Farquharson v Queensland Racing Integrity Commission [2018] QIRC 1
QUEENSLAND INDUSTRIAL RELATIONS COMMISSION
CITATION: Farquharson v Queensland Racing Integrity
Commission [2018] QIRC 001
PARTIES: Farquharson, David
(Applicant)
v
Queensland Racing Integrity Commission
(Respondent)
CASE NO: TD/2017/21
PROCEEDING: Application for Reinstatement
DELIVERED ON: 8 January 2018
HEARING DATE: 13 November 2017
HEARD AT: Brisbane
MEMBER: Deputy President Bloomfield
ORDERS: 1. That Mr Farquharson be reinstated to
his former position of Chief Stipendiary
Steward - Harness, with the Queensland
Racing Integrity Commission from
24 February 2017.
2. That Mr Farquharson's continuity of
employment be maintained for all
purposes of his Contract of Employment
- both written and legislatively provided.
3. That Mr Farquharson be paid any
remuneration lost since his dismissal
after taking into account any
employment benefits or wages received
by him since his dismissal.
4. That the parties discuss, with the
intention of agreeing, how any statutory
entitlements paid to Mr Farquharson at
the time of his original termination are to
be treated. In the event the parties are
unable to agree, liberty to apply is
granted.
-- 1 of 28 --
2
INDUSTRIAL LAW - TERMINATION OF
EMPLOYMENT - APPLICATION FOR
REINSTATEMENT - where summary dismissal
- where investigation into applicant's behaviour
during Stewards' Inquiry Hearing - where
allegations of serious misconduct - whether
applicant engaged in an act of dishonesty -
whether applicant engaged in an act and/or
omission that could negatively affect the
reputation or good standing of the employer -
whether applicant engaged in an act or omission
that could preclude or inhibit him from
performing his duties - where the applicant
denies making false statements - whether the
applicant made a mistake which he failed to
correct - whether the dismissal was harsh, unjust
or unreasonable - whether trust and confidence in
the employment relationship has been broken
CASES: Industrial Relations Act 1999, s 77, s 78, s 79
Industrial Relations Act 2016, s 1024
Lamb v Redland City Council [2014] QIRC 041
Briginshaw v Briginshaw [1938] 60 CLR 337
APS Group (Placements) Pty Ltd v O'Loughlin
[2011] FWAFB 5230
Bostik (Australia) Pty Ltd v Gorgevski (No. 1)
(1992) 36 FCR 20
Perkins v Grace Worldwide (Aust) Pty Ltd [1997]
IRCA 15, 72 IR 186
Nicholson v Heaven and Earth Gallery Pty
Limited (1994) 1 IRCR 199
APPEARANCES: Mr T.A. Ryan, Counsel instructed by W.H. Tutt
Solicitors for the Applicant.
Mr J. Farren, Counsel directly instructed by the
Respondent.
Decision
Background
[1] In an application lodged on 15 March 2017, Mr David Farquharson seeks reinstatement
to his former position of Chief Stipendiary Steward - Harness with Queensland Racing
Integrity Commission (QRIC). On the basis that his termination took effect on
24 February 2017, s 1024 of the Industrial Relations Act 2016 prescribes that
Mr Farquharson's application must be heard and decided in accordance with the relevant
provisions of the Industrial Relations Act 1999 (the Act).
-- 2 of 28 --
3
[2] The decision to terminate Mr Farquharson's employment, by way of summary dismissal,
was taken by the Racing Integrity Commissioner, Mr Ross Barnett, pursuant to clause
9.4 of Mr Farquharson's Contract of Employment following:
a Crime and Corruption Commission (CCC) investigation into
Mr Farquharson's behaviour during the third day of a Stewards' Inquiry held
on 5 July 2016;
his stand down on 9 December 2016 following receipt of oral advice by
Mr Barnett from the CCC that the matter was to be referred back to him to
deal with; and
two show cause notices issued to him by Mr Barnett.
[3] Relevantly, clause 9.4 of Mr Farquharson's Contract of Employment provides as
follows:
"9.4 Notwithstanding the other provisions of this contract, the QRIC may at any
time immediately terminate the steward's employment, without payment of
notice, if the steward:
(a) Is guilty of serious misconduct including but not limited to:
. . .
(vi) any act of dishonesty or fraud in the course of or in connection
with the performance of the steward's duties and
responsibilities;
(vii) any act or omission that could negatively affect the reputation
or good standing of the QRIC or preclude or inhibit the steward
performing the duties of the position;
. . .".
[4] In the first show cause notice, dated 22 December 2016, Mr Barnett wrote:
"TAKE NOTICE that I hereby call upon you to show cause why I should not be
reasonably satisfied that you have been guilty of serious misconduct within the meaning
of clause 9.4(a)(vi) and/or (vii) of your Contract of Employment by:
1. Engaging in an act of dishonesty in the course of or in connection with the
performance of your duties and responsibilities;
2. Engaging in an act and/or omission that could negatively affect the
reputation or good standing of the QRIC;
3. Engaging in an act or omission that could preclude or inhibit you from
performing the duties of your position.
The particulars of this allegation are as follows:
-- 3 of 28 --
4
1. On Tuesday 5 July 2016, you were conducting a steward's enquiry hearing
in relation to the conduct of Mr Neale Scott ('the Hearing').
2. The enquiry hearing panel consisted of you as Chairman, Ms K Wolsey and
Mr N Torpey.
3. During the course of the Hearing, the following exchange occurred between
you and Mr Scott (at lines 3-24 of page 20 of the hearing transcript):
'MR SCOTT: So this swab stall was the very first time it was used,
and that's why I've asked what compliance it had to meet to be a swab
stall and was it inspected on that day. Is there any evidence to say -
you're obviously unaware of this now. When they cleaned out all the
trainers' gear and medications there, did anybody sanitise and sterilise
the room before they then brought my horse in there to take a swab?
THE CHAIRMAN: I inspected the swab room on the day and to me
it was sufficient to take samples. As to what the builders did or any
repairs or the standard that you talk about, I'm not aware of. But, as
a visual, as an inspection on the things that were associated with
integrity ----
MR SCOTT: So you're saying that you did it?
THE CHAIRMAN: I had a visual on the race day, yes.
MR SCOTT: But you're unaware of - you're unaware of the history
of it and you're unaware of whether the building ----
THE CHAIRMAN: They showed me where the swab stall was. I had
a look at the swab stall and I was satisfied with the way it was
presented for the collection of urine from horses, yes. (emphasis
added)'
4. The relevant race meeting was held on 13 September 2015.
5. You were not present at the relevant race meeting;
6. You did not inspect the relevant swab stall on the day of the relevant race
meeting;
7. The facts in paragraphs 4-6 above were known to you at the time you made
the emphasised statements in paragraph 3 above;
8. You made the emphasised statements in paragraph 3 above knowing them
to be false;
9. During an adjournment of the Hearing after the exchange in paragraph 3
above had occurred, Ms Wolsey said to you words, or words to the effect of
'Oh why did you say that, you weren't even working that day'.
-- 4 of 28 --
5
10. Upon resumption of the hearing, you failed to correct the false statements
emphasised in paragraph 3 above, or at all.
If this allegation is found to be substantiated, you may be liable for disciplinary action
under clause 9.4 of your Contract of Employment."
[5] In an undated letter, apparently sent to Mr Barnett in late January 2017, Mr Farquharson
responded as follows:
he denied he engaged in an act of dishonesty;
he denied he engaged in act or omission that may negatively affect the
reputation of QRIC;
he denied he engaged in conduct that may preclude or inhibit the
performance of his duties;
he agreed with the particulars contained in paragraphs 1 to 7;
he denied the particulars recorded at paragraph 8 on the basis he did not
make the statements recorded at paragraph 3 knowing them to be false; in
that:
o he inadvertently said the words " … I inspected the swab room on the
day …" when he meant to say " … for the day";
o he inadvertently said the words "I had a visual on the race day, yes"
when he meant to say " … for the race day";
o it is clear from P19 of the transcript of the Stewards' Inquiry that he
did not inspect the swab stall on the race day, as demonstrated by the
following exchange:
"MR SCOTT: Was an inspection performed then on that
facility by Racing Queensland stewards?
THE CHAIRMAN: There would have been an inspection - I
didn't conduct the inspection, but there was an inspection
carried out on that facility prior to the race meeting.
MR SCOTT: Have you got any evidence of that?
