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Fair Work Ombudsman v NSW Motel Management Services Pty Ltd & Ors (No.3) [2018] FCCA 2330 (22 August 2018)
Last Updated: 23 August 2018
FEDERAL CIRCUIT COURT OF AUSTRALIA
FAIR WORK OMBUDSMAN & NSW MOTEL MANAGEMENT
SERVICES PTY LTD & ANOR (No.3)
|
|
Catchwords:
INDUSTRIAL LAW – Contraventions of Fair
Work Act 2009 (Cth) – consideration as to form of orders consequent
upon pronouncement of judgment in substantive proceedings on 20 July
2018.
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Federal Circuit Court Rules 2001 (Cth)
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Cases cited:
Fair Work Ombudsman v NSW Motel Management
Services Pty Ltd & Anor (No.2) [2018] FCCA 1935
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First Respondent:
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NSW MOTEL MANAGEMENT SERVICES PTY LTD
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Third Respondent:
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ROWENA SIOCO PARKES
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Hearing date:
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On the papers
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Date of Last Submission:
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17 August 2018
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REPRESENTATION
Solicitors for the
Applicant:
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Fair Work Ombudsman
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Solicitors for the Respondents:
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Stonier & Associates
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UPON THE COURT NOTING:
(1) The reasons for decision in Fair Work Ombudsman v
NSW Motel Management Services Pty Ltd & Anor (No.2) [2018] FCCA
1935
THE COURT DECLARES THAT:
(2) The First Respondent
contravened:
- (a) section
44 of the Fair Work Act 2009 (Cth) (FW Act), by failing to pay Mr
Rolando Gagate (Mr Gagate) and Mr Michael Tan (Mr Tan) their
entitlements to annual leave as prescribed by subsection 90(1) of the FW
Act;
- (b) section
44 of the FW Act, by failing to pay Mr Gagate his entitlement to annual leave
upon termination of employment as prescribed
by subsection 90(2) of the FW
Act;
- (c) section
44 of the FW Act, by cashing out the annual leave of Ms Maricar Virata (Ms
Virata) in contravention of section 92 of the FW Act;
- (d) section
44 of the FW Act, by failing to give each of Mr Gagate, Mr Tan, Ms Virata and Ms
Rhea Monleon (Ms Monleon) (collectively, the Employees) the Fair
Work Information Statement as required by subsection 125(1) of the FW Act;
- (e) section
45 of the FW Act, by failing to pay Mr Gagate and Mr Tan minimum hourly rates as
prescribed by clauses 20.1 and A.3.6
of Schedule A of the Hospitality
Industry (General) Award 2010 (Modern Award) during the following
employment periods:
- (i) Mr Gagate:
9 February 2013 to 13 April 2014; and
- (ii) Mr Tan: 24
November 2012 to 24 February 2013 (Taree), 17 June 2013 to 14 September 2014
(Queanbeyan) and 15 September 2014 to
11 January 2015 (Halls Gap) (Employment
Periods);
- (f) section
45 of the FW Act, by failing to pay Mr Gagate and Mr Tan Saturday penalty rates
as prescribed in clauses 32.1 and A.7.3
of Schedule A of the Modern Award during
the Employment Periods;
- (g) section
45 of the FW Act, by failing to pay Mr Gagate and Mr Tan Sunday penalty rates as
prescribed in clauses 32.1 and A.7.3
of Schedule A of the Modern Award during
the Employment Periods;
- (h) section
45 of the FW Act, by failing to pay Mr Gagate and Mr Tan public holiday penalty
rates as prescribed in clauses 32.1 and
A.7.3 of Schedule A of the Modern Award
during the Employment Periods;
- (i) section
45 of the FW Act, by failing to pay Mr Gagate and Mr Tan overtime rates (Monday
to Friday) as prescribed by subclause
33.3(a)(i) of the Modern Award during the
Employment Periods;
- (j) section
45 of the FW Act, by failing to pay Mr Gagate and Mr Tan overtime rates
