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[1998] VSCA 52
Court of Appeal (Vic)
1998-09-30
ORMISTON, PHILLIPS and KENNY, JJ.A.
Original judgment source is linked above.
Industrial Relations Law - Compensation awarded by Industrial Relations Court for termination of employment - Subsequent action for damages in Magistrates' Court - Whether proceedings should be stayed - Whether unreasonable not to raise causes of action in Industrial Relations Court - Port of Melbourne Authority v. Anshun Pty. Ltd. [1981] HCA 45; (1981) 147 C.L.R. 589 - Industrial Relations Act 1988 (Cth.) ss.170DE, 170EA, 170ED, 170EE - Magistrates' Court Act 1989 (Vic.) s.109.
"In most cases the test that seems to be most satisfactory, and the one that accords most nearly with what has been said on the subject in this Court, is it seems to me to look at the consequences of the order itself and to ask does it finally determine the rights of the parties in a principle cause pending between them. It is never enough to ask simply does the order finally determine the actual application or matter out of which it arises; because, subject to the possibility of an appeal, every order does that, unless it be an order that is expressly declared to be subject to variation."
See also Licul v. Corney [1976] HCA 6; (1976) 180 C.L.R. 213, Carr v. Finance Corporation of Australia Ltd. (No.1) [1981] HCA 20; (1981) 147 C.L.R. 246, especially at 255-6 per Mason, J. In Webb v. Hanlon [1939] HCA 8; (1939) 61 C.L.R. 313, Mr. Hanlon had appealed to the Supreme Court of Queensland against an order of an Elections Tribunal declaring that he was not duly elected at an election for legislative assembly. The order of the Supreme Court remitted the matter to the tribunal judge to deal with according to law, stating at the same time that the petition of Mr. Webb should be dismissed. The order of the Supreme Court was regarded as interlocutory for the purposes of appeal. In Licul v. Corney the parties, in a personal injury action in the County Court, were in dispute over service of the initiating process. Orders were made in favour of the plaintiffs at first instance and the defendant appealed as of right to the Supreme Court. The Full Court set aside the orders made below. When the plaintiffs sought to appeal to the High Court, the appeal was held incompetent for want of leave.
"An employer must not terminate an employee's employment unless there is a valid reason, or valid reasons, connected with the employee's capacity or conduct or based on the operational requirements of the undertaking, establishment or service."
The issues to be determined by the Judicial Registrar were (1) whether Kinna was an employee of Gibbs, the McAllions or McAllion Lloyd; (2) if so, whether his employment was terminated by the relevant employer; and (3) if so, whether the employer had a valid reason for terminating his employment. In a decision delivered on 21 February 1997, the Judicial Registrar found that Gibbs had agreed to pay Kinna $1,000 per week for full-time work; that upon its incorporation on 14 June 1996, McAllion Lloyd became substituted as Kinna's employer in the place of Gibbs; and that McAllion Lloyd had, without valid reason, terminated Kinna's employment contrary to s.170DE(1) of the IRA. The Judicial Registrar found that it was appropriate to order that McAllion Lloyd pay Kinna compensation representing four weeks wages at a rate of $1,000 per week, a sum of $4,000. This reflected, so the Registrar held, "the value of the chance that the applicant [Kinna] should have had to negotiate his future with the project in August had the company been acting in good faith". The Registrar went on to say:
"The company, as at the middle of August, owed the applicant $6,000 as admitted by Mr. Gibbs to the applicant, and a further $2,000 for work in the first two weeks of August. These sums are not, for reasons that did not emerge, claimed in these proceedings. They should have been."
No order was made against the company in respect of those unclaimed sums. Nor was any order made against Gibbs, it having been found that he was not Kinna's employer at the time of the termination of employment. The Judicial Registrar granted a stay of 21 days. There was no appeal.
"The Plaintiff will give credit at the trial of the proceeding for $4000.00 already paid to him, for the $8000.00 claimed pursuant to breach of contract, and for the four weeks ordered by the Industrial Relations Court to be paid by the Plaintiff by way of damages by reference to reasonable notice."
