Consideration
26 As the Full Court recently observed in AFT Pharmaceuticals (AU) Pty Limited v Reckitt Benckiser (Australia) Pty Limited (2020) 143 ACSR 522; [2020] FCAFC 45:
102. … the appropriate appellate approach was captured by Perram J in Aldi Foods Pty Ltd v Moroccanoil Israel Ltd [2018] FCAFC 93; (2018) 261 FCR 301 (Aldi) at [49]. As his Honour said, the Court's appellate jurisdiction is an appeal by way of rehearing, and involves the correction of error. In a case like the present, error is not demonstrated merely because the appellate court disagrees with the primary judge and to succeed in the appeal the appellant must establish error. Such error may be shown in a number of ways:
On the one hand, error may appear syllogistically where it is apparent that the conclusion which has been reached has involved some false step; for example, where some relevant matter has been overlooked or some extraneous consideration taken into account which ought not to have been. But error, on the other hand, may also appear without any such explicitly erroneous reasoning. The result may be such as simply to bespeak error. Allsop J said in such cases an error may be manifest where the appellate court has a sufficiently clear difference of opinion: Branir at 437-438 [29].
27 Similarly in Fortescue Metals Group v Warrie on behalf of the Yindjibarndi People (2019) 374 ALR 448; [2019] FCAFC 177, Robertson and Griffiths JJ said:
497. As Allsop J explained in Branir, the task of a court in an appeal by way of rehearing is the correction of error rather than redetermination of the question of fact de novo. In fact finding of a certain nature a trial judge enjoys advantages which mean that she or he is in a better position than the appeal court to ascertain the true state of affairs. The court on appeal must account for these advantages in examination of the trial judge's findings and in its own assessment of the significance of any divergence between its view of the evidence and the conclusions reached by the primary judge. Where the trial judge's advantages are significant, it may mean that despite a tentative divergence in views based on the record of the evidence, the appeal court may properly conclude that it is not satisfied that any error exists or that a different finding of fact is warranted. In reaching this conclusion, the appeal court still comes to its own view on the facts, but in doing so, it recognises the position of the trial judge as a relevant factor in its assessment of the evidence. The process was described by Allsop J in Branir at [29]:
The degree of tolerance for any such divergence in any particular case will often be a product of the perceived advantage enjoyed by the trial judge. Sometimes, where matters of impression and judgment are concerned, giving "full weight" or "particular weight" to the views of the trial judge might be seen to shade into a degree of tolerance for a divergence of views [various authorities] ... In such cases the personal impression or conception of the trial judge may be one not fully able to be expressed or reasoned: see for example Re Wolanski's Registered Design [1953] HCA 72; (1953) 88 CLR 278, 281 and Secretary of State for Foreign Affairs v Charlesworth, Pilling & Co [1901] AC 373, 391. However, as Hill J said in Commissioner of Taxation (Cth) v Chubb Australia Ltd [1995] FCA 147; (1995) 56 FCR 557 at 573 "giving full weight" to the view appealed from should not be taken too far. The appeal court must come to the view that the trial judge was wrong to interfere. Even if the question is one of impression or judgment, a sufficiently clear difference of opinion may necessitate that conclusion.
498. The relevant findings of fact challenged by FMG are ones which attract a significant degree of tolerance, as also was the case in Moses where the Full Court said at [308]-[309] (applied to the "occupy" enquiry by Sebastian at [293]-[294]):
The difficulty faced by a party alleging an error in the fact finding process in a proceeding such as the present is formidable. The question whether the applicants for a native title determination have established the necessary degree of connection to land by traditional laws and customs is a matter of judgment involving an assessment of a wide array of evidence. Where the trial has involved 81 hearing days, including 35 days "on country" at 76 sites, hearing from 76 indigenous witnesses, 6 pastoralists and 11 expert witnesses on matters of archaeology, history, linguistics and anthropology, the assessment is a complex process of assimilation of a large and diverse body of material. The conclusions will often necessarily be expressed in a highly summarised form, and in some instances will involve matters of impression. In the present case these factors are evident throughout his Honour's reasons concerning the degree of connection. The purpose in setting out in such detail earlier in these reasons the approach taken by his Honour is to illustrate the scope of the exercise and the interlocking nature of many of the issues so that findings on the evidence relating to one issue are often applied to other issues as well.
