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[2010] FMCA 1014
Federal Magistrates Court of Australia
2010-12-24
Original judgment source is linked above.
That is, Mr and Mrs Shaw engaged in direct discrimination in relation to Ms Maxworthy and her employment.
co-workers. 9. The evidence since the date of that report, despite Ms Pertot's noting of Ms Maxworthy's motivation to overcome this problem, is that Ms Maxworthy was not offered employment by the Taree-Wingham Race Club after November 2008. Her confidence and capacity to deal with people was in issue. Her anxiety and fear obviously affected her work performance. 10. Ms Maxworthy worked at two jobs (the Lunch Spot and an Aged Care facility) prior to the Shaws taking over the business, and made attempts to accommodate the demands and pressures placed on her by the Shaws when they took over and sought to expand the business. She was initially successful, as was evidenced by the report given by Mrs Shaw of customer satisfaction. 11. The circumstances are that Mr Shaw in particular pressed the applicant to increase and change her work hours. This was done in the knowledge that to do so Ms Maxworthy would have to give up other part time employment and that she was fearful of not being able to work at all. 12. The evidence is that Ms Maxworthy suffered from a severe disability compounded by other medical conditions. She went from a person who was a functioning employee and who received satisfactory reports from customers to someone who could not maintain employment. 13. Mr Weightman also presses for an award of aggravated damages. He refers to Mrs Shaw's insulting remarks to the applicant (the deprecating and insulting reference to the colostomy bag when telling Ms Maxworthy that she was no longer employed). He relies on Hall. I note also Alexander v Home Office [1988] 2 All ER 118 ("Alexander"), Shiels v James [2000] FMCA 2 and Evans in support of this proposition. 14. Mr Weightman submits that the applicant should be awarded a substantial amount of general and aggravated damages as a consequence of the unlawful disability discrimination. 15. For current purposes, the award of damages arises from s.46PO(4) of the HREOC Act. I am satisfied, for the reasons set out above, that there has been unlawful discrimination by the respondent, Mr Shaw, towards the applicant, Ms Maxworthy. It is appropriate that an order awarding damages to her be made. There is nothing before the Court to cause the order not to be made. 16. The question however is the amount. Mr Weightman did not seek any specific amount, however his reference to Gama would place at least his starting point for consideration at $200,000. 17. Given the relevant language of s.46PO(4)(d), the damages are said to be "by way of compensation for any loss or damage suffered because of the conduct of the respondent". However, as was said in Gama (on appeal at [94]): "... the discretionary character of the remedy allows an award of an amount" by way of compensation "which does not fully compensate for the loss suffered". 18. In this assessment, I am informed by the authorities referred to by Raphael FM, his Honour's reasoning in Gama, and the Full Court's assessment of that reasoning and the other authorities referred to above. 19. Turning first to the amount by way of general damages. The respondent did discriminate against Ms Maxworthy because of her disability. The medical evidence is that this exacerbated her pre-existing anxiety and depression. Importantly, it did not cause it. That cause lies, on the evidence, in the burden imposed by Crohn's disease and Ms Maxworthy's other medical conditions, which clearly were not caused by the Shaws. 20. Having said that, however, Ms Maxworthy's anxiety and depression went from a position of being "manageable" before and immediately upon the takeover of the business by the Shaws, to such a state that she was unable to maintain employment (with another employer) following the discriminatory conduct. 21. On the other hand, there is little evidence before the Court as to the impact on Ms Maxworthy and her life beyond the impact on employment. Nor is there any medical evidence before the Court following the medical opinion provided as at September 2008. At that point, at its highest, the evidence was that Ms Maxworthy: "... notices she is less confident in her work, more anxious about making a mistake, and less outgoing with other workers, than she has in the past" (Annexure "A" to the affidavit of Ms Pertot). The reference in Ms Maxworthy's oral evidence to the impact on her social life was general and lacked sufficient detail. 