[2023] VSCA 197
General information, not legal advice.
Court of Appeal (Vic)
2023-08-25
Beach JA, Leish JA, Kennedy JA
Original judgment source is linked above.
(a) that his son ('AAA') and a friend ('BBB') were abused by Pell sometime between July and December 1996; > > (b) that as a result of the abuse AAA's behaviour deteriorated. He commenced using illicit drugs at the age of 14 and used drugs consistently until his death; > > (c) AAA died on 8 April 2014 from a heroin overdose caused by the psychological impact of the abuse; > > (d) RWQ was informed of the abuse of AAA by a member of the SANO Task Force on 1 July 2015; > > (e) as a result of learning about the abuse of his son, RWQ suffered nervous shock for which he makes a claim at common law and pursuant to Part XI of the ; > > (f) the applicant owed RWQ a duty to take care not to cause RWQ pure mental harm; > > (g) the applicant breached the duty to RWQ which was a cause of RWQ's injury; > > (h) further and in the alternative, the applicant was vicariously liable, or directly liable, for the abuse of AAA and the injury to RWQ.
(a) On the proper construction of s 4(2) of the Act, does the Act apply to RWQ's claims against the applicant? > > (b) On the proper construction of s 7 of the Act, would a proper defendant nominated by the applicant incur any liability arising from RWQ's claims against the applicant?
1. The judge erred in concluding that:
(a) On the proper construction of s 4(2) of the Act, the Act applies to RWQ's claims against the applicant; and
(b) On the proper construction of s 7 of the Act, a proper defendant nominated by the applicant would incur any liability arising from RWQ's claims against the applicant.
- The judge ought to have concluded that, on the proper construction of ss 4 and 7, the Act does not apply to RWQ's claims against the applicant.
1 Purpose
The main purpose of this Act is to provide for child abuse plaintiffs to sue an organisational defendant in respect of unincorporated non-government organisations which use trusts to conduct their activities.
(a) an act or omission in relation to a person when the person is a minor that is physical abuse or sexual abuse; and
(b) psychological abuse (if any) that arises out of that act or omission -
and includes alleged child abuse.
(1) This Act applies to any proceeding for a claim founded on or arising from child abuse.
(2) This Act applies to an NGO[5] if -
(a) a plaintiff commences or wishes to commence a claim against an NGO founded on or arising from child abuse; and
(b) but for being unincorporated, the NGO would be capable of being sued and found liable for a claim founded on or arising from child abuse; and
- (c) the NGO controls one or more associated trusts.
(3) This Act applies to a claim founded on or arising from child abuse whether the child abuse occurred or occurs before, on or after the commencement of this section.
7 Nomination of proper defendant
(1) An NGO to which this Act applies, in relation to any claim founded on or arising from child abuse, with the consent of the nominee, may nominate an entity that is capable of being sued -
(a) to act as a proper defendant to the claim on behalf of the NGO; and
(b) to incur any liability arising from the claim on behalf of the NGO.
(2) If an NGO nominates a proper defendant under subsection (1), that entity -
(a) is taken to be the defendant in the claim on behalf of the NGO for all purposes; and
(b) incurs any liability arising from that claim on behalf of the NGO as if the NGO had been incorporated and capable of being sued and found liable for child abuse.
(3) Unless the court otherwise orders, a nomination of a proper defendant may occur at any time within 120 days after the commencement of the proceeding for the claim against the NGO.
(4) A court may substantively determine a claim in a proceeding founded on or arising from child abuse for which there is a proper defendant under this section as if the NGO itself were incorporated and capable of being sued and found liable for child abuse in respect of the claim.
(5) The nomination of a proper defendant under this section does not relieve an NGO from any obligations it may have in relation to the conduct of the proceeding, including any interlocutory matters, and for that purpose, the NGO is taken to be incorporated and capable of being sued and found liable for child abuse in respect of the claim.
8 Associated trust to be proper defendant
(1) This section applies to a claim if -
(a) an NGO fails to nominate a proper defendant under section 7 within 120 days from the commencement of the proceeding against the NGO; or
(b) the proper defendant nominated by the NGO is not an entity capable of being sued or does not have sufficient assets or property to meet any judgment or order that may arise in or from the proceeding for the claim.
(2) The plaintiff in a proceeding for a claim to which this section applies may apply to the court for an order that the claim is to proceed against the trustees of an associated trust of an NGO on behalf of the NGO as a proper defendant.
(3) For the purpose of an application under subsection (2), the NGO bears the onus of identifying any associated trust.
(4) On an application under subsection (2), the court may make an order that the claim is to proceed against the trustees of an associated trust of the NGO on behalf of that NGO as a proper defendant.
