Last Friday there was judgment for Bruce Guthrie in Guthrie v News Limited. It was a very high profile case, at least in Victoria. It is a long and quite complicated decision.
FACTS
After some negotiations, [5] – [6], News Limited (“News”), engaged Bruce Guthrie (“Guthrie”), as editor in chief of the Herald Sun, commencing 19 February 2007. From March 2007 differences emerged between Peter Blunden (“Blunden”), the managing director (and previous editor) and Guthrie. In August and October 2008 there were significant arguments between Guthrie and Blunden. On 11 October 2008 John Hartigan, the chairman and CEO of News, came to the view that the working relations between these two senior executives had irretrievably broken down and decided to terminate Guthrie from his position. He did so on 10 November. Hartigan sought to keep Guthrie within News, suggesting a position in Sydney. Guthrie declined stating that he had just purchased a house in Melbourne, was selling his Sydney home and his eldest daughter was doing her final year of school.
ISSUES
Kaye J set out, at [18], the issues for determination as:
(1) Did the contract of service between the plaintiff and the defendant entitle the defendant to terminate the plaintiff’s employment in November 2008, before the expiration of the three year period of service set by the contract?
(2) If the contract of service did contain a provision entitling the defendant to terminate the plaintiff’s contract of service in November 2008 –
(a) was there an implied term of the contract that the defendant would act in good faith in exercising that power under the contract;
(b) if so, did the defendant breach such obligation of good faith in terminating the plaintiff’s employment with it?
(3) If the defendant breached the contract of service by terminating the plaintiff’s employment in November 2008, is the plaintiff entitled to make a claim for damages, arising from such breach, comprising the loss of opportunity by him, in February 2010, to obtain a renewal of that contract of service?
(4) If the plaintiff is entitled to maintain such a claim for loss and damage, did the plaintiff lose such an opportunity of renewal of his contract of service, by reason of the termination of his employment in November 2008, and, if so, what is the value of that lost chance to the plaintiff?
(5) Alternatively, is the plaintiff entitled to claim the additional payment asserted by him as the alternative basis by which he claims loss and damage?
(6) If the plaintiff is entitled to claim the termination payment, what is the amount of that payment?
DECISION
His Honour undertook a very detailed analysis of the evidence and counsel’s submissions upon it, [75] – [165]. His Honour’s findings with respect to News’ witnesses were, on material issues, quite negative.
LOSS OF OPPORTUNITY
Kaye J found there were conflicting lines of authority regarding Read the rest of this entry »