[2026] FCA 185
General information, not legal advice.
Federal Court of Australia
2026-03-02
Stellios J
Original judgment source is linked above.
(a) The second respondent have liberty to apply under r 40.02(b) of the Federal Court Rules within 28 days of the Court's orders for a lump sum costs order; otherwise costs to be agreed or assessed.
(b) The third respondent's costs to be agreed or assessed.
(a) The originating application accepted for filing on 8 August 2023;
(b) The statement of claim accepted for filing on 8 August 2023;
(c) The amended originating application filed on 14 March 2024; and
(d) The amended statement of claim filed on 14 March 2024.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
(1) Mr Svehla made orally before Perry J at a case management hearing on 10 October 2024;
(2) Mr Svager on 7 November 2024 in the affidavit of Eilish Cabban affirmed on the same date (Cabban affidavit);
(3) the Commonwealth on 7 November 2024 in the affidavit of Charles Richard Taylor affirmed on the same date (Taylor affidavit); and
(4) the third respondent on 13 November 2024 in the affidavit of Mark Gabriel Nicoletti sworn on the same date (Nicoletti affidavit).
The state of the originating process and pleadings
The evidence relied on in support of the interlocutory applications
The jurisdiction of the Court to hear the applicant's ACL claims
(1) First, it applies as a law of the Commonwealth to the conduct of corporations, and in relation to contraventions of Chapter 2, 3 or 4 of the ACL by corporations (s 131(1)).
(2) Secondly, s 21 of the ACL applies as a law of the Commonwealth in relation to (i) a supply or possible supply of goods or services by any person to a corporation; or (ii) an acquisition or possible acquisition of goods and services from any person by a corporation (s 131(2)(a)).
(3) Thirdly, s 147 of the ACL also applies as a law of the Commonwealth to, and in relation to, a corporation as a supplier referred to in that section (s 131(2)(b)).
(4) Fourthly, Div 2 of Part 5-1 of the ACL applies as a law of the Commonwealth to and in relation to a person if the other person referred to in s 219 of the ACL is a corporation (s 131(2)(c)).
(5) Fifthly, s 33 of the ACL applies as a law of the Commonwealth to, and in relation to, the conduct of any person (s 131(2)(d)).
(1) A court must not make an order under subsection 237(1) or 238(1) of the Australian Consumer Law to compensate a person for loss or damage the person suffers because of the conduct of another person to the extent to which:
(a) the action would be based on the conduct contravening a provision of Part 2-1 or 3-1 [which includes s 33] of the Australian Consumer Law; and
(b) the loss or damage is, or results from, death or personal injury; and
(c) the death or personal injury does not result from smoking or other use of tobacco products.
(1) Section 6(2)(a)(iii) of the CCA extends the operation of the relevant parts of the CCA to persons who are not corporations in circumstances where trade or commerce is within a Territory, between a State and a Territory or between two Territories.
(2) The Court has jurisdiction in respect of any matter in which the ACT Supreme Court has jurisdiction otherwise than by reason of a law of the Commonwealth or a State: Jurisdiction of Courts (Cross-vesting) Act 1987 (Cth) s 9(3) (Cross-Vesting Act (Cth)); Jurisdiction of Courts (Cross-vesting) Act 1993 (ACT) s 4(1) (Cross-Vesting Act (ACT)); see Crosby v Kelly (2012) 203 FCR 451; [2012] FCAFC 96 at [35]. The ACT Supreme Court has jurisdiction to determine matters under the ACT version of the ACL (Fair Trading (Australian Consumer Law) Act 1992 (ACT) (ACL (ACT))). The ACL (ACT) applies to and in relation to people carrying on business within the ACT, people ordinarily resident in the ACT or people otherwise connected with the ACT: ACL (ACT) s 11.
(1) Mr Svehla's address for service is given as an address in NSW; and
(2) Mr Svehla's dealings with Mr Svager occurred in NSW.
