Naidu v Group 4 Securitas Pty Ltd & Anor [2006] NSWSC 144

Naidu v Group 4 Securitas Pty Ltd & Anor [2006] NSWSC 144

Group 4's contract with the plaintiff contained an implied term that it would not, by its servants or agents, intimidate, racially or personally vilify him, subject him to demeaning, harassing or abusive conduct or threats of violence, and would so far as reasonably practicable protect him from such conduct in the course of employment. Mr Chaloner's conduct breached that term and caused the very distress, humiliation, stress, anxiety and unhappiness the term was intended to prevent, so damages for breach of contract were recoverable, but the appropriate amount was $100,000 rather than $150,000 to avoid double counting. Aggravated damages against Group 4 for pre-illness suffering were not...

Jurisdiction
Australia
Judgment Date
15 March 2006
Procedural Posture
Common Law Civil Claim for Psychiatric Illness, Tort and Breach of Contract Damages / Judgment on Outstanding Damages, Contribution, Workers Compensation Act 1987 S151 Z Adjustment, Costs and Form of Orders Following the Principal Judgment
Outcome
Judgment for the plaintiff against News Limited in the sum of $1,946,189.40 plus costs; judgment against Group 4 Securitas Pty Limited to await agreement or determination of interest on the breach of contract damages, with indemnity costs payable by both defendants on and from 26 March 2004.
Legal Topics
['psychiatric Injury Caused by Workplace Intimidation and Humiliation' 'vicarious Liability and Course of Employment' "employer's Contractual Obligation to Provide a Safe Place of Work" 'damages for Distress and Humiliation for Breach of Employment Contract' 'aggravated and Exemplary Damages' 'contribution Between Defendants' 'workers Compensation Act 1987 S151 Z Reduction' 'indemnity Costs After Offer of Compromise']
['tort' 'employment Law' 'contract Law' 'workers Compensation' 'civil Procedure' 'costs'] ['psychiatric Injury Caused by Workplace Intimidation and Humiliation' 'vicarious Liability and Course of Employment' "employer's Contractual Obligation to Provide a Safe Place of Work" 'damages for Distress and Humiliation for Breach of Employment Contract' 'aggravated and Exemplary Damages' 'contribution Between Defendants' 'workers Compensation Act 1987 S151 Z Reduction' 'indemnity Costs After Offer of Compromise']

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Procedural Posture

Common Law Civil Claim for Psychiatric Illness, Tort and Breach of Contract Damages / Judgment on Outstanding Damages, Contribution, Workers Compensation Act 1987 S151 Z Adjustment, Costs and Form of Orders Following the Principal Judgment

Legal Issues

  1. 1 ["Whether the defendants' contributions should be assessed under Part 3 of the Law Reform (Miscellaneous Provisions) Act 1946." 'Whether Hunter Area Health Service v Marchlewski & Anor [2000] NSWCA 294 precluded aggravated damages for suffering caused by deliberate conduct leading to psychiatric illness.' 'Whether Group 4 was liable in contract for distress, humiliation and intimidation inflicted on the plaintiff in breach of implied employment obligations.' 'Whether damages for breach of the employment contract should be substantial or nominal.' 'How s151Z(2) of the Workers Compensation Act 1987 affected the damages recoverable from News Limited.' 'Whether the plaintiff was entitled to indemnity costs after the defendants rejected the offer of compromise.']

Ratio Decidendi

Group 4's contract with the plaintiff contained an implied term that it would not, by its servants or agents, intimidate, racially or personally vilify him, subject him to demeaning, harassing or abusive conduct or threats of violence, and would so far as reasonably practicable protect him from such conduct in the course of employment. Mr Chaloner's conduct breached that term and caused the very distress, humiliation, stress, anxiety and unhappiness the term was intended to prevent, so damages for breach of contract were recoverable, but the appropriate amount was $100,000 rather than $150,000 to avoid double counting. Aggravated damages against Group 4 for pre-illness suffering were not...

Court Disposition

Judgment for the plaintiff against News Limited in the sum of $1,946,189.40 plus costs; judgment against Group 4 Securitas Pty Limited to await agreement or determination of interest on the breach of contract damages, with indemnity costs payable by both defendants on and from 26 March 2004.

Orders

  • ["Contribution between the defendants is assessed under Part 3 of the Law Reform (Miscellaneous Provisions) Act 1946 according to what is just and equitable having regard to each defendant's responsibility for the plaintiff's damage." 'News Limited is liable for $1,796,189.40 in compensatory damages after the...