Case note: Medibank privacy investigation update

Medibank Private has failed in its Federal Court application for an injunction to prevent the Australian Information Commissioner’s investigation into a data breach involving the systems of Medibank Private Limited which arose no later than 25 October 2022

There is also a representative complaint lodged with the Office of the AIC (OAIC) against Medibank.

Medibank said that there is a risk of inconsistent factual and legal findings being made in respect of the same or overlapping questions by the OAIC and that any determination made or enforced by the AIC poses a real risk of interference with the administration of justice having regard to the issues raised in a separate class action against it.

However Justice Beach concluded:

The suggestion that the AIC’s future processes will constitute a contempt by having a real and definite tendency to prejudice or embarrass the Federal Court representative proceeding is speculative.
Now Medibank says that the conditions that give rise to the risk of inconsistent findings and conclusions have fully crystallised. It says that there is no further event on which the parties are waiting which will determine whether the risk of inconsistent findings and conclusions will arise. And it is said that it is not in the interests of group members or the public interest more generally insofar as the resources of the AIC and the Federal Court are concerned for the injunction application to be deferred until a point in time where substantial resources have been expended. But I disagree.
Even if there was some substance to Medibank’s points, in my view it would be premature to grant an injunction. The relevant risk is not so immediate such as to justify an injunction now which for all practical purposes is likely to carry with it permanent consequences concerning the statutory processes under the Act.

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David Jacobson

Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.

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