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Natural Justice and Legitimate Expectations in Australia

Published online by Cambridge University Press:  24 January 2025

Graeme Johnson
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Extract

The imprecise contours of the… principles [of implication of due process] prevent their easy application. To apply them too sweepingly requires the dilution of due process requirements to accommodate the protection afforded the property interest holder to the inescapable and practical needs of government. To apply them too narrowly requires the sacrifice without due process of many highly valued expectations to accommodate their holders to the only marginally significant needs of government.

Type
Research Article
Information
Federal Law Review , Volume 15 , Issue 1 , September 1984 , pp. 39 - 75
Copyright
Copyright © 1984 The Australian National University

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References

1 Moore v Johnson (1978) 582 F 2d 1228, 1233 per Circuit Judge Sneed.

2 [1964] AC 40.

3 R v Electricity Commissioners; Ex parte London Electricity Joint Committee Co (1924) I KB 171, 205 per Atkin LJ; R v Legislatii'e Ci:nnmittee of Church Assembly; Ex parte Haynes-Smith [1928] 1 KB 411,415 per Lord Hewart CJ.

4 Ridge v Baldwin [1964] AC 40, 75.

5 (1863) 14 CB (NS) 180; 143 ER 414.

6 [1964] AC 40.

7 D H Clarke, “Natural Justice: Substance and Shadow” [1975] Public Law 27, 27.

8 E I Sykes and RR S Tracey, Cases and Materials on Administrative Law (4th ed 1982) 168.

9 The rejection of the classificatory approach has been constantly reiterated. Australia — Heatley v Tasmanian Racing and Gaming Commission (1977) 14 ALR 519, 521 per Barwick CJ, 527 per Aickin J; Salemi v Minister for Immigration and Ethnic Affairs (No 2) (1977) 14 ALR I, 19 per Gibbs J, 45 per Jacobs J; FAI Insurances Ltd v Winneke (1982) 41 ALR I, 13 per Mason J, 37 per Wilson J, 53 per Brennan J; Bread Manufacturers of NSW v Evans (1981) 38 ALR 93, 103 per Gibbs CJ. England — R v. Gaming Board for Great Britain; Ex parte Benaim and Khaida [1970] 2 QB 417, 430 per Lord Denning MR; In re HK (An lrifant) [1967] 2 QB 617, 630 per Lord Parker CJ, 636 per Blain J; Schmidt v Secretary of State for Home Affairs [1969] 2 Ch 149, l70per Lord Denning MR;AttorneyGeneral v Ryan [1980] AC 718, 727 (Privy Council); Cinnamond v British Airports Authority [1980] 2 All ER 368, 374 per Lord Dennings MR. New Zealand — Lower Hutt City Council v Bank [1974] I NZLR 545, 548-549 per McCarthy P. Canada — Re Nicholson and Haldimand-Norfolk Regional Board of Commissioners of Police (1978) 88 DLR (3d) 671; Martineau v Matsqui Institution Disciplinary Board (No 2) (1979) 106 DLR (3d) 385. Nevertheless some judges still use the terms — eg Keller v Drainage Tribunal and Montague [1980] VR 449, 456per Murray J; Pearlberg v Varty (Inspector of Taxes) [1972] 2 All ER 6, 10 per Lord Hailsham LC, 14-15 per Viscount Dilhome, 18 per Lord Pearson, 19 per Lord Salmon. Others favour the reintroduction of the categorization approach — eg Dunlop v Woollahra Municipal Council [1975] 2 NSWLR 446, 472 per Wootten J; M Sornarajah, “Natural Justice, Fairness and Administrative Functions” (1977) 5 Tas U L Rev 268, 282- 283.

10 Eg R v Barnsley Metropolitan Borough Council; Ex parte Hook [1976] 1 WLR 1052, 1057.

11 Eg In re HK (An Infant) [1967] 2 QB 617.

12 Eg R v Metropolitan Police Commissioners; Ex parte Parker [1953] 1 WLR 1150, 1154 per Lord Goddard CJ; Nakkuda Ali v MF De S Jayaratne [1951] AC 66; Ex parte Tweedie (1922) 22 SR (NSW) 565, 569.

13 Banks v Transport Regulation Board (1968) 119 CLR 222, 230-231 per Barwick CJ; Fagan v Coursing Association of SA Inc (1974) 8 SASR 546, 562 per Bright J; Hook v Registrar of Liquor Licences (1980) 35 ACTR I. Though it is possible that this is limited to business and professional licences “ see FAI Insurances Ltd v Winneke (1982) 41 ALR I, 13 lines 27-29 per Mason J; Boronstein v Commissioner of Business Franchise [1983] VR 634, 639 lines 19-27 per King J.

14 Eg In re Commissioner for Motor Transport; Ex parte Fanning [1964] NSWR 1110, 1112. “Legitimate expectation” has been used to overcome such reasoning “ below p 46. 1

15 Schmidt v Secretary of State for Home Affairs [1969] 2 Ch 149, 170 (Italics added).

16 lbid 171.

17 Breen v Amalgamated Engineering Union [1971] 2 QB 175.

18 R v Liverpool Corporation; Ex parte Liverpool Taxi Fleet Operators Association [1972] 2 QB 299.

19 R v Barnsley Metropolitan Borough Council; Ex parte Hook [1976] I WLR 1053.

20 Ibid 1058 per Scarman LJ. Licences may now be recognised as analogous to property for revocation purposes in England “ see Mcinnes v Onslow Fane [1978] 3 All ER 211, 218b.

