The power to punish for contempt
2 I found the contemnor guilty of four counts of contempt (charges 3, 5, 6 and 7) for breaching orders (the four breaches) that I had made with his consent on 11 November 2016 (the 11 November orders), and on two further counts of contempt (charges 8 and 9) committed because he had made public statements that were both intended and calculated to influence Rodric David, the second applicant, as a party, in the conduct of the principal proceedings and that exposed him to the risk of prejudgment of the issues or merits of those proceedings (the two interferences).
3 The nature of the two categories of contempt that I found is different in the sense that each of the four breaches involved personal disobedience to an order that directly bound the contemnor as a party to the proceedings to do, or refrain from doing, some act, while each of the two interferences involved acts or conduct that, as a matter of practical reality, had a tendency to interfere with the due administration of justice in these proceedings. However, the four breaches and the two interferences were all contempts of the Court because they interfered in the due administration of justice.
4 Our society is structured on the basis that the Courts of law must be accessible to all persons, rich or poor, weak or strong, popular or unpopular, and whose cases may or may not be considered by others or the public to be good or bad. It is essential that everyone knows that the Courts are independent, not only of government but also of other influences, and that the Courts are also seen to be entirely free from outside influences, including public pressure. It is also fundamental that persons must obey, and cannot be allowed to ignore, orders that the Courts make. The due administration of justice requires that everyone be able to access the Courts to hear and determine disputes, that all persons in our society accept that the orders made by the Courts reflect the application of the law by which all are governed and that those orders must be obeyed while they are in force.
5 It is a very serious matter where a person disobeys a Court order knowing the Court has made it. If that conduct went unpunished by the Courts, a fundamental aspect of our society would suffer. Other people would come to think that they also could disobey or flout orders that a Court had made. The rule of law would be seriously undermined were such a situation left unpunished. Justice could not be done satisfactorily if the ordinary respect that members of our society have for the authority of the Courts to resolve disputes, as a part of our system of government, came to be undermined by persons openly disobeying Court orders or bringing public pressure on a litigant in proceedings that sought to influence the litigant or condemn him, her or it in the public eye for pursuing or defending the litigation. Gibbs CJ, Mason, Wilson and Deane JJ said in Australasian Meat Industry Employees' Union v Mudginberri Station Pty Ltd (1986) 161 CLR 98 at 107 that:
… the underlying rationale of every exercise of the contempt power … [is] that it is necessary to uphold and protect the effective administration of justice. Although the primary purpose in committing a defendant who disobeys an injunction is to enforce the injunction for the benefit of the plaintiff, another purpose is to protect the effective administration of justice by demonstrating that the court's orders will be enforced. As the authors of Borrie and Lowe's Law of Contempt, 2nd ed (1983) say, at p. 3:
If a court lacked the means to enforce its orders, if its orders could be disobeyed with impunity, not only would individual litigants suffer, the whole administration of justice would be brought into disrepute. (emphasis added)
6 These considerations underpin the inherent or implied power of every court, superior or inferior, to protect the due administration of justice in proceedings before it: cf Construction, Forestry, Mining and Energy Union v Boral Resources (Vic) Pty Ltd (2015) 256 CLR 375 at 388 [41] per French CJ, Kiefel, Bell, Gageler and Keane JJ; see too Kazal [2016] FCA 1598 at [105].
7 There is no maximum penalty for contempt of a superior court of record. That is because the Court must be able to determine and fashion a penalty that operates to impose an appropriate punishment on the contemnor, to make its denunciation of the contempt, as well as to deter others from committing similar or other contempts. As Besanko J, with whom Siopis J agreed, said in Vaysman v Deckers Outdoor Corporation Inc (2014) 222 FCR 387 at 426 [137], it is difficult to identify a range of appropriate sentences for contempt or a standard or prevailing sentence for a serious contempt. That is due to the many and varied circumstances that can give rise to the particular contempt and the factors to which the Court can have regard in assessing what sentence is appropriate in the factual scenario at the time of sentencing.