(5) If the court makes an order under subsection (4), any trustee of the associated trust -
(a) is taken to be the defendant to the claim on behalf of the NGO for all purposes; and
(b) incurs any liability arising from the claim on behalf of the NGO as if the NGO had been incorporated and capable of being sued and found liable for child abuse.
(6) More than one trustee of an associated trust, and more than one associated trust, may be a proper defendant and liability may attach to more than one such trustee or trust.
(7) A court may make any further order under this section that the claim may proceed, or any judgment obtained on that claim be enforced, against the trustees of one or more other associated trusts of an NGO.
(8) A court may substantively determine a claim in a proceeding founded on or arising from child abuse for which there is a proper defendant under this section as if the NGO itself were incorporated and capable of being sued and found liable for child abuse in respect of the claim.
(9) The appointment of a proper defendant under this section does not relieve an NGO from any obligations it may have in relation to the conduct of the proceeding, including any interlocutory matters, and for that purpose, the NGO is taken to be incorporated and capable of being sued and found liable for child abuse in respect of the claim.
There is no material distinction between the words 'founded on' and the words 'brought in respect of'.[8] The words 'founded on' are words of wide import.[9] A claim 'arising from' child abuse requires a less proximal causal relationship between the claim and the child abuse than is required for a claim founded on child abuse.[10] The use of 'or' in the phrase 'founded on or arising from' manifests a legislative intention to extend the application of the Act beyond claims against NGOs founded on child abuse. Absent the phrasing 'arising from' it is strongly arguable that a claim by a plaintiff for damages for nervous shock consequent upon the plaintiff being told that their child had been sexually abused, would be a claim founded on child abuse. However, the use of the phrase 'arising from' puts the matter beyond doubt. A claim by a plaintiff for damages for nervous shock consequent upon the plaintiff being told that their child had been sexually abused is plainly a claim arising from child abuse.[11]
(a) the Betrayal of Trust Report did not discuss 'secondary victims' (ie persons other than the children alleged to have been abused) in the context of civil law reform; > > (b) the Royal Commission Report did not make any recommendation for civil law reform in respect of secondary victims; > > (c) the second reading speech in respect of the Legal Identity of Defendants (Organisational Child Abuse) Bill 2018 (the 'Bill') supports a finding that the reference to 'child abuse plaintiffs' in the Act is a reference to survivors claiming compensation for child abuse; > > (d) the Explanatory Memorandum does not refer to the legislation having application to claims brought by secondary victims.[16]
The claims brought by Mr and Mrs Foster arising from the alleged sexual abuse of their children were not claims brought as primary victims of institutional child abuse. As with RWQ's claim, the claims were founded on or arising from the alleged abuse of their children. Nevertheless, Mr and Mrs Foster are referred to in the second reading speech as 'survivors'. It is inexplicable and improbable[18] that in circumstances where the Attorney-General described Mr and Mrs Foster as survivors and acknowledged their advocacy as having played a significant part in the Bill coming before Parliament, that the Parliament intended to enact legislation which would still have allowed the applicant to rely on the Ellis defence in respect of claims brought by Mr and Mrs Foster arising out of the alleged sexual abuse of their daughters. Nevertheless, if the first defendant's submissions are accepted, this is the effect of the Act.[19]
The mischief which the Act was intended to remedy is not limited to the capacity of an NGO such as the first defendant to rely upon the Ellis defence in respect of a claim brought by a primary victim of institutional child abuse. The text of the Act, particularly the repeated use of the words 'a claim founded on or arising from child abuse' points to the relevant mischief being the capacity of an NGO to rely on the Ellis defence in respect of a claim founded on or arising from child abuse, irrespective of whether the claim is brought by a primary or secondary victim. The text of a statute is important as it contains the words being construed.[31] The text of s 4(2) is the clearest indicator of the mischief which the Act is intended to remedy.[32]
The plain meaning of the words in s 4(2) is that the Act applies to an NGO if a plaintiff commences a claim against an NGO founded on or arising from child abuse. This includes a claim for nervous shock by a plaintiff whose claim is founded on or arises from child abuse of the plaintiff's child. The contextual matters relied upon by the first defendant do not warrant a departure from the plain meaning of s 4(2). To construe 'plaintiff' in s 4(2)(a) as being limited to a plaintiff who is a primary victim of institutional child abuse forecloses the inquiry which the text of s 4(2) demands, namely whether the plaintiff's claim against an NGO is founded on or arises from child abuse.[33]
subclause (1) provides that the Bill applies to any proceeding for a claim founded on or arising from child abuse. This means that any claim founded on or arising from child abuse can be brought in reliance on the provisions of the Bill, including negligence, vicarious liability or direct liability.
[1] Pell was the second defendant to the proceeding, but filed a notice of intention not to respond or contest this application on 3 November 2022.
[2] Trustees of the Roman Catholic Church v Ellis (2007) 70 NSWLR 565; [2007] NSWCA 117 ('Ellis').
