Concut Pty Ltd v Worrell and Another
[2000] HCA 64(2000) 176 ALR 693
Concut Pty Ltd
vWorrell and Another
Judges:
Gleeson CJ
Gaudron J
McHugh J
Gummow J
Kirby J
Subject References:
Employment
Contract
Oral contract of employment and subsequent written contract
Whether second contract terminated and replaced first contract
Whether second contract removed or compromised employer's right to dismiss employee
Whether duty on employee to disclose past faults.
Employment
Unfair dismissal
Employer not aware of misconduct at time of summary dismissal
Whether misconduct available to employer to resist action for damages for wrongful dismissal.
Contract
Agreement
Oral contract of employment and subsequent written contract
Whether second contract terminated and replaced first contract.
Legislative References:
Trade Practices Act 1974 (Cth) - 52
Industrial Relations Act 1971 (UK) - The Act
Case References:
Coulton v Holcombe (1986) - 162 CLR 1; 65 ALR 656
Griffin v London Bank of Australia Ltd - (1919) 19 SR (NSW) 154
Gordon & Gotch (Australasia) Ltd v Cox (1923) - 31 CLR 370
Byrne v Australian Airlines Ltd (1995) - 185 CLR 410; 131 ALR 422
Stratton v Illawarra County Council - [1979] 2 NSWLR 701
Meek v Port of London Authority - [1918] 2 Ch 96
Stocznia Gdanska SA v Latvian Shipping Co - 1 WLR 574; [1998] 1 AllER 883
Gilbert-Ash (Northern) Ltd v Modern Engineering (Bristol) Ltd - [1974] AC 689
Holland v Wiltshire (1954) - 90 CLR 409
Taylor v Raglan Developments Pty Ltd - [1981] 2 NSWLR 117
Sterling Engineering Co Ltd v Patchett - [1955] AC 534
Scally v Southern Health and Social Services Board - [1992] 1 AC 294
Malik v Bank of Credit and Commerce International SA (in liq ) - [1998] AC 20
Lever Brothers Ltd v Bell - [1931] 1 KB 557
Demagogue Pty Ltd v Ramensky (1992) - 39 FCR 31
Blyth Chemicals Ltd v Bushnell (1933) - 49 CLR 66
Adami v Maison de Luxe Ltd (1924) - 35 CLR 143
Shepherd v Felt and Textiles of Australia Ltd (1931) - 45 CLR 359
Official Trustee in Bankruptcy v Concut Pty Ltd - [1999] QCA 3
Employment Secretary v Associated Society of Locomotive Engineers and Firemen (No 2) - [1972] 2 QB 455
Vine v National Dock Labour Board - [1957] AC 488
Hill v C A Parsons Ltd - [1972] Ch 305
Automatic Fire Sprinklers Pty Ltd v Watson (1946) - 72 CLR 435
Qantas Airways Ltd v Christie (1998) - 193 CLR 280; 152 ALR 365
Ryder v Foley (1906) - 4 CLR 422
Fletcher v Nott (1938) - 60 CLR 55
Kaye v Attorney-General (Tas ) (1956) - 94 CLR 193
Reedman v Hoare (1959) - 102 CLR 177
Coutts v Commonwealth (1985) - 157 CLR 91; 59 ALR 699
English and Australian Copper Co Ltd v Johnson (1911) - 13 CLR 490
Independent Management Resources Pty Ltd v Brown - [1987] VR 605
Consul Development Pty Ltd v DPC Estates Pty Ltd (1975) - 132 CLR 373
Timber Engineering Co Pty Ltd v Anderson - [1980] 2 NSWLR 488
Printing Industry Employees Union of Australia v Jackson & O'Sullivan Pty Ltd (1957) - 1 FLR 175
Boston Deep Sea Fishing and Ice Co v Ansell - (1888) 39 Ch D 339
Clouston & Co Ltd v Corry - [1906] AC 122
Re Rubel Bronze and Metal Co Ltd and Vos - [1918] 1 KB 315
Orr v University of Tasmania (1957) - 100 CLR 526
Lucy v Commonwealth (1923) - 33 CLR 229
Automatic Fire Sprinklers Pty Ltd v Watson (1946) - 72 CLR 435
Pan Foods Co Importers & Distributors Pty Ltd v Australian and New Zealand Banking Group Ltd (2000) - 170 ALR 579; 74 ALJR 791
Colquhoun v Brooks - (1888) 21 QBD 52
Gill v Colonial Mutual Life Assurance Society Ltd - [1912] VLR 146
Bell v Lever Brothers Ltd - [1932] AC 161
Sybron Corp v Rochem Ltd - [1984] Ch 112
Suggested reading:
Hearing date: 20 June 2000
Judgment date: 14 December 2000
Canberra
Order
(1) Appeal allowed with costs.