21 Cinnamond v British Airports Authority [1980] 2 All ER 368.

22 Cases discussing the doctrine include the following. High Court: Salemi v Minister for Immigration and Ethnic Affairs (No 2) (1977) 14 ALR I; Heatley v Tasmanian Racing and Gaming Commission (1977) 14 ALR 519; Simsek v Minister for Immigration and Ethnic Affairs (1982) 40 ALR 61; FAI Insurances Ltd v Winneke (1982) 41 ALR 1. Federal Court: Haj-lsmail v Minister for Immigration and Ethnic Affairs (1981) 36 ALR 516; Minister for Immigration and Ethnic Affairs v Haj-Ismail (1982) 40 ALR 341; Gourgaud v Lawton (1982) 42 ALR 117; loannou v Fawell (1982) 43 ALR 415; Cunningham v Cole (1982) 64 FLR 131; Fawell v Ioannou (1982) 65 FLR 360; Barbaro v Minister for Immigration and Ethnic Affairs (1982) 46 ALR 123; Gaillard v Minister for Immigration and Ethnic Affairs, 31 March 1983, unreported decision of Davies J; Arslan v Durrell (1983) 48 ALR 577; Minister for Immigration and Ethnic Affairs v Gaillard (1983) 49 ALR 277; Cole v Cunningham (1983) 49 ALR 123; Sezdirmezoglu v Acting Minister for Immigration and Ethnic Affairs (1983) 51 ALR 561; Ralkon Agricultural Company Pty Ltd v Aboriginal Development Commission (1984) 1 FCR 210; Douglas v Allen (1984) 1 FCR 287; Smith v Minister for Immigration and Ethnic Affairs (1984) 53 ALR 551; Singh v Minister for Immigration and Ethnic Affairs, 18 April 1984, unreported decision of Fisher J; Arslan v Durrell (1984) 55 ALR 361; Khoury v Grey, 5 October 1984, unreported decision of Jenkinson J. State Supreme Courts: Gardner v Dairy Industry Authority [1977] 1 NSWLR 505; Gordon v Commissioner of Police for NSW, Administrative Law Division, 27 June 1980, unreported decision of Rogers J; R v Murphy; Ex parte Clift [1980] Qd R I; R v Classification Commission; Ex parte Finnerty [1980] VR 561; Charlton v Members of the Teachers Tribunal [1981] VR 831; Nashua Aust Pty Ltd v Channon (1981) 36 ALR 215; Nicol v Attorney-General for Victoria [1982] VR 353; R v Ward; Ex parte Brambles Holdings Ltd (1983) 34 SASR 269.

23 Heatley v Tasmanian Racing and Gaming Commission (1977) 14 ALR 519, 536 lines 18-19 per Aickin J; see also Salemi v Minister for Immigration and Ethnic Affairs (No. 2) (1977) 14 ALR I, 7 lines 27-32 per Barwick CJ; 34 lines 12-18 per Stephen J; FAI Insurances Ltd v Winneke (1982) 41 ALR I, 26 lines 14-15 per Aickin J, 40 lines 38-40 per Wilson J.

24 While “natural justice” is a ground for review under the Administrative Decisions (Judicial Review) Act 1977 (Cth) s 5(1)(a), the Act derives both its definition of “natural justice” and its rules of implication from the common law — see Capello v Minister for Immigration and Ethnic Affairs (1980) 49 FLR 40, 42 per Franki J; Safadi v Minister for Immigration and Ethnic Affairs (1981) 38 ALR 399,402 per Franki J; Piroglu v Minister for Immigration and Ethnic Affairs (1981) 4 ALO 323; Sezdirmezoglu v Acting Minister for Immigration and Ethnic Affairs (1983) 51 ALR 561, 570 per Smithers J; Ralkon Agricultural Company Pty Ltd v Aboriginal Development Commission (1984) I FLR 210, 233-234; Smith v Minister for Immigration and Ethnic Affairs, Federal Court of Australia, 4 April 1984, unreported Full Court decision, (transcript) 8 per Lockhart J. Similarly the Administrative Law Act 1978 (Vic) s 2.

25 For an explanation of the Hohfeldian analysis see eg — J Finnis, “Some Professional Fallacies About Rights” (1971) 2 Adelaide L Rev 377.

26 Maxwell v Department of Trade [1974] QB 523, 539 per Lawton LJ.

27 (1977) 14 ALR 1. Hereinafter referred to as Salemi.

28 Salemi (1977) 14 ALR I, 32 line 39, 34 line 4 per Stephen J; Heatley v Tasmanian Racing and Gaming Commission (1977) 14 ALR 519,535 line 4l per AickinJ; FAI Insurances Ltd v Winneke (1982) 41 ALR 1, 27 line 28 per Aickin J, 55 line 27 per Brennan J.

29 Salemi (1977) 14 ALR I, 34 line 21 per Stephen J.

30 FAI Insurances Ltd v Winneke (1982) 41 ALR 1, 3 line 9 per Gibbs CJ.

31 Ibid 55 line 27 per Brennan J.

32 Ibid 56 line 12 per Brennan J.

33 Ibid 56 lines 46 and 53 per Brennan J.

34 (1977) 14 ALR I, 7 lines 32-37.

35 Salemi (1977) 14 ALR 1, 7 lines 35-36.

36 (1977) 14 ALR 519.

37 (1982) 41 ALR 1.

38 Barwick CJ, Gibbs and Aickin JJ; Stephen, Jacobs and Murphy JJ (dissenting). The Court being evenly divided the view of the Chief Justice prevailed — Judiciary Act 1903 (Cth) s 23(2)(b). Mason J may well have sided with the statutory minority. See his Honour's comments on s 18 in R v MacKellar; Ex parte Ratu (1977) 137 CLR461, 478-480. Alternatively Salemi argued that the amnesty changed his status from “prohibited immigrant” to “resident”. The Court rejected this — ibid 13-16 per Gibbs J (Barwick CJ agreed), 23-26 per Stephen J, 42-43 per Jacobs J, 49-51 per Aickin J, Murphy J dissenting on this point — ibid lines 1-8.

39 (1977) 14 ALR I, 9 line 15.

40 Ibid 19-20. Aickin J concurred. But see Kioa v Minister for Immigration & Ethnic Affairs (1984) 55 ALR 669 where it is suggested that the High Court may now resile from their view at 685 per Northrop & Wilcox JJ. The High Court has given leave to appeal in Kioa.

41 Ibid 21 lines 33-34.

42 Ibid 19-20.

43 Below p 49.

44 (1977) 14 ALR I, 19 lines 14-22.

