Case: Australian Competition and Consumer Commission v Globex Systems Pty Ltd (2005) 27 ATPR 42-069
Outcome: cited
Any contempt of court, including any wilful disobedience of the orders of the Court, is a very serious matter. In Australian Competition and Consumer Commission v Hughes [2001] FCA 38 (' ACCC v Hughes '), Tamberlin J said at [15]: 'Ultimately, in the case of mandatory or prohibitory orders made by it, the sanction which the Court has in order to enforce its decisions is the power to punish for contempt. This is the way in which the Court preserves respect for its role and the rule of law. Without the enforcement of court orders the whole process of adjudication becomes a hollow exercise. If a losing party can defy the orders of the Court then such disobedience renders futile, in the perception of the community, the remedy secured by the successful party. Orders are not made simply to suggest or advise persons that they ought to keep to the law as proclaimed but to ensure that the law is carried out as determined by the decision pursuant to which the order is made. Defiance of court orders diminishes the authority of courts and removes the incentive of parties, if such conduct is left unpunished, to comply with the requirements of the courts.' Courts have repeatedly made statements to similar effect: see Australian Competition and Consumer Commission v Globex Systems Pty Ltd (2005) 27 ATPR 42-069 (' ACCC v Globex' ) at 43,102 [54]; and Deputy Commissioner of Taxation (Cth) v Hickey and Horne (1999) 42 ATR 229 (' Hickey' ) at 243 [35]. 68 The applicant brought these proceedings by notice of motion to ensure compliance with the Orders and consistently with its charter to act in the public interest: ACCC v Globex at 43,105 [84]. The applicant has been forced to take these extra steps to enforce its rights after they have already been adjudicated by the Court. 69 Mr Spencer had a duty strictly to comply with paragraph 13 of the Orders. He failed to do so and he is still in breach. He failed to take the necessary steps to comply with the Orders, notwithstanding correspondence from the applicant's solicitors warning that his failure amounted to a contempt. He was given ample opportunity to comply with the Orders. 70 I consider that it is appropriate in the interests of justice in this case to make an order that Mr Spencer pay the applicant's costs of and incidental to the notice of motion on an indemnity basis. I do not consider that my finding that the charge of contempt is not made out in respect of paragraph 12 of the Orders warrants me taking a different view as to costs. 71 I will make a declaration that Mr Spencer is in contempt of paragraph 13 of the Orders. 72 The remaining question is what course should be taken in relation to the further operation of paragraph 12 of the Orders. While the applicant submitted that paragraph 12 has been breached, it did not press for an order that would have the consequence that Mr Spencer is required to take further steps to comply with paragraph 12 of the Orders. In the circumstances, I propose to order that paragraph 12 of the Orders be vacated. I certify that the preceding seventy-two (72) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Young J. Associate: Dated: 6 June 2006 Counsel for the Applicant: JP Moore Solicitor for the Applicant: Deacons Counsel for the Second Respondent: D Bailey Solicitor for the Second Respondent: David Stagg Tonkin &amp; Co Date of Hearing: 18 May 2006 Date of Judgment: 6 June 2006 AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback URL: http://www.austlii.edu.au/au/cases/cth/FCA/2006/695.html