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diff --git a/16130-8.txt b/16130-8.txt new file mode 100644 index 0000000..d425e16 --- /dev/null +++ b/16130-8.txt @@ -0,0 +1,3848 @@ +The Project Gutenberg eBook, Judgments of the Court of Appeal of New +Zealand on Proceedings to Review Aspects of the Report of the Royal +Commission of Inquiry into the Mount Erebus Aircraft Disaster, by Sir Owen +Woodhouse, R. B. Cooke, Ivor L. M. Richardson, Duncan Wallace McMullin, +and Sir Edward Somers + + +This eBook is for the use of anyone anywhere at no cost and with +almost no restrictions whatsoever. You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + + + + +Title: Judgments of the Court of Appeal of New Zealand on Proceedings to Review Aspects of the Report of the Royal Commission of Inquiry into the Mount Erebus Aircraft Disaster + C.A. 95/81 + + +Author: Sir Owen Woodhouse, R. B. Cooke, Ivor L. M. Richardson, Duncan +Wallace McMullin, and Sir Edward Somers + + + +Release Date: June 25, 2005 [eBook #16130] + +Language: English + +Character set encoding: ISO-8859-1 + + +***START OF THE PROJECT GUTENBERG EBOOK JUDGMENTS OF THE COURT OF APPEAL +OF NEW ZEALAND ON PROCEEDINGS TO REVIEW ASPECTS OF THE REPORT OF THE ROYAL +COMMISSION OF INQUIRY INTO THE MOUNT EREBUS AIRCRAFT DISASTER*** + + +E-text prepared by Jonathan Ah Kit, Ralph Janke, and the Project Gutenberg +Online Distributed Proofreading Team (https://www.pgdp.net) + + + +JUDGMENTS OF THE COURT OF APPEAL OF NEW ZEALAND ON PROCEEDINGS TO REVIEW +ASPECTS OF THE REPORT OF THE ROYAL COMMISSION OF INQUIRY INTO THE MOUNT +EREBUS AIRCRAFT DISASTER + +C.A. 95/81 + +In the Court of Appeal of New Zealand--Between Air New Zealand Limited, +First Applicant, and Morrison Ritchie Davis, Second Applicant, and Ian +Harding Gemmell, Third Applicant, and Peter Thomas Mahon, First +Respondent, and the Attorney-General, Fourth Respondent, and New Zealand +Airline Pilots Association, Fifth Respondent, and the Attorney-General, +Sixth Respondent. + + +_Coram_ + +Woodhouse P. +Cooke J. +Richardson J. +McMullin J. +Somers J. + + +_Hearing_ + +5, 6, 7, 8, 9 and 12 October 1981. + + +_Counsel_ + +L.W. Brown Q.C. and R.J. McGrane for first and second applicants. + +D.A.R. Williams and L.L. Stevens for third applicant. + +G.P. Barton and R.S. Chambers for first respondent. + +C.J. McGuire for fourth respondent (Civil Aviation Division)--leave to +withdraw. + +A.F. MacAlister and P.J. Davison for fifth respondent. + +W.D. Baragwanath and G.M. Harrison for sixth respondent. + + +_Judgment_ + +22nd December 1981. + + + + +JUDGMENT OF COOKE, RICHARDSON and SOMERS JJ. + + +On 5 August 1981, for reasons then given, this Court ordered that these +proceedings be removed as a whole from the High Court to this Court for +hearing and determination. They are proceedings, brought by way of +application for judicial review, in which certain parts of the report of +the Royal Commission on the Mount Erebus aircraft disaster are attacked. +In summary the applicants claim that these parts are contrary to law, in +excess of jurisdiction and in breach of natural justice. + +One of the reasons for ordering the removal was that it was important +that the complaints be finally adjudicated on as soon as reasonably +practicable. We had in mind that the magnitude of the disaster--257 +lives were lost--made it a national and indeed international tragedy, so +the early resolution of any doubts as to the validity of the report was +a matter of great public concern. Also the report contained very severe +criticism of certain senior officers of Air New Zealand. Naturally this +criticism must have been having damaging and continuing effects, as +evidenced for instance by the resignation of the chief executive, so it +was right that the airline and the individuals should have at a +reasonably early date a definite decision, one way or the other, on +whether their complaints were justified. + +In the event the hearing in this Court was completed in less than six +days. We had envisaged that some further days might be required for +cross-examination, as there were applications for leave to cross-examine +the airline personnel and the Royal Commissioner himself on affidavits +that they had made in the proceedings. But ultimately the parties +elected to have no cross-examination--and it should be made clear that +this was by agreement reached between the parties, not by decision of +the Court. With the benefit of the very full written and oral arguments +submitted by counsel, the Court is now in a position to given judgment +before the end of the year. + +We must begin by removing any possible misconception about the scope of +these proceedings. They are not proceedings in which this Court can +adjudicate on the causes of the disaster. The question of causation is +obviously a difficult one, as shown by the fact that the Commissioner +and the Chief Inspector of Air Accidents in his report came to different +conclusions on it. But it is not this Court's concern now. This is not +an appeal. Parties to hearings by Commissions of Inquiry have no rights +of appeal against the reports. The reason is partly that the reports +are, in a sense, inevitably inconclusive. Findings made by Commissioners +are in the end only expressions of opinion. They would not even be +admissible in evidence in legal proceedings as to the cause of a +disaster. In themselves they do not alter the legal rights of the +persons to whom they refer. Nevertheless they may greatly influence +public and Government opinion and have a devastating effect on personal +reputations; and in our judgment these are the major reasons why in +appropriate proceedings the Courts must be ready if necessary, in +relation to Commissions of Inquiry just as to other public bodies and +officials, to ensure that they keep within the limits of their lawful +powers and comply with any applicable rules of natural justice. + +Although this is not an appeal on causation or on any other aspect of +the Commission's report, the issues with which this Court is properly +concerned--the extent of the Commissioner's powers in this inquiry, and +natural justice--cannot be considered without reference to the issues +and evidence at the inquiry. We are very conscious that we have not had +the advantage of seeing and hearing the witnesses. It can be very real, +as all lawyers know. It is true that the kind of analytical argument we +heard from counsel, with concentration focused on the passages of major +importance in the report and the transcript of evidence, can bring +matters into better perspective than long immersion in the details of a +case. Necessarily this Court is more detached from the whole matter than +was the Commissioner. And several different judicial minds may combine +to produce a more balanced view than one can. But as against those +advantages, which we have had, there is the advantage of months of +direct exposure to the oral evidence, which he had. So we have to be +very cautious in forming opinions on fact where there is any room for +different interpretations of the evidence. + +Having stressed those limitations on the role of this Court, we think it +best to state immediately in general terms the conclusions that we have +reached in this case. Then we will go on to explain the background, the +issues and our reasoning in more detail. Our general conclusion is that +the paragraph in the report (377) in which the Commissioner purported to +find that there had been 'a pre-determined plan of deception' and 'an +orchestrated litany of lies' was outside his jurisdiction and contained +findings made contrary of natural justice. For these reasons we hold +that there is substance in the complaints made by the airline and the +individuals. Because of those two basic defects, an injustice has been +done, and to an extent that is obviously serious. It follows that the +Court must quash the penal order for costs made by the Commissioner +against Air New Zealand reflecting the same thinking as paragraph 377. + + +The Disaster + +In 1977 Air New Zealand began a series of non-scheduled sightseeing +flights to the Antarctic with DC10 aircraft. The flights left and +returned to New Zealand within the day and without touching down en +route. The southernmost point of the route, at which the aircraft turned +round, was to be at about the latitude of the two scientific bases, +Scott Base (New Zealand) and McMurdo Station (United States), which lie +about two miles apart, south of Ross Island. On Ross Island there are +four volcanic mountains, the highest being Mount Erebus, about 12,450 +feet. To the west of Ross Island is McMurdo Sound, about 40 miles long +by 32 miles wide at the widest point and covered by ice for most of the +year. + +It was originally intended that the flight route south would be over +Ross Island at a minimum of 16,000 feet. From October 1977, with the +approval of the Civil Aviation Division, descent was permitted south of +the Island to not lower than 6000 feet, subject to certain conditions +concerning weather and other matters. However, the evidence is that the +pilots were in practice left with a discretion to diverge from these +route and height limitations in visual meteorological conditions; and +they commonly did so, flying down McMurdo Sound and at times at levels +lower than even 6000 feet. This had advantages both for sightseeing and +also for radio and radar contact with McMurdo Station. Moreover from +1978 the flight plan, recording the various waypoints, stored in the Air +New Zealand ground computer at Auckland actually showed the longitude of +the southernmost waypoint as 164° 48' east, a point in the Sound +approximately 25 miles to the west of McMurdo Station. + +The evidence of the member of the airline's navigation section who typed +the figures into the computer was that he must have mistakenly typed +164° 48' instead of 166° 48' and failed to notice the error. Shortly +before the fatal flight the navigation section became aware that there +was some error, although their evidence was that they understood it to +be only a matter of 10 minutes of longitude. In the ground computer the +entry was altered to 166° 58' east, and this entry was among the many in +the flight plan handed over to the crew for that flight for typing into +the computerised device (AINS) on board the aircraft. The change was not +expressly drawn to the attention of the crew. The AINS enables the pilot +to fly automatically on the computer course ('nav' track) at such times +as he wishes. + +The crash occurred at 12.50 pm on 28 November 1979. The aircraft struck +the northern slopes of Mount Erebus, only about 1500 feet above sea +level. There were no survivors. The evidence indicates that the weather +was fine but overcast and that the plane had descended below the cloud +base and was flying in clear air. The pilot, Captain Collins, had not +been to the Antarctic before, and of the other four members of the +flight crew only one, a flight engineer, had done so. The plane was on +nav track. + +The Chief Inspector of Air Accidents, Mr R. Chippindale, carried out an +investigation and made a report to the Minister, dated 31 May 1980, +under reg. 16 of the Civil Aviation (Accident Investigation) Regulations +1978. It was approved by the Minister for release as a public document. +The Chief Inspector concluded that 'The probable cause of the accident +was the decision of the captain to continue the flight at low level +toward an area of poor surface and horizon definition when the crew was +not certain of their position and the subsequent inability to detect the +rising terrain which intercepted the aircraft's flight path'. He adhered +to this in evidence before the subsequent Royal Commission. + +The Royal Commission was appointed on 11 June 1980 to inquire into 'the +causes and circumstances of the crash', an expression which was +elaborated in terms of reference consisting of paragraphs (a) to (j). +Mr. Justice Mahon was appointed sole Commissioner. In his report, +transmitted to the Governor-General by letter dated 16 April 1981 and +subsequently presented to the House of Representatives by Command of His +Excellency and later printed for public sale, the Commissioner found +that '... the single dominant and effective cause of the disaster was +the mistake made by those airline officials who programmed the aircraft +to fly directly at Mt. Erebus and omitted to tell the aircrew'. He +exonerated the crew from any error contributing to the disaster. + +The Commissioner and the Chief Inspector were at one in concluding that +the crash has occurred in a whiteout. The Commissioner gave this vivid +reconstruction in the course of para. 40 of his report: + + I have already made it clear that the aircraft struck the lower + slopes of Mt. Erebus whilst flying in clear air. The DC10 was at + the time flying under a total cloud cover which extended forward + until it met the mountain-side at an altitude of somewhere between + 2000 and 2500 feet. The position of the sun at the time of impact + was directly behind the aircraft, being in a position approximately + to the true north of the mountain and shining at an inclination of + 34°. The co-existence of these factors produced without doubt the + classic 'whiteout' phenomenon which occurs from time to time in + polar regions, or in any terrain totally covered by snow. Very + extensive evidence was received by the Commission as to the + occurrence and the consequences of this weather phenomenon. So long + as the view ahead from the flight deck of an aircraft flying over + snow under a solid overcast does not exhibit any rock, or tree, or + other landmark which can offer a guide as to sloping or uneven + ground, then the snow-covered terrain ahead of the aircraft will + invariably appear to be flat. Slopes and ridges will disappear. The + line of vision from the flight deck towards the horizon (if there + is one) will actually portray a white even expanse which is + uniformly level. + + What this air crew saw ahead of them as the aircraft levelled out + at 3000 feet and then later at 1500 feet was a long vista of flat + snow-covered terrain, extending ahead for miles. Similarly, the + roof of the solid overcast extended forward for miles. In the far + distance the flat white terrain would either have appeared to have + reached the horizon many miles away or, more probably, merged + imperceptibly with the overhead cloud thus producing no horizon at + all. What the crew could see, therefore, was what appeared to be + the distant stretch of flat white ground representing the flat long + corridor of McMurdo Sound. In reality the flat ground ahead + proceeded for only about 6 miles before it intercepted the low ice + cliff which marked the commencement of the icy slope leading + upwards to the mountain, and at that point the uniform white + surface of the mountain slope proceeded upwards, first at an angle + of 13°, and then with a gradually increasing upward angle as it + merged with the ceiling of the cloud overhead. The only feature of + the forward terrain which was not totally white consisted of two + small and shallow strips of black rock at the very bottom of the + ice cliff, and these could probably not be seen from the flight + deck seats owing to the nose-up attitude of 5° at which the + aircraft was travelling, or they were mistaken for thin strips of + sea previously observed by the crew as separating blocks of pack + ice. + + The aircraft had thus encountered, at a fateful coincidence in + time, the insidious and unidentifiable terrain deception of a + classic whiteout situation. They had encountered that type of + visual illusion which makes rising white plateaux appear perfectly + flat. This freak of polar weather is known and feared by every + polar flier. In some Arctic regions in the Canadian and in the + north European winter, it is responsible for numbers of light + aircraft crashes every year. Aircraft fly, in clear air, directly + into hills and mountains. But neither Captain Collins nor First + Officer Cassin had ever flown at low altitude in polar regions + before. Even Mr Mulgrew [the commentator for the passengers], with + his antarctic experience, was completely deceived. The fact that + not one of the five persons on the flight deck ever identified the + rising terrain confirms the totality of this weird and dangerous + ocular illusion as it existed on the approach to Mt. Erebus at + 12.50 p.m. on 28 November 1979. + +Paragraph 165 of the Commissioner's report also merits quotation. We +have underlined some of it, indicating that in this particular part of +his report the Commissioner seems to accept that when they first heard +of the crash the management of the airline must have been unaware of the +true nature and danger of a whiteout. If so, they would have had no +reason to suppose that the pilot would have elected to fly at such a low +level without real visibility. That is an aspect which could well have +been strongly relied on if, when giving evidence before the +Commissioner, they had realised that they were being accused of trying +to cover up the cause of the crash from an early stage: + + The term 'whiteout' has more than one meaning as being descriptive + of weather conditions in snow-covered terrain. For aviation + purposes it is often described as the cause of the visual + difficulty which occurs when a aircraft is attempting to land + during a snowstorm. As already stated, the United States Navy + maintains a special whiteout landing area situated to the south of + its normal landing strips near McMurdo Station. This area is used + when an aircraft, which is committed to a landing, is required to + land when visibility is obscured by a snowstorm. The snow in + Antarctica is perfectly dry, and a wind of only 20 kilometres can + sweep loose snow off the surface and fill the air with these fine + white particles. A landing on the special whiteout landing field + can be accomplished only by an aircraft equipped with skis or, in + the case of an aircraft without skis, then it must make a belly-up + landing on this snow-covered emergency airfield. Flying in a + 'whiteout' of that description is no different from flying in thick + cloud. The pilot cannot know where he is and must land in + accordance with strict radio and radar directions. So far as I + understand the evidence, I do not believe that either the airline + or Civil Aviation Division ever understood the term 'whiteout' to + mean anything else than a snowstorm. I do not believe that they + were ever aware, until they read the chief inspector's report of + the type of 'whiteout' which occurs in clear air, in calm + conditions, and which creates this visual illusion which I have + previously described and which is, without doubt, the most + dangerous of all polar weather phenomena. + +While largely agreed about the whiteout conditions, the Commissioner and +the Chief Inspector took quite different views as to whether the crew +had been uncertain of their position and visibility. This disagreement +is associated with a major difference as to the interpretation of the +tape recovered from the cockpit voice recorder covering the conversation +on the flight deck during the 30 minutes before the crash. + +Both the Commissioner and the Chief Inspector found difficulty in +arriving at an opinion about what was said and by whom. Whereas the +Chief Inspector thought that the two flight engineers had voiced +mounting alarm at proceeding at a low level towards a cloud-covered +area, the Commissioner thought that Captain Collins and First Officer +Cassin had never expressed the slightest doubt as to where the aircraft +was and that 'not one word' was ever addressed by either of the flight +engineers to the pilots indicating any doubt. This is not a question on +which the present proceedings call for any opinion from this Court, nor +are we in any position to give one. + +A major point in the Commissioner's reasoning, and one that helps to +explain the difference between the two reports, is that on the basis of +evidence from the wife and two daughters of Captain Collins he accepted +that, at home the night before the flight, the Captain had plotted on an +atlas and two maps a route of the flight; and he drew the inference that +Captain Collins must then have had with him a computer print-out. Any +such print-out would have been made before the alteration and +consequently would have shown the longitude of the southernmost waypoint +as 164° 48' E. The Commissioner accordingly concluded that Captain Collins +had plotted a route down the Sound. No doubt this tended to reinforce +his view that the Captain, flying on nav track, had never doubted that +he was in fact over the Sound. + + +The Challenged Paragraphs + +The background already given is needed for an understanding of the case. +But we repeat that the case is not an appeal from the Commissioner's +findings on causation or other matters. The applicants acknowledge that +they have no rights of appeal. What they attack are certain paragraphs +in the Commission report which deal very largely, not with the causes +and circumstances of the crash, but with what the Commissioner calls +'the stance' of the airline at the inquiry before him. The applicants +say that in these paragraphs the Commissioner exceeded his powers or +acted in breach of natural justice; and further that some of his +conclusions were not supported by any evidence whatever of probative +value. Their counsel submit that a finding made wholly without evidence +capable of supporting it is contrary to natural justice. + +The arguments on the other side were presented chiefly by Mr Baragwanath +and Mr Harrison, who had been counsel assisting the Commission and +appeared in this Court for the Attorney-General, not to advance any view +on behalf of the Government but to ensure that nothing that could +possibly be said in answer to the contentions of Mr Brown and Mr +Williams for the applicants was left unsaid before the Court. This was +done because it has not been usual for a person in the position of the +Commissioner to take an active part in litigation concerning his report. +Mr Barton, who appeared for the Commissioner, did not present any +argument, adopting a watching role. He indicated that he would only have +played an active role if the Commissioner had been required for +cross-examination. As already mentioned, it was agreed otherwise. At +that stage the Commissioner, by his counsel, very properly stated that +he would abide the decision of the Court. + +Mr Baragwanath's submissions were to the general effect that the Court +had no jurisdiction to interfere with the opinions expressed in the +Commission's report, which were not 'findings' and bound no one; and +that in any event they were conclusions within the Commissioner's +powers, open to him on the evidence and arrived at without any breach of +natural justice. + +We now set out the various paragraphs under attack, bearing in mind that +they cannot properly be considered in isolation from the context in the +report. The paragraphs vary in importance, but it is convenient to take +them in the numerical order of the report. We will indicate as regards +each paragraph or set of paragraphs the essence of the complaint. After +doing this we will state how we propose to deal with the complaints. + + +Destruction of Documents + +Paragraphs 45 and 54, which affect particularly the chief executive at +the time of the crash, Morrison Ritchie Davis, are as follows: + + 45. The reaction of the chief executive was immediate. He + determined that no word of this incredible blunder was to become + publicly known. He directed that all documents relating to + antarctic flights, and to this flight in particular, were to be + collected and impounded. They were all to be put on one single file + which would remain in strict custody. Of these documents all those + which were not directly relevant were to be destroyed. They were to + be put forthwith through the company's shredder. + + 54. This was at the time the fourth worst disaster in aviation + history, and it follows that this direction on the part of the + chief executive for the destruction of 'irrelevant documents' was + one of the most remarkable executive decisions ever to have been + made in the corporate affairs of a large New Zealand company. There + were personnel in the Flight Operations Division and in