Gundrum v Iama Island Council

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DISTRICT COURT OF QUEENSLAND

CITATION:

Gundrum v. Iama Island Council [2007] QDC 310

PARTIES:

JOSEPH GUNDRUM
Plaintiff
v
IAMA ISLAND COUNCIL
Defendant

FILE NO:

60/2006

DIVISION:

Civil

PROCEEDING:

ORIGINATING COURT:

District Court

DELIVERED ON:

22 November 2007

DELIVERED AT:

Brisbane

HEARING DATE:

10 – 11 September 2007

JUDGE:

Skoien SJDC

ORDER:

Judgment for the defendant.

CATCHWORDS:

Contract of employment; no agreement reached; extrinsic evidence to vary written minutes of meeting.

COUNSEL:

Mr J Jacobs for plaintiff

Mr M A Jonsson for defendant

SOLICITORS:

The Law Office for plaintiff

MacDonnells Law for defendant                   

  1. Mr Gundrum’s claim is for money allegedly due to him from the council under a contract of employment.  The council denies that a concluded contract came into existence.

Background

  1. Iama (commonly called “Yam”) Island is part of Australia, lying in the Torres Strait. It is populated by some 400 Torres Strait Islanders. A council, consisting of a chairman, a deputy chairman and one councillor, has the functions of local government of the Island (Community Services (Torres Strait) Act 1984, “the Act”). See s 45. Section 40(1) incorporates the council, which has an official seal (s 40(3)).

  1. Mr Gundrum, a licensed plumber and gas fitter, was employed by the council on Yam Island in the position of essential services manager (ESM) commencing on about 3 July 2001 and continuing for some years.  Written contracts for that employment exist for the financial years 2001/2, 2002/3 and 2003/4.  Although he continued to perform the functions of ESM for the financial year 2004/5 no written contract was entered into for that year.

  1. The first contract was executed under seal by the council and signed by Mr Gundrum on 4 and 5 July 2001 (respectively) and the term was specified to be from 3 July 2001 to 3 July 2002.  The second was similarly executed by both on 4 October 2002 and the term was expressed to be from 2 July 2002 to 2 July 2003.  The third was similarly executed by both on 14 October 2003 and the term was expressed to be from 3 July 2003 to 3 July 2004.  Although a considerable period elapsed between date of commencement of the term and the date of execution of the second and third contracts, Mr Gundrum exercised the functions of ESM during the interim and received the proper remuneration.  This also occurred during the whole year 2004/5 when there was no contract at all.

  1. Mr Gundrum continued to work on Yam Island for the period commencing 4 July 2005 to 9 November 2005, another period for which no executed written contract exists.

  1. The statement of claim alleges that on 27 August 2005 the council agreed with Mr Gundrum to re-employ him as ESM, and gives the following particulars:-

    (a)        That the agreement was made by the council’s chairman, Mr Mackie, on behalf of the council;

    (b)        It was made at Mr Gundrum’s home;

    (c)        Its essential terms were contained in a draft contract to which Mr Gundrum and Mr Mackie made…

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Details
Case
[2007] QDC 310
Decision Date

CaseChat Overview and Summary

The case of Gundrum v Iama Island Council involved the plaintiff, Gundrum, who was seeking clarification and enforcement of an alleged employment contract with the defendant council. The dispute centred on whether an agreement had been reached that would provide Gundrum with ongoing employment and, if so, what its terms were. The matter was heard by the court, which had to determine the validity and content of any such agreement.

The primary legal issue before the court was whether there was a binding contract between the parties and, if so, what its terms were. This required the court to consider whether the written minutes of a meeting between the parties, which did not specify an agreement, could be varied by extrinsic evidence to show that an agreement had indeed been reached. The court had to balance the parol evidence rule with the need to determine the true intentions of the parties.

The court found that the written minutes did not reflect an agreement reached by the parties. Extrinsic evidence provided by Gundrum was insufficient to establish a binding contract. The court held that the parol evidence rule prevented the introduction of evidence that contradicted the written minutes. Consequently, the court ruled in favour of the council, finding that no enforceable agreement existed.

No further orders were made by the court as the primary issue of the existence of a binding contract was resolved in favour of the defendant.

Orders

Orders of the court

Judgment for the defendant.

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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