(weekends) as prescribed by subclause 33.3(a)(ii)
of the Modern Award during the
Employment Periods;
- (k) section
45 of the FW Act, by failing to pay Mr Gagate and Mr Tan evening penalty rates
as prescribed by subclause 32.2(a) and
clauses A.7.3 and A.5.4 of Schedule A of
the Modern Award during the Employment Periods;
- (l) section
45 of the FW Act, by failing to pay Mr Gagate and Mr Tan annual leave loading as
prescribed by clause 34.2 of the Modern
Award during the Employment
Periods;
- (m) section 45
of the FW Act, by failing to prepare rosters for Mr Tan and Mr Gagate that
complied with clause 30.1 of the Modern
Award during the Employment Periods
- (n) subsection
323(1)(a) of the FW Act, by failing to pay Ms Virata, Mr Gagate and Mr Tan in
full, during the Employment Periods in
respect of Mr Gagate and Mr Tan, and from
11 February 2013 to 14 July 2013 in respect of Ms Virata;
- (o) subsection
535(1) of the FW Act by failing to make and keep records as prescribed by
regulation 3.32 of the Fair Work Regulations 2009 (Cth) (FW
Regulations) in respect of Mr Gagate during the relevant Employment
Periods;
- (p) subsection
535(1) of the FW Act by failing to make and keep records as prescribed by
regulation 3.34 of the FW Regulations in
respect of Mr Gagate and Mr Tan during
the Employment Periods;
- (q) subsection
535(1) of the FW Act by failing to make and keep records as prescribed by
regulation 3.36(1) of the FW Regulations
in respect of Mr Gagate during the
relevant Employment Periods;
- (r) subsection
535(1) of the FW Act and regulation 3.44(1) of the FW Regulations, by keeping
records that were false and misleading
in relation to the net amount paid to Ms
Monleon on a weekly basis from on or about 8 July 2012 to 4 November 2013;
- (s) subsection
535(1) of the FW Act and regulation 3.44(1) of the FW Regulations, by keeping
records that were false and misleading
in relation to the employment status of
Mr Tan while he was employed at Halls Gap;
- (t) section
536(1) of the FW Act, by failing to provide Ms Virata, Ms Monleon and Mr Tan pay
slips within one day of payment for work
performed by them;
- (u) subsection
340(1)(a) of the FW Act, by taking adverse action, within the meaning of
subsection 342(1) of the FW Act, against Ms
Monleon because she exercised a
workplace right pursuant to subsection 340(1)(a) of the FW Act; and
- (v) subsections
340(1)(a) and 340(1)(b) of the FW Act, by taking adverse action, within the
meaning of subsection 342(1) of the FW
Act, against Mr Tan because he had a
workplace right or to prevent him from exercising same.
(3) The Second Respondent was involved, pursuant to section 550(1) of the FW
Act, in the contraventions of the First Respondent referred
to in each of
paragraph (2)(a) to (2)(t) (inclusive).
(4) The Third Respondent was involved, pursuant to
section 550(1) of the FW Act, in the contraventions of the First Respondent
referred
to in each of paragraph (2)(c), (2)(n) (in respect of Ms Virata only),
(2)(u) and (2)(v) above.
.
THE COURT ORDERS THAT:
(5) The page limited referred to at order [8] and [10]
of the orders of 10 August 2018 be 20 pages, (plus any annexures) and 5 pages
in
respect of the applicant’s submissions in reply referred to in order [11]
of the orders of 10 August 2018.
(6) The penalty hearing be fixed for 14 March 2019.
FEDERAL CIRCUIT COURT
OF AUSTRALIA
AT MELBOURNE
|
MLG 661 of
2016
Applicant
And
NSW MOTEL MANAGEMENT SERVICES PTY
LTD
|
First Respondent
Second Respondent
Third Respondent
REASONS FOR JUDGMENT
Introduction
- Reasons
for judgment in these proceedings were delivered on 20 July 2018 in Fair
Work Ombudsman v NSW Motel Management Services Pty Ltd & Anor (No.2) [2018]
FCCA 1935 (“the Liability Decision”).
- In
the Liability Decision the Court made the following directions:
- “(1)
The parties are directed to confer and, if possible, bring in a minute of
proposed orders to be made to give effect to
these reasons for decision on or
before 4pm on 3 August 2018.
