Kilcran, in the matter of Allco Finance Group Limited (Receivers and Managers Appointed) (In Liquidation) v Gothard

The case of Allco Finance Group Limited (Receivers and Managers Appointed) (In Liquidation) v Gothard concerns the dispute between the appellant, Gothard, and the receivers of Allco Finance Group Limited (AFG). Gothard, who was seconded to Allco SIF Ltd (SIF) from AFG, sought redundancy payments, claiming that his employment was terminated by AFG, repudiated by AFG, amounted to a constructive dismissal, or he was made redundant. The trial judge found Gothard's employment had ended by a consensual resignation and dismissed his claim. Gothard appealed this decision to the court.

The legal issues in this case revolve around whether Gothard's employment was effectively terminated by AFG or if it was consensually resigned. Specifically, the court needed to determine if Gothard's secondment to SIF without charge constituted a termination of employment, if the receivers' statement amounted to an express termination, and if Gothard's manager had ostensible authority to communicate such decisions. Additionally, the court examined whether Gothard's manager had ostensible authority to communicate something not explicitly said and if the trial judge erred in overlooking evidence or drawing incorrect inferences.

The court held that the trial judge did not err in resolving the issues in the case. The court found that Gothard's employment by AFG ended by a consensual resignation, which was a reasonable conclusion given the circumstances. The court also noted that Gothard was permitted to raise a new formulation of argument on appeal, and this did not prejudice the respondents. Therefore, the appeal was dismissed.

The final orders of the court were to dismiss the appeal and for Gothard to pay the respondents' costs of the appeal, to be taxed in default of agreement.