decision of the federal magistrate
7 The respondent objects to the competency of the appeal on the basis that the orders and judgment of 15 March 2004 are interlocutory and the appellant has not been granted leave to appeal against the orders and judgment pursuant to s 24(1A) of the Federal Court of Australia Act 1976 (Cth) ('the Federal Court Act'). Section 24(1A) provides that 'an appeal shall not be brought from an interlocutory judgment unless the Court or a Judge gives leave to appeal'. Section 24(1)(d) of the Federal Court Act gives the Court jurisdiction to hear and determine appeals from judgments of the Federal Magistrates Court. Section 24 has the effect that, if the judgment sought to be appealed from is interlocutory, an appeal shall not be brought unless a Judge gives leave to appeal. Pursuant to s 25(1A) of the Federal Court Act, the Chief Justice has directed that the appeal from the decision of Driver FM be heard before a single Judge. Section 25(2) provides that applications for leave to appeal and applications for extension of time in which to institute an appeal may be heard by a single Judge. Accordingly, it is clear that I have power to deal with the appeal, an application for leave to appeal and the respondent's motion.
8 Order 52 Rule 5 of the Federal Court Rules provides that an application for leave to appeal should have been filed within 21 days after the decision of the Federal Magistrate. Although the applicant has not filed an application for leave to appeal, the respondent consents to the Court treating this hearing as such an application. The difficulties faced by courts in determining the distinction between final and interlocutory judgments were discussed by French J in Johnson Tiles Pty Ltd v Esso Australia Ltd (2000) 104 FCR 564 at [42]. His Honour referred to the policy behind s 24(1A):
'The time and resources of the Court and the parties should not lightly be taken up with appeals about decisions in connection with proceedings which do not finally determine the rights of the parties.'
9 The general principle was also stated clearly by the High Court in Adam P Brown Male Fashions Pty Ltd v Philip Morris Inc (1981) 148 CLR 170 at 177: 'appellate courts exercise particular caution in reviewing decisions pertaining to practice and procedure'.
10 Whether a judgment is final or interlocutory depends on whether the judgment finally determines the rights of the parties to the proceedings so that the court must have regard to the legal rather than the practical effect of the judgment; see Brouwer v Titan Corporation Ltd (1977) 73 FCR 241 at 242; Carr v Finance Corporation of Australia Ltd (No 1) (1981) 147 CLR 246 at 248; Minogue v Williams [2000] FCA 125 at [18] and In the matter of an appeal by Gaye Alexandra Mary Luck [2003] HCA 70 at [9] per McHugh ACJ, Gummow and Heydon JJ:
'An order is an interlocutory order, therefore, when it stays or dismisses an action or refuses leave to commence or proceed with an action because the action is frivolous, vexatious, an abuse of the process of the court or does not disclose a reasonable cause of action.'
11 It was held, however, in Ex parte Bucknell (1936) 56 CLR 221 that where the practical operation of the judgment is the final determination of the rights of the parties, although interlocutory in legal effect, a prima facie case can be found to exist for granting leave to appeal. In Little v State of Victoria [1998] 4 VR 596 at 601, Callaway JA discussed the reasons for granting leave as follows:
'if a proceeding is dismissed because it is frivolous or vexatious or because no reasonable cause of action is disclosed, it is highly desirable that there be no appeal except by leave. Leave will usually be granted in such cases if there is any doubt about the correctness of the decision below, but truly hopeless appeals should be prevented, to the advantage of the parties and other litigants waiting to be heard.'
12 The Full Court of the Federal Court in Decor Corporation Pty Ltd v Dart Industries Inc (1991) 33 FCR 397 adopted, as a general test for application for leave to appeal an interlocutory decision, the principles in Niemann v Electronic Industries Ltd [1978] VR 431:
(1) 'whether in all the circumstances, the decision is attended with sufficient doubt to warrant its being reconsidered by the Full Court'; and