- (2) In the
event of any dispute as to the form of any order to give effect to these reasons
for decision:
- (a) the
applicant file and serve a draft minute of orders accompanied by an outline of
submissions (limited to 5 pages) addressing
any disputed question in that
respect by 10 August 2018; and
- (b) the
respondents file and serve a draft minute of any alternative orders accompanied
by an outline of submissions (limited to
5 pages) addressing any disputed
question in that respect by 17 August 2018.
- (3) Any
question with respect to paragraph 2 shall be resolved on the papers unless in
written submissions filed in accordance with
the allocated timetable either
party seeks an oral hearing in which case the matter be listed on 24 August 2018
to make orders to
give effect to these reasons for decision.
- (4) Subject
to the above orders the remainder of the proceedings be adjourned to a date to
be fixed to program the further conduct
of the proceedings in relation to the
penalty if any that should be imposed on the respondents for the breaches of the
FW Act referred
to in the accompanying reasons for decision and the Amended SOAF
filed 2 March 2018.”
- The
Court directed the parties to confer and if possible, agree on orders necessary
to give effect to the findings made in the Liability
Decision.
- On
3 August 2018, the parties advised the Court they were making progress in
preparing the proposed orders and requested an extension
until 7 August 2018 to
comply with the directions in the Liability Decision.
- On
7 August 2018 the parties advised the Court via email correspondence as
follows:
- Please find
attached a minute of proposed orders signed by the parties and for his
Honour’s consideration, concerning the liability decision and
the future
programming of these proceedings.
- We note
that the proposed orders identify the following issues as being in dispute
between the parties and for which short submissions
and a draft minute of
proposed orders will be filed:
- (a) the
effect of paragraphs 257 and 327(a) of the Reasons for Judgment delivered on 20
July 2018; and
- (b) the
page limit, if any, to be ordered by the Court in respect of the submissions to
be filed by the parties on the question of
penalties.
- On
receipt of this advice, a telephone mention was convened after which the
following orders were made:
- “1.
Order 2 and 3 made by the Court on 20 July 2018 be vacated.
- 2. By 10
August 2018, the Applicant is to file and serve a draft minute of orders
accompanied by an outline of submissions(limited
to 3 pages)
addressing:
- (a) the
effect of paragraphs 257 and 327(a) of the Reasons for Judgment delivered on 20
July 2018 (the Paragraphs 257 and 327(a)
Issue) and;
- (b) the
page limit, if any, to be ordered by the Court in respect to the submissions to
be filed by the parties on the question of
penalties (the Page Limit
Issue).
- 3. By 17
August 2018, the Respondents are to file and serve a draft minute of orders
accompanied by an outline of submissions (limited
to 3 pages) addressing the
Paragraphs 257 and 327(a) Issue and the Page Limit Issue.
- 4. The
Court is to determine on the papers the Paragraphs 257 and 327(a) Issue and the
Page Limit Issue.
- 5. By 31
August 2018, the Applicant is to file and serve any evidence in respect of the
penalties, together with a list precisely
identifying the existing evidence on
which they intend to rely on in respect of the penalties.
- 6. By 12
October 2018, the Respondents are to file and serve any evidence in respect of
the evidence in respect of the penalties,
together with a list precisely
identifying the existing evidence on which they intends to rely in respect of
the penalties.
- 7. By 26
October 2018, the Applicant is to file and serve any evidence in reply.
- 8. By 2
November 2018, the Applicant is to file and serve their submissions, subject to
any page limit ordered by the Court in resolution
of the Page Limit
Issue.
- 9. By 9
November 2018, each party is to advise the other party, in relation to each
witness who has provided affidavit evidence in
respect of the penalties on
behalf of the other party, which witnesses are required for
cross-examination.
- 10. By 29
November 2018, the Respondents are to file and serve their submissions, subject
to any page limit ordered by the Court
in resolution of the Page Limit
Issue.
- 11. By 21
December 2018, the Applicant is to file and serve their submissions in reply,
subject to any page limit ordered by the
Court in resolution of the Page Limit
Issue.
- 12. The
matter be listed for a one day hearing on a date to be fixed by the Court, not
before February 2019 and not including the
period from 19 February to 12 March
2019.
- 13.
Pursuant to section 66 of the Federal Circuit Court of Australia Act 1999
(Cth), any witness who has provided affidavit evidence and is required to
attend for cross-examination, be permitted to appear and give
evidence by video
link at the expense of the party on whose behalf the affidavit has been
provided, if that witness resides outside
Victoria.”