45 Ibid 34 lines 27-31 (Italics added). See also ibid 44 lines 43-49 per Jacobs J.

46 (1977) 14 ALR 519. Hereinafter referred to as Heatley. Contra Re Wray and Ontario Racing Commission (1982) 138 DLR (3d) 307.

47 With whom Mason and Stephen JJ agreed.

48 (1977) 14. ALR 519, 534 lines 44-46 (Italics added).

49 Ibid 535 line 40; see also ibid 536 lines 32 and 35.

50 Ibid 535 lines 8-10.

51 Ibid 538 line 32.

52 lbid 538 lines 36-39.

53 See the discussion of Megarry V-C on the phrase “right to work” — Mcinnes v Onslow Fane [1978] 3 All ER 211; see also Forbes v NSW Trotting Club Ltd (1979) 25 ALR 1, 17- 18 per Barwick CJ.

54 (1977) 14 ALR 519, 523-524 lines 49-4. See also Forbes v NSW Trotting Club Ltd (1979)25 ALR 1, 20 per Gibbs CJ.

55 Below p 48.

56 (1977) 14 ALR 519, 522 lines 7-17 and 39-50.

57 See ibid 538 lines 10-11 per Aickin J; S Churches, “Justice and Executive Discretion in Australia” [1980] Public Law 397,409; G A Flick, “Natural Justice Before the High Court of Australia: Three Recent Cases” [1978] NZLJ 90, 94.

58 (1982) 41 ALR 1. Hereinafter referred to as FAI Insurances.

59 See also below p 52.

60 For analogous facts and application of the legitimate expectation principle see Jim Harris Ltd v Minister of Energy [1980] 2 NZLR 294, below n 170.

61 Gibbs CJ, Mason, Aickin, Wilson and Brennan JJ. Murphy J dissented on the ground that the selection of the Governor in Council as the repository of the power indicated a legislative intention to exclude natural justice (at 23-24).

62 Below p 52.

63 Below p 49.

64 (1982) 41 ALR 1, 27 lines 1-2.

65 Ibid 54 lines 19-20.(Italics added).

66 Below p 71. Cf use of the term by Gibbs J in Salemi (1977) 14 ALR I, 19 lines 14-22. It may comprehend a wider field — see Aero Pace Projects Ltd v Registrar of New Westminster Land Title [1982] 3 WWR 546, 551.

67 Above p 41.

68 Salemi (1977) 14 ALR I, 8 lines 16-18.

69 Heatley (1977) 14 ALR 519, 522 lines 1-2 (Italics added).

70 Salemi (1977) 14 ALR I, 9 lines 24-25 (Italics added).

71 Above p 43.

72 (1982) 41 ALR I, 40 lines 36-39.

73 Ibid 14 lines 18-19.

74 (1976 6th edn) 619.

75 In the United States “Due Process of Law'” is protected by the Constitution. The Fifth Amendment applies to the Federal Government, the fourteenth amendment applies to the various States — “No person shall be deprived of life, liberty or property, without due process of law ... “. Note that in R v MacKellar; Ex parte Ratu (1977) 137 CLR 461, 483 Murphy J left open the question whether “due process” is implied in the Australian Constitution.

76 Below pp 72-74.

77 Below pp 62-64.

78 Above p 43.

79 [1983] 2 WLR 735.

80 (1983) 49 ALR 123.

81 [1967] 2 AC 337.

82 lbid 349.

83 (1977) 14 ALR I, 4 lines 48-50. Cf Minister for Immigration and Ethnic Affairs v Gaillard (1983) 49 ALR 277,283 lines 21-25 per Sheppard J.

84 Ibid 20. Given the status of Salemi it is perhaps surprising that Gibbs J did not consider the sanction to be illusory — see eg G D S Taylor, “Natural Justice — The Modern Synthesis” (1975) 1 Mon UL Rev 258,273.

85 (1977) 14 ALR 1, 36 lines 24-25.

86 Ibid 36 line 30.

87 See eg Haj-Ismail v Minister for Immigration and Ethnic Affairs (1982) 40 ALR 341, 360 per Davies J.

88 (1982) 64 FLR 131.

89 See also Fowell v Ioannou (1982) 45 ALR 491, 511 per Woodward J.

90 (1983) 49 ALR 123, 131-133.

91 See also Bread Manufacturers of NSW v Evans (1981) 38 ALR 93, 102.

92 (1982) 41 ALR 1, 54 lines 5-6. See also his Honour's reasoning in National Companies and Securities Commission v The News Corporation Ltd (1984) 52 ALR 417, 439-440. CF R v Ward; Ex parte Brambles Holdings Ltd (1983) 34 SASR 269, 284 per Wells J. But compare the approach of McGregor J in Trigger v Australian Telecommunirntions Commission, Federal Court of Australia, 30 March 1984, unreported, (transcript) 24.

93 (1977) 14 ALR I, 44 lines 48-50. Supported by Barker J in Chandra v Minister of Immigration [1978] 2 NZLR 539, 572.

94 Above.

95 See Salemi (1977) 14 ALR I, 39-40 per Stephen J.

96 (1863) 14 CB (NS) 180, 194; 143 ER 414,420.

97 Eg see Churches, S, “Justice and Executive Discretion in Australia' [1980] Public Law 397, 399-404Google Scholar; Pearce, D C, Statutory Interpretation (2nd ed 1981) 45Google Scholar. Note the more liberal comments in Bread Manufacturers of NSW v Evans (1981) 38 ALR 93, 102 per Gibbs CJ.

98 (1977) 14 ALR 1, 5 lines 22-23.

99 Taylor, G D S, “Natural Justice — The Modern Synthesis” (1975) 1 Mon U Law Rev 258, 281Google Scholar.

100 See below p 69.

101 See below pp 68-70 — for a discussion of possible considerations.

102 Eg Ellicott Jin Haj-Jsmail v Minister for Immigration and Ethnic Affairs (1981) 36 ALR 516 and Cunningham v Cole (1982) 64 FLR 131; Sheppard J inloannou v Powell (1982)43 ALR 415.