8 In cases of a contemnor's breach of an order it is appropriate to consider factors including those that Spender J identified in Australian Competition and Consumer Commission v World Netsafe Pty Ltd (2003) 133 FCR 279 at 283 [16]-[17], which Besanko J cited with approval in Vaysman 222 FCR at 426 [139], namely:
the relative seriousness of the contempt, which is, or may be, determined by the extent to which the contemnor appreciated that a contempt was being committed (cf: the position in a contempt by publication that may have been very serious, yet the contemnor may have been ignorant of the existence of the proceedings);
whether the contemnor subjectively intended to disobey the order;
the importance of bringing home to the contemnor the seriousness of the contempt;
whether the contemnor has offered any apology or explanation for his or her conduct;
the extent and degree to which the contemnor has recognised the nature of his or her offending conduct;
any attempt by the contemnor to comply with the order in question and, where relevant, the degree to which he, she or it did comply with the order;
the practical consequence of a contemnor's failure to comply with an order and the effect of that non-compliance upon the effective administration of justice.
9 Of course, an order for imprisonment is always the last sentencing option that a Court should impose. Imprisonment will only be appropriate where no other punishment is appropriate. The fact that, as here, the contemnor is an undischarged bankrupt does not preclude the Court considering, and if appropriate, imposing, a fine or fines. As Gray J noted in Vaysman v Deckers Outdoor Corporation Inc (2011) 276 ALR 596 at 619 [54], the status of bankruptcy does not relieve the bankrupt from the obligation to pay a fine, or to be amenable to serving a sentence of imprisonment in default of payment. The penal effect of, and the legal obligation to pay, the fine continues if it is unpaid after any discharge of the bankruptcy.
10 However, as Gibbs CJ, Mason, Wilson and Brennan JJ held in Gallagher v Durack (1983) 152 CLR 238 at 245, if:
the court comes to the conclusion that a person convicted of contempt of court will not personally suffer or be deterred by a fine, that is a matter which it may consider in imposing sentence.
11 Although contempt of Court is not a federal offence for the purposes of the Crimes Act 1914 (Cth), some of the matters identified in s 16A(2) are relevant by analogy in sentencing a contemnor, including:
the nature and circumstances of the contempt;
any relevant course of conduct, if the particular count forms part of a course of conduct consisting of the same or similar conduct;
the impact or effect of the contempt, including any loss, damage or other harm caused by it;
any contrition that the contemnor has shown;
any co-operation that the contemnor has shown in the investigation of his, her or its offending;
the deterrent effect that any sentence may have on, first, the contemnor (specific deterrence) and, secondly, other persons (general deterrence);
the need to ensure that the contemnor is adequately punished for the offence;
the contemnor's character, age, antecedents, means, physical and mental condition;
the prospect of the contemnor's rehabilitation; and
the probable effect of any sentence on the contemnor's family and dependants.
12 Where a Court sentences an offender on multiple counts, the Court must fix an appropriate sentence for each offence and then consider questions of cumulation or concurrence, as well as questions of totality: Pearce v The Queen (1998) 194 CLR 610 at 623-624 [44]-[46] per McHugh, Hayne and Callinan JJ.
13 Gibbs CJ, Mason, Wilson and Deane JJ explained in Mudginberri 161 CLR at 115 the nature of the Court's power to deal with and punish contempt of Court as follows:
These are considerable powers, resort to which imposes a heavy responsibility upon a court confronted with a determined challenge to its authority. The propriety of their exercise cannot be measured solely by reference to the established procedures attending the prosecution of ordinary breaches of the law. Contempt of court is a distinctive offence attracting remedies which are sui generis: Morris v Crown Office [[1970] 2 QB 114 at 129]. It is required of the chosen remedy that it be effective, no more but no less. For, if it is not effective, serious and lasting damage to the fabric of the law may result. (emphasis added)
14 Their Honours said that the armoury of remedies available to a superior court is designed to serve an important public interest (161 CLR at 115). Importantly, they held that a contempt will be classified criminal where wilful disobedience to an order is accompanied by public defiance (at 108). Moreover, their Honours held, there is much for the view that all contempts should be punished as if they were quasi-criminal in character. They noted the distinction between casual, accidental and unintentional disobedience on the one hand, and wilful disobedience on the other (at 109).