- As
it clear from the above, the parties have been able to agree on all the orders
necessary to give effect to the findings made in
the Liability Decision save for
two issues which arise from paragraphs 257 and 327(a) thereof respectively.
- These
reasons explain what orders (including if necessary any additional orders to
those already agreed by the parties) are necessary
to give effect to the
Liability Decision and to otherwise make the necessary declarations to record
the findings set out therein.
- For
the purposes of these reasons, terms defined in the Liability Decision (which
should be read in conjunction with those reasons)
have the same meaning in these
reasons unless otherwise indicated.
Submissions
- As
provided for in the directions made by the Court on 10 August 2018 the parties
have filed outlines of written submissions in support
of their respective
positions on the outstanding issues arising from the Liability Decision which
they agreed should be resolved
on the papers.
The applicant’s submissions
- The
applicant’s submissions on the outstanding issues arising from the
Liability Decision were filed on 10 August 2018 and,
so far as is relevant to
resolve those issues, were:
- “Paragraph
257 of the Liability Decision
- 2.
Paragraph 257 concerns the issue of whether there was a failure by the First
Respondent to comply with rostering obligations contained
in the Hospitality
Industry (General) Award 2010 (Award). The first sentence of that
paragraph states: “It is important that the parties abide by their pleaded
case/s and the Amended
SOAF.”
- 3. The
relevant paragraph of the Amended Statement of Agreed Facts dated 2 March 2018
(Amended SOAF) is paragraph 81. Relevantly, the parties agree that
(emphasis added) the First Respondent failed to prepare “rosters at Halls
Gap which at all times recorded the names, and start and finish times of Mr
Gagate and Mr Tan as required by clause 30.1 of the Modern Award” and
“any rosters in respect of Mr Tan’s employment at Queanbeyan
and
Taree”, and that this was a contravention of clause 30.1 of the Award and
s 45 of the Fair Work Act 2009 (Cth) (FW Act).
- 4. Those
facts were agreed between the parties for the purpose of s 191 of the Evidence
Act 1995 (Cth) (Evidence Act). Leave of the Court to dispute the agreed
fact was not sought or given for the purposes of section 191(2) of the Evidence
Act.
- 5. At
paragraph 121 of the Defence, relevantly, the Respondents admitted that when the
Employees (which includes Mr Tan and Mr Gagate) were engaged at the First
Respondent’s motel business at Halls Gap, the First Respondent failed to
prepare rosters
that at all times contained the names of each of the Employees,
and contained the start and finish times of each of the Employees.
These were
not facts in issue. See also paragraph 248 of the Liability Decision.
- 6. In
relation to Queanbeyan and Taree, it was not in issue that the First Respondent
failed to prepare any rosters at all in respect
of (relevantly) Mr Tan. See
paragraph 122 of the Defence and paragraph 81(b) of the Amended SOAF.
- 7.
Paragraph 257 of the Liability Decision, insofar as it refers to Halls Gap, only
expressly mentions a contravention regarding
Mr Gagate’s employment. It
does not refer to rosters for Mr Tan at Halls Gap. As the Applicant understands
it, the Respondents
assert, on the basis of that apparently inadvertent
omission, that a declaration of contravention of the rostering requirement in
relation to Halls Gap should only be made in respect of Mr Gagate (not Mr
Tan).
- 8. The
Applicant submits that the Respondents should be held to their pleaded case,
and to the admitted facts in paragraph 81 of the Amended SOAF. On that
basis, the declaration of contravention of the rostering requirement in relation
to Halls Gap should extend to both Mr Gagate and Mr Tan, and in
respect of Queanbeyan and Taree it should extend to Mr Tan.
- 9. If an
amendment to paragraph 257 of the Liability Decision be required, under the slip
rule[1], to replace “Mr
Gagate” with “Mr Gagate and Mr Tan”, then the Applicant
submits that such an amendment should be made. Such an amendment might be made
under r 16.05(2)(e) of
the Federal Circuit Court Rules 2001 (Cth),
to give effect to the Court’s intention that the parties abide by their
pleaded cases and the Amended SOAF.
- 10.
