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 2018DIVISION:
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, citedCOUNSEL:
P Hackett for the appellant
D D Keane for the respondentSOLICITORS:
Go To Court Lawyers for the appellant
Lander & Rogers Lawyers for the respondent
SOFRONOFF P: This is an appeal against an order for summary judgment.
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.
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 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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