Brown v Moore; Black Community Housing Service (Qld) Ltd v. Doyle; Black Community Housing Service (Qld) Ltd v Moore [1996] QSC 120 (1996)68 IR 176
IN THE SUPREME COURT
OF QUEENSLAND
Brisbane
Before the Hon Justice White
No 170 of 1995
BETWEEN:
NORMAN BROWN Appellant
AND: REBECCA MOORE Respondent
No 174 of 1995
BETWEEN: THE BLACK COMMUNITY HOUSING SERVICE
(QLD) LTD Appellant
AND: RELSIE DOYLE Respondent
No 175 of 1995
BETWEEN: THE BLACK COMMUNITY HOUSING SERVICE
(QLD) LTD Appellant
AND: REBECCA MOORE Respondent
REASONS FOR JUDGMENT - WHITE J
Judgment delivered 15/07/96
CATCHWORDSAPPEALS - Anti-Discrimination Tribunal - adequacy of
findings of fact and reasons - quantum of
general damages - nexus between harassment and
resignation - vicarious liability -
appropriateness of application of s.164(1) of
the Corporations Law.
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Counsel: Mr IFM Dearden for the appellant Brown.
Mr A Horneman-Wren for the appellant The Black
Community Housing Service (Qld) Ltd.
Ms D Richards for the respondents Moore and
Doyle.
Solicitors: Robertson O'Gorman for the appellant Brown.
Goss Downey and Carne for the appellant The
Black Community Housing Service (Qld) Ltd.
Legal Aid Office (Qld) for the respondents Moore
and Doyle.
Hearing Date: 7 June 1996
-- 2 of 36 --
IN THE SUPREME COURT
OF QUEENSLAND
Brisbane
No 170 of 1995
BETWEEN:
NORMAN BROWN Appellant
AND: REBECCA MOORE Respondent
No 174 of 1995
BETWEEN: THE BLACK COMMUNITY HOUSING SERVICE
(QLD) LTD Appellant
AND: RELSIE DOYLE Respondent
No 175 of 1995
BETWEEN: THE BLACK COMMUNITY HOUSING SERVICE
(QLD) LTD Appellant
AND: REBECCA MOORE Respondent
REASONS FOR JUDGMENT - WHITE J
Judgment delivered 15/07/96
On 26 July 1995 the Anti-Discrimination Tribunal (the
Tribunal) delivered her decision and gave reasons in respect of
two matters which had earlier been heard by her:-
• Rebecca Moore (complainant) and Norman Brown (first
respondent) and The Black Community Housing Service
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2
(Qld) Ltd (second respondent) No H11 of 1994.
• Relsie Loretta Doyle (complainant) and Mervyn Riley
(first respondent) and The Black Community Housing
Service (Qld) Ltd (second respondent) No H12 of 1994.
Appeals have been brought to this court pursuant to
s.217(1) of the Anti-Discrimination Act 1991. Thomas J stayed
the orders made pending determination of the appeals and gave
directions including that the appeals be heard together. The
appeals are:-
• The Black Community Housing Service (Qld) Ltd
(appellant) and Doyle (respondent) No 174 of 1995;
• Brown (appellant) and Moore (respondent) No 170 of
1995;
• The Black Community Housing Service (Qld) Ltd
(appellant) and Moore (respondent) No 175 of 1995.
Mr Riley has not appealed as it appears from the reasons that a
confidential settlement was reached with the complainant. The
Black Community Housing Service (Qld) Ltd's ("the Housing
Service") grounds of appeal are the same in each of its
appeals. Mr Horneman-Wren who appears for the Housing Service
has abandoned ground one of each appeal, namely, that the Anti-
Discrimination Tribunal erred in law in that she did not
adequately state the findings and reasons for her decision.
The Anti-Discrimination Tribunal
The Tribunal was constituted by the President, ss.176,
250(1A).
-- 4 of 36 --
3
The Orders
The orders made by the Tribunal were:
In No H11 of 1994 (the Moore complaint)
Against both respondents jointly and severally
1. $6,500 to reflect hurt and humiliation;
2. $13,500 for loss of income.
In No H12 of 1994 (the Doyle complaint):
1. $7,000 for intimidation and humiliation;
2. $6,240 for loss of income
"The first respondent is liable to the extent of the
confidential settlement and the second respondent is
jointly and severally liable for the whole of those
damages"
Further submissions were to be made as to costs. No orders
have been made but the appellants seek their costs below.
The Anti-Discrimination Act
The relevant provisions of the Anti-Discrimination Act
("the Act") commenced operation on 30 June 1992. Those
provisions are not described as having retrospective effect.
The Complaints
On 26 August 1992 written complaints were lodged by Ms
Moore and Ms Doyle alleging discrimination against their
employer Housing Service and in the case of Ms Doyle against
the President of the Housing Service Mr Mervyn Riley, and in
the case of Ms Moore against the Treasurer and a director of
the Housing Service, Mr Norman Brown. The conciliation process
was unsuccessful in resolving matters. Ms Moore and Ms Doyle
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4
required the Anti-Discrimination Commissioner to refer their
complaints to the Tribunal pursuant to s.166(1) of the Act on
the 1st and 11 November 1993 respectively.
The Proceedings
The Tribunal directed that evidence in chief on behalf of
the complainants was to be given on affidavit with the
deponents to be available for cross-examination. The Moore
complaint was heard on 8 May 1995. Only the complainant was
required for brief cross-examination. The respondents adduced
no other evidence.
The Doyle complaint was heard on 10 and 11 May 1995.
Settlement occurred between the complainant and the first
respondent Mr Riley, at the commencement of the proceedings.
Counsel for the Housing Service cross-examined the complainant
and her witnesses and adduced some oral evidence.
Background
The Moore Complaint
Ms Moore is a married aboriginal woman who was employed at
the Housing Service from December 1985 as a bookkeeper and from
December 1988 as Administrator until she resigned on 27 August
1992. The Housing Service is an organisation set up as a non-
profit public company to assist the aboriginal community in
providing housing. From December 1990 the appellant Norman
Brown was a director of the company and its treasurer. In her
affidavit the complainant alleged that from about October 1991
Mr Brown made numerous telephone calls to her expressing love
for her and made sexually suggestive remarks to her. The
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5
complainant told Mr Brown that this conduct was not acceptable
to her. Ms Moore attended meetings attended by Mr Brown at
which he made suggestive sexual comments to her. He gave
sexually explicit figurines to the complainant two of which
were exhibits in the proceedings. She alleged that Mr Brown
touched her sexually suggestively on numbers of occasions.