103 Eg Nashua Aust Pty Ltd v Channon (1981) 36 ALR 215, 225 lines 1-3 per Lee J.

104 [1967] 2 QB 617.

105 See FAI Insurances (1982) 41 ALR 1, 26 Jines 37-38. See in the United States: Bell v Burson (1971) 402 US 535; Raper v Lucy (1973) 488 F 2d 748.

106 See below pp 64-67 as to an undertaking that a hearing will be given.

107 [1972] 2 QB 299. Above 41. Hereinafter referred to as R v Liverpool Corporation.

108 Haj-lsmail v Minister for Immigration and Ethnic Affairs (1981) 36 ALR 516,530 lines 37-39, 533 lines 29-31 per Ellicott J.

109 [1967] 2 QB 617.

110 Attorney-General of Hong Kong v Ng Yuen-shiu [1983] 2 WLR 735, 741.

111 Ventetuolo v Burke (1979) 596 F 2d 476, 482-483. Similar reasoning has been used in cases of estoppel — eg Southend-On-Sea Corporation v Hodgson (Wickford) Ltd [1962] 1 QB 416; Lever Finance v Westminster LBC [1971] 1 QB 222.

112 Cf Salemi (1977) 14 ALR 1 per Barwick CJ, Gibbs and Aickin JJ.

113 For a disccussion of the “initial application for a licence” cases see below pp 57-58.

114 [1976] 1 WLR 1052, 1059.

115 Judicial Review of Administrative Action (3rd ed 1973) 197. See now (4th ed 1980) 223-224.

116 [1972] 2 QB 299, 304. Contra Sobey v Commercial and Private Agents Board (1979)22 SASR 70.

117 E I Sykes, D J Lanham & R R S Tracey, “Natural Justice and the Atkin Formula” (1976) 10 Melb U L Rev 546, 568. See now General Principles of Administrative Law (2nd ed 1984) 161.

118 Facts — see above p 46.

119 (1982) 41 ALR 1, 3 lines 2-6 per Gibbs CJ, 26 lines 21-23 per Aickin J.

120 Ibid 3 lines 6-11 per Gibbs CJ.

121 Ibid 3 lines 11-13 per Gibbs CJ, 13 line 48 per Mason J, 55 line 40 per Brennan J.

122 Ibid 13 line 49 per Mason J, 55 line 40 per Brennan J.

123 See also Salemi (1977) 14 ALR 1, 8 lines 13-21 per Barwick CJ, 34 lines 27-33 per Stephen J, 44 lines 28-42 per Jacobs J.

124 Eg FAI Insurances (1982) 41 ALR 1, 26 lines 27-31 per Aickin J. It has been suggested that a term denying automatic renewal may not always exclude natural justice — Nashua Aust Pty Ltd v Channon (1981) 36 ALR 215, 228-229 per Lee J; contra Attorney-General v Cochrane (1970) 91 WN (NSW) 861.

125 Barwick CJ would prefer to see it springing from an implied term — Salemi (1977) 14 ALR I, 8 lines 13-21. See above p 46.

126 Mclnnes v Onslow Fane [1978] 3 All ER 211, 218f per Megarry V-C.

127 [1967] 2 Ch 149, 171.

128 (1977) 137 CLR 461.

129 Ibid 466.

130 Ibid 485-486.

131 Ibid 480-481.

132 (1981) 36 ALR 516.

133 Though note comments to the contrary by Davies J on appeal — (1982) 40 ALR 341, 361-363.

134 (1981) 36 ALR 516, 536 lines 29-33.

135 (1977) 137 CLR 461.

136 (1981) 36 ALR 516, 537 lines 1-5.

137 (1982) 40 ALR 341. Bowen CJ and Franki J concentrated on s 18: 347-348.

138 (1983) 48 ALR 577.

139 (1983) 48 ALR 566.

140 Ibid 571 lines 23-36 per Sweeney and Woodward JJ, 574 lines 17-24 per Fitzgerald J.

141 (1984) 55 ALR 361, 365-366.

142 Ibid 366.

143 (1983) 49 ALR 277. Followed by Davies Jin Filo v Minister for Immigration and Ethnic Affairs, Federal Court of Australia, 24 August 1984, unreported.

144 Ibid 280 line 49.

145 Ibid 282-283.

146 Ibid 283 lines 21-25.

147 Ibid 290 lines 7-23. Contra: the decision at first instance of Davies J, 31 March, 1983, unreported.

148 See Minister for Immigration and Ethnic Affairs v Haj-lsmail (1982) 40 ALR 341, 348 per Bowen CJ and Franki J; Sezdirmezaglu v Minister for Immigration and Ethnic Affairs (1983) 51 ALR 561, 570-571 per Smithers J; Smith v Minister for Immigration and Ethnic Affairs, Federal Court of Australia, 14 March 1984, unreported decision of Morling J, (transcript) 8-9; on appeal (1984) 53 ALR 551 where the reasoning of the Full Court is equivocal — 553 per Lockhart J, 555 per Sheppard J; Singh v Minister for Immigration and Ethnic Affairs, Federal Court of Australia, 18 April 1984, unreported decision of Fisher J; Karunakaran v Minister for Immigration and Ethnic Affairs, Federal Court of Australia, 30 July 1984, unreported decision of Sheppard J, (transcript) 17. A Full Federal Court has held that the rules of natural justice will never be attracted by a decision taken under s 36A of the Migration Act 1958 (Cth) — Faingold v Zammitt (1984) 1 FCR 87, 92-93.

149 (1971) 17 WIR 448, 492.

