Taylor v August and Pemberton Pty Ltd

Case [2023] FCA 1313


FEDERAL COURT OF AUSTRALIA

Taylor v August and Pemberton Pty Ltd [2023] FCA 1313

File number: NSD 643 of 2021
Judgment of: KATZMANN J
Date of judgment: 31 October 2023
Catchwords:

HUMAN RIGHTS – discrimination – sexual harassment – where the applicant alleged that her employer had repeatedly engaged in sexual harassment by the conduct of its principal and sole director, by giving her numerous gifts, slapping her on the buttock, making various comments to her about her appearance orally and in text messages, declaring his affection for her and raising the matter again after she had told him she was not interested – whether all the alleged gifts were gifts or were unsolicited — whether any of the gifts were unwelcome – whether the applicant was slapped on the buttocks – whether comments and declarations of affection were made and whether they were unsolicited – whether any of the conduct amounted to “an unwelcome sexual advance or “other unwelcome conduct of a sexual nature” within the meaning of s 28A of the Sex Discrimination Act 1984 (Cth) – whether, if so, the conduct occurred in circumstances in which a reasonable person, having regard to all the circumstances, would have anticipated the possibility that the applicant would be offended, humiliated or intimidated

HUMAN RIGHTS – victimisation – where in correspondence from her lawyers the applicant informed the respondents she was proposing to make a complaint about the alleged conduct to the Australian Human Rights Commission and did in fact do so, whether, by demanding the return of certain property, threatening to report the applicant to the police if she did not do so and/or making allegations of misconduct against her, the principal of the company, through his lawyers, committed acts of victimisation contrary to s 94 of the Sex Discrimination Act

DAMAGES – where applicant exhibited symptoms of anxiety and depression after the conduct complained of and there was no dispute she had a psychiatric disorder which had not previously been diagnosed, whether respondents’ conduct caused the disorder – what damages should be awarded – whether applicant entitled to aggravated damages

Legislation:

Acts Interpretation Act 1901 (Cth) s 2C

Australian Human Rights Commission Act 1986 (Cth) ss 46PH(1B)(b), 46PO(4)

Evidence Act 1995 (Cth) s 140

Sex Discrimination Act 1984 (Cth) ss 28A, 28B, 94, 106

Federal Court Rules 2011 (Cth), rr 16.02(1)(d), 16.44

Anti-Discrimination Act 1977 (NSW) s 28A

Criminal Procedure Act 1986 (NSW) s 294

Cases cited:

Australian Securities and Investments Commission v GetSwift Ltd (Liability Hearing) [2021] FCA 1384

Banque Commerciale SA (En Liqn) v Akhil Holdings Ltd (1990) 169 CLR 279

Betfair Pty Ltd v Racing New South Wales (2010) 189 FCR 356

Briginshaw v Briginshaw (1938) 60 CLR 336

Carson v John Fairfax & Sons Ltd (1993) 178 CLR 44

Cassell & Co Ltd v Broome [1972] AC 1027

Coyne v Citizen Finance Limited (1991) 172 CLR 211

Dye v Commonwealth Securities Limited (No 2) [2010] FCAFC 118; 63 AILR ¶101–302

Ewin v Vergara (No…

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Taylor v August and Pemberton Pty Ltd [2023] FCA 1313
Case
[2023] FCA 1313
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CaseChat Overview and Summary

The case of Taylor v August and Pemberton Pty Ltd involves Ms Taylor, who brought claims of sexual harassment and victimisation against her employer, Mr Grew, and the company he controlled. The dispute was heard in the Federal Court of Australia. Ms Taylor alleged that Mr Grew, the principal and sole director of the company, had engaged in various forms of sexual harassment, including giving her numerous gifts, slapping her on the buttock, making comments about her appearance, and expressing his affection for her. She further alleged that after she informed him she was not interested, he continued with the conduct. Additionally, Ms Taylor claimed that after she indicated her intention to lodge a complaint with the Australian Human Rights Commission (AHRC), Mr Grew and the company engaged in acts of victimisation against her.

The court was required to decide whether Mr Grew's conduct amounted to "unwelcome sexual advances or other unwelcome conduct of a sexual nature" as defined in section 28A of the Sex Discrimination Act 1984 (Cth). This involved determining whether the gifts were unsolicited and unwelcome, whether the comments and declarations of affection were made and were unwelcome, and whether the conduct occurred in circumstances that a reasonable person would anticipate might offend, humiliate, or intimidate Ms Taylor. The court also needed to assess whether Mr Grew's actions after Ms Taylor indicated her intention to complain to the AHRC constituted victimisation under section 94 of the Sex Discrimination Act.

The court found that Mr Grew's conduct did amount to sexual harassment and that his actions following Ms Taylor's indication of her intention to complain constituted victimisation. The court examined the nature and extent of the gifts, the comments made about Ms Taylor's appearance, and the physical act of slapping her on the buttock. It considered the timing of the conduct, the relationship between the parties, and the context in which the conduct occurred. The court concluded that a reasonable person in Ms Taylor's position would have been offended, humiliated, or intimidated by Mr Grew's conduct.

