Leon Laidley Pty Ltd v Transport Workers Union of Australia & Ors [1980] FCA 22
Federal Court of Australia
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CATCHWORDS
Trade Practices - secondary boycotts - interlocutory
injgunction whether State union properly joined as a
party - whether State union a person within the meaning
of s. 45D - whether respondents acting in concert with
each other - whether conduct hindered or prevented supply
of bulk fuel to applicant - whether conduct engaged in
for the purpose of causing substantial loss or damaz
to the business of the applicant - whether dominant
purpose related to conditions of employment - whether
conduct likely to have the effect of causing substantial
loss or damage - meaning of "likely" - establishment of
prima facie case - balance of convenience,
Trade Practices Act 1974 (Cth.) ss. 45D, 80
LEON LAIDELY PTY. LIMITED v. THE TRANSPORT WORKERS
UNION OF AUSTRALIA & ORS.
NO. G. 17 of 1980
LOCKHART J.
SYDNEY
4 MARCH 1980
IN THE FEDERAL COURT OF AUSTRALIA )
NEW SOUTH WALES DISTRICT REGISTRY No. G 17 of 1980
GENERAL DIVISION
IN THE MATTER of the Trade Practices Act, 1974
LEON LAIDELY PTY. LTD.
Applicant
AND:
THE TRANSPORT WORKERS UNION OF AUSTRALIA
AND:
THE TRANSPORT WORKERS UNION OF AUSTRALIA,
NEW_SOUTH WALES BRANCH
AND:
JOHN BARRY McLEAN
AND:
PETER _OSBORNE
AND:
RAYMOND HUTCHINSON
AND:
RONALD GANNON
AND:
R. PRITCHARD (a male)
Respondents
ORDER
JUDGE MAKING ORDER: LOCKHART J.
WHERE MADE: SYDNEY
DATE OF ORDER: 4 MARCH 1980
UPON the applicant by its counsel undertaking to the court to
pay to any party adversely affected by the interlocutory
injunctions such compensation (if any ) as the court thinks just,
in such manner as the court directs:-
THE COURT ORDERS THAT:
1, The respondent Transport Workers Union of Australia,
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New South Wales Branch, its servants and agents, and the
respondents, John Barry McLean, Peter Osborne, Raymond
Hutchinson and Ronald Gannon be restrained until the
determination of the proceeding or further order from
engaging in conduct, in concert with any person, that
hinders or prevents the supply of petroleum products
ancluding bulk fuel by Amoco Australia Limited to the
applicant where such conduct is engaged in for the
purpose and would have or be likely to have the effect
of causing substantial loss or damage to the business
of the applicant of a purchaser and distributor of
petroleum products, including bulk fuel;
2. The costs of all parties be costs in the proceeding;
3. Liberty be reserved to any party to apply on two days!
notice.
and
IN THE FEDERAL COURT OF AUSTRALIA
NEW _SOUTH WALES DISTRICT REGISTRY No. G 17 of 1980
GENERAL DIVISION
IN THE MATTER of the Trade Practices
Act, 1974
LEON LAIDELY PTY. LTD.
Applicant
AND:
THE TRANSPORT WORKERS UNION OF AUSTRAI TIA
AND:
THE TRANSPORT WORKERS UNION OF AUSTRALLA,
NEW _ SOUTH WALES BRANCH
AND:
JOHN BARRY McLEAN
AND:
PETER OSBORNE
AND:
RAYMOND HUTCHINSON
AND:
RONALD GANNON
AND:
R. PRITCHARD (a male)
Respondents
REASONS FOR JUDGMENT
4 March 1980 LOCKHART J.
Leon Laidely Pty. Ltd. ("the applicant") seeks
interlocutory injunctions under s. 80 of the Trade Practices
Act 1974 ("the Act") to restrain the respondents, The
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Transport Workers Union of Australia, New South Wales branch,
John Barry McLean, Peter Osborne, Raymond Hutchinson and
Ronald Gannon from contravening s. 45D. Interlocutory
relief 1s not sought against the respondents, The Transport
Workers Union of Australia or R. Pritchard (a male).
It 1s common ground that the respondents, McLean,
Osborne, Hutchinson and Gannon are members of The Transport
Workers Union of Australia, New South Wales branch ("The
State union"),
Most of the facts are not in dispute.
