Brown v Deloitte Touche Tohmatsu
[2020] FCA 1747
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2020-12-04
Before
Stewart J
Source
Original judgment source is linked above.
Judgment (11 paragraphs)
- Paragraphs [28] to [42] and the words "and 42" in paragraph [43] of the statement of claim filed on 21 July 2020 are struck out.
- The applicant has leave and is directed to amend the statement of claim by deleting the indirect discrimination cause of action in paragraphs [57] to [59] of the statement of claim and making such consequential amendments as may follow from that deletion.
- The first respondent's interlocutory application filed on 17 September 2020 is otherwise dismissed.
- The costs are reserved. Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Introduction 1 The applicant, Mr Brown, commenced this proceeding by filing an originating application and a statement of claim on 21 July 2020. The claims that he asserts relate to the circumstances in which he left his position of Risk and Reputation Leader at Deloitte Onch Audit LLC, based in Mongolia, and, on 16 June 2014, entered into a deed whereby he became a non-equity partner (or salary partner) of the first respondent, Deloitte Touche Tohmatsu, in Australia. The second respondent, Mr Deutsch, is pleaded to be a partner of Deloitte Touche and its chief executive officer. 2 The material circumstances of Mr Brown leaving Deloitte Onch and joining Deloitte Touche as a partner include that he was at that time 58 years of age and, unbeknown to him, Deloitte Touche has had a retirement policy since about November 2013 that requires partners to retire in or around May following their 62nd birthday. Although it is not currently pleaded, Mr Brown says that he did not learn of the existence of that retirement policy until January 2019. Also not yet pleaded, but common ground, is that Mr Brown remains a partner of Deloitte Touche notwithstanding that he is now 64 years of age. He does not, however, accept that he is unaffected by the retirement policy notwithstanding that he has not (yet) been made to retire under it. As will be seen, he pleads disadvantage or prejudice as a consequence of the existence of the policy and its possible application to him. 3 Mr Brown asserts five causes of action, namely: (1) a first claim of misleading and deceptive conduct under s 18 of the Australian Consumer Law (ACL) as found in Sch 2 to the Competition and Consumer Act 2010 (Cth) relating to alleged "longevity representations" made by Deloitte Touche prior to him joining Deloitte Touche as a partner; (2) a second claim of misleading and deceptive conduct under s 18 of the ACL relating to "Rio Tinto representations" allegedly made by Deloitte Touche to a prospective client, Rio Tinto; (3) a claim of direct discrimination under the s 14 of the Age Discrimination Act 2004 (Cth) (AD Act) of Mr Brown by Deloitte Touche during his ongoing tenure as partner; (4) a claim of indirect discrimination under the s 15 of the AD Act of Mr Brown by Deloitte Touche during his ongoing tenure as partner; and (5) a claim of victimisation under s 51 of the AD Act against both Deloitte Touche and Mr Deutsch relating to a conversation between Mr Brown and Mr Deutsch. 4 Deloitte Touche applies by interlocutory application to strike out the first, second and fourth causes of action as failing to disclose a reasonable cause of action or otherwise being an abuse of the process of the court with reference to r 16.21(1)(e) and/or (f) of the Federal Court Rules 2011 (Cth). 5 Since the filing of the strike out application, Mr Brown has indicated that he does not intend to press the indirect discrimination cause of action (i.e. the fourth cause of action identified above) and that he will amend the statement of claim accordingly. It is appropriate that he is given leave and directed to make that amendment. Nothing more need be said about that cause of action. 6 It is convenient to deal with each of the remaining causes of action which are the subject of the strike out application separately. Both those causes of action plead misleading and deceptive conduct under the ACL. The relief that is sought in respect of them is set out in paragraph 43 (i.e., [SOC 43]) of the statement of claim as arising under ss 236 and 237 of the ACL as follows: a) Compensation for the loss and damage suffered by the Applicant. Particulars i) Economic loss, as set out in paragraph 27 above. ii) Non-economic loss for anxiety, distress and potential loss of reputation and embarrassment, as set out in paragraphs 27 and 42 above. b) Interest. c) Costs. d) Any other order the Court thinks fit.