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FAI Insurances LTD V Winneke (1982) 151 CLR 342: Facts
FAI Insurances LTD V Winneke (1982) 151 CLR 342: Facts
http://lawcasesummaries.com/knowledge-base/fai-insurances-ltd-v-winneke-1982-151-clr-342/
Facts
FAI Insurance Ltd had a licence to provide workers' compensation insurance, and had done for at
least twenty years.
The licence was issued by the Governor in Council under the Worker's Compensation Regulations
1975 (Vic).
In 1981, the Minister wrote to FAI stating it was their intention to deny the renewal of their
licence and that they would put this to the Governor in Council.
FAI wrote back, requesting an opportunity to provide a response to the concerns of the Minister,
before the decision was made.
The letter was forwarded to the Governor in Council but they sought no further information before
denying the renewal of the approval.
FAI Insurance appealed, stating this was a breach of natural justice.
Issues
1. Could the Courts review a decision of the Governor in Council, or was it ultra vires?
2. Was the decision not to renew the approval one that gave rise to the need for natural justice?
Held
In regards to question (1), the Solicitor General argued that the Court could not review the
decision as it was essentially an extension of the Minister's power and ministerial decisions are
generally not reviewable. However, Mason J stated that neither a minister or a governor may
exceed the scope of their statutory authority, and thus there was no reason the decision couldn't be
reviewed.
Mason J also held that although the statute did refer to 'discretion', it was not a completely
unfettered discretion as the regulations laid out certain criteria and therefore "the discretion is not
absolute".
Finally, Mason J addressed whether the renewal of the approval was reviewable. He held that it
was because it closely resembled the renewal of a licence and there was a legitimate expectation
that the licence would be reviewed. FAI's financial interests were clearly affected by the decision
not to renew approval.
Therefore, the decision to withhold the approval was declared void.
Significance
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FAI Insurances Ltd v Winneke (1982) 151 CLR 342 - 09-25-2018
by casesummaries - Law Case Summaries - http://lawcasesummaries.com
A legitimate expectation that a licence/approval would be renewed usually gives rise to the right
to natural justice.
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