It is, of course, well accepted that a court whose jurisdiction is regularly invoked ... should not decide the issues raised in those proceedings in a summary way except in the clearest of cases. Ordinarily, a party is not to be denied the opportunity to place his or her case before the court in the ordinary way, and after taking advantage of the usual interlocutory processes. The test to be applied has been expressed in various ways, but all of the verbal formulae which have been used are intended to describe a high degree of certainty about the ultimate outcome of the proceeding if it were allowed to go to trial in the ordinary way.
See also Batistatos v Roads and Traffic Authority (NSW) (2006) 226 CLR 256; [2006] HCA 27 at [46] (Gleeson CJ, Gummow, Hayne and Crennan JJ); DHI22 v Qatar Airways Group QCSC (No 1) [2025] FCAFC 91 at [1], [64] and [206].
(1) Negligence: It is alleged that the Commonwealth and its departments "are responsible for administering safety of the people of Australia including the Consumer Protection Laws and Civil Laws" (FASOC at [52]). The particulars include that the Commonwealth provides policies, legislation, redress systems and enforcement agencies; cooperates with State and Territory consumer protection agencies; and promotes international enforcement in consumer protection. It appears from the pleadings that the allegation is that the Commonwealth is liable in negligence because it is responsible for (a) the regulation of gas cylinders (FASOC at [57]), (b) ensuring that licensed professionals who deal with such cylinders are competent (FASOC at [57.1]), and (c) preventing, through the supply chain, gas leaks from non-compliant gas cylinders (FASOC at [58] and [59]).
(2) The allegations also include the claim that the Commonwealth did not provide alternatives for the degradation of service providers and products during COVID-19 (FASOC at [60]).
(3) There also appears to be a claim that the COVID-19 vaccine was not tested on frostbite injury victims (FASOC at [62]), although it is unclear whether Mr Svehla alleges that the COVID-19 vaccine contributed to the extent of Mr Svehla's injury, or prevented him from re-entering Australia if unvaccinated. I will assume that this too is a claim based in negligence.
(4) Further, it is alleged that the Commonwealth failed in its responsibilities (including the failure of Australian consumer protection laws and subsequent defective administration and detriment), and that failure resulted in injury and other loss to Mr Svehla, including the time he has spent dealing with his injury (FASOC at [61]), entitling Mr Svehla to damages "under the Civil liability Act" or compensation (FASOC at [70], [91], [95]).
(5) Breach of statutory duty: Although not pleaded clearly, Mr Svehla appears to allege a breach of statutory duty. From his written submissions, Mr Svehla seeks declarations that the Commonwealth's authorities have failed to fulfil statutory duties to regulate and enforce the ACL, and an order that they investigate and recall the cylinder and issue public warnings. The claim for breach of statutory duty also includes allegations of contraventions of the International Convention on Civil and Political Rights (ICCPR) (FASOC at [92]-[94]). Mr Svehla also claims that he has suffered discrimination under the Disability Discrimination Act 1992 (Cth) (FASOC at [81.1]).
(6) Constitutional claims: Under the heading of "Other adverse issues - unconstitutional", Mr Svehla also appears to take issue with: the COVID-19 lockdown and alleged restrictions on him travelling to Europe; (then) Prime Minister Scott Morrison's appointment to multiple portfolios; (then) Premier Gladys Berejiklian's resignation; and the refusal to allow the UN Subcommittee on Prevention of Torture entry to Australia. All these alleged matters are claimed to have contributed to Mr Svehla's insecurity (FASOC at [63]-[66]). It is unclear to what extent these claims seek to raise a constitutional question. However, any such question is so insubstantial that it does not warrant the issuing of a notice under s 78B of the Judiciary Act: see Re Culleton (2017) 91 ALJR 302; [2017] HCA 3 at 307-308 [29] (Gageler J).