the + Navigation Section who anxiously desired to be acquitted of any + responsibility for the disaster. And yet, in consequence of the + chief executive's instructions, it seems to have been left to these + very same officials to determine what documents they would hand + over to the Investigating Committee. + +These paragraphs occur in the context of a discussion of the change in +the computer waypoint shortly before the flight and the failure to draw +it to the attention of the flight crew. The reference to the chief +executive having 'determined that no word of this incredible blunder was +to become publicly known' is, taken by itself, at least an +overstatement, because in paragraph 48 the Commissioner in effect +qualifies it. He says there that it was inevitable that the facts would +become known and 'perhaps' the chief executive had only decided to +prevent adverse publicity in the meantime. Clearly the airline disclosed +to the Chief Inspector that the change of more than two degrees of +longitude had been made in the computer early on the day of the flight +and not mentioned to the crew; these matters are referred to in +paragraphs 1.17.7 and 2.5 of the Chief Inspector's report. They were +matters which the Chief Inspector did not highlight; evidently he did +not regard them as of major importance. For his part the Commissioner +(in para. 48 of his report) states that the Chief Inspector did not make +it clear that the computer flight path had been altered before the +flight and the alteration not notified to the crew. + +We are not concerned with whether or not the Commissioner's implied +criticism of the Chief Inspector's report is correct. The complaint made +by the applicants is that the criticisms of Mr Davis in the two +paragraphs that we have set out are based on mistake of fact, not on +evidence of probative value. It is also said that he was not given a +fair opportunity to put his case in relation to such findings, but what +the applicants most stress is the way in which the Commissioner dealt +with the evidence. + +In particular they point out that the evidence of Mr Davis, not +contradicted by any other evidence and correctly summarised in paragraph +45 of the Commissioner's report, was that only copies of existing +documents were to be destroyed; that he did not want any surplus +document to remain at large in case its contents were released to the +news media by some employee of the airline; and that his instructions +were that all documents of relevance were to be retained on the single +file. Their counsel submit in effect that in converting this direction +for the preservation of all relevant documents into a direction for the +destruction of 'irrelevant' documents--a word used by the Commissioner +as if it were a quotation from Mr Davis--the Commissioner distorted the +evidence. And it is said that the description 'one of the most +remarkable executive decisions every to have been made in the corporate +affairs of a large New Zealand company' is, to say the least, +far-fetched. + +Counsel for the applicants point also to the fact that there is no +evidence that any document of importance to the inquiry was destroyed in +consequence of the instructions given by Mr Davis. The gist of the +contrary argument presented by Mr Baragwanath was that Mr Davis was +fully cross-examined about his instructions; and that 'it was open to +the Royal Commissioner to find that there were in existence documents +which never found their way to that file and that the procedures were +tailor made for destruction of compromising documents'. + + +Alteration of Flight Plan + +Paragraph 255 (e) and (f), in numerical order the next passages +complained of, refer to the fact that when the co-ordinates in the +Auckland computer were altered a symbol was used which had the effect +of including in the information to be sent to the United States air +traffic controller at McMurdo Station the word 'McMurdo' instead of the +actual co-ordinates (latitude and longitude) of the southernmost +waypoint. The Commissioner said: + + (e) When the TACAN position [a navigational aid at McMurdo Station + enabling aircraft to ascertain their distance from it] was typed + into the airline's ground computer in the early morning of 28 + November 1979, there was also made the additional entry to which I + have referred, which would result in the new co-ordinates not being + transmitted to McMurdo with the Air Traffic Control flight plan for + that day. It was urged upon me, on behalf of the airline, that + McMurdo Air Traffic Control would consider the word 'McMurdo' as + indicating a different position from that appearing on Air Traffic + Control flight plans dispatched from Auckland during 1978 and 1979. + I cannot for a moment accept that suggestion. First Officer Rhodes + made a specific inquiry at McMurdo within a few days of the + disaster and ascertained that the destination waypoint of the first + Air Traffic Control flight plan for 1979 had been plotted by the + United States Air Traffic Control personnel, and there was evidence + from the United States witnesses that this would be normal + practice. In my view the word 'McMurdo' would merely be regarded, + and was indeed regarded, by McMurdo Air Traffic Control as + referring to the same McMurdo waypoint which had always existed. In + my opinion, the introduction of the word 'McMurdo' into the Air + Traffic Control flight plan for the fatal flight was deliberately + designed to conceal from the United States authorities that the + flight path had been changed, and probably because it was known + that the United States Air Traffic Control would lodge an objection + to the new flight path. + + (f) I have reviewed the evidence in support of the allegation that + the Navigation Section believed, by reason of a mistaken verbal + communication, that the altered McMurdo waypoint only involved a + change of 2.1 nautical miles. I am obliged to say that I do not + accept that explanation. There were certainly grave deficiencies in + communication within the Navigation Section, but the high + professional skills of the Navigation Section's staff entirely + preclude the possibility of such an error. In my opinion this + explanation that the change in the waypoint was thought to be + minimal in terms of distance is a concocted story designed to + explain away the fundamental mistake, made by someone, in failing + to ensure that Captain Collins was notified that his aircraft was + now programmed to fly on a collision course with Mt. Erebus. + +These paragraphs are attacked on the grounds, in short, that the members +of the navigation section said to be adversely affected by +them--according to the applicants, Mr R. Brown as regards (e) and Messrs +Amies, Brown, Hewitt and Lawton as regards (f)--were not given a fair +opportunity of answering the findings or allegations. + +To understand this complaint one needs a clear picture of what it was +that the Commission found or alleged against the navigation section. +When studying the report as a whole we have encountered difficulties in +this regard, difficulties not altogether removed when we explored them +during the argument with Mr Baragwanath. But our understanding is that +in essence the Commissioner suggests that the original change of the +southernmost point to one in the Sound, 25 miles west of McMurdo +Station, was probably deliberate on the part of the navigation section +(although he refrained from a definite finding) and that in November +1979 they deliberately made a major change back to the vicinity of +McMurdo Station but deliberately set out to conceal the change from the +American personnel there. The motive for the 1979 change ascribed by the +Commissioner to the navigation section appears to be that they +considered that the New Zealand Civil Aviation Division had only +approved a route over Mount Erebus, yet at the same time that the +American 'authorities' would object to that route, regarding the route +down the Sound as safer. In short the theory (if we understand it +correctly) is that the navigation section were in a dilemma as there was +no route approved by all concerned. + +Beyond argument, it would seem, there was slipshod work within the +airline in the making of the change and the failure to expressly notify +flight crews. But the allegations of deliberate concealment and a +concocted story are another matter. The complaint is that they were +never put squarely to the members of the navigation section. The +Commissioner himself did put to the chief navigator, Mr Hewitt, that +'Someone may suggest before the inquiry is over' that the word 'McMurdo' +was relayed to McMurdo to conceal a long-standing error in the +co-ordinates. Mr Hewitt replied 'Certainly not, sir' and there, the +applicants point out, the matter was left, without further questions to +witnesses by anyone or any reference in counsel's final submissions. + +On the other hand Mr Baragwanath urged in substance that the witnesses +from the navigation section must have understood that their evidence was +under suspicion; that they had ample opportunities to explain how and +why any mistakes occurred; and that it was for the Commissioner to +assess their explanations, taking into account any impressions they made +on him individually as witnesses. + + +Captain Eden + +First Officer Rhodes, an accident inspector, had been one of the party +who went to the Antarctica very shortly after the crash. He was +representing the Air Line Pilots Association as well as working with +others in the party. When he first gave evidence at the inquiry he was +called by counsel for the association. Apparently concern was felt by +the airline that some of his evidence might be taken to reflect on +Captain Gemmell (the Flight Manager, Technical, and former Chief Pilot) +so First Officer Rhodes was recalled as a witness by counsel for the +airline. He said that he had 'no reason to doubt Captain Gemmell in any +way shape or form'. There was some cross-examination by counsel for the +association but no reference was made to Captain Eden in any of the +questions. The Commissioner said in paragraph 348 of his report: + + 348. Captain Eden is at present the director of flight operations + for the airline. He appeared in the witness box to be a + strong-minded and aggressive official. It seemed clear from this + further production of First Officer Rhodes as a witness that it had + been suggested to him by Captain Eden that he should either make a + direct allegation against Captain Gemmell or else make no + allegation at all, and that since First Officer Rhodes seemed to + have no direct evidence in his possession, he was therefore obliged + to give the answer which Captain Eden had either suggested or + directed. However, First Officer Rhodes was not entirely + intimidated because as will be observed from the evidence just + quoted, he insisted on saying that Captain Gemmell had brought an + envelope containing documents back to Auckland. + +Exception is taken to that paragraph as making findings of intimidation +against Captain Eden without any such allegation ever having been put to +him. Captain Eden gave evidence later in the inquiry than First Officer +Rhodes and the transcript shows that he was asked nothing by anyone +about their discussion. + + +Captain Gemmell + +The following paragraphs of the report are attacked for their references +to this senior officer: + + 352. As to the ring-binder notebook, it had been returned to Mrs + Collins by an employee of the airline, but all the pages of the + notebook were missing. Captain Gemmell was asked about this in + evidence. He suggested that, the pages might have been removed + because they had been damaged by kerosene. However, the ring-binder + notebook itself, which was produced at the hearing, was entirely + undamaged. + + 353. After the evidence given before the Commission had concluded, + I gave some thought to the matters just mentioned. I knew that the + responsibility for recovering all property on the crash site lay + exclusively with the New Zealand Police Force, and that they had + grid-searched the entire site. All property recovered had been + placed in a large store at McMurdo Base, which was padlocked, and + access to the shed was only possible through a senior sergeant of + Police. I asked counsel assisting the Commission to make inquiries + about the flight bags which had been located on the site but which + had not been returned to Mrs Collins or Mrs Cassin. + + 354. The Royal New Zealand Air Force helicopter pilot who flew the + property from the crash site to McMurdo remembered either one or + two crew flight bags being placed aboard his helicopter, and he + said that they were then flown by him to McMurdo. This was + independently confirmed by the loadmaster of the helicopter, who + recollected seeing the flight bags. The senior sergeant of Police + in charge of the McMurdo store was spoken to, and he recollected + either one or two flight bags among other property awaiting packing + for return to New Zealand. He said that personnel from Air New + Zealand had access to the store, as well as the chief inspector, + and the senior sergeant said that he thought that he had given the + flight bags to the chief inspector and that the chief inspector was + the sole person to whom he had released any property. The chief + inspector was then interviewed on 11 December 1980 by telephone, + being at that time in Australia, but he said that no flight bags + were ever handed to him. + ... + + 359. The following facts seemed to emerge: + + (1) The two flight bags were lodged in the Police store at McMurdo + and would have been returned in due course to Mrs Collins and Mrs + Cassin by the Police. But they were taken away from the store by + someone and have not since been seen. + ... + +These paragraphs followed a discussion by the Commissioner of a +submission by counsel for the Pilots Association that a number of +documents which would have tended to support the proposition that +Captain Collins had relied upon the incorrect co-ordinates had not been +located; and in that context the Commissioner recorded Captain Gemmell's +denial that he had recovered any documents relevant to the flight which +had not been handed over to the chief inspector. There was also a +reference shortly afterwards in the report to Captain Gemmell having +brought back some quantity of documents with him from Antarctica. On its +own this would be innocuous, but it is part of a context which could +lead to inferences adverse to Captain Gemmell being drawn from the +paragraphs complained of. + +The applicants say that there was a mistake of fact, no evidence of +probative value and no fair opportunity to answer the criticisms or +findings which they claim to be implicit in these paragraphs. The last +point, the natural justice one, has a special feature in the case of +Captain Gemmell. The applicants say that the findings, apart from one +made under mistake (paragraph 352), were based on information or +evidence gathered by the Commissioner after the public hearings; and +that, while an opportunity of meeting the new matter was given to the +Chief Inspector of Air Accidents, none was given to Air New Zealand or +Captain Gemmell. + +Another special feature is that the Commissioner himself ultimately +concluded (paragraph 360) 'However, there is not sufficient evidence to +justify any finding on my part that Captain Gemmell recovered documents +from Antarctica which were relevant to the fatal flight, and which he +did not account for to the proper authorities'. + + +Alleged 'Orchestration' + +We now come to the most serious complaint. It concerns paragraph 377 of +the report, a paragraph building up to a quotable phrase that has become +well known in New Zealand and abroad: + + 377. No judicial officer ever wishes to be compelled to say that he + has listened to evidence which is false. He always prefers to say, + as I hope the hundreds of judgments which I have written will + illustrate, that he cannot accept the relevant explanation, or that + he prefers a contrary version set out in the evidence. + + But in this case, the palpably false sections of evidence which I + heard could not have been the result of mistake, or faulty + recollection. They originated, I am compelled to say, in a + pre-determined plan of deception. They were very clearly part of an + attempt to conceal a series of disastrous administrative blunders + and so, in regard to the particular items of evidence to which I + have referred, I am forced reluctantly to say that I had to listen + to an orchestrated litany of lies. + +The applicants claim that these findings were not based on evidence of +probative value and that the affected employees were not given a fair +opportunity of answering such charges. The general allegation in the +statement of claim that the findings attacked were made in excess of +jurisdiction has in our view a special bearing on this paragraph. The +applicants say that the paragraph affects a considerable number of +employees--namely Mr Amies, Mr R. Brown, Mr Davis, Captain Eden, Captain +Gemmell, Captain Grundy, Captain Hawkins, Mr Hewitt, Captain Johnson and +Mr Lawton. These include all the employees affected by the other +paragraphs under challenge. + +We accept that reasonable readers of the report would take from it that +the conspiracy which the Commissioner appears to postulate in his +references to 'a pre-determined plan of deception' and 'an orchestrated +litany of lies' was seen by him as so wide as to cover all those +persons. Paragraph 377 is the culmination of a series of paragraphs +beginning with paragraph 373 and separately headed by the Commissioner +'The Stance adopted by the Airline before the Commission of Inquiry'. +They include specific references to the chief executive, described as +'very able but evidently autocratic' in the context of an allusion to +what 'controlled the ultimate course adopted by the witnesses called on +behalf of the airline'. There are also specific references to the +executive pilots and members of the navigation section. + +It is possible that some individual witnesses did give some false +evidence during this inquiry. The applicants accept that this was for +the Commissioner to consider and that it is not for us to interfere with +his assessment of witnesses. But the complaint goes much further than +that. It is that there is simply no evidence on which he could find a +wholesale conspiracy to commit perjury, organised by the chief +executive, which is what this part of the report appears to suggest. Our +conclusion that here the Commissioner went beyond his jurisdiction and +did not comply with natural justice--a conclusion to be explained more +fully later in this judgment--makes it unnecessary for us to decide +whether there was any evidence that could conceivably warrant such an +extreme finding. It is only right to say, however, that if forced to +decide the question we would find it at least difficult to see in the +transcript any evidence of that kind. + +The language of paragraph 377 has evidently been carefully selected for +maximum colour and bite, and the Commissioner has sought to reinforce +its impact by bringing in his status and experience as a judicial +officer. While unfortunate, it is no doubt that result of a search for +sharp and striking expression in a report that would be widely read. He +cannot have overstated the evidence deliberately. Similarly at senior +management level in Air New Zealand there would have been a natural +tendency to try to have the company's case put in as favourable a light +as possible before the Commission; but it was adding a further and +sinister dimension to their conduct to assert that they went as far as +organised perjury. + + +Costs + +The applicants ask for an order quashing one of the Commissioner's +decisions as to costs. The decision in question and the reasons for it +are stated in an appendix to the report: + + ... I asked the airline for its submissions on the question of + costs. The general tenor of the submissions is that the + establishment of this Royal Commission was directed by the New + Zealand Government and that the airline should not be ordered to + meet any part of the public expenditure so incurred. As a statement + of general principle, this is correct. But there is specific + statutory power to order that a party to the inquiry either pay or + contribute towards the cost of the inquiry, and that the power + should be exercised, in my opinion, whenever the conduct of that + party at the hearing has materially and unnecessarily extended the + duration of the hearing. This clearly occurred at the hearings + which took place before me. + + In an inquiry of this kind, an airline can either place all its + cards on the table at the outset, or it can adopt an adversary + stance. In the present case, the latter course was decided upon. + The management of the airline instructed its counsel to deny every + allegation of fault, and to counter-attack by ascribing total + culpability to the air crew, against whom there were alleged no + less than 13 separate varieties of pilot error. All those + allegations, in my opinion, were without foundation. Apart from + that, there were material elements of information in the possession + of the airline which were originally not disclosed, omissions for + which counsel for the airline were in no way responsible, and which + successively came to light at different stages of the Inquiry when + the hearings had been going on for weeks, in some cases for months. + I am not going to burden this recital with detailed particulars, + but I should have been told at the outset that the flight path from + Hallett to McMurdo was not binding on pilots, that Captain Wilson + briefed pilots to maintain whatever altitudes were authorised by + McMurdo Air Traffic Control, that documents were ordered by the + chief executive to be destroyed, that an investigation committee + had been set up by the airline in respect of which a file was held, + and that one million copies of the Brizindine article had been + printed, a fact never revealed by the airline at all. So it was not + a question of the airline putting all its cards on the table. The + cards were produced reluctantly, and at long intervals, and I have + little doubt that there are one or two which still lie hidden in + the pack. In such circumstances the airline must make a + contribution towards the public cost of the Inquiry. + + ... + + 6. The costs incurred by the Government in respect of this Inquiry + have been calculated by the Tribunals Division of the Department of + Justice at $275,000. A substantial liability for the burden of such + costs must lie upon the State but in my opinion the State ought to + be in part reimbursed in respect of the cost to the public of the + Inquiry, and I accordingly direct that Air New Zealand Limited pay + to the Department of Justice the sum of $150,000 by way of + contribution to the public cost of the Inquiry. + +The order is in any event invalid because the amount is far greater than +the maximum allowed by the long out-of-date but apparently still extant +scale prescribed in 1903 (1904 Gazette 491). It is only fair to the +Commissioner to say that the scale seems never to have been drawn to his +attention by any counsel, although he gave an opportunity to make +submissions on costs. But there is a deeper objection to the validity of +the order, to which we will come shortly. + + +Conclusions + +Having set out the various complaints we now state our conclusions more +specifically than in the earlier part of this judgment. + +As to the jurisdiction of the Court in the present proceedings, the +application is made solely under the Judicature Amendment Act 1972. +Under that Act a decision cannot be set aside unless it was made in +exercise of a statutory power and _either_ it could have been quashed in +certiorari proceedings at common law--that is the effect of s. 4 +(1)--_or_ the applicant is entitled to a declaration that it was +unauthorised or invalid, in which case s. 4 (2) empowers the Court to +set aside the decision instead. + +The Erebus Commission, like others in the past in New Zealand when a +Supreme Court Judge has been the Chairman or the sole Commissioner, was +expressed to be appointed both under the Letters Patent delegating the +relevant Royal Prerogative to the