This activity occurred prior to the Act coming into force on 30
June 1992. The complainant said that she did not confront Mr
Brown directly because she feared that she would lose her job
but she did complain to members of the board and to the
President, Mr Riley, not long before she resigned. On 20
August 1992 Mr Brown telephoned the complainant and after
discussing a business matter asked her a sexually explicit
question which embarrassed her. The complainant spoke to two
other members of the board and indicated that if Mr Brown was
not stood down from his position while the matter was
investigated by the Commission she would resign. The board
took no action against Mr Brown and Ms Moore resigned on 27
August 1992. The complainant was challenged only with respect
to the sexually explicit words allegedly said to her by Mr
Brown in the telephone conversation on 20 August 1992 and she
affirmed that they were said. Much of the complainant's
evidence was corroborated by Ms Jody Brimble a co-worker at the
Housing Service and Ms Doyle, also employed at the Housing
Service.
The Doyle Complaint
Ms Doyle, a young aboriginal woman, commenced work at the
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6
Housing Service as a bookkeeper and receptionist on 8 January
1992. Ms Moore was her supervisor. The complaint against
Mr Riley was settled, as mentioned, but nonetheless it was
necessary for the Tribunal to make findings as to whether
unlawful conduct had been engaged in by Mr Riley in order to
consider the complaint against the Housing Service. Mr Riley
was a married man but on many occasions including three times
in her first week at work he asked the complainant to go out to
dinner with him. She made it clear that his attentions were
unwelcome. He discussed her private life with other people and
made obscene gestures behind her back and wrote an obscenity in
a birthday card to her from her co-workers. He made sexually
suggestive comments to her while she was driving him to the
university. Those matters all occurred before the Act came
into force. Ms Doyle began to feel that Mr Riley was obsessed
with her and spying on her. Ms Doyle's health suffered as a
consequence of her anxiety and a Dr Rath diagnosed anxiety and
depression related to sexual harassment. On 26 August 1992
Ms Doyle approached two directors of the Housing Service and
complained about sexual harassment. Mr Riley expressed anger
at Ms Doyle's complaint to the Commission which she made on
26 August. Ms Doyle felt unable, for a variety of reasons
associated with the harassment, to continue working at the
Housing Service and resigned on 27 August 1992.
The Grounds of Appeal
• Norman Brown
The President of the Anti-Discrimination Tribunal:
-- 8 of 36 --
7
1. Erred in law in that she did not adequately state the
findings and reasons for her decision;
2. Erred in law in awarding the respondent the sum of
$6,500 in general damages "to reflect the hurt and
humiliation suffered" (by the Respondent) after
30 June 1992 in that:
(a) There was no evidence that the Respondent
suffered any hurt and/or humiliation as a result
of the events that occurred after 30 June 1992,
the date the relevant provisions of the Anti-
Discrimination Act 1991 came into operation;
(b) The President did not make findings as to which
events occurred after 30 June 1992; and
(c) The sum of $6,500 was excessive in the
circumstances.
3. Erred in law in awarding the Respondent $13,500 in
damages for loss of income because there was no
evidence that the Respondent resigned her employment
because of the behaviour of the Appellant that
occurred after 30 June 1992.
• The Black Community Housing Service (Qld) Ltd
1. Discontinued
The President of the Anti-Discrimination Tribunal
2. Erred in law in deciding that the Appellant was
vicariously liable pursuant to s.133 of the Anti-
Discrimination Act 1991 for the actions of Mr Brown in
that:
-- 9 of 36 --
8
(a) In reaching the said decision the President
considered and applied s.164(1) of the Corporations
Law when the said section was not relied upon by the
Respondent or otherwise raised as an issue in the
proceedings;
(b) In reaching the said decision by application of
s.164(1) of the Corporations Law, the President
failed to accord natural justice to the Appellant as
the Appellant was not heard on the issue.
3. Erred in law in finding that the Respondent [the
complainant] was entitled to act on the assumption that
Mr Brown was the agent of the Appellant by application of
s.164(1) of the Corporations Law, in that:
(a) the Respondent was not a person having dealings with
the Appellant;
(b) the Respondent was precluded from making the said
assumption by operation of s.164(4) of the
Corporations Law.
The same grounds apply in respect of the Doyle appeal
making a reference to "Mr Riley" in lieu of "Mr Brown".
The Powers of the Court
Pursuant to s.218 of the Act the court on the hearing of
an appeal may
"(a) affirm, vary or quash the order or decision
appealed against; or
(b) substitute, or make, in addition, any order or
decision that should have been made in the first
instance; or
(c) remit the matter to the Tribunal for further
-- 10 of 36 --
9
hearing or consideration or for re-hearing; or
(d) make any order as to costs or any other matter
that the court considers appropriate."
The orders sought by the appellants are that the decisions in
each complaint be quashed, that those complaints be dismissed
and that the respondents pay the appellants' costs of and
incidental to the respondents' complaint to the Anti-
Discrimination Tribunal and of the appeal.
The Tribunal's Reasons
The Tribunal's reasons were handed down when she made her
orders on 26 July 1995 and are accepted to be reasons for the
purpose of s.211. The right of appeal from a decision of the
Tribunal is limited to questions of law, s.217(1). Section 211
provides that a party may ask the Tribunal for reasons which
must be provided within 28 days and s.217(2) anticipates that
if there is to be an appeal there will be written reasons.
There would appear to be no statutory requirement to give
reasons either written or oral when making an order unless
requested to do so but nonetheless when those reasons were
given it was accepted that s.27(B) of the Acts Interpretation
Act (1954) applies. It provides
"If an Act requires a Tribunal, authority, body or
person making a decision to give written reasons for
the decision (whether the expression "reasons",
"grounds" or another expression is used), the
instrument giving the reasons must also -
(a) set out the findings on material questions of
fact; and
(b) refer to the evidence or other material on which
those findings were based."