The applicant 1s a distributor of bulk fuel. It
purchases its supplies from Amoco Australia Limited ("Amoco")
which are made available from its depots at Banksmeadow and
the B.P. Terminal at Port Kembla. The applicant supplies some
four hundred customers in New South Wales from its depot at
Leppington. The bulk fuel is collectedand distributed by
the applicant in its own vehicles. The applicant has
purchased bulk fuel from Amoco since 1968.
On 19 February 1980, Amoco wrote a letter to the
applicant "confirming that Amoco 1s unable to supply your
company with petroleum products at present. As you are aware,
our inability to supply is caused by Union action beyond our
control."
No supplies of bulk fuel have been received by the
applicant from Amoco since 13 February 1980. The applicant
estimates the loss to its business at about $1,155.00 for
each day on which it 1s unable to obtain supplies from Amoco,
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There are eight competitors of the applicant who
carry on a similar business in New South Wales who have
continuity of supply.
On 14 February 1980 a driver employed by the
applicant told Mr. Laidely, the managing director of the
applicant, that when he was delivering fuel to a service
station at Canley Vale operated by Mr. Tony Molluso, an
Amoco driver approached him and said:
"Did that fuel come out of the depot?
If at dad, you'll hear all about it.
We'll soon stop that."
Later that day Mr. Laidely telephoned the
respondent Osborne, the delegate of The State union at the
Banksmeadow terminal and told him of this conversation. Mr.
Laidely said to Mr. Osborne:
"Tony Molluso is an old customer
of mine. He has got the other Amoco
site on the Horsely Drive at Smithfield.
He wanted to buy the old derelict B.P.
site at Canley Vale and I helped him
financially, I have an interest in the
site. My interest is $30,000.00 with
which T put in underground storage tanks
and bowsers. I have been delivering to
his place for a while. It was previously
a B.P. station and we purchased it at
auction when thirteen other sites were sold.
I am delivering here with Amoco trucks
and I am using T.W.U. members to deliver
here and the fuels coming from my depot.
I can't see where there is any problem. I
approached the firm to assist me financially
in painting up the service station to operate
under the Amoco banner, The person approached
at Amoco was Ben Markovich."
Mr. Osborne said:
"Well thanks very much Leon for putting
us in the picture,"
o/h
On Friday 15 February 1980 at about 7.15 a.m.
Mr. A. V. Buck, the Terminal Manager of Amoco's Banksmeadow
terminal, was present in his office at the terminal when he
was approached by Mr. Osborne, Mr. Hutchinson and Mr. Gannon,
the latter two being co-delegates of Mr. Osborne of the New
South Wales union. Mr. Osborne said:
"There 1s a'stop work' meeting in
progress and this has been delayed
because we want to wait for the
shift workers to arrive. You will
be contacted again later."
At about 9.40 a.m. the same three men returned
to Mr. Buck's office and Mr. Osborne said:
"The 'stop work' meeting was due
to the action of Leon Laidely who
was seen delivering products to
an ex B.P. site at Canley Vale which
18 considered to be in the metropolitan
area. The T.W.U. organiser will not
be available ti11 Monday andit is
suggested that the company cease loading
Leon Laidely's vehicles until discussions
are held with the organiser."
The three men left Mr. Buck's office and later
returned. In the meantime, Mr. Buck had spoken to his
immediate superior at Amoco's head office. He said to Messrs.
Osborne, Hutchinson and Gannon:
"Due to legal problems under the Trade
Practices Act and the secondary boycott
clause, neither the company nor you may
impose bans of this nature. However, the
company will attempt to contact Mr.
Laidely to discuss the situation."
The three men then left Mr. Buck's office and
he saw them rejoin a group of Amoco's employees who had been
standing near his office since the first discussion that
morning at 7.15 a.m.
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and Gannon
said:
At about 10.40 a.m. Messrs. Osborne, Hutchinson
returned to Mr. Buck's office and Mr. Osborne
"We are now in dispute with the company
and we will meet again at 2.00 p.m. on
Monday with our organiser to discuss
the matter."
They then left Amoco's premises.
During one of the discussions between Messrs,
Buck, Osborne, Hutchinson and Gannon that day, Mr. Osborne
said:
"We are worried about Laidely delivering
fuel to service stations because I am
concerned about continuity of employment.
If he can deliver to one service station
then he can deliver to other service
stations in the metropolitan area."
Mr. Buck said:
"There 18 nothing to stop him delivering
to any of our sites such as Canterbury."
Mr. Osborne said:
"That would'nt be any good to us because
he is taking work off us and we don't want
to lose any more work than what we already
have,"
Some time on the same day, 15 February 1980,
Mr. Osborne telephoned Mr. Laidely and said:
"The men have gone on strike" or
"The men are out on the grass."