Governor-General and under the +authority of and subject to the provisions of the Commissions of Inquiry +Act 1908. Some of us have reservations on various legal +questions--whether the Commission had statutory authority for its +inquiry as well as Prerogative authority; whether the findings in the +body of the report amounted to 'decisions', whether complete absence of +evidence is relevant in considering natural justice or can be redressed +in proceedings of this kind. These questions may be of more importance +in cases concerning the Thomas Commission which are to come before this +Court next year. Moreover, though most important in principle, they are +highly technical. It seems to us preferable that the Court should not +determine them now unless it is essential to do so. And we do not think +it is essential, because we are agreed on what now follows and it +enables substantial justice to be done in the present case. + +It is established in New Zealand that in appropriate proceedings the +Courts may prevent a Commission of Inquiry--whether a Royal Commission, +a statutory Commission or perhaps a combination of the two--from +exceeding its powers by going outside the proper scope of its inquiry. +That basic principle was clearly accepted by this Court in _Re Royal +Commission on Licensing_ 1945 N.Z.L.R. 665. See especially the judgment +of Myers C.J. at pp. 678 to 680. As he indicated, the principle is +implicit in the judgment of the Privy Council in _Attorney-General for +Commonwealth of Australia v. Colonial Sugar Company_ 1914 A.C. 237. It +is also clear that in a broad sense the principles of natural justice +apply to Commissions of Inquiry, although what those principles require +varies with the subject-matter of the inquiry. The leading authority is +the decision of this Court in _Re Royal Commission on State Services_ +1962 N.Z.L.R. 96. + +In recent times Parliament has shown an increasing concern that natural +justice should be observed by Commissions. In 1958 s. 4A was inserted in +the Commissions of Inquiry Act 1908, expressly giving any person +interested in the inquiry, if he satisfied the Commission that he had an +interest apart from any interest in common with the public, a right to +appear and be heard as if he had been cited as a party. Then in 1980, +just as the Erebus Commission was about to start, the section was +replaced and strengthened. The main changes made are that any person who +satisfies the Commission that any evidence given before it may adversely +affect his interests must be given an opportunity to be heard in respect +of the matter to which the evidence relates; and every person entitled +to be heard may appear in person or by his counsel or agent. In giving +this right to representation by counsel the Legislature has gone further +than observations made in this Court in the _State Services_ case at pp. +105, 111 and 117. + +Some statements in the judgments in that case are very relevant to the +present case. They are also entirely consistent with the spirit of the +changes made by Parliament in 1980. Gresson P. at p. 105 and North J. at +p. 111 both gave an inquiry into a disaster as an example of the kind of +inquiry where the requirements of natural justice would be more +extensive than in inquiries into a general field. Cleary J. stressed at +p. 117 that, while Commissions have wide powers of regulating their own +procedure, there is the one limitation that persons interested (i.e. +apart from any interest in common with the public) must be afforded a +fair opportunity of presenting their representations, adducing evidence, +_and meeting prejudicial matter_. + +In both the _Licensing_ and the _State Services_ cases the Commissions +were presided over by Supreme Court Judges. It is implicit in the +judgments that this status on the part of the Chairman does not +emancipate a Commission from judicial review on jurisdictional or +natural justice grounds. We hold that the position can be no different +when a High Court Judge is sole Commissioner. He will, however, have +the powers, privileges and immunities mentioned in s. 13 (1) of the +Commissions of Inquiry Act. For instance he will have immunity from +defamation actions. + +A further important point, clear beyond argument, is that an order for +costs made by a Commission under s. 11 of the Commissions of Inquiry Act +is the exercise of a statutory power of decision within the meaning of +the Judicature Amendment Act 1972. Accordingly it is subject to judicial +review. The judgments in this Court in _Pilkington_ v. _Platts_ 1925 +N.Z.L.R. 864 confirm that if an order for costs has been made by a +Commission acting without jurisdiction or failing to comply with +procedural requirements the Court will by writ or prohibition or other +appropriate remedy prevent its enforcement. We add that, notwithstanding +an argument by Mr Harrison to the contrary, we are satisfied that s. 11 +was the only possible source of the Commissioner's power to award costs +and s. 13 was not and could not have been invoked. + +The order for costs under challenge in the present case is the +Commissioner's order that Air New Zealand pay $150,000 by way of +contribution to the public cost of the inquiry. In our view there can be +no doubt that this order is and was intended to be, in the words of +Williams J. delivering the judgment of this Court in _Cock_ v. +_Attorney-General_ (1909) 28 N.Z.L.R. 405. 421, '... in fact, though not +in name, a punishment'. What is more important, although Mr Baragwanath +argued otherwise we have no doubt that reasonable readers of the report +would understand that this order is linked with and consequential upon +the adverse conclusions stated by the Commissioner in the section of the +report headed by him 'The Stance adopted by the Airline before the +Commission of Inquiry'. It is true that the reasons for the costs order +open with a proposition about unnecessarily extending the hearing. But +the passage develops and the later reasons go further. The words chosen +convey that the punishment was not simply for prolonging the hearing. In +particular the statements about cards in the pack are a reversion to the +theme of the 'Stance' section, with its exceedingly strong allegations +in paragraph 377 of 'a pre-determined plan of deception' and 'an +orchestrated litany of lies'. + +Applying the well-settled principles already mentioned, we think that if +in making those statements the Commissioner exceeded his terms of +reference or acted in violation of natural justice, the costs order is +not realistically severable from that part of the report and should be +quashed. For the purposes of the present case that is sufficient to +dispose of the argument based on _Reynolds_ v. _Attorney-General_ (1909) +29 N.Z.L.R. 24 that after a Commission has reported it is functus +officio and beyond the reach of certiorari or prohibition. + +Naturally the stance of the airline at the inquiry directed by the terms +of reference was not included expressly in those terms. The argument +presented in effect for the Commissioner on the question of jurisdiction +is that comments, however severe, on the veracity and motives of +witnesses were incidental to the carrying out of the express terms. We +accept unhesitatingly that what is reasonably incidental is authorised +(as was recognised in _Cock's_ case at p. 425) and also that to some +degree any Commission of Inquiry has the right to express its opinion of +the witnesses, much as a Court or statutory tribunal has that right. + +But we think that it is a matter of degree. For present purposes it is +not necessary to decide whether the law of New Zealand is still, as held +in _Cock's_ case, that a Commission of Inquiry cannot lawfully be +constituted to inquire into allegations of crime. That issue may be +raised more directly by the litigation regarding the Thomas Commission. +The issue now to be decided is whether the Commissioner had powers, +implied as being reasonably incidental to his legitimate functions of +inquiry into the causes and circumstances of the crash, to make +assertions amounting to charges of conspiracy to perjure at the inquiry +itself. + +In considering that issue the importance of not unreasonably shackling a +Commission of Inquiry has to be weighed. It is also material, however, +that such a charge is calculated to attract the widest publicity, both +national and international. It is scarcely distinguishable in the public +mind from condemnation by a Court of law. Yet it is completely without +the safeguards of rights to trial by jury and appeal. In other words, by +mere implication any Commission of Inquiry, whatever its membership, +would have authority publicly to condemn a group of citizens of a major +crime without the safeguards that invariably go with express powers of +condemnation. + +We are not prepared to hold that the Commissioner's implied powers went +so far. We hold that he exceeded his jurisdiction in paragraph 377. + +If, contrary to the view just expressed, the Commissioner did have +jurisdiction to consider allegations of organised perjury, natural +justice would certainly have required that the allegations be stated +plainly and put plainly to those accused. That was not done. If it had +been done, what we have said earlier is enough to show that they could +well have made effective answers. + +So we conclude that in making the findings or allegations stated in +paragraph 377 of the report the Commission acted in excess of +jurisdiction and contrary to natural justice. As previously mentioned, +the conspiracy postulated in paragraph 377 is evidently intended to +include as participants the chief executive of the airline, the +executive pilots and members of the navigation section. If the order for +$150,000 costs is quashed on the ground that the statements about a +pre-determined plan of deception and an orchestrated litany of lies were +made without jurisdiction and contrary to natural justice, we think that +substantial justice will be done to the company and those individuals. +In our opinion that costs order must be quashed on those grounds as well +as on the ground that it was invalid as to amount. + +Further, during the proceedings in this Court there occurred +developments which in themselves threw a different light on matters +dealt with in the paragraphs under attack affecting Captain Gemmell +particularly. These should be publicly recorded. + +It was acknowledged by all parties, including the Commissioner, that the +reference to Captain Gemmell in paragraph 352, concerning a notebook +belonging to Captain Collins, was a mistake. The Commissioner evidently +had in mind some evidence given by Captain Crosbie, the welfare officer +of the Air Line Pilots Association. This disposes of any inference +against Captain Gemmell that might be taken from that paragraph. + +Much the same applies to the other paragraphs affecting him which are +complained of. We have set them out in full and it will be seen that +they all relate to two flight bags. It had seemed that paragraph 359 +(1), in its context, might have conveyed the impression that Captain +Gemmell had removed these bags from the McMurdo store and brought them +or their contents back from Antarctica. At our hearing, however, Mr +Davison, who was one of the counsel for the Pilots Association both +before the Commission and in this court, made it clear responsibly and +fairly that this is not suggested. + +As to Captain Eden, it has already been stated that the transcript +shows that the allegation expressed or implied in paragraph 348 was +never put to him. Having said so plainly, we need only add as regards +this particular complaint that the allegation, although it would +naturally have caused concern to Captain Eden and Air New Zealand, was +not as serious as the others that are complained of. + +Whether the Court has jurisdiction to quash particular passages in the +report in addition to the costs order is a difficult and technical +question. We prefer not to lengthen this judgment with an unnecessary +discussion of it. + +In modern administrative law, as a result of developments in both case +and statute law, the power of the Courts to grant declarations and quash +decisions is wider than was thought in the _Reynolds_ case in 1909 (29 +N.Z.L.R. at 40). It may be that in a sufficiently clear-cut case the +jurisdiction, either under the Act or at common law, will be found to +extend to parts of Commission reports even when they are not linked with +costs orders. + +But in the end that jurisdictional question does not have to be decided +in this case, and we reserve our opinion on it. If the jurisdiction does +go so far, it must be discretionary, as the grant of declarations always +is. The Court would have to be satisfied that grounds so strong as to +require it to act in that unusual way had been made out. In our opinion +they would be made out clearly enough as regards paragraph 377, which +stands out from the general body of the report. But the quashing of the +costs order because of its association with that paragraph is enough to +do justice there. + +The position is less clear as regards the other paragraphs complained +of. For various reasons they are all in a marginal category. What has +been said in this judgment may help to enable them to be seen in +perspective. On balance we would not be prepared to hold that as to +these other paragraphs the applicants have made out a sufficiently +strong case to justify this Court in interfering, assuming that there is +jurisdiction to do so. + +In the result, the application for review having succeeded on the main +issue, we see no need to and are not prepared to go further in granting +relief. Our decision is simply that the $150,000 costs order be quashed +on the grounds already stated. + +As to the costs of the present proceedings, they should be reserved, as +there has been no argument on the matter. + + +_Solicitors_ + +Russell McVeagh McKenzie Bartleet & Co., Auckland, for First and Second +Applicants. + +Sheffield Young & Ellis, Auckland, for Third Applicant. + +Crown Law Office, Wellington, for First, Fourth and Sixth Respondents. + +Keegan Alexander Tedcastle & Friedlander, Auckland, for Fifth +Respondent. + + + + + +C.A. 95/81 + +In the Court of Appeal of New Zealand--Between Air New Zealand Limited. +First Appellant, and Morrison Ritchie Davis, Second Appellant, and Ian +Harding Gemmell, Third Appellant, and Peter Thomas Mahon, First +Respondent, and the Attorney-General, Fourth Respondent, and New Zealand +Airline Pilots Association, Fifth Respondent, and the Attorney-General, +Sixth Respondent. + + +_Coram_ + +Woodhouse P. +Cooke J. +Richardson J. +McMullin J. +Somers J. + + +_Hearing_ + +5th-12th October 1981. + + +_Counsel_ + +L.W. Brown, Q.C., for first and second appellants, with R.J. McGrane. + +D.A.R. Williams for third appellant, with L.L. Stevens. + +G.P. Barton for first respondent, with R.S. Chambers. + +C.J. McGuire for fourth respondent (Civil Aviation Division)--leave to +withdraw. + +A.F. MacAlister for fifth respondent, with P.J. Davison. + +W.D. Baragwanath for sixth respondent, with G.M. Harrison. + + +_Judgment_ + +22 December 1981 + + + + +JUDGMENT OF WOODHOUSE P. AND McMULLIN J.--DELIVERED BY WOODHOUSE P. + + +On 28th November 1979 a DC10-30 aircraft owned and operated by Air New +Zealand Limited crashed during daylight hours at a point 1465 feet above +mean sea level on the ice-covered lower slopes of Mount Erebus in the +Antarctic. It was a tragedy in which 257 lives were lost. The magnitude +of the disaster resulted in two separate investigations into the causes +of and circumstances surrounding the accident. The second inquiry took +the form of a Royal Commission appointed by Letters Patent and also +pursuant to the provisions of the Commissions of Inquiry Act 1908. Mr +Justice Mahon, a Judge of the High Court at Auckland, was appointed sole +Commissioner on 11th June 1980. He prepared the Commission's Report and +presented it on 16th April 1981. + +The case now before this Court is entirely concerned with that Report. +But lest there be any misunderstanding it is necessary to emphasize at +the outset that no attack can be or indeed has been made upon the +conclusions it reaches as to the cause of the crash. Instead the +proceedings are brought by way of judicial review under the Judicature +Amendment Act 1972 in order to challenge statements in the Report about +the conduct of certain officers of Air New Zealand. + +Senior officers of the airline are severely criticized in the Report and +in one paragraph on the basis of "a pre-determined plan of deception ... +to conceal a series of disastrous administrative blunders ... an +orchestrated litany of lies". These findings are challenged on grounds +that they were made unfairly, in disregard of basic principles of +natural justice and without jurisdiction. We are satisfied that those +complaints of the applicants are justified and that the statements +should never have been made. It was done without authority of the terms +of reference of the Commission and without any warning to the officers +affected. Thus they were given no opportunity at all to answer and deny +as they claim in affidavits now before this Court they were in a +position to do. + +Because of the view we take of some aspects of the facts and of the law +we would be prepared to go further than the other members of the Court +in regard to the formal order to be made in this case. We also find it +necessary to go further in our conclusions in regard to a number of +matters of fact. We feel sure, however, that reputation can be +vindicated and the interests of justice met by the formal decision of +this Court which will have the effect of quashing a penal order of the +Commissioner requiring Air New Zealand to pay the large sum of $150,000 +as costs in the Royal Commission Inquiry. + + +The Two Inquiries + +Before the Royal Commission was appointed and began its work a statutory +investigation had already been carried out in terms of the Civil +Aviation (Accident Investigation) Regulations 1978. Immediately it was +known that the aircraft had crashed on Mount Erebus the standard +procedures for aircraft accident investigation were invoked by the Chief +Inspector of Air Accidents, Mr R. Chippindale. And he arrived in the +Antarctic with a small team of experts on the day following the +disaster. They included mountaineers, police, surveyors, the chief pilot +of Air New Zealand (Captain Gemmell), and a representative of the +Airline Pilots Association, named in the present proceedings as the +fifth respondent (First Officer Rhodes). + +Mr Chippindale conducted intensive inquiries at the site of the crash +and instructed that all reasonable steps were to be taken to recover +equipment that would bear upon the cause of the accident and any +documents which were still accessible before they were blown away into +crevasses or covered with snow. Two important items were soon +discovered: the cockpit voice recorder was found at once and after a +period of systematic digging into the snow the digital flight data +recorder was recovered as well. The first piece of equipment provided a +tape recording of much that was said on the flight deck during a period +of 30 minutes preceding the time of the collision with the ice slope. +The second, often described as the "black box", provided conclusive +information concerning course, altitude, and other data relating to the +flight and functioning of the aircraft at the relevant period of time. + +Mr Chippindale continued his investigation in New Zealand where he +inspected records gathered from the airline. He also interviewed pilots +and other officers with relevant information. In addition he travelled +overseas. At that point he prepared an interim report so that he could +give notice of his tentative findings to all those whom he felt might +have some degree of responsibility for the accident. Thus the airline +and representatives of the deceased pilots and others were given an +opportunity to provide any appropriate answer to the chief inspector +before he completed his final report. All this was attended to and his +report, which is dated 31st May 1980, was made available to the Minister +of Transport on 3rd June 1980. The Minister then approved the report for +release as a public document on 12th June 1980. As mentioned, the Royal +Commission was appointed for the purpose of conducting a public inquiry +at that same time. + +There is a difference in the two reports upon the cause of the accident. +Mr Chippindale considered the probable cause to have been pilot error. +On the other hand the Royal Commission exonerated the pilots completely +and spoke instead of "incompetent administrative airline procedures". +Since this case is concerned with allegations by the Commissioner that +the affected officers of Air New Zealand had engaged "in a +pre-determined plan of deception ... to conceal a series of disastrous +administrative blunders" (administrative mistakes which he himself had +found to be the real cause of the disaster) it is not unimportant to ask +what relevant information the airline had actually been able to provide +which was not supplied to Mr Chippindale. For that last reason the +material made available for consideration by Mr Chippindale deserves +some examination. An example concerns the change made to the final stage +of the computer flight track to the Antarctic which the Commissioner +regarded as a central reason for the accident. During a period of +fourteen months prior to the fatal flight Air New Zealand's ground +computer had contained an incorrect geographical reference to the +southern waypoint of the journey at McMurdo. Accordingly, in that period +it was shown incorrectly on any computer print-outs of the flight plan. +But a few hours before departure of the DC10 an amendment was made and +the flight crew was not informed that amended co-ordinates (since their +briefing 19 days earlier) had thus been fed into the aircraft's +computer. + +In paragraph 44 the Report explains that the chief executive of the +airline was told of this matter on 30th November. Then in paragraph 45 +it is said that the chief executive "determined that no word of this +incredible blunder was to become publicly known". There follows a +statement that a direction was thereupon given "that all documents +relating to Antarctic flights, and to this flight in particular, were +to be collected and impounded. They were all to be put on one single +file which would remain in strict custody. Of these documents all those +which were not directly relevant were to be destroyed". The reference in +this context to the amendment to the co-ordinates invites the question +as to whether Mr Chippindale had been given that particular information +by the airline during his own investigation. It is made plain in his own +report that this had been done immediately. + +He himself was not uncritical of the administrative work of the airline +as it touched upon the fatal flight and concerning this matter he said: + + "3.5 The flight planned route entered in the company's base + computer was varied after the crew's briefing in that the position + for McMurdo on the computer printout used at the briefing, was + incorrect by over 2 degrees of longitude and was subsequently + corrected prior to this flight." + +The variation in the computer _after the crew of the DC10 had been +briefed_ (as Mr Chippindale realized) is the matter which is mentioned +by the Commissioner in paragraph 44 and which in paragraph 45 is offered +as the motive for what is there described as an immediate decision by +the chief executive that no word of the matter was to become publicly +known, with documents to be impounded and others destroyed. This +information was given into Mr Chippindale's hands by Air New Zealand in +a written statement on the day following his return from the crash site +in Antarctica. + +The Chippindale report then states in paragraph 3.6 that the computer +error had remained in the flight plans for some fourteen months. Then it +is said: + + "3.7 Some diagrams and maps issued at the route qualification + briefing could have been misleading in that they depicted a track + which passed to the true west of Ross Island over a sea level ice + shelf, whereas the flight planned track passed to the east over + high ground reaching to 12450 feet AMSL. + + 3.8 The