THE CHAIRMAN: Oh, no I wouldn't - it would just have been
a visual inspection I presume Mr Scott. There's a hundred
things to organise and we had to make sure that everything was
right, and you don't document every single inspection that you
do.";
o he did not realise at the time of the Inquiry that he had said the word
on rather than for;
o his comment that he inspected the swab room on race day was clearly
an inadvertent slip of the tongue when looked at in the context of the
exchange which occurred moments earlier at P19;
o had he realised his mistake he would have corrected it;
o it is plausible and consistent that he meant to say the word for instead
of the word on in reference to the swab room inspection;
-- 5 of 28 --
6
his use of the word on instead of the word for, whilst regrettable and, in
hindsight, confusing does not amount to serious misconduct;
in relation to the particulars at paragraph 9, he agreed that Ms Wolsey spoke
to him during an adjournment and said words to the effect "you weren't there
on race day" and he responded by saying "yeah, I know … I meant I
inspected it for race day"; and
he did not appreciate at the time that the matter required clarification
because of the exchange seconds earlier when he made it clear that he did
not conduct the race day inspection.
[6] In the course of his response Mr Farquharson also said:
his use of the wrong word did not, in any way, cause the Inquiry to be
compromised. The issue as to whether the swab stall was inspected was
uncontroversial and it was not a significant issue in the overall context of
the Inquiry;
his misuse of the word on instead of for does not amount to dishonesty as it
is referred to at clause 9.4(a)(vi) of his contract. For it to amount to
dishonesty there must be an intention on his part to be dishonest. In the
present case he used one word when he should have used another;
he accepted, in hindsight, that he could have corrected himself but at the
time he was under the apprehension that the earlier exchange (at page 19 of
the Scott Inquiry transcript) made it clear that he had not conducted the
inspection on race day;
he has been involved in many inquiries as a panel member (and not as
Chairman) and it was not uncommon for him to raise something which was
an obvious slip of the tongue. This did not happen on the day in question
(in that neither Ms Wolsey nor Mr Torpey spoke up);
he has been a Steward for 30 years and has never been the subject of any
disciplinary proceedings. He had already suffered a detriment, in that it had
become public knowledge he had been stood down - which had caused him
significant embarrassment both personally and professionally;
his actions could not be said to negatively affect the reputation or good
standing of QRIC - the test as to whether his actions could negatively affect
QRIC's reputation should be looked at objectively. In the present
circumstances, where he misused a word on two occasions during an
Inquiry but clarified the matter to accurately reflect the true state of the facts
at another part of the Inquiry, "could not, in my view, when looked at
objectively, amount to a negative effect on QRIC's reputation"; and
"I have a long and honest career in the harness racing industry. I would like
to continue in the industry for many years to come."
[7] Finally, Mr Farquharson recorded " … for the reasons referred to above, I submit that
cause has been shown and that I should not be the subject of any disciplinary conduct."
[8] On 6 February 2017, Mr Barnett acknowledged receipt of Mr Farquharson's undated
response to the first show cause letter. In doing so he wrote:
"I have considered all the evidence, submissions and other material relevant to
this matter (whether specifically mentioned in this decision or not) and make the
following findings in relation to each allegation, on the balance of probabilities.
-- 6 of 28 --
7
I note that you admit the following facts:
a. On Tuesday 5 July 2016, you were conducting a steward's enquiry
hearing in relation to the conduct of Mr Neale Scott ('the Hearing').
b. The enquiry hearing panel considered of you as Chairman,
Ms K Wolsey and Mr N Torpey.
c. During the course of the Hearing, the following exchange occurred
between you and Mr Scott (at lines 3-24 of page 20 of the Hearing
transcript):
'MR SCOTT: So this swab stall was the very first time it was
used, and that's why I've asked what compliance it had to meet
to be a swab stall and was it inspected on that day. Is there any
evidence to say - you're obviously unaware of this now. When
they cleaned out all the trainers' gear and medications there, did
anybody sanitise and sterilize the room before they then brought
my horse in there to take a swab?
THE CHAIRMAN: I inspected the swab room on the day and
to me it was sufficient to take samples. As to what the builders
did or any repairs or the standard that you talk about, I'm not
aware of. But, as a visual, as an inspection on the things that
were associated with integrity ----
MR SCOTT: So you're saying that you did it?
THE CHAIRMAN: I had a visual on the race day, yes.
MR SCOTT: But you're unaware of - you're unaware of the
history of it and you're unaware of whether the building ----
THE CHAIRMAN: They showed me where the swab stall was.
I had a look at the swab stall and I was satisfied with the way it
was presented for the collection of urine from horses, yes.
(emphasis added).'
d. The relevant race meeting was held on 13 September 2015.
e. You were not present at the relevant race meeting.
f. You did not inspect the relevant swab stall on the day of the relevant
race meeting.
g. The facts in paragraphs (a)-(f) above were known to you at the time
you made the emphasized statements in paragraph (c) above.
h. During an adjournment of the Hearing after the exchange in paragraph
(c) above had occurred, Ms Wolsey said to you words, or words to the
effect of 'Oh why did you say that, you weren't even working that day'.
i. Upon resumption of the hearing, you failed to correct the false
statements emphasised in paragraph (c) above, or at all.
However, you deny that you have engaged in serious misconduct.
-- 7 of 28 --
8
Disputed Facts
The only particularised fact contained in my cause notice that you deny is that
you made the emphasised statements in paragraph (c) above knowing them to be
false.
You contend that these statements were merely an 'inadvertent slip of the tongue'
and what you meant to say was that you had variously 'inspected' and 'had a visual'
on the swab room 'for' the race day, not 'on' the race day. In particular, you point
to the . . . earlier exchange with Mr Scott during the Hearing to suggest that it was
clear that you were not present on the race day and that your later suggestion that
you were present was a slip, rather than intentionally false statement (at page 19
of the Hearing transcript):
. . .
For the following reasons, it is my view that you seek to place a gloss on your
later statements.
First, your statements were entirely unambiguous and repeated. You asserted that
you inspected the swab room 'on the day' and then when asked by Mr Scott to
confirm that you personally did the inspection being referred to, you repeated the
assertion - 'I had a visual on the race day, yes.'
Second, the correct characterisation of your later statements must be made upon
an analysis of the full context of the hearing, not by selective quotation of
particular exchanges. During that part of the hearing, Mr Scott was enquiring as
to whether there were standards set down for swab facilities and, if so, whether
they were followed at the relevant race track on the day his horse was tested. As
to the first question, you could not answer it accurately (see page 18 at lines 14
onwards and 39 onwards). When Mr Scott directly asked whether an inspection
had been performed on the Deagon complex, the exchange you rely upon
occurred. It is noted that your answer was that an inspection had been carried out
by stewards 'prior to the race meeting', not on the race day. The exchange between
Mr Scott and the hearing panel then proceeded as follows (see page 19 at line 27
onwards):
'MR SCOTT: Mm-hm. Do you know how many times has that swab room
been used at Deagon prior to 13 September?
MS WOLSEY: The year before.
THE CHAIRMAN: Yeah, the race meeting the year before, and also the
picnic thoroughbred meeting that was conducted there.
MR TORPEY: In the thoroughbreds, there have been samples taken at
barrier trials there as well during that last 12 months in particular.
MR SCOTT: That swab stall was built for that day. It was previously a
trainers' storage room. They cleaned - they got all the trainers to clean out
all their gear and their medications and whatever they had in there and then
-- 8 of 28 --
9
they put up a wall inside and used it as a swab stall on that day. It was the
very first day that the swab stall has ever been used at Deagon. Those
meetings that you're talking about at the picnic meeting and the other
thoroughbred meetings, and the picnic meeting between the thoroughbred
and harness, all over the last 12 months, that swab room was not used, they
used to use [it] around near the sand roll for that, right.
MR TORPEY: Mmm.
MR SCOTT: So this swab stall was the very first time it was used, and
that's why I've asked what compliance it had to meet to be a swab stall and
was it inspected on that day. Is there any evidence to say - you're obviously
unaware of this now. When they cleaned out all the trainers' gear and
medications there, did anybody sanitise and sterilise the room before they
then brought my horse in there to take a swab?' (emphasis added).
It is then that you state that you personally inspected the swab room on the day of
the race meeting and were satisfied that it was sufficient to take samples.
