Monday 2 September 2002
PATRICK STEVEDORES (NO 1) PTY LIMITED v FRANCIS VAUGHAN
Judgment
1 BEAZLEY JA: I agree with Davies AJA.
2 STEIN JA: I agree with Davies AJA.
3 DAVIES AJA: This is an appeal and a cross-appeal from the judgment of an Acting Judge of the Court. The respondent, Francis Vaughan, had suffered psychological damage as a result of his involvement in the dispute between the Patrick group of companies and the Maritime Union of Australia. His Honour rejected a claim that there was negligence on the part of the appellant on the 12, 13 and 14 April 1998, but held that there was negligence in respect of the events of 6 May 1998. His Honour awarded damages totalling $610,604.32 for the psychological injury which Mr Vaughan suffered.
4 In these proceedings, Mr J D Hislop QC and Mr H J Marshall of counsel appeared for the appellant, Patrick Stevedores (No 1) Pty Limited ("Patricks"). Mr G L Little SC and Mr L G Stone of counsel appeared for Mr Francis Vaughan.
5 Mr Vaughan was an employee of Patricks. He had become a waterside worker in 1970 and had joined the Waterside Workers' Federation of Australia ("WWF"), the predecessor of the Maritime Union of Australia ("MUA"). His father had been a waterside worker before him. He had represented WWF in negotiations with respect to conditions of work. In 1993, Mr Vaughan was promoted to the rank of Supervisor, thus joining the management section of Patricks' Botany workforce. He resigned from the WWF and joined the Australian Maritime Officers' Union ("AMOU"), a union which represented management workers. In 1995 he was further promoted to the position of shift supervisor which placed him in charge of supervisors. In 1996, he was promoted to the position of operational superintendent and was placed on permanent day shift in charge of the operational sections of the Port Botany works. In the course of his tasks, Mr Vaughan negotiated on behalf of Patricks with MUA representatives. It is clear that Mr Vaughan had a long association with the MUA and with its predecessor the WWF.
6 In early April 1998, Patricks decided to take steps to break the long-standing monopoly of the MUA in providing waterside workers for the loading and unloading of vessels. The reasons of the trial judge do not suggest that Mr Vaughan played any part in the formulation of that policy.
7 On the evening of 7 April 1998, Mr Vaughan saw on television that workers had been locked out of the Port Botany workplace and that the workforce had been dismissed. On the evening of 10 April 1998, Mr Vaughan received a telephone call from a Mr Hughes, one of his superiors, who informed him that he would be going back to work in two days time as a vessel, The Australian Endeavour, would be berthing. On the following evening, Mr Vaughan was given precise instructions.
8 The trial judge recorded the following facts, inter alia:
"At 5 am on Easter Sunday, 12 April, the plaintiff arrived at the upper car park of Eastgardens Shopping Centre. Some other supervisors were present together with Mr Dougall, the Assistant Manager and Mr Don Hughes, Manager of the Port Botany Terminal for Patricks. Mr Hughes had a body guard with him. There were approximately 20 men there dressed in dark blue pants, dark blue shirts and beanies. A bus was waiting and, at the direction of Mr Hughes they all embarked upon it. A marked police car arrived and the bus followed that car towards Port Botany.
…
The bus then followed the police car down the access road towards the entrance to Port Botany. That access road was some 800 to 900 metres long from the corner of Foreshore Road to the gates at the entrance to Port Botany. For most of the way down the road the plaintiff could hear people shouting abuse at the bus, a couple of the windows were shattered by projectiles (one on each side). The glass did not break it merely shattered.
…
The bus was moving down very slowly, 10 metres at a time. Those on the picket line put something beneath the wheels and the bus would stop again. The bus was being rocked from side to side when it was stopped. Men were jumping on top of the bus and hitting it with baseball bats. Paint was thrown over the windscreen so that the driver had difficulty in seeing. Mr Hughes kept telling the driver - 'You've go to do this, step by step, step by step'.
The plaintiff described the atmosphere within the bus as one of fear and his own feelings as, terrified.
…
It took the bus almost 2 hours to cover the 800 or 900 metres from the entrance to the access road to the main gates of the Port. During that time the plaintiff experienced great fear from the shouting, from men climbing on the bus, the banging of the bus with baseball bats, the throwing of pain over the windscreen, the breaking of the windows and the rocking of the bus. Some of the men picketing had unsuccessfully tried to force the door open.
Once inside the perimeter of the Port the plaintiff noticed a large number of security men clothed in black and accompanied by Rottweiler or Alsatian dogs.
…
Also, instructions were given to the plaintiff and others that when they were inside the perimeter of the fence, no one was allowed to go anywhere without a security guard and then, if they moved around, they had to be in one of the defendant's utilities and the security guard was to drive it.
During the course of the morning the plaintiff was instructed by Mr Dougall to go to the garage section and pick up one of the maintenance supervisors and take him over to the cranes to make sure that they were in running order. In accordance with those instructions, the plaintiff located the security man and they entered a utility. The security guard was driving and his Rottweiler dog was in the back of the utility. Suddenly a bolt crashed through the middle of the front windscreen hitting the driver on the left shoulder. That bolt was about 8 inches long and almost 1 inch in diameter. At that stage, they were not close to the boundary fence and it was the belief of everyone that the bolt had been projected by some form of catapult from outside the perimeter fence.
