Wilson v Britten-Jones
[2019] FCA 747
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2019-05-24
Before
Jagot J, Nicholas J
Source
Original judgment source is linked above.
Judgment (10 paragraphs)
- The interlocutory injunction granted by Jagot J on 18 February 2019 be discharged.
- The proceeding stand over to 9.30am on 3 June 2019 for a case management hearing and any argument in relation to costs. Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background 1 Before me is an interlocutory application by the applicant seeking an interim injunction under s 46PP of the Australian Human Rights Commission Act (1986) (Cth) ("AHRC Act") and s 23 of the Federal Court of Australia Act 1974 (Cth) ("the FCA Act"). 2 The applicant, Ms Wilson, is an equity partner of the law firm, Piper Alderman. The respondents to the proceeding are her partners in the firm. The applicant has been an equity partner of the firm since 1 March 2012 and, since that time, has worked in the Property Practice Group, primarily out of the Sydney office. 3 The proceeding was commenced by the filing of an originating application on 18 February 2019. On that date Jagot J granted the applicant an interlocutory injunction until further order pursuant to s 46PP of the AHRC Act restraining the respondents from proceeding to hold any meeting to consider any resolution the effect of which was to expel the applicant from the partnership. 4 The question before me is whether the interlocutory injunction granted by Jagot J should continue or whether it should be discharged or varied. Counsel for the applicant accepted that given the circumstances in which the interlocutory injunction was obtained (ie. on an urgent basis) this was a case in which it was for the applicant to persuade me, having regard to the evidence and the relevant principles, that the existing interlocutory injunction should be continued or, if not, that some other form of interlocutory relief should be awarded in its place. 5 The interlocutory relief sought by the applicant is, relevantly, an interim injunction under s 46PP of the AHRC Act and/or s 23 of the FCA Act restraining the respondents from proceeding to hold any meeting to consider a resolution the effect of which is to expel the applicant from the partnership until further order of the Court. 6 By her originating application, the applicant seeks various declarations against the respondents declaring that the first respondent (Mr Britten-Jones) contravened s 5 of the Sex Discrimination Act 1984 (Cth) ("the SD Act") and that the other respondents caused, aided or permitted him to engage in such conduct. The other respondents include the Chairman of Partners (Mr Gordon Grieve), the head of the Sydney office of the firm (Mr Simon Morris) and Mr Tim Capelin (a partner who has expertise in employment law), each of whom has had dealings with the applicant in relation to the matters which have given rise to this proceeding. 7 The applicant also seeks a declaration that the respondents contravened s 94(2) of the SD Act by committing an act of victimisation, namely, by purporting to deliver a notice of meeting of the equity partners of Piper Alderman dated 23 January 2019 seeking to move to expel the applicant from the partnership for reasons that included that she made allegations that the respondents had acted unlawfully by reason of a provision of Part II of the SD Act. 8 A further declaration sought by the applicant is that: … the Respondents contravened s 5 of the SD Act by discriminating against the Applicant on the ground of her sex by: (a) Treating less favourably than male Respondents in the face of alleged bullying complaints and other allegations of unlawful conduct, including complaints and other allegations made against male Respondents alleging unlawful breaches of the SD Act; (b) Seeking to prevent the Applicant from enjoying sabbatical benefits under the Partnership Agreement that accrue with effect from 1 March 2019; (c) Failing to rendering to the Applicant's legal representatives the full information requested in the Applicant's legal representatives' letter dated 18 January 2019; (d) Excluding the Applicant from access to the Respondent's office in Sydney on 16 January 2019; and (e) Issuing the purported Notice. 9 The applicant also seeks a declaration that the notice of meeting was invalid and of no legal effect, together with a declaration that the respondents have contravened s 28 of the Partnership Act 1981 (SA) ("Partnership Act") by not rendering to the applicant's legal representatives the full information requested in a letter from the applicant's lawyers to the respondents dated 18 January 2019. 10 Damages are also sought for contraventions of the SD Act and breaches of the partnership agreement. Equitable compensation is also claimed for breaches of fiduciary duty owed by the respondents to the applicant. 11 The originating application filed by the applicant was not accompanied by a statement of claim or a concise statement. Nor does the originating application include any form of proposed declaration or injunction to indicate in what respect each of the respondents is alleged to have breached any fiduciary duty owed by them to the applicant. 12 In late October 2018 complaints were made against the applicant by two employees of the firm who were members of her practice group. In essence, the complaints concerned allegations of workplace bullying by the applicant of two more junior lawyers working under her supervision. I shall refer to them as Lawyer A and Lawyer B. On 9 November 2018, the Managing Partner of the firm, Mr Britten-Jones, informed the applicant of the two complaints. 13 The complaints were referred by Mr Britten-Jones to Mr Capelin who on or about 23 November 2018 referred them to a barrister, Ms Penny Thew, for investigation. She commenced her investigation soon afterwards, which appears to have been completed on about 14 December 2018. The report in what appears to be final form is dated 21 December 2018. 14 On 6 January 2019 Mr Britten-Jones wrote to the applicant informing her that she would receive a copy of the final report the next day. Mr Britten-Jones requested a response from her within the next seven days. He informed her that, in his capacity as Managing Partner, he was removing her from various positions that she held within the firm including Property Practice Team Leader and Deputy Managing Partner. Ms Thew's report was provided to the applicant on 7 January 2019. 