22. It cannot be said that the medical evidence establishes a "severe depressive illness", as in the case of Gama (at [125]). Nor was this a case of years of abuse against Ms Maxworthy such that any severe depressive illness can be said to have resulted for that reason (Naidu v Group 4 Securitas Pty Ltd [2005] NSWSC 618; (2005) EOC 93-408). Nor for that matter is this a situation such as where $125,000 was awarded relevantly for discrimination in employment where the applicant suffered "extreme" depression, stress and anxiety "culminating in a complete breakdown and suicide attempts" (McKenna v The State of Victoria [1998] VADT 83 as referred to at [125] of Gama - Note also the amount was not altered on appeal in State of Victoria and Ors v McKenna [1999] VSC 310). 23. Ultimately, however, care must be taken not to descend into some mathematical calculation derived solely from what was done in other cases. As general tort principles apply, each case must be decided on its own merits, with specific reference to the elements in each case, and being cognisant of general community standards. 24. As against such consideration, in assessing the "tort" committed and the consequences, care must be taken to focus on the conduct of the Shaws, their actions and the impact of their actions on Ms Maxworthy, and not be swayed by a focus on Ms Maxworthy's undoubtedly difficult and serious medical conditions, for which the Shaws were plainly not responsible. 25. While this is the starting point, the principles of tort should not be applied inflexibly, as explained in Stephenson v Human Rights & Equal Opportunity Commission (1995) 61 FCR 134. 26. The Shaws exacerbated her anxiety and depression, which had an impact on her employment. While there is a reference to her being "less outgoing" in the medical evidence, this was again put in the context of her employment (her co-workers). There is little evidence as to the impact on her life beyond her employment situation. 27. The only other relevant (but highly so) evidence is that given by Ms Maxworthy orally before the Court that before the conduct by the Shaws she had "no problem" with the colostomy bag, which she wore for some years. 28. Her evidence was that, after the intervention by the Shaws, she became "mentally shy" about the bag, and did not go out socially. Ms Maxworthy is in her early forties. Such an impact on a person of that age is, in my view, of greater significance. 29. There is, therefore, evidence of an aspect of diminished self-worth, although in the non-employment context not confirmed by the psychological report. I note that such diminution was found to be a relevant factor in assessing damages in Haar v Maldon Nominees [2000] FMCA 5; (2000) 184 ALR 83 (per McInnis FM). In the circumstances of that case $3,000 was awarded for this type of non-economic loss. 30. Ms Maxworthy certainly suffered injured feelings and distress as a result of the Shaws action. In similar circumstances, Raphael FM awarded $10,000 (in 2002) for hurt, humiliation and distress suffered as a result of discriminatory conduct (Randell v Consolidated Bearing Company (SA) Pty Ltd [2002] FMCA 44). 31. In Rawcliffe v Northern Sydney Central Coast Area Health Service [2007] FMCA 931, Smith FM found that certain features in that case demanded compensation at the "upper level" of appropriate awards. This case involved a nurse suffering from epilepsy who was subjected to pressure to work a certain pattern of hours that was not commensurate in assisting with the management of his epilepsy. Such a pattern had been agreed by the employer and then withdrawn. Federal Magistrate Smith awarded $15,000 in these circumstances as general damages. 32. This, while different to the current circumstances, has some resonance. Ms Maxworthy wanted to work a certain pattern of hours, which at least constructively had been initially agreed to by the Shaws. While they were accomodating with other employees in this regard, they increased pressure on Ms Maxworthy to comply with their wishes in circumstances where this made her ability to cope increasingly difficult. 33. In all, therefore, I am satisfied that an award of general damages should be awarded at the upper end of what the community would accept as being appropriate and having regard to what has been considered as appropriate awards in these types of cases. 34. In my view, an amount of $15,000 is appropriate having regard to all the circumstances referred to above. 35. I also agree with Mr Weightman that any such amount should be increased on the basis of aggravated damages given the behaviour of Mrs Shaw in acting in an insulting manner when committing the unlawful discrimination. 