THE PROSECUTION AND DEFENCE OF CIVIL CONTEMPT PROCEEDINGS P R
Transcription
THE PROSECUTION AND DEFENCE OF CIVIL CONTEMPT PROCEEDINGS P R
THE PROSECUTION AND DEFENCE OF CIVIL CONTEMPT PROCEEDINGS (HOW TO RUN A CIVIL CONTEMPT PROCEEDING) PRESENTED BY RICHARD LILLEY SC AND CHRISTIAN JENNINGS INTRODUCTION 1. Contempt applications in civil proceedings, although rare, are one of the weapons in the litigator’s armoury. They may be regarded as the ultimate enforcement mechanism. But should be used only sparingly. Even then use must be limited to those rare occasions when committing a party to prison1 is: 2. (a) Appropriate in order to coerce compliance with, or to enforce, an order; and (b) In your client’s interests. This paper addresses the prosecution and defence of the contempt application in a practical and hands-on way. This paper does not address applications for criminal contempt or applications involving contempt by publication. Before embarking on its function, it is useful for the inexperienced to consider the background, history and nature of the modern contempt application. Thankfully, Atkinson J has provided a concise and very helpful treatise in this regard2 which we recommend as compulsory reading to all before taking the step of prosecuting or defending a contempt proceeding. 3. The structure of this paper will: (a) Discuss the decision to prosecute for civil contempt and the conduct of that prosecution; 1 2 (b) Discuss the defence of civil contempt proceedings; (c) Discuss facts relevant to punishment and orders for costs; Hafele Australia Pty Ltd & Anor v Maggbury Pty Ltd [2000] QCA 397 per Muir J (with whom McPherson JA and Thomas JA agreed) at paras 34 to 38 but at [36] and [37]: “[36] The above observations of James LJ remain valid. The Uniform Civil Procedure Rules and their predecessors make provision for contempt proceedings in order to provide for the enforcement of the process and orders of the Court and the punishment of acts which impede the due administration of justice. In the case of civil proceedings, the main purpose of the sanctions provided by the Rules in the event of a failure to comply with court orders is coercive rather than punitive. [37] Applications, such as the one under consideration, serve neither of these objectives. In my view, resort to contempt proceedings by litigants for the purposes of forensic manoeuvring should be discouraged.” Bakir v Doueihi & Ors [2001] QSC 414 (6 November 2001) unreported, paragraphs [3] to [30]. 2 (d) By way of summary, proffer a ‘checklist’ of matters to consider when either prosecuting or defending contempt proceedings. PROSECUTION 4. It is helpful to address the considerations involved in prosecuting a contempt proceeding in the following order: (a) Against whom may contempt proceedings be commenced? (b) The decision to prosecute; (c) The charges; (d) The evidence; (e) The proper commencement. A. Against whom may the action be brought? 5. Civil contempt proceedings are most commonly brought against a party to civil proceedings who is in breach of: 6. (a) Mandatory orders; (b) Negative orders (eg. injunctions); (c) Undertakings; or (d) Procedural orders (eg. failing to answer interrogatories or to give disclosure). A party to civil proceedings may be vicariously liable for contempt when a servant or agent of that party has breached an order.3 Liability for contempt turns on whether the servant or agent was acting on behalf of and within the scope of authority conferred by the party to the litigation. 7. While injunctions generally address a party to proceedings “by himself, his servants or agents”, the wording of the injunction does not itself bind a person (ie. the servant or agent) who is not a party to the proceedings.4 If a servant or agent knowingly assists a party to proceedings to breach an order, then that servant or agent may be committed for contempt, 3 4 Evenco Pty Ltd v Australia Building Construction Employees and Builders Labourers Federation (Qld Branch) [2001] 2 Qd R 118, 126 per McMurdo J and Heatons Transport (St Helens) Ltd v TGWU [1973] AC 15. Ivans v Harris (1802) 32 ER 102 and Royal Bank of Canada v Canstar Sports group Inc [1989] 1 WWR 662. 