In summary, the court found that Ms Taylor was sexually harassed and victimised by Mr Grew and the company. It awarded her damages for the harm caused by the harassment and victimisation. The court ordered that judgment be entered in favour of Ms Taylor and that the parties confer to reach an agreement on the additional relief sought. If no agreement was reached, the court set out a process for the parties to file and serve written submissions. The court also ordered the respondents to pay Ms Taylor's costs.

Orders

Orders of the court

1. Judgment be entered in favour of the applicant.

2. By 4:00pm on 21 November 2023 the parties bring in short minutes of order giving effect to the judgment.

3. In the event that the applicant presses her claim for remedies other than damages (as sought in her amended originating application):

(a) the parties confer with a view to reaching agreement;

(b) if no agreement is reached:

(i) the applicant file submissions, not exceeding 5 pages, by 4:00pm on 28 November 2023;

(ii) the respondents file and serve submissions in response, not exceeding 5 pages, by 4:00pm on 5 December 2023;

(iii) the applicant file and serve submissions in reply, not exceeding 3 pages, by 4:00 pm on 12 December 2023; and

(iv) unless the court otherwise orders, any claim for additional relief be determined on the papers.

4. The respondents pay the applicant’s costs.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

TABLE OF CONTENTS

INTRODUCTION

[1]

THE BACKGROUND FACTS

[2]

PROOF

[26]

THE LAY WITNESSES

[28]

THE SEXUAL HARASSMENT CASE

[35]

The allegations

[35]

The statutory context

[37]

The evidence

[54]

Mr Grew’s feelings for Ms Taylor

[54]

The gifts

[61]

The allegations

[61]

The extent of the dispute

[62]

2018

[70]

The Chanel coin purse

[70]

The emerald and diamond platinum ring

[73]

The Hydra ring

[82]

The white gold hammered band ring and the 5 mm and 10 mm silver rings

[86]

2019

[91]

The six stone diamond necklace

[91]

The peach sapphire and the diamond cluster necklace

[97]

The jade bangle

[107]

$2000 cash

[118]

The massage

[126]

The Gemini stud earrings

[133]

The silver signet ring

[145]

Michael Kors bomber jacket

[148]

The MECCA gift card

[161]

2020

[164]

The gold signet ring

[164]

Stuller gold earrings

[168]

Gift giving at Grew & Co

[175]

The comments

[185]

“Petite, curvy brunettes” comment

[186]

“Beautiful body” comment

[187]

“Bedroom eyes” comment

[194]

“You are perfect” comment

[199]

“How amazing you look” comment

[206]

The slap

[209]

The declaration of feelings in early January 2020

[219]

The trip to the USA

[239]

Ms Taylor’s attitude towards the trip

[243]

The purchase of the Mociun ring

[246]

Transport from Sydney airport

[253]

Ms Taylor’s condition in March 2020

[254]

The 1 June 2020 remarks

[255]

The aftermath

[280]

Request to reduce working days

[282]

Further interactions in June – July 2020

[291]

Request to take annual leave to move house

[297]

Changing passwords

[302]

Inadvertent text message criticism

[303]

Further changing of passwords

[311]

Ms Taylor’s mental state between leaving work and receiving the respondents’ response to her complaint

[312]

Findings

[313]

Some matters of context

[313]

Which of the items were gifts and/or unsolicited?

[317]

Did Mr Grew slap Ms Taylor on her buttock(s) on 23 July 2019?

[326]

Did Mr Grew make unsolicited comments to Ms Taylor about her appearance between October and December 2019 as alleged?

[337]

Did Mr Grew say to Ms Taylor the things she attributed to him in the conversations in the office on 6 January 2020 and in the car on 1 June 2020?

[342]

Which, if any, of the alleged conduct was of a sexual nature and/or a sexual advance and unwelcome?

[350]

The argument

[350]

The gifts

[352]

The slap on the buttock

[376]

The comments about Ms Taylor’s appearance

[377]

The overtures in January and June 2020

[378]

Were the circumstances in which the relevant conduct occurred such that a reasonable person would have anticipated the possibility that Ms Taylor would be offended, humiliated or intimidated?