The nature of the Tribunal, the qualifications for office as a
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10
member and its powers set out in Chapter 7 Part 2 and Chapter 9
Part 2 of the Act indicate that it resembles a court of law
although it is not bound by the rules of evidence, s.208.
There is a wealth of authority on the obligation to
provide reasons and the rationale for that obligation with
respect to both judicial officers and tribunals, see, inter
alia, Pettitt v. Dunkley [1971] 1 NSWLR 376; Housing Commission
of New South Wales v. Tatmar Pastoral Co Pty Ltd [1983] 3 NSWLR
378; Public Service Board of New South Wales v. Osmond (1986)
159 CLR 656; Soulemezis v. Dudley (Holdings) Pty Ltd [1987] 10
NSWLR 247; Dornan v. Riordan (1990) 95 ALR 451; Hon Justice
Kirby "Reasons for Judgment: "Always permissible, usually
desirable and often obligatory" in (1994) 12 AB Rev 121; H
Catzen "Inadequacy of Reasons as a Ground of Appeal" in [1993]
1 Aust. J Ad Law 33.
In Soulemezis Mahoney JA said at p. 269
"First, the reasons given must be sufficient, where
there is a right of appeal, to allow that right to be
exercised. Secondly, the giving of reasons is not
limited to cases where there is a right of appeal:
there are reasons in the nature of the judicial
process which may require that reasons be given as an
incident of the decision in question. And, thirdly,
the giving of reasons is a normal but not a universal
incident of the judicial process: there are some
cases, or kinds of cases, where they need not be
given. ... I ... see them as applicable in
determining what reasoning of fact a judge is under
pain of error of law, required to set forth in his
judgment."
Section 27(B) of the Acts Interpretation Act makes it plain
what a tribunal must provide by way of reasons for its
decision. Reference to the cases assists in understanding more
fully that obligation. Mahoney JA in Soulemezis considered the
-- 12 of 36 --
11
extent to which the reasoning to the conclusions of fact stated
in the judgment are required to be detailed. At p. 271 he said
"... The law does not require that a judge make an
express finding in respect of every fact leading to,
or relevant to, his final conclusion of fact; nor is
it necessary that he reason, and be seen to reason,
from one fact to the next along the train of
reasoning to the conclusion."
He continued at pp. 272 et seq
"In considering what reasons must be given and what a
judge does in writing a judgment, it is relevant to
distinguish between the essentials and the
peripherals. For example, where there is an appeal
from his order, it is proper that the judge make
apparent those matters which should be apparent if
the right of appeal is to be exercised by the
unsuccessful party and if the appellate court is to
be able to do what, in the particular appeal, it
should do.
And specific findings may be necessary to ground the
power of the trial judge to make the order that he
has made. In some cases, the court has power to
alter rights of parties if and only if particular
jurisdictional facts are found. In such cases, it
may be necessary - at least it will be expected -
that findings on those facts be made. The failure to
find them may, in courts other than superior courts,
constitute defects of jurisdiction to which
prerogative relief will go."
His Honour observed that it will ordinarily be sufficient if by
his reasons the judge apprises the parties of the broad outline
and constituent facts on which he has acted. His Honour said
that it was to mistake the nature of the reasoning process to
require that a judge detail the way in which he has reasoned
step by step to his conclusion.
In Williams v. Bill Williams Pty Ltd [1971] 1 NSWLR 547 at
p. 557 Mason JA as he then was observed:
"... Where a tribunal at first instance fully and
comprehensively states all the facts requisite for
the decision, and poses for decision the question
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12
whether those facts fall within the meaning of a
statutory provision, that question, may, in general,
be regarded as a question of law. But it sometimes
happens that a tribunal at first instance states a
number of facts, without making findings on all the
issues of fact relevant to the final decision in the
case. The decision may then depend on an unexpressed
finding of fact, with the consequence that where an
appeal lies from the decision on a question of law
only, it is not possible to conclude that the error
asserted by the appellant is one of law.
So also it may happen that the tribunal at first
instance is confronted with the task of applying the
statutory expression to primary facts in such
circumstances that it is reasonably possible to
arrive at different conclusions, the question be
largely one of degree upon which different minds may
take different views. Here, again, it is not
possible to conclude that the decision appealed from
is erroneous in point of law."
In Azzopardi v. Tasman UBE Industries Ltd (1985) 4 NSWLR 139
the majority noted that an error of fact finding would not be
elevated to an error of law if based on evidence open to the
trial judge even if an appeal court were of the view that the
decision on the facts was illogical, perverse or completely
unreasonable. Kirby P, as his Honour then was, in Soulemezis
at p. 259 said that where there is an appeal only for error of
law and the primary judge indicates even in brief terms his
processes of reasoning to a conclusion on disputed facts the
appellate tribunal may not interfere. But where he does not do
so or where the inference from his given reasons establish or
suggest a misapplication of the statute the appeal court may
intervene for it demonstrates an error of law. His Honour
dissented in Soulemezis but only on the application of the
principles to the judgment under appeal. In the same case
McHugh JA as his Honour then was at p. 281 said
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13
"In a case where a right of appeal is given only in
respect of a question of law, different
considerations apply from the case where there is a
full appeal. An ultimate finding of fact, which is
not subject to appeal and which is in no way
dependent upon the application of a legal standard,
can be treated less elaborately than an issue
involving a question of law or mixed fact in law. If
no right of appeal is given against findings of fact,
a failure to state the basis of even a crucial
finding of fact, if it involves no legal standard,
will only constitute a error of law if the failure
can be characterised as a breach of the principle
that justice must be seen to be done."
His Honour warned that in determining the issue under
consideration in the appeal great care needed to be taken that
dissatisfaction with the finding of fact did not mislead the
court into holding that the judge below had failed to give his
reasons for his finding.
In Collector of Customs v. Pozzolanic (1993) 43 FCR 208
the Full Court of the Federal Court (Neaves, French and Cooper
JJ) said at p. 187
"The Court will not be concerned with looseness in
the language of the Tribunal nor with unhappy
phrasing of the Tribunal's thoughts: Lennell v.