Considered in its full context, I infer that you made this statement knowing it to
be false because Mr Scott had exposed that the Hearing panel were unaware that
the relevant swab room had been used for the first time at that race meeting and
you wanted to terminate Mr Scott's line of enquiry by asserting that you personally
inspected the swab room on the race day and found it to be suitable. Further,
perusal of the transcript discloses that this is what in fact occurred, with Mr Scott
turning his attention to the manner in which the samples were taken and handled.
Finally, you contend that, had you realised your mistake, you would have
corrected it. However, you admit that during the adjournment of the hearing after
the relevant exchange had occurred, Ms Wolsey said to you words, or words to
the effect of 'Oh why did you say that you weren't even working that day' and
upon resumption of the hearing, you failed to correct the false statements you had
made to Mr Scott. I therefore reject your claim that you had not realised your
mistake.
As such, I reject your contentions and am reasonably satisfied that, on the balance
of probabilities, you made the statements emphasised in paragraph 3 of the
particulars contained in the first show cause notice, knowing them to be false.
I therefore find that I am reasonably satisfied that all of the particularised
facts alleged in the first show cause notice are proven.
Serious Misconduct
You deny that you have engaged in an act of dishonesty in the course of or in
connection with the performance of your duties and responsibilities on the basis
that you did not intend to be dishonest and you mistakenly used one word - 'on'
instead of another - 'for'.
-- 9 of 28 --
10
For the reasons given above, I am reasonably satisfied that you made the
statements emphasised in paragraph 3 of the particulars contained in the first show
cause notice, knowing them to be false.
You admit that the falsity of your statement was raised with you by Ms Wolsey
during the adjournment and you failed to correct your false statement upon
resumption of the hearing, or at all. You assert that you assumed that it would
have been clear to those present at the hearing that it was not you that conducted
the inspection on race day because of the earlier exchange referred to above. In
my view, that submission is unsustainable on any fair reading of the hearing
transcript. For example, if the true facts were that clear to those present,
Ms Wolsey would have had no reason to raise the issue with you during the
adjournment. I am reasonably satisfied that your statements were made
dishonestly in that you knew they were false and failed to correct them.
I am also reasonably satisfied that you engaged in the impugned conduct in the
course of or in connection with the performance of your duties and
responsibilities.
As such, I am reasonably satisfied that you are guilty of serious misconduct
within the meaning of clause 9.4(a)(vi) of your contract of employment by
engaging in an act of dishonesty in the course of or in connection with the
performance of your duties and responsibilities.
You deny that you have engaged in an act and/or omission that could negatively
affect the reputation or good standing of the QRIC because you merely misused
a word or two during an enquiry and clarified the matter to accurately reflect the
true state of the facts at another part of the Hearing. Your submission is that this
could not objectively negatively affect the reputation or good standing of the
QRIC.
I consider your submission to be misconceived because the 'clarification'
statement that you rely upon was made before the impugned statement. As such,
the last fact that was asserted to Mr Scott by you was that you personally inspected
the swab stall on the race day and found it to be appropriate. As noted above, that
statement effectively shut down Mr Scott's line of enquiry.
As a steward, you effectively stand in judgement over those who the QRIC
regulates, as a delegate of the Commissioner. For the reasons already given, I am
reasonably satisfied that you dishonestly made false statements in the course of
chairing a stewards' inquiry. If that were to become publicly known, which it has
at least to Mr Scott, I am also reasonably satisfied that your conduct could
negatively affect the reputation or good standing of the QRIC. Whether the issue
of swab stall inspections was material to the ultimate issues requiring
determination before the enquiry is, in my view, irrelevant.
As such, I am reasonably satisfied that you are guilty of serious misconduct
within the meaning of clause 9.4(a)(vii) of your contract of employment by
engaging in an act and/or omission that could negatively affect the reputation
or good standing of the QRIC.
-- 10 of 28 --
11
Apart from denying the allegation, you have not directly made submissions as to
why I should not be satisfied that you have engaged in an act or omission that
could preclude or inhibit you from performing the duties of your position. You
do however point to what you assert is your 'long and honest career in the harness
industry'.
A racing steward's position is one that requires utmost and unquestionable
integrity. You are the Chairman of Stewards. Your conduct must therefore be
entirely beyond reproach. You must be able to be trusted by me as Commissioner,
the racing industry that appears before you as a steward and your staff. If that is
not the case, you cannot effectively perform the duties of your position.
In addition, while you were entitled to make whatever submissions you wished to
in response to my show cause notice, the submissions you have made are such
that it is clear that you have no insight into the dishonesty in which you have
engaged or its relevance to the discharge of your duties.
As such, I am reasonably satisfied you are guilty of serious misconduct within
the meaning of clause 9.4(a)(vii) of your contract of employment by engaging
in an act or omission that could preclude or inhibit you from performing the
duties of your position."
[9] After recording the above findings, Mr Barnett then informed Mr Farquharson that he
was "reasonably satisfied that you have been found guilty of serious misconduct within
the meaning of clause 9.4(a)(vi) and/or (vii) of your contract of employment" by
engaging in the conduct described at paragraph [4] above on the grounds set out in that
same paragraph.
[10] Having recorded the above findings Mr Barnett informed Mr Farquharson that he was
"currently giving serious consideration to terminating your employment without
payment of notice" and called upon the latter to respond, by 14 February 2017, as to
why the proposed disciplinary action should not be taken. (emphasis as per original
letter)
[11] In his response to the above correspondence Mr Farquharson stated:
Mr Barnett's letter seemed to support the assertion of a Detective Sergeant
during the CCC interview that he (Farquharson) told Mr Scott that he had
inspected the swab stall "on the day" to cut out that part of the discussion
and move on with the Inquiry;
in response to that suggestion, he had told the CCC officer that he was
clearly not in attendance on the race day and had nothing to gain by saying
he was present;
he had inspected the swab stall, track crossing, wash bays and other related
checks as a visual only prior to his annual leave (approximately two weeks
before the race meeting). "I have evidence to prove this fact.";
Mr Scott's line of questioning related to the overall validity for the swab
room to be used as such on race day. "At no stage did I infer that I was
aware of any repairs carried out by builders or stewards to be met for the
race meeting (P20 of Scott Inquiry transcript).";
-- 11 of 28 --
12
"In fact Kwan Wolsey chaired this race meeting and it was her obligation,
particularly as a Deputy Chief Steward, to step up and make any comment
relating to race day checks and standards on that race day, rather than just
sit there, say nothing when what I said may have been misleading, only to
make comment during an adjournment when I was of the view I had made
clarification that I did not carry out the race day inspection (P19 of Scott
Inquiry transcript). On the balance of probabilities, it is clear that this error
was unintentional and in no way a deprivation of natural justice to
Mr Scott.";
"I vehemently deny that I wilfully made a false statement or was dishonest
regarding the inspection of the swab stall. Your inference that Ms Wolsey
would have had no reason to raise the issue during the adjournment as being
the test is not sustainable. It is quite possible Ms Wolsey did not pay proper
attention to the statement I made on page 19 - line 21 that I did not inspect
the swab stall but someone would have. As mentioned, this was her
opportunity and obligation to set the facts straight to an alleged
misconception. I am acutely aware every word stated at a Steward's inquiry
is transcribed and is subject to intense scrutiny by experienced lawyers
representing appellants at further hearings. I am also fully aware that the
Steward's report relating to a race meeting will publish the names of the
officiating stewards of which I was not one on 13 September 2015. It is
therefore inconceivable that with over 30 years' experience in the racing
industry, chairing thousands of Stewards' inquiries, that you form the belief
that somehow I deliberately mislead the Inquiry knowing the statement to
be false when these tests are applied. On the balance of probabilities, the
benefit would clearly reside in my favour.";
"You state that my response in denying that I have engaged in serious
misconduct demonstrates no insight into the dishonesty. With respect, you
have completely misunderstood and/or misrepresented my response. … I
was not deliberately dishonest therefore I have no reason to develop any
insight into the word/s used by me during the Stewards' Inquiry."; and
"I disagree with your finding that I used the word 'on' instead of 'for' to shut
the line of inquiry down. The Inquiry was conducted over 3 days. Mr Scott
was given every opportunity to raise any matter he considered relevant.
Further, the Stewards' panel considered all of the evidence adduced by
Mr Scott (and others) in determining the outcome of the matter. There is
no basis for you to make this finding in the circumstances.".