Mr. Laidely said:
"Peter, it's silly the fellows being
out on strike. Can't you get them to
go back to work and let's discuss this."
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Mr. Osborne said:
"What would you like to do. Would
you like to have a meeting to discuss
this."
Mr. Laidely said:
"T will have a meeting anywhere
at any time you want to discuss
the situation."
On Saturday 16 February, Mr. Osborne telephoned
Mr. Laidely and they made arrangements to meet at the
Banksmeadow terminal at 1.00 p.m. on Monday 18 February,
one hour before the time fixed for a meeting of Amoco's
drivers.
At about 1,00 p.m. on Monday 18 February, Messrs.
Laidely, Osborne, Gannon, Hutchinson and a Mr. Kevin Hughes
who is the New South Wales secretary of The Australian
Petroleum Agents and Distributors Association, had a
discussion. Mr. Mclean, an official of The State union
goined them later. Mr. Laidely mentioned that he had
invested a lot of money in Molluso'ts service station at
Canley Vale. Mr. McLean said that, by the applicant employing
its own drivers to drive the fuel tankers, he was encroaching
on the work of the Amoco drivers.
A little later that afternoon, Messrs. Osborne,
McLean, Gannon and Hutchinson left Mr, Buck's office, Mr.
Buck havang made his office available for the discussion,
and joined a number of Amoco drivers outside who were on
strike. Mr. McLean explained to the men what had been
discussed at the meeting and he outlined a proposal that
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had been discussed earlier between Messrs. Laidely, Hughes,
Osborne, McLean, Gannon and Hutchinson; and the meeting of
the men resolved not to accept that proposal. The proposal
was a suggestion by Mr. Hughes that Mr. Laidely give a written
undertaking to avert a similar situation arising in the future,
The men told Mr. Osborne that they proposed to remain in
dispute until 17 April, 1980.
Messrs Osborne, McLean, Gannon and Hutchinson
then returned to Messrs. Laidely and Hughes. Mr. Buck joined
them at that point. Mr. Osborne said that the men had resolved
to remain in dispute until 17 April 1980. Further discussion
then ensued which led to no solution of the problem. Mr.
Osborne then said that the men would be on strike until 17
April when they would have their next 011 delegates' meeting.
The meeting then ended.
A little later that day, Mr. Buck spoke to Mr.
Batchelor and later requested Messrs. Osborne, McLean,
Gannon and Hutchinson to return to his office. They did so
and Mr. Buck said to them:
"Due to a situation beyond our control
we will be unable to supply Leon Laidely
because a force majeure, due to a situation
which has beencreated by the union,"
Mr. McLean then said:
"Because of the company's action the men
will return to work immediately."
Messrs. Osborne, McLean, Gannon and Hutchinson
then left Mr. Buck's office.
Later that afternoon, Messrs. Osborne, Gannon
and Hutchinson returmi and said to Mr. Buck:
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"The men should return to work
at normal starting time on Tuesday
19 February."
At normal starting time on Tuesday 19 February
all employees of Amoco rostered to start work reported for
duty. No work was performed by any tanker driver employed
by Amoco between the commencement of working hours on Friday
15 February and the normal starting time on Tuesday 19
February. Those drivers ancluded Messrs. Osborne, Hutchinson
and Gannon,
On 19 February, Mr. Ruben Markovich, the New
South Wales branch manager of Amoco telephoned Mr, Laidely
and saids
"T am unable to supply you because of a
force majeure situation created by the
union."
Mr. Laidely said:
"That's no good. Please give it to me in writing."
Later that day, there was delivered to Mr. Laidely
the letter dated 19 February 1980 and signed by Mr. Markovich,
the material portion of which I have set out earlier.
The applicant instituted these proceedings on
22 February.
The applicant claims that The State union and
Messrs. McLean, Osborne, Hutchinson and Gannon (to whom
I shall refer collectively as "the respondents") have
contravened s. 45D of the Act in that each of them has in
concert with the other engaged in conduct that hinders or
Se]
prevents the supply of bulk fuel by Amoco to the applicant
and that the conduct is engaged in for the purpose, and
would have or be likely to have the effect, of causang
(a) substantial loss or damage to the
business of the applicant; or
(b) a substantial lessening of competition
in the market in which the applicant
supplies or acquires bulk fuel,
The respondents say that they engaged in the
relevant conduct for the sole purpose of protecting the jobs
of Amoco tanker drivers including the personal respondents;
alternatively, that i1f this were not the sole purpose, it was
the dominant purpose and is substantially related to the
conditions of employment or working conditions of the Amoco
tanker drivers including the personal respondents, so that by
virtue of s. 45D (3) (a) there 1s no contravention of the
section.
