Global Risk Alliance Group Services Pty Ltd v Harmer [2024] NSWSC 79

Supreme Court New South Wales

Medium Neutral Citation: Global Risk Alliance Group Services Pty Ltd v Harmer [2024] NSWSC 79 Hearing dates: 27 October 2023, 31 October 2023, 1-3 November 2023, 6-9 November 2023, 15-17 November 2023 Date of orders: 9 February 2024 Decision date: 09 February 2024 Jurisdiction: Common Law Before: Nixon J Decision: The Court: (1) Grants leave to the Plaintiffs to rely on the Further Amended Statement of Claim, filed in Court on 17 November 2023. (2) Directs the parties to bring in short minutes of order, by 5pm on 1 March 2024, to give effect to these reasons for judgment, including orders that deal with interest and costs, insofar as those matters can be agreed. (3) Directs that, insofar as any aspect of the orders to give effect to the reasons for judgment cannot be agreed, the parties exchange, by 5pm on 1 March 2024, the orders which each party proposes and submissions (limited to 5 pages) on those orders, indicating whether, and if so why, an oral hearing is requested to deal with the matters in dispute. Catchwords: EMPLOYMENT AND INDUSTRIAL LAW – Whether first plaintiff entered into employment contracts with first to third defendants as agent for second plaintiff – Whether first plaintiff held promises in employment contracts on trust for second plaintiff – Whether employees owed an implied obligation of fidelity to their employer – Whether employees breached the terms of their employment contracts EQUITY – Fiduciary duties – Whether defendant employees owed fiduciary duties to first and second plaintiffs – Whether any breach of fiduciary duty – Whether knowing assistance by fifth defendant in any breach of fiduciary duty CORPORATIONS – Directors and officers – Whether first and third defendants were officers of the second plaintiff – Whether the defendants breached any duties owed as officers of the second plaintiff – Whether any involvement by fifth defendant in any such contravention EQUITY – Equitable remedies – Equitable compensation – Causation – No claim for loss of opportunity – Whether plaintiffs established loss of contracts as a result of breach – Assessment of loss suffered as result of breach DAMAGES – Whether any loss suffered as a result of breach of contractual provision regarding notice period – Nominal damages for breach of employment contracts by employees EMPLOYMENT AND INDUSTRIAL LAW – Whether employer repudiated contract – Whether employee elected to affirm contract – Whether employee agreed to vary contract – Whether employer liable for damages for unpaid salary and unpaid bonuses EVIDENCE – Defendants tendered statements obtained in course of internal investigation by Department of Defence concerning potential criminal offences – Whether representations fell within s 69(3) of the Evidence Act 1995 (NSW) – Whether evidence should be excluded pursuant to s 135 – Tender rejected PRACTICE AND PROCEDURE – Leave to amend – Whether leave should be granted to amend pleading to align with case run at trial – Whether first defendant objected to case being run outside pleading or engaged with that case – Whether amendment expanded matters at issue in proceedings Legislation Cited: Competition and Consumer Act 2010 (Cth), s 44ZZRG Corporations Act 2001 (Cth) ss 9, 9AD, 79, 182, 183, 1317E, 1317H(1) Criminal Code Act 1995 (Cth), s 142.2 Defence Force Discipline Act 1982 (Cth) Evidence Act 1995 (NSW), ss 69(2), 69(3), 135, 140(2) Public Governance, Performance and Accountability Act 2013 (Cth) Public Service Act 1999 (Cth) Commonwealth Procurement Rules 13 June 2023 (Cth) cl9.12, 6.6 Uniform Civil Procedure Rules 2005 (NSW) r 6.23 Cases Cited: Adler v Australian Securities and Investments Commission (2003) 46 ACSR 504; [2003] NSWCA 131 AMP Services Ltd v Manning [2006] FCA 256 Anchorage Capital Master Offshore