China Towing Pty Ltd v Hatzipapa

China Towing Pty Ltd sued Hatzipapa, the company's former employee, for unpaid wages and for three unauthorised payments made to Hatzipapa from the company’s account. Hatzipapa counter-claimed for unpaid wages, annual leave pay and conversion of the three payments. The dispute came before the County Court of Victoria. The court needed to determine the truth of the various claims and counter-claims by the parties, as well as the appropriate orders to make. The court found that the evidence given by the company secretary, the company accountant and Hatzipapa was not truthful. The evidence showed that Hatzipapa was paid in cash, which was not included in the company’s profit and loss statements. The company had thus evaded its obligation to remit taxation on wages paid to Hatzipapa. The company secretary and accountant were not truthful when they said that the figures for wages on the PAYG Payment Summary Statements were selected “to balance the books”. The court found that Hatzipapa was not truthful when she gave improbable explanations for additional income which was shown on her bank statements. Hatzipapa’s claim for unpaid wages therefore failed. The court found that there was sufficient evidence to establish the tort of conversion in relation to the three payments made from the company account to Hatzipapa’s account. The court also found that Hatzipapa was entitled to annual leave payments which had not been paid to her. The court ordered that judgment be entered for Hatzipapa against China Towing Pty Ltd for $717.60, that China Towing Pty Ltd pay Hatzipapa’s costs of $2,349.60, and that each party bear their own costs.