FEDERAL COURT OF AUSTRALIA
Scott v Steritech Pty Ltd [2023] FCA 1401
File number(s): QUD 236 of 2022 Judgment of: COLLIER J Date of judgment: 14 November 2023 Catchwords: INDUSTRIAL LAW - interlocutory application seeking strike out of statement of claim and summary dismissal – earlier proceedings between same parties in Federal Circuit and Family Court of Australia settled by Deed of Release – Deed of Release barred further proceedings save for “claims under workers’ compensation…law” - fresh proceedings instituted in Federal Court seeking damages and compensation for personal injuries – common substratum of facts in proceedings – whether Federal Court proceedings an abuse of process – whether Fair Work Act proceedings barred by Deed of Release - jurisdiction of Federal Court to hear common law claim for damages – meaning of “claims under workers’ compensation… law” – proper order as to costs Legislation: Constitution ss 76(i), 76(ii)
Fair Work Act 2009 (Cth) ss 45, 50, 340(1)(a)(i), 340(2), 352, 545, 570, 570(2)(a)
Federal Court of Australia Act 1976 (Cth) ss 19(1), 31A, 37M
Safety, Rehabilitation and Compensation Act 1988 (Cth)
Federal Court Rules 2011 (Cth) rr 16.21(1)(f) 26.01(a), 26.01(1)(d)
Workers Compensation and Rehabilitation Act 2003 (Qld) ss 110, 237, 275
Cases cited: Aon Risk Services Australia Ltd v Australian National University (2009) 239 CLR 175
Ashby v Commonwealth of Australia (No 4) [2012] FCA 1411
Burgundy Royale Investments Pty Ltd v Westpac Banking Corporation (1987) 18 FCR 212
Citta Hobart Pty Ltd v Cawthorn [2022] HCA 16
Laverick v Westpac Banking Corporation [2020] QSC 333
Mulhern v Pearce(No. 2) [2014] FCA 805
Rana v Google Inc (2017) 254 FCR 1; [2017] FCAFC 156
Sarina v Fairfax Media Publications Pty Ltd [2018] FCAFC 190; (2018) 365 ALR 15
Tomlinson v Ramsey Food Processing Pty Ltd (2015) 256 CLR 507; [2015] HCA 28
Tyne (Trustee) v UBS AG (No 2) (2015) 250 FCR 341; [2017] FCAFC 5
UBS AG v Tyne (2018) 265 CLR 77; [2018] HCA 45
Zoiti-Licastro v Australian Taxation Office [2006] 154 IR 1
Division: Fair Work Division Registry: Queensland National Practice Area: Employment and Industrial Relations Number of paragraphs: 57 Date of hearing: 1 March 2023 Counsel for the Applicant: M Black Solicitor for the Applicant: Queensland Workplace and Workplace Injury Law Counsel for the Respondent: Mr S Mackie Solicitor for the Respondent: Ai Group Workplace Lawyers ORDERS
QUD 236 of 2022 BETWEEN: MICHAEL SHANE SCOTT
Applicant
AND: STERITECH PTY LTD
Respondent
ORDER MADE BY:
COLLIER J
DATE OF ORDER:
14 NOVEMBER 2023
THE COURT ORDERS THAT:
1.The Statement of Claim filed 7 July 2022 be struck out, and the proceeding be dismissed.
2.The Applicant pay the costs of Steritech Pty Ltd, to be taxed if not otherwise agreed.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
COLLIER J:
Before the Court is an interlocutory application filed by the respondent in the substantive proceeding, Steritech Pty Ltd (Steritech)…
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- AGLC
- Scott v Steritech Pty Ltd [2023] FCA 1401
- Case
- [2023] FCA 1401
- Decision Date
CaseChat Overview and Summary
The court must first consider whether the Federal Court proceedings are an abuse of process, given the common substratum of facts with the earlier Federal Circuit Court proceedings. The court found that the Federal Court proceedings are an abuse of process because they re-litigate settled claims. The court also found that the Federal Court lacks jurisdiction to hear Mr Scott's common law claim because it is barred by the Deed of Release. The court further found that the meaning of "workers’ compensation…law" is ambiguous and requires extrinsic evidence to determine the circumstances surrounding the parties and the understanding between the parties. The court held that there is no bar to Mr Scott seeking common law damages for the injury he alleges was caused by Steritech.
