Scope of the representative proceeding
4 On this issue, the applicants' further submission contended that the representative proceeding should continue in relation to the Represented Children, being the children represented by the applicants who are ordinarily resident in Australia. No submission contending that the representative proceeding should be continued in relation to the represented children not ordinarily resident in Australia (Other Represented Children) was made.
5 The Minister contended that the Court should order that the proceeding not continue as a representative proceeding at all.
6 I have determined that the proceeding should continue as a representative proceeding in relation to the Represented Children but should not continue as a representative proceeding in relation to the Other Represented Children.
7 Rule 9.21(1) of the Federal Court Rules 2011 (Cth) provides:
A proceeding may be started and continued by or against one or more persons who have the same interest in the proceeding, as representing all or some of the persons who have the same interest and could have been parties to the proceeding.
8 Furthermore, r 9.22 of the Rules relevantly provides:
(1) An order made in a proceeding for or against a representative party is binding on each person represented by the representative party.
(2) However, the order can be enforced against a person who is not a party only if the Court gives leave.
9 In Carnie v Esanda Finance Corporation Ltd (1995) 182 CLR 398, the High Court considered r 13(1) of the Supreme Court Rules 1970 (NSW) (NSW Rules) which employed similar language to that utilised by r 9.21(1) of the Rules. Chief Justice Mason and Justices Deane and Dawson described r 13(1) as "expressed in broad terms and … to be interpreted in the light of the obvious purpose of the rule, namely, to facilitate the administration of justice by enabling parties having the same interest to secure a determination in one action rather than in separate actions" (at 404). In Muldoon v Melbourne City Council (2013) 217 FCR 450 at [184], North J similarly perceived the primary purpose of rule 9.21 as being the avoidance of "a multiplicity of proceedings that agitate the same issues". That view was endorsed on appeal by Flick, Jagot and Mortimer JJ in Kerrison v Melbourne City Council (2014) 228 FCR 87 at [104].
10 Whether a proceeding may be "started and continued" (r 9.21(1)) as a representative proceeding turns in the first instance on whether the party has the "same interest" (r 9.21(1)) as the represented persons, in the sense that "there is a significant question common to all members of the class and they stand to be equally affected by the declaratory relief": Carnie at 421 (Toohey and Gaudron JJ, Mason CJ, Deane and Dawson JJ agreeing except on the question of remitter).
11 I am satisfied that the applicants and the Represented Children have the "same interest". The proceeding has raised a significant question common to all of them, namely, whether the Minister owes a duty to take reasonable care to avoid causing personal injury to the Children when deciding, under s 130 and s 133 of the EPBC Act, to approve or not approve the Extension Project. As the earlier reasons demonstrate, that question, which has now been answered in the affirmative, is itself dependent upon a series of common questions each of which may also be regarded as "significant". Furthermore, there is no doubt that both the applicants and the Represented Children stand to be equally affected by the declaration sought.
12 The resistance of the Minister to the representative proceeding continuing in relation to the Represented Children was not based on a lack of commonality of interest. It was based on the contention that whether the proceeding ought to be allowed to continue as a representative proceeding depends on other considerations and that it is appropriate in the exercise of the Court's discretion that the representative proceeding be discontinued.
13 Division 9.2 of the Rules does not expressly provide for a proceeding commenced as a representative proceeding to continue as such "unless the Court otherwise orders", as did r 13(1) of the NSW Rules: see Carnie at 407. However, it is not in contest that such an order may be made. The Minister relied on s 23 of the Federal Court of Australia Act 1976 (Cth) as the source of the Court's undoubted power to order that a proceeding not continue as a representative proceeding. Reliance may also be placed on r 1.32 of the Rules, which provides that the Court may make any order that the Court considers appropriate in the interests of justice: see Muldoon at [173] (North J).
14 Carnie suggests that the Court has a broad discretion to discontinue a representative proceeding despite the threshold requirement for such a proceeding having been satisfied. In the leading judgment of Toohey and Gaudron JJ, their Honours at 422 noted that the Court may give directions to enable the proceeding to be determined "with justice to all concerned". Their Honours continued (references omitted):
The simplicity of the rule is also one of its strengths, allowing it to be treated as a flexible rule of convenience in the administration of justice and applied "to the exigencies of modern life as occasion requires". The Court retains the power to reshape proceedings at a later stage if they become impossibly complex or the defendant is prejudiced.
15 Further, as Brennan J said at 408 it is "precisely because of the flexible utility of the representative action that judicial control of its conduct is important, to ensure not only that the litigation as between the plaintiff and defendant is efficiently disposed of but also that the interests of those who are absent but represented are not prejudiced by the conduct of the litigation on their behalf". His Honour went on to say later in that passage that "if, for any reason, the court is not satisfied that the interests of the absent but represented class are being properly advanced, the court should exclude the represented persons from the action. That power can be exercised at any time before the judgment is perfected".
