Benge v BlueScope Steel (Ais) Pty Ltd

In the Federal Court of Australia, Judge Dowdy considered an interlocutory application by the respondent, BlueScope Steel (Ais) Pty Ltd, to join the Australian Workers’ Union (AWU) as a cross-respondent. The dispute arose from proceedings initiated by the applicants, employees of BlueScope Steel, concerning alleged breaches of their employment contracts. BlueScope Steel sought to cross-claim against the AWU, alleging that the union had induced breaches of these contracts and was accessorily liable under section 550 of the *Fair Work Act 2009* (Cth) for consequent contraventions by BlueScope Steel under section 323 of the Act. BlueScope Steel also sought equitable contribution from the AWU.

The central legal issues before the Court were whether the proposed statement of cross-claim sufficiently pleaded material facts to support the claims of inducement of breach of contract, accessory liability under section 550, and equitable contribution. The Court was required to determine if the proposed pleadings were "embarrassing" in the technical legal sense, meaning they were so vague or lacking in particularity that they would cause prejudice or embarrassment to the AWU.

Judge Dowdy found that the proposed statement of cross-claim failed to plead the necessary material facts to establish the alleged inducement of breach of contract and accessory liability. The Court determined that the pleadings were embarrassing because they lacked the specificity required to inform the AWU of the case it had to meet. Consequently, the interlocutory application to join the AWU as a cross-respondent and to file the cross-claim was dismissed, and leave to replead was refused.