Fair Work Ombudsman v Transpetrol TM AS (No 2) [2019] FCA 608

Fair Work Ombudsman v Transpetrol TM AS (No 2) [2019] FCA 608

The Ombudsman unreasonably sought penalties that the circumstances did not warrant and took an overzealous position, causing the respondent to incur unnecessary costs. This unreasonable conduct enlivened the court’s power under s 570(2) of the Fair Work Act 2009, justifying an order that the applicant pay 50% of the respondent's costs.

Parties
Applicant: Fair Work Ombudsman; Respondent: Transpetrol TM AS
Jurisdiction
Australia
Judgment Date
03 May 2019
Procedural Posture
Civil / Costs Application Following Dismissal of Substantive Proceeding
Outcome
Application for costs granted in part
Legal Topics
Costs Orders, Extraterritoriality, Set Off Under Employment Contracts, General Deterrence, Application of Fair Work Act to International Shipping
Employment Law Industrial Relations Shipping Law Costs Orders Extraterritoriality Set Off Under Employment Contracts General Deterrence Application of Fair Work Act to International Shipping

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Parties

Fair Work Ombudsman

Applicant

Transpetrol TM AS

Respondent

Procedural Posture

Civil / Costs Application Following Dismissal of Substantive Proceeding

Legal Issues

  1. 1 Whether the applicant should pay costs after dismissal of the proceedings under the Fair Work Act 2009
  2. 2 Whether the proceeding was instituted or continued without reasonable cause or due to unreasonable act or omission
  3. 3 Interpretation of s 570(2) of the Fair Work Act 2009 regarding costs

Ratio Decidendi

The Ombudsman unreasonably sought penalties that the circumstances did not warrant and took an overzealous position, causing the respondent to incur unnecessary costs. This unreasonable conduct enlivened the court’s power under s 570(2) of the Fair Work Act 2009, justifying an order that the applicant pay 50% of the respondent's costs.

Court Disposition

Application for costs granted in part

Orders

  • The applicant pay 50% of the respondent's costs.