Buchmueller v Allied Express Transport Pty Ltd

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FEDERAL COURT OF AUSTRALIA

Buchmueller v Allied Express Transport Pty Ltd [1999] FCA 319

INDUSTRIAL LAW – review of employment contract under s 127A of the Workplace Relations Act 1966 (Cth) – whether variation of contract under s 127B of the Act – whether unfair -  use of award rates in comparison.

Workplace Relations Act 1966 (Cth)
Industrial Relations Act 1990 (Qld)

GARY FREDERICK BUCHMUELLER v ALLIED EXPRESS TRANSPORT PTY LIMITED (ACN 001 787 962)
QI 1021 OF 1997

DOWSETT J
26 MARCH 1999
BRISBANE


IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

QI 1021  OF 1997

BETWEEN:

GARY FREDERICK BUCHMUELLER
Applicant

AND:

ALLIED EXPRESS TRANSPORT PTY LIMITED (ACN 001 787 962)
Respondent

JUDGE:

DOWSETT J

DATE OF ORDER:

26 MARCH 1999

WHERE MADE:

BRISBANE

THE COURT ORDERS THAT:

1.The contract regulating the relationship of contract carrier and principal contractor between the applicant and the respondent be varied by inserting in cl 14 a further paragraph numbered “3” as follows:-

“Upon termination hereof, the principal contractor will pay to the contract carrier the sum of $13,080, and upon such payment all rights and liabilities of the parties hereto arising pursuant to this contract or pursuant to another contract made this day between the same parties will be released and discharged.”

2.        There is no order as to costs.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

QI 1021  OF 1997

BETWEEN:

GARY FREDERICK BUCHMUELLER
Applicant

AND:

ALLIED EXPRESS TRANSPORT PTY LIMITED (ACN 001 787 962)
Respondent

JUDGE:

DOWSETT J

DATE:

26 MARCH 1999

PLACE:

BRISBANE

REASONS FOR JUDGMENT

  1. This is an application for relief pursuant to s 127A of the Workplace Relations Act 1966 (Cth).

  2. The applicant is aged forty, having been born on 25 August 1958.  He is married with two sons aged thirteen and nine.  He was previously employed in the building industry but because of an injury, was unable to continue in that calling.  He owned a flat top truck with a carrying capacity of one-and-a-half tonnes, fitted with roof racks.  In the middle of 1996, as the result of advice received from the Workers’ Compensation Board, he decided to seek employment in the courier industry. The respondent was engaged in that industry.  It operated using independent contractors who brought their own vehicles to the enterprise.  On or about 24 July 1996 the applicant became such a contractor.  He entered into two contracts, one setting out the conditions of his appointment, the other being, in effect, a “restraint of trade” agreement.

  3. The circumstances in which the parties entered into the contracts received considerable attention in the course of the trial.  The applicant said that he was initially interviewed by Mr Gary Williamson.  At a later stage, Mr Bill East joined them.  They told him that they needed a truck such as his.  He claims in his affidavit that he was shown a white board on which were written…

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Details
Case
[1999] FCA 319
Decision Date

CaseChat Overview and Summary

In the Federal Circuit and Family Court of Australia, the case of Buchmueller v Allied Express Transport Pty Ltd was heard, where the applicant, Buchmueller, sought to vary a contract between the applicant and the respondent, Allied Express Transport Pty Ltd, to ensure he received compensation upon termination of the agreement. The contract between the parties was governed by a contract carrier agreement which stipulated that the applicant would perform certain services for the respondent under a separate principal contractor agreement. The applicant sought to insert a new clause into the contract carrier agreement that would provide for a payment of $13,080 to him upon termination of the contract, and that upon such payment, all rights and liabilities of the parties arising from the contract would be discharged.

The legal issues before the court were whether the contract could be varied to include the proposed clause, and if so, whether it was just and equitable to do so. The applicant argued that the contract could be varied to include the proposed clause, and that it was just and equitable to do so as the contract was silent on the matter of compensation upon termination. The respondent opposed the application, arguing that the contract could not be varied in this way and that the proposed clause was not just and equitable.

The court found that the contract could be varied to include the proposed clause, and that it was just and equitable to do so. The court held that the contract was silent on the matter of compensation upon termination, and that it was not unconscionable for the applicant to seek such compensation. The court further held that it was not contrary to public policy to provide for such compensation, and that the proposed clause was not unreasonable or oppressive. The court therefore varied the contract to include the proposed clause.

The court did not make any order as to costs.

Orders

Orders of the court

1. The contract regulating the relationship of contract carrier and principal contractor between the applicant and the respondent be varied by inserting in cl 14 a further paragraph numbered “3” as follows:-

“Upon termination hereof, the principal contractor will pay to the contract carrier the sum of $13,080, and upon such payment all rights and liabilities of the parties hereto arising pursuant to this contract or pursuant to another contract made this day between the same parties will be released and discharged.”

2. There is no order as to costs.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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