De Morgan v Director-General of Social Welfare

JurisdictionUK Non-devolved
Judgment Date07 October 1997
Date07 October 1997
CourtPrivy Council
[PRIVY COUNCIL] DE MORGAN and Another Petitioners and DIRECTOR-GENERAL OF SOCIAL WELFARE Respondent SEARS Petitioner and ATTORNEY-GENERAL OF NEW ZEALAND Respondent [petitions for special leave to appeal] 1997 July 9, 10; Oct. 7 Lord Browne-Wilkinson, Lord Jauncey of Tullichettle, Lord Slynn of Hadley, Lord Lloyd of Berwick and Lord Steyn

Privy Council - Jurisdiction - Special leave to appeal - Statutes providing for decisions of Court of Appeal of New Zealand on matters originating in inferior courts or in Employment Court to be “final” - Whether right of appeal to Privy Council abrogated - Whether excluding jurisdiction of Privy Council to grant special leave to appeal - Judicature Act 1908 (No. 89 of 1908, as amended), s. 67 - Employment Contracts Act 1991 (No. 22 of 1991), s. 135

Rule 2 of the New Zealand (Appeals to the Privy Council) Order 1910 conferred a right to appeal to the Judicial Committee of the Privy Council from any final judgment of the Court of Appeal where the matter in dispute on the appeal amounted to N.Z.$5,000 or upwards but by section 67 of the Judicature Act 1908F1 the determination of the High Court on appeals from inferior courts was “final unless leave to appeal … to the Court of Appeal is given …” Section 135(1) of the Employment Contracts Act 1991 provided: “(1) Where any party to any proceedings under this Act is dissatisfied with any decision of the [Employment Court] … as being erroneous in point of law, that party may appeal to the Court of Appeal against the decision; … (5) The determination of the Court of Appeal on any appeal under this section shall be final and conclusive.”

The petitioners in the first case, who owned a rest home in New Zealand, had entered into a contract with the Director-General of Social Welfare whereby the Department of Social Welfare paid a subsidy in respect of the accommodation costs of residents of the rest home who met certain eligibility criteria. Following an increase in the rate of goods and services tax payable on such accommodation, the petitioners brought proceedings against the Director-General in the District Court for the recovery of $30,869 on the ground that section 87(2) of the Goods and Services Tax Act 1985 authorised them to increase the contractual price of the services they provided so as to take into account the increased tax paid by them. The District Court dismissed the claim. The High Court of New Zealand allowed the petitioners' appeal but, on further appeal by the Director-General, the Court of Appeal of New Zealand restored the District Court's finding and refused to grant the petitioners leave to appeal to the Judicial Committee. They petitioned the Judicial Committee for special leave to appeal.

The petitioner in the second case brought proceedings in the Employment Court seeking relief under the Declaratory Judgments Act 1908 and the Fair Trading Act 1986 in respect of his claim that his employer, Audit New Zealand, had made unlawful deductions from his salary. The Employment Court granted the relief sought but, on appeal by the Attorney-General under section 135(1) of the Act of 1991, the Court of Appeal of New Zealand reversed the Employment Court's decision and thereafter refused the petitioner leave to appeal to the Judicial Committee. He petitioned the Judicial Committee for special leave to appeal.

On the petitions: —

Held, (1) that on a true construction of section 67 of the Judicature Act 1908, notwithstanding the absence of express words to such effect, decisions of the Court of Appeal on appeals from the High Court in cases originating in inferior courts were final; and that, accordingly, the petitioner in the first case had no right of appeal under rule 2 of the Order of 1910 (post, p. 431B–E).

(2) That for the purposes of section 135(1) of the Employment Contracts Act 1991, proceedings were brought under that Act if they were brought in the Employment Court established by the Act; that the provision in section 104 of the Act conferring on that court power to determine issues arising under other legislation did not alter the nature of the proceedings themselves which could only have been brought before the Employment Court by reason of the statutory jurisdiction created by the Act; and that, accordingly, although the petitioner in the second case had sought relief under the Declaratory Judgments Act 1908 and the Fair Trading Act 1986, neither of which imposed limits on rights of appeal, a right of appeal to the Judicial Committee was excluded by section 135 (post, p. 432B–D).

(3) Dismissing the petitions for want of jurisdiction, that the power of the Privy Council to entertain appeals was no longer a wholly prerogative power but was regulated by the United Kingdom Judicial Committee Acts 1833 and 1844; that the effect of a statute which excluded or limited the right of the Privy Council to grant special leave to appeal was therefore to limit what was in substance a statutory right with a purely formal prerogative element attached and such limitation could be imposed either by express words or by necessary intendment; and that, accordingly, since the only possible intendment of the New Zealand legislature in providing that decisions of the Court of Appeal on appeals brought under section 67 of the Judicature Act 1908 or section 135 of the Employment Contracts Act 1991 should be final was to exclude any further appeal against those decisions to the Privy Council, special leave could not be granted (post, pp. 434C–D).

British Coal Corporation v. The King [1935] A.C. 500, P.C. and dictum of Lord Griffiths in Walker v. The Queen [1994] 2 A.C. 36, 44, P.C. applied.

Cushing v. Dupuy (1880) 5 App.Cas. 409, P.C. and In re Wi Matua's Will [1908] A.C. 448, P.C. not followed.

The following cases are referred to in the judgment of their Lordships:

Attorney-General for Ontario v. Attorney-General for Canada [1947] A.C. 127; [1947] 1 All E.R. 137, P.C.

British Coal Corporation v. The King [1935] A.C. 500, P.C.

Cushing v. Dupuy (1880) 5 App.Cas. 409, P.C.

Walker v. The Queen [1994] 2 A.C. 36; [1993] 3 W.L.R. 1017; [1993] 4 All E.R. 789, P.C.

Wi Matua's Will, In re [1908] A.C. 448, P.C.

The following additional cases were cited in argument:

Associated Motorists Petrol Co. Ltd. v. Bannerman (No. 2) [1943] N.Z.L.R. 664

Atihau-Wanganui, Proprietors of v. Malpas [1980] 1 N.Z.L.R. 1

Ibralebbe v. The Queen [1964] A.C. 900; [1964] 2 W.L.R. 76; [1964] 1 All E.R. 251, P.C.

Kidd v. Markholm Construction Co. Ltd. [1970] N.Z.L.R. 255

Kitano v. Commonwealth of Australia [1976] A.C. 99; [1975] 3 W.L.R. 136, P.C.

Moon v. Kent's Bakeries Ltd. (No. 2) [1947] N.Z.L.R. 241

Nunns v. Licensing Control Commission [1968] N.Z.L.R. 57

Rutherfurd v. Waite [1923] G.L.R. 34

Wilson & Horton Ltd. v. Atkinson (Note) [1992] 3 N.Z.L.R. 641

De Morgan and Another v. Director-General of Social Welfare

Petition for special leave to appeal by the petitioners, Shane Campbell De Morgan and Dale De Morgan, against the order of the Court of Appeal of New Zealand (Richardson P., McKay, Henry, Keith and Blanchard JJ.) allowing an appeal by the Director-General of Social Welfare from the judgment of Anderson J. on 30 November 1995 whereby, in allowing the petitioners' appeal from a decision of the District Court, the judge had ordered the Department of Social Welfare to pay the petitioners N.Z.$30,869.05 in respect of services supplied by the...

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