briefing conducted by Air New Zealand Limited contained + omissions and inaccuracies which had not been detected by either + earlier participating aircrews or the supervising Airline + Inspectors." + +So these various matters (also mentioned by the Commissioner) were well +within Mr Chippindale's knowledge. However he came to a final conclusion +that pilot error had been involved as a probable cause of the accident +while the Commissioner (who decided this was an incorrect finding) was +satisfied instead that the cause of the accident was not pilot error at +all. He said: + + "393. In my opinion therefore, the single dominant and effective + cause of the disaster was the mistake made by those airline + officials who programmed the aircraft to fly directly at Mt. Erebus + and omitted to tell the aircrew. That mistake is directly + attributable, not so much to the persons who made it, but to the + incompetent administrative airline procedures which made the + mistake possible. + + 394. In my opinion, neither Captain Collins nor First Officer + Cassin nor the flight engineers made any error which contributed to + the disaster, and were not responsible for its occurrence." + + +Jurisdiction to Review + +Several important questions arise in this case. Is there jurisdiction in +the Courts to review in such a context as this taking into account the +ambit of ss. 3 and 4 of the Judicature Amendment Act 1972? And if there +is such power is it by reason of the award of costs in this case? Or on +grounds relating to excess of jurisdiction on the part of the +Commissioner? Or considerations of natural justice? Or by reference to +all three of those matters? For the reasons that follow we are satisfied +that the findings are reviewable and that each one of those three +matters is properly within the scope of the Court's jurisdiction. + +As already mentioned, the proceedings are by way of application for +review under the Judicature Amendment Act 1972 and are directed against +certain findings in the Report, to which we have referred. The +applicants claim that those findings are invalid, in excess of +jurisdiction or made in circumstances involving unfairness or breach of +natural justice. They seek declarations to that effect and orders +setting aside the findings and quashing the order that Air New Zealand +pay $150,000 as a contribution to the public cost of the inquiry. It is +necessary to consider whether under the Act the Court has jurisdiction +to grant such relief in this case. + +By ss. 3 and 4 of the Act relief may be granted only where a "statutory +power" is involved. That term includes a "statutory power of decision". +Since liberalizing amendments made in 1977, "statutory power" includes +power conferred by or under any Act "to make any investigation or +inquiry into the rights, powers, privileges, immunities, duties, or +liabilities of any person" and "statutory power of decision" includes +power conferred by or under any Act "to make a decision ... affecting" +any such rights, powers, privileges, duties or liabilities. Generally +the relief available is confined by s. 4 to that which the applicant +would have been entitled to in any one or more of the proceedings for +mandamus, prohibition, certiorari, declaration or injunction; but there +is a relevant exception in s. 4 (2) whereby if the applicant is entitled +to an order declaring that a decision made in the exercise of a +statutory power of decision is unauthorized or otherwise invalid the +Court may set aside the decision instead. + +The first question as to jurisdiction is therefore whether, apart from +the 1972 Act, the applicants could have obtained relief by any of the +proceedings mentioned. The Commission having ceased to exist, it would +be too late to apply for prohibition or an injunction against the first +respondent and mandamus would also be inappropriate. The decision of +this Court in _Reynolds_ v. _Attorney-General_ (1909) 29 N.Z.L.R. 24, +37-38, suggests that once the report has been forwarded to the +Governor-General it may be permanently beyond the reach of certiorari; +this is perhaps a corollary of the view, to which we referred in the +judgment concerning discovery in _Environmental Defence Society Inc._ +v. _South Pacific Aluminium Limited_ (C.A. 59/81, judgment 15th June +1981), that a prerogative remedy may not lie against the Sovereign's +representative. + +But we need not go further into the rather technical question of the +scope of certiorari in this kind of case. As has been said in the +_Environmental Defence Society_ case and _Ng_ v. _Minister of Immigration_ +(C.A. 100/81, judgment 10th August 1981), a declaration may be granted +in the discretion of the Court whether or not certiorari would have +lain. That a declaration may be an appropriate remedy for both +jurisdictional errors and closely analogous defects such as unfairness +or breaches of natural justice is shown by such Privy Council and House +of Lords decisions as _De Verteuil_ v. _Knaggs_ (1918) A.C. 557, _Pyx +Granite Co. Ltd._ v. _Ministry of Housing_ (1960) A.C. 260, and _Ridge_ +v. _Baldwin_ (1964) A.C. 40. The statement apparently to the contrary at +the end of the _Reynolds_ judgment at p. 40 is obsolete. And if a +declaration could have been granted that a decision made under a +statutory power is invalid the Court has power under the 1972 Act to set +the decision aside. + + +The Order for Costs + +In argument in the present case it was common ground that if the order +for $150,000 costs is invalid the Court can set it aside. That is +clearly so. The order was made in reliance on s. 11 of the Commissions +of Inquiry Act 1908 which (notwithstanding an argument to the contrary +by Mr Harrison) is in our opinion undoubtedly the only source of any +authority for a Royal Commission or a Commission of Inquiry to award +costs. If valid it is enforceable by virtue of s. 12 of that Act as a +final judgment of the High Court in its civil jurisdiction. Plainly it +is the exercise of a statutory power of decision. The jurisdiction of +the New Zealand Courts to determine the validity of orders for costs by +Commissions is well established: _Hughes_ v. _Hanna_ (1909) 29 N.Z.L.R. +16; _Whangarei Co-operative Bacon-Curing Co._ v. _Whangarei +Meat-Supply Co._ (1912) 31 N.Z.L.R. 1223; _Pilkington_ v. _Plaits_ +(1925) N.Z.L.R. 864. + +What was in dispute in the argument in this connection was principally +whether the order is so linked with the challenged findings in the +Report that if those findings are invalid for excess of jurisdiction or +breach of natural justice the order will fall with them. There was a +subsidiary argument about whether the order was in any event invalid +because the amount may greatly exceed the maximum allowed by the long +out-of-date but still apparently extant scale prescribed in 1903 (1904 +Gazette 491). We propose to consider the main argument, however, and in +doing so to confine attention to whether there is a sufficient link +between the order and the main findings complained of in the Report, +those in paragraph 377. + +At the beginning of his reasons for ordering costs the Commissioner +expressed the opinion that the power should be exercised whenever the +conduct of a party at the hearing has materially and unnecessarily +extended the duration of the hearing. His following reasons include +criticisms of the management of the airline for prolonging the hearing, +and it was contended before us by Mr Baragwanath that they go no +further. We are unable to accept that contention. In reciting the +circumstances leading to the orders for costs the Commissioner expressly +includes the chief executive's order for documents to be destroyed and +says, "The cards were produced reluctantly, and at long intervals, and I +have little doubt that there are one or two which still lie hidden in +the pack". We think that such language would naturally be understood by +a reasonable reader to refer back to the matters more fully developed in +the section of the Report headed "The stance adopted by the airline +before the Commission of Inquiry", a section culminating in paragraph +377 with its references to "a pre-determined plan of deception ... an +attempt to conceal a series of disastrous administrative blunders ... an +orchestrated litany of lies". The impression almost inevitably created +is that, to adapt words used by Williams J. delivering the judgment of +this Court in _Cock_ v. _Attorney-General_ (1909) 28 N.Z.L.R. 405, 421, +the judgment for costs was in fact, though not in name, a punishment. +The reasons given for the costs orders have definite echoes of +paragraph 377 and the immediately preceding paragraphs. The airline was +being required to pay costs, and not for delaying tactics simply. A +significant part of the reasons was that in the view of the Commissioner +its chief witnesses had been organized to conceal the truth. + +It is true that, on purely verbal grounds, refined distinctions can be +drawn between the sections of the Report dealing with the airline's +stance at the inquiry and with costs; but we have no doubt that their +overall effect is that most readers would understand them as closely +associated. It follows, we think, that if the findings in paragraph 377 +are invalid for excess of jurisdiction or breach of natural justice they +should be seen as playing a material part in the order for $150,000 +costs and as requiring the Court to set aside that order. Irrespective +of the order for costs, we think that there are strong arguments to +support the view that there is jurisdiction to review the findings in +challenged paragraphs on grounds relating to jurisdiction and natural +justice. There is a good deal of support in the authorities for +excluding or strictly limiting judicial review of Commission findings +and Mr Baragwanath carefully put the arguments forward. But, as we say, +there are reasons why the Court ought not to adopt the facile approach +of saying that the function of the Commission was merely to inquire and +report and that as the Commission's findings bind no-one they can be +disregarded entirely as having no legal effect. + + +Scope of Royal Commission + +As has been the practice in New Zealand when a Commission of Inquiry +consists only of or is chaired by a High Court Judge, the Erebus +Commission was a Royal Commission in that the warrant was expressed to +be issued under the authority of the Letters Patent of 1917 constituting +the office of Governor-General. One of the powers delegated by the +Letters Patent to the Governor-General is to "constitute and appoint, in +Our name and on Our behalf, all such ... Commissioners ... as may be +lawfully constituted or appointed by Us". The warrant was also expressed +to be issued under the authority of and subject to the provisions of the +Commissions of Inquiry Act 1908, and s. 15 of that Act extends and +applies not only to inquiries under statutory Commissions appointed by +the Governor-General or Governor-General in Council but also to +inquiries under the Letters Patent. This means inter alia that +statutory-powers of summoning witnesses and requiring the production of +documents apply, that a Judge of the High Court acting as Commissioner +has the ordinary judicial immunity, and that interested persons have +statutory rights to be heard under s. 4A, inserted by an amendment made +in 1980 shortly before the inquiry now in question began. Section 2 of +the 1908 Act empowers the Governor-General by Order-in-Council to +appoint any person to be a Commission to inquire into and report upon +any question arising out of or concerning a range of matters. The +relevant one is "(e) Any disaster or accident (whether due to natural +causes or otherwise) in which members of the public were killed or +injured ..." In giving statutory power to appoint Commissions and +listing permissible subjects the Act differs from the Evidence Acts +considered in Australian cases. The Australian Acts presuppose the +existence of Commissions appointed under prerogative or inherent +executive powers and merely confer ancillary powers of compelling +evidence and the like. Under Acts of that type the validity of the +Commission depends on the common law and the division of powers in the +Australian Constitution. Under the New Zealand Act a Commission can be +given a statutory source for its basic authority even if it is a Royal +Commission and has a prerogative source as well. + +The Erebus Commission was appointed to inquire into the causes and +circumstances of the crash. Among the particular questions referred to +it was: + + (g) Whether the crash of the aircraft or the death of the + passengers and crew was caused or contributed to by any person + (whether or not that person was on board the aircraft) by an act or + omission in respect of any function in relation to the operation, + maintenance, servicing, flying, navigation, manoeuvring, or air + traffic control of the aircraft, being a function which that person + had a duty to perform or which good aviation practice required that + person to perform? + +All the terms of reference fall well within s. 2 (e). The Commission was +not appointed to inquire into allegations of crime so we are not now +called upon to go into the question whether a Royal Commission can be +appointed for such a purpose, on which New Zealand and Australian +authorities diverge (see _In re The Royal Commission on Licensing_ +(1945) N.Z.L.R. 665, 679; and D.R. Mummery "Due Process and +Inquisitions", 97 L.Q.R. 287). Nevertheless paragraph 377 of the Royal +Commission Report contains findings of organized perjury. The judgment +in the leading New Zealand case, _Cock_ v. _Attorney-General_, while +denying that the prerogative can authorize a Commission with the main +object of inquiring into alleged crimes, recognizes at p. 425 that a +Commissioner may investigate an alleged crime if to do so would be +"merely incidental to a legitimate inquiry and necessary for the purpose +of that inquiry". We think that the test must be what is reasonably +incidental to valid terms of reference. In relation to paragraph 377 the +allegation of excess of jurisdiction turns accordingly on whether the +findings are reasonably incidental to an inquiry into the causes and +circumstances of the crash. + +It is difficult to find reasons why the Court should refuse to entertain +that question. While Commissions of mere inquiry and report are largely +free from judicial control, there is strong authority indicating that +the Courts have at least a duty to see that they keep within their terms +of reference. We agree with the opinion of Myers C.J. in the _Royal +Commission on Licensing_ case at p. 680 that it is implicit in all the +judgments in the Privy Council and the High Court in _Attorney-General +for the Commonwealth of Australia_ v. _Colonial Sugar Refining Co. Ltd_ +(1914) A.C. 237, 15 C.L.R. 182, that if it can be said in advance that +proposed questions are clearly outside the scope of the inquiry they are +irrelevant and cannot be permitted. In the _Royal Commission on +Licensing_ case that very principle was applied in this Court, it being +held that certain matters were not within the ambit of the Commission's +inquiry. That decision was given on a case stated by the Royal +Commission under ss. 10 and 13 of the 1908 Act, but the _Sugar Company_ +case was an action for declaration and injunctions and the procedure was +expressly approved in the judgment of their Lordships delivered by +Viscount Haldane L.C. ((1914) A.C. at 249-50). Similarly in _McGuinness_ +v. _Attorney-General_ (1940) 63 C.L.R. 73 the High Court, on an appeal +from a conviction for refusing to answer a question touching the subject +matter of an inquiry by a Commissioner, accepted without any apparent +difficulty that the Court had authority to determine whether the +question was relevant. + +We do not overlook that the cases just cited were concerned with the +scope of questions that might be put to witnesses under compulsory +powers given by statute. They were not directly concerned with the scope +of findings in reports. But if the Court has jurisdiction to determine +the true scope of a Commission's inquiry and require the Commission to +keep within that scope there are obvious arguments that it should have a +corresponding jurisdiction in the matter of findings. A vital part of +the constitutional role of the Courts is to ensure that all public +authorities, whether they derive their powers from statute or the +prerogative, act within the limits of those powers. + +A different view was taken by Stephen J. sitting at first instance in +chambers in _R._ v. _Collins_ (1976) 8 A.L.R. 691, but we note the +opinion expressed in several Canadian cases that the Court will +intervene where a Commissioner has inquired or seeks to inquire into +matters outside his terms of reference: _Re Sedlmayr_ (1978) 82 D.L.R. +(3d.) 161; _Re Anderson_ (1978) 82 D.L.R. (3d.) 706; _Landreville_ v. +_The Queen_ (1973) 41 D.L.R. (3d.) 574; _Landreville_ v. _The Queen_ +(No. 2) (1977) 75 D.L.R. (3d.) 380, 400-402. + +In _Re Royal Commission on Thomas Case_ (1980) 1 N.Z.L.R. 602 a Full +Court (Molier, Holland and Thorp JJ.) held inter alia that the Court may +prohibit a Commission from acting in excess of its jurisdiction and that +the creation of a Commission pursuant to the Letters Patent does not +exempt it from the supervisory role of the Court. However part of the +Full Court's decision in that case is the subject of a pending appeal to +this Court and other proceedings relating to the Thomas Commission have +been moved into this Court. So we refrain from expressing any final view +upon it. + +For the foregoing reasons we think that if the applicants make out their +claim that the findings of the Erebus Commission in paragraph 377 are +outside the commissioner's terms of reference, they could be granted a +declaration to that effect at common law. To obtain a setting aside of +the findings under s. 4 (2) of the Judicature Amendment Act 1977 they +have to show in addition that the findings were made in the exercise of +a statutory power of decision. We think this requirement should not +present final difficulty if regard is had to the evident intent and +spirit of the 1972 Act and particularly the amendments made by +Parliament in 1977. + + +Judicature Amendment Act 1972 + +Was the statutory power one of _decision_? The 1977 Amendment Act +brought statutory investigations or inquiries into rights or liabilities +within the definition of "statutory power". An inquiry into whether any +person caused or contributed to the crash by an act or omission in +respect of his duties is an inquiry into liabilities. But that is less +important for present purposes than the fact that the Amendment Act also +extended the concept of statutory powers of decision to those +"affecting" the rights of any person. The purpose was manifestly to make +the ambit of review under the Act at least as wide as at common law. +This point is dealt with in _Daemar_ v. _Gilliand_ (1981) 1 N.Z.L.R. 61. + +We think it would be very difficult to justify an argument that findings +likely to affect individuals in their personal civil rights or to expose +them to prosecution under the criminal law are decision "affecting" +their rights within the meaning of the Act. In the present case, for +example, it was virtually certain that the findings of the Erebus +Commission would be published by the Government. The effect on the +reputation of persons found guilty of the misconduct described in the +Report was likely to be devastating, at common law every citizen has a +right not to be defamed without justification. Severe criticism by a +public officer made after a public inquiry and inevitably accompanied by +the widest publicity affects that right especially when the officer has +judicial status and none the less because he has judicial immunity. + +The present case is in many ways unique and, if the findings in +paragraph 377 were made without jurisdiction or contrary to natural +justice, it affords a striking instance of how contrary to the public +interest it would be if the Courts were not prepared to protect the +right to reputation. The magnitude of the disaster, bringing tragedy to +many homes in New Zealand and overseas, and the fact that the national +airline was involved meant that the national attention was focused on +the inquiry. There are imputations of collective bad faith which had +started from a high place in the company and all this was likely to +receive the widest publicity, further, the findings in paragraph 377 +amounted to public and official disclosures of alleged criminal conduct +and led to investigation by the police to determine whether charges +should be laid. In the event it was announced shortly before the hearing +of the present case that there would be no such charges, but clearly the +individuals concerned were in fact exposed to the hazard of prosecution +as a natural consequence of the Report. + +In interpreting the 1977 legislation we think that a narrow conception +of rights and of what affects rights would not be in accord with the +general purposes of the Act. A broad, realistic and somewhat flexible +approach would enable the Act to work most effectively as an aid to +achieving justice in the modern community. + + +Natural Justice + +This Court has had to examine and apply the principles concerning +natural justice and fairness quite often in recent years. In translating +the ideals of natural justice and fairness into current operation in New +Zealand we have been influenced as to general principles mainly by +decisions of the Privy Council and the House of Lords but, of course, we +have had New Zealand conditions and practicalities very much in mind. +The result has been a pragmatic approach. + +Some overseas Courts have held that if all that occurs is inquiry and +report and the report is not in law a condition precedent to some +further step the rules of natural justice are automatically excluded. +That was the premise, for instance, of the High Court of Australia in +_Testro Bros. Pty. Ltd._ v. _Tait_ (1963) 109 C.L.R. 353. A contrary +approach is to be found in the judgement of Schroeder J.A. representing +the view of the majority of the Ontario Court of Appeal in _Re Ontario +Crime Commission_ (1962) 133 C.C.C. 116, although that case depends +partly on Ontario statute law. There is little attraction in the idea of +automatic exclusion. Commissions of Inquiry have compulsory statutory +powers of insisting on evidence and their findings can affect rights in +the ways already outlined. It seems to us highly unlikely that the New +Zealand Parliament intended them to be wholly free of the elementary +obligation to give persons whom they have in mind condemning a fair +opportunity for correcting or contradicting any relevant allegation. + +Some reinforcement for the view that they are under that obligation is +to be found in some added considerations. Section 4A of the Commissions +of Inquiry Act, enacted in 1980 in place of briefer provisions and in +time for the Erebus inquiry, provides: + + "4A. Persons entitled to be heard--(1) Any person shall, if he is + party to the inquiry or satisfies the Commission that he has an + interest in the inquiry apart from any interest in common with the + public, be entitled to appear and be heard at the inquiry. + + (2) Any person who satisfies the Commission that any evidence given + before it may adversely affect his interests shall be given an + opportunity during the inquiry to be heard in respect of the matter + to which the evidence relates. + + (3) Every person entitled, or given an opportunity, to be heard + under this section may appear in person or by his counsel or + agent." + +The section may be seen as a recognition by Parliament that natural +justice should apply. It does not purport to enact a complete code of +procedure or to cover the whole field of natural justice, which would +not be easy in a statute of this general kind. The statute specifically +requires an opportunity to be heard to be given to any person who shows +that evidence may adversely affect his interests. In the parallel +situation of the statutory investigation which must be undertaken +following any aircraft accident considerations of fairness are carefully +spelled out in Regulation 15 (1) of the Civil Aviation (Accident +Investigation) Regulations 1978. There it is