THE PROPOSED CONCISE STATEMENT OF CLAIM
2 By orders of Justice Colvin made on 17 July 2018, Dr Zaghloul filed a CSOC in respect of which the parties have been conferring for some time. The CSOC is in these terms:
1. [Dr Zaghloul] was employed as [Woodside's] Technical Authority ('TA') for structures and lifting with statutory and contractual duties and responsibilities to ensure that the risk level was As Low As Reasonably Practicable ('ALARP').
2. [Woodside] was a duly incorporated entity in Australia under the Corporation Act 2001 (Cth). It operated North Rankin Alpha ('NRA') gas facility in the NWS of Australia.
3. On 3 March 2008, the parties entered an employment contract.
4. In July 2008, [Dr Zaghloul] assessed that the risk level-of the then proposed increase in loads-on NRA piles was not ALARP.
5. [Woodside] disregarded all warning signs of the unacceptable risk level on NRA piles and escalated its commitment made in 2006 to increase the loads on the piles irrespective of the 'catastrophic consequences' of failure to life, the environment, and billions of dollars in loss of revenue and royalties to the State of Western Australia.
6. On 25 August 2009, [Dr Zaghloul] advised [Woodside's] offshore managers or operators that the risk of increasing loads on NRA piles was not ALARP ('the EMAIL'). Nelson, the operations manager, supported [Dr Zaghloul's] "stance".
7. On 27 August 2009, Brameld told [Dr Zaghloul] that the EMAIL upset Hamblin which would not help his career. The following day, Dr Denz provided a note for sick leave.
8. In September 2009, Hamblin demanded that [Dr Zaghloul] sit a "difficult test", threatened dismissal if he did not pass, and cast doubt on his undergraduate qualifications.
9. On 14 October 2009, [Dr Zaghloul] complained of stress that "buggered" his immune system and caused strong flu. Hamblin provided names of psychologists.
10. On 24 October 2009, Dr Denz diagnosed that [sic] [Dr Zaghloul] with "reactive depression with anxiety" and prescribed anti-depressant.
11. In or about November 2009, Hamblin overruled [Dr Zaghloul's] advice that a heavy life crane was unstable. In the eleventh hour, Nelson stopped the installation. An internal investigation revealed that the crane was unstable. Within two weeks, Nelson was no longer employed by [Woodside].
12. In or about November 2009, Male criticised [Dr Zaghloul's] (Bridge Supporting Structure) concept without providing reasoned basis. [Woodside] later adopted that concept; it saved tens of millions of dollars and increased safety during offshore construction.
13. Commencing in December 2009, Thain blamed [Dr Zaghloul] for millions of dollars increase [sic] in subsea inspection costs. That increase resulted from a decision to replace the inspection vessel where Thain was party; [Dr Zaghloul] had no involvement.
14. In or about mid December 2009, Hamblin and Brameld yielded to Male's "push" to downrate [Dr Zaghloul's] performance rating to Meets Most, and disregarded [Dr Zaghloul's] report showing his work that saved tens of millions of dollars.
15. On 7 January 2011, 17, 25 September 2010, and 9, 15, 22, 29 March 2011, Hill, Hamblin, Anderson, Brameld, or Mehta turned a blind eye to [Dr Zaghloul's] complaint of the hostile work environment and stress that required him to take anti-depressant.
16. Commencing in January 2010, Hamblin, Brameld or Pockcok removed [Dr Zaghloul's] TA duties-first for onshore then floating followed by fixed structures then as a contract sponsor and finally for lifting-with no consultation or agreement.
17. During 2010, Hamblin, Male, or Brameld took credit for [Dr Zaghloul's] work, excluded him from meetings related to his TA role, and denied him technical training.
18. On or about 28 May 2010, [Dr Zaghloul] told Brameld that he could no longer take stress and that NOPSA, the Commonwealth Regulator, offered him a structural inspector position. Brameld promised an improvement in the work environment. Around that time, Brameld had attempted to gather evidence to prove [Dr Zaghloul's] poor performance. In reasonable reliance on Brameld's promise, [Dr Zaghloul] declined the job offer. But for that advice, [Dr Zaghloul] would have avoided catastrophic consequences to his life.
19. On 17 September 2010, Hill falsely blamed [Dr Zaghloul] for delaying a mooring chain replacement project and disregarded evidence to the contrary.
20. In October 2010, Hill or van Lent blamed [Dr Zaghloul] for a delay in strengthening NRA drilling rig clamps and ignored that Hamblin took over that project.