150 Eg Minister for Immigration and Ethnic Affairs v Gaillard (1983) 49 ALR 277, 280 per Sweeney J, 290 per Neaves J. For reasoning in other Commonwealth jurisdictions see — Canada: Re Hardayal and Minister of Manpower and Immigration (1976) 67 DLR (3d) 738, 741-743 per Urie J (implying natural justice in a revocation case); on appeal (1977) 75 DLR (3d) 465 (natural justice excluded - but on the basis of the since rejected classificatory approach — see above p 40 n 9). New Zealand: Tobias v May [1976] I NZLR 509, 511-512 per Quilliam J (excluding natural justice in an unexceptional case of revocation); Movick v Attorney-General [1978] 2 NZLR 545, 549-550 per Woodhouse J, 551-552 per Richardson J; Chandra v Minister of Immigration [1978] 2 NZLR 559, 572 per Barker J (legitimate expectation of an entry permit to be extended for an indefinite period); Daganayasi v Minister of Immigration [1980] 2 NZLR 130, 131 (legitimate expectation of non-deportation on humanitarian grounds). In the United States once an alien is within the territorial borders he cannot be deported without being accorded procedural due process — United States v Shaughnessy (1950) 338 US 537. In South Africa it has been held that the revocation of an entry permit attracts natural justice — Everett v Minister of the Interior [1981] 2 SA 453.

151 Below p 69 et seq.

152 [1971] 2 QB 175.

153 The “approval” in FAI Insurances was technically only analogous to a licence, but it was treated as though a licence — (1982) 41 ALR 1, 13 lines 38-40 per Mason J, 28 lines 1-4 per Aickin J.

154 (1981) 36 ALR 215.

155 Ibid 225 line 42.

156 Ibid 228 lines 36-37.

157 [1977] 1 NSWLR 505.

158 Ibid 533-534. For an analogous US decision see Schlake v Beatrice Production Credit Association (1979) F 2d 278. A farmer applied to a government agency for a loan. He had previous successful applications. The loan was reduced by one-third. Gibson CJ noted that credit-worthiness can alter radically within a short period of time, and therefore in the absence of contract there was no “legitimate entitlement' to receive it. Procedural due process was not attracted.

159 See Daniel v Goliday (1970) 398 US 73.

160 [1977] 1 NSWLR 505, 518-519, per Hutley JA, 550-552 per Mahoney JA.

161 [1981] 2 NZLR 619.

162 Ibid 624-625.

163 Eg Ex parte McCarthy; Re The Milk Board (1934) 35 SR (NSW) 47; R v Betting Control Board; Ex parte Stone [1948] Tas SR 4. For a wider view see — Stiniato v Auckland Boxing Association (Inc) [1978] 1 NZLR 1, 11-13 per Woodhouse J. For an attempted rationalization of licence application cases see — EI Sykes and RR S Tracey, “Natural Justice and the Atkin Formula” (1976) IO Melb U L Rev 546, 569-570; E I Sykes, DJ Lanham and R R S Tracey, General Principles of Administrative Law (2nd ed 1984) 161-163.

164 [1980] Qd R 1.

165 Contra R v Cremin; Ex parte Ryan [1977] Qd R 354.

166 Cf Erdelyi v O'Brien (1982) 680 F 2d 61.

167 Above p 48.

168 [1980] 1 NZLR 355.

169 He found the by-law to be ultra vires — ibid 357-366.

170 See similarly R v Gaming Board for Great Britain; Ex parte Benaim and Khaida [1970] 2 QB 417. In Jim Harris Ltd v Minister of Energy [1980] 2 NZLR 294 for 23 years the applicant had tendered successfully for two-year term cartage licences. The failure to grant a twelfth licence was held to have “resulted in the frustration of a settled or legitimate expectation about the way the contract was to be awarded” (at 297). In R v Huntingdon District Council; Ex parte Cowan [1984] I All ER 58 a music and dancing licence had been granted in 1979 and renewed for three years. In 1983 legislation governing the grant of such licences came into force. The complainant applied for but was refused a further licence. It had been the universal practice before 1983 to give a hearing. These are classic facts on which to apply the “legitimate expectation” doctrine. However, Glidewell J simply held that the exercise of a licensing function normally attracts a right to natural justice (at 64). This conclusion is either an aberration or an extension of the general rule outlined above (text p 57) — see B Hough, “The Role of Natural Justice in Licensing Cases: A New Trend” [1984] Law Society's Gazette 1430.

171 See generally: Ridge v Baldwin [1964] AC 40, 65; Vidyodaya University of Ceylon v Silva [1964] 3 All ER 865; Melsness v Minister for Social Security aod Community Health [1982] 3 All WWR 206; C Okpaluba, “Dismissal at Pleasure — the Persistence of an Anachronism” (1977) 6 Anglo-American L Rev 284. The courts may be becoming less reluctant — see Malloch v Aberdeen Corporation [1971] 1 WLR 1578, 1597 per Lord Wilberforce.

172 Supreme Court of NSW, Administrative Law Division, 27 June 1980, unreported decision of Rogers J.

173 Ibid (transcript) 14.

174 On appeal the NSW Supreme Court concluded that the statute did not allow for dismissal at will — [1981] I NSWLR 675, 679.

175 Below pp 64-67.

176 See Fowell v Ioannou (1982) 65 FLR 360, 381-382 per Woodward J. Sheppard J thought differently at first instance — (1982) 43 ALR 415, 433. See also below p 64.

177 (1982) 46 ALR 123.

178 Migration Act 1958 (Cth) s 66E; Pochi v Minister for Immigration and Ethnic Affairs (1981) 36 ALR 561, 564.

179 (1982) 46 ALR 123, 130 lines 3-24.

180 Ibid lines 25-31.

181 Eg Unlogenc v Minister for Immigration and Ethnic Affairs (1982) 43 ALR 569, 572.

182 (1982) 46 ALR 123, 132 lines 6-8.

183 Ibid 130 lines 36-45. Compare in the US — Connecticut Board of Pardons v Dumschat (1981) 452 US 458 where the Supreme Court held that the statistical probability of commutation of sentence was irrelevant to the question whether procedural due process was attracted to a refusal to reduce a life-term inmate's imprisonment period.

184 Above p 43. There was perhaps a course of conduct as well as the undertaking, given that other aliens who presented themselves presumably were allowed to stay in Australia. This does not appear from the case itself.

