WESTERN SYDNEY REGIONAL ORGANISATION OF COUNCILS GROUP APPRENTICES vSTATRONA PTY LTD t/as RECYCLE AUTO ELECTRICAL; COMMERCIAL UNIONWORKERS COMPENSATION NSW LTD v HANNAFORD [1995] NSWCA 545

WESTERN SYDNEY REGIONAL ORGANISATION OF COUNCILS GROUP APPRENTICES v STATRONA PTY LTD t/as RECYCLE AUTO ELECTRICAL; COMMERCIAL UNION WORKERS COMPENSATION NSW LTD v HANNAFORD

SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL

MAHONEY AP, MEAGHER and SHELLER JJA

1 August 1995, 29 August 1995

WORKERS COMPENSATION — apprentices scheme — negligence — insurance- indemnity

On 23 March 1987 an apprentice, Dean Richard Hannaford, suffered a serious injury while working at the premises of Statrona Pty Ltd (Statrona), trading as Recycle Auto Electrical. The parties accepted that Mr Hannaford was apprenticed to Western Sydney Regional Organisation of Councils Group (WSROC) at the time of his injury.

WSROC conducted a group apprentices scheme whereby it placed apprentices in industry for training. Under such an arrangement Mr Hannaford came to work at Statrona.

Mr Hannaford sued WSROC (the first defendant) and Statrona (the second defendant) for his injuries said to have been occasioned by reason of their negligence. In their defences WSROC admitted and Statrona denied employing him.

The claim led to a series of third party notices:

* WSROC claimed contribution or indemnity from Statrona alleging that Statrona had the control and supervision of the plaintiff as though he was directly employed by it.

* Statrona claimed indemnity from its workers compensation insurer, Commercial Workers' Compensation NSW Ltd (the second third party). * Statrona claimed contribution or indemnity from another insurer, Mercantile Mutual Insurance (Australia) Pty Ltd (the third third party) under a policy of general insurance.

* Statrona claimed against WSROC for breach of an agreement between them that in consideration of Statrona participating in the WSROC apprenticeship scheme and the payment of an "on cost" charge WSROC would handle, inter alia, all compensation matters such as claim and payment of accounts.