Ierodiaconou v Catch.Com.Au Pty Ltd

The applicant, Ierodiaconou, brought proceedings against the respondent, Catch.Com.Au Pty Ltd, in the Small Claims Division of the Magistrates' Court of Victoria. The dispute concerned the calculation of a bonus payable to the applicant under his employment contract.

The primary legal issue before the Court was whether the term "sales" as used in the bonus clause of the employment contract referred to sales that had been invoiced by the respondent or sales that had been contracted for by customers. This distinction was critical as it affected the quantum of the bonus payable to the applicant.

Judge Mercuri reasoned that the ordinary meaning of "sales" in a commercial context, particularly in relation to a bonus tied to performance, referred to completed transactions that generated revenue. The Court found that an invoiced sale represented a more definitive measure of a completed transaction than a mere contracted sale, which could be subject to cancellation or other contingencies. Accordingly, the Court determined that the bonus should be calculated based on invoiced sales. The application was granted in part, reflecting this interpretation.