3 not because they have acted in breach of an order, but because they have ‘so conducted themselves as to obstruct the course of justice’.5 8. If not for specific provision in the Uniform Civil Procedure Rules 1999, a director, who is not a party to the relevant proceedings, would only be liable for contempt if he or she was knowingly involved in a breach of an order.6 By r.898(2), if the court has made a nonmoney order directed at a corporation requiring an act to be done within a stated time or requiring the corporation abstain from performing an act, that order may be enforced by contempt proceedings against the corporation and against an “officer”7 of that corporation.8 A director of a corporation with notice of orders directed against that corporation, is under a duty to take reasonable steps to ensure that the order (or undertaking) is obeyed, and if he or she wilfully fails to take those steps and the order is breached, he or she can be punished9 for contempt.10 B. The Decision to Prosecute 9. Obviously, when making a decision to prosecute for civil contempt the prospects of success will be the most important consideration for the party bringing the action. Broader public policy considerations are unlikely, it is suggested, to sway a litigant to commence civil contempt proceedings if the prospects of success are not good. This part addresses a number of considerations relevant to a determination of the prospects of success. 10. One of the goals of civil contempt proceedings is to ensure compliance with the order or undertaking the subject of a breach, but, as noted, there is also a public interest in ensuring orders are not disobeyed.11 11. It can rarely, if ever, be in your client’s interests to have the opponent committed to prison or fined. So great care is needed when making the decision to prosecute. Generally, a decision is called for when there has been non-compliance with an order or breach of an 5 6 7 8 9 10 11 Marengo v Daily Sketch and Sunday Graphic Ltd [1948] 1 All ER 406. cf. Attorney-General v Newspaper Publishing plc [1988] Ch 333. Schedule 4 of the UCPR defines “officer” to include a former officer of a corporation. Section 9 of the Corporations Act 2001 (Cth) defines an ‘officer’ of a corporation to include, inter alia, a director, secretary, receiver, administrator and liquidator of a corporation and (so-called) “shadow directors”. By way of illustration, see Stewart v Gymboree Pty Ltd [2001] QCA 307. For a discussion on the principles relevant to the imposition of punishment against a director and a company, see McMillan Graham Printers Ltd v RR (UK) Ltd [1993] TLR 152, CA. Evenco Pty Ltd v Amalgamated Society of Carpenters, Joiners, Bricklayers and Plasterers of Australasia Union of Employees Queensland (Unreported, SCQ No. 4843 of 1986; No 1794 of 1988, 23 March 1999 per Chesterman J) para 77-79, citing with approval Attorney-General for Tuvalu v Philatelic Distribution Corp Ltd [1990] 1 WLR 926. Also, see Madeira v Roggette Pty Ltd (No 2) [1992] 1 Qd R 394. Phonographic Performance Ltd v Amusement Caterers (Peckham) Ltd [1964] Ch 195, 198-9 per Cross J. The public interest considerations relevant to civil contempt proceedings have fuelled a blurring of the traditional bounds between civil contempt proceedings and criminal contempt proceedings: Jennison v Baker [1972] 2 QB 52, 61. 4 undertaking to the Court.12 A client must be made aware that while contempt proceedings may result in compliance with an order or undertaking they may equally result in a fine or imprisonment, meaning that the client might expend funds for no eventual litigation benefit. It is necessary to consider whether there is scope for the court to exercise its coercive power (ie. whether the breach is capable of remedy), or whether the court can only exercise its punitive power to punish.13 12. Before embarking on the decision it is necessary to consider: (a) In the case of non-compliance with an order, whether the order has been sufficiently served; (b) In the case of a breach of undertaking,14 whether the giver of the undertaking can be “fixed” with knowledge of the undertaking given; (c) In either case, whether the order or undertaking is sufficiently clear and unambiguous so that the breach can be “clear beyond all question”.15 13. In addition, alternative methods of enforcement of orders or undertakings should be considered. A court will generally be reluctant to punish for contempt where there is an appropriate alternative means of addressing a breach of order or undertaking. For example, where a party has breached a procedural order, the Court may give judgment against the offending party.16 Also, where practicable, a court may order substituted performance of an act ordered to be done.17 14. We pause here to remark: (a) Most applications for contempt that fail are lost on grounds arising from the circumstances at the time an order was made, an undertaking was given or because of a lack of adequate notice of the order or undertaking; (b) The considerations which are now to be discussed should inform counsel as to appropriate steps to be taken and other necessary considerations when seeking orders or agreeing to undertakings. 12 13 14 15 16 17 Rule 900(1) and 925(1)(a) UCPR. For an example of a situation where the orders breached were unable to be remedied, see Australian Securities Commission v Macleod (1993) 40 FCR 461. Undertakings are enforceable by way of contempt proceedings by reason of r.900(1) UCPR. Redwing Ltd v Redwing Forest Products Ltd (1947) 177 LT 387, per Jenkins J. UCPR, r.371-374, see also r.896-905. See Federal Court Rules, O 43 r 28, UCPR, r.899. While alternative means of enforcing orders do not affect the power of a court to punish for contempt, where there is a reasonable alternative method of enforcement, the court may grant this alternative relief rather than committing the respondent to prison for contempt: Danchevsky v Danchevsky [1975] Fam 17. 