The respondents assert that The State union has
been improperly joined as a party as it 1s not a"person"wathin
the meaning of s. 45D. I shall consider this point first.
In the well-known decision of the House of Lords
in Taff Vale Railway Co. v. Amalgamated Society of Railway
Servants 1901 A.C. 426 their Lordships decided that a trade
union registered under The Trade Unions Acts of 1871 and 1876
(U.K.) may be sued in its registered name. Farwell J., whose
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judgment was approved by the House of Lords, said at p. 4293
"Now, although a corporation and an
individual or individuals may be the
only entity known to the common law
who can sue or be sued, 1t 1s competent
to the Legislature to give to an
association of individuals which is
neither a corporation nor a partnership
nor an individual a capacity for owning
property and acting by agents, and such
capacity in the absence of express
enactments to the contrary involves
the necessary correlative of liability
to the extent of such property fr the
acts and defaults of such agents. It
1s beside the mark to say of such an
association that it is unknown to the
common law."
In Egan v. Barrier Branch of Amalgamated Miners!
Association (1917) 17 S.R. (N.S.W.) 243 the Full Court of
the Supreme Court of New South Wales held that a trade union
was a quasi-corporate body that could be sued civilly for
conspiring with its own members or officers to commit a tort.
The Chief Justice said at p. 257:
"The Taff Vale Case showed, and it has never
been since questioned, that the effect of
the registration of trade unions under the
Act 1s to give them at least a quasi-
corporate status, which distinguishes between
the entity known as a trade union and the
andividuals who may chance to be its
members just as completely, for the present
purpose, as in the case of the difference
between a fully incorporated company under
the Companies Act and the individuals who
are its members."
The other members of the court agreed with the
Chief Justice on this point.
In Bonsor v. Musicians! Union 1956 A.C. 104, the
House of Lords held that a member of a trade union was
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entitled to maintain an action for damages for breach of
contract against the union in its registered name. Lord
MacDermott, Lord Keith of Avonholm and Lord Somervell of Harrow
decided that a registered trade union is not a jur.istic person
distinguishable at any point of time from the members of
which it 1s at that time composed, yet was capable of being
sued in its own name. Lord Morton of Henryton and Lord Porter
decided that a registered trade union was capable of
entering into contracts and of being sued as a legal entity
distinct from its members notwithstanding that it was not
an incorporated body.
In Williams & Ors, v. Hursey (1959) 103 C.L.R. 30
the High Court held that the Hobart Branch of the Waterside
Workers! Federation, a registered federal organisation, was
merely part of the federal organisation. It was not separately
registered as a trade union under Tasmanian law. At p. 53
Fullagar J., after citing the passage from the judgment of
Farwell J. in the Taff Vale Case which I have already
mentioned, said:
"It appears from this passage that
Farwell J. was not prepared to
describe the body in question as a
'corporation', though he attributed
to 1t essential characteristics of a
distinct juristic person. With all
respect to what 1s said by some of the
learned Lords in Bonsor v. Musicians!
Union, one would think that a
registered trade union either had
or had not a personality dastinct from
that of 1ts members: see Professor Derham's
essay 'Theories of Legal Personality in
Legal Personality and Political Pluralism'--
ed. Webb, (1958) Australian National University,
pp. 16, 17. The holding of the property of
a union by trustees 1s in no way inconsistent
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with the possession by that union of
true corporate personality. It
could not give rise to any difficulty
in enforcing a judgment against the
union by recourse to that property,
and it surely cannot be right to say
that a judgment against a union, if
it is capable of being sued as such,
can be enforced against the property
of its individual members. But it is
sufficient to say that the position
under the Commonwealth Act seems to me
to be clear, The language of that Act
is far more explicit than that of the
Trade Union Acts which were considered
in the Taff Vale Case. It is, of course,
perfectly consistent with the possession
of legal personality that the capacity
of the 'persona' should be limited: see
Derham, loc. cit., pp. 14, 15."
At p. 63 Fullagar J. said:
"The Taff Vale Case decided, to all
antents and purposes, that registration
under the Acts conferred a corporate
personality upon a trade union."
