Cox v DP World Brisbane Limited

Case [2021] FCA 1335


FEDERAL COURT OF AUSTRALIA

Cox v DP World Brisbane Limited [2021] FCA 1335

File number: QUD 365 of 2021
Judgment of: LOGAN J
Date of judgment: 11 November 2021
Catchwords:

INDUSTRIAL LAW – interlocutory application – where respondent employer required all employees to submit proof of their vaccination against COVID-19 – where applicants unwilling to comply with vaccine mandate – where respondent’s “show cause letter” caused to be sent after applicants raised their unwillingness to comply in a letter – whether casual link between the “show cause letter” and exercise of workplace right – where all applicants bar one entitled to termination benefits –where closely proximate trial date for substantive hearing offered by the Court – where public interest in minimising risk of disruptions to supply chains – whether damages an adequate remedy

PRACTICE AND PROCEDURE – application for interlocutory injunction – whether prima facie case that respondent had contravened s 340(1) or alternatively s 50 of the Fair Work Act 2009 (Cth), or alternatively committed breach of contract – whether balance of convenience favours the grant of injunctive relief – application for interlocutory relief dismissed

Legislation:

Evidence Act 1995 (Cth) s 144

Fair Work Act 2009 (Cth) ss 50, 340, 341, 361, 545

Federal Court of Australia Act 1976 (Cth) s 23

Work Health and Safety Act2011 (Qld)

Cases cited:

Australian Broadcasting Corporation v O’Neill (2006) 227 CLR 57

Bouzourou v The Ottomon Bank [1930] AC 271

Communications, Electrical, Electronic, Energy Information, Postal, Plumbing and Allied Services Union of Australia v Blue Star Pacific Pty Ltd (2009) 184 IR 333

Construction, Forestry, Maritime, Mining and Energy Union, Matthew Howard v Mt Arthur Coal Pty Ltd T/A Mt Arthur Coal [2021] FWC 6309

King v Darling Island Stevedoring & Lighterage Co Ltd; Ex parte Halliday; Ex parte Sullivan (1938) 60 CLR 601

McLean v Tedman (1984) 155 CLR 306

Ottoman Bank v Chakarian [1930] AC 277

Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia (1998) 195 CLR 1

QNurses First Inc v Monash Health [2021] FCA 1372

Sabapathy v Jetstar Airways [2021] FCAFC 25

Turner v Mason (1845) 14 M&W 112

Division: Fair Work Division
Registry: Queensland
National Practice Area: Employment and Industrial Relations
Number of paragraphs: 101
Date of hearing: 11 November 2021
Counsel for the Applicants: Mr JB Sweeney
Solicitor for the Applicants: Green and Associates
Counsel for the Respondent: Mr J Darams with Mr M Watts
Solicitor for the Respondent: Seyfarth Shaw Australia

ORDERS

QUD 365 of 2021
BETWEEN:

SHAUN COX

First Applicant

ZOLTAN NEMETH

Second Applicant

JAMIE EDWARDS (and others named in the Schedule)

Third Applicant

AND:

DP WORLD BRISBANE LIMITED ACN 130 876 701

Respondent

ORDER MADE BY:

LOGAN J

DATE OF ORDER:

11 NOVEMBER 2021

Upon the respondent undertaking that until close of business on 31 December 2021 or earlier

order, the respondent will not terminate any applicants’ employment on either of the following

grounds:

a.        the applicant has not provided evidence of having been vaccinated against Covid 19;

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AGLC
Cox v DP World Brisbane Limited [2021] FCA 1335
Case
[2021] FCA 1335
Decision Date

CaseChat Overview and Summary

Cox and others commenced proceedings against DP World Brisbane Limited in the Federal Circuit Court, seeking an interlocutory injunction. The applicants were employees who refused to comply with the respondent’s vaccination mandate, which required all employees to provide proof of their COVID-19 vaccination status. The applicants sought an injunction to restrain the respondent from terminating their employment. The primary issue was whether the respondent had contravened section 340(1) or alternatively section 50 of the Fair Work Act 2009 (Cth), or alternatively committed a breach of contract. The court considered whether there was a prima facie case that the respondent had contravened the legislation or breached the contract, and whether the balance of convenience favoured the grant of injunctive relief. The court also examined the public interest in minimising risk of disruptions to supply chains, and whether damages would be an adequate remedy.