[3] Pursuant to r 47.04 of the Supreme Court (General Civil Procedure) Rules 2015.
[4] The SANO Task Force was established by Victoria Police to investigate historic and new allegations of child sexual abuse.
[5] For the purposes of the Act, an NGO is a non‑government organisation that is an unincorporated association or body. An NGO does not need to have a written constitution or fixed membership, or any other prescribed attribute: ss 3, 5.
[6] RWQ v The Catholic Archdiocese of Melbourne [2022] VSC 483, [9]-[10] ('Reasons').
[8] Lew Footwear Holdings Pty Ltd v Madden [2014] VSC 320, [220] (Elliott J).
[9] Brighton Automotive Holdings Pty Ltd v Honda Australia Pty Ltd (2021) 65 VR 146, 159 [32], 160 [37] (Button J); [2021] VSC 757.
[10] Repatriation Commission v Law [1980] FCA 92; (1980) 47 FLR 57, 68 (Bowen CJ, Brennan and Lockhart JJ); [1980] FCA 112; Government Insurance Office of New South Wales v RG Green & Lloyd Pty Ltd [1966] HCA 6; (1966) 114 CLR 437, 443 (Barwick CJ, McTiernan and Taylor JJ agreeing at 444), 445 (Menzies J), 447 (Windeyer J); [1966] HCA 6 ('Green').
[11] Reasons, [12] (citations in original).
[12] Ibid [13], citing Commonwealth v Baume [1905] HCA 11; (1905) 2 CLR 405, 414 (Griffith CJ); [1905] HCA 11 ('Baume'); Chu Kheng Lim v Minister for Immigration, Local Government and Ethnic Affairs (1992) 176 CLR 1, 12-13 (Mason CJ); [1992] HCA 64 ('Chu Kheng Lim').
[15] This included: Royal Commission into Institutional Responses to Child Sexual Abuse, Redress and Civil Litigation (Final Report, September 2015) ('Royal Commission Report'); Parliament of Victoria Family and Community Development Committee, Betrayal of Trust, Inquiry into the Handling of Child Abuse by Religious and Other Non-Government Organisations (Report, November 2013) ('Betrayal of Trust Report'); Victoria, Parliamentary Debates, Legislative Assembly, 7 March 2018 (Martin Pakula, Attorney-General) 594-7 ('second reading speech'); Explanatory Memorandum, Legal Identity of Defendants (Organisational Child Abuse) Bill 2018 ('Explanatory Memorandum').
[18] Cf R v A2 [2019] HCA 35; (2019) 269 CLR 507, 524 [46] (Kiefel CJ and Keane J); [2019] HCA 35.
[21] Ibid [23], citing Stingel v Clark (2006) 226 CLR 442, 458 [26] (Gleeson CJ, Callinan, Heydon and Crennan JJ), 485 [132] (Hayne J agreeing) ('Stingel'); [2006] HCA 37; Firebird Global Master Fund II Ltd v Nauru [2015] HCA 43; (2015) 258 CLR 31, 56 [69] (French CJ and Kiefel J); [2015] HCA 43; Secretary to the Department of Justice and Regulation v Century 21 Australia Pty Ltd (2017) 53 VR 234, 248-9 [48] (Whelan, Beach and Ferguson JJA); [2017] VSCA 205.
[23] Ibid 458 [26] (Gleeson CJ, Callinan, Heydon and Crennan JJ).
[24] Reasons, [29] (emphasis in original).
[27] Tabcorp Holdings Ltd v Victoria [2016] HCA 4; (2016) 90 ALJR 376, 387 [65] (The Court); [2016] HCA 4 ('Tabcorp').
[31] R v A2 [2019] HCA 35; (2019) 269 CLR 507, 522 [36] (Kiefel CJ and Keane J); [2019] HCA 35.
[34] Cases cited included Australian Education Union v General Manager of Fair Work Australia [2012] HCA 19; (2012) 246 CLR 117, 134-5 [30]-[31] (French CJ, Crennan and Kiefel JJ); [2012] HCA 19 ('Australian Education Union'); Tabcorp [2016] HCA 4; (2016) 90 ALJR 376, 387 [68] (The Court); [2016] HCA 4; Clissold v Perry [1904] HCA 12; (1904) 1 CLR 363, 373 (Griffith CJ, Barton and O'Connor JJ agreeing at 378); [1904] HCA 12.
[35] She particularly relied upon pt 2 div 2.
[37] Visser v The King [2023] VSCA 10, [100] (Emerton P, Priest, McLeish, T Forrest and Kennedy JJA), citing R v A2 [2019] HCA 35; (2019) 269 CLR 507, 520-2 [32]-[37] (Kiefel CJ and Keane J), 545 [124] (Bell and Gageler JJ); [2019] HCA 35.