Proposed orders 3A and 3B in the minute at Annexure A to these
submissions are consistent with paragraph 81 of the Amended SOAF and the
Respondents’ admissions at paragraphs 121
and 122 of the Defence, and with
the finding at paragraph 355 of the Liability Decision (see the reference to row
“o“
of Annexure B of the Liability Decision).
- Paragraph
327(a) of the Liability Decision
- 11.
Paragraph 327(a) of the Liability Decision records a finding that “the
First Respondent contravened s340(1)(a) of the FW
Act by taking adverse action
against Ms Monleon because she exercised a workplace right”. It is
apparent that this is a reference
to the earlier finding, at paragraph 314, that
“...the first respondent (through the third respondent) contravened
340(1)(a)
of the FW Act, by engaging in the threat to terminate Ms Monleon
because she exercised a workplace right.”
- 12. The
Applicant does not read paragraph 327(a) of the Liability Decision to the
“Direction to Under Record Hours” referred to at paragraph 127
of
the Statement of Claim and paragraphs 322 of the Liability Decision, insofar as
it related to Ms Monleon. No contravention was
found, in relation to that
Direction being given to Ms Monleon, because of the finding that she did not
have a “workplace right”
of the kind pleaded: see paragraph 321 of
the Liability Decision.
- 13.
Insofar as there was a contravention found in relation to the Direction to Under
Record Hours, that contravention is limited
to Mr Tan: paragraphs 321-326 of the
Liability Decision. It is that contravention, in respect of Mr Tan, which is
referred to in
paragraph 327(b) of the Liability Decision.
- 14. We
understand that the Respondents will seek that the Court amend paragraph 327(a)
of the Liability Decision. In our respectful
submission, and in light of the
understanding at paragraphs 11-13 above, there is no need for any such
amendment.
- 15.
Paragraphs 327(a) and (b) of the Liability Decision are reflected in orders 1(t)
and 1(u) respectively of the Parties’
Minute. There is no need to amend
those proposed orders. (emphasis added)
The respondents’ submissions
- In
accordance with the orders of 10 August 2018, the respondents’ submissions
on the outstanding issues arising from the Liability
Decision were filed on 17
August 2018 and, so far as is relevant to resolve those issues,
were:
- “The
effect of paragraph 257 of the reasons for judgment
- 2. The
first contested order relates to the allegation that there was a breach of s 45
of the Fair Work Act by failing to prepare rosters that complied with clause
30.1 of the Modern Award.
- 3. At [257]
of the Court’s reasons, the Court stated:
- “...
On the evidence before the Court in relation to rosters the evidence which I
accept was they were prepared for Halls Gap
but not for Taree or Queanbeyan.
However, in relation to the former I also accept that those that were prepared
(in so far as the
Modern Award imposed such a requirement in relation to Mr
Gagate) did not comply.”
- 4. The
Respondents submit that these reasons are best reflected in an order in the
following terms:
- The First
Respondent contravened section 45 of the FW Act, by failing to prepare rosters
for Mr Tan and Mr Gagate that complied with
clause 30.1 of the Modern Award
during the Employment Periods other than for Mr Tan at Halls Gap.
- This is so
because the Court’s reasons at [257] make it plain that the only breach
arising from the Halls Gap rosters were
those relating to Mr Gagate.
- 5. The
Applicant’s submissions should be rejected because she seeks to supplement
the Court’s reasons with what she claims
was ‘inadvertence’ by
this Court; see [7] of the Applicant’s submissions. By contrast, the
Respondents’ proposed
order does as the order of the Court requested
– that is, they provide an order which gives effect to the reasons for
decision,
and no more.
- The
effect of paragraph 327(a) of the reasons for judgment
- 6. The
Respondents respectfully submit that the Court should issue a corrigendum to
delete paragraph [327(a)]. It states:
- “I am
satisfied that the first respondent contravened:
- a) s.
340(1)(a) of the FW Act by taking adverse action against Ms Monleon because she
exercised a workplace right...”
- 7. The only
reason for this suggestion is that this conclusion seems to be inconsistent with
the finding at [321] to the following
effect:
- “...
The situation in relation to Ms Monleon however, is different for the reasons
set out earlier and I am not satisfied that
she had the workplace right as
pleaded in relation to this instance of alleged adverse
action.”
