In the matter of Asbestos Injuries Compensation Fund Limited (and WorkCover Queensland) [2024] NSWSC 1163

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Asbestos Injuries Compensation Fund Limited (and WorkCover Queensland) [2024] NSWSC 1163 Hearing dates: 30, 31 July 2024 Date of orders: 13 September 2024 Decision date: 13 September 2024 Jurisdiction: Equity - Expedition List Before: Rees J Decision: Judicial advice given. Catchwords: JUDICIAL ADVICE – s 55, James Hardie (Former Subsidiaries) Winding Up Act 2005 (NSW) – s 63, Trustee Act 1925 (NSW) – principles at [5]-[10] – James Hardie establishes trust fund to pay asbestos claims against former subsidiary, Amaca, over 40 years – trust deed excludes payment of claims to the extent that claims have been recovered under a "Worker's Compensation Scheme or Policy" – workers employed by third-party employers – workers obtain judgments against Amaca for dust diseases –WorkCover Queensland asserts charge over damages to recover workers' compensation paid – whether trustee justified in not paying damages in light of exclusion and asserted charge. INTERPRETATION – complex "tripartite arrangement" comprising statute, contract and trust deed – principles at [14]-[26] – to be read together harmoniously – primacy of statute – definitions within definitions – construe the documents as a whole. TRUSTEES – powers – absolute discretion – large number of potential beneficiaries of trust – principles at [140]-[142] – mechanisms in tripartite arrangement to ensure sustainability and longevity of trust fund to meet future asbestos claims – trustee only has power to pay gap between workers' compensation paid and damages awarded – justified in not paying gap given assertion of charge. WORDS AND PHRASES – "recovered" at [120]. Legislation Cited: James Hardie (Civil Liability) Act 2005 (NSW), ss 21(2), 22 James Hardie (Civil Penalty Compensation Release) Act (NSW) 2005 James Hardie Former Subsidiaries (Winding Up and Administration) Act 2005 (NSW), ss 3, 4, 5(1), 7(1), 20(1), 23, 24, 28, 31(1), 32, 34, 35, 36, 43(1), 52, 55 James Hardie Former Subsidiaries (Winding Up and Administration) Regulation 2007 (NSW), reg 4(1) Jurisdiction of Courts (Cross-Vesting) Act 1987 (Cth) s 5(2) Special Commissions of Inquiry Act 1983 (NSW) Trustee Act 1925 (NSW), s 63 Workers' Compensation (Dust Diseases) Act 1942 (NSW), s 8E Workers' Compensation and Rehabilitation Act 2003 (Qld) s 207B, 381, 401, 424 Cases Cited: Asbestos Injuries Compensation Fund Ltd v Solicitor-General (NSW) [2011] NSWSC 97 BCC Trade Credit Pty Ltd v Thera Agri Capital No 2 Pty Ltd [2023] NSWCA 20 Bluehaven Transport Pty Ltd v Deputy Commissioner of Taxation (2000) 157 FLR 26 Chapmans Ltd v Australian Stock Exchange Limited (1996) 67 FCR 402 Cherry v Steele-Park (2017) 96 NSWLR 548; [2017] NSWCA 295 Cinema Plus Ltd (Administrators Appointed) v Australia and New Zealand Banking Group Ltd [2000] NSWCA 195 Cowan v Scargill [1984] 2 All ER 750 Davis v Amaca Pty Ltd [2024] NSWDDT 2 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544 Golden Mile Property Investments Pty Ltd (In Liq) v Cudgegong Australia Pty Ltd [2016] NSWCA 224 Gritzman v McRae [2022] NSWSC 745 Haines v Bendall (1991) 172 CLR 60 Haines v Welch (1868) L R 4 CP 91 Harris (as Administratrix of the Estate of Hollins) v Commercial Minerals Ltd (1996) 186 CLR 1 Hartigan Nominees Pty Ltd v Rydge (1992) 29 NSWLR 405 Hoyt's Pty Ltd v Spencer (1919) 27 CLR 133 In re Wedgwood Coal and Iron Company (1877) 7 Ch D 75 James Hardie & Co Pty Ltd v Newton (1997) 42 NSWLR 729 John Shaw v Richard Jeffrey (1860) 15 ER 162 Kelly v R (2004) 218 CLR 216; [2004] HCA 12 Laundy Hotels (Quarry) Pty Ltd v Dyco Hotels Pty Ltd [2023] HCA 6 Macedonian Orthodox Community Church St Petka Inc v His Eminence Petar The Diocesan Bishop of Macedonian Orthodox Diocese of Australia and New Zealand (2008) 237 CLR 66; [2008] HCA 42 Northern Sydney Local Health District v Amaca Pty Ltd (under NSW administered winding up) [2017] NSWCA 251 Owies v JJE Nominees Pty Ltd [2022] VSCA 142 Re Application of Doolan (in his capacity as an Executor of the Estate of the Late John Andrew Barkus) [2023] NSWSC 320 Re Hay's Settlement Trusts [1981] 3 All ER 786 Re Application by NGS Super Pty Ltd (as trustee for NGS Super) [2021] NSWSC 1694 Segelov v Ernst & Young Services Pty Ltd (2015) 89 NSWLR 431; [2015] NSWCA 156 Smith v Chadwick (1882) 20 Ch D 27 State of Queensland v Seltsam (2019) 2 QR 495 Talifero v Asbestos Injuries Compensation Fund Ltd [2018] NSWCA 227 Target Holdings Ltd v Redferns [1996] AC 421 Vincent Nominees Pty Ltd v Western Australian Planning Commission (2012) 187 LEGRA 303; [2012] WASC 28 Whishaw v Stephens; Re Gulbenkian's Settlement Trusts [1970] AC 508 Youyang Pty Ltd v Minter Ellison Morris Fletcher (2003) 212 CLR 484 YZ Finance Company Pty Ltd v Cummings (1994) 109 CLR 395 Texts Cited: JD Heydon and MJ Leeming, Jacobs' Law of Trusts (8th ed, 2016, LexisNexis) Macquarie Dictionary (9th ed, 20224, Pan Macmillan, 2024) Perry Herzfeld and Thomas Prince, Interpretation (2nd ed, 2020, Lawbook Co) Category: Principal judgment Parties: Asbestos Injuries Compensation Fund Limited (Plaintiff) Attorney-General (NSW) (Intervenor) Eric Coveney (First Interested Party) Barry Davis (Second Interested Party) WorkCover Queensland (Third Interested Party) James Hardie 117 Pty Ltd (Fourth Interested Party) Representation: Counsel: P Brereton SC/C Tran (Plaintiff) D Hume (Intervenor) B Walker SC/A Giurtalis (First Interested Party) S Robertson SC/S Tzouganatos (Second Interested Party) D Campbell KC/K Holyoak (Third Interested Party) J Lockhart SC/M Gvozdenovic (Fourth Interested Party)