provided that "where it +appears to an Inspector that any degree of responsibility for an +accident may be attributable to any person, that person or, if he is +dead, his legal personal representatives, shall, if practicable, be +given notice that blame may be attributed to him, and that he or they +may make a statement or give evidence, and produce witnesses, and +examine any witnesses from whose evidence it appears that he may be +blameworthy". In the case of the earlier investigation by Mr. +Chippindale into the Erebus disaster that very step was taken. + +In his judgment in the Court in _Re the Royal Commission on the State +Services_ (1962) N.Z.L.R. 96, 117, Cleary J. while stressing the wide +discretion of Commissions to regulate their own procedure said plainly +that the one limitation is that parties cited and persons interested +must be afforded a fair opportunity of presenting their representations, +adducing their evidence, and meeting prejudicial matter. That judgment +was given with reference to the old s. 4A, now replaced by the section +already quoted. What Cleary J. said, particularly about the general +absence of a right to be represented by counsel, must now be read +subject to the new provisions. But his expression "prejudicial matter" +was a general one. It ought not, we think, to be read down in some way +so as to exclude suggestions of conspiracy which may have evolved in the +mind of a Commission without being specifically raised in evidence or +submissions. + +A suggestion of an organized conspiracy to perjure is different from the +possibility commonly faced by individual witnesses that their evidence +may be disbelieved. Grave findings of concerted misconduct in connection +with the inquiry ought not to be made without being specifically raised +at the inquiry. Once the thesis of such a conspiracy had emerged in the +Commissioner's thinking as something upon which he might report, he +would have had power, if that question were indeed reasonably incidental +to his terms of reference, to reconvene the hearing if necessary so that +the alleged conspirators could be fairly confronted with the allegation. +See the speech of Lord Russell of Killowen in _Fairmount Investments +Ltd._ v. _Secretary of State for the Environment_ (1976) 2 All E.R. 865, +and the judgement of Lord Parker C.J. in _Sheldon_ v. _Bromfield +Justices_ (1964) 2 Q.B. 573, 578. In fact in the present case but for a +far less significant reason the Commissioner himself actually considered +the possible need to reconvene the hearing after certain enquiries had +been made on his instructions following the taking of evidence in +public. The matter is mentioned in paragraph 358 of the Report. + +_Landreville_ v. _The Queen_ (No. 2) (1977) 75 D.L.R. (3d.) 380, +402-405, was decided in the end on just such a ground. It was held that +a Commissioner, who happened to be a distinguished Judge, had failed to +put to the person whose conduct was expressly subjected to investigation +by the terms of reference of the Commission a very serious allegation +upon which a finding was made in the report; and that the Commission +should have been reconvened for that purpose. There the relevant rule of +natural justice was fully embodied in a statutory provision. We think +that the position is the same under the New Zealand Commissions of +Inquiry Act supplemented by the common law. + +All these considerations suggest that the Commission was bound by the +broad requirements of natural justice. These included a reasonable +opportunity of meeting the unformulated allegation of organized +deception and concealment that was apparently passing through the +Commission's mind. Some of the reasons why experience has shown the +importance of this sort of opportunity were well put by Megarry J. in +_John_ v. _Rees_ (1970) 1 Ch. 345, 402.: + + "It may be that there are some who would decry the importance which + the courts attach to the observance of the rules of natural + justice. 'When something is obvious,' they may say, 'why force + everybody to go through the tiresome waste of time involved in + framing charges and giving an opportunity to be heard? The result + is obvious from the start.' Those who take this view do not, I + think, do themselves justice. As everybody who has anything to do + with the law well knows, the path of the law is strewn with + examples of open and shut cases which, somehow, were not; of + unanswerable charges which, in the event, were completely answered; + of inexplicable conduct which was fully explained; of fixed and + unalterable determinations that, by discussion, suffered a change. + Nor are those with any knowledge of human nature who pause to think + for a moment likely to underestimate the feelings of resentment of + those who find that a decision against them has been made without + their being afforded any opportunity to influence the course of + events." + +In this particular case something more should be said. The applicants +contend that this is not simply a case where the conspiracy suggestion +could not have been rebutted. They plead in their statement of claim +that the Commissioner's findings to that effect are not based on +evidence of probative value. Elsewhere in the present judgment we deal +with aspects of these arguments. Here, dealing with principles, we add +that fairness is not necessarily confined to procedural matters. It can +have wider range. Remedies in this field are discretionary and the law +not inflexible. If a party seeks to show not only that he did not have +an adequate hearing but also that the evidence on which he was condemned +was insubstantial, the Court is not compelled to shut its eyes to the +state of the evidence in deciding whether, looking at the whole case in +perspective, he has been treated fairly. + + +Factual Background + +In a written synopsis of argument presented before this Court by counsel +for Air New Zealand it was said that background matters had to be +understood as they were entirely relevant to the complaints made by the +applicants in the present proceedings. But that "the Applicants do not +propose to canvass any factual matters which fall outside the range of +their specified allegations". In regard to that last matter we emphasize +again that this case (as counsel well realized) cannot be used to attack +the Royal Commission findings as to the cause of the crash. On behalf of +the applicants it was made clear nonetheless that their acceptance of +the jurisdictional bar to such a challenge in the Courts did not mean +and should not be used to draw any inference that they accepted the +causation findings themselves (at least in the unqualified form in which +they are set down in the Report). It is simply that they do all readily +accept as they must that in no sense can these proceedings become an +appeal against those findings. It is right to add that throughout the +hearing in this Court that attitude has very properly been reflected in +the submissions we heard. Thus the conclusions as to the cause of the +crash must and do stand. + +Late in 1976 Air New Zealand decided to commence a series of +non-scheduled sightseeing journeys from New Zealand to the Ross +Dependency region and return to this country without a touch-down at any +intermediate point. They began with two flights in February 1977. There +were four further journeys in October and November 1977, four in +November 1978, and three more in November 1979--on 7th, 14th and 21st. +The accident flight was to be the fourteenth of the series. In 1977 the +designated route was one which used Cape Hallett on the north-eastern +point of Victoria Land as the first southern waypoint on the continent +itself en route further south either to a point adjacent to the Williams +ice landing field (near Scott and McMurdo bases) or alternatively the +south magnetic pole. One or other became the southernmost waypoint, the +magnetic pole destination being used at the discretion of the pilot if +weather conditions made the McMurdo area unsuitable for sightseeing. + +Scott and McMurdo bases are located close together at the south-western +tip of Ross Island which forms the eastern coast of McMurdo Sound. On +the island there are four volcanic mountains including Mt. Erebus, the +highest, at 12,450 feet. The Sound itself, which is about 40 miles long +by 32 miles wide at the narrowest point, lies between mainland +Antarctica and Ross Island and for most of the year it is covered with +flat sea ice. + +The first two flights in February 1977 took place with the necessary +approval of the Civil Aviation Division of the Ministry of Transport and +after clearance with the United States naval authorities who control the +air space in the vicinity of McMurdo Station. Those flights followed a +computer-controlled flight track to Cape Hallett thence directly over +Ross Island and Mt. Erebus at the stipulated minimum height of 16,000 +feet to the McMurdo waypoint. The co-ordinates of that waypoint had been +written correctly into the flight plan as 77° 53' south latitude and +166° 48' east longitude. Three of the pilots who flew to the Antarctic +in November 1977 were available to give evidence and, like the two +earlier pilots, they agreed that at that time the flight plan followed a +track from Cape Hallett to the McMurdo area which passed virtually +overhead Mt. Erebus. However then and on subsequent occasions the +sightseeing aircraft to the McMurdo area arrived in the general vicinity +of Cape Hallett to find clear air further on and took the opportunity of +visual meteorological conditions to veer laterally from the direct +computer flight track from Cape Hallett by tracking to the west along +the coast of Victoria Land and eventually down McMurdo Sound over the +flat sea ice. Ross Island was thus left to the east while near the head +of the Sound the aircraft would turn left in order to fly over Scott +and McMurdo bases and in the vicinity of Ross Island so that a view +would be obtained of Mt. Erebus and the other three mountains there. + +When the decision was made to operate the series of flights to take +place at the end of 1977 a change was made with the approval of the +Civil Aviation Division to permit flights below 16,000 feet down to +6,000 feet in a specified sector south of Ross Island and subject to +such criteria as a cloud base no lower than 7,000 feet, clear visibility +for at least 20 miles and descent under ground radar guidance. It has +been mentioned that similar criteria applied, officially at least, until +the time of the fatal crash. But the written directions were interpreted +by some pilots as leaving them with a degree of discretion to go lower +in ideal weather conditions. + +Then in September 1978 steps were taken to print a flight plan for each +Antarctic journey from a record stored in the Air New Zealand ground +based planning computer. And it is at this stage that the longitude +co-ordinate for the southernmost waypoint was fed into the ground +computer as 164° 48' E. + + +The Flight Track + +The navigation system used by DC10 aircraft is a computerised device +known as the area inertial navigation system (AINS). It enables the +aircraft to be flown from one position to another with great accuracy. +Prior to departure of a flight the AINS aboard the aircraft is +programmed by inserting into its computers the co-ordinates of the +departure and destination points (in degrees of latitude and longitude) +together with those of specified waypoints en route. In the case of the +Antarctic flights (which were engaged on what may be described as a +return trip without touch-down) the southernmost waypoint, like each of +the intermediate positions, was really a reference point to which the +pilot knew the aircraft would be committed if it were left to follow the +computer-directed flight track. And as mentioned the southern point for +the preferred route to the McMurdo area was a ground installation at +Williams Field. + +During 1977 the co-ordinates for each waypoint which comprised the +Antarctic routes had not been stored on magnetic tape for automatic +retrieval and insertion into the navigation computer units of the +aircraft. Instead the flight plan was dealt with manually and upon issue +to the aircrew at the time of departure was manually typed by the pilot +concerned into the aircraft computer units. When the Air New Zealand +ground based computer was used in 1978 to produce computerised Antarctic +flight plans they followed the same format as those that had been +produced earlier. But before the ground computer could be programmed it +had been necessary for an officer of the navigation section to prepare a +written worksheet containing all the waypoints and their respective +latitude and longitude co-ordinates which then were transcribed from the +worksheet. And by reference to the original flight plan used in February +1977 this was done by Mr Hewitt, one of the four members of the +navigation section at airline headquarters. He said in evidence before +the Royal Commission that when he went on to take from his written +worksheet the longitude co-ordinates of the McMurdo waypoint he +mistakenly transcribed the correct figures of 166° 48' as 164° 48' by +inadvertently typing the figure "4" twice. This had the effect of moving +the McMurdo waypoint 25 nautical miles to the west and once in the +aircraft's system the navigation track which then it would follow from +Cape Hallett when under automatic control would be over the[1] Sound +rather than directly to Williams Field. + +At this point it should be mentioned that the print-out of a flight plan +shows not merely the co-ordinate waypoints but also a finely calculated +statement of the direction and distance between them. This last +information is obtained independently from what is called the NV90 +programme of the computer which is able automatically to calculate the +rhumb line track and distance between each of the respective waypoints +once the co-ordinates have been fed into it. This information forms the +basis for the data required to produce the computerised flight plan. So +that finally when a print-out of the plan is obtained it will disclose +not merely the geographical co-ordinates for each waypoint but the true +track direction and the distance in nautical miles from one to the next. +That last information is needed prior to a flight departure in order to +calculate tonnages of fuel during the prospective journey and +accordingly as a flight proceeds it enables the quantity of fuel already +consumed to be checked against the anticipated consumption in the flight +plan print-out. Thus the precise track and distance is used for purposes +of fuel calculations and has importance as a check in navigation. + +All this information is disclosed on page 96 of the Royal Commission +Report where the print-out is shown for the flight plan with the +co-ordinates for McMurdo showing the longitude as 164° 48' east. In the +next column the track direction is given as 188.9° (grid) and the +distance between Cape Hallett and McMurdo as 337 miles. On the facing +page 97 there is a print-out of the flight plan actually used on the +fatal flight which shows the correction made to the longitude, 166° 58' +east. It will shortly be mentioned that when that correction was made +the navigation section say it was thought to involve a minor movement of +only 2.1 miles or 10 minutes of longitude. Despite the very small change +that this could make to the track and distance between the two points a +re-calculation was made and entered into the computer programme as +188.5° (grid) and the distance 336 miles. Compared with the other +figures the difference seems minimal but it was still thought necessary +to assess it and it was done. + + +The Western Waypoint + +The circumstances surrounding the use of the 164° 48' E figures were in +issue before the Royal Commission. It was suggested against the airline +they had not been introduced accidentally: that the movement of the +position 25 miles to the west had been deliberate. If that were so it +would seem that a re-calculation of track and distance would have been +needed and made both for the fuel plan and also as a check for purposes +of navigation. However, no re-calculation of track and distance was made +and entered with the 164° 48' co-ordinate. The figures which actually +appear for track and distance to that point remain precisely the track +and distance figures which were shown in the flight plan to the 166° 48' +point for the first flight in February 1977. For purposes of comparison +a calculation to the "false" waypoint was prepared and put before the +Royal Commission. It showed that a direct track from Cape Hallett to +that point is actually 191° and the distance 343 miles. The point is +referred to in paragraph 230 of the Report within a section headed "The +creation of the false McMurdo waypoint and how it came to be changed +without the knowledge of Captain Collins". + +In paragraph 229 it is said that submissions had been put to the +Commissioner that "the shifting of the McMurdo waypoint was done +deliberately so as to conform" with a track used by military aircraft +proceeding to Williams Field. Then in paragraph 230 there is a summary +of contrary arguments advanced by members of the navigation section to +support their claim of accident. They include-- + + "(c) It was pointed out that if the McMurdo waypoint had been + intentionally moved 25 miles to the west, then the flight plan + would have a corresponding change to the track and distance + information which it previously contained. Instead of a true + heading from Cape Hallett to the NDB of 188.9° and a distance of + 337 nautical miles, there would have been required, in respect of + the changed McMurdo waypoint, a true heading of 191° and 343 + nautical miles. Similar alterations would have had to be made in + respect of a return journey to the true north." + +That is the matter already outlined. Concerning it the Commissioner said +in paragraph 234 that there was "considerable validity in this point" +although then he added: + + "... the Navigation Section may have thought it not necessary to + alter the track and distance criteria from Cape Hallett to McMurdo + for the reason that the pilots were accustomed to flying on Heading + Select down this sector and not by reference to the fixed heading + programmed into the AINS." + +There is a further argument of the navigation section which is +summarized in paragraph 230 (e)-- + + "It was submitted that an alteration to the McMurdo waypoint to + facilitate better sightseeing was not valid because flight captains + had a discretion to deviate horizontally from the flight plan + track." + +The Commissioner accepted that point as "a valid objection" in answer to +the suggestion that the move had been deliberate (paragraph 236). + +However when he came in paragraph 255 (a) to express his final +conclusion upon this general question he initially said this-- + + "The first question is whether the programming of the McMurdo + waypoint into the 'false' position before the commencement of the + 1978 flights was the result of accident or design. On balance, it + seems likely that this transposition of the McMurdo waypoint was + deliberate." + +There is reference at that point to a track and distance diagram +indicating a track down McMurdo Sound, and the sub-paragraph then +continues-- + + "So as I say, I think it likely that the change of the McMurdo + destination point was intended and was designed by the Navigation + Section to give aircraft a nav track for the final leg of the + journey which would keep the aircraft well clear of high ground." + +Then the final portion of paragraph 255 (a) leaves the matter in the +following half-way situation-- + + "However, I propose to make no positive finding on this point. I + must pay regard to the circumstance strongly urged upon me by + counsel for the airline in their closing submissions, namely, that + if the alteration was intentional then it was not accompanied by + the normal realignment of the aircraft's heading so as to join up + with the new waypoint. As I say, I think this latter omission is + capable of explanation but it is a material fact in favour of the + Navigation Section which I cannot disregard, and it is the single + reason why I refrain from making a positive finding that the + alteration of the waypoint was intentional." + +It may be that in speaking of a single reason in the last sentence of +the extract the Commissioner put aside his earlier unqualified +conclusion that the matter set out in paragraph 230 (e) was also "a +valid objection" to the suggestion that the waypoint had been moved +deliberately. In any event the eventual and significant finding +concerning the matter is contained in the following sub-paragraph 255 +(b): + + "I believe, however, that the error made by Mr Hewitt was + ascertained long before Captain Simpson reported the cross-track + distance of 27 miles between the TACAN and the McMurdo waypoint, + and I am satisfied that because of the operational utility and + logic of the altered waypoint it was thereafter maintained by the + Navigation Section as an approved position." + +At this point it is necessary to explain the reference in that +sub-paragraph to Captain Simpson; and then, if it be assumed that "the +altered waypoint ... was thereafter maintained ... as an approved +position", it is necessary to understand the reasons given by the +Commissioner for the change back to Williams Field. If the altered +waypoint had been adopted as a better position why was it then thought +that it had to be discarded? + + +Correction of co-ordinates + +It was not until 14th November 1979 that any question arose about the +McMurdo waypoint. On that day Captain Simpson had taken the second +November 1979 sightseeing flight to the Antarctic and something +persuaded him to raise the matter of the southern waypoint with Captain +Johnson, the Flight Manager Line Operations. There is a difference of +opinion as to precisely what was said by Captain Simpson to Captain +Johnson but according to the evidence of those in the navigation section +they thought that when they checked up-to-date records of the +co-ordinates at McMurdo Station against the original NV90 flight plan +what had been brought forward for notice was the small difference of 10 +minutes of longitude to which reference has been made. They said this +represented the recent relocation of the tactical air navigation system +(the TACAN) at Williams Field. Accordingly Mr Brown of the navigation +section wrote into his worksheet a corrected position of 77° 52.7' S and +166° 58' E and entered those figures into the system on 16th November. +But the amendment was not made in the live flight planning system until +the early hours of 28th November. According to the members of the +navigation section all this was done without knowledge that the effect +of introducing the amended figures would be to override "164° 48'" and +so alter the co-ordinate by 2° 10' rather than 10'. + +The Commissioner rejected the explanations he had heard to the effect +that Captain Simpson's information seemed to point to quite a minor +movement to the up-dated position of the TACAN. He stated that there +appeared to have been clear advice by Captain Simpson that the "false" +waypoint was 27 miles west of it. In addition he rejected the possible +explanation that the advice had been misinterpreted by Captain Johnson +to whom it had been given, and he adopted instead what in paragraph 245 +he described as "the second explanation": + + "(b) The second explanation is that both Captain Johnston and the + Navigation Section knew quite well that the McMurdo waypoint lay 27 + miles to the west of the TACAN and that since his track had not + officially been approved by the Civil Aviation Division it should + therefore be realigned with the TACAN and then someone forgot to + ensure that Captain Collins was told of the change. Such an + interpretation means that the evidence as to the alleged belief of + a displacement of only 2.1 miles is untrue." + + Then in paragraph 255 (d) he said this: + + "If, as I have held, the Navigation Section knew the actual + position of the McMurdo waypoint as being 27 miles to the west of + the TACAN, then why did they not submit to Captain Johnson, or to + flight Operations Division, that the waypoint should remain where + it was? One