Lennon v SA

[2010] SASC 272

Supreme Court of South Australia

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Interrogate

Catchwords

1. Employment Law
2. › Termination and breach of contract
3. › Constructive dismissal
4. › Whether employer's conduct amounted to repudiation
5. › Whether investigation of employee constituted breach
6. › Whether resignation constituted acceptance of repudiation
1. Employment Law
2. › Implied terms
3. › Duty of mutual trust and confidence
4. › Whether implied by law into employment contract
5. › Whether implied in fact
6. › Whether breached by employer's investigation conduct
1. Contract
2. › General contractual principles
3. › Construction and interpretation
4. › Implied terms
5. › Implication of terms in fact
6. › BP Refinery test
7. › Whether statutory provision incorporated as contractual term
8. › Public Sector Management Act 1995 (SA), s 5(b)
1. Damages
2. › General principles
3. › Damages for breach of employment contract
4. › Whether damages for distress, humiliation and injury to reputation recoverable
5. › Baltic Shipping exception
6. › Loss of chance
7. › Assessment principles

Quick Take

A term of mutual trust and confidence is implied by law into public sector employment contracts in South Australia, following [name withheld]. Section 5(b) of the Public Sector Management Act 1995 (SA) is not incorporated as an express term of a Chief Executive's employment contract. Damages for distress, humiliation and injury to reputation are not recoverable for breach of an employment contract or constructive dismissal absent the Baltic Shipping exception or analogous circumstances. In assessing loss of chance damages for wrongful dismissal, the court may apply a significant discount (here 50%) where the employee's own conduct made it unlikely the contract would have continued to its full term.