(7) Other claims: A litany of other allegations include that: the Commonwealth "had the authority to resolve Consumer Protection Laws disputes efficiently" (FASOC at [54]); the incident has been reported to federal authorities without proper resolution or feedback (FASOC at [53]); Mr Svehla has tested the gas cylinder for the Commonwealth involuntarily and without reward (FASOC at [67]-[69]); Mr Svager could have made the Commonwealth a party under s 148 of the ACL (Commonwealth liability for goods that are defective only because of compliance with a Commonwealth mandatory standard) (FASOC at [72]); there has been a failure to investigate the alleged incident in a timely way and the Commonwealth's "hands off approach" will set a precedent (FASOC at [73]-[77]); Centrelink staff have treated Mr Svehla in a disrespectful and unhelpful manner (FASOC at [79]-[80]); he has been denied access to his superannuation funds (FASOC at [82]-[83.1]); no documentation has been provided to Mr Svehla in relation to the alleged non-compliance of the gas cylinder, thereby denying Mr Svehla information about the supply chain for the cylinder (FASOC at [84]-[86]); and Mr Svehla has been denied free movement in Australia or abroad and, consequently, has been entrapped (FASOC at [87]). There are also unclear claims about agreements between Australia and the European Union and relating to Mr Svehla's immigration status (FASOC at [88]-[90]). Mr Svehla's submissions also refer to misfeasance in public office as a result of the failure by the Commonwealth to investigate, recall, or take corrective action in relation to the cylinder.
[The applicants] seek to run their negligence case on the basis the duty is owed to all members of the community affected in a negative way by the impugned Measures. ... This breadth of the persons to whom the alleged duty of care is said to be owed, without any attempt to identify or delineate the material facts relating to their circumstances, is one of the fatal flaws in the framing of the applicants' case in negligence. It is exacerbated by the failure to articulate specific links between the making of a particular Measure and the alleged harm said to have been caused even to a specific applicant. This detail is wholly absent. In my opinion that is in large part because the harm suffered by the applicants is of the same nature as the harm the applicants' case assumes has been suffered by a large (unidentified) proportion of the Australian community.
APPROPRIATE ORDER IN RELATION TO THE COMMONWEALTH AND THE THIRD RESPONDENT
The complete absence of an identified and valid claim and, more importantly, the factual materials to found either that valid claim, or some other form of valid claim, along with the likelihood that the applicant has no reasonable prospects of ever being able to produce that material, justifies a conclusion that there is not, and never will be, a valid claim before the court. This obviously cannot be remedied by orders to amend or strike out the pleadings because no amount of pleadings will remedy the fundamental absence of a valid claim. Moreover, the complete absence of a valid claim in this sense i.e. no identification of a claim, no factual foundation for a claim and no prospect of providing either, must lead inexorably to the conclusion that the applicant has no prospects of prosecuting his or her proceedings to a successful conclusion.
APPLICANT'S CLAIMS AGAINST THE FIRST RESPONDENT
(1) Section 18 provides that a person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
(2) Section 19 deals with the non-application of Part 2-1 of the ACL to information providers. It is not relevant to the circumstances in this case and should be struck out.
(3) Section 21 provides that a person must not, in trade or commerce, in connection with certain activities, engage in conduct that is unconscionable.
(4) Section 29 provides that a person must not, in trade or commerce, make certain false or misleading representations in certain circumstances.
(5) Section 33, as mentioned earlier, provides that a person must not, in trade or commerce, engage in conduct that is liable to mislead the public as to certain matters.
(6) Section 54 provides for a guarantee in certain circumstances that goods supplied by a person in trade or commerce to a consumer are of acceptable quality.
(7) Section 55 provides for a guarantee that goods supplied in trade or commerce will be fit for any disclosed purpose, and for any purpose for which the supplier represents they are reasonably fit.
(8) Sections 69 and 70 relate to "unsolicited consumer agreements" which are defined to be agreements for the supply in trade or commerce of goods or services to a consumer in certain circumstances.
(9) Section 106 prohibits certain conduct in trade or commerce relating to consumer goods, including the supply, offer for supply, manufacture, possession, control or export, of consumer goods, if they do not comply with applicable safety standards.
(10) Section 107 provides that a person must not in trade or commerce supply product related services if they do not comply with applicable safety standards.
(11) Sections 131 and 132 require persons who supply consumer goods or product related services in trade or commerce to report instances of death, serious injury or illness.
(1) Section 138 provides that a manufacturer of goods is liable to compensate an individual if the manufacturer supplies defective goods in trade or commerce and the individual suffers injury.