185 This has been seen as necessary to attract procedural due process in some US cases — see Leis v Flint (1979) 439 US 438, 442; Williams v Barry (1980) 490 F Supp 941, 946;Winkler v County of Deklab (1981) 648 F 2d 411, 413; Fredericks v Vartamain (1981) 529 F Supp 265, 267; Paice v Maryland Racing Commission (1982) 539 F Supp 458,461; Hadley v County of Du Paqe (1983) 715 F 2d 1238, 1242.

186 A US case provides another example. In Depra P v Turlington (1981) 644 F 2d 397 a scholastic aptitude test was introduced as a prerequisite to being awarded a high school diploma. The US Court of Appeals (5th Circuit) held that the government in establishing a school system, making it compulsory and in the past requiring only school courses to be passed for a diploma, had created an “expectation” that no other test was required. It was protected by procedural due process: 403-404.

187 [1980] 2 All ER 368.

188 For a criticism of the decision see: I Ward, R, 'Cinnamond v British Airports Authority'(1980) 44 Mod L Rev 103Google Scholar.

189 Below p 72. For an example of a “course of conduct” case in Canada where “legitimate expectation” is referred to, see — Re Bennett and Wilfred Laurier University (1983) 43 OR (2d) 123.

190 Bath, V, “Heatley v Tasmania Racing and Gaming Commission” (1978) 9 F L Rev 504,508Google Scholar.

191 Cane, P, “Natural Justice and Legitimate Expectation” (1980) 54 ALJ 546, 547Google Scholar.

192 See also Forbes v NSW Trotting Club Ltd (1979) 25 ALR l.

193 [1980] 2 All ER 368.

194 V Bath, “Heatley v Tasmanian Racing and Gaming Commission” (1978) 9 F L Rev 504, 508. Contra G A Flick, “Natural Justice Before the High Court of Australia: Three Recent Cases” [1978] NZLR 90, 93 note v.

195 Bennett and Fisher Ltd v Electricity Trust of South Australia (1962) 106 CLR 492; Bradley v Commonwealth of Australia (1973) l ALR 241; Director of Posts and Telegraphs v Abbott (1974) 2 ALR 625.

196 V Bath, “Heatley v Tasmanian Racing and Gaming Commission” (1978) 9 F L Rev 504, 508.

197 Eg Salemi (1977) 14 ALR 1, 37 lines 3-30 per Stephen J.

198 [1980] VR 561.

199 Ibid 568.

200 Above p 43.

201 Sornarajah, M, “Natural Justice, Fairness and Administrative Functions” (1977) 5 Tas U L Rev 268, 286Google Scholar.

202 Churches, S, “Justice and Executive Discretion in Australia” [1980] Public Law 397, 410-411Google Scholar.

203 [1982] VR 353. Cf Murchison v Keating (No 2) (1984) 54 ALR 386, 394-395.

204 Ibid 359.

205 See also Ralkon Agricultural Company Pty Ltd v Aboriginal Development Commission (1984) I FCR 210, 234; on appeal 14 December 1984, unreported (transcript) 13-14 per Fox & Woodward JJ. In the US see — Board of Regents of State Colleges v Roth (1972) 408 US 564, 577; Greenholtz v Inmates of Nebraska Penal and Correctional Complex (1979) 442 US 1, 11; Connecticut Board of Pardons v Dumschat (1981) 452 US 458, 465.

206 Above pp 60-61.

287 [1983] 2 WLR 735, 740.

208 See above p 43.

209 (1982) 64 FLR 131.

210 Ibid 142.

211 Ibid 143.

212 So termed by Woodward J commenting on this decision in Fawell v Ioannou (1982) 65 FLR 360, 382.

213 Though possibly they give rise to an expectation of a hearing — see below p 67.

214 (1983) 49 ALR 123. See also Khoury v Grey, Federal Court of Australia, 5 October 1984, unreported decision of Jenkinson J.

215 Ioannou v Fawell (1982) 43 ALR 415,433; Keller v Drainage Tribunal and Montague [1980] VR 449, 455 lines 37-40 per Murray J.

216 Below p 71.

217 Eg Charlton v Members of the Teachers Tribunal [1981] VR 831, 844 per McGarvie J; Ng Yuen-shiu v Attorney-General [1981] HKLR 352,372 per Li JA; and see the comments of Murphy Jin O'Rourke v Miller [1984] VR 277,292.

218 FAI Insurances (1982) 41 ALR 1, 40 lines 27-28 per Wilson J (Italics added); see also Heatley (1977) 14 ALR 519, 535 lines 41-45 per Barwick CJ.

219 Withdrawal of a right is of course protected by natural justice (above p 40) but note the wording of Aickin J in Heatley: ((1977) 14 ALR 519, 535 lines 42-43) “an expectation that some form of right ... will not be taken away ... '.

220 (1977) 14 ALR 1, 19 lines 18-19.

221 (1977) 14 ALR 519, 535 lines 42-44 (Italics added).

222 (1982) 41 ALR 1, 20 lines 20-22 (Italics added). See also Nicol v Attorney-General for Victoria [1982] VR 353, 357.

223 (1982) 43 ALR 415.

224 On appeal Bowen CJ and Northrop J found it unnecessary to discuss natural justice. Woodward J rejected any implication of natural justice but did not discuss the reasoning of Sheppard J — (1982) 65 FLR 360, 381-382. The High Court found in favour of Ioannou without reference to natural justice — (1984) 52 ALR 460.

225 (1982) 64 FLR 131.

226 Ibid 143-144. Similarly see Gourgaud v Lawton (1982) 42 ALR 117, 124 per Davies J;Gardner v Dairy Industry Authority [1977] 1 NSWLR 505, 552 per Mahoney JA.

227 Cunningham v Cole (1982) 64 FLR 131, 143 lines 1-3 “In any given case the legitimacy of the expectation should be determined by reference to ordinary standards of fairness”; Ioannou v Fawell (1982) 43 ALR 415, 433 lines 38-40 “I see no reason in the present case why the law should be out of step with the dictates of what society would regard as a necessary step in the reaching of a just solution '.

228 (1982) 40 ALR 61.

