[2021] ICQ 14
General information, not legal advice.
Industrial Court of Queensland
2021-08-06
Davis J
Original judgment source is linked above.
INDUSTRIAL LAW - QUEENSLAND - OFFENCES - PENALTIES AND ORDERS - COSTS - DAMAGES - where the Appellant ('Ms Golding') was employed by the Second Respondent ('The Laundry Chute') for a period of 14 months - where The Laundry Chute was controlled by the First Respondent ('Mr Sippel') - where Mr Sippel sexually harassed and discriminated against Ms Golding during her employment at The Laundry Chute - where Ms Golding suffered psychological injuries resulting from the sexual harassment and discrimination to which she was subjected - where Ms Golding commenced compensation proceedings in the Queensland Industrial Relations Commission ('the QIRC') against Mr Sippel for contravention of the Anti-Discrimination Act 1991 - where Ms Golding was awarded compensation by the QIRC - where Ms Golding sought costs in a fixed sum - where Ms Golding appealed the costs order and the quantum of compensation awarded to her by the QIRC - whether the award for economic loss and damage suffered by Ms Golding was manifestly inadequate - whether a fixed sum for costs should have been awarded
Anti-Discrimination Act (Qld), , , ,
McGregor on Damages 19th Edition, Sweet & Maxwell, Thompson Reuters, cited
Golding v Sippel and The Laundry Chute Pty Ltd [2021] QIRC 74, related
Hall v A&A Sheiban Pty Ltd [1989] FCA 72; (1989) 20 FCR 217, cited
House v The King (1936) 55 CLR 499, cited
Hughes (t/as Beesley and Hughes Lawyers) v Hill [2020] FCAFC 126; (2020) 382 ALR 231, cited
Norbis v Norbis [1986] HCA 17; (1986) 161 CLR 513, cited
Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82; (2014) 223 FCR 334, followed
Rogers v Nationwide News Pty Ltd [2003] HCA 52; (2003) 216 CLR 327, followed
Wotton v State of Queensland (No 5) [2016] FCA 1457; (2016) 157 ALD 14, cited
The respondent, Mr Sippel, appeared on his own behalf
The respondent, Mr Sippel, appeared on his own behalf
Ms Golding: Bossing can I do the work of mommy Charmaine cleaning Saturday
Ms Golding: She told me someone working to you already
Mr Sippel: I going by what Charmy say She not think u reliable She bring othe lady to work with
Mr Sippel: Maybe you give me incentive to give u job
Mr Sippel: as I can I have ur pussy and in turn give u job
Ms Golding: Are Charmaine wants give her self not me
Mr Sippel: I may have a proper job for u on Tuesday and Thursday 12 30 to 5 30 every week But u have to commit to No fucking around You must turn up I behave myself and leave u alone But u have to be reliable and work I let u know on Sat
"5. That the Respondents are to bear the Complainant's costs, to be agreed or assessed at the Magistrates Court scale. That is to occur either within 28 days after agreement, or 28 days after assessment."
"The Commission erred in law and or alternatively exceeded its jurisdiction in the following respects:
"1. That Orders 4(a), 4(b) and 4(c) of Decision in Matter Number AD/2019/82[19] be set aside.
(a) $35,980.10 for economic loss, which must be subject to appropriate taxation;
From the date of the increase of wages under the award, 20 June 2019 to 5 August 2019
Casual employee loading of 25% in accordance with the award
"[294] In Wotton v State of Queensland (No 5), 118 the principles applying to aggravated damages were considered (emphasis added):
'Aggravated damages were described by Lord Diplock in Cassell & Co Ltd v Broome [1972] UKHL 3; [1972] AC 1027 at 1124 (citing with approval the description given by Lord Devlin in Rookes v Barnard [1964] UKHL 1; [1964] AC 1129) as '[a]dditional compensation for the injured feelings of the plaintiff where his sense of injury resulting from the wrongful physical act is justifiably heightened by the manner in which or the motive for which the defendant did it.' That formulation was applied with approval by Clarke JA in the New South Wales Court of Appeal in Spautz v Butterworth [1996] NSWSC 614; 41 NSWLR 1 at 15-18, although it should be noted that the High Court has acknowledged criticism of Rookes v Barnard on other issues, notably that case's approach to exemplary damages: see Gray v Motor Accident Commission [1998] HCA 70; 196 CLR 1 at [18]- [19] (Gleeson CJ, McHugh, Gummow and Hayne JJ) and the authorities there cited, especially Uren v John Fairfax & Sons Pty Ltd [1966] HCA 40; 117 CLR 118.