(2) Section 147 provides that a person who wishes to institute a defective goods action, but does not know the identity of the manufacturer, may request the supplier to provide details of the manufacturer or supplier. A supplier who does not comply with a request can be taken to be the manufacturer for the purpose of a defective goods liability action.
(3) Section 224 provides for certain pecuniary penalties. Such action can only be taken by a regulator: s 228. Accordingly, I agree with Mr Svager that Mr Svehla's claim for relief under s 224 should be struck out.
(4) Section 236 provides for an action for damages for a person who suffers loss or damage because of the conduct of another person that contravenes a provision in Chapter 2 (including ss 18 and 21) or 3 (including ss 29, 33, 54, 69, 70, 106, 107, 131, 138 and 147). Section 137C(1) of the CCA provides that a person is not entitled to recover an amount of loss or damage under s 236 where (a) the action would be based on the conduct contravening a provision of Part 2‑1 (including s 18) or 3‑1 (including ss 29 and 33) of the ACL; (b) the loss or damage is, or results from, death or personal injury; and (c) the death or personal injury does not result from smoking or other use of tobacco products. The claimed injury does not result from smoking or other use of tobacco products. Accordingly, an action to recover an amount of loss or damage under s 236 on the basis of a contravention of ss 18, 29 and 33 has no prospects of success and should be struck out.
(5) Section 237 provides for compensation orders to be made in favour of a person who has suffered, or is likely to suffer, loss or damage because another person has contravened provisions in Chapter 2, 3 or 4. As the Commonwealth submitted, s 137E(1) of the CCA provides that a court must not make an order under s 237 where (a) the action would be based on a contravention of a provision in Part 2-1 (including s 18) or 3-1 (including ss 29 and 33) of the ACL; (b) the loss or damage is, or results from, death or personal injury; and (c) the death or personal injury does not result from smoking or other use of tobacco products. The claimed injury does not result from smoking or other use of tobacco products. Accordingly, a claim for compensation under s 237 on the basis of a contravention of ss 18, 29 and 33 has no prospects of success and should be struck out.
(6) Section 246 provides that a court may make certain non-punitive orders on the application of a regulator. Such an action cannot be taken by Mr Svehla and, accordingly, I agree with Mr Svager that this claim for relief should be struck out.
(7) Section 259 provides that a consumer may take certain action under that section if a person supplies in trade or commerce goods to a consumer and a guarantee applies under certain provisions, including ss 54 and 55 of the ACL. Section 260 identifies circumstances when a failure will be a major failure. It is unclear from the pleadings how a claimed contravention of s 54 or s 55 would give rise to the damages that are sought by Mr Svehla. The action that can be taken under s 259 involves, depending on the nature of the failure to comply with the guarantee, requiring the supplier to remedy the failure; recovering reasonable costs incurred in having the failure remedied; rejecting the goods; or recovering compensation for any reduction in the value of the goods below the price paid or payable by the consumer for the goods. The pleadings do not make clear what relief is sought under this claim and, accordingly, the claim under s 259 (along with the claim under s 260) on the basis of a contravention of s 54 or s 55 should be struck out.
(8) Sections 271 and 272 deal with actions for damages against a manufacturer of goods. Subsection 271(1) provides that, if the guarantee under s 54 applies to a supply of goods to a consumer and the guarantee is not complied with, an affected person in relation to the goods may, by action against the manufacturer of the goods, recover damages from the manufacturer. Nothing is pleaded that would suggest that Mr Svager is a manufacturer for the purposes of ss 271 and 272. Accordingly, the claims under ss 271 and 272 should be struck out.
(1) Mr Svehla did not pay for the gas cylinder and accordingly (a) Mr Svehla did not "acquire" the cylinder; (b) he is not a "consumer"; and (c) Mr Svager did not "supply" the cylinder.
(2) The cylinder was not provided to Mr Svehla by Mr Svager "in trade or commerce" because (a) there was no anticipation of return favour or value to Mr Svager; and (b) there was no identifiable feature of commerciality to the interaction between Mr Svehla and Mr Svager.