The court found that while the applicants may have a prima facie case, the evidence did not establish a casual link between the respondent’s “show cause letter” and the exercise of workplace rights. The court considered the unpredictability of the shipping schedule and labour needs, and the risk of operational disruption to the Port of Brisbane. The court found that the balance of convenience did not favour the grant of injunctive relief, as the potential harm to the respondent outweighed the potential harm to the applicants. The court also found that damages would be an adequate remedy, and that the public interest in minimising risk of disruptions to supply chains outweighed the applicants’ right to be free from unjustifiable termination.

The interlocutory injunction application was dismissed. The applicants were ordered to file and serve an amended Statement of Claim, Defence, Reply, and affidavit material. The matter was set down for hearing with a duration of two days. Costs were reserved.

Orders

Orders of the court

1. The interlocutory injunction application be dismissed.

2. By 4:30 pm (AEST) on 15 November 2021, the applicants file and serve an amended Statement of Claim.

3. By 4:30 pm (AEST) on 18 November 2021, the respondent file and serve a Defence.

4. By 4:30 pm (AEST) on 19 November 2021, the applicants file and serve any Reply.

5. By 4:30 pm (AEST) on 30 November 2021, the applicants file and serve an affidavit of each witness it will call at trial.

6. By 12:00 pm (AEST) on 13 December 2021, the respondent file and serve affidavits of each witness it will call at trial.

7. By 4:30 pm (AEST) on 16 December 2021, the applicants file and serve any affidavit material in reply.

8. The matter be set down for hearing with a duration of two days, commencing at 10:15 am (AEST) on 20 and 21 December 2021.

9. Liberty to apply.

10. Costs be reserved.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

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

As a result, while employees may see others from their own roster panel more frequently, they will also mix with the broader group of employees through VSEs and supplementaries working across shifts as needed, and from themselves or others working overtime. The unpredictability of the shipping schedule and labour needs means it is not feasible to avoid this for long, if at all.Operational continuity The Port of Brisbane (Fisherman Islands) is the only container port in Queensland. DP World Brisbane is a common entry port for vessels making a first port of call at Australia. Of the 10 services that berth at the Brisbane Terminal, 6 are making their first call in Australia. DP World Brisbane operates one of three container stevedoring terminals at the Port of Brisbane. The others are operated by Patrick Terminals and Hutchison Ports. Between them, these three terminals have nine container berths. Of those berths, the Brisbane Terminal includes four. As such, if the Brisbane Terminal is unable to operate fully or at all, this affects nearly half of Queensland’s container stevedoring capacity.COVID-19 Vaccination Mandate and Risk Assessment From around March 2020, DP World Australia management, of which Mr Hanley is part of, has been discussing the safe management of COVID-19 in the workplace to keep employees safe and the terminals operating. Each week, the DP World Australia Management team meets on Mondays (to discuss Work, Health and Safety) and Thursdays (to discuss terminal operations). From Mr Hanley’s experience attending these meetings, the topic of COVID-19 and safe management of COVID-19 arises frequently. On or around 15 September 2021, Mr Hanley became aware of three positive cases of COVID-19 at the Port Botany terminal. Mr Hanley was informed by Scott Eadie (General Manager - Operations, DP World Sydney Ltd) and Andrew Adam (CEO, DP World Australia Ltd) that approximately 35 employees were required to self-isolate for 14 days in accordance with NSW Health directions. Mr Hanley is also aware that a further 57 employees were sent home from work because they were casual contacts. These employees were required to produce a negative COVID-19 test result before returning to work. Mr Hanley is aware that in mid-September, Victoria International Container Terminal had a COVID-19 outbreak and was required to close operations for one day for cleaning. Mr Hanley is also aware that in early October, there was a COVID-19 outbreak at the Patrick Terminal in Melbourne. As a result, Patrick was required to operate with 20 per cent reduced capacity for approximately a week following the outbreak. As a result of the Port Botany COVID-19 outbreak, it became clear to the DP World Australia Management team that similar outbreaks in the future at Port Botany and at other terminals would create a serious community transmission risk and disrupt DP World's continuous operations. Mr Hanley reasoned, and Mr Hanley believes other members of the team also believed, that logically if a similar outbreak were to occur at DP World Brisbane, Queensland Health would take a similar, if not more stringent approach, to the management of the outbreak as that taken by NSW Health.