Resolution of outstanding issues from Liability
Decision
- As
is clear from the parties’ submissions, there are two points of contention
that arise from what the parties have filed. Subject
to the resolution of that
controversy, only one further order (beyond those the parties otherwise agreed
need to be made to reflect
the findings in the Liability Decision) may need to
be made.
- The
first issue to resolve concerns paragraph 257 of the Liability Decision and
what, if any, declarations are required to record
the findings made by the Court
in the Liability Decision on the allegations made that the first respondent had
failed to comply with
its obligations in relation to rosters as provided for in
the Modern Award.
- The
Liability Decision dealt with this issue at paragraphs [248] to [257] inclusive
and did so in the context of what was the agreed
position of the parties on the
remaining issues in dispute and against the background of the pleadings and the
Amended S.O.A.F. filed
in March 2018.
- Against
that background, a focus on paragraph [257] of the Lability Decision in
isolation is apt to elide the findings that are properly
found in the Liability
Decision which were that the first respondent contravened section 45 of the
Fair Work Act 2009 by failing to prepare rosters for Mr Tan and Mr Gagate
that complied with clause 30 of the Modern Award during their employment periods
with the first respondent.
- The
second matter of contention or controversy between the parties as to the orders
and declarations necessary to give effect to the
findings made in the Liability
Decision concerned paragraphs 327(a) thereof.
- The
Liability Decision dealt with the allegations of adverse action made against the
respondents at paragraphs [269] to [327] inclusive.
As the applicant’s
submissions filed 10 August 2018 correctly record the finding made at paragraph
327(a) of the Liability
Decision is recorded as a result of what proceeded it
and in particular, what was set out at paragraph [314] of the Liability
Decision.
- The
applicant’s submissions filed 10 August 2018 at paragraphs [11] to [13]
with respect, correctly summarises the findings
made in the Liability Decision
with respect to the allegation that the first respondent (through the third
respondent) contravened
section 340(1)(a) of the FW Act by engaging in the
threat to terminate Ms Monleon because she exercised a workplace right.
- Notwithstanding
the respondents’ submissions at paragraph [12] above , in light of what
was set out at paragraphs [269] to [327]
of the Liability Decision there is no
licence to construe the findings (or paragraph 327(a) which was a summary of the
foregoing)
otherwise.
Submissions for penalty phase
- The
parties also agreed that in addition to resolving the outstanding issues arising
from the Liability Decision on the papers, the
Court should also address the
page limit to be applied to the parties’ submissions to be filed in
respect of the penalty phase
of these proceedings.
- The
parties’ submissions filed 10 August 2018 (at paragraphs [16] to [20]) and
17 August 2018 (at paragraphs [8] to [12]) respectively
addressed the remaining
issue between them in the context of what were otherwise uncontroversial
directions for a penalty hearing
to be on held on 14 March 2019
- Given
the history of the proceedings and mindful of the number of contraventions (and
the declarations of same which will be necessary
to record at the beginning of
these reasons to give effect to the Liability Decision) a limit of 20 pages (not
inclusive of annexures)
to primary submissions and 5 pages in reply is not
unreasonable.
Orders to give effect to Liability Decision
- Subject
to the resolution of those outstanding issues, in their correspondence to the
Court on 7 August 2018, the parties attached
a minute of proposed orders (which
were otherwise agreed as necessary) to give effect to the Liability
Decision.
- With
the amendments referred to in paragraph 23 above, the orders will be as proposed
by the applicant on the outstanding issues,
and otherwise, as agreed by the
parties as necessary, to give effect to the Liability Decision.
Conclusion
- Given
the resolution of what the parties described as the two outstanding issues for
the reasons set out above there will be declarations
made to give effect to the
findings made in the Liability Decision in the terms set out at the beginning of
these reasons for decision.
I certify that the preceding 26Error!
Style not defined.!Syntax Error, !Error! Style not defined.Error! Style not
defined.!Syntax
Error, !twenty-sixtwenty-six (26) paragraphs are a true copy of
the reasons for judgment of Judge
O'Sullivan
Date: 22 August 2018
[1] See Federal Circuit Court
Rules 2001 (Cth), r 16.05(2)(h).
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