21. For the year 2010 performance rating, Brameld breached the performance management operating standard in its entirety and rated [Dr Zaghloul's] performance as Meets Less ('ML'). As a result, [Dr Zaghloul] was denied tens of thousands of dollars.
22. On 9 March 2011, Habets threatened to impose a performance improvement plan ('PIP') to dismiss [Dr Zaghloul] if he did not volunteer to resign. Two weeks later, Brameld, on [Dr Zaghloul's] request, provided reasons for the ML rating and declined to discuss a complaint that those reasons were fabricated, telling him that it was Hill's decision.
23. On 13 April 2011, Howard told [Dr Zaghloul] that the decision to terminate his employment had been made at the "very top" and that there was no point resisting it. [Dr Zaghloul] was devastated, and it downed [sic] upon him that his career was over.
24. On 13 April 2011, [Dr Zaghloul] emailed Brameld, Habets, and Howard a grievance letter and complained that the rating was punitive and a set up for dismissal. Within seconds, [Dr Zaghloul] was "overwhelmed with anxiety". In the first medical report, Dr Yip diagnosed "reactive anxiety and depression." [Dr Zaghloul] went on sick leave and never returned to work ever since.
25. On 18 April 2011, Habets advised [Dr Zaghloul] that the PIP would commence upon his return to work without addressing the grievance letter. [Woodside] has been known to have employed PIP to dismiss its employees.
26. On 14 May 2011, [Dr Zaghloul] suffered a breakdown as he contemplated a return to work the day before and was hospitalised under the care of Dr Fischer. During hospitalisation, [Dr Zaghloul] closed down his small business; being unable to manage it.
27. On 26 May 2011, [Woodside] applied its 'salary continuance' policy. That policy excluded workplace injury. [Woodside's] job-related insurance policy was the applicable policy. [Dr Zaghloul] was denied statutory and contractual benefits.
28. On 19 September 2011, four month after his request for an investigation of bullying, [Dr Zaghloul] completed his witness statement to Meridian investigators, [Woodside's] consultant. Three weeks later, he was hospitalised for "re-living the trauma".
29. On 15 March 2012, Masson advised [Dr Zaghloul] that three out of 47 allegations were proven, and refused to provide the Meridian report for comment on the unproven 44 allegations. He did not inform [Dr Zaghloul] that the Meridian report included findings that [Woodside] (a) was on notice that [Dr Zaghloul] was at risk of a psychiatric injury and took no action; (b) breached its performance management operating standard, and (c) breached the Occupational Health and Safety Act 1984 (WA).
30. The Meridian report contained statements that blackened [Dr Zaghloul's] technical, professional and personal reputation. [Woodside's] employees made those statements with malicious intent to ridicule [Dr Zaghloul's] advice in the EMAIL.
31. On 23 April 2012, Masson demanded that [Dr Zaghloul] attend a psychiatric examination, disregarded his former lawyer's advice of the "high risk" of return to suicide thoughts and falling further into depression, and ceased his pay. [Dr Zaghloul] reluctantly submitted to the psychiatric examination. The following day after the examination, [Dr Zaghloul] was hospitalised, underwent electro-convulsive therapy ('ECT') and suffered cardiac arrhythmia, a serious adverse effect of ECT as defined in s 201 (2)(b) of the Mental Health Act 2014 (WA).
32. In or about late April 2012, [Woodside] retained [Dr Zaghloul's] law firm. Within a week, [Dr Zaghloul] was advised that he was "very likely to lose" an action against it.
33. On 16 November 2012, Feeley, [Dr Zaghloul's] former lawyer, pressured him to consent to transfer these proceedings to Perth after she received an independent forensic psychiatrist's opinion that the transfer would potentially "significantly damage his mental health with very uncertain unpredictable outcomes." Later, he was hospitalised.
34. On 22 November 2012, [Woodside] advised [Dr Zaghloul] of its intention to dismiss him using its salary continuance policy and Dr Edwards-Smith's report, and ignored his reply in a letter dated 28 December 2012 and email dated 4 February 2013.
35. On 31 January 2013, [Woodside] accepted liability for "anxiety and/ or depressive disorder ... resulting from unsatisfactory management of your work performance."
36. Five days later, Santostefano dismissed [Dr Zaghloul] by email. He was not provided with a program to return to work and had no adjustment made to his role. The dismissal came at the heels of this action and his 5 December 2012 application to WorkCover.
