[2024] VSCA 73
General information, not legal advice.
Court of Appeal (Vic)
2024-04-23
Lyons JA, Beach JA, MacAulay JA
Original judgment source is linked above.
(1) Paragraph 1 of the order of Associate Justice Irving dated 21 March 2023 be set aside.
(2) Pursuant to s 27QE(1)(a) of the Limitation of Actions Act 1958:
(a) the deed of release between the respondent, the applicant and Brother Vincent Duggan dated 14 December 2012 be set aside only in part, such that the respondent be permitted to bring his claim for damages as framed at the time of that deed, that is a claim for loss and damage excluding any economic loss; and
(b) the deed of release between the respondent, the applicant and Brother Peter Clinch dated 9 December 2015 be set aside only in part, such that the respondent be permitted to bring his claim for damages as framed at the time of that deed, that is a claim for loss and damage excluding any economic loss.
(1) the recitation of the facts, the relevant statutory provisions and the reasons of the associate judge;[108]
(2) the analysis as to the applicable standard of appellate review;[109]
(4) the ultimate outcome of the application and the appeal and the orders proposed by the majority.
While these reforms have removed significant barriers to civil litigation for survivors of institutional child abuse, they do not deal with the unjust product of previous barriers, which led to survivors accepting inadequate settlements and releasing institutions from future liability.[112]
It is in the court's discretion to determine what is just and reasonable according to the circumstances of each case, allowing the court to apply broad principles and take account of any relevant factors. This may include, for example, the relative strengths of the parties' bargaining positions, the conduct of the parties and the amount of the settlement.[114]
In determining what is just and reasonable a court can take into account a number of considerations, informed by the Royal Commission ... Where survivors faced significant disadvantage in pursuing compensation due to legal barriers such as the statute of limitations, the Ellis defence, or the deficiency of the law regarding the duty of care of organisations, settlements entered into should be set aside in the interests of justice, to allow victims to obtain compensation which is deemed adequate by today's standards.
It is not necessary that the existence of the limitation period be the predominant reason as to why the agreement was entered into. There may be a number of reasons that a plaintiff entered into such an agreement, including but not limited to unequal bargaining power, barriers to identifying a proper defendant, feelings of guilt and shame compounded by the burden of giving evidence and being subject to cross-examination, or the behaviour of the relevant institution.[115]
(1) there was no direct evidence from DZY to the effect that he decided not to pursue any economic loss claim due to the Ellis defence or the limitations period; rather, the evidence was that he did not include the economic loss claim due to concerns about repayment of Centrelink benefits;[120]
(2) notwithstanding there was general evidence that DZY was affected by the consumption of alcohol and anxiety at the settlement conference in 2012 and later in 2015:
(a) at all relevant times DZY was legally represented (including at times by counsel) and his legal advisors provided advice in relation to the deeds;[121]
(b) DZY was not rushed to sign either of the deeds;[122]
(c) DZY's legal advisers certified that DZY appeared to understand the purport and effect of each deed;[123] and
(d) DZY's statement that he had 'no choice' but to settle was not related to any conduct of the Christian Brothers or his decision not to pursue an economic loss claim: if anything, it appears to relate to his acceptance of the settlement sum for his general damages claim.[124]
[1] To ensure that there is no possibility of identification, this judgment has been anonymised by the adoption of a pseudonym in place of the name of the respondent.
[2] A judge of the trial division ordered that hearing and determination of the application be referred to the associate judge pursuant to r 77.05 of the Supreme Court (General Civil Procedure) Rules 2015.
[3] DZY (a pseudonym) v Trustees of the Christian Brothers [2023] VSC 124 ('Reasons').
[4] Limitation of Actions Act 1958, ss 5, 23 (the 'Act'). That period had long expired for DZY by 2012.
[6] (2007) 70 NSWLR 565; [2007] NSWCA 117 ('Ellis').
[7] The Act, s 27P, inserted by the Limitation of Actions Amendment (Child Abuse) Act 2015.
[10] (1936) 55 CLR 499, 504-505 (Dixon, Evatt and McTiernan JJ); [1936] HCA 40 ('House').
