Morris v Hanley [2003] NSWSC 42

New South Wales Supreme Court

CITATION : Morris v Hanley [2003] NSWSC 42 HEARING DATE(S) : 17 June, 19 June - 4 July, 9 & 10 July, 15 August and 2 September 2002 JUDGMENT DATE : 13 February 2003 JURISDICTION: Equity JUDGMENT OF : Hamilton J DECISION : Judgment for the defendants.

CATCHWORDS : EMPLOYMENT LAW [21] - The contract of service and rights, duties and liabilities as between employer and employee - Discharge and breach - Generally - Implied duty of mutual trust and confidence in employment contract - Whether gives rise to fiduciary duty - EQUITY [36] - General principles - Fiduciary obligations - Particular cases - Company - Articles of association - Right given to permanent employees to apply for and be allotted shares - Whether company, director or other shareholders owed any fiduciary duty in relation to that right to a permanent employee who did not have shares - EVIDENCE [24] - Admissibility and relevancy - Facts relevant to facts in issue - In general - Course of business - Whether what was said on a particular occasion may be proved by evidence of practice - TORTS [22], [ 238] - Negligence - Essentials of action for negligence - Duty of care - Relationship of proximity - Company - Articles of association - Right given to permanent employees to apply for and be allotted shares - Whether company owed any duty of care in relation to that right to a permanent employee who did not have shares - Conspiring to injure - Particular cases - Whether conspiracy among shareholders made out. LEGISLATION CITED : Corporations Act 2001 (Cth) s 140 Limitation Act 1969 s 55 Armstrong v Commonwealth Bank of Australia (1999) 9 BPR 17,035 Burazin v Blacktown City Guardian Pty Ltd (1996) 142 ALR 144 Connor v Blacktown District Hospital [1971] 1 NSWLR 713 Eley v Positive Government Security Life Assurance Co Ltd (1876) 1 ExD 88 Garcia v National Australia Bank Ltd (1993) 5 BPR 11,996 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Johnson v Unisys Ltd [2001] 2 WLR 1076 Malik v Bank of Credit and Commerce International SA (In Compulsory Liquidation) [1998] AC 20 McKernan v Fraser (1931) 46 CLR 343 McWilliam v Penthouse Publications Ltd [2001] NSWCA 237 National Roads & Motorists' Association v Parker (1986) 6 NSWLR 517 News Limited v Australian Rugby Football League Limited (1996) 64 FCR 410 Nock v Austin (1918) 25 CLR 519 CASES CITED : Perre v Apand Pty Limited (1999) 198 CLR 180 Pilmer v Duke Group Limited (In Liquidation) (2001) 207 CLR 165 Public Trustee v Permanent Trustee Co Ltd [1999] NSWSC 722 Scally v Southern Health and Social Services Board [1992] 1 AC 294 State Bank of NSW v Muir (1997) 8 BPR 15,483 Tai Hing Cotton Mill Ltd v Liu Chong Hing Bank Ltd [1986] AC 80 The King and the Attorney-General of the Commonwealth v The Associated Northern Collieries (1911) 14 CLR 387 The Paul Dainty Corporation Pty Ltd v The National Centre Trust (1990) 22 FCR 495 Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 165 CLR 107 Williams v Hursey (1959) 103 CLR 30 Ford's Principles of Corporations Law (10th ed, 2001) [6.050] Macken and others, Law of Employment (5th ed, 2002) 113 - 117 1A Wigmore on Evidence (Tillers Rev) s 92 Adrian Brooks, "The Good and Considerate Employer: Developments in the Implied Duty of Mutual Trust and Confidence" (2001) 20 University of Tasmania Law Review 29 Greg McCarry, "Damages for the Employer's Implied Duty of Trust and Confidence" (1998) 26 ABLR 141 Janine Morris (P) Jack Norman Hanley (D1) Geoffrey Donald Reid (D2) Lynda Maree Cole (D3) Christine Valmae Hayward (D4) PARTIES : Anthony Bodycote (D5) Robyn Janelle Haydon (D6) Daphne Olive Boyd (D7) Beverley Joy Armfield (D8) Gayle Hanley (D9) Cecil Bellchambers (D10) Mariani Holdings Pty Limited (D11) FILE NUMBER(S) : SC 2650/97 COUNSEL : J J Priestley (P) P T Taylor (D1-11) SOLICITORS : Maxwell & Co (P) Parker & Kissane (D1-11)