[38] Australian Education Union [2012] HCA 19; (2012) 246 CLR 117, 134-5 [30]; [2012] HCA 19.
[40] Ibid 310-11 [313]-[314] (Gageler and Keane JJ); [2013] HCA 39. See also North Australian Aboriginal Justice Agency v Northern Territory [2015] HCA 41; (2015) 256 CLR 569, 605-6 [81] (Gageler J); [2015] HCA 41; Roads and Maritime Services v Desane Properties Pty Ltd [2018] NSWCA 196; [2018] 98 NSWLR 820, 856 [193] (Bathurst CJ, Ward and Payne JJA); [2018] NSWCA 196; BMW Australia Ltd v Brewster [2019] NSWCA 35; [2019] 366 ALR 171, 185 [61] (Meagher, Ward and Leeming JJA); [2019] NSWCA 35.
[41] Mann v Paterson Constructions Pty Ltd [2019] HCA 32; (2019) 267 CLR 560, 623 [159] (Nettle, Gordon and Edelman JJ); [2019] HCA 32.
[42] Gifford v Strang Patrick Stevedoring Pty Ltd (2003) 214 CLR 269, 284 [36] (McHugh J); [2003] HCA 33, cited in Doughty v Martino Developments Pty Ltd [2010] VSCA 121; (2010) 27 VR 499, 507 [17] (Nettle JA, Mandie JA agreeing at 511 [35], Emerton AJA agreeing at 511 [37]); [2010] VSCA 121.
[43] RBK v Montague (2022) 67 VR 545, 552-7 [28]-[39] (Beach, Niall and Macaulay JJA); [2022] VSCA 183 and cases cited therein: Fawcett v BHP By‑Products Pty Ltd (1960) 104 CLR 80; [1960] HCA 59; Green (1966) 114 CLR 437; [1966] HCA 6; Dickinson v Motor Vehicle Insurance Trust (1987) 163 CLR 500; [1987] HCA 49; Lamont v Motor Accidents Board [1983] VicRp 9; [1983] 1 VR 88; Transport Accident Commission v Hoffman [1989] VicRp 18; [1989] VR 197; May v Transport Accident Commission [1989] VicRp 86; [1989] VR 981; State Insurance Office v Jura Concrete Pumping [1990] VicRp 30; [1990] VR 331. See also Walsh v Department of Human Services [2014] VSCA 244; (2014) 44 VR 244, 276-7 [118]-[119] (Tate JA, Nettle JA agreeing at 245 [1], Hansen JA agreeing at 246 [10]); [2014] VSCA 244.
[44] The expression is also found in ss 7(2)(b), 7(5), 8(5)(b) and 8(9).
[45] Tabcorp [2016] HCA 4; (2016) 90 ALJR 376, 387 [65] (The Court); [2016] HCA 4.
[46] Baume [1905] HCA 11; (1905) 2 CLR 405, 414 (Griffith CJ); [1905] HCA 11; Chu Kheng Lim (1992) 176 CLR 1, 12-13 (Mason CJ); [1992] HCA 64.
[48] Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue (Northern Territory) [2009] HCA 41; (2009) 239 CLR 27, 47 [47] (Hayne, Heydon, Crennan and Kiefel JJ); [2009] HCA 41.
The Catholic Archdiocese of Melbourne
RWQ
STATUTORY INTERPRETATION - Plaintiff's claim for nervous shock against archdiocese arising from alleged sexual assault of plaintiff's child - Plaintiff not a 'primary victim' of child abuse - Whether Legal Identity of Defendants (Organisational Child Abuse) Act 2018 applies to plaintiff's claims - Meaning of 'founded on or arising from child abuse' - Principle of legality - Legal Identity of Defendants (Organisational Child Abuse) Act 2018, ss 1, 3, 4, 7, 8 - Lee v New South Wales Crime Commission [2013] HCA 39; (2013) 251 CLR 196; Stingel v Clark (2006) 226 CLR 442 applied - Leave to appeal refused.
(2013) 251 CLR 196
(2006) 226 CLR 442
(2007) 70 NSWLR 565
(2021) 65 VR 146
(1980) 47 FLR 57
(1966) 114 CLR 437
(1905) 2 CLR 405
(1992) 176 CLR 1
(2019) 269 CLR 507
(2015) 258 CLR 31
(2017) 53 VR 234
(2016) 90 ALJR 376
(2012) 246 CLR 117
(1904) 1 CLR 363
(2015) 256 CLR 569
(2019) 267 CLR 560
(2003) 214 CLR 269
(2010) 27 VR 499
(2022) 67 VR 545
(1960) 104 CLR 80
(1987) 163 CLR 500
(2014) 44 VR 244
(2009) 239 CLR 27