Ltd v Sparkes (2023) 111 NSWLR 304; [2023] NSWCA 88 Ancient Order of Foresters in Victoria Friendly Society Ltd v Lifeplan Australia Friendly Society Ltd (2018) 265 CLR 1; [2018] HCA 43 Anderson v Canaccord Genuity Financial Ltd [2022] NSWSC 58 Anderson v Canaccord Genuity Financial Ltd [2023] NSWCA 294 Armstrong v Strain [1951] 1 TLR 856 Australian Competition and Consumer Commission v Advanced Medical Institute Pty Ltd (No 2) (2005) 147 FCR 235; [2005] FCA 1357 Australian Competition and Consumer Commission (ACCC) v IMB Group Pty Ltd [2003] FCAFC 17 Australian Executor Trustees (SA) Ltd v Kerr [2021] NSWCA 5; (2021) 151 ACSR 204 Australian Medic-Care Company Ltd v Hamilton Pharmaceutical Pty Ltd (No 4) (2008) 170 FCR 9 Australian Rail, Tram and Bus Industry Union v Railtrain Pty Ltd [2019] FCA 1740 Australian Securities and Investments Commission v Adler (2002) 168 FLR 253; [2002] NSWSC 171 Australian Securities and Investments Commission v King (2020) 270 CLR 1; [2020] HCA 4 Averkin v Insurance Australia Ltd [2016] NSWCA 122 Bahr v Nicolay [No 2] (1988) 164 CLR 604; [1988] HCA 16 Bakerland Pty Ltd v Coleridge [2002] NSWCA 30 Banque Commerciale SA, En Liquidation v Akhil Holdings Ltd (1990) 169 CLR 279; [1990] HCA 11 Barnes v Addy (1874) LR 9 Ch App 244 Bartlett v Australia & New Zealand Banking Group Ltd (2016) 92 NSWLR 639 Bellevarde Constructions Pty Ltd v L'Officina by Vincenzo Australia Pty Ltd [2022] NSWCA 246 Birtchnell v Equity Trustees Executors & Agency Co Ltd (1929) 42 CLR 384; [1929] HCA 24 Blyth Chemicals Ltd v Bushnell (1933) 49 CLR 66; [1933] HCA 8 Break Fast Investments Pty Ltd v Rigby Cooke Lawyers (A Firm) [2022] VSCA 118 Breen v Williams (Medical Records Access case) (1996) 186 CLR 71; [1996] HCA 57 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Canson Enterprises Ltd v Boughton & Co (1991) 85 DLR (4th) 129 Central Coast Council v Norcross Pictorial Calendars Pty Ltd (2021) 391 ALR 157; [2021] NSWCA 75 Commissioner of Taxation (Cth) v Sara Lee Household & Body Care (Australia) Pty Ltd (2000) 201 CLR 520; [2000] HCA 35 Commonwealth Bank of Australia v Barker (2014) 253 CLR 169; [2014] HCA 32 Commonwealth Bank of Australia v Kojic (2016) 249 FCR 421; [2016] FCAFC 186 Commonwealth of Australia v Amann Aviation Pty Ltd (1991) 174 CLR 64; [1991] HCA 54 Concut Pty Ltd v Worrell (2000) 176 ALR 693; [2000] HCA 64 Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) v Personnel Contracting Pty Ltd (2022) 275 CLR 165; [2022] HCA 1 Del Casale v Artedomus (Aust) Pty Ltd [2007] NSWCA 172 Di Liristi v Matautia Developments Pty Ltd [2021] NSWCA 328 DSHE Holdings Ltd (Receivers and Managers) (in liq) v Potts; HSBC Bank Ltd v Abboud; Potts v National Australia Bank Ltd [2022] NSWCA 165 Fair Work Ombudsman v South Jin Pty Ltd [2015] FCA 1456 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Fink v Fink (1946) 74 CLR 127; [1946] HCA 54 Giorgianni v The Queen (1985) 156 CLR 473; [1985] HCA 29 GM & AM Pearce & Co Pty Ltd v Australian Tallow Producers [2005] VSCA 113 Gould v Mount Oxide Mines Ltd (in liq) (1916) 22 CLR 490 Greater Pacific Investments Pty Ltd (in liq) v Australian National Industries Ltd (1996) 39 NSWLR 143 Grimaldi v Chameleon Mining NL (No 2); Chameleon Mining NL v Murchison Metals Ltd (2012) 200 FCR 296; [2012] FCAFC 6 Hasler v Singtel Optus Pty Ltd; Curtis v Singtel Optus Pty Ltd; Singtel Optus Pty Ltd v Almad Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266 Hendricks v El-Dik (No 2) [2015] ACTSC 351 Hobart International Airport Pty Ltd v Clarence City Council; Australia Pacific Airports (Launceston) Pty Ltd v Northern Midlands Council [2022] HCA 5 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Immer (No 145) Pty Ltd v Uniting Church in Australia Property Trust (NSW) (1993) 182 CLR 26; [1993] HCA 27 John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd; Walker Corp Pty Ltd v White