Another description of the function of aggravated damages was given by Windeyer J in Uren at 149, where his Honour said that aggravated damages 'compensate the plaintiff where the harm done to him by a wrongful act was aggravated by the manner in which the act was done'. This passage was cited with apparent approval in Gray v Motor Accident Commission at [6] (Gleeson CJ, McHugh, Gummow and Hayne JJ). The plurality opinion in Gray emphasises that exemplary damages are punitive, by finding that once a person has been convicted and sentenced for conduct she or he has been punished and exemplary damages for substantially the same conduct are not available: at [40]. The character of the conduct necessary for an award of aggravated damages was described by the High Court in Triggell v Pheeney [1951] HCA 23; 82 CLR 497 at 514 as lacking bona fides, or being improper or unjustifiable.
In some cases, the aggravation comes not from conduct directly associated with or following on from the contravening conduct, but from subsequent conduct that has the same effect. In Elliott v Nanda [2001] FCA 418; 111 FCR 240 at [179]- [185], Moore J set out the kinds of additional circumstances which might justify such an award. All concerned the manner in which a respondent or defendant conducted proceedings brought against her, him or it. An example is Houda v New South Wales [2005] NSWSC 1053, in which aggravated damages of $20,000 were awarded for the way the defendant conducted its defence of the proceedings against the plaintiff.
Neither party referred the Court to any anti-discrimination cases (whether under s 46PO(4) of the AHRC Act or otherwise) in which aggravated damages had been awarded for acts of unlawful discrimination, although clearly Elliott v Nanda is such a case. In Hall v Sheiban Lockhart J (at 239-40) and French J (at 282) were prepared to assume, without deciding, that aggravated damages may be available under s 81(1)(b)(iv) of the Sex Discrimination Act.
In McIntyre v Tully (1999) 90 IR 9, an age discrimination case, Atkinson J upheld an award of aggravated damages for the way the complainant was cross-examined, saying at [25]-[26]: It has been recognised that in those category of cases where damages are awarded for hurt and humiliation, aggravated damages may be awarded because of the defendant's conduct of the case. Aggravated damages are compensatory in nature being awarded for injury to the plaintiff's feelings caused by insult, humiliation and the like (Lamb v Cotogno [1987] HCA 47; (1987) 164 CLR 1 at 8; Mafo v Adams [1970] 1 QB 548 at 558). Such injury may be exacerbated by the defendant's conduct of the case. In John v MGN Ltd [1997] QB 586 at 608, Bingham MR held that the fact that the plaintiff had been cross-examined in a wounding and insulting way could be taken into account in the assessment of damages. In false imprisonment cases, damages for an initial false imprisonment may be aggravated by persistence with the assertion of facts alleged to justify the imprisonment up to the moment when damages are assessed which continue the slur on the plaintiff's reputation ... .
There is no reason in principle why this head of damages should not be awarded in appropriate cases for unlawful discrimination when damages are awarded for distress, loss of dignity and injury to feelings ... .
The weight of authority therefore favours the view that aggravated damages may be awarded under s 46PO(4)."[28] (emphasis added by the Industrial Commissioner)
"[295] In my view, bearing in mind that the purpose of s 209(1)(b) is compensatory and in virtually identical terms to s 46PO(4),[29] I am minded to adopt a similar approach. I am wary, however, of awarding aggravated damages with respect to how a party responds to a case. The purpose of damages is to compensate for loss, not to punish. That is particularly relevant in circumstances where a Respondent is self-represented."[30]
"The primary object of an award of damages is to compensate the claimant for the harm done to him; a possible secondary object is to punish the defendant for his conduct in inflicting that harm. Such a secondary object can be achieved by awarding, in addition to the normal compensatory damages, damages which are variously called exemplary damages, punitive damages, vindictive damages or even retributory damages, and comes into play when-ever the defendant's conduct is sufficiently outrageous to merit punishment. ..."
"[269] Ms Golding's account of her symptoms is contained primarily in pages 5, 6, 11 and 12 of Dr Relan's report. Ms Golding reported that she began experiencing anxiety early in 2018, following the sexual conduct in the workplace. She explained that she would be on guard at work, and watch out for Mr Sippel's movements, so as to not be too close to him. She felt unsettled and easily agitated. She also became short-tempered, particularly at home. She would also become tearful, remain continually distressed, scared and worried about the effect of the sexual advances on her ability to continue working. She reported dreading losing her job. Over time, she reported experiencing negative and anxious thoughts, including feeling useless and suffering detriments to her self-esteem and confidence. She felt frustrated and angry at Mr Sippel, and would get easily overwhelmed. Her sleep became erratic, and she reported ruminating during the night. In October 2018, upon attending a psychologist, Ms Golding commenced a course of antidepressant medication, after experiencing dysphoric and unsettled moods."
