A WRONGFUL dismissal claim by Andrew Kluck against southern Queensland agribusiness Carpendale Agri has suffered a setback, with the Federal Court rejecting an interlocutory bid for his reinstatement and for his family to remain at the property’s homestead.

Mr Kluck launched proceedings in the Federal Court’s Fair Work division in March, with a ruling on the interlocutory application delivered last week.

He held the role of executive director and later general manager – farms and development of Carpendale Agri until his employment was terminated on February 20.

He joined the company after he sold the business, then known as Carpendale Farms, in 2022 to Brisbane-based investment firm Laguna Bay.

Mr Kluck ran the business, north of Goondiwindi, from 2007, overseeing around 20,000ha of dryland cropping, a grain-receival site with storage for more than 180,000 tonnes, and a large transport and logistics fleet.

As part of the sale agreement, Mr Kluck signed an employment deal with Carpendale Agri that allowed him to live in the property’s homestead, use two vehicles, and receive a ‘Manager Redeemable Preference Share’ entitling him to a payout if the business was sold above its internal rate of return.

He resides at the homestead with his wife and two sons.

In this application to the Federal Court, Mr Kluck sought for his employment to be reinstated and for continued access to the homestead and vehicles.

Justice Amelia Wheatley dismissed the application, finding that Mr Kluck’s instatement would be untenable considering the relationship breakdown between the two parties and that another person had been employed in his former role.

Justice Wheatley also concluded that the “inevitable consequence” of the business sale was that the Kluck family would need to vacate the homestead at some point.

Hope for future trial

Justice Wheatley found there was a “prima facie case” to support Mr Kluck’s claim that his termination was invalid, meaning there was sufficient evidence for the matter to proceed through the courts.

Mr Kluck’s claim centres on what he argues was the real, and invalid, reason for his dismissal, and alleges that demands for him to leave the property and return vehicles breached an “implied term of good faith and fair dealing” in his employment agreement.

He has submitted that his role with the company was terminated to avoid Carpendale having to pay him a sum as part of the ‘Manager Redeemable Preference Share’.

During the hearing, both parties confirmed that Carpendale representatives entered early talks with Regatta Capital Management Australia Pty Ltd about a possible sale of the business around October last year.

Mr Kluck claimed the sale was for about $100 million, which entitled him to a share of between $5M to $8M, while Carpendale submitted that the offer was lower at $87.8M.

His engagement was terminated in February, following what Carpendale claims was more than a year of concerns relating to his “conduct, performance, leadership, and compliance with workplace health and safety obligations”.

Carpendale submitted that Mr Kluck was a “good farmer” but did not have the skills required to be a “good leader or manager”.

In response, Mr Kluck disagreed, arguing “that there were no performance issues or concerns regarding his work”.

Carpendale has refuted claims that Mr Kluck was terminated to avoid paying him a share of funds received upon a possible business sale, calling it “mere speculation”.

The matter has been listed for a case-management meeting, with a date yet to be finalised.

Solicitor representing the applicant, Mills Oakley partner – commercial disputes and insolvency Dale Cliff confirmed that Mr Kluck would be progressing the claim against Carpendale.

Carpendale sale

Laguna Bay offered the Carpendale Agri holding to market in August last year with hopes of raising more than $90M.

Agents recently confirmed that two properties in the aggregation, Tingan and Nomby, had been sold to local families.

Tingin comprised 1948ha of dryland cropping, while Nomby covered 2167ha and came with development approval for a 20,000-head feedlot, along with access to 120 megalitres of licensed bore water and 35 megalitres of groundwater.

LAWD agents Danny Thomas and Jaclyn Hope and Nutrien Harcourts Goondiwindi agent Andrew Jakins said Laguna Bay will sell the balance of the portfolio as a whole, or as four individual properties.

A dispersal auction also closed last week for a range of Carpendale’s machinery and equipment.

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