15 There followed some short but seemingly polite email correspondence between Mr Britten-Jones and the applicant concerning her work arrangements. They agreed upon an arrangement which would allow the applicant to work from home and which would involve her spending as little time in the office as was feasible. The two employed solicitors who had made the complaints against the applicant were at that time still working in the Property Practice Group. 16 On 14 January 2019 Mills Oakley, who were by this time acting for the applicant, wrote to Mr Britten-Jones. The letter, written by Mr Malcom Davis, a partner of that firm, made a number of allegations and threats. 17 First, Mr Davis alleged that during a meeting held on 22 November 2018 Mr Britten-Jones engaged in "inappropriate bullying conduct". It was alleged that the applicant suffered a personal injury as a consequence of this conduct. The letter did not provide any meaningful particulars of the alleged conduct or the alleged injury. 18 Secondly, Mr Davis informed Mr Britten-Jones that he had advised the applicant that she has "separate rights in defamation" against three-named individuals including, Lawyer A and Lawyer B. The letter stated that Mills Oakley anticipated that in the near future they would be issuing each of those individuals with a "Concerns Notice" (see s 14 of the Defamation Act 2005 (NSW)). 19 Thirdly, the letter included a set of complaints as to the procedures adopted by Ms Thew and also the fact that there had been no mediation as an alternative to Ms Thew's appointment. The letter suggests that this manner of proceeding was contrary to the complaints handling procedure set out in the Grievance Resolution Policy of the firm. 20 Fourthly, the letter suggested that Ms Thew was not sufficiently experienced to undertake the investigation entrusted to her and that the matter should have been instead referred to a more senior practitioner. 21 Fifthly, the letter stated that the applicant had concerns regarding the integrity of a number of witnesses and suggested that one of them (who was not Lawyer A or Lawyer B) gave evidence that was "completely fictitious". 22 Sixthly, Mr Davis stated that his client was "… deeply troubled that falsified documents were provided to the investigator". That allegation apparently relates to an exit interview conducted with another solicitor who was previously employed by the firm and who had worked under the applicant's supervision prior to her resignation. 23 Seventhly, Mr Davis asserted that the investigation process was fundamentally flawed in that one or more of the complainants was interviewed by Ms Thew only after she interviewed the applicant. It was alleged that this approach was unconventional, and gave rise to a denial of natural justice in that the witnesses' allegations and assertions were never put to the applicant. 24 Mr Davis' letter of 14 January 2019 was responded to on behalf of the firm the following day by Mr Capelin. The allegations of bullying made against Mr Britten-Jones were denied. 25 With regard to the threat to send Concern Notices to the two complainants and a witness, Mr Capelin said that the firm considered that this amounted to further bullying behaviour by the applicant and an attempt by her to victimise witnesses in the investigation. He demanded that the threats be unconditionally withdrawn by 5.00pm the following day and that, if they were not, the applicant would be excluded from the workplace until the matter was finalised. 26 In his letter, Mr Capelin also stated that Mr Britten-Jones was considering Ms Thew's report and the applicant's response and that he would shortly decide how to proceed. He also stated that the applicant should be aware that there was a real possibility that a resolution would be put to a special meeting of the equity partners of the firm to expel her from the partnership. 27 The undertakings sought by Mr Capelin were not provided but on 17 January 2019 various undertakings were given to him by Mr Davis on behalf of the applicant. Those undertakings were as follows: 1. Our client will not, while she remains an equity partner of Pipers, issue Concern Notices to … anyone involved in the Investigation conducted by Penny Thew relating to her alleged conduct in 2018, and 2. Whilst our client does not concede that exercising her statutory right to issue Concerns Notices in respect of alleged defamatory publications constitutes unlawful victimisation (as is inferred by you), our client will not, while she remains an equity partner of Pipers, engage in any conduct that constitutes unlawful victimisation towards … anyone involved in the Investigation conducted by Penny Thew relating to her alleged conduct in 2018. 3. The above undertakings will lapse should any of the following occur:- a. any partner of the [sic] Pipers seeks to interfere in any way with our client's attendance at the Premises or any of Pipers other offices or to act in a way that might prejudice her performance of services for client's; or b. the current without prejudice dialogue between the parties is formally concluded, by the giving of 48 hours written notice to Pipers from our client, without an amicable resolution having been concluded. 28 Later that day Mr Capelin sent an email to Mr Davis confirming that on the basis of the undertakings the applicant had given, her access to the premises would be restored whilst without prejudice discussions between the parties continued. 29 On 18 January 2019 Mr Davis sent his response to Mr Capelin's letter of 15 January 2019. In his letter of response Mr Davis provided more information concerning the alleged bullying by Mr Britten-Jones. He asserted: To be clear, our client alleges that since at least 23 October 2018, in breach of his fiduciary duties and contractual obligations to our client, Mr Britten-Jones has, by his actions and omissions, engaged in a course of unlawful, unreasonable, offensive, bemeaning [sic], belittling, victimising, intimidating, threatening and other inappropriate conduct towards our client intended to cause our client injury, including psychological injury, to bring about her departure from the partnership. I will say more about this letter later in these reasons but I should draw attention to the extravagance of the language used and the fact that there was no attempt made in the applicant's evidence or her counsel's submissions to justify, even if only on a prima facie basis, the suggestion that Mr Britten-Jones had intentionally sought to cause the applicant injury either by lawful or unlawful conduct. The inflammatory tone of that letter, apparently written on the applicant's instructions, appears to reflect a remarkable lack of moderation and self-restraint.