurisdiction
26 The Intervener contends that "Ground 1" of the applicant's originating application is the only ground which even arguably invokes federal jurisdiction, but that the claim concerns the authority of NCAT, relevantly constituted by members including the Honourable Francis Marks, to make orders pursuant to the Civil and Administrative Tribunal Act which is a matter which does not engage federal jurisdiction. A party may challenge an error by NCAT by an appeal to NCAT's Appeal Panel and thence an appeal to the Supreme Court of NSW (or alternatively by an application for judicial review to the Supreme Court of NSW). The Intervener referred to s 19(1) of the FCA Act, and to Rana v Google Inc [2017] FCAFC 156; (2017) 254 FCR 1 (Rana) at [15]-[22] as to the scope and operation of federal jurisdiction. Reference was also made to Qantas Airways Ltd v Lustig [2015] FCA 253; (2015) 228 FCR 148 (Lustig) at [88]. The Intervener submitted that the impugned NCAT decisions did not make findings under the Health Insurance Act. Nor does the claim rely on an asserted cause of action created by the Health Insurance Act. It was submitted that "[a]t the absolute highest, the Applicant's claim merely involves the interpretation of a federal law, a matter which on its own does not attract federal jurisdiction: see Rana at [18], citing Felton v Mulligan (1971) 124 CLR 367 at 374, 408-409, 416".
27 The Intervener submitted the Court:
…should have little difficulty in concluding that the Applicant's claim is colourable in the sense that it is made for "the improper purpose of 'fabricating' jurisdiction". The Court can be fortified in concluding that the claim has invoked the Health Insurance Act for the improper purpose of fabricating federal jurisdiction, because the Applicant has exhausted his means of challenging NCAT's decisions in the NSW court system, and indeed has been declared a vexatious litigant in respect of those and earlier proceedings, which has the effect of imposing a requirement for leave before he can initiate any further proceedings of that nature in the NSW court system.
28 The Intervener's submission must be accepted.
29 In Rana at [15]-[22], the Court relevantly summarised the scope of federal jurisdiction as follows (emphasis in original):
Principles of federal jurisdiction and the jurisdiction of this Court
[15] The jurisdiction exercised by the Federal Court is always federal jurisdiction: Re Wakim; Ex parte McNally (1999) 198 CLR 511. The content of that jurisdiction exercised by this Court is derived from ss 75 and 76 of the Constitution of the Commonwealth (the Constitution), and that jurisdiction is defined by laws that are authorised by s 77(i) of the Constitution. Section 19 of the Federal Court of Australia Act provides that the Federal Court "has such original jurisdiction as is vested in it by laws made by the Parliament". Leaving to one side specific conferrals of jurisdiction on the Court by individual Acts of the Commonwealth Parliament, by s 39B(1A)(c) of the Judiciary Act 1903 (Cth), Parliament has conferred upon the Court a general federal civil jurisdiction, being "jurisdiction in any matter … arising under any laws made by the Parliament".
[16] Crucial to the scope and operation of federal jurisdiction, to the question whether a proceeding is within federal jurisdiction and to the question whether a proceeding is within the jurisdiction of this Court, is the concept of a "matter". In Re Wakim, Gummow and Hayne JJ at [139]-[140] described a "matter", and the process of its identification, as follows:
[139] The central task is to identify the justiciable controversy. In civil proceedings that will ordinarily require close attention to the pleadings (if any) and to the factual basis of each claim.
[140] In Fencott it was said that: "in the end, it is a matter of impression and of practical judgment whether a non-federal claim and a federal claim joined in a proceeding are within the scope of one controversy and thus within the ambit of a matter." The references to "impression" and "practical judgment" cannot be understood, however, as stating a test that is to be applied. Considerations of impression and practical judgment are relevant because the question of jurisdiction usually arises before evidence is adduced and often before the pleadings are complete. Necessarily, then, the question will have to be decided on limited information. But the question is not at large. What is a single controversy "depends on what the parties have done, the relationships between or among them and the laws which attach rights or liabilities to their conduct and relationships". There is but a single matter if different claims arise out of "common transactions and facts" or "a common substratum of facts", notwithstanding that the facts upon which the claims depend "do not wholly coincide". So, too, there is but one matter where different claims are so related that the determination of one is essential to the determination of the other, as, for example, in the case of third party proceedings or where there are alternative claims for the same damage and the determination of one will either render the other otiose or necessitate its determination. Conversely, claims which are "completely disparate", "completely separate and distinct" or "distinct and unrelated" are not part of the same matter.
