Legal Research
Cases
Smith v Regional Development Australia Murraylands & Riverland Inc

Smith v Regional Development Australia Murraylands & Riverland Inc

Link copied

Case Copied 11 November 2014 82 min read

Contents

On this page

DISTRICT COURT OF SOUTH AUSTRALIA
(Civil)
SMITH v REGIONAL DEVELOPMENT AUSTRALIA MURRAYLANDS & RIVERLAND INC
[2015] SADC 11
Judgment of His Honour Judge Millsteed
11 November 2014
CONTRACTS
Plaintiff employed as CEO of Riverland Development Corporation (RDC) under a fixed term contract - later RDC amalgamated with Murraylands Regional Development Board (MRDB) to form the Defendant - Plaintiff's position as CEO, abolished as a consequence of amalgamation - Plaintiff contended that RDC repudiated contract of employment and sought damages from Defendant on the basis that RDC's contractual liability was transferred to Defendant upon its incorporation pursuant to s.22(6) of the Associations Incorporation Act 1985 (SA) - Defendant contended that contract of employment was not repudiated by RDC but was frustrated because RDC and MRDB relied on government funding which was to be withdrawn should they fail to amalgamate - in the alternative Defendant contended that Plaintiff failed to accept repudiation and if he did accept repudiation failed to mitigate his loss - judgment for the Plaintiff.
Associations Incorporation Act 1985 (SA) s 22(6), referred to.
Public Market Co of Portland v City of Portland 171 Or.522, 130P.2d 624, 643, 646; Romero v Auty [2002] VSC 462; McCluskey v Karagiozis (2002) 120 IR 147; Royal Victorian Institute for the Blind Ltd and Others v RBS, RVIC, VAF Ltd (2004) 206 ALR 581; Nokes v Doncaster Amalgamated Collieries Ltd [1940] AC 1014; FA Tamlin Steamship Co Ltd v Anglo Mexican Petroleum Products Co Ltd [1916] 2 AC 397; Scanlan's New Neon Ltd v Tooheys Ltd [1943] 67 CLR 169; Denmark Productions Ltd v Boscobel Productions Ltd [1969] 1 QB 699; Davis Contractors Ltd v Fareham UDC [1956] AC 696; Codelfa Constructions Pty Ltd v State Rail Authority (1982) 149 CLR 337; Paal Wilson and Co A/S v Partendreederei Hannah Blumenthal [1983] 1 AC 854; R v Parkway Chrysler Plymouth Ltd (1976) 32 CCC (2d) 116 (Ont CA); In the Matter of the Trustees of the Church of St Jude, Brighton [1956] SASR 46; Auckland Trotting Club v CIR [1968] NZLR 193; BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 16 ALR 363; Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 241 ALR 88; Collier v Sunday Referee Publishing Company Ltd [1940] 2 KB 647; Burton v Litton Business Systems Pty Ltd and Data Print (Aust) Pty Ltd (1977) 16 SASR 162; Reigate v Union Manufacturing Co Ltd [1918] 1 KB 592; Driver v War Service Homes Commissioner (1923) 44 ALT 103; Whittaker v Unisys Australia Pty Ltd (2010) 192 IR 311 (VSC); Wilding v British Telecommunications [2002] ICR 1079 (CA), considered.

SMITH v REGIONAL DEVELOPMENT AUSTRALIA MURRAYLANDS & RIVERLAND INC
[2015] SADC 11
INTRODUCTION

The Plaintiff, Mr Kenneth Smith, was employed in the position of Chief Executive Officer (CEO) of Riverland Development Corporation Inc (RDC) under a contract for a fixed term of five years (the CEO contract). Before the CEO contract was…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Keep reading for free

Create a free CaseChat account to read Smith v Regional Development Australia Murraylands & Riverla... and more:

Read every judgment in full
Ask AI and get answers linked to paragraphs
See how each paragraph was cited in later cases
Download judgments as PDF or Word

Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details

Case: [2015] SADC 11
Decision Date: 11 November 2014

CaseChat Overview and Summary

The plaintiff, Mr Smith, was employed as the Chief Executive Officer (CEO) of Riverland Development Corporation (RDC) under a fixed term contract. Before the contract was due to expire, RDC amalgamated with Murraylands Regional Development Board (MRDB) to form the defendant, thereby extinguishing the plaintiff’s position as CEO. The plaintiff contends that RDC repudiated the CEO contract and seeks damages from the defendant on the basis that RDC’s contractual liability was transferred to the defendant upon its incorporation pursuant to s 22(6) of the Associations Incorporation Act 1985 (SA). The defendant denies liability and contends that the CEO contract was frustrated because RDC and MRDB were dependent on government funding which was to be withdrawn should they fail to amalgamate. In the alternative, the defendant contends that if the CEO contract was repudiated the plaintiff failed to accept the repudiation and, if he did accept repudiation, failed to mitigate his loss.

The court found that the CEO contract could not be transferred from RDC to the defendant under s 22(6)(c) or (d). The court also found that the CEO contract was not frustrated as a matter of law. The court found that the defendant had failed to establish that the plaintiff acted unreasonably in refusing to accept the offer of the Economic Development Manager (EDM) position and that the plaintiff was not required to lower his sights in seeking alternative employment. The court awarded the plaintiff damages in the amount of $304,987.

Orders