(2) Set aside orders 1 and 2 made by the Court of Appeal of the Supreme Court of Queensland on 5 February 1999 and in place thereof, order that the appeal to that court be dismissed with costs.
[1932] AC 161.
(1982) 150 CLR 310 at 319; 41 ALR 255 at 260-1. See also Coulton v Holcombe (1986) 162 CLR 1 at 7-8 ; 65 ALR 656 at 659-61.
[1932] AC 161 at 227-8.
Griffin v London Bank of Australia Ltd (1919) 19 SR (NSW) 154 at 161 per Cullen CJ.
See the extract from the judgment of the Full Court of the Supreme Court of Victoria in the report of Gordon & Gotch (Australasia) Ltd v Cox (1923) 31 CLR 370 at 377, and the observations by Isaacs J at 380-1.
Byrne v Australian Airlines Ltd (1995) 185 CLR 410 ; 131 ALR 422 .
See eg Stratton v Illawarra County Council [1979] 2 NSWLR 701 at 705-6.
(1984) 156 CLR 41 at 96-7; 55 ALR 417 at 454-5.
[1980] 2 NSWLR 488.
(2000) 172 ALR 346 at 350-1 [22]; 74 ALJR 1094 at 1098.
(2000) 172 ALR 346 at 351 [23]; 74 ALJR 1094 at 1098. See also (2000) 172 ALR 346 at 360 [81], 362 [95], 363 [100]; 74 ALJR 1094 at 1105, 1106, 1107 per Callinan J.
(1957) 98 CLR 93 at 143-4.
cf Meek v Port of London Authority [1918] 2 Ch 96.
(1957) 98 CLR 93 at 144.
(1957) 98 CLR 93 at 135. See also at 122-3 per Williams J.
(1987) 10 NSWLR 468 at 487.
Byrne v Australian Airlines Ltd (1995) 185 CLR 410 at 449-50 ; 131 ALR 422 at 449-50.
Stocznia Gdanska SA v Latvian Shipping Co [1998] 1 WLR 574 at 585 ; [1998] 1 All ER 883 at 893; Gilbert-Ash (Northern) Ltd v Modern Engineering (Bristol) Ltd [1974] AC 689 at 717.
Holland v Wiltshire (1954) 90 CLR 409 at 415-16; Taylor v Raglan Developments Pty Ltd [1981] 2 NSWLR 117 at 135.
(1886) 17 QBD 536 at 539. See also the discussion by Viscount Simonds in Sterling Engineering Co Ltd v Patchett [1955] AC 534 at 543-4 and in Lister v Romford Ice and Cold Storage Co Ltd [1957] AC 555 at 575-6 ; [1957] 1 All ER 125 at 132-3; cf Scally v Southern Health and Social Services Board [1992] 1 AC 294 at 306-7 ; [1991] 4 All ER 563 at 571-2; Malik v Bank of Credit and Commerce International SA (in liq ) [1998] AC 20 at 34-5, 45-6; [1997] 3 All ER 1.
(1933) 49 CLR 66 .
(1933) 49 CLR 66 at 72-3.
(1933) 49 CLR 66 at 81.
