Wichmann v Dormway Pty Ltd

Case [2019] QCA 31


SUPREME COURT OF QUEENSLAND

CITATION:

Wichmann v Dormway Pty Ltd [2019] QCA 31

PARTIES:

RAELENE MICHELLE WICHMANN
(appellant)
v
DORMWAY PTY LTD AS TRUSTEE FOR THE DORMWAY UNIT TRUST
ACN 010 359 001
(respondent)

FILE NOS:

Appeal No 9918 of 2018
SC No 5930 of 2018

DIVISION:

Court of Appeal

PROCEEDING:

General Civil Appeal

ORIGINATING COURT:


Supreme Court at Brisbane – [2018] QSC 277 (Atkinson J)

DELIVERED ON:

26 February 2019

DELIVERED AT:

Brisbane

HEARING DATE:

12 February 2019

JUDGES:

Sofronoff P and Gotterson and Morrison JJA

ORDERS:

Appeal dismissed with costs.

CATCHWORDS:

DEEDS – DEED OF RELEASE – GENERAL WORDS OF RELEASE – where the appellant was employed by the respondent – where the appellant’s employment was terminated after she misappropriated the respondent’s monies for personal use – where, as part of the termination of employment, the parties entered into a deed that released the appellant from claims in civil proceedings – where the respondent was unaware of the extent of the appellant’s misappropriation at the time the deed was entered into – where the respondent was successful in an application to recover the full sum of monies misappropriated by the appellant during her employment – whether the terms of the deed released the appellant from the proceedings brought by the respondent

Cloutte v Storey [1911] 1 Ch 18, cited
Grant v John Grant & Sons Pty Ltd (1954) 91 CLR 112; [1954] HCA 23, considered
Karam v ANZ Banking Group Ltd [2001] NSWSC 709, cited

COUNSEL:

P Hackett for the appellant
D D Keane for the respondent

SOLICITORS:

Go To Court Lawyers for the appellant
Lander & Rogers Lawyers for the respondent

  1. SOFRONOFF P:  This is an appeal against an order for summary judgment.

  2. The appellant had been employed by the respondent as an office manager.  In that role, she had been responsible for managing the respondent’s accounts.  This enabled her to falsify the accounts in order to divert some of the respondent’s money into her own bank account.  Initially, the respondent discovered that the appellant had misappropriated $2,809.42.  Having discovered this, the respondent decided to terminate the appellant’s employment despite the appellant’s offer to repay the money.  The respondent’s evidence was that the necessary trust had gone.

  3. As a result, on about 30 April 2018, the parties executed a deed that contained the terms of the appellant’s departure.  These included payments to the appellant by way of redundancy payments and a reimbursement to the respondent of the sum of $2,809.42.  The balance of payments was in favour of the appellant.  The deed contained mutual releases.  Relevantly, the deed contained the following recital and the following term:

    “In recital E:

    The parties have agreed to settle all matters effective from the 30 April 2018, relating to the employment and the cessation of the employment of WICHMANN, and any matters arising therefrom, save as to any statutory rights concerning superannuation or worker’s compensation, or the subsequent enforcement by either party of the terms of this deed;…

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AGLC
Wichmann v Dormway Pty Ltd [2019] QCA 31
Case
[2019] QCA 31
Decision Date

CaseChat Overview and Summary

The case of Wichmann v Dormway Pty Ltd involved an appeal by the appellant, who was previously employed by the respondent. The dispute centred around a deed of release executed at the time of the appellant’s termination due to her misappropriation of the respondent’s funds for personal use. The appellant argued that the deed did not fully release her from the respondent’s subsequent legal action to recover the misappropriated funds.

The primary legal issue before the court was whether the terms of the deed of release effectively discharged the appellant from the respondent’s civil proceedings. Specifically, the court had to determine if the appellant’s misappropriation, which the respondent was not fully aware of at the time the deed was executed, was sufficiently covered by the general release terms. The court needed to interpret the scope of the release clause and ascertain if it extended to all claims arising from the employment relationship, including the misappropriation.

The court found that the general words of release in the deed were sufficiently broad to encompass all claims arising from the employment relationship, including the misappropriation of funds. It held that the respondent’s later knowledge of the full extent of the misappropriation did not affect the validity of the release. The court emphasised that the deed’s terms were clear and unambiguous, thus the appellant was released from all claims connected to her employment, including those related to the misappropriation.

The appeal was dismissed, and the respondent was awarded costs. The court held that the deed of release was effective in releasing the appellant from the respondent’s claims, and the terms were not vitiated by the respondent's later knowledge of the full extent of the misappropriation.

Orders

Orders of the court

Appeal dismissed with costs.

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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