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Federal Court of Australia · [2025] FCA 1190

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Bilal v EML NSW Limited

Bilal v EML NSW Limited [2025] FCA 1190 is a Federal Court interlocutory decision about defective pleadings and the limits of summary dismissal. Mr Bilal sued EML NSW Limited and two case managers over alleged whistleblower contraventions under the Corporations Act and alleged false or misleading representations about workplace rights under section 345 of the Fair Work Act. The Court struck out the statement of claim in full because it did not properly plead material facts and included significant logical leaps, but it refused to summarily dismiss the proceeding. Instead, the applicant was given an opportunity to replead, with the Court stressing that a defective pleading is not necessarily a hopeless case.

Federal Court of AustraliaNot recorded

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Decision snapshot

Facts

The dispute

Ali Bilal worked for Ampol Australia Petroleum Pty Ltd from 10 July 2023 until 6 September 2023, when his employment ended. On 2 November 2023, after that employment had finished, he applied for workers compensation and claimed he had suffered psychological injury during his eight weeks of employment. EML NSW Limited was responsible for managing his entitlements under the New South Wales workers compensation system and acted as an agent of Insurance and Care NSW and the Workers Compensation Nominal Insurer. Two EML employees, Hayley Taylor and Conor Stewart, were the case managers responsible for handling Mr Bilal’s workers compensation entitlements during different periods between 30 October 2023 and 7 February 2024. On 23 April 2025, Mr Bilal commenced Federal Court proceedings against EML, Ms Taylor and Mr Stewart. He alleged that each respondent had contravened the whistleblower protections in Part 9.4AAA of the Corporations Act 2001 (Cth). He also alleged that each respondent had contravened section 345 of the Fair Work Act 2009 (Cth), which prohibits knowingly or recklessly making false or misleading representations about workplace rights. He further tried to allege accessorial liability against the two individual respondents. The respondents did not wait for a final hearing. By interlocutory application filed on 16 July 2025, they asked the Court to summarily dismiss the whole proceeding, or at least dismiss parts of it, under the Federal Court’s summary disposition powers. Alternatively, they sought to have the statement of claim struck out in whole or in part. Their arguments, as summarised by the judge, were that the whistleblower allegations lacked specificity and material facts, that the pleaded connection between any alleged disclosure and the handling of the workers compensation claim was not properly made out, that many of the alleged Fair Work representations were not borne out by the documents or were not false or misleading or did not concern workplace rights, and that the accessorial case against the individual respondents did not plead the necessary mental element. The Court also noted that Mr Bilal had separate whistleblower proceedings against Ampol and related entities, with overlapping factual subject matter.

Issue

The legal question

The legal issue was whether Mr Bilal's proceeding should be ended at an interlocutory stage, and if so on what basis. The respondents sought summary dismissal under the Federal Court's summary disposition powers, or alternatively strike-out of the statement of claim. That required the Court to distinguish between two different questions: whether the pleading failed to state the material facts necessary for the alleged whistleblower, Fair Work and accessorial liability claims, and whether the proceeding itself had no reasonable prospect of success. The Court also had to consider whether the respondents' application improperly depended on resolving contested factual issues in a mini-trial.

Outcome

Decision

Shariff J ordered that the statement of claim filed on 23 April 2025 be struck out in its entirety. The Court then set a timetable for Mr Bilal to serve a proposed amended statement of claim, for the respondents to state whether they consented to that amendment, and for any application for leave to amend if consent was withheld. A further case management hearing was listed for 20 November 2025. The Court accepted that the pleading was defective, including in relation to the whistleblower claims, the section 345 Fair Work claims and the accessorial liability allegations against the individual respondents. However, the Court was not satisfied that the claims should be summarily dismissed in whole or in part, because aspects of the respondents' arguments would have required contested factual issues to be determined on an interlocutory application.

Practical impact

Commercial note

If your business is sued over whistleblower protections, workplace rights representations or alleged personal involvement by managers, start with two separate questions. First, does the pleading clearly identify the disclosure, representation, decision-maker and facts said to satisfy each legal element? Second, even if the pleading is poor, is the claim truly incapable of succeeding, or does it still raise factual issues that need a trial? This case shows that courts may strike out a defective pleading but still allow the claimant to try again. Businesses should therefore preserve documents, map the chronology, identify who knew what and when, and avoid assuming that a pleading victory ends the dispute. If considering an interlocutory application, be precise about whether you seek strike-out, summary dismissal, or both, and make sure the application does not depend on contested factual findings that are better left for trial.

Snapshot

Bilal v EML NSW Limited [2025] FCA 1190 is a Federal Court procedural decision about pleadings, summary dismissal and strike-out. The applicant alleged contraventions of the Corporations Act whistleblower protections and section 345 of the Fair Work Act in connection with the handling of his workers compensation entitlements after his employment with Ampol ended.