"[289] In my view, Ms Golding's losses arising from her medical condition are not of the highest levels of severity. Her personal resilience seems to have aided her in avoiding or resisting many of the harsher effects which may arise from such conduct. She has continued to engage in courses of study, sought to socialise with friends, engaged with her children, and the like.
[290] Nevertheless, the conduct was over an extended period of time and resulted in a diagnosed medical. injury which caused Ms Golding's quality of life to suffer appreciably. In my view, her intangible losses fall with in the moderate range. The intangible losses suffered by Ms Golding, significant as they were, do not in my view lie within the categories of cases where the most significant non-financial losses have occurred. The medical evidence explains that the psychological impact of the contraventions at the time of the report included mild symptoms, and a cautiously optimistic prognosis of continued recovery." (emphasis added)
(1) This rule applies if the court or commission makes an order for costs under section 545 of the Act.
(2) The court or commission, in making the order, may have regard to -
(a) for a proceeding before the commission - the costs payable on the scale of costs for Magistrates Courts under the Uniform Civil Procedure Rules 1999, schedule 3; or
(b) for a proceeding before the full bench - the costs payable on the scale of costs for the District Court under the Uniform Civil Procedure Rules 1999, schedule 2; or
(c) for a proceeding before the court - the costs payable on the scale of costs for the Supreme Court under the Uniform Civil Procedure Rules 1999, schedule 1; or
(3) The court may order that costs be assessed by the registrar and, in assessing costs, the registrar may have regard to the Uniform Civil Procedure Rules 1999, chapter 17A."
"[308] The Complainant has not provided any evidence of their costs incurred, or what their costs would be against the Magistrates or District Court scales, beyond seeking costs fixed in the amount of $60,000. That is unfortunate, because it does not allow me to easily fix an award of costs, which is espoused to be the preferred process under Sch 2, at s 9.1"
(a) setting aside the award of $15,960.75 for economic loss;
(b) substituting as the award for economic loss the sum of $28,702.60;
(c) setting aside the award of $30,000 for general damages;
(d) setting aside the award of $5,000 for aggravated damages;
(e) substituting for the award of general damages and aggravated damages the sum of $130,000.
[2] Section 133 of the Anti-Discrimination Act 1991 provides for the vicarious liability of the employer.
[3] Golding v Sippel and The Laundry Chute Pty Ltd [2021] QIRC 74 at [78]- [79] and [150]-[151].
[6] Primary judgment, paragraphs [94]-[98].
[7] Primary judgment, paragraphs [102] and [107].
[8] Primary judgment, paragraphs [108] and [115].
[9] Primary judgment, paragraphs [116]-[118].
[10] Primary judgment, paragraph [117].
[11] Primary judgment, paragraph [125].
[12] Primary judgment, paragraph [123].
[13] Primary judgment, paragraph [122].
[14] Primary judgment, paragraphs [128] and [133].
[19] The sums awarded for general damages, aggravated damages and economic loss.
[21] Primary judgment, paragraph [234].
[22] Primary judgment, paragraph [235].
[23] Primary judgment, paragraphs [275] and [278].
[25] Primary judgment, paragraph [295].
[28] Primary judgment, paragraph [294].
[29] A reference to the Australian Human Rights Commission Act 1986 (Cth).
[30] Primary judgment, paragraph [295].
[31] Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82; (2014) 223 FCR 334 and Hall v A&A Sheiban Pty Ltd [1989] FCA 72; (1989) 20 FCR 217.
[32] 19th Edition, Sweet & Maxwell, Thompson Reuters.
[33] Primary judgment, paragraphs [271] and [273].
[34] Primary judgment, paragraph [275].
[36] Rogers v Nationwide News Pty Ltd [2003] HCA 52; (2003) 216 CLR 327.
[38] Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82; (2014) 223 FCR 334 at [76].
[39] Including Hughes (t/as Beesley and Hughes Lawyers) v Hill [2020] FCAFC 126; (2020) 382 ALR 231 and Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82; (2014) 223 FCR 334
[40] Primary judgment, paragraphs [305]-[307].
Golding
Sippel and The Laundry Chute Pty Ltd [2021] ICQ 14
(1989) 20 FCR 217
(2020) 382 ALR 231
(2014) 223 FCR 334
(1987) 164 CLR 1
(1936) 55 CLR 499
(1986) 161 CLR 513
(2003) 216 CLR 327
(1999) 90 IR 9