(3) The cylinder was not a "consumer good" because it was not "intended to be used, or ... likely to be used, for personal, domestic or household use or consumption ..." (ACL s 2). Nor was there a "product related service" which is defined to mean a service for or related to conduct identified by reference to consumer goods (ACL s 2).
A person is taken to have acquired particular goods as a consumer if, and only if:
(a) the amount paid or payable for the goods ... did not exceed [$100,000 - refer to Competition and Consumer Regulations 2010 (Cth) reg 77A]; or
(b) the goods were of a kind ordinarily acquired for personal, domestic or household use or consumption.
FIRST RESPONDENT'S STRIKE OUT APPLICATION AND LEAVE TO REPLEAD
(1) the proceeding should be terminated at this early stage in the proceeding on the basis of the arguments put by Mr Svager in support of summary judgment; and
(2) the deficiencies in the intelligibility of the pleadings are incurable.
(1) The claim for relief for a contravention of s 33 of the ACL is a claim arising under the Commonwealth ACL.
(2) Depending on the pleaded facts, other ACL claims may arise under the ACL (NSW), the ACL (ACT) or the extended operation of the Commonwealth ACL if there is the requisite connection with the ACT. If it is the ACL (NSW), the claims will fall within the Court's accrued jurisdiction if they are non-severable from the s 33 claim; if there is a connection with the ACT, the claims will fall within the Court's jurisdiction conferred by either s 6(2)(a)(iii) of the CCA or s 9(3) of the Cross-Vesting Act (Cth) and s 4(1) of the Cross-Vesting Act (ACT). It is not necessary to finally determine those matters at this stage.
(3) Depending on how any common law claim is pleaded, there is some risk that such a claim will not fall within the Court's accrued jurisdiction if it is severable from the s 33 claim. However, that is a question that cannot be resolved at this stage in the proceeding.
I certify that the preceding one hundred and two (102) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Stellios.
Svehla
Svager [2026] FCA 185
Agar v Hyde (2000) 201 CLR 552; [2000] HCA 41
ARU17 v Minister for Immigration, Citizenship and Multicultural Affairs [2023] FCA 1275
AZC20 v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs (2023) 278 CLR 512; [2023] HCA 26
Batistatos v Roads and Traffic Authority (NSW) (2006) 226 CLR 256; [2006] HCA 27
Citta Hobart Pty Ltd v Cawthorn (2022) 276 CLR 216; [2022] HCA 16
Crimmins v Stevedoring Industry Finance Committee (1999) 200 CLR 1; [1999] HCA 59
Crosby v Kelly (2012) 203 FCR 451; [2012] FCAFC 96
DHI22 v Qatar Airways Group QCSC (No 1) [2025] FCAFC 91
Donoghue v Stevenson [1932] UKHL 100; [1932] AC 562
Dowling v Commonwealth Bank of Australia [2008] FCA 59
Ferdinands v South Australia (No 2) [2017] FCA 1436
Knowles v Commonwealth [2022] FCA 741
Kowalski v Mitsubishi Motors Australia [2010] FCAFC 73
Manolakis v Carter [2008] FCAFC 183
Minogue v Human Rights and Equal Opportunity Commission [1999] FCA 85; (1999) 84 FCR 438
Nyoni v Chee Koon Hee (No 4) [2013] FCA 948
Plaintiff M83A/219 v Morrison (No 2) [2020] FCA 1198
Polar Aviation Pty Ltd v Civil Aviation Safety Authority (2012) 203 FCR 325; [2012] FCAFC 97
Re Culleton (2017) 91 ALJR 302; [2017] HCA 3
Re Wakim; Ex parte McNally (1999) 198 CLR 511; [1999] HCA 27
Spencer v Commonwealth (2010) 241 CLR 118; [2010] HCA 28
(1999) 84 FCR 438
(2012) 203 FCR 325
(2000) 201 CLR 552
(2023) 278 CLR 512
(2006) 226 CLR 256
(2010) 241 CLR 118
(2012) 203 FCR 451
(2017) 91 ALJR 302
(2022) 276 CLR 216
(1999) 200 CLR 1
(1983) 154 CLR 87
(1999) 198 CLR 511