37. On 6 March 2013, [Dr Zaghloul] was involuntarily admitted to Sir Charles Gairdner emergency unit. The following day, he was transferred to Perth Clinic by ambulance.
38 Commencing in April 2013 and for the following 30 months, [Woodside] advanced a defence on the basis s 93K(4)(c) of the Compensation Act. That provision applied to workers with whole of person impairment up to 25%; [Dr Zaghloul's] was 57%.
39. On or about 7 May 2013, Bayly, another former lawyer of [Dr Zaghloul], duplicated this action with another, statute-barred, at the District Court, and advised [Dr Zaghloul] to consent to dismiss this action by consent and "focus on the District Court proceedings."
40. On 26 July 2013, [Dr Zaghloul] was declared bankrupt by a sequestration order. He lost his family home in a mortgagee auction and all assets accumulated through his life.
41. On 23 September 2013, [Dr Zaghloul] left Australia on medical advice to arrest further deterioration of the psychiatric illness after suffering severe agoraphobia and paranoia.
42. Since November 2015, [Woodside] refused to comply with costs order of its appeal. As a result, [Dr Zaghloul's] lawyers declined to represent him in this action.
WHEREFORE, [Dr Zaghloul] seeks damages for breach of contract.
43. It was a term and condition that the parties would comply with the Code of Conduct, Guidelines, Procedures, Operating Standards, and Controlled Documents ('Policies').
44. [Woodside] substantially breached the terms or the conditions of the contract by failing to strictly monitor, detect, or take corrective action from deviations from; command or enforce obedience of its Policies to protect [Dr Zaghloul] from the foreseeable risk of a psychiatric injury or its aggravation, deterioration, or exacerbation.
45. In breach of the contract, amongst others, it (a) dismissed [Dr Zaghloul] using its (inapplicable) salary continuance policy, or by removing the duties of the TA, which constituted dismissal under s 386(c) of the FW Act; (b) reduced [Dr Zaghloul's] FAR without agreement; (c) denied PBP without a review of his performance-which was an incentive bonus linked to and conditional on the performance of both parties-against the performance agreement; (d) failed to reply to his grievance against the ML performance rating; (e) took unreasonable (11 months) time to advise the outcome of the investigation; and (f) did not honestly report the outcome of the investigation.
Further or in the alternative, [Dr Zaghloul] seeks an order for damages as a result of [Woodside's] breach of the statutory duty owed to him.
46. [Woodside] failed to perform positive duties in its Policies to avoid the risk of a psychiatric injury or its aggravation, and [Dr Zaghloul] suffered an injury of the kind that the duty was designed, and that harm was caused by the breach of duty.
47. By failing to take positive steps, [Woodside] breached s 19(1) of the Occupational Safety and Health Act 1984 (WA) in circumstances of gross negligence.
Further or in the alternative, [Dr Zaghloul] seeks an order for compensation pursuant to s 545(2)(b) of the Fair Work Act 2009 (Cth) for unjustified or unlawful adverse actions.
48. The EMAIL conveyed findings of fault and constituted a complaint in relation to employment and a workplace right within the meaning of s 341(1)(c)(i) of the FW Act.
49. Further or in the alternative, the EMAIL conveyed a political opinion within the meaning of s 351(1) of the FW Act; how a corporate citizen should conduct itself in society.
50. Further or in the alternative, the commencement of this action, and/ or the compensation application was a workplace right.
51. [Woodside] breached ss 340(1)(a)(ii), or 351(1) of FW Act by taking adverse action against [Dr Zaghloul] because he exercised workplace right(s) in six ways.
52. First, it organised to dismiss, within the meaning of s 342(2)(b), [Dr Zaghloul] using its (inapplicable) salary continuance policy and insisting on the psychiatric examination at a time when [Dr Zaghloul] had clearly not reached maximum medical improvement.
53. Second, it injured, within the meaning of s 342(1)(b), him by causing a recognised psychiatric injury or its aggravation; reduction of pay; or removal of his workload.
54. Third, it altered [Dr Zaghloul's] role to his prejudice, within the meaning of s 342(1)(c), in that the manner of removing the TA duties by reducing his job security, status, rank, or prestige and disappointing his expectations of an extended career in engineering.
55. Fourth, it discriminated against [Dr Zaghloul] for making a political opinion s 342(1)(d) by the substantial breach of terms of the contract and subjecting him to bullying within the meaning of s 789FD of the FW Act.