Repatriation Commission (1982) 4 ALN N 54 (Northrop
and Sheppard JJ); Freeman v. Defence Force Retirement
and Death Benefits Authority (1985) 5 AAR 156 at 164
(Sheppard J); Repatriation Commission v. Bushell
(1991) 13 AAR 176 at 183 (Morling and Neaves JJ).
The reasons for the decision under review are not to
be construed minutely and finely with an eye keenly
attuned to the perception of error; Politis v.
Commissioner of Taxation (Cth) (1988) 16 ALD 707 at
708 (Lochhart J)."
The High Court (Brennan CJ, Toohey, McHugh, Gummow JJ) in
Minister for Immigration and Ethnic Affairs v. Wu Shan Liang
(1996) 70 ALJR 568 referred to this passage with approval at
p. 575.
With these observations in mind the reasons for decision
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14
in each of the appeals may be considered.
The Brown Appeal
The Tribunal set out a summary of the objectionable
conduct by Mr Brown towards Ms Moore prior to the Act coming
into force. She then set out the relevant provisions of ss.
117, 118, 119 and 120 of the Act describing the purpose of the
Act, its prohibition of sexual harassment, the definition of
sexual harassment and what circumstances might be relevant to a
consideration of whether "a reasonable person would have
anticipated the possibility that the other person would be
offended, humiliated or intimidated by the conduct", s.119(f).
The Tribunal made a clear distinction between conduct which
occurred prior to 30 June and conduct which occurred after. At
p. 4 of the reasons for decision the following appears
"There appears little doubt that all of the acts
complained of by Ms Moore which occurred prior to
30 June 1992 and which she found unwelcome fall
within the definition of sexual harassment as found
within the Anti-Discrimination Act 1992. However
such acts only became unlawful under the Act if they
took place after the Act came into effect and she
could only use the complaint procedures put in place
once that Act came into effect on 30 June 1992."
The Tribunal then noted that Ms Moore had made known to
Mr Brown that his remarks and action were unwelcome and that
she felt unable to confront him directly because of his
position, her need for a job and her reliance upon the Housing
Service for accommodation. The Tribunal made reference to
complaints by Ms Moore to two directors of the Board and to Mr
Riley, the President. She does not identify when those
complaints were made. The uncontested material does not do so.
-- 16 of 36 --
15
It was an inference which could have been drawn from that
material that the complaints occurred in the months immediately
prior to the complaint being made to the Commission on 26
August 1992. Not to state that that inference was being drawn
was not a reviewable error.
The Tribunal proceeded to deal with the post 30 June
conduct. The following appears at p. 5 of the reasons
"However the harassment continued. On 20 August 1992
Mr Brown telephoned Ms Moore to discuss a business
matter and at the end of the conversation he said to
her "how is your 'junoo?'" This was a reference to
her vagina and she was extremely embarrassed and
uncomfortable after this comment. In cross-
examination counsel for Mr Brown asked Ms Moore if
she would have resigned when she did if the phone
call of 20 August was the only incident which
occurred. Ms Moore agreed that she would not have
resigned if it was the only incident. However Ms
Moore gave evidence which I accept that phone calls
similar to the one which occurred on 20 August 1992
occurred at least once a week and accordingly I have
no doubt that there were several similar telephone
calls during July and August after the Act came into
effect. Throughout the course of her employment with
the housing service Ms Moore saw Mr Brown frequently
at meetings at which he would ask her when he could
sleep with her. She was not cross-examined on this
point and there is no reason for me not to accept
that these meetings continued to occur until the time
when Ms Moore resigned"
At p. 7 the Tribunal continued
"There is no doubt in my mind that the comments made
by Mr Brown to Ms Moore after 30 June 1992
represented sexual harassment because they
represented unsolicited demands or requests for
sexual favours from the other person and remarks with
sexual connotations relating to the other person
which fall within subparagraphs (b) and (c) of s.119.
Further it is clearly the case that the
circumstances were such that a reasonable person
would have anticipated the possibility that the other
person would be offended humiliated or intimidated by
the conduct. It is relevant to those circumstances
that Mr Brown was in a more powerful position within
the housing service than Ms Moore. Ms Moore had made
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16
clear to Mr Brown that the conduct was offensive and
unwelcome, and therefore it is clear that Mr Brown
must have anticipated at least the possibility that
Ms Moore would be offended, humiliated or intimidated
by his behaviour. The only action which she felt she
was able to take to end the harassment was to resign
her job, a job she had held for nearly seven years."
Mr Dearden submitted that there was no evidence upon which
the Tribunal was entitled to make the findings set out at p. 5
of the reasons. In her affidavit Ms Moore swore
"From about October 1991 the First Respondent,
Mr Brown, made telephone calls to me in which he told
me that he was in love with me and wanted my junoo
(vagina), and that we could make beautiful love."
And in paragraph 4
"Throughout the course of my employment, I saw
Mr Brown frequently at meetings at which he would ask
me when he could sleep with me. I cannot recall the
exact dates of these meetings but they were quite
frequent."
In cross-examination she was asked by Mr Horneman-Wren for the
Housing Service how often the council met during the period
when she was the administrator to which she answered "Normally
monthly, but sometimes there was meetings that - where a corum
wasn't available, so they would be put off, but normally
monthly meetings were held". He also asked her "Can you recall
precisely when those calls [referring to the telephone calls in
paragraph 3 of her affidavit] were received?" She answered
"No, because I never took a note of them". In re-examination
Ms Moore's counsel asked her over what period of time she
received the telephone calls. Ms Moore answered "I am not sure
whether it was 1990 or 1991, right up until the Thursday before
- before I resigned". She was asked how often she received
them and she said at least once a week and that they were along
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17
the same lines.