United States Surgical Corp v Hospital Products International Pty Ltd [1982] 2 NSWLR 766 at 799; affirmed (1984) 156 CLR 41 .
Finn, Fiduciary Obligations , 1977, p 267. See also Gurry, Breach of Confidence , 1984, pp 177-9; Dean, The Law of Trade Secrets , 1990, pp 181-3.
(1931) 45 CLR 359 at 373, 377-8.
(1931) 45 CLR 359 at 377.
[1932] AC 161 at 227-8.
The text of the agreements is set out in the speech of Lord Blanesburgh [1932] AC 161 at 178-9.
See the judgment of Wright J, Lever Brothers Ltd v Bell [1931] 1 KB 557 at 567-9.
[1931] 1 KB 557 at 560-1.
[1932] AC 161 at 228.
[1932] AC 161 at 217. At trial, the defendants had admitted liability to account for their profits on certain private dealings in breach of duty and their payments into court on that account were accepted: [1931] 1 KB 557 at 560, 574.
[1932] AC 161 at 218.
[1932] AC 161 at 222.
[1932] AC 161 at 223-4.
[1932] AC 161 at 227.
[1999] 2 All ER 1005 at 1015.
cf McCarry, "The Employee's Right to Silence" (1983) 57 ALJ 607; Collins, "Implied Duty to Give Information During Performance of Contracts" (1992) 55 Modern Law Review 556 at 559.
(1956) 95 CLR 235 at 243.
(1956) 95 CLR 235 at 243-4. See also Taylor v Johnson (1983) 151 CLR 422 at 432 ; 45 ALR 265 at 271-2.
Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31 ; 110 ALR 608 .
This finding is not challenged in this appeal.
Blyth Chemicals Ltd v Bushnell (1933) 49 CLR 66 at 72-3, 81-2. See also Adami v Maison de Luxe Ltd (1924) 35 CLR 143 at 155-6.
Shepherd v Felt and Textiles of Australia Ltd (1931) 45 CLR 359 at 370-1, 373, 377-8, 391.
[1932] AC 161.
(1931) 45 CLR 359 .
(1931) 45 CLR 359 at 372.
Reasons of Gleeson CJ, Gaudron and Gummow JJ at [1]-[8].
Official Trustee in Bankruptcy v Concut Pty Ltd [1999] QCA 3.
McMurdo P and Thomas JA; Shepherdson J dissenting.
cf Griffin v London Bank of Australia Ltd (1919) 19 SR (NSW) 154 at 161; Employment Secretary v Associated Society of Locomotive Engineers and Firemen (No 2 ) [1972] 2 QB 455 at 491 ; [1972] 2 All ER 949 at 966.
Vine v National Dock Labour Board [1957] AC 488 at 500 ; [1956] 3 All ER 939 at 943-4; Hill v C A Parsons Ltd [1972] Ch 305 at 314 ; [1971] 3 All ER 1345 at 1349-50.
See eg Automatic Fire Sprinklers Pty Ltd v Watson (1946) 72 CLR 435 at 453-6 concerning the effect of National Security (Man Power) Regulations (Cth) on the termination of employment; see Hill v C A Parsons Ltd [1972] Ch 305 at 315 ; [1971] 3 All ER 1345 at 1350-1 concerning the effect of the Industrial Relations Act 1971 (UK).
cf Qantas Airways Ltd v Christie (1998) 193 CLR 280 at 287, 297 and 328-30; 152 ALR 365 at 368-9, 376-7, 402-3 where relevant provisions of federal legislation controlling termination of an employee's employment are set out.
cf Ryder v Foley (1906) 4 CLR 422 at 435-6, 443, 449; Fletcher v Nott (1938) 60 CLR 55 at 64, 70-1, 73-4, 77; Kaye v Attorney-General (Tas ) (1956) 94 CLR 193 at 199, 203; Reedman v Hoare (1959) 102 CLR 177 at 181, 185; Coutts v Commonwealth (1985) 157 CLR 91 at 98-9, 105, 119; 59 ALR 699 at 703-4, 708, 719.
