The course of the interlocutory applications
13 Against that background of principle I will turn to consider the circumstances of the present applications (it is convenient to refer to the original application and the amended application as separate applications). They were prompted when the applicant filed an affidavit of Dr Blumberg dated 4 August 2021 in support of her application for leave under s 46PO(3A) of AHRC Act. This annexed the July Report, which asked that it be read in conjunction with his previous psychiatric reports dated 7 January 2021 and 14 June 2021, that is, the June Report. In broad terms, the report of 7 January 2021 addressed whether the incidents of sexual harassment and discrimination that the applicant claims to have occurred had caused her to suffer from depression, anxiety, post-traumatic stress disorder and other disorders. The July Report answered a number of detailed follow-up questions from the applicant's solicitors that went to those issues.
14 The first respondent's solicitors, Minter Ellison, asked for a copy of the June Report by email dated 3 September 2021. When it had not been received, and after Minter Ellison followed the request up, the firm emailed Bailiwick Legal on 9 September 2021 saying that their client would apply for an order to compel production. Bailiwick Legal responded on the same day saying that their client would not consent to releasing the report. They did not give reasons. Minter Ellison asked for those reasons. Bailiwick Legal did not reply. The interlocutory application was lodged on the afternoon of the same day.
15 Pursuant to programming orders, affidavits were filed and an outline of written submissions was filed by the first respondent but not by the applicant. The reasons for the applicant's opposition to production of the June Report to the first respondent appeared from an affidavit of 28 September 2021 sworn by her solicitor, Philip Brunner. Mr Brunner claimed privilege over the June Report and asserted his view that it did not influence the contents of the other two disclosed reports and was not required to understand the contents of those reports.
16 The application was listed for hearing on 4 November 2021. But on 2 November 2021, Bailiwick Legal produced the June Report to Minter Ellison. No explanation was given for why it had been withheld up to that time and why it was being provided then. However, the content of the report may provide an explanation. It is not necessary to go into detail as to its contents. It is enough to say that it does not directly address the same issues as the other two reports that had been disclosed. Its immediate subjects are, rather, the applicant's capacity to instruct solicitors to conduct the proceeding, and the likely consequences for her mental health as the proceeding continues and if it results in an adverse outcome.
17 Whether those subjects are in issue in the proceeding is open to argument, so arguably, despite Dr Blumberg's reference to the June Report in the July Report, the June Report was not relevant and not necessary to understand the July Report. While Bailiwick Legal did not put that argument clearly, it may have been inherent in Mr Brunner's expressed view that, despite Dr Blumberg's request in the July Report that it be read in conjunction with the June Report, in fact the June Report did not bear on the later report.
18 The June Report said that Dr Blumberg had 'had access to and [had] perused' the following three documents, being the Further Documents:
• Letter requesting an updated report authored by Mr Jason Raftos, Consultant, Bailiwick Legal
• Your [that is, Bailiwick Legal's] file notes dated 1 June 2021
• Email from Ms Sivwright dated 31 May 2021
19 The June Report not only lists the Further Documents in this way, but proceeds to quote from them and to describe their contents. This is done as part of the factual basis for Dr Blumberg's answers to Bailiwick Legal's questions and in a way suggesting that there was more to the Further Documents than appeared in the June Report.
20 Along with the June Report, Bailiwick Legal sent the other parties a minute of orders to vacate the hearing of the interlocutory application on 2 November 2021. On 2 November 2021, Minter Ellison asked Bailiwick Legal by email to urgently provide copies of the Further Documents so that it could take instructions on the minute. Bailiwick Legal replied noting the request for the documents, saying that it would be addressed 'in due course' and disputing that there was any need to provide them for Minter Ellison to take instructions on the minute. On 3 November 2021 Minter Ellison replied, relying on para 5.3 of the Federal Court's Expert Evidence Practice Note and saying that because the June Report refers to the three documents, the applicant was obliged to provide them. Minter Ellison said that if they were not provided, its client would apply at the hearing on 4 November 2021 for the interlocutory application to be adjourned and the application amended to seek production of the documents. The email said that the first respondent would seek its costs.
21 Bailiwick Legal replied saying:
Your demand falls squarely into the same conundrum that has led to your client's current interlocutory application. Our client has waived privilege on the report of Dr Blumberg dated 14 June 2021. On an assessment of the identification of the documents as referred to in the report, in our view it ought be reasonably open to conclude that each document would attract at least legal professional privilege. A secondary issue will be relevance. A question of proportionality is also likely to arise.
It seems therefore that, unless your client is prepared to accept that these documents are covered by privilege and or are not relevant, that we will need to consider your proposed orders.
22 The parties agreed to orders providing for the amendment of the interlocutory application and programming the application to a hearing. In the course of reaching that agreement, Mr Brunner of Bailiwick Legal sent Minter Ellison another email (dated 4 November 2021) which asserted that his client was agreeing to the programming orders as 'the path of least resistance' in the following circumstances:
1. It is apparent to us that even if the current interlocutory application was to be finalised (including as to costs), your client would continue to seek the 3 identified documents, creating further costs to our client and taking further time;
2. Where we have advised your client that the documents are, in our view, covered by legal professional privilege and or irrelevant;
3. That the documents are likely covered by legal professional privilege and or irrelevant is evident by the description of the documents within Dr Blumberg's report;
4. Where, in our view, your client's pursuit of these further documents offends the principle of proportionality.
In all of the circumstances, we are of the view that your client's conduct is unreasonable and is exposing our client to further and unnecessary costs. In the event that our client is successful in her objection to the disclosure of these documents, our client will seek an order that your client pay her costs, and reserves the right to seek an indemnity costs order and an order that you and or Ms McKenzie, are liable for those costs.
23 The first respondent and the applicant each filed affidavits and outlines of written submissions in support of their respective positions on the amended interlocutory application, which was listed for hearing on 20 January 2022. The first respondent's submissions relied on well-established principles that the production of an expert report can result in waiver of privilege over documents referred to in it: see e.g. Australian Securities and Investments Commission v Southcorp Limited [2003] FCA 804 at [21(4)] and the cases there cited; Evidence Act 1995 (Cth) s 126. As stated in Towney v Minister for Land and Water Conservation (NSW) (1997) 76 FCR 401 at 414, these can apply, for the purposes of s 126, when:
a privileged document is voluntarily disclosed for forensic purposes, and a thorough apprehension or appreciation of the character, significance or implications of that document requires disclosure of source documents, otherwise protected by client legal privilege …
24 The applicant's submissions in response of 16 December 2021 relied on legal professional privilege attaching to the Further Documents, but the issue of course was whether that privilege had been waived when the June Report was produced. In that regard, her submission was that privilege had not been waived because Dr Blumberg's opinion was based on his personal observations of the applicant and not on the contents of the documents. The submissions also asserted that the first respondent's pursuit of the documents was an abuse of process as 'it seeks to create further costs and delays to the Applicant' and that the documents were not relevant to the issues in the proceeding.
25 In a written submission as to the present dispute about costs, the applicant does not make any attempt to explain her last minute changes of position in respect of the interlocutory application or amended interlocutory application by reference to matters such as the merits of the applications or any supervening events. Instead, she relies on a further report of Dr Blumberg dated 1 February 2022, apparently commissioned for the purpose of the costs dispute, the effect of which is that the stress of involvement in court proceedings is likely to overwhelm her and cause her to experience unspecified 'difficulties with decision making' and 'cognitive difficulties'.