In submissions Mr O'Gorman, who appeared before the
Tribunal on behalf of Mr Brown, submitted that at worse for his
client there were some nine comments which occurred after 30
June 1992 consisting of seven weekly telephone calls, one
meeting and one conversation on 20 August 1992. The state of
the evidence would suggest that the meetings were monthly and
the meeting for August took place the day after Ms Moore
resigned. The Tribunal commented that Ms Moore was not cross-
examined on paragraph 4 of her affidavit but the oral evidence
did suggest that the meetings were monthly meetings and
therefore it was unlikely that more than one and certainly no
more than two meetings occurred after 30 June 1992. For the
Tribunal to express "meetings" in the plural in the context of
the evidence is not a reviewable error. The conduct of
Mr Brown was the same before and after 30 June 1992. There was
no need for the Tribunal to express again what that conduct was
when turning in the reasons to the period post 30 June. She
was entirely justified in concluding that that conduct
constituted sexual harassment and indeed there were no
submissions to the contrary. If there was a perception that
she may have overstated the number of meetings that occurred
after 30 June 1992 that is not an error of law. It was the
totality of the conduct after 30 June which could be considered
by the Tribunal in applying the Act and only that conduct. On
a reading of the whole of the reasons there is no suggestion
that the Tribunal did not keep post 30 June conduct and the
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18
evidence describing it in mind.
Mr Dearden further submitted, although not a separate
ground of appeal, that the Tribunal was not entitled to
conclude that the use of the word "junoo" by Mr Brown to
Ms Moore constituted language which was offensive within the
meaning of s.119 without calling some expert evidence to say
that it would be offensive to a person in the position of Ms
Moore. Ms Moore swore in paragraph 3 of her affidavit that
"the word junoo is well known in indigenous culture as
referring to a vagina and I therefore regarded these telephone
calls as obscene and offensive". In cross-examination by Mr
O'Gorman Ms Moore said that the word "junoo" is a word that she
had used herself in the past. It was uncontested that Ms Moore
told Mr Brown that such conduct was not acceptable to her. In
my view that was sufficient evidence for the Tribunal to
conclude that Mr Brown would understand that the use of that
expression was offensive to Ms Moore within the meaning of
s.119. There was nothing in the conduct of the case which
suggested that there would be any ambiguity about the use of
such an expression by Mr Brown when speaking to Ms Moore. The
proper conduct of the complainant's case did not call for
expert linguistic or cultural evidence as to the offensive
nature of that expression. There was no error in the Tribunal
accepting that the use of that expression in the circumstances
was offensive to Ms Moore and was known to be so by Mr Brown.
To some extent ground 2 overlaps with ground 1 in as much
as it is submitted that the Tribunal demonstrated no basis for
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19
reaching the conclusion as to the quantum of damages. At p. 10
of the reasons the following appears
"In addition Ms Moore should be compensated for the
intimidation and humiliation that she suffered at the
hands of Mr Brown for which the housing service is
also vicariously liable. Because of the effect on
her self-esteem and continuing effect on the
complainant's trust of male co-workers, I am of the
view that $6,500 in general damages should be awarded
to reflect the hurt and humiliation suffered after 30
June 1992."
At p. 6 of the reasons the Tribunal said
"A continuing effect of the harassment in her present
employment is that she is extremely reluctant to
enter into a position which means that, for example,
she would have to travel alone in a vehicle with a
male co-worker. When she left her position at
housing service she felt humiliated and worthless and
she has continued to be affected on an emotional
level as a result of the harassment."
It was submitted by Mr Dearden that it is an error of law not
to show the reasoning whereby the sum of $6,500 was arrived at.
He submitted further that there was no basis in evidence for
the conclusion that Ms Moore suffered in the way set out after
30 June 1992.
In paragraph 10 of her affidavit Ms Moore swore that on
receiving the telephone call from Mr Brown on 20 August 1992
she was "extremely embarrassed and uncomfortable". In
paragraph 11 she said that prior to 20 August 1992 she was
harassed and stressed and approached Mr Riley the President.
As I have mentioned it is not entirely clear whether this
occurred before or after 30 June. In paragraph 14 Ms Moore
swore that since the board took no action against Mr Brown
after her complaint "I could not continue working in such
stressful conditions". In paragraph 15 Ms Moore said that "As
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20
a result of the harassment, I was under an extreme amount of
stress. I felt humiliated and embarrassed by Mr Brown's
conduct and was often in a state of anxiety because of it. I
was constantly in fear when I was left in the office on my own
that Mr Brown would come into the office and would make every
effort to ensure I was never left alone with him."
In paragraph 16 Ms Moore swore
"I have been affected as a result of the harassment
in my present employment in that I am extremely
reluctant to enter into a position of vulnerability
with a co-worker, for example to go travelling in a
vehicle alone with a male co-worker. I have further
continued to be affected on an emotional level
subsequent to leaving the Black Community Housing
Service as a result of this sexual harassment. By
the time I finished at the Black Community Housing
Service I felt humiliated and worthless. I felt that
I needed to change my lifestyle to try and re-
establish my confidence in myself."
Although the Tribunal does not state in her discussion of
damages that the compensation may only be for the effect of
conduct occurring after 30 June 1992, that date as the
demarcation point for the exercise of jurisdiction has been
clearly expressed several times in the course of the reasons
and there is no reason to suppose, in a short judgment of 11
pages, that the Tribunal lost sight of this. It then is
necessary to consider whether the award of damages of $6,500
for "intimidation and humiliation" is so manifestly excessive
as to lead to no other conclusion but that the Tribunal fell
into error.
An award of damages pursuant to s.209(1)(b) of the Act is
an exercise of discretion. In Calder v. Boyne Smelters Limited
[1991] 1 Qd. R. 325 Cooper J said at pp. 347-8
-- 22 of 36 --
21
"When an appeal is brought against the exercise of a
judicial discretionary judgment "the existence of an
error, whether of law or of fact, on the part of the
court at first instance is an indispensable condition
of a successful appeal" (per Mason and Deane JJ in
Norbis v. Norbis (1986) 161 CLR 513 at 519; see also
Wilson and Dawson JJ at 535 and Brennan J at 541).
The error must be one that vitiates the original
decision (Minister for Aboriginal Affairs v. Peko-
Nwallsend at 48 per Mason J with whom Gibbs CJ and
Dawson J agreed). That is, the discretionary
judgment must be shown to be wrong. This means "in
the ultimate analysis and in the absence of any
identifiable error of fact or positive law, the
appellate court must be persuaded that the order
stands outside the limits of a sound discretionary
judgment before it intervenes" (Norbis v. Norbis at
520).
...