229 Ibid 68. See also Willarra Pty Ltd v McVeigh (1984) 54 ALR 65, 117 lines 21-25 per McGregor J.

230 (1984) 1 FLR 287.

231 Ibid 298.

232 Supreme Court of NSW, Administrative Law Division, 27 June 1980, unreported decision of Rogers J. See above p 58-59.

233 Ibid (transcript) 17-20.

234 [1972] 2 QB 299.

235 (1977) 14 ALR 1, 7-8.

236 [1981] HKLR 352.

237 Ibid 373.

238 Ibid 366.

239 [1983] 2 WLR 735.

240 [1964] AC 40, see P Jackson, “Legitimate Expectations and Good Administration'' (1983) 99 LQR 499.

241 (1983) 49 ALR 123, 131-133 esp.

242 See also Ralkon Agricultural Company Pty Ltd v Aboriginal Development Commission (1984) 1 FLR 210,234; Willarra Pty Ltd v McVeigh (1984) 54 ALR 65,16-117,per McGregor J.

243 See R v Ward; Ex parte Brambles Holdings Ltd ( 1983) 34 SASR 269, 284-285 per Wells J.

244 Eg R v Liverpool Corporation [1972] 2 QB 299, 310 per Roskill LJ; Salemi (1977) 14 ALR 1, 34 lines 27-38, 37 lines 3-16 per Stephen J; Ng Yuen-shui v Attorney-General [1981] HKLR 362, 365-366 per McMullin V-P; Attorney-General Hong Kong v Ng Yuen-shiu [1983] 2 WLR 735, 742. For a general discussion of estoppel of government undertakings see — P McDonald, “Contradictory Government Action: Estoppel of Statutory Authorities” (1979) 17 Osgoode Hall Law Journal 160; Ng Yuen-shiu v Attorney-General [1981] HKLR 352,364-365 per McMullin V-P, 373-374 per Li JA; Salemi (1977) 14 ALR 1, 37 lines 16-39 per Stephen J.

245 Ng Yuen-shiu v Attorney-General [1981] HKLR 352, 360 per McMullin V-P.

246 Chief Constable of North Wales v Evans [1982] I WLR 1155, 1160 per Lord Hailsham LC, 1173-1175 per Lord Brightman; Re Evershed and The Queen in Right of Ontario (1984) 5 DLR (4th) 340, 344 per Steele J.

247 Eg D Clark, “Natural Justice: A Critical Examination of In Re Thomas Cord” (1980) 10 Hong Kong Law Journal 136, 158; Dunlop v Woollahra Municipal Council [1975] 2 NSWLR 446, 470F.

248 (1977) 14 ALR 1, 6 lines 3-11 and 32-37 per Barwick CJ, 20 lines 29-37 per Gibbs J.

249 Ibid 36 lines 24-25 per Stephen J, 48 lines 6-11 per Murphy J.

250 For other possibilities see D Clark, “Attorney-General v Ng Yuen-shiu” (1983) 13 HKLJ 395, 399. It is also the case that the “legitimate expectation” concept may have an operation beyond natural justice. A role in interpretation of statutory locus standi tests has been posited — R v Ward; Ex parte Brambles Holdings Ltd (1983) 34 SASR 269, 277-278 per Zelling J; O'Reilly v Mackman [1982] 3 WLR 1096, 1101 lines A-B; see generally J L Caldwell, '"Legitimate Expectation' and the Rules of Natural Justice” (1983) Cantab L Rev 45, 49-50.

251 AL Goodhart, “Ridge v Baldwin: Administration and Natural Justice” (1964) 80 LQR 105, 115.

252 C A Reich, “The New Property'” (1964) 73 Yale Law Journal 733; R v Mackellar; Ex parte Ratu (1977) 137 CLR 461, 483-484 per Murphy J; cf R Sackville, “Property Rights and Social Security'” (1978) 2 UNSWLJ 733.

253 Eg L J King, “The Role of the Judiciary in Relation to Public Administration” (1980)39 Australian Journal of Public Administration 1, 5.

254 In the US the courts explicitly take account of the need to maintain administrative efficiency — Matthews v Eldridge (1976) 424 US 319, 335; United States v Raddatz (1980) 447 US 667,677; see generally J E Ormrond, “Supreme Court's Views as to Propriety Under Federal Constitution's Due Process Guarantees of Summary Administrative Deprivation of Property Interest” (1982) 69 L Ed 2d 1044, 1064-1065.

255 Eg J J Bray, “Natural Justice”(1970) 29 Australian Journal of Public Administration 1, 11-12; H Whitmore and M Aronson, Review of Administrative Action (1978) 43.

256 Eg Young, E, “Developing a System of Administrative Law?” in P Robson & P Watchman (eds) Justice, Lord Denning and the Constitution (1981) 157, 177Google Scholar.

257 Mullan, D J, “Developments in Administrative Law: The 1978-1979 Term” [1980] 1 Supreme Court Law Review 1, 14Google Scholar.

258 Eg Brennan J: President, Administrative Appeals Tribunal 1976-1979, President (ex officio), Administrative Review Council 1976-1979; Davies J: President, Administrative Appeals Tribunal 1979-, Member (ex officio), Administrative Review Council 1979-; Neaves J: Secretary, Attorney-General's Department 1979-1983.

259 Above pp 48.

260 (1982) 41 ALR 1, 54 line 5.

261 Ibid 55. Though it may extend beyond “rights” to the extent of damage to “reputation” above p 49.

262 V Bath, “Heatley v Tasmanian Racing and Gaming Commission” (1978) 9 FL Rev 504,509.

263 Russell v Duke of Norfolk [1949] 1 All ER 109, 118 per Tucker LJ; Mobil Oil v Federal Commissioner of Taxation (1963) 113 CLR 475, 504 per Kitto J; Dixon v Commonwealth (1981) 3 ALD 289, 294-295; Ansell v Wells (1982) 43 ALR 41; National Companies and Securities Commission v The News Corporation Ltd (1984) 52 ALR 417.

264 Eg FAI Insurances (1982) 41 ALR 1, 27 lines 19-24 per Aickin J; S Churches, “Justice and Executive Discretion in Australia” [1980] Public Law 397, 423.