(Citations omitted and emphasis added.)
[17] The "matter" is the justiciable controversy between the parties arising out of the substratum of facts and claims representing, or amounting to, the dispute or controversy between or amongst the parties. Where federal and non-federal claims comprise the same justiciable controversy, a court exercising federal jurisdiction will have jurisdiction to resolve the entire matter in the exercise of its federal jurisdiction. The non-federal part of the matter is sometimes referred to as "accrued jurisdiction" (as distinct from the associated jurisdiction provided for under s 32 of the Federal Court of Australia Act). It is better understood and expressed, however, as being part of the one matter. References to "accrued jurisdiction" need to be treated with caution or, indeed, to be avoided: see Rizeq v Western Australia (2017) 91 ALJR 707; 344 ALR 421 at [55] per Bell, Gageler, Keane, Nettle and Gordon JJ. (It should also be noted at this point that no issue concerning s 79 of the Judiciary Act arises in this case.)
[18] A matter will "arise under" a law of the Parliament in a number of ways. These include cases where a cause of action is created by a Commonwealth statute; where a Commonwealth statute is relied upon as establishing a right to be vindicated; where a Commonwealth statute is the source of a defence that is asserted; where the subject matter of the controversy owes its existence to Commonwealth legislation - that is where the claim is in respect of or over a right which owes its existence to federal law; where it is necessary to decide whether a right or duty based on a Commonwealth statute exists even where that has not been pleaded by the parties, or where a federal issue is raised on the pleadings but it is unnecessary to decide: see generally R v Commonwealth Court of Conciliation and Arbitration; Ex parte Barrett (1945) 70 CLR 141 at 154; Felton v Mulligan (1971) 124 CLR 367 at 374, 388, 403; Moorgate Tobacco Company Ltd v Philip Morris Ltd (1980) 145 CLR 457 at 476; LNC Industries Ltd v BMW (Australia) Ltd (1983) 151 CLR 575 at 581-582; Re McJannet; Ex parte Australian Workers' Union of Employees (Qld) (No 2) (1997) 189 CLR 654 at 656-657; CGU Insurance Ltd v Blakeley (2016) 259 CLR 339; Australian Solar Mesh Sales Pty Ltd v Anderson (2000) 101 FCR 1 at 7-8. A matter may also exist prior to the commencement of formal proceedings and be federal in character at that point: Hooper v Kirella Pty Ltd (1999) 96 FCR 1 at [45]-[55]. There is a difference, however, between a matter "arising under" a law of the Parliament and a matter that merely involves the interpretation of a federal law (and which will not on its own attract federal jurisdiction): see Felton at 374, 408-409, 416.
[19] The Court (French CJ, Kiefel, Bell and Keane JJ) said the following in CGU at [30]-[31] in discussing federal jurisdiction:
[30] The justiciability requirement encompassed in the concept of "matter" appears in the description of that term by the majority in Fencott v Muller as "a justiciable controversy, identifiable independently of the proceedings which are brought for its determination and encompassing all claims made within the scope of the controversy". It has an evaluative element as also appears from the majority judgment in Fencott:
What is and what is not part of the one controversy depends on what the parties have done, the relationships between or among them and the laws which attach rights or liabilities to their conduct and relationships. The scope of a controversy which constitutes a matter is not ascertained merely by reference to the proceedings which a party may institute, but may be illuminated by the conduct of those proceedings and especially by the pleadings in which the issues in controversy are defined and the claims for relief are set out.
The evaluative element is illustrated by, but not confined to, the delineation of the so called "accrued jurisdiction" to entertain non-federal claims in federal jurisdiction, by their Honours' observation that it is:
a matter of impression and of practical judgment whether a non-federal claim and a federal claim joined in a proceeding are within the scope of one controversy and thus within the ambit of a matter.
[31] The existence of jurisdiction is anterior to the existence of the power to grant particular relief. As Gleeson CJ and McHugh J said in MIMIA v B:
In a legal context the primary meaning of jurisdiction is "authority to decide". It is to be distinguished from the powers that a court may use in the exercise of its jurisdiction
(footnotes omitted)
The distinction has been made frequently in this court.
