Qantas to pursue defecting executive case in Singapore

Qantas (QF, Sydney Kingsford Smith) has vowed to pursue its case in Singapore against former executive Nick Rohrlach for defecting to rival Virgin Australia (VA, Brisbane Int’l). This comes after the NSW Supreme Court last week rejected with costs the flag carrier’s attempt to hear the case in Australia, and not in Singapore, where Rohrlach signed a contract with Qantas in 2015 that included an exclusive jurisdiction clause. “The decision to hear this case in Singapore makes no sense, given all parties are in NSW and Mr. Rohrlach’s new job is in Sydney,” a Qantas spokeswoman told the Financial Review. “Wherever the case is heard, we will defend it strenuously,” she said. Rohrlach, the former Co-Chief Executive Officer of Jetstar Japan, accepted a senior role at Qantas Loyalty in October but shortly after took the chief executive role at Virgin’s Velocity Frequent Flyer. Virgin wants him to start in May, but Qantas intends to enforce a six-month gardening leave clause that would postpone his commencement until September 18 because it is worried he will exploit Qantas’ trade secrets in his new job. NSW Supreme Court Justice David Hammerschlag decided to enforce the exclusive jurisdiction clause last week. Appeal judges Tom Bathurst, Andrew Bell, and Paul Brereton upheld the decision later on in the week. “The primary judge did not err …. There was no reason to suppose that the parties intended that the jurisdiction clause would cease to apply in the event that Mr. Rohrlach was relocated but continued to be employed under the terms of the Employment Agreement,” their judgement said. Qantas had argued that the case should be held in Australia because subsequent agreements nullified another clause in the contract to only allow legal action to take place in Singapore. It also argued holding it in Australia would be more convenient to all parties. However, Justice Hammerschlag said Qantas only “faintly” argued its case and said its submission was “unsustainable”. “The choice of jurisdiction is clear,” Justice Hammerschlag said. “There is no challenge to the jurisdiction of Singapore … that the proceedings have to be conducted remotely and that the parties will be separated from their Australian lawyers are matters of mere inconvenience. Remotely conducted proceedings have been the order of the day for more than a year now.” The judge ordered Qantas to pay Rohrlach and Virgin’s costs. Virgin said it was pleased with the judgement and would prepare for the final hearing.