The court ordered that Mr Scott's Statement of Claim be struck out and the proceeding be dismissed. The court also ordered that Mr Scott pay the costs of Steritech Pty Ltd, to be taxed if not otherwise agreed. The court held that costs should follow the event and that, to the extent that section 570 of the Fair Work Act is enlivened in this proceeding, Mr Scott instituted the proceeding without reasonable cause within the meaning of section 570(2)(a) of the Fair Work Act. The court ordered costs against Mr Scott in favour of Steritech.
Orders
Orders of the court
1. The Statement of Claim filed 7 July 2022 be struck out, and the proceeding be dismissed.
2. The Applicant pay the costs of Steritech Pty Ltd, to be taxed if not otherwise agreed.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
Mr Scott submitted, in summary, as follows:·Steritech had failed to establish any relevant pleading deficiency to warrant the strike out application;·The circumstances made summary dismissal inappropriate;·Steritech’s strike out application should fail because the Deed of Release was no bar to a Fair Work Act claim;·Even if the Deed of Release was a bar, the Court did not lose jurisdiction to hear the common law claim;·Although the Fair Work Act and the common law claim depended on the same substratum of facts, summary dismissal of the Fair Work Act claim would not obviate the need for a trial upon those facts in relation to the common law claim. ·Extrinsic evidence was needed to construe the meaning of “workers’ compensation…law” to determine the circumstances surrounding the parties and the understanding between the parties. ·The meaning of “workers’ compensation… law” is ambiguous. The Court was required to consider extrinsic evidence. ·There was no bar to Mr Scott seeking common law damages for the injury he alleged was caused by Steritech.CONSIDERATION It is not in dispute that Mr Scott originally commenced litigation against Steritech in the Federal Circuit Court claiming failure of Steritech to comply with a consultation clause under the Clerks - Private Sector Award 2010 (Award), that Mr Scott had originally claimed that Steritech had breached s 45 of the Fair Work Act and had engaged in adverse action against him within the meaning of s 342(1) of the Fair Work Act, and that the parties had settled the proceedings in the Federal Circuit Court for $52,500.00. Comparison of Mr Scott’s application in the Federal Circuit Court with his statement of claim in this Court reveals that the facts pleaded in both cases are, essentially, identical, being referable to the circumstances of the termination of Mr Scott’s employment by way of redundancy. Material differences are:·Although Mr Scott’s claims in both the Federal Circuit Court proceeding and the present Federal Court proceeding relied on the consultation process in clause 8 of the Award, in the Federal Court Statement of Claim he also relies in the alternative on the Steritech Pty (Narangba) Plant Operators Collective Agreement 2007;·In the Federal Court proceeding Mr Scott claims breach by Steritech of its Fair Work Act obligations to him, as well as breach by Steritech of its duty of care to him referable to compliance by Steritech with obligations under the Award, consultation about the proposed redundancy and providing him with support. In the Federal Circuit Court Mr Scott did not plead breach of a duty of care by Steritech – rather while he claimed contravention by Steritech of s 45 of the Fair Work Act, he also claimed alleged breach of an implied term of Mr Scott’s contract by failure to give him six months’ notice and contravention of Part 3-1 of the Fair Work Act by Steritech (which was not the subject of his claim in the Federal Court). By cl 3(a) of the Deed of Release Mr Scott released and forever discharged Steritech and others from, inter alia, all actions, suits, claims, demands, rights, costs, complaints and other liabilities of any nature he had, or at or at any time may have, or but for the execution of the Deed, could or might have had against Steritech and others, whether known, unknown or incapable of being known at the time of execution of the Deed, arising out of or in connection with the employment period, termination and proceedings and any other matter. However, there was a specific exclusion for:any claims made under workers' compensation or superannuation law.