[12] By way of letter dated 24 February 2017, Mr Barnett summarily dismissed
Mr Farquharson from that same date on the basis he was reasonably satisfied that
disciplinary action ought to be taken against him and, pursuant to clause 9.4 of his
Contract of Employment, his employment ought to be terminated without payment of
notice.
Evidence
[13] Mr Farquharson said he commenced employment with Queensland Harness Racing
Board in October 2007 as a Senior Stipendiary Steward, becoming the Chairman of
Stewards in March 2012. On 1 July 2016 he became an employee of Queensland Racing
Integrity Commission upon the creation of that organisation.
-- 12 of 28 --
13
[14] At the time of the third day of the Scott Inquiry, 5 July 2016, he was responsible for a
number of positive swab inquiries - which he estimated to be around 23 in number - and
the organisation was relocating from Deagon and undergoing many transitional
changes. He did not realise it at the time but these factors placed him under additional
pressures to those he would ordinarily have experienced in the normal course of his
duties.
[15] In terms of Ms Wolsey's comments to him during the adjournment on 5 July 2016, he
understood them to be more inquisitive rather than challenging him about what he had
said. He did not place any real weight on what Ms Wolsey said as he believed that what
he said at page 19 of the transcript of the Inquiry made it sufficiently clear that he was
not in attendance at the race meeting in question. In Mr Farquharson's view, if
Ms Wolsey held some concern that he had misled the Inquiry then, as the Deputy
Chairman of Stewards, she could have placed on record during the Inquiry any concerns
that she may have held or corrected any inadvertent mistakes.
[16] Under cross-examination Mr Farquharson acknowledged that the role of Chief Steward
was one which required unquestioned integrity and that anyone performing that role had
to be trusted by the Racing Integrity Commissioner, industry participants and the
person's staff. If the person was not trusted by all of those people they could not
effectively perform the role of Chief Steward.
[17] In the course of re-examination Mr Farquharson said that the connections of any
racehorse witnessed the sterilization of the pan used to collect urine and the use of a
control solution which is swirled around the pan and then tipped back into the control
bottle. The control solution, in the control bottle, is also used to rinse out the bottles
used to collect the A and the B samples to make sure there is no contamination in the
urine that is split into the two samples. In response to a question from the Bench,
Mr Farquharson said Mr Scott witnessed the collection of urine from his horse and
signed the relevant paperwork to signify he had observed the process and was satisfied
with the way the sample was collected.
[18] Finally, Mr Farquharson said that given the specialised nature of his employment as a
Chief Stipendiary Steward he had been unable to obtain permanent employment in a
similar, or substantially similar, role to the one he held prior to his dismissal by QRIC.
At the time of the hearing he was employed in a temporary position as a Steward with
the Tasmanian Office of Racing Integrity - a position he had obtained in early May
2017.
[19] Mr Barnett said the reasons for his decision to terminate Mr Farquharson were embodied
in his letters dated 6 and 24 February 2017 and that the decision to terminate was taken
"following a comprehensive show cause process and my careful consideration of all the
relevant evidence and submissions before me."
[20] On 24 February 2017 he informed Mr Farquharson that he had come to a decision to
terminate his contract but, as a courtesy, offered Mr Farquharson the opportunity to
resign before he instigated the termination. After Mr Farquharson "insisted on being
terminated" he was formally advised of his termination and handed a letter to that effect.
[21] Mr Barnett said that after Mr Farquharson was dismissed he became aware of an article
published in "The Sunday Mail" on or about 4 March 2017. In the article
-- 13 of 28 --
14
Mr Farquharson is attributed to have said "This is a farce. I would do the same thing
tomorrow."
[22] Mr Barnett also said that if the Queensland Industrial Relations Commission (QIRC)
was minded to find that Mr Farquharson's dismissal was unfair (which was denied) he
considered that reinstatement or re-employment with QRIC was impracticable for the
following reasons:
"(a) The proven serious misconduct engaged in by the Applicant is completely
contrary to the stated aims, objectives and legislative responsibilities of the
QRIC as set out in the RI Act;
(b) That misconduct was discovered after a complaint from the industry
participant who was impacted by it and the nature and seriousness of the
misconduct, now known, would severely damage the reputation of the
QRIC in the racing industry if the Applicant were reinstated;
(c) The direct quotes attributed to the Applicant in the newspaper article
demonstrate a complete lack of understanding as to the abrogation of his
professional responsibilities inherent in his misconduct, a failure to
recognize the impact of his actions on Mr Neale Scott, and a complete lack
of insight that his misconduct was in fact wrong (and he would do the same
thing again);
(d) The same comments also demonstrated a lack of respect for me personally
and the term 'farce' reflect a contempt for me that makes any future working
relationship with the Applicant untenable;
(e) Reinstatement of the Applicant after serious misconduct has been proved
would completely undermine the efforts by the Commission to build a
relationship of trust and confidence with the broad racing industry based on
a public commitment to transparency and enforcing high standards of
integrity for QRIC officials, particularly those who exercise authority over
racing participants".
[23] Under cross-examination Mr Barnett indicated that he had only read the transcript of the
third day of the Scott Inquiry, although he was aware it had run over three days. When
it was suggested to him that if he had read the full transcript to appreciate, for example,
how Mr Farquharson treated Mr Scott through the Inquiry, Mr Barnett responded by
saying "I was concerned with the matters of the 5th (July), specifically the questions and
answers of relevance about the inspection of the swab. I was aware that it was [a]
continuing - an adjourned hearing."
[24] When further questioned about the latitude Mr Farquharson had given to Mr Scott as to
the areas of inquiry that he embarked upon, Mr Barnett indicated that he was "not in a
position to disagree with that". Pressed further about whether Mr Farquharson had
given Mr Scott an opportunity to pursue lines of enquiry that might be relevant to his
case and that such matters would be indicative that Mr Farquharson had behaved in an
entirely professional way, Mr Barnett responded by saying "Yes, there's nothing that I
am aware of that would indicate that Mr Scott had his avenues of inquiry in any way
curtailed."
[25] When asked to explain the contradiction between the answer given immediately above
and the allegation in the second show cause letter to the effect Mr Farquharson had been
untruthful to Mr Scott to cut a particular line of enquiry off, Mr Barnett (ultimately)
-- 14 of 28 --
15
said "I had read Mr Farquharson's interview with the CCC investigators, and in the
course of that he made some comments in relation to his frustration with those matters".
[26] After several questions about the length of the Stewards' Inquiry, the challenging
approach taken by Mr Scott and the fact that Mr Farquharson told the CCC investigators
he had a throbbing headache at the time, the following exchange occurred between
Mr Ryan, Counsel for Mr Farquharson, and Mr Barnett (transcript 1-29):
"So was that something that you had regard to at all, or was that something that
you disregarded as far as your consideration? --- I noted the history of the matter,
but I also noted that Mr Scott was entitled to raise the matter that he raised and
entitled to get a truthful answer when he did.
But did you consider that there were other possibilities in this case - accepting that,
literally, the answers given by Mr Farquharson on page 20 weren't accurate, did
you consider at all seriously the possibility that Mr Farquharson had simply
misspoke and was confused or got it wrong when he said those things? --- No.
Not at all? --- Not at all."
[27] When asked again (at transcript 1-31) whether he ignored the possibility
Mr Farquharson had simply misspoken, Mr Barnett said:
" --- Not at all. I took the view that actually Mr Farquharson was in charge of the
proceedings. It was up to him whether he answered the question - the inquiry put
to him by Mr Scott, and he would do so having taken sufficient time to gather his
thoughts and to provide a truthful answer. That's the approach I took. And having
read the transcript and having seen that he made one followed by another followed
by another definitive statements that were intended to convey a state of affairs -
was completely wrong - that's - that's the view I took.
Well - and that, perhaps, seems to be at the nub of your decision-making, that you
came to the conclusion that he intended to make those ---? --- And then ---
--- statements? --- Sorry. And then shortly after an adjournment, having been
alerted to the error of his statements, he did not take any action thereafter to
immediately correct the record."
[28] Later, when it was put to him that the Stewards' Inquiry concerned a swab sample which
contained a cobalt level over the prescribed limit, with the control sample not showing
any contamination, thereby making the matters Mr Scott was raising an irrelevancy,
Mr Barnett responded by saying (transcript 1-32) "No, it's not irrelevant. It's not
irrelevant, and he was entitled to raise it and - and, in my view entitled to get a truthful
response when he did raise it".