36. Mrs Shaw's comments to Ms Maxworthy on 19 February 2008 (the reference to: "... that shit bag hanging off you") was not only hurtful, but even on any objective basis demeaning and greatly insulting. That is, insulting in the context of discriminating against her. 37. Mr Weightman relies on Hall. I took this to refer to Hall at 239 per Wilcox J, who cited with approval the statement of May LJ in Alexander. That analysis plainly sets a balance that needs to be achieved between the difficulty in calculating damages for hurt feelings or humiliation, where awards should not be minimal, but on the other hand should be restrained, as "excessive" awards do: "... almost as much harm to the policy and the results which it seeks to achieve as do nominal awards". 38. In my view, the balance to be achieved would result, in the current circumstances, in an increase to $20,000 for general damages in the current circumstances. As Madgwick J said in Catholic Education Office v Clarke [2004] FCAFC 197; (2004) 138 FCR 121: "Damages are compensatory and no more" (at [83]. See also [84]-[86]). I do not understand them to be punitive. 39. The applicant also seeks damages in respect of the sex discrimination. It is conceeded in submissions that the impact here was not as profound as the disabilty discrimination. Mr Weightman's request was that this amount should be derived from the understanding of the hurt, humiliation and distress that this caused Ms Maxworthy. But even on this basis I have some difficulty, on the evidence, in accepting that the issue involving her family responsibilties caused humiliation or hurt. That may have been the case, but the evidence before the Court quite clearly established that the hurt and humiliation suffered by Ms Maxworthy arose from the conduct leading to the disability, not sex, discrimination. 40. However, I am satisfied on the evidence that the issue of her family responsibilities did cause her distress. Plainly, having to balance work pressures with getting children ready for school in the morning, the concern about having to take the children to her parents house (though it is not exactly clear on the evidence what this entailed) at an early hour, was, on the evidence, stressful. 41. This must also be seen in light of the contribution that her family responsibilities had on the conduct in particular of Mr Shaw, and then ultimately the contribution of this to her dismissal from employment. 42. In this regard, an amount of $5,000 is, on balance, appropriate. The ongoing impact of the sex discrimination was nowhere near that of the disability discrimination, and the amount set therefore needs to be seen in that context. 43. The applicant also seeks compensation for lost wages. Given what is set out above and noting that such a request is consistent with tort principles, it is appropriate that such an order be made. 44. As to the amount, the evidence is that the applicant was paid $19.50 per hour for 15 hours work per week. Further, that above 15 hours she wold have been paid $14 per hour. This appears to be a reference to an amount of non-taxed pay. (See [9] and [10] of AJM.) 45. While some of the evidence (at [12] of AJM) in this regard is unclear, what is clear is that the Shaws initially directed the applicant to work from 8.30am to 1.00pm for three days per week. While pressure was then applied for her to work further hours, it is unclear to what extent this was implemented. Mr Weightman's submission therefore that the Court should use a calculation of 13.5 hours per week is appropriate in the circumstances. This results in an amount of $263.25 as weekly wages. 46. I agree that this calculation should apply, particularly as it represents the starting time acceptable to the applicant (8.30am and not 7.00am), the time for which there is clear evidence that she actually worked per day, and similarly relates to three, not five days per week. 47. That amount taken, as Mr Weightman seeks, to the Court hearing date equals $35,538.75. It is appropriate that some discount should apply. Mr Weightman agrees that this should be commensurate with the amount of money earned by Ms Maxworthy with the Taree-Wingham Racing Club after she left the Shaws employment. With reference to [40] of AJM and annexures "G" to "M", that amount is $2,144.25. In all, therefore, the amount equals $33,394.50. 48. The applicant also seeks interest pursuant to s.76(3) of the Federal Magistrates Court Act 1999 (Cth) ("the FMCA Act"). That is, interest on the amount awarded for loss of wages from the date when the course of action arose to the hearing date (18 February 2008 to 20 September 2010), and from the date of hearing to the date of judgment entry. 