16 Those observations made in Carnie as to the nature and extent of the Court's discretion to discontinue a representative proceeding, confirm that the Court may exercise that discretion to protect those persons who are represented but not active participants in the proceeding from any potential prejudice to their individual interests which may be brought about by reason of their absence.
17 The potential for those interests to be prejudiced arises primarily from the fact that, subject to the operation of subrr 9.22(2), (3), (4), a represented person is bound by an order made in the proceeding "for or against a represented party" (r 9.22(1)). The exception provided for by subrr 9.22(2), (3), (4) is designed to ameliorate the potential prejudice of an adverse order imposing liability upon a represented party where liability is able to be disputed "on the ground that facts and matters particular to the person entitle the person to be exempt from liability".
18 However, a represented party may also be prejudiced by reason of the application of the principle of res judicata. That possibility was discussed by Toohey and Gaudron JJ in Carnie at 423-424 (and see also Zhang v Minister for Immigration, Local Government and Ethnic Affairs (1993) 45 FCR 384 at 401-403 (French J)).
19 To some extent each of the Minister and the applicants relied upon the prospect of prejudice to the Represented Children brought about the possible application of the principle of res judicata as a basis for asserting discontinuance in part or in whole.
20 The Minister pointed to the prejudicial consequences of the Court's rejection of the applicants' claim made on behalf of the Represented Children for a finding of a broader duty of care, being a duty extending beyond personal injury and requiring the Minister to take reasonable care to avoid economic loss or property damage to the Represented Children (see my earlier reasons at [148] and [416]).
21 The applicants pointed to my rejection of their own claim for an injunction as posing a risk of a prejudicial consequence for the Represented Children. That was done in support of what was expressed as an application to discontinue the claim for an injunction made by the applicants on behalf of the Represented Children.
22 In both instances, what was relied upon to justify a discontinuance or partial discontinuance was the outcome of the proceeding and in particular the applicants' failure or partial failure to obtain the relief which they had sought on behalf of the Represented Children.
23 In my view, in neither case is the discontinuance contended for justified.
24 It may have been justified if the failure to obtain the full extent of the relief sought by the applicants had occurred because the interests of the Represented Children were not properly advanced in the proceeding or because the conduct of the litigation by the applicants on behalf of the Represented Children had brought about some prejudice to their interests. However, no contention to that effect has been made and nor is there any apparent basis for it.
25 If the justifiable exercise of the Court's discretion to discontinue a representative proceeding was based merely on the potential for a claim or claims made on behalf of represented persons to fail either in part or in whole, the discretion would almost always be exercised and representative proceedings would almost never be permitted to continue. Such an approach would substantially undermine the primary purpose of r 9.21(1) of avoiding the multiplicity of proceedings or, as was said in Carnie at 404, of facilitating the administration of justice by enabling parties with the same interests to secure a determination in one rather than separate actions.
26 In their discussion of res judicata in Carnie, Toohey and Gaudron JJ did not refer to the possibility that the claims made on behalf of the represented persons may fail as a source of prejudice to those persons and thus a basis for an order requiring discontinuance. So far as their Honours identified a concern that the rights and interests of represented persons not be compromised, the concern did not relate to rights agitated by the proceeding but related to "other rights" against the respondent that the represented persons may have. No such rights are here raised or relied upon.
27 This is not a case where the participation of one or more of the represented persons was likely to affect the outcome of the proceeding. The extent of the duty of care found to exist, and the applicants' failure to establish a duty in relation to economic or property loss, did not depend on facts and circumstances particular to any of the Represented Children or any subgroup thereof. Likewise, there is no basis for thinking that the injunction sought by the applicants on behalf of the Represented Children may have been granted if the Represented Children had been given the opportunity to put before the Court facts and circumstances particular to them or some of them.
28 There is no basis to substantiate the Minister's contention that the absence of notice to the Represented Children of the proceeding or the lack of an opportunity for them to have opted out has caused any real prejudice. To the contrary, as the applicants contended, the continuance of the proceeding as a representative proceeding provides to the Represented Children the benefit of any declaration to be granted in their favour.
29 I turn then to deal with whether an order should be made discontinuing the representative proceeding in relation to the Other Represented Children. As stated in the earlier reasons at [4], during the hearing the applicants confined their claims for relief to themselves and the Represented Children. No order or declaration extending to the Other Represented Children is now sought. No submission is now made either to justify the initial inclusion of the Other Represented Children in the representative proceeding or to support the representative proceeding continuing to extend to that class of persons. The utility of the representative proceeding continuing in relation to that class is not apparent. Even if I were to presume that the applicants and the Other Represented Children have the "same interest", the absence of any utility is of itself sufficient to justify an order that the representative proceeding not continue in relation to the Other Represented Children.