The settled rule, as enunciated by Mason J in Wilson
v. Peisley, has three parts:
(i) the application of a wrong principle of law;
or
(ii) a misapprehension of the facts; or
(iii) an award which is so inordinately low or so
inordinately high as to be a wholly erroneous
estimate of the damage suffered."
This is an appeal on a question of law only and it must be
demonstrated that the Tribunal acted on a wrong principle of
law which has led to an award of damages which is beyond the
limits of what the exercise of a sound discretionary judgment
could reasonably adopt.
Mr Dearden has put before the court a schedule of damages
awarded in sexual harassment cases. No submissions were made
to the Tribunal as to the appropriate quantum of general
damages although submissions were made with respect to loss of
wages. Each case must be decided on its own particular facts
and the controversy about the extent to which courts of first
instance should or should not take into account comparable
-- 23 of 36 --
22
awards of damages has not yet been resolved, see Moran v.
McMahon (1985) 3 NSWLR 700 and the discussion in Luntz
Assessment of Damages for Personal Injury and Death 3rd edition
(1990) p. 507 et seq. In Planet Fisheries Pty Ltd v. La Rosa
(1968) 119 CLR 118 the High Court rejected a consideration of
comparable awards of damages and stated at p. 125
"It may be granted that a judge who is making such an
assessment will be aware of and give way to two
correct ideas of fairness and moderation."
As many courts have commented, it is difficult to do this
without relying upon decisions which are considered comparable,
particularly those of appellate or superior courts. The most
compelling reason advanced for continuing to support the
principle in Planet Fisheries is that the facts in damages
cases are infinitely varied. A "range" is generally thought to
be a not inappropriate way of making submissions to the
tribunal of fact. The schedule of damages awards in sexual
harassment decisions which Mr Dearden has produced show, as one
would expect, a range from nil for general damages to $50,000
(Bevacqua v. Klinkert (1993) EOC 92-515; 92-516). A schedule
from the Australian and New Zealand Equal Opportunity Law and
Practice also shows a wide range of amounts for what can be
described as general damages. Without an examination of the
facts of each or an understanding of the appropriate range
which comes from experience and familiarity with that
jurisdiction it is difficult to do more than note the diversity
of figures and that modest awards seem to be a consistent
feature. Ms Richards submitted that after 30 June 1992 Mr
-- 24 of 36 --
23
Brown had to take the complainant as he found her, that is, as
a young woman who had been exposed already to conduct which,
had the Act been in place, would have been unlawful sexual
harassment. She referred to Fares v. Boxhill College of TAFE a
decision of the Equal Opportunity Board of Victoria (1992) EOC
92-391 where the Board concluded that the respondents should
take the complainant as she came to them with her vulnerable
personality when the acts of discrimination occurred and relied
on Purkess v. Crittenden (1965) 114 CLR 164 at pp. 171-2 and
Watts v. Rake 108 CLR 158 at p. 160. Those matters were not
argued before the Tribunal below. What was argued was the
extent to which the pre-30 June conduct and its effect could be
taken into account in assessing Mr Brown's conduct after that
date. Section 119(f) allows the Tribunal to take into account
circumstances where a reasonable person would have anticipated
the possibility that the other person would be offended,
humiliated or intimidated by the conduct in deciding whether
sexual harassment has occurred. Although not stated explicitly
in the Tribunal's reasons, in the passage at p. 7 which is set
out above, it is implicit that the Tribunal assessed damages
against the background of Mr Brown's previous conduct towards
Ms Moore and his understanding of her response to that conduct.
There was no error, not least because of s.119(f) in
approaching the question of damages in that way.
I am not persuaded that the award of damages of $6,500 to
Ms Moore was so high as to constitute an error law. There is
no indication that the Tribunal proceeded on a wrong principle
-- 25 of 36 --
24
and her failure to refer to comparable awards certainly is not
an error of law. On one view it may be positively erroneous to
do so.
The third ground of appeal is that the Tribunal erred in
law in awarding the respondent $13,500 in damages for loss of
income from 27 August 1992 to 1 May 1994 because there was no
evidence that she resigned her employment because of behaviour
of the appellant which occurred after 30 June 1992. The
Tribunal found that in spite of complaints made to three
members of the board of directors nothing had been done to stop
the harassment. The evidence did not make clear whether this
occurred before or after 30 June. The Tribunal noted that
prior to resigning Ms Moore spoke to two other board members
after 30 June and told them that if Mr Brown was not stood down
from his position while the matter was being investigated by
the Commission she would be forced to leave. The Tribunal then
noted that since no action was taken by the Board Ms Moore felt
that she had no option but to resign since she could not
continue to work in such stressful conditions. In cross-
examination Ms Moore was asked by Mr O'Gorman if the telephone
conversation on 20 August 1992 were the only incident would she
have resigned on 26 August and she responded that she would not
if it was the only incident. Mr Dearden has focused upon that
answer without including the other conversations which the
Tribunal inferred took place at least once per week from
30 June 1990 until 27 August. The Act permits reference to be
had to the circumstances of the conduct. It is not possible in
-- 26 of 36 --
25
causative terms to separate the cumulative effect of what had
gone before 30 June with what happened afterwards. Because of
s.119(f) it is not necessary to do so. That is not to say that
the Tribunal impermissibly took into account the pre-30 June
1992 conduct but recognised that a continuation of that
conduct, after it became unlawful, was a sufficient cause of Ms
Moore's resignation, Simonius Vischer & Co v. Holt [1979] 2
NSWLR 322. It is true that the Tribunal does not articulate Mr
Brown's responsibility for Ms Moore's resignation in terms of
causation, however it seems plain from her findings on p. 5
that the Tribunal did not fall into error in attributing to
pre-30 June conduct the cause of her resignation. The Tribunal
said at p. 5
"In cross-examination counsel for Brown asked Ms
Moore if she would have resigned when she did if the
phone call of 20 August was the only incident which
occurred. Ms Moore agreed that she would not have
resigned if it was the only incident. However
Ms Moore gave evidence which I accept that phone
calls similar to the one which occurred on 20 August
1992 occurred at least once a week and accordingly I
have no doubt that there were several similar phone
calls during July and August after the Act came into
effect."