Nevertheless, these circumstances, however challenging, do not alter the role of an appellate court , which was explained by Gleeson CJ, Gummow and Kirby JJ in Fox v Percy [2003] HCA 22; (2003) 214 CLR 118 at [25] thus:
Within the constraints marked out by the nature of the appellate process, the appellate court is obliged to conduct a real review of the trial and, in cases where the trial was conducted before a judge sitting alone, of that judge's reasons. Appellate courts are not excused from the task of "weighing conflicting evidence and drawing [their] own inferences and conclusions, though [they] should always bear in mind that [they have] neither seen nor heard the witnesses, and should make due allowance in this respect" (Dearman v Dearman [1908] HCA 84; (1908) 7 CLR 549 at 564, citing The Glannibanta (1876) 1 PD 283 at 287).
In CSR v Della Maddalena [2006] HCA 1; (2006) 80 ALJR 458; 224 ALR 1 at [17], Kirby J (with whom Gleeson CJ agreed) explained some of the limitations on the appellate role inherent in the nature of the function as follows:
The "limitations" introduced into the rehearing based on the record of the trial are those necessarily involved in that form of appellate procedure. Such limitations include those occasioned by the resolution of any conflicts at trial about witness credibility based on factors such as the demeanour or impression of witnesses; any disadvantages that may derive from considerations not adequately reflected in the recorded transcript of the trial; and matters arising from the advantages that a primary judge may enjoy in the opportunity to consider, and reflect upon, the entirety of the evidence as it is received at trial and to draw conclusions from the evidence, viewed as a whole.
(Footnotes omitted).
28 The submissions of Ms Smith in relation to grounds of appeal 1 and 2 are detailed, being in the order of 28 pages.
29 Taking into account the absence of a contradictor, and that in considering grounds of appeal 1 and 2 I must be satisfied by the submissions of Ms Smith that an order granting the appeal is warranted, I make the following findings.
30 First, in determining Ms Smith's application, his Honour applied the correct test under the Fair Work Act in considering whether adverse action had been taken against Ms Smith for reasons proscribed by s 351 of that Act. His Honour referred to the seminal decision of the High Court of Australia in Board of Bendigo Regional Institute of Technical and Further Education v Barclay [No 1] [2012] (2012) 248 CLR 500; HCA 32, and observed that the evidence of the decision-maker was critical to determining the reasons for adverse action taken against Ms Smith. The primary Judge clearly made a finding at [119] that Ms Smith's age was not a "substantial and operative reason for her dismissal", based on the evidence before the Court. I find no fault in this approach on the part of his Honour.
31 Second, s 361 of the Fair Work Act provides:
Reason for action to be presumed unless proved otherwise
(1) If:
(a) in an application in relation to a contravention of this Part, it is alleged that a person took, or is taking, action for a particular reason or with a particular intent; and
(b) taking that action for that reason or with that intent would constitute a contravention of this Part;
it is presumed that the action was, or is being, taken for that reason or with that intent, unless the person proves otherwise.
(2) Subsection (1) does not apply in relation to orders for an interim injunction.
32 At [24] and [25] his Honour observed:
24. The respondent argues that Ms Smith has not raised a sufficient prima facie case to engage s.361(1) of the Act. I tend to agree. Whilst there is no dispute that the respondent took adverse action against Ms Smith by terminating her employment, there is no direct evidence that the reason for Ms Smith's dismissal was her age. She identifies none. She does not allege that she was given any reason for her dismissal. Her case is based on her supposition that she was dismissed because of her age.
25. There are three uncontroversial matters that emerge from the evidence - Ms Smith's age, the fact that her employment was terminated and the fact that the respondent gave her no reason for the termination. Ms Smith argues that these three matters, perhaps coupled with Mr Sedgwick's curiosity about her age when he interviewed her (as to which I have set out the evidence below) give rise to a prima facie case of age discrimination against the respondent. However in my view those matters on their own or in combination, are insufficient to raise a prima facie case necessary to engage the operation of s.361(1) of the Act.
