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  • FAI Insurances LTD V Winneke (1982) 151 CLR 342: Facts

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    This case involved FAI Insurance Ltd, which had its workers' compensation insurance license renewal denied by the Governor in Council without being given an opportunity to respond to concerns. The High Court found that while the Governor's decision has discretion, it was still subject to review. The Court determined that FAI had a legitimate expectation that its long-held license would be renewed, so it was entitled to natural justice before the decision was made. The Governor's decision to deny renewal without seeking further information was declared void.

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    This case involved FAI Insurance Ltd, which had its workers' compensation insurance license renewal denied by the Governor in Council without being given an opportunity to respond to concerns. The High Court found that while the Governor's decision has discretion, it was still subject to review. The Court determined that FAI had a legitimate expectation that its long-held license would be renewed, so it was entitled to natural justice before the decision was made. The Governor's decision to deny renewal without seeking further information was declared void.

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    121 views2 pages

    FAI Insurances LTD V Winneke (1982) 151 CLR 342: Facts

    Uploaded by

    Hanzel
    This case involved FAI Insurance Ltd, which had its workers' compensation insurance license renewal denied by the Governor in Council without being given an opportunity to respond to concerns. The High Court found that while the Governor's decision has discretion, it was still subject to review. The Court determined that FAI had a legitimate expectation that its long-held license would be renewed, so it was entitled to natural justice before the decision was made. The Governor's decision to deny renewal without seeking further information was declared void.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    FAI Insurances Ltd v Winneke (1982) 151 CLR 342 - 09-25-2018

    by casesummaries - Law Case Summaries - http://lawcasesummaries.com

    FAI Insurances Ltd v Winneke (1982) 151 CLR 342

    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

    The decisions of Governor in Council's are reviewable under some circumstances

    1/2
    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.

    _______________________________________________

    Law case summary from www.lawcasesummaries.com

    2/2

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