5 Service and notice of the orders 15. Generally, for a non-money order to be enforced by civil contempt proceedings, the order must have been personally served or clear notice of the order must have been given to the party to whom the order is directed18 and, in the case of an order requiring a party to do an act, the order must have been served before the expiration of that time.19 Service of an order on a solicitor is not, by itself, sufficient for the purposes of supporting a contempt application. 16. For the purposes of supporting civil contempt proceedings, personal service is not required of the order on a third party liable for contempt because of his or her knowing participation in a breach of that order or of an undertaking given by a party said to be in breach of that undertaking.21 17. Furthermore, when an order requires an act to be done, the order “must” specify the time within which the act is to be done and be endorsed accordingly.22 If an order does not specify the time, by reference to a number of days or date, by which an act is to be done, but says, for example, that the act must be done “forthwith” or “immediately”, a court is likely to find that such a delimitation of the period of time is sufficient for the purposes of the relevant court rules. Such an order is likely to be construed to require action within a reasonable time.23 18. It is for the prosecutor to prove, beyond a reasonable doubt, that the alleged contemnor had the requisite notice of the order and/or was aware that the undertaking had been given.24 19. It is now not strictly necessary that the order (to be enforced by civil contempt proceedings) be endorsed with what is referred to as the “penal provision”.25 The requirement with respect to endorsement of the “penal provision” differs from court to court. It is important when considering this aspect to read any relevant reports of cases in the context of the specific rule to which the cases apply.26 Under the UCPR, r.665(3) states that an order 18 19 21 22 23 24 25 26 UCPR, r.904 (note that it operates “unless the court otherwise orders”). As to notice, see Madeira v Roggette Pty Ltd [1992] 2 QdR 357, where evidence that the solicitor had read over an order, and sent a copy to the client was sufficient. Personal service is required to enable the person bound by the order to know what conduct would amount to breach, eg. R v City of London Magistrates’ Court ex parte Green [1997] 3 All ER 551. UCPR, r.904(2)(b), Federal Court Rules, O 37 r.2(4). Attorney-General for Tuvalu v Philatelic Distribution Corp [1990] 1 WLR 926, 937 per Woolf LJ. Rule 665 UCPR, O 40 r 8, see also, O 37 r 2 Federal Court Rules. Australian Securities Commission v Macleod (No 2) (1993) 40 FCR 461, 464-5 per Drummond J. Churchman v Joint Shop Stewards’ Committee of the Worker of the Port of London [1972] 1 WLR 1094, 1098. Rule 665(3) UCPR, O 37 r 2(3) Federal Court Rules. See Davy International Ltd v Tazzyman [1997] 3 All ER 183. cf. The Queensland Supreme Court Rules, r.44.4, Federal Court Rules O 37, r.2(3). 6 requiring a party to perform an act must have written on it a statement to the effect that if that party does not obey the order they face, inter alia, “punishment for contempt”. 20. In the end however, it is likely that a contempt prosecution will be successful if the only shortcoming is the absence of the “penal provision”.27 This is particularly the case where the alleged contemnor does not give evidence to explain why he/she was of the opinion a penalty might not result. The lack of the notice does not deprive the Court of jurisdiction to make an adjudication of the contempt, but is a fact relevant to the court’s discretion to order committal.28 21. Something more should be said about personal service: (a) The requirement may be overcome by proof of knowledge of content eg. evidence it was read over29 or by evidence the relevant party was in court when the order was made;30 (b) Although probably just another example of the proposition stated in (a) above, it is worth noting that where a consent order is made in the absence of a party but in the presence of his/her legal representative, it may be inferred in the absence of evidence to the contrary that the party was aware of the order and authorised its making.31 In such a situation, it is for the respondent to show that he or she did not have requisite notice by, for example, demonstrating that the legal representative exceeded his or her authority when consenting to the orders; (c) While the above statements are taken from the