265 Eg R v Aston University Senate; Ex parte Roffey [1969] 2 QB 539, 552 per Donaldson J, 556 per Blain J; Maxwell v Department of Trade [1974] QB 523, 539 per Lawton LJ; Pearlberg v Varty (Inspector of Taxes) [1972] 2 All ER 6; Bates v Lord Hailsham of St Marylebone [1972] 1 WLR 1373; Breen v AEU [1971] 2 QB 175; Cinnamond v BAA [1980] 2 All ER 368. But see O'Reilley v Mackman [1982] 3 WLR 1096, 1101 lines A-B, 1105 line A (HL). See generally Dunlop v Woollahra Municipal Council [1975] 2 NSWLR 446, 467- 473.

266 There are a surfeit of articles debating the adoption of this notion. The major ones include ” Australia: M Sornarajah, “Natural Justice, Fairness and Administrative Functions” (1977) 5 Tas U L Rev 268; GD S Taylor, “Fairness and Natural Justice ” Distinct Concepts or Mere Semantics?” (1977) 3 Mon UL Rev 191; GD S Taylor, “Natural Justice The Modem Synthesis” (1975) 1 Mon UL Rev 258; D Bernie, R Dalgleish & P Punch, “Natural Justice and the Duty to Act Fairly” [1977] UNSWLJ 27. United Kingdom: NP Gravells, “Fairness as the Basis of Procedure for Decision-Making Bodies” (1976) 39 Mod L Rev 342; D H Clark, “Natural Justice: Substance and Shadow [1975] Public Law 27; C P Seepersad, “Fairness and Audi Alteram Partem” [1973] Public Law 242. New Zealand: B V Harris, “Lower Hutt City Council v Bank: The Principles of 'Fairness'” (1980) 3 Otago L Rev 405; J F Northey, “Pedantic or Semantic” [1974] NZLJ 133; J L Caldwell, “The Duty to Act Fairly in Administrative Law” [1980] NZLJ 142; D L Mathieson, “Executive Decisions and Audi Alteram Partem” [1974] NZLJ 277. Canada: DJ Mullan, “Fairness: The New Natural Justice” (1975) 25 Toronto ULJ 281; M Loughlin, “Procedural Fairness: A Study of Crisis in Administrative Law Theory” (1978) 28 Toronto ULJ 215.

267 See eg Griffiths, J, “Legislative Reform of Judicial Review of Commonwealth Administrative Action” (1978) 9 Fed L Rev 42, 51-52Google Scholar.

268 Eg Salemi (1977) 14 ALR 1, 18 lines 36-44 per Gibbs J, 35 lines 6-11 per Stephen J. The distinction would appear to have been accepted in Canada ” see Re Nicholson and Ha/dimand-Norfolk Regional Board of Commissioners of Police (1978) 88 DLR (3d) 671; Martineau v Matsqui Institution Disciplinary Board (No 2) (1979) 106 DLR (3d) 385, 405- 406 per Dickson J esp.

269 V Bath, “Heatley v Tasmanian Racing and Gaming Commission” (1978) 9 L Rev 504, 510-511.

270 Ibid 509 (Italics added).

271 (1982) 64 FLR 131; (1983) 49 ALR 123.

272 [1980] Qd R I.

273 Ridge v Baldwin [1964] AC 40, 64-65 per Lord Reid.

274 Eg Ahern v Deputy Commissioner of Taxation (Qld) (1983) 50 ALR 177, 185-186.

275 Taylor, G D S, “Natural Justice ” The Modern Synthesis” (1975) 1 Mon U L Rev 258Google Scholar; Churches, S, “Justice and Executive Discretion in Australia” [1980] Public Law 397, 406-407, 419 et seqGoogle Scholar.

276 At p 48. This list is not exhaustive. Other relevant factors may include the existence of procedural protection in the legislation; and the nature of the repository of the power see Cooper v Wandsworth Board of Works (1863) 14 CB (NS) 180, 190; 143 ER 414,418; Salemi (1977) 14 ALR 1, 19; G D S Taylor, “Natural Justice — The Modern Synthesis” (1975) l Mon U L Rev 258, 264-266. For the relevance of the repository of the power — see generally FAI Insurances (1982) 41 ALR I, 3-4 per Gibbs CJ, 6-9 per Stephen J, 14-20 per Mason J, 23-24 per Murphy J, 28-33 per Aickin J, 42-45 per Wilson J, 57-59 per Brennan J. See M Sneddon, “FAI Insurances Ltd v Winneke and Others” (1982) 13 Melb U L Rev 642, 644-647.

277 In the US see — Board of Regents of State Colleges v Roth (1972) 408 US 564; Perry v Sinderman (1972) 408 US 593.

278 Above p 48.

279 Injury to character would seem to underpin some Australian decisions but it is rarely explicitly relied upon to attract natural justice. Eg Heatley (1977) 14 ALR 519, 539 lines 30-36 per Aickin J; Salemi (1977) 14 ALR l, 36 lines 33-36 per Stephen J; FAI Insurances (1982) 41 ALR 1, l3 line 49 per Mason J, 55 lines 36-42 per Brennan J. In Heatley (l977) 14 ALR 519, 525 lines 3-4 Murphy J based his decision on this ground. Arslan v Durrell (1983) 48 ALR 577, above p 54, could perhaps have been decided on this basis. See generally M Sornorajah, “Natural Justice, Fairness and Administrative Functions” (1977) 5 Tas U L Rev 268, 285. In the US see Board of Regents of State Colleges v Roth (1972) 408 US 564; Orloff v Cleland (1983) 708 F 2d 372, 378.

280 Eg Gardner v Dairy Industry Authority [1977] l NSWLR 505. Above pp 56-57.

281 Eg Salemi (1977) 14 ALR 1.

282 See generally FAI Insurances (1982) 42 ALR I, 43-44 per Wilson J.

283 Above pp 68-69.

284 Heatley (1977) 14 ALR 518 provides an exception to this general rule.