Quinlan v ERM Power Ltd

Case [2021] QSC 35


SUPREME COURT OF QUEENSLAND

CITATION:

Quinlan v ERM Power Ltd & Ors [2021] QSC 35

PARTIES:

KENT MATTHEW QUINLAN

(Plaintiff)

v

ERM POWER LIMITED ACN 122 259 23

(First Defendant)
PHILIP MATTHEW ST BAKER
(Third Defendant)
TREVOR CHARLES ST BAKER
(Fourth Defendant)
ANTHONY GEORGE BELLAS
(Fifth Defendant)
ANTONINO MARIO IANNELLO
(Sixth Defendant)
MARTIN ROGER GREENBERG
(Seventh Defendant)
JAMES BRETT LOCHRAN HEADING
(Eighth Defendant)
JONATHAN HUGH STRETCH
(Ninth Defendant)
JULIEANNE MARGARET ALROE
(Tenth Defendant)
ALBERT GOLLER
(Eleventh Defendant)
GEORGANNE MARIE HODGES
(Twelfth Defendant)
PHILIP ANDREW DAVIS

(Thirteenth Defendant)

FILE NO/S:

BS No 6601 of 2020

DIVISION:

Trial Division

PROCEEDING:

Application

DELIVERED ON:

26 February 2021

DELIVERED AT:

Brisbane

HEARING DATE:

8 February 2021

JUDGE:

Bowskill J

ORDERS:

I direct the parties to provide draft minutes of order, reflecting the reasons given below for striking out  paragraphs of the further amended statement of claim, with a grant of leave to re-plead where appropriate.

I will hear from the parties as to the costs of the applications

CATCHWORDS:

COMMUNICATIONS LAW – WHISTLEBLOWER PROTECTION AND PUBLIC INTEREST DISCLOSURE LEGISLATION –– where the plaintiff claims that he made whistleblower disclosures to directors and officers of the first defendant and another company which qualify for protection under Part 9.4AAA of the Corporations Act 2001 (Cth) – where one of the requirements to qualify for protection, under s 1317AA of the Corporations Act 2001, is that the discloser has reasonable grounds to suspect that the information indicates or concerns certain things – where the plaintiff seeks to establish that he had reasonable grounds to suspect certain things, in part, by reference to what he alleges was, objectively, the actual purport or effect of particular transactions, whether he had knowledge of those things or not – where the first defendant contends that the question of reasonableness is to be determined by reference only to what the plaintiff knew or believed at the time of the disclosures – consideration of the proper construction of the phrase “has reasonable grounds to suspect” in s 1317AA of the Corporations Act 2001.

PROCEDURE – CIVIL PROCEEDINGS IN STATE AND TERRITORY COURTS – PLEADINGS – STRIKING OUT – EMBARRASSING, TENDENCY TO CAUSE PREJUDICE, SCANDALOUS, UNNECESSARY ETC OR CAUSING DELAY IN PROCEEDINGS – applications to strike out paragraphs of the further amended statement of claim under r 171 of the Uniform Civil Procedure Rules 1999 on the basis that they have a tendency to prejudice or delay the fair trial of the proceeding including on the basis of irrelevance having regard to the proper construction of s 1317AA of the Corporations Act 2001, imprecision and a failure to properly comply with the requirement to specifically plead motive, intention or other condition of mind as required by r 150(1)(k) and (2) of the Uniform Civil Procedure Rules 1999 (Qld)

Corporations Act 2001 (Cth), s 1317AA

Uniform Civil Procedure Rules 1999 (Qld), rr 149, 150(1)(i), 150(1)(k), 150(2), 155, 157(c), 171

Australian Broadcasting Tribunal v Bond (1990) 170 CLR 321
Australian Competition and Consumer Commission v Woolworths…

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AGLC
Quinlan v ERM Power Ltd [2021] QSC 35
Case
[2021] QSC 35
Decision Date

CaseChat Overview and Summary

Quinlan v ERM Power Ltd is a case before the Supreme Court of Queensland, where the plaintiff, Quinlan, alleges that he made whistleblower disclosures to directors and officers of ERM Power Ltd and another company. Quinlan seeks protection under Part 9.4AAA of the Corporations Act 2001 (Cth), arguing that his disclosures meet the criteria set out in section 1317AA. One requirement of section 1317AA is that the discloser has reasonable grounds to suspect that the information indicates or concerns specific matters. Quinlan seeks to establish his reasonable grounds by reference to the actual purport or effect of certain transactions, regardless of his knowledge of these matters. ERM Power Ltd contends that the assessment of reasonableness should be based solely on Quinlan's knowledge or belief at the time of the disclosures.

The legal issues before the court revolve around the proper construction of the phrase "has reasonable grounds to suspect" in section 1317AA of the Corporations Act 2001. The court must determine whether the suspicion must be based on the discloser's actual knowledge or belief, or if it can also be based on the objective purport or effect of the transactions. Additionally, the court examined whether certain paragraphs of Quinlan's further amended statement of claim should be struck out under rule 171 of the Uniform Civil Procedure Rules 1999. The application to strike out included claims that the paragraphs were irrelevant, imprecise, and failed to properly plead motive, intention, or other condition of mind as required by rule 150(1)(k) and (2) of the Uniform Civil Procedure Rules 1999 (Qld).

The court found that the phrase "has reasonable grounds to suspect" should be interpreted to require a suspicion based on the discloser's actual knowledge or belief. This interpretation aligns with the legislative intent to protect whistleblowers who act in good faith. The court held that Quinlan's reliance on the objective purport or effect of transactions, independent of his knowledge, was not sufficient to meet the requirement of section 1317AA. Regarding the application to strike out, the court determined that certain paragraphs of Quinlan's further amended statement of claim were irrelevant, imprecise, and failed to properly plead the necessary conditions of mind. Consequently, the court directed the parties to provide draft minutes of order, reflecting the reasons for striking out the paragraphs, with a grant of leave to re-plead where appropriate. The court will also hear from the parties regarding the costs of the applications.

Orders

Orders of the court

I direct the parties to provide draft minutes of order, reflecting the reasons given below for striking out paragraphs of the further amended statement of claim, with a grant of leave to re-plead where appropriate.

I will hear from the parties as to the costs of the applications

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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