The Court struck out the statement of claim in full, but it did not summarily dismiss the proceeding. Instead, the applicant was given an opportunity to put forward an amended pleading. That makes this a useful case for businesses because it explains, in practical terms, the difference between a badly pleaded case and a case that is so weak it should be ended immediately.

The story

Mr Bilal worked for Ampol Australia Petroleum Pty Ltd between 10 July 2023 and 6 September 2023. After his employment ended, he applied for workers compensation on 2 November 2023, alleging psychological injury arising during that short period of employment.

EML NSW Limited was responsible for managing his entitlements under the New South Wales workers compensation system. The judgment says EML acted as an agent of Insurance and Care NSW and the Workers Compensation Nominal Insurer. Two EML employees, Hayley Taylor and Conor Stewart, were the case managers responsible for handling Mr Bilal's entitlements during different periods from late October 2023 to early February 2024.

In April 2025, Mr Bilal sued EML and those two case managers in the Federal Court. He alleged that each of them had contravened the whistleblower protections in Part 9.4AAA of the Corporations Act. He also alleged contraventions of section 345 of the Fair Work Act, which deals with knowingly or recklessly making false or misleading representations about workplace rights. He further sought to allege accessorial liability against the individual respondents.

The respondents answered with an interlocutory application. Their primary position was that the whole proceeding, or at least parts of it, should be summarily dismissed. In the alternative, they sought strike-out of the statement of claim. The judge summarised their arguments in some detail. On the whistleblower case, they said the alleged disclosures lacked specificity, failed to identify material facts and were expressed in non-exhaustive terms. They also argued that Mr Bilal had no reasonable prospect of proving that EML or its employees believed or suspected he had made, might make, proposed to make, or could make the alleged disclosures, and that any such belief or suspicion actuated the handling of his workers compensation claim.

On the Fair Work claims, the respondents argued that some alleged representations were not actually made in the documents relied on, that some were not false or misleading, that some did not concern workplace rights, and that the pleading did not allege material facts from which knowledge or recklessness could be inferred. They also raised an abuse of process argument connected to prior Personal Injury Commission proceedings. On the accessorial liability case against Ms Taylor and Mr Stewart, they argued that the pleading did not articulate the essential elements of an accessorial case.

The Court also noted that Mr Bilal had separate Federal Court whistleblower proceedings against Ampol and related entities, and that many aspects of the claims against EML and its employees appeared to rely on the same or similar factual substratum concerning alleged qualifying disclosures or proposed disclosures.

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What the court had to decide

The key issue was procedural. The Court was not deciding whether the pleaded whistleblower allegations or Fair Work allegations were true. It had to decide whether the statement of claim was so defective that it should be struck out, and whether the proceeding itself should be summarily dismissed because it had no reasonable prospect of success.

The judgment spends significant time explaining that these are different questions. A strike-out application is directed to the adequacy of the pleading. It asks whether the statement of claim sets out the material facts and a legally recognisable cause of action. For that exercise, the Court is concerned with the form and legal sufficiency of the pleading. A summary dismissal application is broader and more serious. It asks whether the proceeding should be ended without a trial because there is no reasonable prospect of success. That can involve looking beyond the pleading, but the Court still must be careful not to conduct a mini-trial on disputed facts.

Shariff J referred to the established principle that summary dismissal must be approached with caution. The reasons also emphasise that if summary dismissal is sought, it should be a clean kill. In other words, the Court should not be pushed into deciding contested factual issues on incomplete material just to resolve an interlocutory application. The judge accepted that some of the respondents' arguments moved into factual minutiae about whether Mr Bilal's case could actually be proved. Mr Bilal objected to that course, and the judge accepted that parts of the respondents' argument sought a mini-trial on the facts.

The Court also made broader observations about case management. It noted the burden that interlocutory applications can place on parties, the Court and other litigants, and referred to the overarching purpose of resolving disputes justly, quickly, inexpensively and efficiently. The reasons recognise that respondents faced with serious but defective allegations may feel they have little choice but to seek strike-out or summary dismissal. But the Court also stressed that these are forensic choices, and that parties should think carefully about whether interlocutory skirmishing is the best path in a given case.

What the court decided

The Court ordered that the statement of claim filed on 23 April 2025 be struck out in its entirety. It then set a timetable for the next steps. Mr Bilal was required to serve a proposed amended statement of claim by 6 November 2025. The respondents were required to say by 13 November 2025 whether they consented or opposed the filing of that proposed amended pleading. If they opposed it, Mr Bilal was required to apply for leave to amend by 18 November 2025. The matter was listed for case management on 20 November 2025.

