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Date: Thu, 16 Nov 2006 11:10:52 +0100

From: Mårten Schultz

Subject: More on Magill v Magill

 

Neil's mail raises some very interesting questions that have started to pop up also in Swedish private law, but more often within other areas of the law than torts. What I think about is the more specific issue of the relationship between family law (and the values behind it) and torts or contracts (or enrichment/restitution, as the case may be).

I have recently come across a couple of tricky questions in this regard. (These are, by the way, "real" cases.)

1) Contracts regarding abortion. Partners A and B signs a contract under which B pays A a sum of money, and A promises in return to have an abortion should she turn out to become pregnant. She becomes pregnant, does not have the abortion. B claims compensation under the contract. Is the contract valid? If it isn't: Why? (This may be especially complicated in Sweden where abortion is not only legal, but generally not considered immoral.)

2) Damages under non-traditional marriage contracts. A and B, belonging to a religious minority, signs a contract before getting married, stating that if the man leaves the wife, he is obliged to pay damages with a fixed (large) sum. The underlying reason is that in this community, it is considered shameful for a woman to be left by her husband, but this social stigma is to some extend avoided if the man compensates the wife - the compensation is seen as a sign of guilt. Generally these types of contracts would probably not be binding. (In Sweden alimony is pretty much unthinkable between divorced parties.)

3) Sweden has an unclear position on wrongful birth and similar issues (in fact no such case has been tried by the Supreme Court, which is, of course, very strange). But a situation similar to that of Magill did come up in lower courts: A woman (a homosexual woman who wanted a child) "lured" a man by insisting that she used birth control pills and that no other protection from pregnancy was needed. She had also picked out the future father in a rather cunning way: She had asked what kind of work he had (including salary), address, etc. She became pregnant, and child support was claimed. Could the man have a claim in torts?

4) A wife and husband separate and divorce. At the time of the divorce they write a contract under which the man pays a lump sum for future child support. The mother later on receives child support under a tax paid child support scheme. The man claims the money back, saying that the mother was unjustly enriched at his expense.

Well, these were just some thoughts I had when I read these interesting comments.

 

Mårten

 

-----Ursprungligt meddelande-----
Från: Neil Foster
Skickat: den 16 november 2006 03:16
Ämne: ODG: [Spam?] More on Magill v Magill

Dear Colleagues;

I have had more time to read the High Court of Australia decision in Magill v Magill [2006] HCA 51 now and thought I would offer a few comments.

The decision is very interesting from a number of perspectives, and it raises squarely the issue of whether or not the law of torts should operate in a different way within the context of a marriage (or presumably other "domestic" relationships) from the way it operates between "strangers" or in a "commercial" context. Indeed, one of the underlying issues the court wrestles with is whether, if there are to be different rules between husband and wife, the relevant thing is their "status" as spouses or family members, or the nature of the alleged transaction (commercial, domestic, personal, sexual or some other description).

For those who may not recall: the case involved an action in deceit by Mr Magill against Mrs Magill, his former wife, based on the fact that the second and third of the three children born during their marriage turned out to be not his children, but the children of another man with whom his wife was sleeping during the marriage.

The issue of child support payments as such was not involved; I won't go into the details (partly because I don't understand the system very well!) but it seems that he had been adjudged liable to pay child support under a statutory scheme, and once his paternity was disproved he was entitled to a "credit" for payments previously made in relation to the later 2 children (but this didn't give him cash in the hand because he was behind in payments for the first child, who was his, so in effect all that happened there was that his payments for the other children discharged his liability for the first.) See para [67].

But what Mr Magill was claiming was damages for deceit based on personal injury in the form of depression suffered after hearing the news, and some financial loss based on time and money he had spent supporting the two younger children believing he was their father, along with exemplary damages. A fairly tacky list of claims to some extent, and no doubt most people would think his action was primarily motivated by hurt feelings and a desire for revenge.

While he received damages from a trial judge, the Victorian CA overturned the award on the basis that specific elements of the tort of deceit were not made out. The elements of the tort are set out (see [37] and [59]) as being (1) a representation (which may in some cases be by silence where there is a duty to speak); (2) made knowing that it was false (including some cases of wilful failure to check); (3) intending that it be acted on; (4) which has been acted and (5) has produced damage. It was found by the Victorian CA (and the HC all agreed) that (1) was not satisfied as there was no specific representation that the children were the father's [with some doubt about how to treat the application for birth certificate which the wife gave the husband to sign]; and also that in any case (4) was in grave doubt as the father did not, in treating the children as his, "act on" the birth certificate, but did so on the basis of various assumptions he made about the wife's faithfulness, etc. See Gleeson CJ at [43]-[45]. Even Heydon J, who came closest to finding for the father, agreed that there had been no relevant "reliance"- [167]-[172].

But should he have been able to bring the claim at all? Or should matters of sexual relations between the parties be regarded as a '"no-go" zone for the law? That was the issue that saw at least 4 different answers offered by the 6 members of the court who sat on the case. (I have no idea why Callinan J did not sit; maybe just administrative reasons.) The spectrum of views seems to go roughly in this order, from "no-go" zone to "apply the law equally to spouses as to everyone else".

