A senior manager has won a court action against Johns Lyng Insurance Building Solutions – a building services firm that does extensive work with the insurance industry – over misleading representations concerning her salary prospects.

GM Svetlana Rakic was awarded more than $300,000 by the Federal Court.

During the recruitment process Ms Rakic was offered a base salary about $100,000 below her previous employer’s pay rate.

However, she was told she would receive a 2.5% share in Melbourne-based Johns Lyng’s profits, which would make up for the loss of income. Ms Rakic was unaware revenue in the 2013 financial year was likely to be millions of dollars below projected sales and profits indicated to her.

She contended the business engaged in misleading and deceptive conduct in breach of sections 18 and 31 of the Australian Consumer Law. She sought damages under section 236.

The court found two misleading representations were conveyed to Ms Rakic: that profits and sales in 2013 were likely to meet or exceed those in 2011 and 2012; and that it was probable that in 2013, for at least the next year, Johns Lyng would remain as profitable as in the previous two years.

Ms Rakic’s lawyer, McDonald Murholme Senior Associate Trent Hancock, says it is “a great result after long and arduous proceedings”.

“The loss Ms Rakic sustained as a result of the misleading representations was considerable, and was assessed by [the judge] as being in excess of $300,000,” Mr Hancock said.

“[The judge] held that there were indicators of deteriorating financial performance at the time the representations were made. In fact… not only was financial distress foreseeable, there was evidence that it was actually foreseen by the company.”