The quantum of $13,500 or the duration for which it was
awarded was not a ground of appeal. The reasons are adequate
and sufficient on the relation between the conduct of Mr Brown
and the resignation of Ms Moore to convey the reasoning process
of the Tribunal.
I have concluded that no error of law has been revealed
and Mr Brown's appeal ought to be dismissed with costs.
The Housing Service Appeal
-- 27 of 36 --
26
(i) The Moore Appeal
The Housing Service submits that the Tribunal erred in law
in deciding that the service was vicariously liable pursuant to
s.133 of the Act for the actions of Mr Brown in that the
Tribunal considered and applied s.164(1) of the Corporations
Law when it was not relied upon nor otherwise raised as an
issue in the proceedings. It was submitted that there was thus
a failure to accord natural justice to the Housing Service.
Alternatively the Tribunal erred in law in finding that Ms
Moore was entitled to act on the assumption that Mr Brown was
the agent of the Housing Service by application of s.164(1) of
the Corporations Law in that she was not a person having
dealings with the Housing Service and was precluded from making
that assumption by virtue of s.164(4) of the Corporations Law.
The Tribunal commenced this part of her reasons for
decision at p. 7. She made a reference to s.132 of the Act and
set out the provisions of s.133(1) which provides that
"If any of a person's workers or agents contravenes
the Act in the course of work or while acting as
agent, both the person and the worker or agent, as
the case may be, are jointly and severally civilly
liable for the contravention, and a proceeding under
the Act may be taken against either or both."
She referred to the provisions of s.133(2) which provides that
it is a defence to a proceeding for a contravention of the Act
arising under subsection (1) if the person proves on the
balance of probabilities that it took reasonable steps to
prevent the worker or agent contravening the Act. The Tribunal
mentioned that although "worker" is not defined in s.4 "work"
is and includes work on a voluntary or unpaid basis. She
-- 28 of 36 --
27
mentioned that Mr Brown could fall within the definition of
worker but then goes on to state that the claim against him was
made on the basis that the sexual harassment occurred while he
was acting as agent of the Housing Service being its director
and treasurer and at its premises or otherwise in contact with
Ms Moore in his capacity as treasurer and director. She
referred to the definition of "agent" in the Act and then
considered s.164 of the Corporations Law. It is appropriate to
set out the whole of her reasons on this point.
"Section 164(1) of the Corporations Law provides that
a person having dealings with a company is entitled
to make certain assumptions about those dealings and
any proceedings in relation to those dealings, and
any assertion by the company that the matters that
the person is so entitled to assume were not correct
shall be disregarded. Those assumptions include the
assumption that a person who is held out by the
company to be an officer or agent of the company has
been duly appointed and has authority to exercise the
powers and perform the duties customarily exercised
or performed by an officer of the kind concerned and
that the directors, principal executive officer, the
secretaries, the employees and the agents of the
company properly perform their duties to the company.
The company held Mr Brown out to be its treasurer and
a director. It is within the usual powers of the
treasurer to speak to the administrator about
financial matters and to attend meetings of the
company. Ms Moore was entitled to act on the
assumption that Mr Brown was acting as agent of the
company. This section of the Corporations Law gives
statutory form to the doctrine of implied, usual and
ostensible authority. As I have found, the sexual
harassment of Ms Moore by Mr Brown occurred while he
was performing his duties as treasurer.
As I have found that Mr Brown was acting as agent of
the company, it follows that the company was
vicariously liable for his actions unless the defence
given by s.133(2) is made out on the balance of
probabilities by the respondent. That defence is
that the respondent took reasonable steps to prevent
the agent contravening the Act. As there is no
evidence of any steps taken by the housing service to
-- 29 of 36 --
28
prevent Mr Brown from acting in the way in which he
did to Ms Moore, this defence has not been made out.
On the contrary, evidence was given by the complaint
that at no stage did the housing services have an
articulated policy on sexual harassment. There were
no documents on the policy and no seminars given nor
any education given to the people that working at the
Service to communicate that a policy was in
existence. This was the case even though there had
been an earlier complaint made by another woman
against another man who worked there."
It was conceded by counsel for the Housing Service in
making his submissions to the Tribunal that when Mr Brown
telephoned Ms Moore and discussed the business of the Housing
Service with her he was doing so as its director or treasurer.
He did not concede that Mr Brown was therefore acting as agent
but on the evidence that was plain. Before me Mr Horneman-Wren
conceded that the concession made by him to the Tribunal
included that when Mr Brown discussed Housing Service matters
with Ms Moore he was doing so as the agent of Housing Service.
The Tribunal makes no reference to that concession in her
reasons. The Corporations Law was not raised in the pleadings
or at any time in counsel's submissions or in the exchanges
between the Tribunal and counsel in the course of the hearing.
As Mr Horneman-Wren submitted, s.164 purports to give
statutory effect to the rule in Turquand's case, (1856) El & Bl
327; 119 ER 886 ("the indoor management rule"). It is thought
to go further than give it mere statutory effect and to correct
some of the shortcomings in the common law, BNZ v. Fiberi
(1993) 14 ACSR 736 per Kirby P (as his Honour then was) at 740.
It is unnecessary here to consider the extent to which a
tribunal may refer to or rely upon statutory provisions or
-- 30 of 36 --
29
authorities in reaching a decision which have not been raised
with or by the parties either in the course of the hearing or
before decision. There is good reason why in this case s.164
ought to have been raised as a matter of evidence if it were to
be raised at all. No opportunity was given to the Housing
Service to make submissions about whether Ms Moore in any
relevant sense had "dealings" with Housing Service. However
nothing on the facts suggests that Ms Moore in her contacts
with Mr Brown was engaged in "dealings" with the Housing
Service. She was an employee of the company and, as far as the
evidence would suggest, discussed with Mr Brown matters
pertinent to the management of the company internally. In
Barclays Finance Holdings Ltd v. Sturgess (1985) 3 ACLC 662
Wood J at p. 667 expressed the opinion that "dealings" referred
to a transaction with a company. The provision concerns
certain assumptions which a stranger to a company may make
about the regularity of its internal management. See also
Northside Developments Pty Ltd v. Registrar-General (1990) 170
CLR 146. Even if the section were to apply, which, in my view,
it does not, the person who calls it in aid must be qualified
to do so and be not otherwise precluded by actual or presumed
notice. In Bell Resources Holdings Pty Ltd v. Commissioner for
ACT Revenue Collection (1990) 22 FCR 178 von Doussa J concluded
that a claim to the benefit of the section must be raised as an
issue in the proceedings. Ms Richards submitted that s.208 of
the Act, which provides that the Tribunal is not bound by the
rules of evidence and may inform itself on any matter as it
-- 31 of 36 --
30
considers appropriate, permits the Tribunal to have reference
to matters not raised before it in reaching a decision.