view is that the Flight Operations Division expected, + in terms of Captain Johnson's letter to the Director of Civil + Aviation dated 17 October 1979, that the next edition of the Ross + Sea chart NZ-RNC4 would contain the official Air New Zealand flight + path to McMurdo, and that the safest course would be to put the + destination point back to the approximate location at which Civil + Aviation Division had thought it had always been." + +That last suggestion was not put to any of the navigation witnesses at +the Inquiry. It implies that although those in the navigation section +believed the airline had been using a computer track to the west of Ross +Island for the past year because it was the better route they +nevertheless suddenly became uneasy lest knowledge of the matter would +now reach the Civil Aviation Division which had not given its official +blessing to the change. The idea apparently is that because the airline +might receive an official rebuke the officers in the section made their +own independent decision that the route must once again be directed back +over Mt. Erebus. + +There was no evidence at all before the Royal Commission that the +approval of the Civil Aviation Division was needed for a change from the +direct Cape Hallett/McMurdo route. An affidavit in support of the +present application for review indicates that if the matter had been +raised at the Inquiry members of the navigation section would have +wished to present evidence from the Civil Aviation Division that "a +change of route from the direct route to the McMurdo Sound route would +not have required CAD approval and therefore could have been lawfully +accomplished by the airline without reference to CAD". That situation +may have been anticipated by the Commissioner himself for by reference +to the false waypoint and the earlier consequential movement of the +computer flight track down McMurdo Sound to the west he said that +although approval of the route by the Civil Aviation Division should +have been obtained it "would have been automatic" (paragraph 150). + +In paragraph 255 (f) of the Report the explanation from all four members +of the navigation section is described in the following way: + + "In my opinion this explanation that the change in the waypoint was + thought to be minimal in terms of distance is a concocted story + designed to explain away the fundamental mistake, made by someone, + in failing to ensure that Captain Collins was notified that his + aircraft was now programmed to fly on a collision course with Mt. + Erebus." + +That finding is one of those directly challenged in the present +proceedings. + + +Advice of the Change + +A different matter was considered by the Commissioner in relation to the +change made in November 1979 to move the waypoint back to the TACAN at +Williams Field. As usual a signal was sent to the United States base at +McMurdo with advice that the aircraft was to fly to the Antarctic on +28th November and the flight plan for the journey. And in the list of +waypoints appears the word "McMurdo" in lieu of the geographical +co-ordinates which had appeared in the equivalent signal for the flight +three weeks earlier. The message had been prepared by Mr Brown, one of +the four officers in the navigation section. + +The use of the word "McMurdo" was the subject of an idea put by the +Commissioner to Mr Hewitt, who was the second of the witnesses from the +navigation section. The Commissioner asked: + + "I know you have explained to me how that happened but someone may + suggest to me before the enquiry is over that the object was to + thats (sic) not to reveal there had been this long standing error + in the co-ordinates and that is why the word McMurdo was relayed to + them. I take you would not agree with that" + + Mr Hewitt said: + + "Certainly not sir." + +The suggestion had not been raised earlier at the Inquiry and it was not +mentioned by anybody subsequently. In particular it was not put to Mr +Brown himself when the latter was called to give evidence three months +later. However the Commissioner expressed his view upon the matter in +the following way. In paragraph 255 (e) he said this-- + + "In my opinion, the introduction of the word 'McMurdo' into the Air + Traffic Control flight plan for the fatal flight was deliberately + designed to conceal from the United States authorities that the + flight path had been changed, and probably because it was known + that the United States Air Traffic Control would lodge an objection + to the new flight path." + +It will be observed that the last few words are qualified by "probably". +It appears that the Commissioner was told during a visit to Antarctica +that the United States authorities would not have approved a flight path +over Ross Island. But there was no evidence that Air New Zealand had +ever received an intimation from the United States authorities to that +effect or that the navigation section had reason to think they would so +object. The qualification seems to reflect that position. In the result, +when the findings in the two sub-paragraphs 255 (e) and (f) are put +together they reveal the theory that at one at the same time the +navigation section felt obliged to conceal from officials in Wellington +the use of a flight track down McMurdo Sound that was regarded +favourably by officials at McMurdo Station and from officials at McMurdo +Station a flight track over Ross Island that was regarded favourably by +officials in Wellington. + + +Whiteout + +In relation to the cover-up allegations that have been made against the +executive officers some reference should be made to their knowledge or +otherwise of the freak meteorological condition known as "the whiteout +phenomenon". Did they know or suspect that such a condition must have +been an explanation for what happened and yet still be determined as the +Commissioner found, to promote pilot error as the cause of the crash? + +It is something that can be mentioned quite briefly. The Royal +Commission Report has made it clear the phenomenon can result in a loss +of horizon definition and depth perception and is a great hazard for +those who fly in arctic or antarctic conditions. The Commissioner found +that at the critical time "air crew had been deceived into believing +that the rising white terrain ahead was in fact quite flat and that it +extended on for many miles under the solid overcast". This danger is +something well known to those who fly regularly in those areas. +Unfortunately it is not so well known by others, and as the Commissioner +stated in paragraph 165 it was not understood by any of those involved +in this case. He said: + + "So far as I understand the evidence, I do not believe that either + the airline or Civil Aviation Division ever understood the term + 'whiteout' to mean anything else than a snowstorm. I do not believe + that they were ever aware, until they read the chief inspector's + report, of the type of 'whiteout' which occurs in clear air, in + calm conditions, and which creates this visual illusion which I + have previously described and which is, without doubt, the most + dangerous of all polar weather phenomena." + +It would seem that if those at airline headquarters were unaware of the +deceptive dangers of the whiteout phenomenon they could not have +deliberately ignored it as a factor that should be taken into account in +favour of the aircrew. + + +Instructions of the Chief Executive + +In paragraph 41 and following paragraphs there is reference to "what +happened at the airline headquarters at Auckland when the occurrence of +the disaster became first suspected and then known". It is explained +that the navigation section became aware of the fact that when the +McMurdo waypoint co-ordinates were corrected in November 1979 the +movement was not one of 2.1 miles within the vicinity of Williams Field +but a distance of 27 miles from longitude 164° 48' E; and that "by 30 +November the occurrence of this mistake over the co-ordinates was known +not only to the Flight Operations Division but also to the management of +the airline. In particular it had been reported to the Chief Executive +of Air New Zealand, Mr. M.R. Davis". At that point there follows the +serious allegation in paragraph 45 already cited-- + + "The reaction of the chief executive was immediate. He determined + that no word of this incredible blunder was to become publicly + known." + +On the face of it the unqualified idea expressed in that sentence is +that Mr. Davis had decided to suppress from everybody outside the +airline all information about the changed flight track. But if that +meaning were intended it has been greatly modified in paragraph 48. +There it is said-- + + "It was inevitable that these facts would become known. Perhaps the + chief executive had only decided to prevent adverse publicity in + the meantime, knowing that the mistake over the co-ordinates must + in the end be discovered." + +Of course if the decision were merely "to prevent adverse publicity in +the meantime" then such an attitude could not in any way be consistent +with an attempt "orchestrated" by Mr. Davis to hid from official +scrutiny what finally was held by the Commissioner in paragraph 393 to +be "the single dominant and effective cause of the disaster". Despite +that, paragraph 48 goes on to say this: + + "This silence over the changing of the co-ordinates and the failure + to tell the air crew was a strategy which succeeded to a very + considerable degree. The chief inspector discovered these facts + after he had returned from Antarctica on or about 11 December + 1979. In his report, which was published in June 1980, the chief + inspector referred to what he termed the 'error' in the McMurdo + destination point, and the fact that it had been corrected a matter + of hours before the flight left Auckland." + +It is difficult to understand why the Commissioner considered "this +silence over the changing of the co-ordinates and the failure to tell +the air crew" had been "a strategy which succeeded to a very +considerable degree". The information had been given to the chief +inspector immediately on his return from Antarctica. That much is +acknowledged in the two sentences that follow. It becomes apparent, +however, that this was criticized not because the information had been +kept away from those to whom it most certainly had to be given, those +charged with the important responsibility of inquiring into the causes +of the disaster. Mr. Davis was criticized for nothing more than his +failure to release the material to the outside world. That is made plain +by a subsequent statement towards the end of the Report which leads on +to the very severe pronouncement in paragraph 377 that the Commissioner +had been obliged to listen to "a predetermined plan of deception ... an +orchestrated litany of lies". The relevant passage is in paragraph 374: + + "The fact that the navigation course of the aircraft had been + altered in the computer had been disclosed by the chief inspector + in his report dated 31 May 1980, 6 months after the disaster. But + it was not until the Commission of Inquiry began sitting that the + airline publicly admitted that this had occurred." + +The effect of the absence of general publicity that the information was +given rather than its ready provision by the airline to Mr. Chippindale +on the day after his return from the crash site is described in the +remaining portion of paragraph 48 which continues in the following way: + + "Then the chief inspector went on to say in his report (paragraph + 2.5): + + 'The error had been discovered two flights earlier but neither crew + of the previous flight or that of the accident flight were advised + of the error by the flight despatcher prior to their departure.' + + The chief inspector did not make it clear, however, that the + computer flight path of TE 901 had been altered before the flight, + and that the alteration had not been notified to the air crew. Had + that fact been disclosed in the chief inspector's report then the + publicity attending the report would undoubtedly have been + differently aligned ... the news blackout imposed by the chief + executive was very successful. It was not until the hearings of + this Commission that the real magnitude of the mistake by Flight + Operations was publicly revealed." + +Concerning that last part of paragraph 48 it seems that the +Commissioner's remark immediately following the extract from paragraph +2.5 is inaccurate. It appears to suggest either that the chief inspector +was unaware of the fact that the alteration to the co-ordinates "had not +been notified to the air crew"; or that if he had been made aware of +that fact then he had failed to bring it to public attention in his +report as the next sentence suggests. But Mr. Chippindale was both aware +of all this and he said so. In paragraph 1.17.1 he explicitly stated: + + "This error was not corrected in the computer until the day before + the flight. Although it was intended that it be drawn to the + attention of the previous crew, immediately prior to their + departure this was not done, _nor was it mentioned during the + pre-flight dispatch planning for the crew of the accident flight_". + (Emphasis added.) + +The "pre-flight dispatch planning" mentioned in those last words was the +occasion of final briefing of the aircrew immediately before the +aircraft left Auckland on the morning of 28th November 1981. + +A different comment upon paragraph 48 is central in this part of the +case. It is very hard to understand why the chief executive officer of +this airline should have had any duty to pass on for debate and public +prejudgment the same material that in accord with his responsibility had +been properly and immediately placed before the appointed official +required and well equipped to assess it. + + +"Irrelevant" Documents + +At the beginning of this judgment a different aspect of paragraph 45 is +explained by contrast with the following paragraph 46 which correctly +summarizes instructions given by Mr Davis for the disposal of surplus +copies of documents lest they be leaked to the news media. In paragraph +46 it is explained by the Commissioner that "his instructions were that +_only copies of existing documents were to be destroyed_. He said that +he did not want any surplus document to remain at large in case its +contents were released to the news media by some employee of the +airline. The chief executive insisted that his instructions were that +all documents of relevance were to be retained on the single file" +(emphasis added). There was no evidence before the Royal Commission to +any contrary effect. But in the preceding paragraph a different +impression is given. The relevant part of paragraph 45 reads-- + + "He directed that all documents relating to Antarctic flights, and + to this flight in particular, were to be collected and impounded. + They were all to be put on one single file which would remain in + strict custody. Of these documents"-- + +that is, _all_ documents relating to the Antarctic flights--the sentence +continues: + + "all those which were not directly relevant were to be destroyed. + They were to be put forthwith through the company's shredder." + +Then in paragraph 54 the actual instruction is taken into a further +dimension where it is described as "this direction on the part of the +chief executive for the destruction of 'irrelevant documents'". And one +serious complaint made by the applicants about the Royal Commission +Report is that what could be an understandable direction for the +_retention_ of one copy on a master file _of all relevant documents_ has +become an unacceptable instruction that _irrelevant documents_ (related +to the Antarctic flights nonetheless) _should be destroyed_. We think +the complaint is justified. + +At the same early stage of the Report the Commissioner gave his +attention to the question as to what if anything was done about the +suppression of documentary evidence. He said in paragraph 52: + + "As will be explained later, there was at least one group of + documents which certainly were in the possession of the airline as + from the day following the disaster, and which have never been seen + since. I am referring here to the flight briefing documents of + First Officer Cassin.... (He) had left his briefing documents at + home. They were recovered from his home on the day after the + disaster by an employee of the airline. As I say, they have never + been seen since." + +In the following paragraph 53 he observed--"If the explanation of the +chief executive is to be accepted, then in the opinion of someone the +briefing documents of First Officer Cassin, the co-pilot, were thought +to be irrelevant to the disaster"; and in paragraph 54--"it follows that +this direction on the part of the chief executive for the destruction of +'irrelevant documents' was one of the most remarkable executive +decisions ever to have been made in the corporation affairs of a large +New Zealand company". + +Those remarks require some brief comment. It must be explained that the +"employee of the airline" mentioned at the end of paragraph 52 was +Captain Crosbie. It is true that he was "an employee of the airline" but +he did not go to the home of First Officer Cassin in that capacity. He +had been asked by the Airline Pilots Association, the group which +throughout the inquiry had very properly been concerned to protect the +interests of the two deceased pilots, to act on their behalf for the +purpose of bringing immediate aid and comfort to the two widows. His +evidence was to the effect that he had gone to each of the homes for +that purpose; that sometime later a member of Mrs Cassin's family had +invited him to take away a box containing such items as flight manuals; +and he said he had done no more than that. He flatly denied taking any +flight documents. But even if he had, the alleged conspiracy has always +been limited in the Royal Commission Report to the executive pilots and +other officers in the management area. It has never been suggested that +it had extended as well to the airline pilots. As may be expected, +throughout both investigations they have done their conscientious best +to protect the valued reputations of their deceased colleagues. + +There was documentary evidence before the Inquiry to the effect that on +30th November 1979 an in-house committee of Air New Zealand met on the +instruction of Mr Davis for the purpose of deciding how to collect +together all available information relevant to the accident. It seems +that it began its practical work on Monday 3rd December. In that regard +and as an example of the way in which the applicants say the cover-up +allegation could have been answered by those affected they placed +material before this Court which would suggest that the formation of +such a committee is a conventional step taken by an airline when +confronted with any serious disaster, that it was required by this +company's Accident Investigation Procedures Manual, and that this +committee was appointed accordingly. If it had been before the Inquiry +it would have supported the view that Mr Davis had decided the chairman +should not be associated with the flight operations side of Air New +Zealand and for that reason he appointed Mr Watson who had charge of +certain related companies. There is also an affidavit sworn by Captain +Priest who was appointed by the Airline Pilots Association to sit as its +representative on the committee. Taken at its face value it is to the +effect that he took part in the committee's work from the meeting on 3rd +December. In the affidavit he has explained: "My position on that +Committee was an ALPA watchdog--there were two other independent +members"; that as the inquiry progressed "it became apparent that the +committee was amassing a large amount of papers"; and that Mr Watson +then announced that he had been directed by the chief executive to get +all the information onto one file and any surplus disposed of to avoid +information getting into the wrong hands. The affidavit indicates that +it was then agreed by the committee itself that this should be done on +the basis that the master file was to be available to the committee +members at any time and it appears that Captain Priest joined in that +decision. It is not for us to decide what would have been the effect or +significance of all this material if it had been placed before the Royal +Commission but since the conspiracy to deceive theory that is developed +in the Royal Commission Report apparently stems from the instruction +given by Mr Davis clearly the officers so gravely affected were entitled +to be warned in advance and so be given the opportunity to have such +information fairly and properly considered. + + +Search at Mt. Erebus + +The issue of documentary evidence is given extended attention in a +section of the Report headed, "Post-accident conduct of Air New Zealand" +which is exclusively concerned with suggestions of possible items that +might have been withheld from the Inquiry. The discussion is introduced +at paragraph 342 by a statement that "This instruction by the chief +executive for the collection of all Antarctica documents had some +unfortunate repercussions". The observation is then developed by +reference in particular to the work of Captain Gemmell, the technical +flight manager for Air New Zealand, while assisting Mr Chippindale at +the crash site. + +Captain Gemmell had received instructions in the early hours of the +morning of 29th November 1979 to travel to McMurdo in order to assist Mr +Chippindale's investigation into the cause of the accident at the scene. +However, by reason of weather conditions it was not possible for him to +be taken by helicopter to the ice slope until 3 p.m. on 2nd December. +Then, clad in protective clothing and roped to mountaineers, he assisted +in a search for the in-flight recording equipment (consisting of the +cockpit voice recorder and the "black box") and the recovery of any +other equipment or documents which might indicate how the accident had +happened. + +Three days earlier, at about 8.30 a.m. on the very morning after the +accident, three mountaineer staff members at Scott Base had managed to +get there in order to search for survivors. And Mr Woodford, who was one +of them, has described the scene in a letter received by the Royal +Commissioner during the public hearings. The letter, which is amplified +in a affidavit put before this Court, is set out later in this judgment. +Mr Woodford explained that when he got to the scene he found a black +flight bag with Captain Collins' name printed on it. It was lying open +on the snow and it was empty. Already material in the form of books and +papers that had not been destroyed when the aircraft disintegrated on +impact had been blown by winds over the ice-slope or into crevasses or +covered by drifting snow. He pointed out that although the cockpit voice +recorder had been located quite quickly when he was back at the crash +site with the party from New Zealand on 2nd December the "black box" +could not be found until later that evening after it had been decided to +begin digging systematically for it. It was found buried under snow at a +depth, he said, of 20 to 30 cms. + +But although the bag was empty it was suggested at the hearing that +while at McMurdo Captain Gemmell might have "collected a quantity of +documents from the crash site and brought them back to Auckland"; that +only three of the flight documents carried on the aircraft had been +produced to the Royal Commission; that it was "curious" to find that +each favoured the case "which the airline was now attempting to +advance"; and all this against counsel's theory that before Captain +Gemmell had left Auckland on 29th November he was aware of possible +problems associated with the amendment to the destination point +co-ordinates. Captain Gemmell flatly denied having that knowledge while +in the Antarctic; and he rejected totally any suggestion that he had +recovered anything from the site which had not been passed across in +terms of Mr Chippindale's instructions. In that regard he answered two +propositions put to him by the Commissioner (at page 1834) in the +following way: + + "Well the suggestion may be made to me in due course that because + of the discovery that Capt Collins did not know of the alteration + in the nav track