developed common law, it is worth noting that there are now specific provisions in Queensland in the form of r.904 of the UCPR which by subrule (2) allows the court to proceed if the alleged contemnor has notice of the order because: (i) He/she was present when the order was made; or (ii) He/she was notified of the terms of the order by telephone or in another way a reasonable time before the end of time for performance of the act or 27 28 29 30 31 Davy International Ltd v Tazzyman [1997] 3 All ER 183, Australian Securities Commission v McLeod & Ors (No. 1) (1993) 40 FCR 155. UCPR r.665(3) is subject to r.367 and r.371, which may allow the court to hear civil contempt applications notwithstanding the absence of a “penal provision” in the relevant orders. Australian Securities Commission v McLeod & Ors (No. 1) (1993) 40 FCR 155, 159-160, 162 per Drummond J. Madeira (supra at fn.10) and also see r.904 UCPR. Davy International Ltd v Tazzymann [1997] 3 All ER 183, 188, see also Battle Pty Ltd v Hoy [2000] QDC 43. Australian Securities Commission v McLeod & Ors (No. 1) (1993) 40 FCR 155, 161 per Drummond J. For example, see Turner v Naval, Military and Civil Service Co-operative Society of South Africa, The Times, January 21, 1907 and Re M: M v Home Office [1992] 4 All ER 91, 118. 7 before the time when the prohibited act was to be performed as the case requires. It should not be thought that r.904 is exhaustive of the circumstances in which a court can be satisfied as to notice. Clearly it is not. 22. While, as in McLeod (supra), a court might infer knowledge of content from consent to an order, it is doubtful that a court would infer knowledge of a complicated undertaking in the absence of that knowledge by personal service or presence in court (it is for this reason that where undertakings are to be given counsel accepting them should insist on presence in court or some other evidence of knowledge eg. a copy of signed instructions. Alternatively, counsel might seek the inclusion of an order dispensing with the need for personal service but there will need to be some form of notice in lieu). Sufficiently Clear and Unambiguous 23. In Queensland, as opposed to Victoria32, the Court should, in construing an order or undertaking, have regard to the factual matrix which was known to both parties. This approach appears consistent with the judgement of Barwick CJ.33 But there are limits on such an approach.34 It should be noted that Barwick CJ35 concluded: “If the order or undertaking is so expressed as to be meaningless, there is of course nothing which can be enforced. But, if it bears a meaning which the Court is satisfied is one which ought fairly to have been in the contemplation of the person to whom the order was directed or who gave the undertaking as a possible meaning, the fact that that meaning results from a process of construction and involves a choice of possible meanings does not, in my opinion, preclude the Court from enforcing the order or undertaking in the sense which the Court assigns to it.” 32 33 34 35 cf. Evenco Pty Ltd v Australian Building Construction Employees and Builders Labourers Federation (Qld Branch) [2001] 2 QdR 118 at 135 and Livingspring Pty Ltd & Ors v Chris Haktoh NG & Ors [2007] VSC 9 Cavanough J, 5 February 2007 at [31] . Australian Consolidated Press Ltd v Morgan (1965) 112 CLR 483 at 492. In Morgan Ibid: “If the Court is satisfied that the party said to be in contempt bona fide believed himself bound only by a construction which the Court thinks to be erroneous, it may for that reason, in its discretion, refuse to make an order or, if it makes an order, refuse to make an order for costs against that party. … A party who has bona fide acted on an erroneous view of an order or undertaking may, according to the circumstances, none the less be justly adjudged guilty of contempt in procedure..” His Honour did not follow Jenkins J in Redwing (supra at fn 15) when he said: “In my judgment, a defendant cannot be committed for contempt on the ground that upon one of two possible constructions of an undertaking being given he has broken his undertaking. For the purpose of relief of this character I think the undertaking must be clear and the breach must be clear beyond all question.” Morgan (supra) at fn 33. 8 24. It is worth noting that notwithstanding this authority Victoria and the Northern Territory have adopted a far stricter approach to interpretation.36 25. Importantly, in this aspect of the matter, if an alleged contemnor wishes to rely on an alleged ambiguity in the order or undertaking, it appears, at least in Queensland, that the alleged contemnor will need to give evidence as to a bona fide belief in his/her construction of the order or undertaking. So that in making the decision to prosecute, even where there is some doubt as to the construction of an order or undertaking, an applicant may successfully force a respondent into evidence and gain some coercive benefit. 