33 Critically, however, his Honour continued at [26]:
26. In any event, by reason of the findings that I have made below, it is unnecessary to finally determine this point.
34 There is no requirement for an applicant to establish a prima facie case - in the sense of a prima facie connection between the alleged adverse action and a workplace right - to engage s 361(1) of the Fair Work Act. Rather - s 361 is engaged by the making of the allegation required by that section. This was explained by Charlesworth J in Celand v Skycity Adelaide Pty Ltd [2017] FCAFC 222 at [152] and [153], where her Honour then continued:
154. There are, on the authorities, two qualifications to the proposition that the making of the requisite allegation suffices to engage the s 361 presumption. The first is that an applicant will not take the benefit of the s 361 presumption unless the applicant establishes as an objective fact the circumstance said to be the reason for the taking of the adverse action….
155. A second qualification is that referred to by Flick J in Hall in the following passage at [25]:
Third, in order to invoke the reverse onus of proof, an applicant need only establish that "the evidence is consistent with the hypothesis" that a respondent was actuated by a proscribed reason. …
35 Her Honour concluded:
157. Neither of those qualifications requires an applicant to establish a prima facie connection between the alleged adverse action and a prohibited reason. There is an obvious difference between establishing a prima facie connection and demonstrating that the connection between the reason alleged and the impugned conduct is not so remote as to be fanciful.
36 In the present case, adverse action had been taken against Ms Smith within the meaning of Item 1 of s 342(1) of the Fair Work Act, namely she had been dismissed. As an objective fact, Ms Smith was 63 years of age at the time of the proceedings. Importantly, Ms Smith had led evidence in the primary proceedings, including that unflattering comments concerning her age had been made by Mr Sedgwick at her employment interview only months before her termination. To that extent:
Ms Smith had established, as an objective fact, the circumstance said to be the reason for the taking of the adverse action, and
There was evidence consistent with the hypothesis that the respondent's action had been actuated by a reason proscribed by s 351 of the Fair Work Act.
37 On these facts, s 361 was engaged, and the onus rested on the respondent to prove that adverse action had been taken against Ms Smith for reasons other than those proscribed by s 351 of the Fair Work Act.
38 Turning to the primary judgment, his Honour ultimately did not require Ms Smith to prove a prima facie case in the terms to which he referred at [24]. This is apparent from [26] of the primary judgment. Importantly, earlier in the judgment his Honour had said at [16]:
Ms Smith bears the onus of establishing that adverse action has been taken against her and once she has discharged that onus, the respondent bears the onus of establishing that it did not take adverse action because of a prohibited reason. Adverse action is defined in s 342 of the Fair Work Act. Relevantly, it will have occurred where an employer dismisses an employee: s 342(1) item 1(a) of the Act.
39 His Honour found that adverse action was taken against Ms Smith by the respondent (at [113]). More importantly, in examining the evidence before the Court, his Honour proceeded - correctly - on the basis that the onus rested on the respondent to substantiate its reasons for taking that adverse action against Ms Smith. Ultimately his Honour concluded that the respondent had discharged that onus.
40 I am satisfied that his Honour's decision was not influenced by an incorrect construction of s 361. In determining the matter, his Honour correctly proceeded on the basis that the onus of proof had reversed in accordance with s 361, and that it was necessary for the respondent to satisfy the Court that it had not acted in contravention of Part 3-1 of the Fair Work Act. It follows that the test applied by his Honour to determine whether there had been a contravention of the Fair Work Act was the correct test, and his Honour was not led into error notwithstanding his comments at [24] concerning s 361.
41 Third, the primary Judge detailed evidence on which the respondent relied to substantiate its case that Ms Smith had been dismissed because the respondent considered her performance to be unsatisfactory and the respondent considered Ms Smith unsuitable for the role of senior accountant. His Honour identified "all of the people who had a part to play in determining to terminate Ms Smith's employment" (at [28]), and, at length, examined evidence of each of them, namely Mr Callaghan (at [30]-[55]), Mr Sedgwick (at [63]-[73]), Ms McGarva (at [74]-[84]) and Ms Gordon (at [85]-[89]). His Honour also reviewed the evidence of Ms Gillett at [91]-[98], Ms Steffens at [99]-[105], and Ms Wieting at [106]-[112]).
42 His Honour made credit findings concerning these witnesses, including that:
Mr Callaghan was a generally truthful witness, whose evidence was generally reliable (at [62]);
Mr Sedgwick's evidence was, in certain respects, disingenuous (at [68]); and
The evidence of Mr Callaghan, Mr Sedgwick, Ms McGarva and Ms Gordon concerning their reasons for terminating Ms Smith's employment was credible (at [114]).
