Trustee for The MTGI Trust v Johnston (No 2)
At a glance
- 1
What happened
MTGI (the Trustee for MTGI Trust) initiated proceedings seeking judicial review of two decisions of the Fair Work Commission Full Bench. The Full Bench had refused permission to appeal decisions of Senior Deputy President Boulton awarding David Johnston compensation of 20 weeks' pay plus costs for unfair dismissal. This was the fifth piece of litigation between MTGI and Johnston. MTGI abandoned five of eleven grounds on the eve of hearing.
What was decided
The Full Court dismissed MTGI's application for judicial review. The Court found the proceedings were instituted without reasonable cause as the application had no real prospects of success when it was filed. MTGI and Paul Desmond Wallace (the sole director and shareholder of MTGI) were ordered to pay Johnston's costs of $48,387.18 on an indemnity basis.
What it means for employers
Employers who bring repeated litigation that lacks reasonable prospects of success may face adverse costs orders. Courts will scrutinise vexatious or unreasonable litigation pursuing employment disputes.
What it means for employees
Employees who successfully defend against vexatious litigation can recover their legal costs on an indemnity basis. Unfair dismissal awards may be protected against repeated challenges.
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