Hardeman v Children's Medical Research Institute [2007] NSWIRComm 189

Hardeman v Children's Medical Research Institute [2007] NSWIRComm 189

The respondent's trading activities are found to be insubstantial relative to its overall activities and charitable purpose. Its financial activities, while generating significant revenue, are passive and do not amount to commercial dealing in finance. The respondent does not devote substantial internal resources or expertise to financial activity, relying on external advisors. Consequently, it is not a trading or financial corporation for the purposes of s 51(xx) of the Constitution, and the Industrial Relations Commission retains jurisdiction.

Jurisdiction
Australia
Judgment Date
24 September 2007
Procedural Posture
Application Under S 106 Industrial Relations Act 1996 / Full Bench Judgment on Jurisdictional Challenge
Outcome
Notice of motion raising the 'constitutional corporation' issue dismissed; respondent not a constitutional corporation; respondent to pay applicant's costs of that issue.
Legal Topics
['unfair Contract' 'jurisdictional Challenge' 'constitutional Corporation' 'trading Corporation' 'financial Corporation']
['employment Law' 'constitutional Law' 'corporations Law'] ['unfair Contract' 'jurisdictional Challenge' 'constitutional Corporation' 'trading Corporation' 'financial Corporation']

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Procedural Posture

Application Under S 106 Industrial Relations Act 1996 / Full Bench Judgment on Jurisdictional Challenge

Legal Issues

  1. 1 ['Is the respondent a constitutional corporation for purposes of s 51(xx) of the Australian Constitution?' 'Is the respondent a trading corporation?' 'Is the respondent a financial corporation?' "Does s 16(1) Workplace Relations Act 1996 (Cth) remove Commission's jurisdiction in respect of the respondent?"]

Ratio Decidendi

The respondent's trading activities are found to be insubstantial relative to its overall activities and charitable purpose. Its financial activities, while generating significant revenue, are passive and do not amount to commercial dealing in finance. The respondent does not devote substantial internal resources or expertise to financial activity, relying on external advisors. Consequently, it is not a trading or financial corporation for the purposes of s 51(xx) of the Constitution, and the Industrial Relations Commission retains jurisdiction.

Court Disposition

Notice of motion raising the 'constitutional corporation' issue dismissed; respondent not a constitutional corporation; respondent to pay applicant's costs of that issue.

Orders

  • ["Respondent's notice of motion raising the 'constitutional corporation' issue dismissed." "Respondent shall pay applicant's costs as to the Full Bench proceedings and the proceedings at first instance."]