Section 208 makes clear the way in which the Tribunal is to
conduct itself. It must act according to equity, it may
receive in evidence a report of the Commissioner, but only if
the Commissioner has provided a copy to each party to the
hearing, and may hold a hearing in the absence of a party who
has given reasonable notice to attend but who failed to do so
without providing good reason, s.208(b), (f) and (h). It does
not empower the Tribunal to rely upon matters not raised with
the parties.
I have no doubt that it was an error of law on the part of
the Tribunal to rely on s.164 of the Corporations Law in
reaching her decision. However it is necessary to examine her
decision to see if the reliance upon s.164 was a necessary
aspect of her finding of vicarious liability against the
Housing Service. Mr Horneman-Wren has submitted that should I
find that the Tribunal erred in applying s.164 then no finding
of vicarious liability could be made. It seems clear that the
reliance upon s.164 was an essential link in the path of the
Tribunal's reasoning that Mr Brown was acting as agent of the
company. It was, in my view, quite unnecessary to do so to fix
the Housing Service with vicarious liability.
The intention of the legislature apparent in the Act is to
make an employer or principal vicariously liable for the
contravention of the Act by its workers or agents, s.132. The
factors which limit that liability are that the unlawful
-- 32 of 36 --
31
conduct must occur in the course of work or while acting as an
agent and, by way of defence, if the respondent proves that it
took reasonable steps to prevent the worker or agent
contravening the Act. For the Housing Service to be found
vicariously liable there must be a finding that the
contravention occurred while Mr Brown was acting as agent. The
uncontroverted facts make clear that Mr Brown attended at the
Housing Service and made contact with Ms Moore or made
telephone calls to her in his capacity as treasurer and
director of the Housing Service and thus, as agent of the
Housing Service. The unlawful conduct took place on those
occasions clearly when Mr Brown was acting as agent. There was
no evidence or submission that the exculpatory provisions of
s.132(2) applied.
What then is the appropriate course which this Court
should take? There is power to remit the matter to the
Tribunal for further consideration in the light of these
reasons on the question of agency. That would be productive of
more cost and delay. The complaint was made on 27 August 1992
to the Commission, conciliation took place unsuccessfully and
in November 1993 the complainant requested the Commission to
refer the complaint to the Tribunal. The hearing did not take
place until May 1995. Any explanation for the delay is not to
the point. These events occurred many years ago and of their
nature it is preferable for all concerned that they not be
prolonged any further. The powers of this court on the hearing
of an appeal as expressed in s.218 are wide. The court may
-- 33 of 36 --
32
affirm, vary or quash the order or decision appealed against or
substitute or make in addition any order or decision that
should have made in the first instance or remit the matter to
the Tribunal for further hearing or consideration or for re-
hearing.
In my view there was ample evidence upon which the
Tribunal could have found that Mr Brown was agent of the
Housing Service and was acting as agent when the unlawful
conduct occurred and, indeed, the Tribunal did make such
findings of fact but in error attached them to s.164 of the
Corporations Law. In my view the appropriate course is to
affirm the order made by the Tribunal against the Housing
Service.
Ground one of the appeal was abandoned and ground two was
essentially successful. An order for costs might in the
ordinary course be made against the respondent. The Tribunal
was not led into error by any conduct or submission on the part
of the respondent and it seems appropriate that an indemnity
certificate pursuant to the Appeal Costs Fund Act 1973, if such
an application is made, should issue. The Tribunal is a
"court" within the meaning of s.4 of that Act being "any board,
other body or person from whose decision there is an appeal to
a superior court on a question of law" and s.15 of the Act
otherwise applies.
(ii) The Doyle Appeal
Mr Riley was the president and a director of the Housing
Service. There is no submission or ground of appeal that there
-- 34 of 36 --
33
was any error in the Tribunal's finding that Mr Riley engaged
in conduct which contravened the Act in relation to Ms Doyle
after 30 June 1992. The Tribunal's reasons for making the
Housing Service vicariously liable for Mr Riley's conduct
parallel those in the Moore matter. The Tribunal found that
whenever Mr Riley attended at the office of the Housing Service
he transacted the business of the Service. It was then that
the unlawful conduct occurred. The Tribunal concluded that
that conduct was governed by s.164 of the Corporations Law. It
is not necessary for me to canvass that again. The Tribunal
clearly fell into error in so doing. However the finding that
the "sexual harassment of Ms Doyle by Mr Riley occurred while
he was performing his duties as president and director" is a
clearer expression of agency than occurred in the Brown matter
and I have no hesitation, whilst recognising the error, in
affirming the order of the Tribunal against the Housing
Service. If the application is made, again it is appropriate
that an indemnity certificate pursuant to the Appeals Costs
Fund Act issue in favour of the respondent.
Orders
The orders are
1. The appeal by Norman Brown in Appeal No 170 of 1995 be
dismissed and the order of the Tribunal affirmed.
2. Further order that the appellant Brown pay the respondent
Moore's costs of and incidental to the appeal to be taxed.
3. The appeal by the Black Community Housing Service (Qld)
Ltd in appeal No 174 of 1995 against Doyle be dismissed
-- 35 of 36 --
34
and the order of the Tribunal be affirmed.
4. The appeal by the Black Community Housing Service (Qld)
Ltd in appeal No 175 of 1995 against Moore be dismissed
and the order of the Tribunal be affirmed.
5. The respondents Doyle and Moore pay the appellant's costs
of and incidental to the appeal and order that an
indemnity certificate pursuant to the Appeals Costs Fund
Act 1973 issue in favour of the respondents Doyle and
Moore.
-- 36 of 36 --
Official source: https://www.sclqld.org.au/caselaw/QSC/1996/120