Daxon C.J. and Katto J. agreed with the
Judgment of Fullagar J. Menzies J., 1n a separate
gudgment, said that in his opinion the decision in
Egan v. Barrier Branch of Amalgamated Miners' Association
(supra) was correctly decided and cited with approval
the passage from the judgment of Cullen C. J. which I have
already mentioned.
Thus Dixon C.J., Fullagar, Kitto and Menzies JJ.
decided that a registered trade union has a legal
personality distinct from its members.
In Moore v. Doyle & Ors. (1967) 15 F.L.R. 59,
the Commonwealth Industrial Court (Spicer C.J., Smithers
and Kerr JJ.) said at p. 116:
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"There 1s strong authority in the New
South Wales Supreme Court (Egan's Case
and Wheatley v. Federated Iron Workers'
Association of Australia) for the view
that a registered trade union is a legal
entity separate from its members. This
is supported by Heggie's Case in the High
Court and by statements in Hursey's Case.
It 1s also strongly supported by a
persistent line of authority in the New
South Wales Industrial Commission....As
at present advised we prefer the view
that a New South Wales registered trade
and industrial union 1s a separate legal
entity with a legal personality of its
own dastinct from its members at any
particular time,"
Their Honours considered fully the history
of the Transport Workers! Union of Australia, an organisation
registered under the Commonwealth Conciliation and
Arbitration Act 1904-1968 and the New South Wales branch
of the organisation namely, Transport Workers' Union of
Australia, New South Wales branch, the respondent in these
proceedings.
It 1s the conduct of "a person" that 1s proscribed
by s. 45D and that 1s liable to be restrained under s. 80 (1).
Section 22 of the Acts Interpretation Act 1901 defines a
"person" as including a body corporate as well as an
individual.
In my opinion The State union is a separate legal
entity with a legal personality of its own distinct from 1ts
members. It has a corporate personality and is a body
corporate, Hence, it 1s a "person" within the meaning of
ss. 45D and 80.
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I turn to the conduct engaged in by the
respondents and its purpose.
The first question 1s whether the respondents,
1n concert with each other, engaged in the conduct in
question.
"Acting in concert involves knowing conduct,
the result of communication between the
parties and not simply simultanteous actions
occuring spontaneously ":
per Bowen C.J. 1n Tillmanns Butcheries Pty, Limited v.
The Australasian Meat Industry and Employees' Union & Ors. ,
a decision of the Full Bench of this court (Bowen C. J.,
Evatt and Deane JJ.) judgment delivered 7 December 1979,
as yet unreported.
Mr. McLean is an officaal of The State union.
Messrs. Osborne, Gannon and Hutchinson are tanker drivers
employed by Amoco. Mr. Osborne is the delegate of Uhe State
union at the Banksmeadow terminal. Messrs. Gannon and
Hutchinson are co-delegates.
Mr. Osborne was involved in the relevant
conversations with Mr. Laidely on 14 February. Messrs.
Osborne, Gannon and Hutchinson took part in the relevant
discussions on 15 February which led to the Amoco tanker
drivers going on strike that day and not returning to work
until 19 February. They were active participants in bringing
about and continuing the strike and went on sirike themselves.
They, together with Mr. McLean, participated, to the
knowledge of each other, in bringing the strike to an end and
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the men returning to work on 19 February. On 18 February,
after Mr. Buck had said to Messrs. McLean, Osborne, Gannon
and Hutchinson that Amoco would be unable to supply the
applicant "due to a situation which has been created by
the Union", Mr. McLean said:
"Because of the company's action
the men will return to work
immediately,"
The men returned to work the following morning.
Amoco's tanker drivers went on strike because
the applicant used its own drivers to collect and deliver
bulk fuel from the Banksmeadow terminal. The applicant
refused to accede to the union demands that this work be
done by Amoco's drivers. The strike would have continued
until at least 17 April. It was only following Amoco's
assurance that 1t would not supply bulk fuel to the applicant
that the respondents brought about the end of the strike.
It is a plain inference from the evidence that
Amoco has not supplied the applicant with bulk fuel because
it fears further industrial action if supplies are resumed
whilst the applicant adheres to ats decision to use its own
tanker drivers to transport fuel. Amoco's fears are not idle
speculation, They are based on the experience of the strike
of its tanker drivers from 15 to 19 February and the implied
threat of its renewal if supplies to the applicant are resumed
whilst the applicant retains its present attitude.
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The State union 1s deemed for the purposes of
the Act to engage in that conduct in concert with the
respondents McLean, Osborne, Hutchinson and Gannon: see
sub-section 45D (5).
