Whelan v Cigarette and Gift Warehouse Pty Ltd

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FEDERAL COURT OF AUSTRALIA

Whelan v Cigarette & Gift Warehouse Pty Ltd [2017] FCA 695

File number: QUD 987 of 2015
Judge: LOGAN J
Date of judgment: 26 April 2017
Catchwords:

PRACTICE AND PROCEDURE – application for freezing orders r 7.32 Federal Court Rules 2011 (Cth) – criteria that must be satisfied for the court to grant a freezing order – applicant must establish ‘a good arguable case’ on a prospective cause of action – freezing order not granted

INDUSTRIAL LAW – employment – costs – whether security for costs order appropriate – where s 570 of Fair Work Act 2009 (Cth) limits availability of costs in proceedings in relation to a matter under the Act – where proceedings involve actions under the Fair Work Act 2009 (Cth) and at common law – whether Fair Work Act 2009 (Cth) limits availability of costs for whole of proceedings – relevant factors – Fair Work Act 2009 (Cth), s 570 – indemnity basis – “unreasonable act or omission”

Legislation:

Competition and Consumer Act 2010 (Cth)

Fair Work Act 2009 (Cth) ss 340, 545, 570

Workplace Relations Act 1996 (Cth)

Cases cited:

Colgate-Palmolive Co v Cussons Pty Ltd (1993) 46 FCR 225

Construction, Forestry, Mining and Energy Union v Clarke (2008) 170 FCR 574

Insolvency Guardian Melbourne Pty Ltd v Carlei (2016) 111 ACSR 236

Melbourne Stadiums Ltd v Sautner (2015) 229 FCR 221

Date of hearing: 26 April 2017
Registry: Queensland
Division: Fair Work Division
National Practice Area: Employment & Industrial Relations
Category: Catchwords
Number of paragraphs: 24
Counsel for the Applicant: Mr E White
Counsel for the Respondents: Mr P Roney QC
Solicitor for the Respondents: Nyst Legal

ORDERS

QUD 987 of 2015
BETWEEN:

ANDREW WHELAN

Applicant

AND:

CIGARETTE & GIFT WAREHOUSE PTY LTD
ACN 055 030 567

First Respondent

TRAVERS BEYNON

Second Respondent

AND BETWEEN:

CIGARETTE & GIFT WAREHOUSE PTY LTD
ACN 055 030 567

Cross-Claimant

AND:

ANDREW WHELAN

Cross-Respondent

JUDGE:

LOGAN J

DATE OF ORDER:

26 APRIL 2017

THE COURT ORDERS THAT:

1.The amended interlocutory application be dismissed.

2.The applicants on the application (respondents in the substantive proceeding) pay the costs of the respondent to that application (applicant in the substantive proceeding) to be taxed, if not agreed.

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


REASONS FOR JUDGMENT
(REVISED FROM TRANSCRIPT)

LOGAN J:

  1. Mr Andrew Whelan has instituted proceedings in this Court under the Fair Work Act 2009 (Cth) (Fair Work Act). He claims as to the proceeding as originally constituted that Cigarette & Gift Warehouse Pty Ltd (Cigarette & Gift Warehouse) contravened s 340 of the Fair Work Act by terminating his employment with that company on the basis of a sham reason. His claim is that he was dismissed because he had refused a request that his wife sign a non-disclosure agreement after attending a party at the company’s managing director’s home. In the alternative, he alleges that Cigarette & Gift Warehouse, by its agent Mr Beynon…

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Details
Case
[2017] FCA 695
Decision Date

CaseChat Overview and Summary

The applicant in this case, Whelan, sought a freezing order and a security for costs order against the respondent, Cigarette and Gift Warehouse Pty Ltd. The application was heard in the Federal Circuit Court of Australia. The applicant’s primary concern was the respondent’s potential dissipation of assets, which could impact the applicant's ability to recover any judgment debt in a substantive proceeding. Additionally, the applicant sought a security for costs order, arguing that the respondent's conduct warranted such a measure.

The court was required to determine whether the applicant had established a good arguable case that would justify a freezing order under Rule 7.32 of the Federal Court Rules 2011. The court also had to consider whether a security for costs order was appropriate, given the interplay between the Fair Work Act 2009 (Cth) and common law proceedings, and the potential impact of Section 570 of the Fair Work Act on the availability of costs.

The court found that the applicant had not established a good arguable case for the freezing order, as the applicant's evidence did not sufficiently demonstrate a likelihood of the respondent dissipating assets. Regarding the security for costs order, the court held that Section 570 of the Fair Work Act limited the availability of costs for the entire proceeding, but this did not automatically preclude the possibility of a security for costs order in certain circumstances. However, the court determined that the applicant's conduct did not warrant such an order. Consequently, both applications were dismissed.

The court ordered that the respondents on the application (the respondents in the substantive proceeding) pay the costs of the respondent to the application (the applicant in the substantive proceeding). These costs were to be taxed if not agreed upon.

Orders

Orders of the court

1. The amended interlocutory application be dismissed.

2. The applicants on the application (respondents in the substantive proceeding) pay the costs of the respondent to that application (applicant in the substantive proceeding) to be taxed, if not agreed.

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

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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