26. But in closing this aspect of this paper, the decision to prosecute should not be made if the only desirable outcome is to further the purposes of forensic manoeuvring and not to imprison or at least coerce compliance.37 C. The Charges 27. The application should obviously seek orders that the respondent thereto be “committed or otherwise dealt with” for contempt of court. While frequently adequate applications use other wording, it seems fair to inform the respondent that the applicant actually wants him/her imprisoned unless of course imprisonment is not sought. 28. More importantly though, the application should then lay or particularise the charges of contempt much in the same way as one might expect to see in an indictment so, for example, in the case of dealing with money in breach of Mareva injunction a charge might be: “In that by paragraph 1 of the order having been restrained from spending any sum exceeding $1,000 per week upon reasonable living expenses the respondent did by two payments made on 21 November 2006 expend the sum of $6,000 being $3,000 for airline tickets for himself and one Mary Smith and $3,000 for traveller’s cheques issued in the name of the said Mary Smith which expenditure was not made for reasonable living expenses.” 29. Each charge should itself, or by its particulars, sufficiently specify the alleged contempt.38 30. Each complaint of breach of the order or undertaking should be made the subject of a separate charge so that the trial judge and the respondent are immediately informed of the charges which the respondent must answer. 36 37 38 See the judgements in Tovhead Pty Ltd v Owston Nominees (No. 2) Pty Ltd [2002] NTSC 64 Angel J 29 November 2002 and Livingspring (supra) at fn 32. Hafele Australia Pty Ltd & Anor v Maggbury Pty Ltd [2000] QCA 397 per Muir J. CFMEU v BHP Steel (AIS) Pty Ltd [2001] FCA 1758 at [30]-[31] and Inghams Enterprises Pty Ltd v Timania Pty Ltd (2005) 201 ALR 823 at 835-836 9 D. The Evidence 31. It is necessary for the prosecution to prove, first, that the alleged act or omission by the respondent constitutes a breach of the relevant order or undertaking – and that the breach was wilful, in the sense that it was not casual, accidental or unintentional39 – and, second, that the alleged act or omission occurred. It is now trite to say that the evidence to be adduced, if the applicant is to be successful, must prove each charge beyond a reasonable doubt.40 Obviously, hearsay evidence will not be admissible for that purpose.41 32. In the first instance the evidence should be put in the form of an affidavit in support of the application and served with the application. 33. In arranging the affidavit in support, it is helpful in respect of each affidavit, to deal with each charge so that the trial judge and the respondent can see, easily, the evidence that supports each particular charge. E. Proper Commencement 34. Part 7 of the UCPR by rr.921-932 deals with contempt proceedings. Before instituting a contempt proceeding one should be fully familiar with those provisions and read them carefully. Of relevance to the matters covered by this paper, are the provisions of r.925 and r.926(2). The applicant is given a choice of making the application in the proceeding in which the contempt was committed or by starting a new proceeding. But in either event, it appears by r.926(1) that the proceeding is to be commenced by an application and not a claim. 35. By r.926(3) the application must be supported by affidavit material and the application and the supporting affidavits must be served personally.42 36. Only in rare cases will the hearing of contempt proceedings be suitable for listing in the applications jurisdiction. The likely dispute of fact between the parties, the need for crossexamination of the prosecution’s witnesses, and submissions on procedure, liability and penalty make even the most straightforward contempt application likely to require a one-day hearing. 39 40 41 42 Australasian Meat Industry Employees’ Union v Mudginberri Station Pty Ltd (1986) 161 CLR 98, 112-3. Witham v Holloway (1995) 183 CLR 525. The applicable standard of proof in Australia had previously been the subject of confusion: see, for example, Flamingo Park Pty Ltd v Dolly Dolly Creation Pty Ltd [1983] 1 NSWLR 127 cf. Jendell Australia Pty Ltd v Kesby [1983] 1 NSWLR 127. El Capistrano AS v ATO Marketing Ltd [1989] 2 All ER 572, cf. Savings and Investment Bank Ltd v Gasco Investments (Netherlands) BV [1988] Ch 422. Rule 106 UCPR in the case of individuals and r.107 UCPR in the case of a corporation. Also see rr.108-110 UCPR for specific categories of individuals. 