[29] Four paragraphs later the following exchange occurred between Mr Ryan and
Mr Barnett:
"What I was suggesting to you before was that Mr Scott's line of inquiry was
really an irrelevancy. It was inconsequential? --- Well, let me put it this way.
-- 15 of 28 --
16
Whether the condition of the stall subsequently had any impact on the - upon the
- on the result is one issue, but he was entitled to raise it as a valid concern.
Well, yes, but the point about it is, if you had a concern about the misleading
statements that were made, surely, in assessing the gravity of the misleading
statements, whether they related to something at the very heart of the issue or
whether they related to something that was irrelevant has to be important in
assessing what disciplinary action you take, doesn't it? --- Well, perhaps, can I put
[it] this way? Mr Scott raised an issue, and it was shut down with two successive
statements that were lies. Well, they were incorrect, sorry, not correct. They were
- they were incorrect statements of the fact. That stopped him pursuing it any
further. If he had wanted to - if he had been told no one actually inspected it on
the day, that might have opened up other lines of inquiry for him, but he accepted
the assertion that it had been inspected by Mr Farquharson on race day and moved
on to other issues.
But he was perfectly entitled. He could have raised any matter he liked. Is - and
that's the history of this inquiry. He was given full rein to raise whatever he liked?
--- And he did and - but in response to his valid line of inquiry, he was given
incorrect information which effectively shut down that line of inquiry.
But you'd agree it had nothing at all to do with the outcome as to whether or not
he was guilty of the offence charged? --- Well, that remains an unanswered
question, I believe, because the state of the facility on that day has never actually
been established, and it has never been established whether it was inspected, by
whom and to what standard.
Well, the point about it is this, plainly, the real objective test in all of this as to
whether there was - the issue's whether there was any contamination, isn't it? ---
No, I - no, I - I disagree. I believe that in the course of the hearing, the applicant's
entitled to raise issues and have them dealt with truthfully and fairly, and I - and
that didn't happen on this occasion."
[30] When questioned about whether he had taken Mr Farquharson's 30 years of unblemished
history into account, Mr Barnett said:
(at transcript 1-33) "I hadn't investigated that. I wasn't aware of any - well,
I hadn't investigated it so - so the answer is no, I'm not aware of any";
(at transcript 1-33) "I take account of all of the facts in coming to this
decision, but I do not ignore the definitive, clear and unambiguous
statements that were made on the day and the failure to correct them. That
was the key issue for me."; and
(at transcript 1-35) "… in my police career, I was seeing police with long
and outstanding careers making critical mistakes late in their career that are
unsurvivable. It happens."
[31] Notwithstanding his evidence (above) to the effect that he had considered
Mr Farquharson's failure to correct the record, after Ms Wolsey questioned him during
an adjournment, in reaching his decision to terminate Mr Farquharson, Mr Barnett
-- 16 of 28 --
17
somewhat withdrew from that position in the course of the following exchange with
Mr Ryan (transcript 1-39, line 13):
"But assuming that there was a failure to correct something that was left inaccurate
on the record, that, I'm suggesting, might attract perhaps some disciplinary
response, but it could only be that the response of dismissing him could only be if
you formed a view completely that it was deliberate, and that seems, am I right in
saying, to have been at the heart of your decision-making? --- Yes, I believed - I
believed that his statements, repeated statements, were clear, unambiguous and
designed to create a completely false impression."
[32] Finally, Mr Barnett was questioned about "The Sunday Mail" extract, referred to in
paragraph [21] above. In the course of commenting on the article, Mr Barnett insisted
that the words attributed to Mr Farquharson meant that the latter was stating that he
would, in effect, lie again tomorrow.
Submissions
[33] Each of Mr Ryan and Mr Farren, Counsel for QRIC, presented relatively tight and
focused submissions in support of their respective client's cases. As such, rather than
attempt to summarise them, I have chosen to record the salient aspects of their
respective submissions below.
[34] Mr Ryan submitted:
because the dismissal was on the grounds of alleged serious misconduct, the
onus of proving that ground shifts to the respondent employer;1
given the seriousness of the allegations, the standard of proof is at the higher
end of the sliding scale under the Briginshaw2 test;
this means that much stronger evidence than mere suspicion or an
impression is required to establish that particular statements, such as the
ones on page 20 of the Inquiry transcript, asserted to be false and
deliberately made, can be concluded to a reasonable satisfaction;
in order to do so the party alleging the statements were made falsely must
exclude all reasonable possibilities consistent with innocence, such as
misstatement or error of recollection or confusion;
applying the proper onus of proof and standard of proof on the objective
evidence, the dismissal of Mr Farquharson was:
o unjust - because he was not guilty of misconduct, as alleged against
him;
o unreasonable - because the material before the employer did not
support a conclusion of "misconduct"; and
o harsh - because the dismissal was disproportionate to the conduct that
could be established against him, i.e., he had misstated a position that
went uncorrected;
the allegation in the second show cause letter of 6 February 2017 that
Mr Farquharson made the statements, at page 20 of the Inquiry transcript,
deliberately to shut down Mr Scott's line of inquiry is not supported by
1 Lamb v Redland City Council [2014] QIRC 041 at [4].
2 Briginshaw v Briginshaw [1938] 60 CLR 337 at 362.
-- 17 of 28 --
18
Mr Farquharson's handling of Mr Scott during the Inquiry as a whole. The
transcript across the three days of the Stewards' Inquiry reveals that
Mr Scott was given more than reasonable latitude. He was given every
possible and imaginable opportunity to explore arguments, which were at
times fanciful, to explain the presence of the high cobalt reading in the swab
samples;
the transcript demonstrates that Mr Farquharson treated Mr Scott with
courtesy and respect, which is inconsistent with a motive to conduct the
proceedings in a dishonest way - which is the allegation Mr Barnett fastened
on to;
if Mr Farquharson was trying to shut Mr Scott down he could simply have
referred to the absence of any contamination in the control sample and told
Mr Scott there was nothing in his point and to "move on";
there was no basis for Mr Barnett to decide there was no other conclusion
to be drawn other than that Mr Farquharson was being deliberately
untruthful to Mr Scott;
given his statements at page 19 of the Inquiry transcript there is, at the very
least, an inference to be drawn that Mr Farquharson misspoke and, applying
the standard of proof required, such inference cannot be excluded;
Mr Farquharson did not dispute the fact that Ms Wolsey had a conversation
with him during an adjournment but, importantly, he did not challenge her
or assert to her that she was wrong - which is what one would expect if he
was attempting to be deliberately dishonest;
given the nature of the Hearing, and the way Ms Wolsey raised the matter
with him, it is hardly surprising that the nature of his error did not fully
register with him at the time. Relevantly, neither Ms Wolsey nor Mr Torpey
thought the issue to be important enough to raise the matter, or correct the
record, when the Inquiry resumed; and
Mr Barnett made his determination on a literal interpretation of the passage
on page 20 of the Inquiry transcript without regard to the context in which
it was made. He failed to consider the possibility that Mr Farquharson
simply expressed himself wrongly. He made an assumption that it was a
deliberate untruth and it was serious misconduct in a way which ought to
result in Mr Farquharson's dismissal.