…
The Australian Endeavour arrived during the course of the morning and as the gangway was being lowered, the plaintiff and the workman were standing nearby. Without warning, two heavy pieces of equipment called twistlocks and which are used in restraining containers, fell from the ship and landed some 4 metres away from the plaintiff.
…
The plaintiff was spat on and abused by the crew. Whilst on board, some of the crew members referred to him by name. They were able to name him because there were MUA members on the P & O Wharf, some 200 metres away, looking at what was happening through binoculars. One or more of those men recognised the plaintiff and called out his name over loud halers. The plaintiff had to stay on board for some time to instruct the crew how to unload the vessel. When he returned to the administration block he told Mr Dougall that he had been subjected to abuse and that twistlocks had fallen near him and that he had been identified by name. Mr Dougall told him to ignore it.
…
On the way out, the bus was subjected to the same stopping and starting as had occurred in the morning. If anything the number of pickets appeared to be greater than in the morning. The treatment that the plaintiff and others had endured in the bus in the morning was substantially repeated and it took approximately an hour and a half to get to the end of the access road. During this time the plaintiff was subjected to the same fears and terrors that had occurred on the inward trip except that on this occasion his name was called out by loud hailer and he was described as a 'scab'".
9 On the evening of 12 April, Mr Vaughan felt disturbed. In evidence he said, "it was the worst feeling I'd ever had in my life". He was telephoned by Mr Hughes and he informed Mr Hughes that he was not sure that he wished to re-enter Port Botany. Mr Hughes assured him that the worst was over and that there would be greater security. He agreed to return on 13 April.
10 The second day was substantially the same as the first. The trial judge recorded these circumstances, for example:
"The picketers filled the area from the fences on each side of the access road. He heard comments directed to himself to the effect that they were going to kill him and that he would regret being a 'king scab'. This time it took an estimated one and a half hours to cover the distance down the access road to the gate into Port Botany.
….
During the course of the day, the shouting through loud halers and threats to the plaintiff continued.
….
At 5.00 pm all who had come in by bus that morning met near the administration block and boarded the bus to leave.
….
Once again the plaintiff was aware of a vehicle following the bus which took a circuitous route to Barton Park. When the bus stopped there, a Commodore car containing men whom the plaintiff recognised, arrived. An altercation occurred between 4 or 5 of them and Mr Dougall and a couple of other people who were alighting from the bus whilst the plaintiff was still on it. They were calling out - 'We know the scab 'C" is inside. He has to come out.' He knew that that was referring to him. He felt fear and helpless. He did not know whether to try and fight back. He was afraid and angry.
By the time the plaintiff alighted from the bus, these men had moved away from it and were arguing with Mr Dougall and another person. The plaintiff managed to leave whilst these men were restrained by a couple of the workers and Mr Dougall.
The plaintiff described his feelings on arriving home as inconsolable and uncontrollable. He was unable to sleep that night. He just tossed and turned. His palms were sweaty. He could not stop sweating in bed and ended up sleeping outside to give his wife a break.
His wife described his condition as more withdrawn than the previous night and he just did not want to talk."
11 On the evening of 13 April Mr Vaughan was again telephoned by Mr Hughes. He informed Mr Hughes that he greatly feared for his life and for his family members due to the threats which had been received. He told Mr Hughes that he and his wife had received numerous threatening phone calls. He said that there had been no adequate protection and that the conditions were unbearable. However, Mr Vaughan was persuaded again by Mr Hughes to return the following day.
12 The trial judge recorded these facts, inter alia, as to the events of Tuesday 14 April:
"Again the pickets formed human barriers on the ground and the Police had difficulty moving them. The picketers were pelting the bus with beer cans and bottles and the plaintiff heard his name called out, together with the threat 'We know where your grandson lives. He might not get home.' In addition, there were consistent threats against him.
…. on this occasion, there were camera crews from Channel 10 and those on the picket line were playing up to the camera. There were women and children sitting in the picket line and being dragged away by a couple of police.
Eventually, the plaintiff arrived home in a condition similar to that on the preceding days. His wife described his condition as a 'mess'".
13 The trial judge held that there had been no negligence on the part of Patricks with respect to those three days. He referred, inter alia, to the loss of revenue which Patricks might suffer should it not be able to load or unload vessels. His Honour said:
"In the first place there was loss of revenue from loading and unloading ships which could be as high as five million dollars per month at Port Botany. The vessel, Australian Endeavour, had already arrived at the Port for loading and unloading and after that a further vessel operated by the Columbus Line (a major customer of the defendant) was also due to arrive. In addition, unless operations continued, vessels would be diverted to other ports and competitors of the defendant and there could be delays in the movement of shipping leading to possible penalties, loss of income and extra costs occasioned where emergency arrangements had to be made. Furthermore there was the risk of cancellation of existing terminal contracts and general stevedoring contracts which for the year ended 30 September, 1997, generated revenue of approximately $270,000,000 for the Patrick group along with threat of permanent loss of clients to competitors in a highly competitive market. This possibility had already been flagged by the concerns expressed in recent communications with executives of shipping lines such as Blue Star, Columbus, Mediterranean Shipping Co and NYK Shipping. The risk was said to be exacerbated by the fact that negotiations for the renewal of certain contracts were then either under way or shortly to be commenced."