Cosmetic Suppliers Pty Ltd & Anor v Great Scott International Pty Ltd & Anor [2007] NSWIRComm 257

Cosmetic Suppliers Pty Ltd & Anor v Great Scott International Pty Ltd & Anor [2007] NSWIRComm 257

The arrangement was unfair as SAA lacked a period of notice for termination; six months’ notice or payment in lieu was appropriate. Principle of mitigation should be applied but income earned post-termination was not substantial and may be disregarded. Inclusion of Mr Krauss’ wages and superannuation was proper because he was the alter ego of GSI. No error in findings or orders; appeal dismissed.

Jurisdiction
Australia
Judgment Date
16 October 2007
Procedural Posture
Appeal / Judgment on Appeal
Outcome
leave to appeal granted, appeal dismissed
Legal Topics
['unfair Contract' 'notice of Termination' 'mitigation of Loss' 'variation of Arrangement' 'natural Justice']
['industrial Law'] ['unfair Contract' 'notice of Termination' 'mitigation of Loss' 'variation of Arrangement' 'natural Justice']

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Procedural Posture

Appeal / Judgment on Appeal

Legal Issues

  1. 1 ['Whether Mr Krauss was a party to a contractual arrangement under s 106 of the Industrial Relations Act 1996' 'Whether compensation awarded should include wages and superannuation paid to Mr Krauss' 'Whether the arrangement was unfair due to lack of notice of termination' 'Whether application of mitigation principle was correct' 'Whether appellants denied natural justice']

Ratio Decidendi

The arrangement was unfair as SAA lacked a period of notice for termination; six months’ notice or payment in lieu was appropriate. Principle of mitigation should be applied but income earned post-termination was not substantial and may be disregarded. Inclusion of Mr Krauss’ wages and superannuation was proper because he was the alter ego of GSI. No error in findings or orders; appeal dismissed.

Court Disposition

leave to appeal granted, appeal dismissed

Orders

  • ['Leave to appeal granted' 'Appeal dismissed' "Appellants to pay respondents' costs of appeal as agreed or as assessed" "Appellants to pay respondents' costs of notice of motion for security for costs heard before Backman J on 28 February 2007 as agreed or assessed"]