43 The consideration by his Honour of the evidence of these witnesses was thorough. In respect of the view taken by his Honour of that evidence, it is appropriate to repeat the following comments of Dawson, Gaudron and McHugh in Louth v Diprose (1992) 175 CLR 621; [1992] HCA 61 at 66:
… They are findings which were substantially dependent on the trial judge's assessment of character and credit and which were reached having regard to the demeanour of the parties in the witness box. As such and as the authorities repeatedly acknowledge, they are findings which, unless some error is to be discerned, an appeal court must respect.
44 I am not persuaded that there is any reason for rejecting his Honour's evidentiary findings in the circumstances.
45 Fourth, in respect of grounds 1 and 2, Ms Smith's submissions included extensive assertions of fact, criticisms of witnesses for the respondent (in particular Ms Wieting), allegations of untruthfulness on the part of witnesses for the respondent, criticisms of his Honour's interpretation of evidence of witnesses for the respondent, criticisms of conduct of the respondent in respect of other employees, and alleged tainting of evidence of witnesses for the respondent. However:
Again, the primary Judge heard and saw all relevant witnesses, and was in the best position to make findings concerning their credibility;
As a general proposition it is unlikely that all seven witnesses for the respondent would lie under oath, including during cross-examination;
To the extent that the decision-makers in the respondent believed that Ms Smith's work was of a standard inadequate for the role of senior accountant, this was a subjective belief which was open to his Honour to accept as credible, and which his Honour accepted as credible;
Ms Smith's claimed that her performance was well above the standard required by the respondent were relevant, however his Honour was entitled to, and did, place weight on the views taken by the decision-makers in the respondent concerning Ms Smith's performance, including her interaction with clients;
Although Ms Smith claimed that Mr Sedgwick was "obsessed" with her age, and that the primary Judge "underestimated the importance of Mr Sedgwick's curiosity" concerning her age, the only relevant evidence of any concerns of Mr Sedgwick was apparently his question of Ms Smith concerning her age during the interview. As his Honour found at [69], despite that question being put by Mr Sedgwick to Ms Smith at that time, the respondent nonetheless subsequently employed Ms Smith. It was open to his Honour to conclude that, to that extent, Ms Smith's age was not a factor which the respondent considered relevant;
Claims by Ms Smith that work performance of other employees was inadequate was only her opinion, and, in any event, of minimal relevance to the operative reason for the respondent terminating her employment;
Comparisons by Ms Smith between the standard of her work and that of other employees derived from her own opinions, and once again, was of minimal relevance to the operative reason for the respondent terminating her employment;
Claims by Ms Smith in her submissions that she exceeded the standard of work required was her own opinion, and of little (if any) probative value or relevance; and
Insofar as I can ascertain from the material before me, no witnesses other than Ms Smith gave evidence supporting her claim that she had been dismissed by the respondent for reasons contrary to the Fair Work Act.
46 Fifth, the fact that his Honour did not refer, in minute detail, to all evidence before him, does not mean that his Honour failed to have regard to all relevant evidence. As the Court of Appeal of Victoria observed in Fletcher Construction Australia Ltd v Lines MacFarlane & Marshall Pty Ltd (No 2) [2002] VSCA 189 at [157]:
The duty to deal with facts or evidence is not absolute. The evidence must be significant in the sense that, unless disposed of, it stands in the way of the Court's conclusions. The Court need not deal in terms with evidence when its importance falls away because of the manner in which the Court disposes of the case. Nevertheless, if evidence is significant, it is not to be peremptorily shunted aside or ignored.
47 See also Carlisle Homes Pty Ltd v Barrett Property Group Pty Ltd [2009] FCAFC 31 at [44], New Zealand v Johnston (2011) 274 ALR 509; [2011] FCAFC 2 at [105].
48 Finally, Ms Smith claimed his Honour incorrectly adopted an approach of confining his consideration of the case between (on the one hand) the likelihood of the respondent's claimed reasons for termination and (on the other hand) the likelihood of discrimination against Ms Smith for age-related reasons. However, as the primary judgment plainly shows, his Honour simply accepted the evidence of the decision-makers in the respondent that Ms Smith's employment had been terminated for reasons of performance. I do not accept that his Honour constrained his reasoning in the terms alleged by Ms Smith.
49 Grounds of appeal 1 and 2 are not substantiated.