56. Fifth, it dismissed [Dr Zaghloul] by email in contravention of s 117 of the FW Act.
57. Sixth, by ceasing salary continuance payment, [Woodside] contravened s 343 of the FW Act in that the action was taken with an intent to coerce [Dr Zaghloul] to attend the psychiatric examination, and the exertion of the pressure was unlawful.
Further or in the alternative, [Dr Zaghloul] seeks an order for damages pursuant to s 46PO(4) of Australian Human Rights Commission Act 1986 (Cth) for discrimination.
58. The dismissal without making reasonable adjustment constituted direct discrimination against [Dr Zaghloul] on the ground of disability and in breach of s 15(2)(b), (c) or (d) of the Disability Discrimination Act 1992 (Cth). Because the psychiatric examination was based on a discriminatory conduct, it follows that the dismissal was unlawful.
59. The demand to attend a psychiatric examination constituted indirect discrimination against [Dr Zaghloul] in breach of s 15(2)(d) of the Disability Discrimination Act.
60. [Woodside's] failure to enforce its Policies constituted discrimination in contravention of s 56(1)(d)(iii) of Occupational Safety and Health Act 1984 (WA).
61. The significant (11 months) delay to provide [Dr Zaghloul] with the outcome of the investigation constituted discrimination for the purposes of s 56 (1)(d) and in breach of ss 23K(2)(a) or (b) of the Occupational Safety and Health Act 1984 (WA).
Further or in the alternative, [Dr Zaghloul] seeks damages pursuant to ss 243(e), 236, or 237(1), (2) of the Australian Consumer Law 2010 (Cth) ('ACL') or equitable compensation for conduct, which was in all the circumstances, unconscionable.
62. It was unconscionable to, among others (a) promise an improvement of the workplace environment while preparing for PIP; (b) impose a protracted bullying campaign; (c) elongate these proceedings; (c) interfere with [Dr Zaghloul's] contract with his lawyers; (d) coerce him to attend a psychiatric examination with the dismissal in mind; (e) fail to discipline the perpetrators of conduct which constituted offences under the laws, and (f) fund their defence in other proceedings.
Further or in the alternative, [Dr Zaghloul] seeks an order for damages in Common Law for intentional infliction of emotional harm.
63. [Woodside] owed [Dr Zaghloul] a duty for the purposes of s 19(1) of Occupational Safety and Health Act 1984 (WA) not to expose him to foreseeable risk of physical or mental injury and provide, maintain and enforce a safe system of work and environment to ensure that he performed his duties without risk of psychological hazards.
64. It should have been obvious to, or in the contemplation of, a reasonable employer in the position of [Woodside], that the referral to a psychologist, [Dr Zaghloul's] complaints of stress, the multiple sick leave after the EMAIL, the adverse performance rating, the threats of dismissal, and the substantial breach of its Policies were of such nature that a psychiatric injury or its aggravation was a natural or probable consequence.
65. [Woodside's] actions or failure to enforce its Policies operated as a substantial cause of foreseeable risk of psychiatric injury or its aggravation. Being an employment relationship, the harm was within [Woodside's] scope of liability. But for the breach, [Dr Zaghloul] would not have suffered loss and damage.
66. [Woodside's] actions or omissions were calculated to induce the psychiatric injury.
IN CONSEQUENCE TO THE SAID CAUSES OF ACTIONS, collectively or in the alternative individually or in combination, [Dr Zaghloul] has suffered severe and chronic recognised psychiatric injury or its aggravation and disabilities, loss and damage and seeks damages for:
(1) Past loss of earnings in the amount of not less than $ 2,145,000
(2) Past medical, medication, hospitalisation, and ambulance $ 48,500
(3) Future loss of earning capacity in an amount of not less than $ 7,148,400
(4) Provisions for future medical, medication, hospital $ 182,360
(5) Pure economic loss of not less than $ 1,192,830
(6) Pre-judgement [sic] interest on any judgement [sic] pursuant to ss 51A(1)(a) and 52 of the Federal Court of Australia Act 1976 (Cth), or s 547(2) of the Fair Work Act at a rate of 8.75% from September 2009.
(7) Aggravated damages for pain and suffering; humiliation; loss of amenities in life; and aggravation of the psychiatric illness in an amount of not less than $ 400,000
(8) Exemplary damages for setting out to send [Dr Zaghloul] in a tail spin by a pattern of conduct and showing no remorse when [Dr Zaghloul] was most vulnerable in an amount not less than $ 300,000
(9) Costs