Re Otis Elevator Co. (HK) Ltd.
Read the full judgment text of HCMP 3609/1993 on BabelCite. This High Court CFI judgment was delivered on 6 June 1994.
1. This is an application by Otis Elevator Co. (H.K.) Ltd (Otis) for declarations and orders of certiorari and prohibition in respect of a decision of the Registered Lift Contractors Disciplinary Board (the Board) which is appointed under s. 11E of the Lifts and Escalators (Safety) Ordinance, Cap. 327, dated 28th September 1993. The application is brought pursuant to leave given by Liu, J on 18th October 1993.
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HCMP003609/1993 1993, No. MP 3609 IN THE SUPREME COURT OF HONG KONG HIGH COURT ____________
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Date of Hearing : 15 and 18 April 1994 Date of handing down of judgment : 6 June 1994 ________ JUDGMENT ________ 1. This is an application by Otis Elevator Co. (H.K.) Ltd (Otis) for declarations and orders of certiorari and prohibition in respect of a decision of the Registered Lift Contractors Disciplinary Board (the Board) which is appointed under s. 11E of the Lifts and Escalators (Safety) Ordinance, Cap. 327, dated 28th September 1993. The application is brought pursuant to leave given by Liu, J on 18th October 1993. 2. The relief sought is as follows:
Background 3. The background to this matter is that the applicant, a very well known lift contractor in Hong Kong, was responsible for the maintenance of the lifts at Block 1, Scenic Garden, 9 Kotewall Road, Midlevels, Hong Kong. On 14th March 1992 while maintenance work was being carried out on one of the lifts a tragic accident occurred wherein a member of the public fell down a lift shaft and was killed. As a result of that the Director of Electrical and Mechanical Services (the Director) brought the matter to the notice of a Disciplinary Board appointed under s.11E of the Ordinance as it appeared to him that the applicant had in the carrying out of the lift works being guilty of negligence or misconduct. The charges which were brought by the Director were: Charge A 4. The applicant did fail to take the necessary safety measures to safeguard the public against the risk of accident when engaged in the repair of lift No. 2 in that it (i) bypassed the door safety circuits of the lift under its normal mode of operation, and (ii) failed to disable the car door operator so as to prevent the opening of the car door and landing door of lift No. 2, and (iii) failed to switch the lift to inspection mode. Charge B 5. When engaged in the repair of lift No. 2 did fail to ensure that the safety requirements laid down in Electrical and Mechanical Services Department Circular No. 2/91 of 9th July 1991 were complied with by its employees, in particular by one IP Lai-chuen, lift mechanic, in that (i) it failed to put up conspicuous notices in Chinese and English on the landing doors of lift No. 2 to notify the intended users that the lift was out of service; (ii) it failed to block the lift car entrance such that intended users could not inadvertently enter the lift car. 6. It was alleged that in each case the applicant had been guilty of negligence. S.11G provides that a charge may be brought if the Director considers that the negligence has been such as to-
The section goes on to provide in sub-section (2) that if, after due inquiry, the disciplinary board is satisfied that the lift contractor has been guilty of such negligence it may order:
7. The letter from the Chairman of the Board which was set up to hear this complaint begins with the following words:
8. The letter then goes on to set out the penalties that may follow. A finding that the applicant had been negligent and finishes with the following paragraph:
The letter is signed "Hubert N.H. POON, Chairman of the Board". The Relevant Law 9. Section 11E of the Ordinance provides as follows:
10. There is a right of appeal from a decision of a disciplinary board and this is provided by section 11I. It reads as follows:
11. Section 8A of the Ordinance which is contained within the section dealing with registered lift engineers and registered escalator engineers provides that the Secretary for Planning, Environment and Lands may appoint a panel of persons which shall consist of not more than 20 members, of whom not more than 5 shall be members of the Hong Kong Institution of Engineers who are qualified as mechanical or building services engineers, 5 shall be members of the Hong Kong Institution of Engineers who are qualified as electrical or electronic engineers, not more than 5 shall be registered lift engineers or registered escalator engineers, and not more than 5 shall be engineers whose names are included in list II kept under section 3(2)(b) of the Buildings Ordinance. The section goes on to provide that no person shall be appointed to be a member of the Board unless he has been in practice in Hong Kong for a period of at least 10 years and has been recommended by the Director after consultation with the appropriate Institution of which he is a member. Members of the Board panel shall be appointed for 3 years but shall be eligible for re-appointment and may resign at any time. 12. The relevant part of section 8 of the Bill of Rights Ordinance provides as follows:
13. The Board appointed to hear the charges against the applicant considered as a preliminary issue the question of whether sections 11E(1), (2) and (3) of the Ordinance admitted of a construction consistent with Article 10 of the Hong Kong Bill of Rights and whether or not the limitation period of 6 months as prescribed in section 28(4) of the Ordinance applied to the disciplinary proceedings against the applicant. In a decision dated 28th September 1993 the Board ruled that sections 11E(1), (2), (3) of the Ordinance did admit of a construction consistent with the Hong Kong Bill of Rights and that the limitation period did not apply to disciplinary hearings. I am concerned here only with the first issue, that of the effect of the Bill of Rights. 14. It is the case for the applicant is that having come to the conclusion that a contractor may have been guilty of negligence and that a disciplinary board should be set up to consider the matter, the Director is the accuser and should not then sit on the Board himself. 15. Section 3(2) of the Bill of Rights states that:
16. The Director having formed an opinion that a registered lift contractor has been guilty of negligence or misconduct, he should not sit as a member of the panel to decide that very issue. Even if the Director or his representative is in fact impartial, there must be the appearance of a possibility of bias. 17. I have been referred to a numerous decisions of the European courts in giving rulings on possible breaches of the convention on human rights upon which the Hong Kong Bill of Rights is based. While helpful, I find there are two decisions which in my view govern this matter and set out the principles very succinctly indeed. 18. The first is the decision of the House of Lords in R. v. Gough (1993) AC 647. The facts are in no way similar to those here but Lord Goff sets out the principles and reviews all the previous decisions on the question of bias. 19. Firstly Lord Goff considers the question of real bias or possible bias and he says at 659:
20. Lord Goff goes on at 661:
21. Lord Goff then goes on to review in considerable detail the previous decisions relevant to this subject. He cites in particular Metropolitan Properties Co. (F.G.C.) Ltd. v. Lannon (1969) 1 Q.B. 577. At 599 Lord Denning M.R. said:
22. Lord Goff however considers that that statement laid down a somewhat different test to that of Edmund Davies L.J. in R. v. Barnsley Licensing Justices. He had said:
He went on:
23. Having considered these authorities Lord Goff said at 668:
He concludes at 670:
24. I am satisfied that the test to be applied in considering whether a person should not sit in a judicial or quasi-judicial capacity when considering any particular matter is whether or not there is a real possibility that he might be biased. 25. A very similar question arose in Wong Pun-cheuk v. Medical Council of Hong Kong and the Attorney General [1964] HKLR 47. There, regulation 15 of the Dangerous Drugs Regulations provided that if the Director of Medical and Health Services was of the opinion that there was reason to think that a registered medical practitioner might be utilising dangerous drugs otherwise than for medical treatment, the Director could refer the case to the Medical Council for examination and consideration and if the Medical Council so recommended the Director might by notice in the gazette withdraw the authorisation of the medical practitioner to be in possession of or to supply the drugs. The Director wrote a letter to the plaintiff, a medical practitioner, informing him that his use of a certain drug had been referred to the Medical Council for examination and the plaintiff was invited to attend a meeting of the Medical Council to explain and justify to the Council his purported excessive use of the drug. An inquiry was duly held by the Medical Council at which the Director was not only a member of the Council but was acted as Chairman. The Council found that the plaintiff had made excessive use of the drug and his authorisation was withdrawn. Section 3 of the Medical Registration Ordinance stated that:
26. There is no need to set out the rest of the section but it is similar to section 11E of the Ordinance. It also provides in sub-clause (5) that the Director shall be Chairman of the Council. The only difference in principle from section 11E of the Ordinance is that there is no provision for the Director acting through a representative. 27. Scholes J considered very fully the representations which had been made to him by counsel and the then relevant authorities and first of all came to the conclusion that the Medical Council, a body entrusted with adjudication in disciplinary proceedings in respect of medical practitioners, was a quasi-judicial body and was required to do natural justice and to act judicially. He then went on at 79:
28. Scholes J therefore for those reasons came to the conclusion that regulation 15 on the Dangerous Drugs Regulation was ultra vires the enabling powers in section 11 of the Dangerous Drugs Ordinance. 29. Mr. Bridge who appears here for the applicant relies on that authority together with other more recent decisions in the European Court of human rights such as Piersack v. Belgium (1982) 5 EHRR 169 where the court held that:
30. In DeCubber v. Belgium (1984) 7 EHRR 236, it was held that
31. Complaint is also made by the applicant that the Director is a person who makes recommendations to the Secretary for Planning, Environment and Lands as to the appointment of members of the Disciplinary Board Panel pursuant to Section 8A of the Ordinance. Not only therefore is he to be the Chairman of any Disciplinary Board which is set up but he is the person who obviously plays the major role in deciding who shall be the other members of the Disciplinary Board. That again is contrary to section 8 of the Bill of Rights. 32. For the respondents it was argued by Miss Linda Shine, Senior Crown Counsel that the provisions for the appointment of the members of the Disciplinary Panel and of the Director or his representative as Chairman of the Disciplinary Board did not contravene section 8 of the Bill of Rights Ordinance. Her submissions were but that section 11I provides an unlimited right of appeal from any decision of the Board to a Judge of the High Court and if there was such an appeal it would be by way of re-hearing pursuant to Order 55 rule 3 of the Rules of the Supreme Court. The Judge's decision would then be final. She submits that therefore it is the constitution of the High Court which must meet the requirements of the Bill of Rights. Reliance is also placed on Campbell and Fell v. United Kingdom (1984) 7 EHRR 165. There it was held that in determining whether a body could be considered independent of the executive and the parties the court should have regard to the manner of appointment of its members, the duration of their terms of office, the existence of guarantees against outside pressures and the appearance of independence. That case was concerned with the hearing of disciplinary charges by the Visitors of one of her Majesty's prisons such Visitors having been appointed by the Home Secretary. Although members of the Boards of Visitors were appointed for relatively short periods by the Home Secretary, they were subject to removal by him and were closely involved in supervising the administration of the prison. They were in practice irremovable and acted independently in their adjudicatory functions. There was no evidence to rebut the presumption of the personal impartiality of niembers of a tribunal nor in the organisation of the adjudicates and process was there any appearance of a lack of impartiality. The court held that there was no evidence of any unfairness or miscarriage of justice in the conduct or outcome of the proceedings. 33. It was also submitted that in this case the Chairman was not in fact the Director and had played no part in the process prior to actually sitting in the case. He was sitting in his personal capacity and had no way of referring back to the Director once the disciplinary hearing proceeds. Mr. Albert Poon is the Assistant Director of an entirely different division of the Electrical and Mechanical Services Department from the one which is involved with lift contractors. 34. It was submitted by Miss Shine, referring to the notes of procedure to be adopted at the hearings which are supplied to the applicant, that at the beginning of the enquiry the Chairman would confirm with the interested parties that they have no objection to the composition of the Board. The case is not presented by the Director himself but by Crown Counsel. She did however concede that in the notes of procedure it states that he is "Counsel for the Director". 35. Heavy reliance was also placed by Miss Shine on the presumption of impartiality. She referred to Albert & Le Compte v. Belgium (1983) 5 EHRR 533 at 543. The court said:
36. It was submitted that here the Director is not both the judge and the prosecutor in its own cause. Reliance was placed on Leeson v. General Council of Medical Education and Registration (1889) 43 Ch. 366. There, the General Council sat to consider a complaint brought by the Medical Defence Union against a practitioner for infamous conduct. Of the 29 persons who conducted the enquiry, it was discovered that 2 were actually members of the Medical Defence Union. At 381 Cotton L.J. said:
37. Bowen L.J. at 384 said:
However having said that he goes on:
38. Fry L.J. took the opposite view and found that as the Medical Defence Union was the complainant membership of that organisation by two of the persons who sat on the Board was sufficient to make its decision invalid. 39. I am satisfied that the general provisions relating to the appointments by the Secretary for Planning, Environment and Lands under section 8A(1) of the Ordinance does not offend against the Bill of Rights merely because under ss.(2) such person shall not be appointed unless they have been recommended by the Director. In the case of members who are to be from the field of mechanical or building services engineers or electrical or electronic engineers, the Director must consult the appropriate institution. It seems to me that the manner in which the panel is appointed is proper and would not give the slightest impression of partiality. It is difficult to see how a panel could be appointed in any other way. I am satisfied that the Crown rightly can rely on what was said in Campbell & Fell v. United Kingdom for that proposition. I am however equally satisfied that the provision in section 11E(2)(d) that the Director or his representative shall be a member of the Disciplinary Board appointed under that section clearly does contravene section 8 of the Bill of Rights. There can in my view be no doubt whatever that the Director is the prosecutor or complainant. The very wording of the letter to the appellant from the Director which begins "The Director of Electrical and Mechanical Services has brought charges against you" makes that absolutely clear. I do not think it matters what word is used and it is therefore wrong for him or his representative to sit on the Board and even more so to be the Chairman. This is in my view a clear case of a person sitting as a judge in his own course. As Scholes J. said in Wong Poon-chuek at 79,
The situation here, it seems to me, is virtually identical. 40. It has been stressed by the Crown that in this case the Director did not intend to sit himself as Chairman of the Board but had appointed Mr. Poon as his representative, Mr. Poon being the head of another division of the Department. There is of course not the slightest suggestion that Mr. Poon would in fact be other than impartial and independent but that is not the point. He is sitting as the Director's representative and as such must be standing in the shoes of the Director. As was said in Gough bias is an insidious thing. A person may not consider that he is being in any way biased but if his position is such that he could unconsciously be biased then he should not sit as part of a tribunal exercising quasi-judicial functions. To quote the classic phrase of Lord Hewart in Sussex Justices "Justice must not only be done but must be seen to be done." 41. I therefore have no doubt that section 11E II(d) of the Ordinance whereby the Director or his representative shall be a member of the Disciplinary Board appointed under the section is inconsistent with the Bill of Rights and must be deemed to have been repealed as from the 6th June 1991. There will accordingly be an order of certiorari to remove into the High Court and quash the decision of the Disciplinary Board delivered on the 28th September 1993 and a declaration that the Board was invalidly appointed. It would follow that the Board would have no jurisdiction to hear the complaint against the applicant. 42. The applicant seeks a further order prohibiting the Director from appointing a new Board under section 11E to hear the complaint against the applicant. The only ground for doing so is that the manner in which the other members of the Board are appointed is also contrary to the Bill of Rights in that the members of the panel from which the Board is selected are appointed on the recommendation of the Director. I do not consider that there is anything improper in that and those provisions are not contrary to the Bill of Rights. I therefore decline to make that order. 43. There will however be liberty to either party to apply for any further consequential orders in the light of this decision. 44. There will be an order nisi that the applicant is to have the costs of this application.
Representation: Mr. John Bleach instructed by Wilkinson & Grist for Applicant. Miss Linda Shine, S.C.C., for Respondent. |
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