[11] [2023] HCA 32 ('GLJ').
[12] [1979] HCA 9; (1979) 142 CLR 531, 551-2 (Gibbs ACJ, Jacobs and Murphy JJ); [1979] HCA 9.
[18] Ibid [26]-[27]. See also Reasons, [126].
[20] Ibid [17], [30]. See also Reasons, [126].
[25] Ibid. See also Reasons, [118(e)], [126].
[52] Ibid [87]. See also Reasons, [88].
[64] Warren v Coombes [1979] HCA 9; (1979) 142 CLR 531, 551 (Gibbs ACJ, Jacobs and Murphy JJ); [1979] HCA 9.
[66] Ibid 127-8, [27] (Gleeson CJ, Gummow and Kirby JJ).
[67] House (1936) 55 CLR 499, 504-505 (Dixon, Evatt and McTiernan JJ); [1936] HCA 40.
[68] GLJ [2023] HCA 32; (2023) 97 ALJR 857, 865 [15] (Kiefel CJ, Gageler and Jagot JJ); [2023] HCA 32.
[69] Ibid 866 [16] (Kiefel CJ, Gageler and Jagot JJ).
[70] Ibid 866 [17] (Kiefel CJ, Gageler and Jagot JJ).
[71] Ibid 866-7 [19]-[20] (Kiefel CJ, Gageler and Jagot JJ).
[72] Ibid 867 [20] (Kiefel CJ, Gageler and Jagot JJ).
[73] Ibid 867-8 [22] (Kiefel CJ, Gageler and Jagot JJ).
[75] Ibid 868 [23] (Kiefel CJ, Gageler and Jagot JJ).
[77] [2020] VSCA 328; (2020) 62 VR 234, 262-3 [98] (Beach, Kaye and Osborn JJA); [2020] VSCA 328 ('WCB').
[78] [2018] VSCA 248, [49]-[51] (Beach, Kaye and Niall JJA).
[79] Referring to Fox v Percy (2003) 214 CLR 118; [2003] HCA 22.
[80] [2018] HCA 30; (2018) 264 CLR 541, 563 [49] (Gageler J); [2018] HCA 30.
[81] See, eg, Hunt v Holcombe [2018] VSCA 248.
[84] Project Blue Sky Inc v Australian Broadcasting Commission [1998] HCA 35; (1998) 194 CLR 355, 381-2 [69]-[70] (McHugh, Gummow, Kirby and Hayne JJ); [1998] HCA 28; Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue [2009] HCA 41; (2009) 239 CLR 27, 46-7 [47] (Hayne, Heydon, Crennan and Kiefel JJ); [2009] HCA 41; Federal Commissioner of Taxation v Consolidated Media Holdings Ltd [2012] HCA 55; (2012) 250 CLR 503, 519 [39] (French CJ, Hayne, Crennan, Bell and Gageler JJ); [2012] HCA 55; Interpretation of Legislation Act 1984 (Vic) s 35(a).
[86] Examples include the power to set aside judgments when obtained in default, when summary judgment is obtained in the absence of the affected party, when a judgment or order is made as the result of a mistake or error, or when a judgment is so irregular as to be a nullity: see, respectively, Supreme Court (General Civil Procedure) Rules 2015, rr 21.07, 22.23, 36.07 and LexisNexis Australia, Civil Procedure Victoria, [36.07.50].
[87] WCB [2020] VSCA 328; (2020) 62 VR 234, 270 [121] (Beach, Kaye and Osborn JJA); [2020] VSCA 328.
[88] Ibid 266 [112] (Beach, Kaye and Osborn JJA).
[91] WCB [2020] VSCA 328; (2020) 62 VR 234, 2678 [115] (Beach, Kaye and Osborn JJA). See also 266-7 [112]-[113] (Beach, Kaye and Osborn JJA); [2020] VSCA 328.
[92] Ibid 268-9 [116] (Beach, Kaye and Osborn JJA).
[93] Ibid 271 [124] (Beach, Kaye and Osborn JJA).
