Groundbreaking ruling on mutual trust and confidence

A NSW Supreme Court of Appeal bench of five judges recently delivered a groundbreaking decision on implied terms of mutual trust and confidence. In Shaw v State of New South Wales [2012] NSWCA 102, a unanimous court upheld an appeal which followed the District Court judge striking out the mutual trust and confidence claim on the basis that it wouldn't lead to damages.

Facts

Each appellant was, in 1999, appointed an "officer" (as defined by the Teaching Service Act 1980) of the Education Teaching Service of New South Wales. Each appointment was made under that Act and, as a result, each appellant was employed by the Crown in right of New South Wales. Each was also subject to the Teaching Service Regulation 2007.