[35] Mr Farren submitted:
Mr Farquharson was dismissed because Mr Barnett was satisfied he was guilty of
serious misconduct within the meaning of clauses 9.4(a)(vi) and (vii) of his
Contract of Employment by providing untruthful answers to questions raised by
Mr Scott about whether the swab stall had been inspected and deemed to be fit
and proper for the purposes of taking swabs;
the untruthful answers to Mr Scott's questions had been given not only because
the Inquiry had been long, drawn out and difficult - with Mr Scott chasing every
rabbit down every burrow - but also because Mr Scott had made a fool of the
entire panel by revealing that the swab stall was used for the first time on the day
his horse had been swabbed;
it was immediately after Mr Scott caught the panel out that what Mr Barnett found
to be repeated false statements were made by Mr Farquharson;
-- 18 of 28 --
19
the inference was drawn that Mr Farquharson did this to shut Mr Scott's line of
questioning down, with any reasonable reading of the transcript showing that is
exactly what happened;
the respondent accepted it had the burden of establishing that Mr Farquharson had
engaged in serious misconduct, but it was still necessary for the applicant to
establish that his dismissal was unfair within the meaning of the legislation;
whether a dismissal is harsh, unjust or unreasonable is a mixed question of law
and fact to be determined by the QIRC;
in this case, the applicant's dismissal could not be said to be unfair because
Mr Farquharson accepts that his (former) position of Chief Steward is one which
requires utmost and unquestionable integrity - a point reflected in clause 9.4 of
his Contract of Employment;
while a single act of dishonesty will not automatically render a dismissal fair, just
and reasonable3 the fact is that Mr Farquharson's contract did not require any
misconduct on his part to be repeated before his employment could be terminated;
" … the preponderance of credible evidence is that the applicant did, in fact,
engage in serious misconduct as defined in clauses 9.4(a)(vi) and (vii) of his
contract and as found by the respondent. The applicant's dishonesty in the course
of conducting the Scott Hearing was deliberate and was left uncorrected by the
applicant despite being challenged by another member of the Hearing panel. The
applicant, in the show cause process, and, again, before the QIRC, has attempted
to place a gloss upon his serious misconduct by seeking to characterize it as a
mere slip. In my submission, your Honour, the evidence simply does not support
that contention";
"the applicant's serious misconduct and lack of insight, remorse and contrition led
the respondent, through the Commissioner, to correctly determine that the
necessary trust and confidence in the applicant had been destroyed and that, in
accordance with his contract, his employment ought to be terminated";
Stewards' Inquiry panel members are effectively the investigators, the prosecutors
- which Mr Farquharson plainly considered himself to be and primarily saw
himself to be - then, supposedly, the fair hearers and determiners of the charges
which they themselves prefer. "It was clearly the Commissioner's view - and, in
my submission, an entirely appropriate view - that when members come before
these hearings they are not only entitled to a fair hearing, but they are also entitled
to scrupulous honesty and honest dealings from the tribunal members they appear
before";
" … the name of the respondent is the Queensland Racing Integrity Commission
… if the Chief Steward does not behave with utmost honesty and integrity in the
course of a hearing then the entire purpose of the Commission's existence … is
defeated";
" … reinstatement and re-employment are impracticable because the applicant's
conduct both before and since his dismissal has destroyed the relationship of trust
and confidence between the applicant and the respondent for the sound and
rational reasons given by Mr Barnett in his evidence. … When an employer makes
the claim that reinstatement or re-employment are impracticable because of the
loss of trust and confidence, your Honour must examine those claims carefully
…". On Mr Barnett's evidence, it is inescapable that the relationship between he,
as Commissioner, and Mr Farquharson, as a potentially reinstated Chief Steward,
3 APS Group (Placements) Pty Ltd v O'Loughlin [2011] FWAFB 5230, [56].
-- 19 of 28 --
20
is irrevocably broken and, therefore, reinstatement or re-employment is
impracticable; and
since being terminated the applicant chose to draw public attention to his
dismissal and to publicly criticise Mr Barnett's decision in what could only be
described as pejorative and insulting terms. "Referring to his decision as a farce,
in particular, … has further demonstrated that he holds Mr Barnett in contempt
and there can be no relationship of trust and confidence" between them again.
Conclusion
Did Mr Farquharson engage in serious misconduct as it is defined in clause 9.4(a)(vi)
and (vii) of his contract?
[36] As noted above, the respondent accepts that it has the burden of proving, on the
Briginshaw standard, that Mr Farquharson engaged in serious misconduct. Put simply,
it has failed to do so. I set out below my reasons for coming to that conclusion by
dealing with each of the three elements of his Contract of Employment he was found to
have breached.
Did Mr Farquharson engage in an act of dishonesty?
[37] In the course of the CCC interview and again in his responses to Mr Barnett's show
cause letters, Mr Farquharson asserted numerous times that he had simply misspoken
by using the word "on" when he should have said "for". However, Mr Barnett decided
not to seriously consider Mr Farquharson's explanation choosing, instead, to come to
the conclusion that Mr Farquharson's statements to Mr Scott were repeated and "… were
clear, unambiguous and designed to create a false impression". Indeed, when asked by
Mr Ryan whether he had considered the possibility that Mr Farquharson had simply
misspoken, was confused or got it wrong, Mr Barnett emphatically responded "No …
Not at all." (see the full exchange at paragraphs [26] and [27] above).
[38] Although Mr Barnett also claimed to have taken into account - in reaching his
conclusion that Mr Farquharson had deliberately misled Mr Scott - the fact that
Mr Farquharson failed to correct his error after Ms Wolsey spoke to him during the
adjournment, I am far from convinced that this was the case (see Mr Barnett's evidence
at paragraph [31] above). In any event, what is readily apparent is that Mr Barnett twice
chose to ignore, or otherwise disregard, Mr Farquharson's comments and responses
concerning the discussion between Ms Wolsey and himself.
[39] Firstly, in the course of his CCC interview [lines 1340-1355] on 14 November 2016,
Mr Farquharson was asked about the exchange between Ms Wolsey and himself during
the adjournment of the Scott Inquiry on 5 July 2016. In the course of his interview he
is recorded as having said "… Kwan Wolsey … said 'you weren't there on race day' and
I said 'yeah I know'. She said 'well you said you were (there) on race day'. … I said 'Oh
no I meant for, I inspected it for race day'. … "She's (said) 'Oh'. And I didn't really pick
up … the relevance of that other than she did say that 'Oh you know, you said you were
there and you weren't there'. I said 'Oh ah okay'. It came across (that) way, yep".
[40] Secondly, Mr Farquharson clearly articulated his version of the full conversation with
Ms Wolsey in his undated response to Mr Barnett's first show cause letter. In doing so
he acknowledged that Ms Wolsey spoke to him and said words to the effect "you weren't
-- 20 of 28 --
21
there on race day" with his response being "yeah I know … I meant I inspected it for
race day". Notwithstanding Mr Farquharson's response, Mr Barnett failed to mention
it when he asserted in his second show cause letter, of 6 February 2017, that
Mr Farquharson had "admitted" the allegations against him - including allegation 9 (see
paragraph 4 above).
[41] Importantly, Mr Farquharson was not challenged in cross-examination about the
accuracy of his response to Ms Wolsey's comments during the adjournment, as given to
the CCC investigators and to Mr Barnett. As such, and noting that Ms Wolsey was not
called to give evidence to contradict Mr Farquharson, I conclude that he did tell
Ms Wolsey, on 5 July 2016, that while he did say "on" he meant to say "for".
Relevantly, neither Ms Wolsey nor Mr Torpey suggested to Mr Farquharson that he
should correct the error.
[42] Should the record have been corrected? Undoubtedly, in an ideal world, it should have
been. Did Mr Farquharson mislead Mr Scott by not correcting the record? Possibly he
did. Did Mr Farquharson deliberately mislead Mr Scott? No. He made a mistake and
neither he, nor Ms Wolsey or Mr Torpey thought his error to be sufficiently important,
in the context of the Inquiry at that time, that it needed to be corrected. I highlight "at
that time" because the adjournment in question was taken (at page 34 of the Inquiry
transcript), after all the evidence was given and submissions received, for the purpose
of allowing the three members of the Stewards' Inquiry to consider whether the charge
laid against Mr Scott had been sustained. Viewed in context, their respective minds had
moved beyond the fact that Mr Farquharson had said "on" when he actually meant to
say "for" to other matters of much more significance. In this respect, the issue of
whether the swab stall was constructed the day before the race meeting or the year
before had little or no relevance to the swab readings. Both the A and B samples had
high cobalt readings while the control sample had none. This showed there was no
contamination present, making the state of the swab stall an irrelevancy. Not
surprisingly, in those circumstances, no-one thought about correcting the record.
[43] In light of my finding that Mr Farquharson did not deliberately mislead Mr Scott, and
that his failure to correct the record was both innocent and understandable, it follows
that he did not commit an act of dishonesty or fraud within the meaning of clause
9.4(a)(vi) of his Contract of Employment.
Did Mr Farquharson commit an act or omission that could negatively affect the
reputation or good standing of QRIC?
[44] Mr Barnett's finding that Mr Farquharson engaged in an act or omission that could
negatively affect the reputation or good standing of QRIC was predicated on his finding
that the latter had "dishonestly made false statements in the course of chairing a
Stewards' Inquiry". However, in light of my finding that Mr Farquharson did not act
dishonestly, Mr Barnett's conclusion cannot stand. Nonetheless, because
Mr Farquharson did not correct the record after his mistaken use of the word "on" was
brought to his attention by Ms Wolsey, I shall consider whether such failure could
negatively affect the reputation or good standing of the QRIC.
