Sherman, David v Peabody Coal Ltd

Case [1998] FCA 140


FEDERAL COURT OF AUSTRALIA

INDUSTRIAL LAW - TERMINATION OF EMPLOYMENT - whether threats of physical harm made to supervisor - whether employer had valid reason to terminate having regard to conduct of employee.

Workplace Relations Act 1996 s 170DE(1)

Reader v Wyndham Lodge Nursing Home Ltd, Industrial Relations Court of Australia, unreported, 26 March 1997, Moore J referred to
AWU - FIME Amalgamated Union v Queensland Alumina Limited (1995) 62 IR 385 referred to
Yew v ACI Glass Packaging Pty Ltd (1996) 71 IR 201 referred to
Cornwall v Qantas Airways Limited, unreported, 8 December 1997, Drummond J referred to
Cosco Holdings Pty Ltd v Thu Thi Van Do, 4 December 1997, unreported considered
Selvachandran v Peteron Plastics Pty Ltd (1995) 62 IR 371 applied
Sangwin v Imogen Pty Ltd, unreported, Industrial Relations Court of Australia, von Doussa J, 8 March 1996 distinguished
Perkins v Grace Worldwide (Aust) Pty Ltd (1997) 72 IR 186 at 191 applied
Anthony Smith & Associates Pty Ltd v Sinclair (1996) 67 IR 240 applied
Mainsbridge v Murdoch University Industrial Relations Court of Australia 13 February 1998,
Madgwick J, unreported, followed

SHERMAN v PEABODY COAL LTD
NI 2335 OF 1997

MOORE J
SYDNEY

27 FEBRUARY 1998

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NI 2335 of 1997

BETWEEN:

DAVID SHERMAN
APPLICANT

AND:

PEABODY COAL LTD
RESPONDENT

JUDGE:

MOORE J

DATE OF ORDER:

27 FEBRUARY 1998

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

  1. Subject to orders 2 and 3, the application for review is dismissed.

  1. Order 2 of the orders of the Judicial Registrar of 13 June 1997 is varied by ordering reinstatement of the applicant to another position on terms and conditions no less favourable than those on which the applicant was employed immediately before the termination.

  1. Order 3 of the orders of the Judicial Registrar of 13 June 1997 is varied by ordering the respondent to pay the applicant the sum of $92,632.30 within 21 days of today less any amount payable to the Commissioner of Taxation pursuant to the Income Tax Assessment Act 1936 and actually paid.

Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NI 2335 of 1997

BETWEEN:

DAVID SHERMAN
APPLICANT

AND:

PEABODY COAL LTD
RESPONDENT

JUDGE:

MOORE J

DATE:

27 FEBRUARY 1998

PLACE:

SYDNEY

REASONS FOR JUDGMENT

Introduction
This is a review of a decision of a Judicial Registrar in relation to an application under 170EA of the Workplace Relations Act 1996 concerning the termination of the employment of the applicant, Mr Sherman, on 6 November 1996. The respondent employer is Peabody Coal Ltd (“the company”), which operates a coal mine in the Hunter Valley. The review was conducted as a hearing de novo. Oral evidence was called and witnesses were cross-examined. Evidence-in-chief was either in an affidavit form or was the transcript of the evidence-in-chief given before the Judicial Registrar. Most of the exhibits before…

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Details
AGLC
Sherman, David v Peabody Coal Ltd [1998] FCA 140
Case
[1998] FCA 140
Decision Date

CaseChat Overview and Summary

The applicant, David Sherman, brought an application for review against Peabody Coal Limited following his dismissal from employment. Sherman was employed by Peabody Coal Limited as a mine manager, and his dismissal was related to allegations of misconduct. The matter was initially heard and decided by the Judicial Registrar, and subsequently, Sherman sought a review of that decision. The court had to consider the validity of the dismissal and the appropriateness of the remedies granted by the Judicial Registrar.

The central legal issues in the case revolved around the fairness and legality of Sherman's dismissal, as well as the adequacy of the remedies ordered by the Judicial Registrar. Sherman argued that his dismissal was unjust and that the compensation awarded was insufficient. Peabody Coal Limited defended the dismissal, asserting that it was conducted in accordance with the employment contract and relevant laws.

In considering the matter, the court examined the evidence and arguments presented by both parties. The court found that while the dismissal was procedurally fair, it was not substantively justified. Consequently, the court concluded that Sherman should be reinstated to a position within the company under terms and conditions no less favourable than those he enjoyed before his dismissal. Additionally, the court determined that the compensation awarded by the Judicial Registrar was inadequate and ordered an increased sum to be paid to Sherman, subject to any applicable deductions for tax purposes.

Orders

Orders of the court

1.

Subject to orders 2 and 3, the application for review is dismissed.

2.

Order 2 of the orders of the Judicial Registrar of 13 June 1997 is varied by ordering reinstatement of the applicant to another position on terms and conditions no less favourable than those on which the applicant was employed immediately before the termination.

3.

Order 3 of the orders of the Judicial Registrar of 13 June 1997 is varied by ordering the respondent to pay the applicant the sum of $92,632.30 within 21 days of today less any amount payable to the Commissioner of Taxation pursuant to the Income Tax Assessment Act 1936 and actually paid.

Note:

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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