State of New South Wales v Shaw [2015] NSWCA 97

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: State of New South Wales v Shaw [2015] NSWCA 97 Hearing dates: 9 March 2015 Date of orders: 17 April 2015 Decision date: 17 April 2015 Before: Beazley P [1]; Ward JA [2]; Gleeson JA [207] Decision: 1.Appeal allowed. 2.Cross-appeal dismissed. 3.Set aside the orders made by Sorby DCJ on 10 April 2013 awarding judgment for both plaintiffs against the defendant and ordering the defendant to pay the plaintiffs' costs of the trial. 4.In lieu thereof, order that judgment be entered for the defendant against the plaintiffs. 5.Set aside orders 2, 3 and 4 of the orders made by Sorby DCJ on 6 June 2013. 6.Order that the respondents/cross-appellants pay the costs of the appellant/cross-respondent both of the appeal and of the proceedings in the District Court. Catchwords: CONTRACTS – employment – probationary teachers - implied terms – whether term of mutual trust and confidence implied into employment contract as a matter of law by way of necessity – whether term of good faith implied into employment contract as a matter of law by way of necessity – whether breach of any implied term of good faith

CONTRACTS – employment – incorporation of extrinsic document – whether evaluative provisions of Teachers' Handbook incorporated into employment contract

CONTRACTS – employment – repudiation – whether contract was repudiated – whether repudiation accepted

COSTS – general rule that costs follow the event Legislation Cited: Industrial Relations Act 1996 (NSW) Police Act 1990 (NSW) Racial Discrimination Act 1975 (Cth) Teaching Services Act 1980 (NSW) Cases Cited: Agrokor AG v Tradigrain SA [2000] 1 Lloyd's Rep 497 Anglo-Cyprian Trade Agencies Ltd v Paphos Wine Industries Ltd Automatic Fire Sprinklers v Watson [1946] HCA 25; (1946) 72 CLR 435 Beck v LW Furniture Consolidated (Aust) Pty Ltd [2012] NSWCA 76 BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266; (1977) 52 ALJR 20 Bropho v Human Rights and Equal Opportunity Commission [2004] FCAFC 16; (2004) 135 FCR 105 Byrne v Australian Airlines Ltd [1995] HCA 24; (1995) 185 CLR 410 Champerslife Pty Ltd v Manojlovski [2010] NSWCA 33; (2010) 75 NSWLR 245 Commissioner of Police v Eaton [2013] HCA 2 Commonwealth Bank of Australia v Barker [2014] HCA 32 Coulton v Holcombe [1986] HCA 33; (1986) 162 CLR 1 Eastwood v Magnox Electric plc [2005] 1 AC 503 Ex parte Wurth; Re Tully (1954) 55 SR (NSW) 47 Franklins Pty Ltd v Metcash Trading Ltd [2009] NSWCA 407; (2009) 76 NSWLR 603 Goldman Sachs JB Were Services Pty Ltd v Nikolich (2007) FCAFC 120; 163 FCR 6 Hawkins v Clayton (1988) 164 CLR 539 Hepstonstall v Gaskin (No 2) [2005] NSWSC 30; (2005) 138 IR 103 Heyman v Darwins Ltd [1942] AC 356 House v The King [1936] HCA 40; (1936) 55 CLR 499 Irving v Kleinman [2005] NSWCA 116 Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd [2007] HCA 61; (2007) 233 CLR 115 Lakshmijit v Sherani [1974] AC 605 Malik v Bank of Credit and Commerce International SA (In Liq) [1998] AC 20 McDonald v Dennys Lascelles Ltd [1933] HCA 25; (1933) 48 CLR 457 Motium Pty Ltd v Arrow Electronics Australia Pty Ltd [2011] WASCA 65 Norwest Holst Group Administration Ltd v Harrison Nullagine Investments Pty Ltd v Western Australian Club Inc [1993] HCA 45; (1993) 177 CLR 635 Pacific Brands Sports and Leisure Pty Ltd v Underworks Pty Ltd [2005] FCA 288 Protector Glass Industries Pty Ltd v Southern Cross Autoglass Pty Ltd [2015] NSWCA 16 Riverwood International Australia Pty Ltd v McCormick [2000] FCA 889; (2000) 177 ALR 193 Russell v Trustees of the Roman Catholic Church for the Archdiocese of Sydney [2007] NSWSC 104; (2007) 69 NSWLR 229 Russell v Trustees of the Roman Catholic Church for the Archdiocese of Sydney [2008] NSWCA 217; (2008) 72 NSWLR 559; (2008) 176 IR 82 Ryder v Frohlich [2004] NSWCA 472 Salt v Director General, Department of Education and Training (EOD) [2007] NSWADTAP 60 Salt v NSW Department of Education and Training [2006] NSWADT 326 Shaw v State of New South Wales (District Court (NSW), Sorby DCJ, 6 April 2013, unrep) Shaw v State of New South Wales (District Court (NSW), Sorby DCJ, 10 April 2013, unrep) Shaw v State of New South Wales [2012] NSWCA 102 Suttling v Director General of Education (1985) 3 NSWLR 427 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd [2004] HCA 52; (2004) 219 CLR 165 University of Wollongong v Metwally (No 2) [1985] HCA 28; (1985) 60 ALR 68 Texts Cited: GE Dal Pont, Law of Costs, (2003, LexisNexis Butterworths) GJ McCarry, Aspects of Public Sector Employment Law, (1988, The Law Book Company Ltd) Hamilton, Lindsay and Webster NSW Civil Procedure (2013, Thomson Reuters) MR Freedland, The Personal Employment Contract, (2003, Oxford University Press) Category: Principal judgment Parties: State of New South Wales (Appellant/Cross-Respondent) Ezekiel Ephaphroditus Shaw (First Respondent/First Cross-Appellant) Alison Margaret Salt (Second Respondent/Second Cross-Appellant) Representation: Counsel: Ms KT Nomchong SC with Y Shariff (Appellant/Cross-Respondent) Dr J Berwick (First and Second Respondents/First and Second Cross-Appellants)