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
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 567First Respondent
TRAVERS BEYNON
Second Respondent
AND BETWEEN: CIGARETTE & GIFT WAREHOUSE PTY LTD
ACN 055 030 567Cross-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:
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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- Case
- [2017] FCA 695
- Decision Date
CaseChat Overview and Summary
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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