"1. Appeal allowed with costs. 2. Costs certificate granted under the Appeal Costs Fund with certification for Senior Counsel. 3. Summaries of submissions to remain on file."
I shall not attempt to rehearse the reasons for decision apparently advanced by the judge at first instance. Whilst I have come to agree with his Honour in the result, I do so for quite different reasons.
"applies, except in special cases, not only to points upon which the Court was actually required by the parties to form an opinion and pronounce a judgment, but to every point which properly belonged to the subject of the litigation, and which the parties, exercising reasonable diligence, might have brought forward at the time."
This statement of principle was accepted by the High Court in Anshun's Case. The majority (Gibbs, C.J., Mason, J. and Aickin, J.) would have it that the principle as stated in Henderson v. Henderson applies against a party asserting a cause of action in a subsequent proceeding if it appears that it was unreasonable for that party to have refrained from raising the cause of action in an earlier proceeding. The majority in Anshun's Case rested their conclusion that the Port of Melbourne Authority was estopped from pursuing its claim in a second action upon the basis that "it was unreasonable for the Authority to refrain from raising its case of indemnity for disposition in the first action" : 147 C.L.R. at 604. Whilst the other members of the Court, Murphy and Brennan, JJ., agreed with the majority in the result, they did not adopt the criterion of unreasonableness. Murphy, J. based his decision on the potential for inconsistency which would arise were the second proceeding to continue. Brennan, J. concluded that the relevant cause of action had merged in the orders made in the previous proceeding, the appellant's claim to an indemnity being barred by the contribution orders in the earlier proceeding which were inconsistent with that claim.
"It has generally been accepted that a party will be estopped from bringing an action which, if it succeeds, will result in a judgment which conflicts with an earlier judgment. ... By 'conflicting' judgments we include judgments which are contradictory, though they may not be pronounced on the same cause of action. It is enough that they appear to declare rights which are inconsistent in respect of the same transaction."
"... there are a variety of circumstances, some referred to in the earlier cases, why a party may justifiably refrain from litigating an issue in one proceeding yet wish to litigate the issue in other proceedings e.g. expense, importance of the particular issue, motives extraneous to the actual litigation, to mention but a few."
See also Boles v. Esanda Finance Corporation Ltd. (1989) 18 N.S.W.L.R. 666, at 673; and Ling v. Commonwealth [1996] FCA 1646; (1996) 68 F.C.R. 180.
"(a) a claim for an amount of not more than $10,000 or such greater amount as the regulations may from time to time prescribe; or (b) a claim that the termination of an employee's employment was unlawful, or that the proposed termination of an employee's employment would be unlawful, whether because of the Act or any other law (including an unwritten law) of the Commonwealth or of a State or Territory".
"A party to a proceeding (including an appeal) in a matter arising under this Act shall not be ordered to pay costs incurred by any other party to the proceeding unless the first-mentioned party instituted the proceeding vexatiously or without reasonable cause."
By virtue of s.347(2) costs includes "all legal and professional costs and disbursements and expenses of witnesses". A provision of this kind is well suited to a proceeding for statutory relief of the kind made by the respondent which is to be conducted "(a) without undue formality; and (b) with regard to the need to avoid unnecessary cost to the parties ... ": Industrial Relations Court Rules, Order 75, Rule 2. It may, possibly, work an injustice in other circumstances. The respondent was entitled to bear in mind that he would not have secured payment of his costs in relation to matters within the accrued jurisdiction of the Court, even if successful and even if those matters added to the length and expense of the litigation: see Bostik (Australia) Pty. Ltd. v. Georgevski (No.2) (1992) 36 F.C.R. 439 and Townsend v. Australian Information Media Pty. Ltd. (1997) 78 I.R. 321.
Gibbs & McAllion Lloyd Pty Ltd
Kinna [1998] VSCA 52
(1996) 65 IR 253