10 DEFENCE 37. In many respects, the matters relevant to defending contempt proceedings are identical to those matters relevant to its prosecution. What follows is a series of important considerations when acting for a respondent to an Application seeking punishment for contempt. A. Procedural concerns 38. As noted, only in limited cases will the applications jurisdiction be an appropriate forum for the determination of a civil contempt proceeding. Subject to instructions, the respondent is likely to require cross-examination of witnesses and likely to make submissions on procedural and substantive matters. Accordingly, on the first return date of an application seeking punishment for contempt, it is appropriate that the parties seek directions for the future conduct of those proceedings. The directions may provide for: 39. (a) The provision of further particulars by the prosecution; (b) The delivery of affidavit material by the prosecution; and (c) The hearing of the proceedings in the civil jurisdiction. A respondent to civil contempt proceedings can not be compelled to give evidence against his or her will.43 Accordingly, it is suggested that it is inappropriate for the respondent to be the subject of directions requiring him or her to deliver any affidavit material by a specified date. 40. A further concern for the respondent is the potential overlap between civil and criminal contempt. Although less likely in civil contempt proceedings the subject of this paper, where there are, or there are threatened, concurrent civil contempt and criminal proceedings for the same conduct of the respondent/accused, the courts seem reluctant to adjourn the contempt proceedings on the ground that their continuation will seriously prejudice the respondent/accused. 44 To stay contempt proceedings the respondent must rely on more than the fact that in those proceedings the respondent/accused will be forced (if he or she elected to give evidence) to reveal his or her defence in the criminal proceedings.45 43 44 45 Comet Products UK Ltd v Hawkex Plastics Ltd [1971] 2 QB 67, 74 per Denning LJ. M v M [1997] 1 FLR 762, 764B-D per Lord Bingham CJ. Keeber v Keeber [1995] 2 FLR 748, 751 per Butler-Sloss LJ. 11 41. In appropriate circumstances, the Court may order security for costs in contempt proceedings.46 B. Defences based on a failure to adhere to strict requirements 42. Procedural safeguards incorporated into civil contempt proceedings make these proceedings susceptible to technical defences. If the prosecution has failed to comply with procedural safeguards, counsel for the respondent should consider a “no case” submission. Has there been personal service? 43. Subject to any order waiving the need for personal service, instructions should be obtained regarding service of the orders sought to be enforced by contempt proceedings and service of the Application seeking punishment for contempt. As noted, generally, both the order and the Application must be served personally on the person sought to be committed for contempt.47 Are the charges sufficiently particularised? 44. It is not sufficient that the grounds for the Application for contempt be in general terms. The charges must be pleaded with sufficient particularity to enable the respondent to defend him or herself.48 If the charges require the provision of particulars, an appropriate direction should be sought on the first return date of those proceedings. Are the orders sought to be enforced ambiguous or vague? 45. An order or undertaking will not be enforced by contempt proceedings if its terms are ambiguous.49 This requires consideration of the terms of the order and the breadth of the obligations imposed: see paragraphs 23 to 25 above as to how effective in Queensland a defence of ambiguity may be.50 C. Defences raised on the facts 46. In view of the quasi-criminal nature of civil contempt proceedings, it is important to consider whether the respondent should give evidence or whether the respondent should rely on the prosecution failing to prove material facts beyond a reasonable doubt. This question 46 47 48 49 50 Maggbury Pty Ltd v Hafele Australia Pty Ltd [2001] 2 Qd R 187 per White J. See r.670-676 UCPR. Doyle v Commonwealth (1985) 60 ALR 567, 571. Chiltern District Council v Keane [1985] 1 WLR 619, 622. R v City of London Magistrates’ Court ex parte Green [1997] 3 All ER 551. An example of technical ambiguity is found in Federal Bank of the Middle East v Hadkinson [2000] 2 All ER 395, where the court found that the phrase “his assets and/or funds” was ambiguous because it did not make clear whether the order was directed at assets or funds. It is doubtful that such a technical submission would be accepted in Queensland. 