In my opinion the respondents in concert with
each other engaged in the conduct in question.
The next question is whether their conduct
hindered or prevented the supply of bulk fuel to the
applicant. Clearly it did for the reasons I have given.
The next question is whether the conduct was
engaged in for the purpose of causing substantial loss or
damage to the business of the applicant. There 1s no
contravention of s. 45D unless the purpose of causing
substantial loss or damage exists; but it may be only
one of the purposes of the respondents: sub-section 45D (2).
In my opinion the respondents had more than one
purpose. One purpose was what may be described as "a union
purpose" namely, to protect the employment of the tanker
drivers of Amoco who are members of The State union. Until
this particular dispute arose all deliveries of bulk fuel
and other petroleum products from the Banksmeadow terminal
to service stations throughout the Sydney metropolitan area
were carried out by Amoco trucks driven by tanker drivers
employed by Amoco, The respondents are concerned that
the Amoco drivers may lose their jobs if the practice
develops of the applicant and its competitors using their
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own tanker drivers.
"Nevertheless, the fact that a union
and its members acting together have
a union purpose does not necessarily
exclude the possibility that they had,
also, the purpose of causing substantial
loss or damage to the business of a
corporation, The statement of Evatt J.
an McKernan v. Fraser (1931) 46 C.L.R.
343 18 apposite. His Honour in that
case (at p. 403) said:
'Sir Godfrey Lushington said, in special
reference to combined action against
employers or non-unionists on the part
of unionists that to ask the question
whether they acted to defend their own
trade interests or to injure their
economic adversary for the time being,
1s equivalent to asking of a soldier
who shoots to kill in battle, whether
he does so for the purpose of injuring
his enemy or of defending bis country.
The analogy 18 sound because combined
strike action is usually undertaken for
the purpose both of causing harm to the
employers and for the improvement or
maintenance of the standards of unionists.! "
Per Bowen C. J. in the Tillmanns Butcheries Case (supra) at
p. 11.
Counsel for the respondents submitted that they
had no personal animus against the applicant or its managing
director and had no wish to harm the applicant's business.
In my view the respondents knew that the only
pressure that would be effective against the applicant was
the prospect of loss or damage to its business. It was one
of their purposes to cause that loss. Once they had been
assured by Mr. Buck of Amoco that there would be no supply
to the applicant, they caused the strike to end. Underlying
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the conduct of the respondents is the threat of renewed
industrial action if supply to the applicant 18 resumed
unless the applicant resiles and surrenders to union
pressure. If it stops using its own drivers, supply will
be resumed; but not otherwise.
To contravene s. 45 D the purpose must be not
merely to cause loss or damage but"substantial" loss or
damage.
In Tillmanns Butcheries Case (supra) Bowen C. J.
said at p. 12:
" The word 'substantial' would certainly
seem to require loss or damage that is
more than trivial or minimal. According
to one meaning of the word the loss or
damage would have to be considerable. (See
Palser v. Grinling 1948 A.C. 291 at pp. 316-
317). However, the word is quantitatively
imprecise; it cannot be said that 1t requires
any specific level of loss or damage. No
doubt in the context in which it appears
the word imports a notion of relativity, that
1s to say, one needs to know something of the
circumstances of the business affected before
one can arrive at a conclusion whether the
loss or damage in question should be
regarded as substantial in relation to that
business."
Deane J. said at p. 123
"In the context of s. 45D (1) of the Act,
the word 'substantial' 1s used ina
relative sense in that, regardless of
whether it means large or weighty on
the one hand or real or of substance as
distinct from ephemeral or nominal on
the other, it would be necessary to know
something of the nature and scope of the
relevant business before one could say
that particular, actual or potential loss
or damage was substantial. As at present
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advised, I incline to the view that the
phrase, substantial loss or damage, in
s. 45D (1) ancludes loss or damage that
1s, in the circumstances, real or of
substance and not insubstantial or not
nominal."
The business of the applicant 1s buying and
selling bulk fuel and other petroleum products, lt
purchases its supplies from Amoco. It operates petrol
tankers and associated vehicles, Its supplies from Amoco
have been cut off. Although the evidence at this
aunterlocutory stage of the case as to the applicant's
business is not extensive, it has some four hundred
customers and its purchases from Amoco are substantial
in monetary terms. Its business depends on bulk fuel. The
strike was intended to last until at least 17 Apral. Mr.
Laidely is not prepared to relent.