[387]

Conclusion

[394]

THE BREACH OF CONTRACT CLAIM

[395]

THE VICTIMISATION CASE

[396]

The statutory context

[396]

The allegations

[403]

The evidence

[404]

Ms Taylor complains of sexual harassment and foreshadows the making of a complaint to the AHRC (the 28 August letter)

[407]

The response to the 28 August letter (the 4 September letter)

[409]

Ms Taylor complains to the AHRC

[421]

The respondents press their claim for the return of company property and add a new allegation (the 15 October letter)

[422]

Ms Taylor requests particulars

[424]

The respondents file their response to the AHRC complaint accusing Ms Taylor of theft and threaten to report her to the police

[427]

AHRC conciliation

[431]

The respondents request the return of confidential information (the 19 March letter)

[432]

The issues as defined by the parties

[439]

The argument

[441]

Findings

[449]

RELIEF

[455]

The power to make orders

[455]

The relief sought

[457]

The damages claim

[458]

The lay evidence

[459]

The expert evidence

[472]

Findings

[488]

General damages

[501]

Aggravated damages

[523]

Out-of-pocket expenses

[541]

Past economic loss

[549]

Future economic loss

[554]

Interest

[558]

The claim for declaratory and other relief

[559]

CONCLUSION

[560]

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Furthermore, the failure to make a contemporaneous complaint or to inform the alleged harasser at the time that the conduct in question is unwelcome does not (at least without more) signify the converse.The evidenceMr Grew’s feelings for Ms Taylor It is common ground that in early January 2020 Mr Grew declared his feelings for Ms Taylor. I will come to that in due course. But that was not a sudden development. In his evidence in chief Mr Grew testified that he started to develop some feelings for Ms Taylor over December 2019. In cross-examination, however, he clarified that that was the time he realised he had feelings for her. The two are not necessarily synonymous. It is entirely possible, if not likely, that Mr Grew’s feelings for Ms Taylor had developed earlier, perhaps much earlier, whether or not he recognised it at the time. In cross‑examination, he accepted that Ms Taylor was an attractive woman, describing her as “a pretty person”. They worked in close proximity to each other and, it seems, quickly developed a close working relationship that was pleasurable to both of them, at least for a period of time. They discussed all manner of things during working hours, some work-related, some not. It was put to Ms Taylor in cross-examination that it would not be unusual for her to seek Mr Grew’s attention by touching his shoulder or squeezing his arm. She accepted that she would tap him on the shoulder but denied squeezing his arm. In cross-examination Ms Taylor revealed that, when she would place finished products on her hand to see how they looked, Mr Grew would come over and touch her hand, without being invited to do so. Before she knew he had feelings for her, she had had no difficulty with that. Afterwards, however, it made her feel uncomfortable. On 10 August 2019, four months before Mr Grew says he started to develop feelings for Ms Taylor, Ms Vu sent the following text to Ms Taylor: Ms Taylor agreed she would not tell Mr Grew. Ms Vu conceded in cross-examination that she believed Mr Grew had feelings for Ms Taylor at this time. While this matter was not explored further, for reasons which will become apparent I have no doubt that, by this time, or indeed earlier than then, Mr Grew had feelings for Ms Taylor in that he was attracted to her and that some of the gifts were, at least in part, an expression of those feelings.The giftsThe allegations Ms Taylor alleged that between September 2018 and March 2020 Mr Grew gave Ms Taylor a total of 19 gifts, which were both unsolicited and unwelcome:(1) a quilted black Chanel coin purse;(2)a platinum ring with emeralds and diamonds (emerald and diamond platinum ring);(3)an 18-carat white gold bezel set (Hydra) ring incorporating a sapphire she had purchased (Hydra ring);(4) a 14-carat gold six stone diamond necklace (six stone diamond necklace);(5)a small round cut peach sapphire he purchased at an overseas gem fair (peach sapphire);(6)a 14-carat diamond cluster necklace incorporating the peach sapphire (diamond cluster necklace);(7) a jade bangle;(8)$2,000 in cash which he described as an early Christmas bonus to assist with her savings for purchasing a property;(9)a massage at a local shop during work hours;(10)a pair of diamond “Gemini” stud earrings (Gemini stud earrings);(11)a silver pinkie signet ring (silver signet ring);(12)a black sequinned Michael Kors bomber jacket, which retailed for $548 (Michael Kors bomber jacket);(13)a $200 MECCA gift card (MECCA gift card);(14)a 14-carat white gold hammered band ring (white gold hammered band ring);(15)a plain 5 mm silver ring (5 mm silver ring);(16)a plain 10 mm silver ring (10 mm silver ring);(17)a pair of Stuller gold hoop earrings (Stuller gold earrings);(18)a 14-carat gold pinkie signet ring (gold signet ring); and(19)a channel set diamond ring.The extent of the dispute

Decision

Reasons for decision

No submissions were made in relation to any of the other forms of relief.CONCLUSION Ms Taylor has substantially succeeded in her claims. I am satisfied that she was sexually harassed by Mr Grew and victimised for complaining about it. I am also satisfied that she suffered loss and damage caused by that conduct. Both Mr Grew and Grew & Co are liable for the loss and damage caused by the sexual harassment and Mr Grew for the loss and damage caused by the victimisation. Judgment should therefore be entered in Ms Taylor’s favour. The parties should bring in short minutes of order giving effect to the judgment in accordance with these reasons. I will also make orders to deal with the question of additional relief if the claim is maintained.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.