Guthrie v News Limited

IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE

COMMON LAW DIVISION

No. 10144 of 2008

BETWEEN

BRUCE ROBERT GUTHRIE	Plaintiff
v
NEWS LIMITED (ACN 007 871 178)	Defendant

---

JUDGE:	KAYE J
WHERE HELD:	Melbourne
DATES OF HEARING:	27-30 April, 3 and 4 May 2010
DATE OF JUDGMENT:	14 May 2010
CASE MAY BE CITED AS:	Guthrie v News Limited
MEDIUM NEUTRAL CITATION:	[2010] VSC 196

---

CONTRACT – Employment – Action for wrongful dismissal – Plaintiff employed as editor-in-chief of daily newspaper for three years – Whether defendant entitled to terminate appointment during that term – Whether defendant breached any obligation of good faith – Damages – Loss of opportunity for renewal of contract or redeployment in comparable position – Alternative claim for damages for termination payment stipulated by contract.

---

APPEARANCES:	Counsel	Solicitors
For the Plaintiff	Mr N O’Bryan SC and Mr J McDougall	A J Macken & Co
For the Defendant	Mr W Houghton QC and Mr R Attiwill	Messrs Allens Arthur Robinson

HIS HONOUR:

1. In this proceeding, the plaintiff claims damages in respect of his dismissal by the defendant from his position as the editor-in-chief of the Herald Sun newspaper in November 2008. 

1. The Herald Sun newspaper is published by the Herald and Weekly Times Pty Limited.  That company is a subsidiary of the defendant, News Limited.  During the period which is relevant to these proceedings, Mr John Hartigan was the chairman, and chief executive officer, of News Limited.

1. In late 2006, the then long standing managing director of the Herald and Weekly Times Limited, Mr Julian Clarke, informed Mr Hartigan that he intended, in the following year, to retire from his position as managing director.  Mr Hartigan decided that Mr Clarke should be succeeded in his role by Mr Peter Blunden, who had been the editor-in-chief of the Herald and Weekly Times Pty Limited since May 2001, and the editor of the Herald Sun since 1996.  Mr Blunden was to be appointed deputy managing director, with the intention that he would commence his duties as managing director upon the retirement of Mr Clarke in twelve months’ time.  Accordingly, it was necessary for Mr Hartigan to consider a replacement for Mr Blunden as the editor of the Herald Sun.  After consulting with Mr Blunden and Mr Clarke, Mr Hartigan decided to appoint the plaintiff to the position of editor of the Herald Sun newspaper. 

1. At that time, the plaintiff was the editor of the Weekend Australian magazine, and the editor-in-chief of Wish magazine.  He had a long history of working in print media, commencing as a cadet journalist in 1972, and rising, through the ranks, to positions as the editor of a number of publications from the early 1990s. 

1. The first offer of the position of editor to the plaintiff was made by Mr Hartigan in Mr Hartigan’s office in Sydney.  The plaintiff states that the meeting took place on about 24 November 2006.  Mr Hartigan in his evidence thought that the meeting occurred…