Shaw v State of New South Wales [2012] NSWCA 102

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Shaw v State of New South Wales [2012] NSWCA 102 Hearing dates: 27 February 2012 Decision date: 19 April 2012 Before: Beazley JA at [1]; McColl JA at [2]; Macfarlan JA at [3]; Barrett JA at [4]; McClellan CJ at CL at [136] Decision: 1. That the notice of motion filed in this Court by the respondent on 27 February 2012 be dismissed. 2. Appeal allowed. 3. That order 1 made by the court below on 18 February 2011 be set aside to the extent that it orders that paragraphs 11, 11A and 11C of the third further amended statement of claim filed on 22 May 2009 be struck out. 4. That the respondent pay the appellants' costs of the notice of motion and of the appeal. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: PROCEDURE - summary disposal - claims struck out because no reasonable cause of action shown - nature of test to be applied - relevance of "just, quick and cheap" provisions of Civil Procedure Act 2005 - whether claims should be allowed to proceed to trial - EMPLOYMENT LAW - the contract of service - whether term of mutual trust and confidence arguably implied by law - where employment heavily regulated by statute - whether implication of term inconsistent with statutory scheme - CONTRACTS - claim by employee for damages for breach by employer of implied term of mutual trust and confidence - employee dismissed - whether arguable claim - DAMAGES - damages claimed by dismissed employee for loss of future earnings and earning capacity - whether such damages precluded by Addis v Gramophone Co Ltd [1909] AC 488 - TORTS - negligence - whether duty of care arguably owed by employer to employee in relation to dismissal from employment Legislation Cited: Civil Procedure Act 2005, ss 56, 57, 58 Teaching Service Act 1980, ss 48 Teaching Service Regulation 2007 Uniform Civil Procedure Rules 2005, rule 14.28 Cases Cited: Addis v Gramophone Co Ltd [1909] AC 488 Agar v Hyde [2000] HCA 41; (2000) 201 CLR 552 Aldersea v Public Transport Corporation [2001] VSC 169; (2001) 3 VR 499 Aon Risk Services Australia Ltd v Australian National University [2009] HCA 27; (2009) 239 CLR 175 Bachicha v Henry [2000] HKCA 493; [2000] 2 HKLRD 833 Baltic Shipping Company v Dillon [1993] HCA 4; (1993) 176 CLR 344 Batistatos v Roads and Traffic Authority (NSW) [2006] HCA 27; (2006) 226 CLR 256 BP Refinery (Westernport) Pty Ltd v Shire of Hastings [1977] UKPCHCA 1; (1977) 180 CLR 266 Burazin v Blacktown City Guardian Pty Ltd (1996) 142 ALR 144 Byrne v Australian Airlines Ltd [1995] HCA 24; (1995) 185 CLR 410 Castlemaine Tooheys Ltd v Carlton & United Breweries Ltd (1987) 10 NSWLR 468 Central Manufacturing Company Ltd v Kant [2003] FJSC 5 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales [1982] HCA 24; (1982) 149 CLR 337 Concrete Pty Ltd v Parramatta Design & Developments Pty Ltd [2006] HCA 55; (2006) 229 CLR 577 Concut Pty Ltd v Worrell [2000] HCA 64; (2000) 75 ALJR 312 Cowell v Rosehill Racecourse Co Ltd [1937] HCA 17: (1937) 56 CLR 605 Coyne v Commercial Equity Corporation Ltd (1998) 20 WAR 109 Delohery v Permanent Trustee Co of NSW [1904] HCA 10; (1904) 1 CLR 283 Delooze v Healey [2007] WASCA 157 Dey v Victorian Railways Commissioners [1949] HCA 1; (1949) 78 CLR 62 Dye v Commonwealth Securities Ltd [2012] FCA 242 Eastwood v Magnox Electric Plc [2004] UKHL 35; [2005] 1 AC 503 Faamau v Samoa Breweries Ltd [2009] WSSC 85 Fidler v Sun Life Assurance Co. of Canada [2006] 2 SCR 3 Fink v Fink [1946] HCA 54; (1946) 74 CLR 127 Foaminol Laboratories Ltd v British Artid Plastics Ltd [1941] 2 All ER 393 Foss v Harbottle (1843) 2 Hare 461; 67 ER 189 General Steel Industries Inc v Commissioner for Railways [1964] HCA 69; (1964) 112 CLR 125 Hadley v Baxendale (1854) 9 Ex 341; 156 E.R. 145 Hamlin v Great Northern Railway Co (1856) 1 H & N 408; 156 ER 1261 Harding v Teperoi Timbers Pty Ltd [1988] PNGLR 128 Helicopter Sales (Aust) Pty Ltd v Rotor-Work Pty Ltd [1974] HCA 32; (1974) 132 CLR 1 Irving v Kleinman [2005] NSWCA 116 Johnson v Unisys Ltd [2001] UKHL 13; [2003] 1 AC 518 Keays v Honda Canada Inc (2008) 294 DLR (4th) 577 Koehler v Cerebos (Australia) Ltd [2005] HCA 15; (2005) 222 CLR 44 Lai v Chamberlain [2006] NZSC 70; [2007] 2 NZLR 7 Lennon v State of South Australia [2010] SASC 272 Malik v Bank of Credit & Commerce International SA [1997] UKHL 23; [1998] AC 20 Moti v The Queen [2011] HCA 50; (2011) 86 ALJR 117 Ogilvy and Mather (New Zealand) Ltd v Turner [1994] 1 NZLR 641 Ogilvy and Mather (New Zealand) Ltd v Turner [1996] 1 NZLR 641 Peso Silver Mines Ltd. (NPL) v Cropper (1966) 58 DLR (2d) 1 Russell v The Trustees of the Roman Catholic Church for the Archdiocese of Sydney [2007] NSWSC 104; (2007) 69 NSWLR 198 Russell v Trustees of the Roman Catholic Church for the Archdiocese of Sydney [2008] NSWCA 217; (2008) 72 NSWLR 559 Spencer v The Commonwealth [2010] HCA 28; (2010) 241 CLR 118 State of New South Wales v Paige [2002] NSWCA 235; (2002) 60 NSWLR 371 State of South Australia v McDonald [2009] SASC 219; (2009) 104 SASR 344 Stuart v Armourguard Security Ltd [1996] 1 NZLR 484 Thorpe v Lochel [2005] WASCA 85; (2005) 31 WAR 500 Torres v Point Lisas Industrial Port Development Corporation Ltd (unreported, Court of Appeal of Trinidad and Tobago, 10 May 2007) Visnik v Sywak [2009] NSWCA 173 Vorvis v Insurance Corporation of British Columbia (1989) 58 DLR (4th) 193 Wallace v United Grain Growers Ltd (1997) 152 DLR (4th) 1 Whelan v Waitaki Meats Ltd [1991] 2 NZLR 74 Wright v Groves [2011] QSC 66 Texts Cited: Kelly Godfrey, "Contracts of employment: Renaissance of the implied term of trust and confidence" (2003) 74 ALJ 764 E D Ventose, "Yesterday's heresy, today's orthodoxy" (2010) 9 Oxford University Commonwealth Law Journal 149 "Aspects of Damages: Employment Contracts and the Rule in Addis v Gramophone Co", The Law Commission of New Zealand, Report No 18, Category: Principal judgment Parties: Ezekiel Ephraphroditus Shaw - First Appellant Alison Margaret Salt - Second Appellant State of New South Wales - Respondent Representation: Dr J Berwick - Appellants Mr M J Kimber SC; Ms K T Nomchong - Respondent Eddy Neumann Lawyers - Appellants Hicksons Lawyers - Respondent File Number(s): 2005/00298445 Decision under appeal Citation: Shaw and Salt v State of New South Wales Date of Decision: 2011-02-18 00:00:00 Before: Elkaim SC DCJ File Number(s): 2005/00298445