(1) The one joint judgement, of Gummow, Kirby and Crennan JJ, concludes at [88] that "conduct which constitutes a breach of promise of sexual fidelity and any consequential false representation about paternity, occurring within a continuing sexual relationship, which is personal, private and intimate, cannot be justly or appropriately assessed by reference to bargaining transactions, with which the tort of deceit is typically associated". The judgement refers in general terms to Australia's "no-fault" Family Law Act 1975 to justify the law "butting out" of relationships between parties to a marriage in this area.

{They also refer in passing to Wilkinson v Downton and a possible tort of "intention to cause emotional harm", but say in [117] that these torts have been "subsumed" into negligence. I think the disappearance of Wilkinson v Downton would be a surprise to most Australian torts lawyers, especially since it was examined and applied with some care by Ashley J in the Supreme Court of Victoria in McFadzean v CFMEU [2004] VSC 289, and has been referred to with approval by the High Court on a number of occasions.}

(2) The judgement of Hayne J carves out a zone where deceit should not apply, but the zone is I think a little narrower than the above. At least it is differently formulated. At para [140] his Honour says: "The relevant principle that should be adopted is analogous, and of generally similar content, to that concerning contracts and family relations. (fn to Cohen v Cohen (1929) 42 CLR 91) That is, save in exceptional cases, representations made by one party to a marriage to another about the relationship between them (including, but not limited to, questions of paternity of children and sexual fidelity) are not intended by the parties to give rise, and are not to be treated by the law as giving rise, to consequences enforceable by an action for deceit."

Note the explicit parallel being drawn between the rule in contract law that some promises are not intended to give rise to a legal relationship within a family context, and the area of tort law. I must say I find this curious. I can understand saying that parties who choose to make promises may be deemed not to intend those promises to be legally actionable within a family (or social) context. But would most people also say "I understand that members of my family may lie to me at any time with no legal consequences"? There does indeed seem a gap here, between promising and lying.

(3) The judgement of Gleeson CJ is a bit hard to follow here, and seems (with respect) to want to have a foot in both camps. On the one hand his Honour says that representations should not be excluded from the law of deceit simply because of their "subject matter" - [22]. Nor, he says, are "marital relations a tort-free zone", nor is deceit never to be applied "between cohabiting parties or in respect of questions of paternity or marital or extra-marital relations" - [42]. Yet, he says, the "deeper problem" with the husband's case was not just that he failed to establish some of the elements of deceit, but that "the law of tort, like the law of contract, is concerned with 'duties and rights which can be dealt with by a court of justice' (fn to Rose and Frank), and the appellant's case was difficult to accommodate to that setting" - [42]. His concluding comments in paras [48]-[49] are along similar lines, which frankly I can't quite penetrate.

(4) Heydon J, at least, is clear. While the husband failed in this case, there are no areas of life where obligations created by tort law may not be dealt with. Indeed, he is at pains to point out that the agreement of all members of the Court that the husband failed to establish all the elements of deceit means that other comments made by the Court on the availability of deceit are in effect obiter dicta - see [173] ("not a necessary step towards dismissing the appeal"). Still, he is obliged to offer his views since other members of the Court have done so. He reviews some history and notes that in general tort litigation between spouses is an accepted part of the law - [197]. He notes that it is generally accepted that "honesty is a duty of universal obligation", quoting Viscount Haldane LC in Nocton v Lord Ashburton - [207]. Policy reasons as to why deceit should not be available between spouses on these sort of matters are not convincing - there are numerous cases where deceit has been relevant to financial dealings between spouses.

Conceding that in many cases plaintiffs will find it difficult to make a case is no reason to conclude the tort should not be available in an appropriate case- [211]. And he specifically rejects the "intention to create legal relations" analogy; if there is a link between this rule of contract and the law of tort, it is the element of the tort which requires that "the defendant intend that the plaintiff should act in reliance on the relevant representation".

He concludes (and I can't do his arguments justice here, of course) that there is no good reason for excluding the tort from this sort of case. Indeed, when it is considered what sort of consequences may follow from a person believing that someone is his child: "Provided the husband can prove damage and the other elements of deceit, it is not startling that the law should attach adverse financial consequences to the conduct of a person responsible for a lie which can so radically affect the husband's life" - [218].

It will be obvious that I think Heydon J's is the most convincing of the judgements.

I have omitted from this summary stuff which is relevant only to Australians - the significance of ss 119, 120 of the Family Law Act 1975, for example, which all the members of the court generally agree do not of themselves preclude the possibility of the action.

I know that some here will roll their eyes at the number of words and footnotes the HC has used to deal with this topic. But in fact it is a very complex area, there are things to be said for and against the issues from a number of points of view, and while I don't agree with all that they have said, I think it is not a bad system where the complexities can be aired and given a fair treatment.

(And no, I don't get paid by the word for these either!!)

 

 


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