(Citations omitted.)
[20] Once a matter is within federal jurisdiction, the entire matter is within federal jurisdiction: Australian Securities and Investments Commission v Edensor Nominees Pty Ltd (2001) 204 CLR 559 at [7] per Gleeson CJ, Gaudron and Gummow JJ. There is never any concurrent exercise of federal and State jurisdiction: Felton at 412-413; Moorgate at 471.
[21] Generally, non-colourable assertion of a federal issue is enough to attract federal jurisdiction: Felton at 374 per Barwick CJ; Moorgate at 476; Burgundy Royale Investments Pty Ltd v Westpac Banking Corporation (1987) 18 FCR 212 at 219; Parisienne Basket Shoes Pty Ltd v Whyte (1938) 59 CLR 369 at 389-391 per Dixon J. Upon the existence of federal jurisdiction, the matter remains within federal jurisdiction regardless of how the federal issue or issues within it are ultimately resolved: Moorgate at 476. It remains federal even if the federal claim is struck out: Unilan Holdings Pty Ltd v Kerin (1993) 44 FCR 481 at 481-482. Nor does dismissal of the federal claim mean that a court exercising federal jurisdiction somehow loses jurisdiction over the balance of the matter: Burgundy Royale at 219; Johnson Tiles Pty Ltd v Esso Australia Ltd (2000) 104 FCR 564 at [85] per French J. The same is true if the federal claim is effectively abandoned: see Moorgate. Indeed, a matter remains in federal jurisdiction even if a party is added and no federal claim is made against that party, provided it is all part of the same matter, the same controversy: Re Wakim at [145] per Gummow and Hayne JJ. The position is summarised in Macteldir Pty Ltd v Dimovski (2005) 226 ALR 773 at [36] as follows:
It is a fundamental tenet of federal jurisdiction that once a federal claim is made, even a bad one, and even one that is abandoned, or struck out, the whole matter in which that claim is made is, and remains, federal jurisdiction …
(Citations omitted.)
[22] The exception to this principle is where the federal claim that is made is "colourable" in the sense that it was "made for the improper purpose of fabricating jurisdiction" such that it was not made bona fide. In such a case, federal jurisdiction is not attracted: Burgundy Royale at 219. .
30 In Lustig at [88], Perry J observed in relation to what constitutes a "colourable" federal claim, as follows:
[88] The raising of a federal claim will ordinarily give rise to a federal matter unless it is colourable in the sense that it is made for "the improper purpose of 'fabricating' jurisdiction": Burgundy Royale at 219 (the Court). The question, therefore, of whether a claim is tenable will be relevant to that question but not determinative save (rarely) where a claim is so obviously untenable, and would have been so to those who propounded it, that the claim is found to be colourable: Cook v Pasminco Ltd (2000) 99 FCR 548 at [14] and [16] (Lindgren J); Ahmed v Harbour Radio Pty Ltd (2009) 180 FCR 313 at [58]-[64] (Foster J). For example, in Johnson Tiles Pty Ltd v Esso Australia Pty Ltd (2000) 104 FCR 564 (Johnson Tiles), French J (with whose reasons Beaumont and Finkelstein JJ agreed) explained at [88] that:
In the ordinary course the contention that a claim is not tenable will not go to jurisdiction unless dependent upon a submission that the claim is outside jurisdiction. And indeed, within that class a claim may be untenable because its very nature denies its character as an element of any matter or controversy in respect of which the Court can exercise jurisdiction. So a proceeding based upon the proposition that the Commonwealth Constitution is invalid does not disclose a matter arising under the Constitution or involving its interpretation - Nikolic v MGICA Ltd [1999] FCA 849. A claim may also be a sham reflecting no genuine controversy and therefore establishing no matter in respect of which the Court may exercise its jurisdiction. There has been discussion of so called "colourable" claims made under the Trade Practices Act for the improper purpose of fabricating jurisdiction. The mere fact that a claim is struck out as untenable does not mean it is colourable in that sense.
31 Her Honour's reasons at [88] in v Lustig were cited with approval in Page v Sydney Seaplanes Pty Ltd [2020] FCA 537; (2020) 277 FCR 658 at [28].
