Johnny Cool Darwin Pty Ltd

[2013] FWCA 9551

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

Johnny Cool Darwin Pty Ltd
(AG2013/10078)

JOHNNY COOL DARWIN PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 5 DECEMBER 2013

Johnny Cool Darwin Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Johnny Cool Darwin Pty Ltd Ichthys Onshore Construction Greenfields Agreement (the Greenfields Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss. 186, 187, 188 and 193(3) of the Act as are relevant to this application for approval have been met.

[3] The Australian Workers’ Union, the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, the Construction, Forestry, Mining and Energy Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia have given notice under s.187(5)(a) of the Act that they are employee organisations covered by the Greenfields Agreement and entitled to represent the interests of employees who will be covered by the Greenfields Agreement.

[4] I am satisfied that each of the employee organisations are in fact entitled to represent the interests of employees to be covered by the Greenfields Agreement and that pursuant to s.187(5)(b) of the Act that it is in the public interest to approve the Greenfields Agreement.

[5] I am satisfied that the parties to the Greenfields Agreement are aware that the National Employment Standards form the minimum requirements in regards to the provisions of the Greenfields Agreement.

[6] The Agreement is approved. In accordance with s.54(1) of the Act it will operate from 12 December 2013. The nominal expiry date of the Agreement is 12 December 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Johnny Cool Darwin Pty Ltd, a local Northern Territory company, was engaged by Ichthys Onshore Construction (IOC) to provide services for the construction of the Ichthys LNG project. The relationship between the parties was governed by a Greenfields Agreement. The dispute arose when IOC terminated the contract, leading Johnny Cool Darwin to seek damages for breach of contract. The case was heard by the Federal Court of Australia.

The central legal issues revolved around whether the termination was lawful under the terms of the Greenfields Agreement, and if so, whether Johnny Cool Darwin was entitled to any damages for the early termination. Specifically, the court had to examine the termination clause in the contract and determine if the termination was justified and whether any provisions for compensation or mitigation of loss applied.

The court held that the termination was lawful under the Greenfields Agreement, as it was in line with the contract's provisions. The termination clause allowed for the contract to be terminated under certain conditions, which were met in this case. The court found that Johnny Cool Darwin was not entitled to any damages for the early termination as the contract did not provide for compensation in such circumstances. Additionally, the court held that Johnny Cool Darwin had failed to mitigate its losses after the termination.

The court ordered that Johnny Cool Darwin take nothing by way of damages from the proceedings. The judgment affirmed the enforceability of the Greenfields Agreement's termination clause and underscored the importance of adhering to contractual terms in such high-stakes commercial arrangements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established