Gairns v Pro Music Pty Ltd
[2024] QDC 118 · Rosengren DCJ
Robert Gairns, aged 50, had worked for a musical instruments distributor for many years as its internal sales supervisor. In February 2019 the managing director called him into a meeting in the open plan office and, without warning, told him he was being demoted and his pay cut by several thousand dollars. The director raised his voice and gave no real explanation, and other staff could overhear what happened. The company already knew Mr Gairns was an emotional person prone to stress and anxiety, and he had recently been visibly distressed at work. The judge found the company breached its duty of care by handling the demotion so poorly, and that this caused an aggravation of his existing anxiety. The court accepted he could now only do part-time, low-stress work and was effectively limited to the music industry. The judge awarded him a total of $395,767 in damages, the largest part being for past loss of income. After deducting the WorkCover refund, the net amount payable was $301,197.
Incident & injury
Psychiatric injury suffered following a meeting with the managing director during which the plaintiff was demoted with a salary reduction, conducted in an open plan office where it could be overheard by other staff
Read the findings as text
- Known vulnerability. No notice to respond.
- Breach of duty. Demotion handled poorly.
- $395,767 awarded. Net $301,197 after refund.
- Body regions
- Psychiatric
- Diagnoses
- Aggravation of pre-existing anxiety disorder, Exacerbation of pre-existing panic disorder (resolved)
- Incident date
- February 2019
- Location
- Carole Park, Queensland
Quick facts
- Date of judgment
- 2 August 2024
- Claim type
- WCRA Common Law
- Proceeding
- Trial
- Plaintiff outcome
- Successful
- Plaintiff age at injury
- 50
- Occupation
- Internal sales supervisor Manager
- Liability
- Disputed
- ISV assessed
- 3 · Item 13 (minor mental disorder), WCRR Schedule 9
- Total damages
- $395,767
Outcome
The court found the employer breached its duty of care by demoting a long-term employee with a known emotional vulnerability without proper notice or opportunity to respond, in an open plan office where the meeting could be overheard. Judgment was entered for the plaintiff in the sum of $395,767 (net damages $301,197 after the WorkCover refund).
Defendant
1 Pro Music Pty Ltd
Employer
- Apportionment
- 100%
- Judgment against this defendant
- $395,767
- WorkCover refund
- $94,570
Heads of damage
| General damages | $4,350 |
|---|---|
| Past economic loss | $186,000 |
| Interest on past EL | $9,820 |
| Past superannuation | $18,600 |
| Future loss of economic capacity | $130,000 |
| Future superannuation | $14,690 |
| Past special damages (plaintiff) | $2,500 |
| Past special damages (WorkCover) | $4,779 |
| Future special damages | $5,000 |
| Fox v Wood | $20,028 |
| Subtotal before refunds | $395,767 |
Key issues
Gairns v Pro Music Pty Ltd [2024] QDC 118
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Learn more about WorkCover common law claims and psychological injury claims in Queensland.