New South Wales
Court of Appeal
CITATION: PURCELL v TULLETT PREBON (AUST) PTY LTD [2010] NSWCA 150 HEARING DATE(S): 01/07/2010
JUDGMENT DATE:
28 September 2010JUDGMENT OF: Allsop P at 1; Basten JA at 2; Handley AJA at 3 DECISION: Appeal dismissed with costs. CATCHWORDS: CONTRACT – employment – fixed term – repudiation – walk out by employee – contract not terminated. - CONTRACT – performance – readiness and willingness. - EMPLOYMENT – contract for fixed term – repudiation – walk out by employee – contract not terminated. - EMPLOYMENT – repudiation – walk out by employee – negative restriction – injunction – contract not terminated – employer’s direction to return to work – whether reasonable. CATEGORY: Principal judgment CASES CITED: A-G for NSW v Perpetual Trustee Co Ltd [1952] HCA 2, 85 CLR 237
Alghussein Establishment v Eton College [1988] 1 WLR 587 HL
Automatic Fire Sprinklers Pty Ltd V Watson [1946] HCA 25, 72 CLR 435
Byrne v Australian Airlines Ltd [1995] HCA 24, 185 CLR 410
Foran v Wight [1989] HCA 51, 168 CLR 385
Holland v Wiltshire [1954] HCA 42, 90 CLR 409
Ogle v Comboyuro Investments Pty Ltd [1976] HCA 21, 136 CLR 444
R v Darling Island Stevedoring and Lighteridge Co Ltd; Ex Parte Halliday & Sullivan [1938] HCA 44, 60 CLR 601
Rawson v Hobbs [1961] HCA 72, 107 CLR 466
Suttor v Gundowda Pty Ltd [1950] HCA 35, 81 CLR 418
Visscher v Guidice [2009] HCA 34, 239 CLR 361PARTIES: A: Simon Purcell
R: Tullett Prebon (Australia) Pty LimitedFILE NUMBER(S): CA 2008/00282167 COUNSEL: A: SJ Rushton SC and MS Henry
R: JJE Fernon SC and RM ForemanSOLICITORS: A; Horton Rhodes (Neil Archer)
R: Freehills (Miles Bastick)LOWER COURT JURISDICTION: Supreme Court - Equity Division LOWER COURT FILE NUMBER(S): SC6304/08 LOWER COURT JUDICIAL OFFICER: Ward J LOWER COURT DATE OF DECISION: 09/10/09 LOWER COURT MEDIUM NEUTRAL CITATION: [2009] NSWSC 1079
2008/282176
Tuesday 28 September 2010Allsop P
Basten JA
Handley AJA
CATCHWORDS
CONTRACT – employment – fixed term – repudiation – walk out by employee – contract not terminated.
CONTRACT – performance – readiness and willingness.
EMPLOYMENT – repudiation – walk out by employee – negative restriction – injunction – contract not terminated – employer’s direction to return to work – whether reasonable.EMPLOYMENT – contract for fixed term – repudiation – walk out by employee – contract not terminated.
HEADNOTE
The appellant, a successful finance broker, entered into a contract of employment with the respondent for a two-year term. Some months later, in breach of contract, he commenced to work for a competitor of his employer. The employer obtained an injunction restraining the appellant from working for that competitor and placed him on paid garden leave. Shortly before the injunction expired the employer directed the appellant to return to work but the appellant did not do so. The employer treated this…
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- Case
- [2010] NSWCA 150
- Decision Date
CaseChat Overview and Summary
The Court of Appeal was required to determine whether Mr. Purcell's conduct in walking out of his employment amounted to a repudiation of his fixed-term employment contract. This involved considering the legal consequences of such an action in the context of an employment agreement that had a specified duration.
The Court reasoned that a repudiation of a contract requires conduct that demonstrates an intention no longer to be bound by its terms. In this instance, the Court found that Mr. Purcell's walkout, while a breach of contract, did not necessarily evince an intention to abandon the contract entirely or to refuse to perform its essential obligations for the remainder of its term. The Court applied the principle that a mere breach, even a serious one, does not automatically amount to repudiation. The employer's acceptance of the repudiation is also a necessary step for termination.
The appeal was dismissed, and the employer was awarded costs.
Orders
Orders of the court
Appeal dismissed with costs.
Background
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Evidence
Evidence Before The Court
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Decision
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Ratio Decidendi
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