Murphy v Westpac Banking Corporation [2014] FCA 1104

Murphy v Westpac Banking Corporation [2014] FCA 1104

The Court held that contractual employment terms (including for bonuses, incentives, notice, and secondment) are to be constructed objectively, with policies incorporated only where the terms or conduct support such incorporation. Most applicants were not entitled to damages for misleading or deceptive conduct, deceit, or negligence as claims failed on the facts or were otherwise not actionable under the Trade Practices Act in context. However, Mr Wittenberg established entitlement to damages for breach of contract (TIP/MTIP and notice). Ms Lavars was wrongfully dismissed when not retrenched at the end of secondment; she is entitled to damages under the redundancy policy (based on base...

Parties
Applicant: Louise Murphy; Applicant: Stuart Moore; Applicant: Danielle Lavars; Applicant: Corey Wittenberg; Applicant: William Lawson; Applicant: Lucky Poulos; Applicant: Paul Smith; Respondent: Westpac Banking Corporation
Jurisdiction
Australia
Judgment Date
14 October 2014
Procedural Posture
Civil Employment/contracts/redundancy / Post Trial Judgment With Final Orders Pending Resolution of Damages and Costs
Outcome
Partial judgment - Orders for damages in favour of Mr Wittenberg and Ms Lavars; otherwise, applicants' claims mostly dismissed (except for contract claims previously conceded by respondent). Parties to agree orders and costs or to be heard further.
Legal Topics
Employment Contracts, Redundancy, Wrongful Dismissal, Misleading or Deceptive Conduct, Bonuses, Retention Incentives, Secondment, Negligence, Breach of Contract, Measure of Damages
Employment Law Contract Law Tort Law Trade Practices Damages Employment Contracts Redundancy Wrongful Dismissal +7 more

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Parties

Louise Murphy

Applicant

Stuart Moore

Applicant

Danielle Lavars

Applicant

Corey Wittenberg

Applicant

William Lawson

Applicant

Lucky Poulos

Applicant

Paul Smith

Applicant

Westpac Banking Corporation

Respondent

Procedural Posture

Civil Employment/contracts/redundancy / Post Trial Judgment With Final Orders Pending Resolution of Damages and Costs

Legal Issues

  1. 1 Were the applicants entitled to contractual or statutory redundancy and/or notice payments upon termination?
  2. 2 Did Westpac (as SGB's successor) breach the applicants' employment contracts, including bonus/incentive schemes?
  3. 3 Were the applicants misled or deceived in contravention of ss 52 or 53B, Trade Practices Act?

Ratio Decidendi

The Court held that contractual employment terms (including for bonuses, incentives, notice, and secondment) are to be constructed objectively, with policies incorporated only where the terms or conduct support such incorporation. Most applicants were not entitled to damages for misleading or deceptive conduct, deceit, or negligence as claims failed on the facts or were otherwise not actionable under the Trade Practices Act in context. However, Mr Wittenberg established entitlement to damages for breach of contract (TIP/MTIP and notice). Ms Lavars was wrongfully dismissed when not retrenched at the end of secondment; she is entitled to damages under the redundancy policy (based on base...

Court Disposition

Partial judgment - Orders for damages in favour of Mr Wittenberg and Ms Lavars; otherwise, applicants' claims mostly dismissed (except for contract claims previously conceded by respondent). Parties to agree orders and costs or to be heard further.

Orders

  • The parties are to seek to agree proposed short minutes of order which give effect to these reasons for judgment and also deal with costs by 11 November 2014.
  • If agreement cannot be reached, the parties should file and serve by 11 November 2014 their respective proposed short minutes of order together with an outline of written submissions in support, not exceeding 20 pages.