City Tennis Club Ltd (2010) 241 CLR 1; [2010] HCA 19 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Korda v Australian Executor Trustees (SA) Ltd (2015) 255 CLR 62; [2015] HCA 6 Krakowski v Eurolynx Properties Pty Ltd (1995) 183 CLR 563; [1995] HCA 68 Labelmakers Group Pty Ltd v LL Force Pty Ltd (No 2) [2012] FCA 512 Labelmakers Group Pty Ltd v LL Force Pty Ltd (No 3) [2013] FCA 1059 Lewis v Nortex Pty Ltd (in liq); Lamru Pty Ltd v Kation Pty Ltd [2002] NSWSC 1083 Leybourne v Permanent Custodians Ltd [2010] NSWCA 78 Lifeplan Australia Friendly Society Ltd v Woff [2016] FCA 248 Ling v Pang [2023] NSWCA 112 Macquarie Bank Ltd v Sixty-Fourth Throne Pty Ltd [1998] 3 VR 133 Maguire v Makaronis (1997) 188 CLR 449 Malik v Bank of Credit and Commercial International SA (in liq) [1998] AC 20 Manildra Laboratories v Campbell [2009] NSWSC 987 Mizzi v Reliance Financial Services Pty Ltd and Ors [2007] NSWSC 37 Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 110 ALR 449; [1992] HCA 66 New Zealand Netherlands Society "Oranje" Inc v Kuys [1973] 1 WLR 1126 O'Halloran v RT Thomas & Family Pty Ltd (1998) 45 NSWLR 262 Paino v Paino [2008] NSWCA 276 Parker, In the matter of Purcom No 34 Pty Limited (In Liq) (No 2) [2010] FCA 624 Pereira v Director of Public Prosecutions (1988) 82 ALR 217 Peter Hillig in his capacity as liquidator of ACN 092 745 330 Pty Ltd (in liq) v Battaglia & Ors [2018] NSWCA 67 Pilmer v Duke Group Limited (in liq) (2001) 207 CLR 165; [2001] HCA 31 Pittmore Pty Ltd v Chan; Chan v Tan (2020) 104 NSWLR 62; [2020] NSWCA 344 Ramsay v BigTinCan Pty Ltd [2014] NSWCA 324 Re Coomber; Coomber v Coomber [1911] 1 Ch 723 Rickard Constructions v Rickard Hails Moretti and Ors [2004] NSWSC 984 Salmon v Albarran [2023] NSWSC 1238 Sargent v ASL Developments Ltd; Turnbull v ASL Developments Ltd (1974) 131 CLR 634; [1974] HCA 40 Schindler Lifts Australia Pty Ltd v Debelak (1989) 89 ALR 275 Seltsam Pty Ltd v McGuiness (2000) 49 NSWLR 262; [2000] NSWCA 29 Shafron v Australian Securities and Investments Commission (ASIC) (2012) 247 CLR 465; [2012] HCA 18 Shepherd v Felt and Textiles of Australia Ltd (1931) 45 CLR 359; [1931] HCA 21 State of NSW v Moss (2000) 54 NSWLR 536; [2000] NSWCA 133 Steadfast ICT Security Pty Ltd v Peak (No 2) [2021] ACTSC 319 Tallerman and Company Pty Ltd v Nathan's Merchandise (Victoria) Proprietary Ltd (1957) 98 CLR 93; [1957] HCA 10 Tanaka v Tokyo Network Computing Pty Ltd [2003] NSWSC 1114 The Insurance Commissioner v Joyce (1948) 77 CLR 39; [1948] HCA 17 Thomas v State of New South Wales (2008) 74 NSWLR 34; [2008] NSWCA 316 Tokyo Network Computing Pty Ltd v Tanaka [2004] NSWCA 263 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Tozer Kemsley & Millbourn (Australasia) Pty Ltd v Collier's Interstate Transport Service Ltd (1956) 94 CLR 384; [1956] HCA 6 Uszok v Henley Properties (NSW) Pty Ltd [2007] NSWCA 31 Walsh v Walgett Shire Council [2014] NSWSC 812 Warman International Ltd v Dwyer (1995) 182 CLR 544; [1995] HCA 18 Westpac Banking Corporation v The Bell Group Ltd (in liq) (No 3) (2012) 44 WAR 1; [2012] WASCA 157 Westpac Banking Corporation v Wittenberg [2016] FCAFC 33 X v Commonwealth (1999) 200 CLR 177; [1999] HCA 63 Yorke v Lucas (1985) 158 CLR 661; [1985] HCA 65 Youyang Pty Ltd v Minter Ellison Morris Fletcher (2003) 212 CLR 484; [2003] HCA 15 Texts Cited: J D Heydon, Heydon on Contract (2019, Thomson Reuters) Category: Principal judgment Parties: Global Risk Alliance Group Services Pty Ltd (First Plaintiff) Aerosafe Risk Management Pty Ltd (Second Plaintiff) Andrew John Harmer (First Defendant) Craig John Binks (Second Defendant) Scott William Dillon (Third Defendant) SME Gateway Pty Ltd (Fifth Defendant) Representation: Counsel: I Neil SC and J Gatland (First and Second Plaintiffs) S McIntosh (First Defendant) D Barnett and B Haines (Third Defendant) N Bender SC and R Jameson (Fifth Defendant)