Collinson v Paxus Australia Pty Limited (No 3) [2022] NSWSC 438

Collinson v Paxus Australia Pty Limited (No 3) [2022] NSWSC 438

The Deed of Release was not a general release to be read down; its definition of Claim was broad but closely tethered to the plaintiff's employment with Paxus, his services for Transport, the alleged bullying complaints and related matters. On its proper construction, the release extended beyond the Fair Work Commission proceedings and included possible negligence claims by the plaintiff against Transport and Career for psychiatric injury. The Settlement Agreement was also clear and unambiguous: Paxus, Transport and Career released each other from claims arising directly or indirectly from the plaintiff's provision of services to Transport, and Paxus' contribution cross-claims fell...

Jurisdiction
Australia
Judgment Date
12 April 2022
Procedural Posture
Common Law Proceedings Involving Determination of Separate Questions Under R 28.2 of the Uniform Civil Procedure Rules 2005 (nsw) / Separate Questions Determined Before Trial
Outcome
The revised Deed of Release separate question and both Settlement Agreement separate questions were answered Yes. Paxus was ordered to pay Transport and Career's costs of the Settlement Agreement separate questions, and costs of the Deed of Release separate question were reserved.
Legal Topics
['construction of Deed of Release' 'construction of Settlement Agreement' 'release and Bar to Proceedings' 'contribution Cross Claim' 'unconscionable Reliance on Contractual Rights' 'separate Questions']
['contracts' 'equity' 'civil Procedure' 'workers Compensation' 'negligence'] ['construction of Deed of Release' 'construction of Settlement Agreement' 'release and Bar to Proceedings' 'contribution Cross Claim' 'unconscionable Reliance on Contractual Rights' 'separate Questions']

Case Brief

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Procedural Posture

Common Law Proceedings Involving Determination of Separate Questions Under R 28.2 of the Uniform Civil Procedure Rules 2005 (nsw) / Separate Questions Determined Before Trial

Legal Issues

  1. 1 ['Whether the Deed of Release, on its proper construction, extinguished any rights the plaintiff may have had to bring proceedings against Transport and/or Career for damages for psychiatric injury sustained due to alleged bullying and verbal abuse at work.' 'Whether the Settlement Agreement operated as a bar to Paxus pursuing the first cross-claim against Transport.' 'Whether the Settlement Agreement operated as a bar to Paxus pursuing the first cross-claim against Career.' 'Whether the Settlement Agreement separate questions could be determined before determining whether the plaintiff was entitled to equitable relief from the operation and effect of the Deed of Release.' 'Whether it would be unconscionable for Transport and Career to rely on the Settlement Agreement where Paxus had not obtained legal advice and did not understand the effect of the work injury damages carve-out.']

Ratio Decidendi

The Deed of Release was not a general release to be read down; its definition of Claim was broad but closely tethered to the plaintiff's employment with Paxus, his services for Transport, the alleged bullying complaints and related matters. On its proper construction, the release extended beyond the Fair Work Commission proceedings and included possible negligence claims by the plaintiff against Transport and Career for psychiatric injury. The Settlement Agreement was also clear and unambiguous: Paxus, Transport and Career released each other from claims arising directly or indirectly from the plaintiff's provision of services to Transport, and Paxus' contribution cross-claims fell...

Court Disposition

The revised Deed of Release separate question and both Settlement Agreement separate questions were answered Yes. Paxus was ordered to pay Transport and Career's costs of the Settlement Agreement separate questions, and costs of the Deed of Release separate question were reserved.

Orders

  • ['The separate questions be answered as follows: the Deed of Release, on its proper construction, had the effect of extinguishing any rights the plaintiff may have had to bring proceedings against Transport and/or Career for damages for psychiatric injury sustained due to alleged bullying and verbal abuse: Yes.'...