12 can only be answered on the facts of each case. But the real question will always be whether to expose an alleged contemnor to cross-examination. PUNISHMENT AND COSTS 47. If a respondent has been found in contempt of court for breach of an order or undertaking, the following are matters relevant to punishment:51 (a) The seriousness of the contempt; (b) Whether the breach may be “undone” by, for example, a re-transfer of property or repayment of money, this is called “purging the contempt”. Although, it should be recognised, there are limits to the effectiveness of this by way of mitigation;52 (c) Whether the contemnor has shown remorse; (d) The bona fides of the contemnor and his or her reasons, motives and states of mind.53 The court may, however, refuse to receive “fresh” evidence after a finding that the relevant party is in contempt if that new evidence contradicts such a finding;54 (e) 48. Whether a costs order against the contemnor is sufficient punishment.55 It will be necessary, in submissions on punishment, to make submissions on what is appropriate, with reference to comparable cases. From an applicant’s point of view, it is recommended that submissions on punishment be left until findings on contempt are made, this is particularly recommended when the applicant seeks the contempt be purged. 49. In cases where a party in contempt remains able to comply with an order or remedy a breach, the court may use powers in contempt to coerce a respondent into compliance. This may involve an indeterminate period of imprisonment for the respondent pending compliance or imprisonment and an adjournment of sentencing.56 If the contempt is unable to be purged, there is no scope for the court to coerce a respondent to comply with an order. 51 52 53 54 55 56 See, UCPR, r.930 and 931. Australian Securities Commission v Macleod (No 2) (1993) 40 FCR 461, 476 per Drummond J. There, the defendant was found to have wilfully breached a number of orders, including an order for the production of a list of assets. At the conclusion of the hearing, after the defendant had been found guilty of contempt, and only after his property had been identified by the applicant, did the defendant offer to purge his contempt by producing a list of his property. Drummond J thought that the delivery of such a list, given its lateness, would have “limited significance” to mitigation of punishment because it was not evidence of the defendant’s remorsefulness. Miller v Scorey [1996] 1 WLR 1122, 1132D-E. Australian Securities Commission v Macleod (No 2) (1993) 40 FCR 461, 476 per Drummond J. Sun Newspapers Pty Ltd v Brisbane TY Ltd (1989) 92 ALR 535. In that case there were, however, mitigating factors and the court was only otherwise inclined to impose a fine. Australian Securities Commission v Macleod (No 2) (1993) 40 FCR 461, 481 per Drummond J. 13 In that case, it is appropriate that the punishment be fixed, eg. by reference to a fixed term of imprisonment or fine. 50. The costs of a civil contempt application are within the discretion of the court, whether or not punishment is imposed against the respondent.57 CHECKLIST 51. For the prosecution: (a) Should an application for civil contempt be commenced? Are there alternative procedures available? (b) Who is the proper respondent? If the party to the proceedings is a corporation, is it appropriate to bring civil contempt proceedings against an officer? (c) Is the order sufficiently certain? (d) Did the respondent have requisite notice by: (i) personal service of the order sought to be enforced by the contempt proceedings and the Application; (ii) the application of r.904 UCPR (iii) proof that the respondent read the order; or (iv) the inference drawn when an order by consent is made in the absence of the party but in the presence of his or her legal representative? (e) Was the order endorsed with the penal provision? If not, what other circumstances exist that might indicate to the court that the respondent knew a penalty might result on breach? (f) Does the Application contain sufficient particulars of the charges? (g) Is there sufficient admissible evidence to prove that the breach was wilful, in the sense that it was not casual, accidental or unintentional? 52. For the defence: (a) Does the instructing solicitor have money in trust? (b) What, if any, directions are required to ensure the respondent understands the case he, she or it must meet? Is there a need for further particulars of the charges? 57 UCPR, r.932. 14 (c) Are there concurrent criminal proceedings? Is it appropriate to seek an adjournment or stay of the civil contempt proceedings? (d) Has the prosecution strictly complied with the need to establish notice by: (i) personal service of the order sought to be enforced by the contempt proceedings and the Application; (ii) the application of r.904 UCPR (iii) proof that the respondent read the order; or (iv) the inference drawn when an order by consent is made in the absence of the party but in the presence of his or her legal representative? (e) Is the evidence to be relied on by the prosecution admissible? (f) Should a “no case” submission be made? (g) Should the respondent give evidence? 20 February 2007
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