A hotel noise complaint, a 'sham' hearing and $1.44 million

Adam Elisha had worked for Vision Australia since 2006 as an adaptive technology consultant, setting up technology for people with vision impairment. In March 2015, staying at a country hotel for work, he rang reception at around 12.30am to complain about noise outside his room. The hotel's proprietor later alleged he had been aggressive and intimidating.

Vision Australia stood him down and gave him a letter setting out the hotel allegations, which he denied at a disciplinary meeting. But the managers deciding his fate had also been told by his own manager, with whom his relationship was strained, that he had a history of aggression. That was never put to him. He was dismissed for serious misconduct, without notice pay, and was later diagnosed with a major depressive disorder. He settled an unfair dismissal claim for $27,248.68, the most the law allowed.

He then sued for breach of contract. The trial judge found he had not been aggressive at the hotel, that the claimed history of aggression 'lacked any proper foundation', and that the process was 'nothing short of a sham and a disgrace'. He awarded $1,442,404.50. The Victorian Court of Appeal set that aside, holding that damages for psychiatric injury were not available and were too remote.

The High Court restored the award, six judges to one. His contract said his conditions would be in accordance with Vision Australia's policies and procedures, so the disciplinary policy, which promised a written outline of the allegations before any meeting, bound the employer. The old English case of Addis v Gramophone Co Ltd did not bar damages for psychiatric injury, and a serious psychiatric injury from a breach like this was a serious possibility the parties should have contemplated.