32 The applicant's written submission opposing the application does not address the submission as to jurisdiction. It was in the following terms:
[2] In my respectful submission, it is an untruth that the Respondent, Mr Frank Marks, is qualified to:
(i) make determination in the Health Insurance Act 1973 (Cth), because the NSW Civil and Administrative Tribunal does not [sic] such allocated function.
(ii) hear and determine the matter of Health Care Complaints Commission v Quach [2015] NSWCATOD 2 and [2015] NSWCATOD 32, because Mr Marks was not a term member on 10 September 2014.
[3] These untruths are advertised, by way of publication in Health Care Complaints Commission v Quach [2015] NSWCATOD 2 and [2015] NSWCATOD 32, which Mr Marks had order costs to win money.
[4] Mr Mark's misconduct is consistent with the ritual that corresponds to the Vietnamese saying,
Nói láo, quảng cáo, ăn tiền.
Translated colloquial meaning: to lie, to advertise is to win money.
Translated legal meaning: untruth, publication, is to win money.
[5] Mr Frank Marks has acted dishonestly to order costs, without necessary statutory authority, to win money. This matter, ACD 44/2020 Quach v Marks, is a criminal proceeding.
[6] Pursuant to the Section 31A(5) of the Federal Court Act 1976 (Cth), Summary judgement,
(5) This section does not apply to criminal proceedings.
With respect, the Federal Court does not have the necessary statutory authority to summarily dismiss this matter, ACD 44/2020 Quach v Marks.
33 As can be seen, the submission merely repeats, without expansion as to the basis, the assertion that the determination was made under the Health Insurance Act.
34 The applicant's oral submission also did not address the issue of jurisdiction except to assert that the Health Insurance Act applied, and that the suggestion of the Intervener to the contrary was an untruth. His oral submission focussed on the submission that his claims were criminal proceedings, as these are serious Commonwealth offences, and he is bringing a prosecution pursuant to the Crimes Act 1914 (Cth), and this Court cannot summarily dismiss criminal proceedings. The applicant submitted this related to both of his claims.
35 Neither the applicant's originating application nor his statement of claim indicate any basis upon which this Court may have jurisdiction in relation to his claims. This Court has no jurisdiction conferred on it to review a decision of NCAT, or decide any matter concerning the constitution or conduct of its members.
36 The context in which these proceedings have been brought is outlined above. This relevantly includes that neither of the challenged NCAT decisions refers to the Health Insurance Act and nor were any findings made under that Act. Rather, NCAT's findings of unsatisfactory professional conduct and professional misconduct were made under the Health Practitioner Regulation National Law. In particular, the issue of overcharging considered by NCAT, which appears from this hearing to be the basis of the applicant's first claim in his originating application, relates to the level of charge imposed by the respondent on AS (a former patient of the applicant), and the circumstances in which they were raised: see for example, Health Care Complaints Commission v Quach [2015] NSWCATOD 2 at [260]. The complaints considered by NCAT did not relate to the alleged overcharging to Medicare and indeed, NCAT declined to make any finding in relation to Medicare legislation and instead directed that the Registrar refer the matter to Medicare for further investigation: Health Care Complaints Commission v Quach [2015] NSWCATOD 2 at [126]. In any event, at best, such a claim merely involves the interpretation of a federal law, a matter which on its own does not attract federal jurisdiction: see Rana at [18], citing Felton v Mulligan (1971) 124 CLR 367 at 374, 408-409, 416.
37 In summary, the applicant's claims do not arise under any federal law, they do not rely on any cause of action created by the Health Insurance Act, and it is not necessary for the claim to decide whether a right or duty based on a Commonwealth statute exists: Rana at [18].
38 These claims are also made in the context where, as the Intervener contended, the applicant has exhausted his means of challenging NCAT's decisions in the NSW court system, and indeed has been declared a vexatious litigant in respect of those and earlier proceedings, such that the applicant must obtain leave before he can initiate any further proceedings of that nature in the NSW court system: Quach v New South Wales Health Care Complaints Commission [2017] NSWCA 267 at [130].
39 In light of these circumstances, I am satisfied that the applicant's claims constitute a "colourable" federal claim. The raising of a federal claim is made for "the improper purpose of 'fabricating' jurisdiction": Burgundy Royale Investments Pty Ltd v Westpac Banking Corporation (1987) 18 FCR 212 at 219.