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ARTICLE · 28 DECEMBER 2015

High Court allows agreed civil penalty submissions with regulators

Corrs Chambers Westgarth
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The High Court set aside the Full Court decision and stated that regulators can actively make civil penalty submissions.

AustraliaLitigation, Mediation & Arbitration

On 9 December 2015, the High Court of Australia delivered its decision in Commonwealth of Australia v Director, Fair Work Building Industry Inspectorate; CFMEU v Director, Fair Work Building Industry Inspectorate (CFMEU)1 (see judgment here).

The High Court unanimously set aside the Full Court decision and reinstates in excess of twenty years of authorities relating to the ability of parties, such as the ACCC, ASIC and the ATO, and those that are the subject of civil prosecutions to make joint submissions to the Court about the appropriate pecuniary penalty or range of penalties that should be imposed.

FULL COURT DECISION

The Full Bench of the Federal Court concluded that:

"the public interest in the imposition of pecuniary penalties... leads to the conclusion that the fixing of the amount of such a penalty is a matter for the Court, and that the parties cannot, by agreement, bind it" 2.

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