[94] Victoria, Parliamentary Debates, Legislative Assembly, 15 August 2019, 2695 (Luke Donnellan, Minister for Child Protection and Minister for Disability, Aging and Carers) ('Second Reading Speech').
[95] See Explanatory Memorandum, Children Legislation Amendment Bill 2019, 17; Second Reading Speech, 2695-6.
[97] Relying upon Masters Home Improvement Australia Pty Ltd v North East Solution Pty Ltd [2017] VSCA 88; (2017) 372 ALR 440, 466-7 [101]-[102] (Santamaria, Ferguson and Kaye JJA); [2017] VSCA 88 ('Masters Home Improvement').
[98] DZY had first addressed an argument which he presumed the Christian Brothers were making. That argument was that, on a proper construction of s 27QE, the only factors relevant to whether a court could be satisfied it was just and reasonable to set aside a settlement were positive findings that the limitations defence and/or Ellis defence had an impact on the decision to settle the claim. The Christian Brothers disavowed such an argument so no further submissions were advanced about it.
[104] At paragraph 28 of his affidavit affirmed 9 December 2022, DZY referred to a recollection from the 21 November 2012 settlement conference of difficulties suing Church institutions possibly impacting 'employment on my Centerlink benefits'. The statement made no sense. This single, muddled and brief reference to a potentially related issue did not assist his case. Given the importance of the possible influence of the specific legal barriers to his claims, and the fact that it was in dispute, DZY's failure to adduce specific, clear evidence on this point is significant. The Court should not speculate about what might have been intended or about what other evidence might have been called: ASIC v Hellicar (2012) 247 CLR 345, 411 [165] (French CJ, Gummow, Hayne, Crennan, Kiefel and Bell JJ); [2012] HCA 17.
[105] Masters Home Improvement [2017] VSCA 88; (2017) 372 ALR 440, 466-7 [101]-[102] (Santamaria, Ferguson and Kaye JJA); [2017] VSCA 88.
[107] For convenience, I will adopt the defined terms used in the reasons of the majority.
[113] See Owners of Ship Shin Kobe Maru v Empire Shipping Co Inc (1994) 181 CLR 404, 421 (Mason CJ, Brennan, Deane, Dawson, Toohey, Gaudron and McHugh JJ); [1994] HCA 54. See also, Weinstock v Beck [2013] HCA 14; (2013) 251 CLR 396, 419-420 [55] (Hayne, Crennan and Kiefel JJ); [2013] HCA 14.
[114] Explanatory Memorandum, Children Legislation Amendment Bill 2019, 16 (emphasis added).
[115] Second Reading Speech, 2695-6 (emphasis added).
[116] The Act, s 27OA, as inserted by Children Legislation Amendment Act 2019, pt 8 s 31.
[117] The Act, s 27OA, as amended by Justice Legislation Amendment (Drug Court and Other Matters) Act 2020, pt 4 s 44.
[118] Counsel for the Christian Brothers stated that 'it's not the [Christian Brothers'] case that it can't be just and reasonable to set aside a settlement agreement in circumstances where a plaintiff was motivated by factors unconnected to either the Ellis defence or the impugned quality of the consent'.
Trustees of the Christian Brothers
DZY
GLJ v The Trustees of the Roman Catholic Church for the Diocese of Lismore [2023] HCA 32, applied; House v The King (1936) 55 CLR 499; Warren v Coombes [1979] HCA 9; (1979) 142 CLR 531; Fox v Percy (2003) 214 CLR 118; Roman Catholic Trusts Corporation for the Diocese of Sale v WCB [2020] VSCA 328; (2020) 62 VR 234, considered; Hunt v Holcombe [2018] VSCA 248, not followed.
(1998) 194 CLR 355
(1994) 181 CLR 404
(1979) 142 CLR 531
(2003) 214 CLR 118
(2007) 70 NSWLR 565
(2023) 97 ALJR 857
(2018) 264 CLR 541
(2012) 250 CLR 503
(2017) 372 ALR 440
(2013) 251 CLR 396
(1936) 55 CLR 499
(2020) 62 VR 234
(2009) 239 CLR 27
(2012) 247 CLR 345