The proper conclusion is that the purpose was to
cause substantial loss or damage.
The next question 1s whether the conduct is such
that it would have or be likely to have the effect of causing
substantial loss or damage.
In Tillmanns Butcheries Case (supra) Bowen C.J.
considered the various possible meanings of the word "likely"
ancluding "probable" in the sense of "more probable than not";
material risk as seen by a reasonable man such as might happen;
some possibility, more than a remote or bare chance; conduct
inherently of such a character that 1t would ordinarily cause
the effect specified. His Honour said at p. 14:
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"The circumstances to which s. 45D
may apply are so various, that I
hesitate to place a gloss on the
section by preferring one meaning
of 'likely' rather than another
for the determination of this
particular phrase."
Deane J. said at p. 11:
"The conclusion which I have reached
1s that, 1n the context of s. 45D (1),
the preferable view is that the word
likely' 1s not synonomous with "more
likely than not' and that if relevant
conduct 18 engaged in for the purpose
of causing loss or damage to the
business of the relevant corporation,
1t will suffice, for the purposes of
the sub-section, if that conduct is,
in the circumstances, such that there
1s a real chance or possibility that it
will if pursued, cause such loss or
damage. Whether or not such conduct 1s
likely (1n that sense) to have that
effect is a question to be determined
by reference to well-established
standards of what could reasonably
be expected to be the consequence of
the relevant conduct in the circumstances.
In determining the answer to that question,
iat will be relevant that the persons
engaging 1n the conduct did so with the
purpose of causing such loss or damage."
In my opinion, whichever meaning is adopted,
the evidence leads to the conclusion that the 11kelihood
of substantial loss or damage has been established. IL
rely on what I have already said and the evidence to
which I have referred.
It was submitted by counsel for the applicant
that the relevant purpose of the conduct of the respondents
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was to cause a substantial lessenang of competition in the
market in which the applicant supplies bulk fuel.
I am not satisfied that this was a purpose of
the respondents,notwithstanding that it may be the effect
or the likely effect of the conduct in question. At this
interlocutory stage of the case I prefer to rest my
conclusions on the purpose as being to cause substantial
loss or damage to the applicant's business.
Counsel for the respondents submitted, in
reliance upon paragraph 45D (3), that the dominant purpose
for which the conduct was engaged in is substantially
related to the conditions of employment or the working
conditions of the tanker drivers employed by Amoco who are
members of The State union including the respondents, Osborne,
Hutchinson and Gannon, so that there is no contravention of
the section.
I have held that one of the purposes for which the
conduct was engaged in by the respondents was to protect the
employment of the tanker drivers employed by Amoco who are
members of The State union, I do not find it necessary to
decide whether that purpose is substantially related to the
conditions of employment or the working conditions of Amoco's
employees, as 1n my view that purpose was not the dominant
purpose. Nor do I find it necessary to decide, as counsel
for the applicant submitted the court should decide, that the
dominant purpose was to cause substantial loss or damage
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to the business of the applicant,
I respectfully agree with Deane J. in the
Tillmanns Butcheries Case (supra) when his Honour said
at p. 13 that the question to be answered in determining
whether conduct was engaged in for a "purpose" mentioned
uns. 45D (1) 1s:
"to be answered not by reference to
whether 1t was appreciated that the
relevant conduct might have the
specified effect but by reference to
the real reason or reasons for, or the
real purpose or purposes of, the
conduct and to what was in truth the
object in the minds of the relevant
persons when they engaged in the conduct
2n concert."
Nor do I find it necessary to decide whether
the well-recognised distinction between purpose and motive
should be observed in construing s. 45D.
Whether motive is taken into consideration
or not, in my view the union purpose was not the dominant
purpose of the respondents.
Messrs. McLean, Osborne and Gannon swore affidavits
an which each of them said:
"I deny that I, in engaging in the
conduct complained of" have "done
so for any purpose of causing loss
or damage to the business of any
corporation or body corporate
related to any corporation or for
any purpose of substantially
lessening competition in any
market in which any corporation or
related body corporate supplies or
requires goods or services. I say
that the sole purpose of the conduct
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of which complaint is made is to
protect the employment of the employees
of Amoco who are members of the T.W.U."
They were not cross-examined.
It 1s for the court to determine on the
whole of the evidence whether the respondents engaged in
the relevant conduct for a particular purpose. Fven if I
treat the evidence of the respondents, McLean, Osborne and
Gannon as statements of belief, reason or motive, they are
but part of the whole complex of facts from which purpose
1s to be ascertained.