[45] While it would have been preferable for Mr Farquharson to have corrected the record,
I do not believe that his failure to do so, in the circumstances of this case, could
negatively affect the reputation and good standing of QRIC to the degree necessary to
-- 21 of 28 --
22
support a finding of serious misconduct. While he did create a false impression to
Mr Scott, that was because he made a mistake. He also made a mistake by not
correcting the record but, as I have explained above, the circumstances and reasons for
that are both explainable and understandable.
[46] Indeed all factors properly considered, Mr Farquharson's failure to correct the record
could not even be categorized as misconduct. This is because "misconduct" generally
involves something more than an error of judgement, an innocent mistake or plain
negligence. The term usually implies an act wilfully undertaken with wrong intentions.
None of those latter circumstances existed here.
[47] Mr Farquharson's failure to correct the record is probably best described as an error of
judgement, rather than negligence, but however his failure might be described, it would
strain the English language to say that his failure, in the circumstances of this case
viewed as a whole, could negatively impact the reputation or good standing of QRIC.
Did Mr Farquharson commit an act or omission that could preclude or inhibit him from
performing the duties of Chief Stipendiary Steward -Harness?
[48] Mr Barnett's findings and comments in connection with this allegation were, again,
underpinned by his earlier finding that Mr Farquharson had been deliberately dishonest
in his statements to Mr Scott. I have found this not to be the case. Nonetheless, it is
necessary to consider whether Mr Farquharson's actions and behaviour on 5 July 2016
were such that they could preclude or inhibit him from performing the duties of the
position of Chief Stipendiary Steward - Harness.
[49] In my considered view, any reasonably open-minded industry participant who was
appraised of Mr Farquharson's mistakes, and the circumstances under which those
mistakes occurred, would, if also informed of his previous 30 years of unblemished
history, forgive him his error and continue to accept him as being able to perform the
role of Chief Stipendiary Steward with integrity, total honesty, and professionalism.
This is because his actions on 5 July 2016 were not pre-determined or deliberate. He
simply made a mistake. His actions on the day in question, properly explained, would
not, now, preclude or inhibit him from performing the duties of the position.
Was Mr Farquharson's dismissal "unfair" within the meaning of s 73 of the Act?
[50] As a result of my finding (above) that Mr Farquharson did not engage in serious
misconduct, or even misconduct, it is necessary to consider whether his termination, in
all of the circumstances, was harsh, unjust or unreasonable. After careful consideration
I have concluded that it was.
[51] In this respect, s 77 of the Act relevantly provides:
77 Matters to be considered in deciding an application
In deciding whether a dismissal was harsh, unjust or unreasonable, the
commission must consider -
(a) whether the employee was notified of the reason for dismissal; and
-- 22 of 28 --
23
(b) whether the dismissal related to -
(i) the operational requirements of the employer's undertaking,
establishment or service; or
(ii) the employee's conduct, capacity or performance; and
(c) if the dismissal relates to the employee's conduct, capacity or
performance -
(i) whether the employee had been warned about the conduct,
capacity or performance; or
(ii) whether the employee was given an opportunity to respond to
the allegation about the conduct, capacity or performance; and
(d) any other matters the commission considers relevant.
[52] It is clear from the facts recorded above that:
Mr Farquharson was notified of the reasons for his dismissal (s. 77(a));
his dismissal related to his (alleged) conduct, capacity or performance
(s. 77(b)(ii)); and
he was given an opportunity to respond to the allegation about his conduct,
capacity or performance (s 77(c)(ii)).
[53] In terms of s 77(d), Sheppard and Heerey JJ, in Bostik (Australia) Pty Ltd v Gorgevski
(No. 1),4 said of the phrase "harsh, unjust, unreasonable":
"These are ordinary non-technical words which are intended to apply to an infinite
variety of situations where employment is terminated. We do not think any
redefinition or paraphrase of the expression is desirable. We agree with the
learned trial judge's view that a court must decide whether the decision of the
employer to dismiss was, viewed objectively, harsh, unjust or unreasonable.
Relevant to this are the circumstances which led to the decision to dismiss and
also the effect of that decision on the employer. Any harsh effect on the individual
employee is clearly relevant but of course not conclusive. Other matters have to
be considered such as the gravity of the employee's misconduct."
[54] While I have found that Mr Farquharson made a mistake, and compounded that mistake
by not correcting the record, Mr Barnett viewed Mr Farquharson's actions as being
deliberately dishonest and taken to close down a particular line of inquiry which
Mr Scott was pursuing. In doing so, Mr Barnett chose not to consider any other reasons
for Mr Farquharson's actions other than that they were deliberate "and designed to create
a false impression". In that respect, I agree with Mr Ryan's submission that Mr Barnett
saw things in a very black and white way - making no allowance for any other
possibilities other than untruthfulness on the part of Mr Farquharson.
[55] In reaching his decision that Mr Farquharson's actions were deliberate, and that his
employment should be terminated for serious misconduct, Mr Barnett:
4 Bostik (Australia) Pty Ltd v Gorgevski (No. 1) (1992) 36 FCR 20 at 28.
-- 23 of 28 --
24
failed to consider any other possible explanation for Mr Farquharson's
actions other than that they were deliberate and designed to mislead
Mr Scott;
failed to give Mr Farquharson any benefit of the doubt;
failed to look at how Mr Farquharson had treated Mr Scott during the
previous two days of the Stewards' Inquiry and to consider whether the
events recorded at page 20 of the transcript were an aberration or otherwise
explainable;
failed to consider Mr Farquharson's previous 30 year unblemished record -
saying he did not look at this history; and
failed to consider the impact the decision would have on Mr Farquharson's
career and future livelihood.
[56] Further, while I do agree with Mr Barnett's view that the overall importance of the
matter being pursued by Mr Scott would not have been relevant had Mr Farquharson
deliberately misled Mr Scott, I do not agree that the relative lack of importance of the
matter is not something to be taken into account in deciding Mr Farquharson's fate
where his actions were not deliberate. In this respect, as I noted above (see paragraph
[42]), the state of the swab stall had little or no relevance to the swab result. It was, to
borrow from Mr Ryan's questions to Mr Barnett, inconsequential and should have been
considered as such by Mr Barnett.
[57] In the end result, because of my findings, the question to be asked (and answered) is
whether Mr Barnett's decision to terminate Mr Farquharson's employment, in all of the
circumstances, because he made a mistake and then failed to correct it, was harsh, unjust
or unreasonable.
[58] In deciding that it was, I have not only taken into consideration the matters recorded in
paragraphs [54] to [56] above, but have also taken into account the following matters:
Mr Farquharson's use of the word "on" instead of "for" was a mistake, and
not deliberate;
Mr Farquharson did not realise the significance of his mistake at the time it
was made, nor after Ms Wolsey spoke to him in the adjournment;
in light of the fact that Ms Wolsey did not press the point, and given the
stage at which the Stewards' Inquiry was at, Mr Farquharson did not think
any more about the fact that he might have needed to correct the record;
Mr Farquharson's failure to correct the record constituted an error of
judgement or, at the very worst, negligence;
irrespective of whether his failure constituted an error of judgement or
negligence, the appropriate action for Mr Barnett to have considered taking
- given Mr Farquharson's previous unblemished work history - would have
been either a reprimand or a warning.
Remedy
[59] Section 78 of the Act provides:
-- 24 of 28 --
25
78 Remedies - reinstatement or re-employment
(1) This section applies if the commission is satisfied an employee was
unfairly dismissed;
(2) The commission may order the employer to reinstate the employee to
the employee's former position on conditions at least as favourable as
the conditions on which the employee was employed immediately
before the dismissal;
(3) If the commission considers reinstatement would be impracticable,
the commission may order the employer to re-employ the employee
in another position that the employer has available and that the
commission considers suitable.
(4) The commission may also -
(a) make an order it considers necessary to maintain the continuity
of the employee's employment or service; and
(b) order the employee to repay any amount paid to the employee
by, or for, the employer on the dismissal; and
(c) order the employer to pay the employee the remuneration lost,
or likely to have been lost, by the employee because of the
dismissal, after taking into account any employment benefits or
wages received by the employee since the dismissal.
(5) This section does not limit the commission's power to make an interim
or interlocutory order.
[60] As is readily apparent, the primary remedy under the Act if the QIRC decides that an
employee was unfairly dismissed is reinstatement. Given this, I turn now to consider
whether Mr Farquharson's reinstatement is impracticable.