consequently someone in the co. would have been + instructed to locate whatever documents there were on the crash + site and elsewhere that might throw light on that question. You say + that no such instruction was given to you.... Certainly not. + + But it would have been a reasonable instruction would it not.... No + it would not have." + + +Intimidation of a Witness + +At this point it is necessary to mention a different suggestion which +was also rejected by Captain Gemmell. It was put to him during +cross-examination that he had carried back from McMurdo a blue plastic +envelope containing personal property recovered from the accident site. +In evidence given later by First Officer Rhodes the envelope was +supposed to have been entrusted to Captain Gemmell by Mr Chippindale for +delivery in New Zealand since Captain Gemmell was about to depart from +the base several days before the others. First Officer Rhodes had +himself been in Antarctica as a member of Mr Chippindale's investigation +team, representing there the Airline Pilots Association. He appeared as +a witness before the Royal Commission on two occasions. During his first +appearance he was called by the Association. He did not refer then to a +blue envelope; but because it was thought that the material may have +been mentioned by him to the Association's counsel he was recalled to +give evidence, this time by counsel for the airline. + +Before turning to the evidence given by First Officer Rhodes during his +second appearance it is worthwhile making a preliminary comment. No +complaint has ever been made by Mr Chippindale about a missing blue +envelope or papers within it. If Captain Gemmell had been entrusted with +such a mission which he had failed to discharge Mr Chippindale would +seem to be the first person who would want to know why. He himself gave +evidence before the Royal Commission for a period of ten days and during +all that time he was never asked about this matter. Nor was he recalled +to deal with it after it had been raised with Captain Gemmell or after +First Officer Rhodes gave his further evidence. That fact alone might be +thought sufficient to dispose of the matter. And in the end the +Commissioner himself decided that neither this nor other evidence could +justify a finding against Captain Gemmell that he "recovered documents +from Antarctica which were relevant to the fatal flight, and which he +did not account for to the proper authorities". + +It is necessary to describe all this because the second appearance of +First Officer Rhodes resulted in a finding in paragraph 348 of the Royal +Commission Report which reflects seriously upon the conduct of another +executive officer of the airline, Captain Eden. The paragraph is another +of those challenged in the present proceedings. + +It seems that First Officer Rhodes agreed to give evidence on the second +occasion in order to remove any false impression that he himself doubted +the integrity of Captain Gemmell. The following extract from the +transcript explains the position (a condensed version appears in +paragraph 347 of the Report): + + "You've already given evidence and stated your qualification. I + think you have offered to give some supplementary evidence relating + to activity at the Erebus crash site ... Our discussion with Capt. + Eden last Friday indicated this would be appreciated. + + I think just as Capt. Gemmell was there representing the co. you + were there as a rep. of ALPA.... Thats correct. + + May we take it that you worked in conjunction with Capt. Gemmell + and other members of the team involved.... Correct. + + And in so doing you were present at the crash site with Capt. + Gemmell.... No we had different tasks as I was in the area with + Capt. Gemmell at some stages. + + So far as your observations are concerned what would you have to + say regarding Capt. Gemmell's conduct and behaviour in the course + of his duties there.... I have no reason to doubt Capt. Gemmell in + any way shape or form. + + Have you ever suggested otherwise to anybody.... I have not." + +Then he was cross-examined by counsel for the Association whose witness +he had been earlier. He was asked about Captain Gemmell's work at the +actual scene of the disaster and his explanation about that matter is +reflected in the following question and answer: + + "Did you see Capt. Gemmell at any time in the cockpit area or + thereabouts working on his own.... I qualified that before. Working + on your own is a relative term. At all stages there would be + somebody adjacent for your own safety and well-being. I did not at + any stage see Ian Gemmell Capt. Gemmell or Ian Wood or David Graham + in total isolation in any part of the wreckage." + +Then there is mention of material that may have been returned by Captain +Gemmell to New Zealand-- + + "You heard question the other day concerning Capt. Gemmell + returning from McMurdo with an envelope containing property can you + tell us about that.... At the stage that Capt. Gemmell was + returning to N.Z. he was asked by the Chief Inspector of Accidents + if he would return to N.Z. with one or more envelopes I cannot + recall how many containing photos and perhaps other information to + be used in the conduct of the inquiry at a later date but + specifically at that early date the intention was for Capt. Gemmell + to brief the Minister and the Dir. of CAD and senior execs, of Air + N.Z. as to what had transpired at that early date in the + investigation. As Mr Chippindale would be staying in the Ant. and + the remainder of his team would be with him or else in the US. + + What about private property.... The envelopes which Capt. Gemmell + return to N.Z. with may have contained some documentation from the + crash site which was beginning to return in significant quantities + from the various people on the crash site including the police." + +The following portion of the cross-examination then refers to documents +described as "the technical crews flying records, the collection of log +books, licences and other relevant documentation". He said that at first +there was reluctance on the part of Air New Zealand to release this +material "as it was not clear at that stage in many peoples minds what +my duties were". It was not immediately appreciated that he was acting +on Mr Chippindale's behalf. He was then asked-- + + "And Air N.Z. and Capt. Gemmell released to you the material which + you'd previously sought.... Correct". + +Concerning all this evidence the Commissioner expressed the following +conclusions in paragraph 348: + + "Captain Eden is at present the director of flight operations for + the airline. He appeared in the witness box to be a strong-minded + and aggressive official. It seemed clear from this further + production of First Officer Rhodes as a witness that it had been + suggested to him by Captain Eden that he should either make a + direct allegation against Captain Gemmell or else make no + allegation at all, and that since First Officer Rhodes seemed to + have no direct evidence in his possession, he was therefore obliged + to give the answer which Captain Eden had either suggested or + directed. However, First Officer Rhodes was not entirely + intimidated because as will be observed from the evidence just + quoted, he insisted on saying that Captain Gemmell had brought an + envelope containing documents back to Auckland." + +Those statements are in no way related to the assessment of Captain +Eden's evidence or as Captain Eden as a witness. They are observations +that Captain Eden had attempted to influence or direct the evidence to +be given by First Officer Rhodes by a process of intimidation. Counsel +for First Officer Rhodes' own association had made no suggestion to that +effect. Nor is there any hint by First Officer Rhodes himself that he +was present as anything but a voluntary witness. The answer he gave to +the opening question would not seem to support suspicions of +intimidation. And that answer is itself followed by quite a generous +tribute to Captain Gemmell. But the reputation of Captain Eden and the +support given Captain Gemmell is dismissed by a finding of intimidation. +It should be said as well that although Captain Eden himself appeared to +give evidence three days later not a word was said to him by anybody to +suggest that earlier he had been guilty of attempting to intimidate a +witness. + + +Specific documents + +To the extent that the Royal Commission Report has pointed to any +particular classes of documentary material that did not reach the +Inquiry the list is not a long one. It comprises-- + + 1. Unidentified papers within the blue envelope--No complaint about + this was ever made by Mr Chippindale as we have mentioned. + + 2. Papers given to First Officer Cassin as briefing material--It + has been explained that if any complaint could be made about this + matter it would affect Captain Crosbie, the unnamed "employee of + the airline" referred to in paragraph 52. It was he who went to the + Cassin home for compassionate reasons as the spokesman for the + Airline Pilots Association. He denies ever receiving the material. + Even if he had, the Report has not challenged the conduct of any of + the line pilots. This matter would seem to be irrelevant. + + 3. Documents or papers that may have been shredded by Mr Oldfield + following the decision of the in-house committee which met during + the week beginning 3rd December 1979--This matter requires no + further discussion. + + 4. Pages within the cover of a ring-binder notebook of Captain + Collins--This matter too was handled by Captain Crosbie. However, + it requires some specific mention because in paragraph 352 it has + been associated with Captain Gemmell and as all counsel now + acknowledge this has been done in error. The paragraph is one of + the specific paragraphs challenged by these proceedings. + + 5. Briefing or other flight documents (including a New Zealand + Atlas) taken onto the aircraft within Captain Collins' flight bag; + and similar papers within a flight bag owned by First Officer + Cassin--This matter also requires discussion. + + +The Ring-binder Notebook + +The Commissioner found that Captain Collins carried with him on the +fatal flight a small pocket diary usually kept in his breast pocket; and +a ring-binder losse-leaf notebook carried in his flight bag. It is said +in paragraph 351 "that the chief inspector had obtained possession of +the small pocket diary, but it did not contain any particulars relating +to Antarctica flights". At the hearing Mrs Collins described the diary +and said that on 12th December 1979 Captain Crosbie had returned it to +her together with certain other items of personal property belonging to +her husband. She explained that there were no pages in the ring-binder +when she received it "other than some loose papers which are still +folded inside the front cover". The question arose as to what had +happened, to the balance of the contents of the notebook. Captain +Crosbie himself was called by counsel for the Airline Pilots Association +to give evidence before the Commission. He explained that his +involvement in all post-accident matters was as a welfare officer for +the association; and in that capacity he had been given by the police +personal property for distribution to next-of-kin. When asked about +pages which normally would have been within the ring-binder covers he +said that most of the recovered items had been damaged considerably by +water and kerosene, and in answer to the Commissioner, who had asked +"How could the ring-binder cover itself be intact and yet the pad of +writing paper disappear?", he said, "I suggest the cover survived the +water and kerosene but the paper contents didn't". He added in answer to +questions by counsel-- + + "If papers were removed from the ring binder who would have done + that.... I would have myself I presume. + + Do you recall doing that.... No not specifically. I was involved in + destroying a lot of papers that were damaged and would have caused + distress some because of that and some because it was the obvious + thing to do." + +As a further sample of the kind of material that might have been +provided by the criticized officers had they been given the opportunity +we were referred to a signed statement by Captain Crosbie forwarded to +the police (who by then were investigating the allegations of +conspiracy) on 5th May 1981. In the statement he has said after he had +given evidence before the Inquiry he recalled that because of the poor +condition of the notebook and severely damaged paper inside it and +"rather than present this to Mrs Collins" he had disposed of the pages +himself. Then having cleaned the cover he dried it in the sun and +returned it to Mrs Collins. It would seem to be an understandable +reaction although once again the effect this kind of material might have +had if it had been put forward is not for us to assess. In any event, +concerning this matter the Commissioner said in paragraph 352-- + + "As to the ring-binder notebook, it had been returned to Mrs + Collins by an employee of the airline, but all the pages of the + notebook were missing. _Captain Gemmell_ was asked about this in + evidence. He suggested that the pages might have been removed + because they had been damaged by kerosene. However, the ring-binder + notebook itself, which was produced at the hearing, was entirely + undamaged." (Emphasis added.) + +It is clear that the Commissioner has wrongly attributed the explanation +given by Captain Crosbie concerning the removal of missing pages to +Captain Gemmell. The latter was never questioned at all about possible +reasons for the missing pages. The fifth and sixth respondents have +formally acknowledged that the reference to Captain Gemmell in that +paragraph is wrong. + + +Contents of Flight Bags + +It has been explained that the Commissioner was satisfied that Captain +Collins had used the New Zealand Atlas to plot the last leg of the +flight path from Cape Hallett to McMurdo and may have used a chart of +his own for the same purpose. In addition there were his briefing +documents and those received by First Officer Cassin. Those received by +the latter have been discussed. The Commissioner held that they had not +been taken aboard the aircraft. But he was concerned with whatever else +may have been carried onto the DC10 by First Officer Cassin in his +flight bag; and about the contents of Captain Collin's flight bag which +he believed would include the atlas and briefing documents. In fact the +only evidence concerning the possible survival of the first officer's +flight bag, let alone its contents, was a name-tag which finally reached +Mrs Cassin through Captain Crosbie, the welfare representative. Since +there is no description of the contents and it has been held that the +briefing material was left behind anyway, the fate of the bag itself +would seem to be immaterial. + +On the other hand it is known that after the accident Captain Collins' +bag was seen on Mt. Erebus. The matter has been mentioned. The bag did +not reach his widow as it would normally have done if it had been +received and returned to New Zealand and this fact is the focus of +attention in the Royal Commission report. + +In order to examine the matter it will be remembered that the +mountaineer, Mr Woodford, arrived by helicopter searching for survivors +on the morning of 29th November. In the letter he sent to the Royal +Commission he said he found the bag then and: "My recollection is that +it was empty when I first inspected it. It certainly contained no +diaries or briefing material." Apparently the bag had been thrown from +the disintegrating aircraft at the time of impact and its contents lost +in the snow or scattered by winds before the arrival of the +mountaineers. But whatever the reason for their absence from the bag it +is the contents that matter in this case--not the flight bag itself. And +according to the letter they had already disappeared from the bag three +days before the New Zealand party arrived there. So like the bag of +First Officer Cassin it might be thought that this item too was +immaterial. However, it is discussed by the Commissioner in the +following way. + +First there is listed a series of documents "which clearly had been +carried in the flight bag of Captain Collins" and which had not been +recovered. The items comprise the New Zealand Atlas and a chart; the +briefing documents; and the ring-binder notebook. Those three items +have been mentioned. And finally a topographical map issued on the +morning of the flight. The suggested significance of these various +documents is explained by reference to the view of counsel for the +Airline Pilots Association that they "would have tended to support the +proposition that Captain Collins had relied upon the incorrect +co-ordinates" (paragraph 344). + +There follows reference to the blue envelope and the matter of Captain +Eden after which paragraph 349 speaks of the flight bag: + + "Then, as the Inquiry proceeded, there were other queries raised. + It seemed that Captain Collins' flight bag had been discovered on + the crash site. It was a bag in which he was known to have carried + all his flight documents. It was said to have been empty when + found, a fact which was incidentally confirmed by a mountaineer who + had seen the flight bag before Captain Gemmell arrived at the crash + site. The flight bag was rectangular, and constructed of either + hard plastic or leather, and had the name of Captain Collins + stamped on it in gold letters. It was evidently undamaged." + +There is mention as well of First Officer Cassin's flight bag and the +ring-binder notebook (both of which matters have now been discussed) and +then it is said in paragraph 353 that after the taking of evidence the +Commissioner asked counsel assisting the Commission to make inquiries +about the two flight bags "which had been located on the site but which +had not been returned to Mrs Collins or Mrs Cassin". + +It appears from the following paragraph 354 that among others +interviewed by counsel or asked for comment upon this matter were Mr +Chippindale (the chief inspector of air accidents), and the senior +sergeant of police who had been in charge of the property collected from +the crash site when it was brought to McMurdo. It is said in that +paragraph that the police officer-- + + "... recollected either one or two flight bags among other property + awaiting packing for return to New Zealand. He said that personnel + from Air New Zealand had access to the store, as well as the chief + inspector, and the senior sergeant said that he thought that he had + given the flight bags to the chief inspector and that the chief + inspector was the sole person to whom he had released any property. + The chief inspector was then interviewed on 11 December 1980 by + telephone, being at that time in Australia, but he said that no + flight bags were ever handed to him." + +Thus the inquiries that were made in this fashion were inconclusive. +However, the Commissioner was satisfied that-- + + "The two flight bags were lodged in the Police store at McMurdo and + would have been returned in due course to Mrs Collins and Mrs + Cassin by the Police. But they were taken away from the store by + someone and have not since been seen." (Paragraph 359 (1)) + +Then in the same context he said in sub-paragraph 359 (4): + + "Captain Gemmell had brought back some quantity of documents with + him from Antarctica, and certain documents had been recovered from + him by First Officer Rhodes on behalf of the chief inspector." + +And then-- + + "It therefore appears that there were sundry articles and perhaps + documents which had been in possession of the aircrew which came + back to New Zealand otherwise than in the custody of the Police or + the chief inspector" (paragraph 360). + +In evidence Captain Gemmell had denied knowledge of the change that had +been made to the McMurdo waypoint but the Commissioner did not accept +that answer; and he is linked with the matters mentioned in paragraph +360 on the basis that he had known "about the changed co-ordinates +before he went to Antarctica" and that because he-- + + "... plainly kept this significant fact to himself, (he) was to be + the arbiter of which documents were relevant. The opportunity was + plainly open for Captain Gemmell to comply with the chief + executive's instructions to collect all documents relevant to this + flight, wherever they might be found, and to hand them over to the + airline management." + +The next sentence of that paragraph contains the finding already +mentioned: + + "However, there is not sufficient evidence to justify any finding + on my part that Captain Gemmell recovered documents from Antarctica + which were relevant to the fatal flight, and which he did not + account for to the proper authorities." + +At the conclusion of this section of the Report the Commissioner said +that he could "quite understand the difficulty in recovering loose +documents from this desolate mountain side, although the heavy atlas", +he said, "was not in this category". But he stated that an opportunity +had been "created for people in the airline to get rid of documents +which might seem to implicate airline officials as being responsible for +the disaster". And he spoke of all these matters in terms of +"justifiable suspicion". + +The condition of Captain Collins' flight bag when it was first seen by +Mr Woodford had already been mentioned. His letter dated 5th December +1980 was written immediately after some cross-examination of Captain +Gemmell had been given widespread publicity and on Monday 8th December +1980 Captain Gemmell was still giving evidence. By then he was under +cross-examination by counsel assisting the Commission and the latter +proceeded to read into the record the text of the letter (Exhibit 266) +which reads: + + "Dear Sir, + + At the time of the DC10 crash I was employed in Antarctica by + D.S.I.R. as a survival instructor/mountaineer assistant. I was one + of the three mountaineers who made the initial inspection of the + site for survivors. I was also one of the three mountaineers who + accompanied Messrs David Graham (Investigator) Ian Gemmell & Ian + Wood (Air NZ) during their initial inspection of the aircraft. + During the first six days after the accident I was at the crash + site at all times when the site was occupied. + + In regard to evidence reported in the Christchurch Press today, 5 + Dec 1980, I can state unequivocally that: + + (1) Captain Gemmell did not spend any time inspecting the aircraft + without other people being present. + + (2) Captain Collins flight bag was found by me the day after the + crash, this being three days before any Air N.Z. personnel or crash + investigators reached the site. My recollection is that it was + empty when I first inspected it. It certainly contained no diaries + or briefing material. + + (3) Captain Gemmell did not remove any items from the persons of + deceased lying in the area...." + +Counsel proceeded to read from the letter which goes on to refer to +instructions concerning the crevassed area of the ice-slope. + +No challenge was made to the views expressed by Mr Woodford nor was he +called to give evidence. And no evidence to any contrary effect was +given by anybody. Yet apart from the passing reference to the matter in +paragraph 349 of the Report the point of view Mr Woodford expressed +seems to have been given no attention. The extent of the evidence which +could have been given by Mr Woodford if he had been called as a witness +is indicated by his affidavit now put before this Court. The importance +of the letter seems obvious. The bag being empty when it was seen only +18 hours after the aircraft had crashed it is difficult to understand +how it could have any significance when found in that same condition +three days later. Yet in this part of the Report it is left as a central +issue. Mr Woodford's own concern about all this is indicated in the +lengthy affidavit which he prepared for the purpose of exonerating +Captain Gemmell. It was sworn by him on 21st May 1981 not very long +after the Report of the Royal Commission had been made public. + +A final comment should be made about Captain Gemmell's position. It +concerns a submission made on his behalf to this Court that "In view of +the 'not proven' verdict against Captain Gemmell and