Notwithstanding their evidence, when it is viewed
in the light of the objective facts to which I have referred,
in my view 1t was one of the purposes of the respondents to
cause substantial loss or damage to the business of the
applicant.
The strike plainly occurred as a means of bringing
pressure to bear upon Amoco to cease supplying bulk fuel to
the applicant unless and until Amoco's own drivers, and no
others, were used to transport the fuel. Once Amoco
capitulated, as it did, and refused to supply the applicant,
the strike ceased; but with the implied threat that
andustrial action would revive if Amoco recommenced supply
to the applicant in circumstances where the applicant's fuel
was delivered by drivers other than employees of Amoco. Loss
or damage to the business of the applicant was intended, No
doubt the respondents hoped that the applicant would
242/24
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capitulate in order to avoid the loss or damage to its
business; but unless it did, there would be no supply
by Amoco,
The granting of anterlocutory injunctive relief
depends essentially upon whether a prima facie case has been
established in accordance with the principles expressed by
the High Court in Beecham Group Limited v. Bristol
Laboratories Pty. Limited (1968) 118 C.L.R, 618 and by the
Full Bench of thas court in World Series Cricket Pty. Limited
v. Parish (1977) 16 A.L.R. 1813; and whether the balance
of convenience favours such course of action.
My findings are not final and I have borne in
mind the following passage from the reasons for judgment
of Bowen C. J. in the World Series Cricket Case (supra), with
which I respectfully agree:
"The court 18 given jurisdiction to
grant an interim injunction under s.
80 (2) where, in its opinion, 'it is
desirable to do so', These words
confer a judicial discretion of the
widest kind upon the court. It as not
an arbitrary discretion but one to be
exercised judicially in accordance with
principles....Whether or not the
jurisdiction being exercised is equitable,
1t is inherent in the nature of an
application for interlocutory relief that
the evidence upon which the application
must be determined will be incomplete
and unsatisfactory for the purpose of
making a final finding....
In Beecham Group Limited v. Bristol
Laboratories Pty. Limited...the High
Court expressed the view that in all
cases, including patent cases, a court,
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when contemplating, granting or
refusing interlocutory relief, must
direct itself to both the prima facie
strength of the plaintiff's claim and
the balance of convenience. A plaintaff
1s required to make out a prima facie
case, 'in the sense that if the evidence
remains as it is, there is a probability
that at the trial of the action, the
plaintiff will be held entitled to relief'...
The strength of the case which the
plaintiff must make out will depend upon
the nature of the right which he is seeking
to assert, and the consequences which
will flow from the making of the
interlocutory orders. However, where the
facts are seriously in dispute, the court
will not undertake a preliminary trial of
the action 1n order to forecast a probable
result, but rather, if the plaintiff has a
fair chance of success (and what will be
required will vary according to the nature
of the case),the court will proceed to look
to the balance of convenience,"
In my opinion the applicant has established a
prima facie case in the sense referred to by the High Court
and the Full Bench of this court.
As to the balance of convenience, the continued
withholding of supply by Amoco from the applicant will
seriously hinder, if not prevent, the applicant from
carrying on its business and cause it serious loss or damage.
The respondents have not been able to point to any
detriment which may be suffered by them if interlocutory
injunctions are granted. Nor can I see any.
For these reasons I am satisfied that the
applicant is entitled to the benefit of interlocutory relief
..-/26
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Upon the applicant by its counsel undertaking to
the court to pay to any party adversely affected by the
interlocutory injunctions such compensation (af any ) as the
court thinks just, in such manner as the court directs, I
make the following orders:-
1, That the respondent Transport Workers Union
of Australia, New South Wales Branch, its servants and agents,
and the respondents, John Barry McLean, Peter Osborne, Raymond
Hutchinson and Ronald Gannon be restrained until the
determination of the proceeding or further order from engaging
in conduct, in concert with any person, that hinders or
prevents the supply of petroleum products including bulk
fuel by Amoco Australia Limited to the applicant where such
conduct is engaged in for the purpose and would have or be
likely to have the effect of causing substantial loss or
damage to the business of the applicant of a purchaser and
distributor of petroleum products, including bulk fuel;
2. That the costsof all parties be costs ain
the proceeding; and
3. That liberty be reserved to any party to
apply on two days' notice.
} cartty that tvs and the Yuen fever)
preced ng pages are a trus copy cf the
Reasons for Jadgment herein of his Honour
Mr. Justice Lockhart.