49. There is nothing before the Court to argue that there is good cause not to make such an order. It is the case that the hearing was postponed in this case due to the (understandably, for some part of the time) inability of Mr Shaw to attend to his response in these proceedings. However, the applicant should not be disadvantaged in this regard. Had Mr Shaw attended in a more timely fashion (when appropriate), Ms Maxworthy would have been in receipt of judgment (one way or another) at an earlier time. 50. However, given that it is not possible to discern with any certainty in the circumstances when Mr Shaw could be said to have been reasonably in a position properly to respond to the application, it is appropriate to proceed pursuant to s.76(3)(d) of the FMCA Act. In these circumstances, an amount of $5,000 should be included in the judgment amount in lieu of this interest. 51. The applicant also seeks interest pursuant to s.77 of the FMC Act. That is interest from the date on which judgment is enterred (s.77(3)). 52. It is appropriate that such an order be made in the current case. Given the circusmtance that Mr Shaw's exact whereabouts remains unknown, and having regard to the difficulties encountered by Ms Maxworthy's solicitors in tracing Mr Shaw's whereabouts, the time when Ms Maxworthy may be in a position to actually obtain the amount awarded to her may be some time in the future. She should not be disadvantaged because of Mr Shaw's avoidance of these proceedings. 53. The relevant rate of interest is that set out in Order 35, r.8 of the Federal Court Rules. 54. The applicant also seeks certification that it was reasonable to engage counsel to appear in these proceedings pursuant to r.21.15 of this Court's rules. 55. The relevant test is one of reasonableness. While Mr Shaw did not appear at the hearing, and there was every indication that he would not, it was nonetheless reasonable for the applicant to engage counsel. The applicant would have been at great disadvantage in representing herself, if for no other reason than for the circumstances referred to above as to her medical and psychological state. 56. Further, counsel's submissions were most helpful in assisting the Court in clarifying aspect's of Ms Maxworthy's case and circumstances. While there is no doubt that Mr Morris, her solicitor, could have acted in a highly competent manner, the invovlment of Mr Weightman was appropriate to ensure the presentation of the case in the manner which eventuated. The arguments relating to relevant law also benefited from the invovlement of counsel. 57. It is appropriate that such a certificate be granted, and I will do so. 58. Finally, it is appropriate that an order for costs be made in this matter. There is nothing before the Court to persuade me it should not be made in the normal course of events.
I certify that the preceding 212212two hundred212212twelveforty-ninetwo hundred and twelve (212) paragraphs are a true copy of the reasons for judgment of Nicholls FM
Maxworthy
Shaw [2010] FMCA 1014
Commonwealth of Australia v Evans [2004] FCA 654
Waters v Public Transport Corporation [1991] HCA 49; (1991) 173 CLR 349
Mayer v Australian Nuclear Science & Technology Organisation [2003] FMCA 209
Bropho v Western Australia [2007] FCA 519
Hollingdale v Northern Rivers Area Health Service [2004] FMCA 721
Minns v New South Wales [2001] FCA 704
Zoltaszek v Downer EDI Engineering Pty Ltd (No.2) [2010] FMCA 938
Purvis v New South Wales (Department of Education & Training) [2003] HCA 62; (2003) 217 CLR 92; 202 ALR 133; 78 ALJR 1
Zhang v University of Tasmania [2009] FCAFC 35
Penhall-Jones v State of NSW [2008] FMCA 832
Howe v Qantas Airways Ltd [2004] FMCA 242; (2004) 188 FLR 1
Hall v Sheiban [1989] FCA 72; (1989) 20 FCR 217
Ardeshirian v Robe River Iron Associates [1993] FCA 352; (1993) 43 FCR 475
Qantas Airways Ltd v Gama [2008] FCAFC 69
Gama v Qantas Airways Ltd (No.2) [2006] FMCA 1767
Shiels v James [2000] FMCA 2
Naidu v Group 4 Securitas Pty Ltd [2005] NSWSC 618
McKenna v The State of Victoria [1998] VADT 83
State of Victoria and Ors v McKenna [1999] VSC 310
Haar v Maldon Nominees [2000] FMCA 5; (2000) 184 ALR 83
Randell v Consolidated Bearing Company (SA) Pty Ltd [2002] FMCA 44
Rawcliffe v Northern Sydney Central Coast Area Health Service [2007] FMCA 931
Catholic Education Office v Clarke [2004] FCAFC 197; (2004) 138 FCR 121
(1991) 173 CLR 349
(2004) 188 FLR 1
(1989) 20 FCR 217
(1993) 43 FCR 475
(2000) 184 ALR 83
(2004) 138 FCR 121
(1996) 68 FCR 46
(2003) 217 CLR 92
(1995) 61 FCR 134