Thomson & anor v Societe Generale Australia Limited & anor (No 3) [2006] NSWIRComm 397

Thomson & anor v Societe Generale Australia Limited & anor (No 3) [2006] NSWIRComm 397

Because the swaps transaction was an integral part of the Newcrest foreign exchange transaction rather than collateral like a commodities transaction, the $500,000 swaps revenue should, as a matter of fairness, be counted in calculating Mr Thomson's remuneration entitlement. However, only 75% of the Newcrest foreign exchange revenue should be taken into account because 25% was not taken into account by SGAL for any purpose in the year ended 31 December 2001 and there was no suggestion of connivance to disentitle Mr Thomson. The agreed 12.5% deduction for transaction-specific overheads was accepted.

Jurisdiction
Australia
Judgment Date
15 December 2006
Procedural Posture
Application Under S 106 of the Industrial Relations Act 1996 / Further Proceedings Concerning Calculation of Compensation, Application of the Slip Rule, and Final Orders
Outcome
Swaps revenue to be counted, only 75% of the Newcrest foreign exchange revenue to be taken into account, the agreed 12.5% overheads deduction accepted, liberty to apply granted, and proceedings stood over.
Legal Topics
['calculation of Compensation' 'slip Rule' 'bonus Entitlement' 'foreign Exchange Transactions' 'swaps Transactions' 'overheads Deduction']
['industrial Relations' 'employment Law' 'contract of Employment'] ['calculation of Compensation' 'slip Rule' 'bonus Entitlement' 'foreign Exchange Transactions' 'swaps Transactions' 'overheads Deduction']

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Procedural Posture

Application Under S 106 of the Industrial Relations Act 1996 / Further Proceedings Concerning Calculation of Compensation, Application of the Slip Rule, and Final Orders

Legal Issues

  1. 1 ["Whether revenue generated by a swaps transaction carried out in conjunction with the Newcrest transaction should be counted for the purpose of calculating Mr Thomson's remuneration entitlement under the special conditions of his contract of employment." 'Whether only 75% of the revenue generated by the Newcrest foreign exchange transaction should be taken into account because 25% was deferred beyond 31 December 2001.' "What deduction should be allowed for the bank's overheads specific to each transaction."]

Ratio Decidendi

Because the swaps transaction was an integral part of the Newcrest foreign exchange transaction rather than collateral like a commodities transaction, the $500,000 swaps revenue should, as a matter of fairness, be counted in calculating Mr Thomson's remuneration entitlement. However, only 75% of the Newcrest foreign exchange revenue should be taken into account because 25% was not taken into account by SGAL for any purpose in the year ended 31 December 2001 and there was no suggestion of connivance to disentitle Mr Thomson. The agreed 12.5% deduction for transaction-specific overheads was accepted.

Court Disposition

Swaps revenue to be counted, only 75% of the Newcrest foreign exchange revenue to be taken into account, the agreed 12.5% overheads deduction accepted, liberty to apply granted, and proceedings stood over.

Orders

  • ['Liberty to apply granted in the event that no consensus on quantum of final orders is achieved.' 'The proceedings are stood over accordingly.']