Blyth Chemicals Ltd v Bushnell (1933) 49 CLR 66 at 81-2.
Boston Deep Sea Fishing and Ice Co v Ansell (1888) 39 Ch D 339 at 357-8, 362-4; English and Australian Copper Co Ltd v Johnson (1911) 13 CLR 490 ; Shepherd v Felt and Textiles of Australia Ltd (1931) 45 CLR 359 .
cf Independent Management Resources Pty Ltd v Brown [1987] VR 605 at 612.
Wells v Concut Pty Ltd (DC(Qld), 10 April 1997, unreported), pp 7, 8, 14 per Trafford-Walker DCJ.
cf Consul Development Pty Ltd v DPC Estates Pty Ltd (1975) 132 CLR 373 at 392; Timber Engineering Co Pty Ltd v Anderson [1980] 2 NSWLR 488; Greig and Davis, The Law of Contract , 1987, p 1365; Glover, Commercial Equity : Fiduciary Relationships , 1995, pp 110-11, [4.11].
Blyth Chemicals Ltd v Bushnell (1933) 49 CLR 66 at 72-3.
Printing Industry Employees Union of Australia v Jackson & O'Sullivan Pty Ltd (1957) 1 FLR 175 .
Blyth Chemicals Ltd v Bushnell (1933) 49 CLR 66 at 82.
See Boston Deep Sea Fishing and Ice Co v Ansell (1888) 39 Ch D 339 at 364.
Such as a single act in no way affecting an employer's business, eg an isolated instance of intoxication in festive circumstances as distinct from conduct interfering in the ability to render due service: Clouston & Co Ltd v Corry [1906] AC 122 at 129 (PC). See also Griffin v London Bank of Australia Ltd (1919) 19 SR (NSW) 154 at 160-1; Gordon & Gotch (Australasia) Ltd v Cox (1923) 31 CLR 370 .
Re Rubel Bronze and Metal Co Ltd and Vos [1918] 1 KB 315 at 320-1; Adami v Maison De Luxe Ltd (1924) 35 CLR 143 at 151, 155; Shepherd v Felt and Textiles of Australia Ltd (1931) 45 CLR 359 at 370, 372-3; Orr v University of Tasmania (1957) 100 CLR 526 at 531.
Shepherd v Felt and Textiles of Australia Ltd (1931) 45 CLR 359 at 373, 377; Blyth Chemicals Ltd v Bushnell (1933) 49 CLR 66 at 80.
See Lucy v Commonwealth (1923) 33 CLR 229 at 237, 248, 253; Automatic Fire Sprinklers Pty Ltd v Watson (1946) 72 CLR 435 at 451, 465, 476.
cf Pan Foods Co Importers & Distributors Pty Ltd v Australian and New Zealand Banking Group Ltd (2000) 170 ALR 579 at 582-3 [14] ; 74 ALJR 791 at 793.
Notably cll 2, 8, 11, 13 as described in the reasons of Gleeson CJ, Gaudron and Gummow JJ at [21].
cf Houssein v Under Secretary, Department of Industrial Relations and Technology (NSW ) (1982) 148 CLR 88 at 94 ; 38 ALR 577 at 581-2: it is "a valuable servant, but a dangerous master"; Colquhoun v Brooks (1888) 21 QBD 52 at 65.
Gill v Colonial Mutual Life Assurance Society Ltd [1912] VLR 146; Bell v Lever Brothers Ltd [1932] AC 161 at 227-8; Sybron Corp v Rochem Ltd [1984] Ch 112 at 121, 123, 128, 130; McCarry, "The Employee's Right to Silence" (1983) 57 ALJ 607 at 612; cf Collins, "Implied Duty to Give Information During Performance of Contracts" (1992) 55 Modern Law Review 556.
Reasons of Gleeson CJ, Gaudron and Gummow JJ at [39].
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