[61] In Perkins v Grace Worldwide (Aust) Pty Ltd5 the Full Court of the Industrial Relations
Court (Wilcox CJ, Marshall and North JJ) said of the practicability of reinstatement:
"Each case must be decided on its own merits. There may be cases where any
ripple on the surface of the employment relationship will destroy its viability. For
example the life of the employer, or some other person or persons, might depend
on the reliability of the terminated employee, and the employer has a reasonable
doubt about that reliability. There may be a case where there is a question about
the discretion of an employee who is required to handle highly confidential
information. But those are relatively uncommon situations. In most cases the
employment relationship is capable of withstanding some friction and doubts.
Trust and confidence are concepts of degree. It is rare for any human being to
have total trust in another. What is important in the employment relationship is
that there be sufficient trust to make the relationship viable and productive.
5 Perkins v Grace Worldwide (Aust) Pty Ltd [1997] IRCA 15, 72 IR 186.
-- 25 of 28 --
26
Whether that standard is reached in any particular case must depend upon the
circumstances of the particular case. And in assessing that question, it is
appropriate to consider the rationality of any attitude taken by a party.
It may be difficult or embarrassing for an employer to be required to re-employ a
person the employer believed to have been guilty of wrongdoing. The
requirement may cause inconvenience to the employer. But if there is such a
requirement, it will be because the employee's employment was earlier terminated
without a valid reason or without extending procedural fairness to the employee.
The problems will be of the employer's own making. If the employer is of even
average fair-mindedness, they are likely to prove short-lived. Problems such as
this do not necessarily indicate such a loss of confidence as to make the restoration
of the employment relationship impracticable."
[62] In this case, Mr Barnett has strongly asserted that reinstatement or re-employment of
Mr Farquharson would be impracticable for the five reasons recorded in paragraph [22]
above. Three of the reasons advanced are directly based on Mr Barnett's belief that
Mr Farquharson deliberately misled Mr Scott during the final day of the Stewards'
Inquiry and that such behaviour had completely destroyed the requisite trust between
he, as the Commissioner for Racing Integrity, the broader racing community and
Mr Farquharson, as Chief Stipendiary Steward - Harness.
[63] The remaining two grounds essentially concern 'The Sunday Mail" article (written by
Nathan Exelby, a sports writer, under the banner "The Verdict"), dated 5 March 2017,
and Mr Barnett's interpretation of its content. The full text of that article is as follows:
"Sacking angers Steward
DISMISSED harness racing chief steward David Farquharson has described his
sacking as "a farce" and has sought advice as to whether he has grounds for a
wrongful dismissal case against the Queensland Racing Integrity Commission.
Farquharson was stood down in December last year after a complaint was made
to QRIC by a racing participant.
Integrity commissioner Ross Barnett then ordered an independent external
investigation and after being handed the findings, dismissed Farquharson nine
days ago.
Barnett said no further comment would be made, but Farquharson has spoken out
about the decision.
'This is just a farce. I would do the same thing again tomorrow'. Farquharson
said of the behaviour in question, which has not been disclosed.
'I've been a steward in different parts of this country for 30 years and I have no
regrets in getting rid of drug cheats and prosecuting the people doing the wrong
thing.
A charge of misconduct from a person (Barnett) that's only known me since July
has ruined my career.
-- 26 of 28 --
27
I vehemently deny any allegations of serious misconduct and will be considering
my legal options.'"
[64] Based on his reading of the article, Mr Barnett asserted the words attributed to
Mr Farquharson about doing "the same thing tomorrow" demonstrated his "complete
lack of insight that his misconduct was in fact wrong". With respect to Mr Barnett, such
interpretation is unduly narrow and totally at odds with the words attributed to
Mr Farquharson in the following paragraph. Mr Farquharson was clearly talking about
the Scott Inquiry outcome and not the misconduct he had allegedly engaged in.
[65] Mr Farquharson said he had no recollection as to the exact content of his conversation
with Mr Exelby other than he felt "hard done by in the circumstances in which I was
dismissed". When pressed as to whether he used the word "farce" Mr Farquharson said
he could not be sure, but it was a word Mr Exelby used most weeks. Pressed further
about whether he expressed the view publicly that his dismissal was a farce or absurd,
Mr Farquharson replied "No, I expressed the view that I felt I was unfairly dismissed.
I did not give any specifics about the case. I couldn't talk about the case and there are
no details in Mr Exelby's column".
[66] While Mr Farquharson's views about his treatment should have been kept to himself,
and not made to a reporter chasing a story, I can well understand his decision to talk
publicly about what he saw as his unfair treatment. Mr Farquharson seemed, on my
short observation of him, to be a rather unsophisticated, "salt-of-the-earth", sort of man
who rose up through the stewards' ranks - across a number of States - to eventually
become the Chief Stipendiary Steward of the harness racing industry in Queensland.
His sudden summary dismissal for serious misconduct (in circumstances where he
believed he was innocent) would have come as quite a shock. After 30 years in the
industry he was suddenly out of a job, with his career and future prospects in tatters.
Without thinking about the repercussions he "vented" to Mr Exelby.
[67] The challenging question now confronting me is whether Mr Farquharson's "vent"
makes his reinstatement to his former position impracticable. After thinking about the
matter carefully I have concluded that it does not.
[68] In Perkins, the Full Court noted that in Nicholson v Heaven and Earth Gallery Pty
Limited6 Wilcox CJ said:
"It is important to note that Parliament stopped short of requiring that, for general
compensation to be available, reinstatement be impossible. The word
'impracticable' requires the Court to take into account all the circumstances of the
case, relating to both the employer and employee, and to evaluate the
practicability of a reinstatement order in a commonsense way. If a reinstatement
order is likely to impose unacceptable problems or embarrassments, or seriously
affect productivity, or harmony within the employer's business, it may be
'impracticable' to order reinstatement, notwithstanding that the job remains
available."
6 Nicholson v Heaven and Earth Gallery Pty Limited (1994) 1 IRCR 199 at 210.
-- 27 of 28 --
28
[69] As further noted by the Full Court in Perkins, the employment relationship is capable
of withstanding some friction and doubts and that trust and confidence are concepts of
degree. While Mr Barnett asserts that he no longer has trust and confidence in
Mr Farquharson that is because he believed the latter was guilty of misconduct by being
deliberately untruthful to Mr Scott. In coming to that conclusion, however, he closed
his mind to any other possible reason for Mr Farquharson's behaviour. Now that his
decision has been reviewed and overturned by a Tribunal charged with the
responsibility to review decisions of the type that he made, I am confident that
Mr Barnett will step back and accept that he might have made a mistake and perhaps he
should have given Mr Farquharson the benefit of the doubt. In this respect
Mr Farquharson has made it plain that he wishes to return to his former position
notwithstanding his treatment.
[70] In stating that I am confident Mr Barnett will accept the overturning of his decision, I
note his long and distinguished service as a police officer, rising to the equal second
highest rank in that service, and the fact that he is well used to following decisions from
Courts and Tribunals - even those with which he might personally disagree. While my
decision might be inconvenient and disappointing to him, I consider he is capable of
re-establishing an appropriate and professional working relationship with
Mr Farquharson.
[71] In any event, this is not a case where Mr Farquharson actually engaged in misconduct,
He simply made a mistake and then failed to correct it. It was not serious misconduct
and it was not a dismissible offence. In considering the matter of reinstatement in a
common sense way, it seems to me that it would be a travesty of justice if
Mr Farquharson was not reinstated to his former position simply because the person
who, I have found, unfairly dismissed him objects to his return. Far stronger grounds
than that are required before reinstatement could become impracticable.
Orders
[72] For the foregoing reasons, I make the following Orders:
1. That Mr Farquharson be reinstated to his former position of Chief
Stipendiary Steward - Harness, with the Queensland Racing Integrity
Commission from 24 February 2017.
2. That Mr Farquharson's continuity of employment be maintained for all
purposes of his Contract of Employment - both written and legislatively
provided.
3. That Mr Farquharson be paid any remuneration lost since his dismissal after
taking into account any employment benefits or wages received by him
since his dismissal.
4. That the parties discuss, with the intention of agreeing, how any statutory
entitlements paid to Mr Farquharson at the time of his original termination
are to be treated. In the event the parties are unable to agree, liberty to apply
is granted.
-- 28 of 28 --
Official source: https://www.sclqld.org.au/caselaw/QIRC/2018/001