the various +critical statements made about him it is a remarkable thing that he was +given no opportunity for further comment when the Commissioner decided +to make further enquiries of the police sergeant and Mr Chippindale at +the conclusion of the hearing of evidence". If Captain Gemmell was to be +left enveloped in "justifiable suspicion" this is something that +certainly should have been done. Indeed if the post-hearing +investigation had been sufficiently developed the Commissioner might +have been satisfied (as now appears from the affidavit of Mr Stanton) +that the police officer who gave information to counsel assisting the +Commission about one or two flight bags was not even in Antarctica while +Captain Gemmell was there. The affidavit indicates that the police +officer arrived to take charge of the police store only on the evening +of 6th December and by then Captain Gemmell had been back in New Zealand +for two days. + + +Airline's Attitude at Inquiry + +This matter requires brief comment. It involves the issue as to whether +Air New Zealand adopted an uncompromising approach to the matters under +consideration by the Royal Commission so that the proceedings were +unnecessarily prolonged. Concerning the matter the Commissioner said +this in the Appendix to the Report dealing with the awards of costs, +which must be mentioned later: + + "In an inquiry of this kind, an airline can either place all its + cards on the table at the outset, or it can adopt an adversary + stance. In the present case, the latter course was decided upon. + The management of the airline instructed its counsel to deny every + allegation of fault, and to counter-attack by ascribing total + culpability to the air crew, against whom there were alleged no + less than 13 separate varieties of pilot error. All those + allegations, in my opinion, were without foundation". + +The general complaint that Air New Zealand had adopted an adversary +approach and withheld evidence until a late stage needs to be assessed +against the control exercised by counsel assisting the Commission +concerning the order in which witnesses were to be called and the way in +which the Inquiry progressed. Before the initial hearing to settle +questions of procedure he supplied the airline with a "Memorandum as to +areas to be covered by Air New Zealand evidence". It is dated 13th June +1980 and specifies 21 topics. Then on 19th June he circulated a +"Memorandum to counsel engaged in the DC10 Inquiry" advising that the +parties were to prepare initial briefs which he would then put in +sequence. And at the preliminary hearing on 23rd June it was arranged +that a basically chronological order should be followed after Mr +Chippindale had been called as the first witness. On the following day +counsel for the Civil Aviation Division took issue with the requirement +that its brief of evidence should be handed in before Mr Chippindale had +appeared and the Commissioner ruled that briefs of evidence would be +withheld until shortly before the witness was to be called. Mr +Chippindale's evidence occupied the first fortnight of the inquiry and +thereafter the actual order in which the witnesses were to be called was +arranged by counsel assisting the Commission who stated in advance the +days and times at which those concerned should come forward. Thus the +first Air New Zealand witness to give evidence was the chief engineer +who appeared before the Inquiry on 22nd July. + +It was said that the airline had not been invited through its counsel to +make its position known by means of an opening address at the +commencement of the public hearing. No doubt the Commissioner would have +permitted such an address but the occasion for it did not seem to arise +and he himself did not require the matter to be dealt with on this basis +by any of the parties. And in the result witnesses were called from +among the personnel of the airline in order to deal with various +questions in an ordered fashion. Thus it was not until all evidence had +been called that counsel for the various parties made submissions to the +Commissioner. + +At the conclusion of the evidence counsel for the airline invited +counsel assisting the Commission to inform him what were the main issues +upon which closing submissions were requested. However the extended +written answer to that enquiry includes no suggestion whatever that the +conduct of airline witnesses or the post-accident conduct of the +employees was in issue. And the Commissioner himself said this in +paragraph 375 about the airline's submissions: + + "... counsel for the airline adopted, in the course of their + detailed and exemplary final submissions, the very proper course of + not attributing blame to any specific quarter but leaving it to me + to assemble such contributing causes as I thought the evidence had + revealed." + +In that regard some of the statements which were made on behalf of the +airline are not unimportant. At one point counsel said-- + + "By now it should be apparent to the smallest mind that the Company + has not espoused, and does not espouse, a proposition that the + accident can be contributed to a sole cause, let alone a sole cause + of pilot error. If from the evidence adduced, there emerges or is + implicit a criticism of the Company's flight crew, that criticism + has been moderate, informed and responsible." + +And in the same context-- + + "I would, with respect, also remind Your Honour that in the very + nature of these proceedings there has not been an opportunity for a + formal opening where one might have expected just that. But I would + further suggest, Sir, that the evidence advanced by the Company, + which has been in an attempt to bring every witness who can + contribute something towards the causal factors and everything else + has been done, not selectively, and there have been witnesses who + have plainly, unequivocally, acknowledged their fault, their error. + There has not in any way been a parade of witnesses all seeking to + criticize the flight crew and thus, as it were, exonerate + themselves. There has been an endeavour, without selection, to + reveal all the evidence to reveal all the documents ...". + +This statement by senior counsel for the airline as to the manner in +which he had attempted to handle his responsibilities should be enough +to answer the complaint in the Appendix that "The management of the +airline _instructed its counsel_ to deny every allegation of fault, and +to counter-attack by ascribing total culpability to the air crew". The +tribute the Commissioner paid counsel in paragraph 375 (the same counsel +appeared in this Court for the applicants) is not altogether consistent +with those last remarks. In any event the appendix continues-- + + "Apart from that, there were material elements of information in + the possession of the airline which were originally not disclosed, + omissions for which counsel for the airline were in no way + responsible, and which successively came to light at different + stages of the Inquiry when the hearings had been going on for + weeks, in some cases for months." + +A final comment should be made about the criticisms of the airline +concerning the position it adopted concerning pilot error as a cause of +the accident. + +In the course of his evidence (at p. 272) Mr. Chippindale was asked by +the Commissioner: "Was not the position Capt. Collins must have clearly +have thought he was flying toward McMurdo over McMurdo Sound?" He said, +"It is my belief that this could be the only possible reason for him to +continue". That is an important answer. It means that in this respect +Mr. Chippindale had reached the same conclusion as the Commissioner but +for general reasons of logic whereas the latter was influenced by his +finding that Captain Collins had made use of the New Zealand Atlas or a +chart in order to plot the position of the waypoint and the route to be +taken by the aircraft. + +But although this general conclusion about McMurdo Sound was shared it +is at this point that the two investigations diverged in terms of pilot +responsibility for the accident. The Commissioner was of the opinion +that until the last moment the pilots believed they were flying in clear +air; that they were deceived by a whiteout situation; and that it was +understandable that they flew on at 2000 and then 1500 feet. Mr. +Chippindale was aware of and spoke in his report about the whiteout +phenomenon, but after giving evidence before the Royal Commission for +eight days he still adhered to his conclusion of pilot error for reasons +he expressed (at p. 274) in the following way: + + "I believe that the cause as it stands (in the Chief Inspector's + report) is reasonable. As I attempted to clarify last time the + pilot has descended to 2000 ft and evidently is unable to see + anything ahead. I say 'evidently' because there is a snow slope + leading to a mountain rising to 12 450 feet and that was directly + in front of him. He 'popped down', to use his own words, another + 500 feet and continued to progress towards an ice cliff which is + 300 feet high, the lower 50 per cent of which is solid and bare + rock. And still he didn't perceive anything to persuade him to + divert from his track. To me this indicates it was an area of poor + definition and as such he would not be able to discern what he + could expect to see had he been, as various people suppose, + believing that he was proceeding down the McMurdo Sound. The sea + ice is by no means uniform in texture and during his descent he + would have seen the nature of the sea ice--in fact the photos from + the passengers indicate that it had large breaks in its surface and + was quite easily discerned so therefore I believe at the end of his + descent to 2000 ft he was confronted with a very vague area in + front of him which he may or may not have believed was cloud, and + when descending a further 500 feet the view ahead of him would have + been of equally poor definition. Despite this, he continued to the + point of 26 miles from destination as indicated presumably on the + AINS." + +Mr. Chippindale's opinion has some background relevance in the present +case. It is in no way relevant because it differs from that of the +Commissioner upon the issue of causation. Already we have emphasized and +we do so once again that what was said in the Royal Commission Report +about the cause or causes of the accident must stand entirely unaffected +by these proceedings. But the opinion has some relevance because +although it was wrong, as the Royal Commission Report decided, the +Commissioner certainly did not consider it to be anything other than a +completely conscientious and honest attempt by Mr. Chippindale to +analyse and draw a rational conclusion from all the available facts. He +described Mr. Chippindale as a model witness. In the circumstances it is +difficult to understand why the same point of view Mr. Chippindale +expressed in his evidence could not be genuinely shared by other +educated observers. + +We turn now to the relief sought by these various officers and the +airline itself. + + +The Claim for Relief + +The applicants seek relief in the form of an order that the findings be +set aside or for a declaration that the various findings are invalid or +made in excess of jurisdiction; or were made in circumstances involving +unfairness and breaches of the rules of natural justice. In addition we +are asked to make an order quashing the decision of the Commissioner +that the airline should pay to the Department of Justice the sum of +$150,000 by way of costs. + +Earlier in this judgment we have said that if the challenged findings +were made without jurisdiction or contrary to natural justice then it +would be possible for the Court to take steps by way of declaration to +offer at least some form of redress. And we went on to explain why we +think the Royal Commission was bound by the broad requirements of +natural justice. As an example of what would be required to meet +obligations of fairness we then referred to the need for a reasonable +opportunity of meeting unformulated suspicions of deception and +concealment that had been in the Commissioner's mind. However, before we +turn to the natural justice part of the case it is convenient to +consider the claim of excess jurisdiction, and that by confining our +attention to the terms of reference. + +The submission of counsel for the sixth respondent is that the +statements contained in each of the two paragraphs 348 and 377 are +relevant to and justified by the following items of the terms of +reference: + + (g) Whether the crash of the aircraft or the death of the + passengers and crew was caused or contributed to by any person + (whether or not that person was on board the aircraft) by an act + or omission in respect of any function in relation to the + operation, maintenance, servicing, flying, navigation, manoeuvring, + or air traffic control of the aircraft, being a function which that + person had a duty to perform or which good aviation practice + required that person to perform? + + (j) And other facts or matters arising out of the crash that, in + the interests of public safety, should be known to the authorities + charged with the administration of civil aviation in order that + appropriate measures may be taken for the safety of persons engaged + in aviation or carried as passengers in aircraft. + +In its essentials the argument is that in order to answer the questions +posed by paragraph (g) the Commissioner found it necessary or was +entitled to explain the process by which he reached his final +conclusions; that in doing so he was entitled to comment upon the +quality of the evidence that was given in the course of the Royal +Commission Inquiry; that the assessment of witnesses was a necessary +part of the findings he reached as to the cause of the accident; that +the assessment was not a part of the substantive findings of the +Commission; and "whether having reached his conclusion he expresses +himself vehemently or refrains from pungent comment is entirely a matter +for him". Similar submissions were made in relation to the second cause +of action and natural justice. + +In certain circumstances it is obvious enough that reasons for rejecting +evidence would not merely be relevant but often a necessary part of a +decision. But considerations of that kind are far removed from the +conclusions expressed in paragraph 377. There it is said that the ten +senior members of this airline had been involved in organized deception. +"Palpably false sections of evidence ... a pre-determined plan of +deception ... an attempt to conceal a series of disastrous +administrative blunders ... an orchestrated litany of lies". These are +unlikely phrases to associate with a mere assessment of the credibility +of witnesses. + +In the Courts it is constantly necessary to indicate a preference for +the evidence of one witness or to make a decision to put evidence +completely to one side; sometimes it even seems necessary to describe +evidence in terms of perjury. But in the Courts Judges always attempt to +be most circumspect in handling issues of this kind, particularly if +misconduct seems apparent which is not immediately associated with the +central issues in the case. There can be no less reason for +circumspection in the case of a Royal Commission at least where the +terms of reference do not directly give rise to inquiries into criminal +dealing. In _Re The Royal Commission on Licensing_ (1945) N.Z.L.R. 665 +Sir Michael Myers C.J. dealt with the point in the following way (at p. +680): + + "A Commission of Inquiry under the statute and a Royal Commission + under the Letters Patent are alike in this respect--each of them is + an inquiry, not an inquisition. By that I mean that the Commission + is not a roving Commission of a general character authorizing + investigation into any matter that the members of the Commission + may think fit to inquire into and that the ambit of the inquiry is + limited by the terms of the instrument of appointment of the + Commission." + +It must always be sensible for any Commission of Inquiry or other +tribunal to keep those words in mind. + +We are satisfied that the findings contained in each of paragraphs 348 +and 377 are collateral assessments of conduct made outside of and were +not needed to answer any part of the terms of reference. The +Commissioner had no authority or jurisdiction to deal with the affected +officers in such a fashion and the findings themselves are a regrettable +addition to the Report. + + +Fairness + +The concept of natural justice does not rest upon carefully defined +rules or standards that must always be applied in the same fixed way. +Nor is it possible to find answers to issues which really depend on +fairness and commonsense by legalistic or theoretical approaches. What +is needed is a broad and balanced assessment of what has happened and +been done in the general environment of the case under consideration. + +In the present case the expressed complaints turn upon the absence of +warning that the affected officers were at risk and that the critical +decisions taken against them were unsupported by any evidence of +probative value. But in estimating the significance of these complaints +it would be unreal to ignore the fact that the findings are not only +very serious in themselves: they are made more potent by the way they +have been so closely associated with one another. Furthermore, each of +them is advanced in this Report as an overt manifestation of one general +conspiracy. That last matter has special importance because for the +reasons just explained we have held the conspiracy findings to be +unjustified. They should never have been made. In saying that we do not +overlook the fact that this Court is making an assessment in isolation +from the viva voce evidence given at open hearings of the Inquiry. But +the present issue is simply whether the affected officers were or were +not deprived of the advantage of answering unformulated charges. In such +a situation the advantage of actually hearing and seeing a witness is +hardly a relevant consideration. + +In the course of the survey that has been made up to this point we have +commented upon the nature and significance of the various challenged +paragraphs in the Report. It is unnecessary to traverse the same subject +matter once again and we simply remark that the applicants have +justified their complaints concerning the way in which the findings have +been reached. + + +Award of Costs + +We have explained earlier in this judgment that an order for costs was +made against Air New Zealand in favour of parties other than the Civil +Aviation Division. As a matter of company policy the airline decided +that it would comply with that order although in doing so it has made no +admission that the order was validly made. In addition, however, the +airline was ordered to pay the Department of Justice the large sum of +$150,000 by way of contribution to the public cost of the inquiry. It is +that last order which is challenged in the present proceedings on two +grounds. The first is that the award involved a wrong exercise of the +discretion provided by s. 11 of the Commissions of Inquiry Act 1908. The +second ground is that in any event no award greater than $600 could be +made by reason of Rule III of rules made in terms of the statute and +gazetted on 11th February 1904. + +The reasons given by the Commissioner for making the respective orders +against Air New Zealand are set out in a passage from the appendix to +the Report which is mentioned in this judgment under the heading +"Airline's attitude at Inquiry". And on behalf of the Attorney-General +it is said that the discretion was properly exercised for reasons +expressed to be related to "conduct at the hearing (which materially and +unnecessarily extended the duration of the hearing)[2]". However, the +reasons given[3] by the Commissioner do not stop there. The appendix goes +on-- + + "The management of the airline instructed its counsel to deny every + allegation of fault, and to counter-attack by ascribing total + culpability to the air crew ... Apart from that, there were + material elements of information in the possession of the airline + which were originally not disclosed ... it was not a question of + the airline putting all its cards on the table. The cards were + produced reluctantly, and at long intervals, and I have little + doubt that there are one or two which still lie hidden in the + pack." + +When discussing the legal implications of the order for costs under that +particular heading earlier in the judgment we stated that on purely +verbal grounds it might be possible to draw refined distinctions between +parts of the Report which are highly critical of the position taken up +by the airline at the inquiry on the one hand and the effect this had on +the duration of the hearing on the other. But there can be no doubt that +in the context of this Report and the conclusions reached by the +Commissioner concerning conspiracy and otherwise any ordinary reader +would feel satisfied that the imposition of an order for costs in the +sum of $150,000 was nothing less than the exaction of a penalty. In +those circumstances and by reason of the conclusions we have reached +concerning the invalidity of the challenged paragraphs we are satisfied +that the order must be set aside. + +Concerning the second ground advanced on behalf of the airline it is +sufficient to say that even if it had been appropriate to make an award +of costs in this case the amount was limited to the modest sum of $600. + +At the beginning of this judgment we said that we had felt it necessary +to go at some length into the facts. This we have done both in order to +analyse the important questions raised in the areas of natural justice +and excess of jurisdiction and also because we have thought it to be in +the public interest to attempt to explain the factual issues that are +involved in the proceedings. We now express our conclusion that for the +reasons already given we are satisfied that the complaints of the +applicants are justified. Against that finding we return to the +beginning of this judgment where we said that we felt sure that +reputation can be vindicated and the interests of justice met by a +formal decision of this Court that will have the effect of quashing the +order of the Commissioner requiring Air New Zealand to pay costs in the +large sum of $150,000. We would make an order accordingly. + +The Court being unanimous as to the result there will be an order +quashing the order of the Royal Commissioner that Air New Zealand pay to +the Department of Justice the sum of $150,000 by way of contribution to +the public cost of the Inquiry. There have been no submissions +concerning the costs of the present proceedings and that matter is +reserved. + + +_Solicitors_ + +Messrs. Russell, McVeagh, McKenzie, Bartleet & Co. of Auckland for +appellants. + +Crown Law Office, Wellington, for first, fourth and sixth respondents. + +Messrs. Keegan, Alexander, Tedcastle & Friedlander of Auckland for fifth +respondent. + +P.D. HASSELBERG, GOVERNMENT PRINTER, WELLINGTON, NEW ZEALAND--1982 + +76534J--82PT + + +TRANSCRIBER'S NOTES + +There were no footnotes in this text. The following correction have +been made. + +[Transcriber note 1: The original has here a double "the" which seems +superfluous in the context.] + +[Transcriber note 2: In the original, the closing bracket is missing.] + +[Transcriber note 3: In the original, the word "give" instead of +"given" is used.] + + + +***END OF THE PROJECT GUTENBERG EBOOK JUDGMENTS OF THE COURT OF APPEAL OF +NEW ZEALAND ON PROCEEDINGS TO REVIEW ASPECTS OF THE REPORT OF THE ROYAL +COMMISSION OF INQUIRY INTO THE MOUNT EREBUS AIRCRAFT DISASTER*** + + +******* This file should be named 16130-8.txt or 16130-8.zip ******* + + +This and all associated files of various formats will be found in: +https://www.gutenberg.org/dirs/1/6/1/3/16130 + + + +Updated editions will replace the previous one--the old editions +will be renamed. + +Creating the works from public domain print editions means that no +one owns a United States copyright in these works, so the Foundation +(and you!) can copy and distribute it in the United States without +permission and without paying copyright royalties. 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