The reasons make clear that the Court was satisfied the statement of claim was defective in form and substance. The catchwords say the whistleblower claims and misrepresentation claims did not plead material facts as to essential elements, that the pleadings involved significant logical leaps, and that the accessorial liability allegations against the second and third respondents failed to plead the requisite mental element of intention or knowledge of the essential elements and ingredients of the primary contravention.

But the Court did not grant summary dismissal. Shariff J said the respondents had satisfied the Court that the statement of claim should be struck out, but had not satisfied the Court that the claims should be summarily dismissed in whole or in part. A central reason was that aspects of the respondents' contentions required an assessment of contested facts. The judge considered that parts of the application would have put the Court in the invidious position of deciding facts on an interlocutory application while also trying to ensure fairness to a self-represented litigant.

So the outcome was a procedural reset, not a final defeat. The applicant lost his existing pleading, but kept the opportunity to try again with a proposed amended statement of claim.

How businesses should read it

Businesses should read this case as a reminder that serious statutory claims must be pleaded with precision. If a claimant alleges whistleblower retaliation, false or misleading statements about workplace rights, or personal involvement by managers, the Court expects the pleading to identify the actual disclosure, the actual representation, the relevant workplace right, the respondent said to be responsible, and the material facts supporting each legal element. General assertions, non-exhaustive allegations and logical leaps are vulnerable to strike-out.

At the same time, businesses should not overread a strike-out as a final victory. Courts often allow repleading, especially where the problem is the way the case has been framed rather than a concluded finding that the claim is impossible. That means a respondent should prepare for both procedural and substantive defence work. It is not enough to point out defects in the pleading if the dispute may continue in amended form.

This case is also a warning about litigation strategy. If a respondent seeks summary dismissal, the application should be carefully framed. The Court's comments show that summary dismissal is not the right vehicle if success depends on resolving contested factual disputes on incomplete material. In those circumstances, a strike-out application, a request for better pleading, or a push toward a prompt final hearing may be more effective.

For employers and claims handlers, the operational lesson is straightforward. Preserve documents early. Keep a clear chronology. Identify who made each decision and what information they had at the time. Review letters, emails, file notes and claim communications for statements about rights, entitlements or reasons for decisions. If individual employees are named, check whether the claimant has actually pleaded the mental element needed for accessorial liability. If external administrators, insurers or agents are involved, make sure responsibilities and communications are clearly documented so the business can explain who knew what and when.

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Documents and conduct to review in practice

Although this case arose in a workers compensation setting, the same practical review steps apply across many business disputes involving employee rights and statutory protections. If a complaint or claim is made, gather the communications that may later be characterised as disclosures, responses, representations or adverse conduct. That usually includes emails, letters, claim forms, file notes, internal escalation records, meeting notes and any template communications used by HR, claims staff or managers.

Then test the chronology. In whistleblower-style allegations, timing often matters because the claimant may try to link a disclosure or proposed disclosure to later treatment. In workplace rights representation cases, wording matters because the issue may turn on what was actually said in a document and whether it concerned a workplace right at all. In accessorial liability allegations, knowledge and involvement matter because a claimant must do more than simply name employees who were part of the process.

The Court's reasoning also shows the importance of disciplined pleading and disciplined response. If your business receives a broad or confusing claim, ask whether the claimant has identified the material facts needed to let you know the case you have to meet. But if you are the respondent, do not let the procedural fight become more expensive and time-consuming than the underlying dispute. The Court expressly discussed the burden of interlocutory applications and the need to keep the overarching purpose in view.

Dates and status

The judgment was delivered by Shariff J in the Federal Court of Australia on 25 September 2025. The applicant appeared in person. The respondents were represented by counsel and solicitors. The orders show that the case remained on foot after the ruling, with a timetable for a proposed amended statement of claim and a further case management hearing.

That means the decision should be read as a procedural waypoint. It tells businesses how the Court approached the pleading and summary dismissal issues at that stage of the litigation. It does not provide a final answer on liability, compensation or the ultimate merits of the applicant's allegations.

Source notes

This page is based on the Federal Court judgment in Bilal v EML NSW Limited [2025] FCA 1190, including the orders, catchwords and introductory reasons. Those materials clearly establish the parties, the nature of the claims, the respondents' interlocutory application, the Court's explanation of the strike-out versus summary dismissal distinction, and the orders made.

Because the reproduced reasons are truncated, this page does not go beyond what is clearly supported about the later detailed analysis of each pleaded allegation. The key public point remains clear: the statement of claim was struck out in full, but the proceeding was not summarily dismissed and the applicant was given an opportunity to replead.

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