GIO WORKERS COMPENSATION (NSW) LTD and ANOR v RIGBY JONES PTY LTD [1998] NSWCA 93

GIO WORKERS COMPENSATION (NSW) LTD v RIGBY JONES PTY LTD

SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL

MASON P, SHELLER and POWELL JJA 12 May 1998, 18 June 1998 [1998] NSWCA 93

WORKERS COMPENSATION ACT 1987 — whether s172(4) allowed insurer to recover interest whilst application under s170 outstandingOPERATIVE MISTAKE — whether premiums paid under operative mistake

The respondent obtained from the first appellant or its predecessors, which included the second appellant, an employers liability policy from 30 June 1983 and in particular for the relevant policy years 30 June 1989 to 30 June 1990 and 30 June 1991 to 30 June 1995 (the policy years). Calculations of premiums for the policy years were made pursuant to s169 of the Workers Compensation Act 1987. The first appellant by letter dated 12 December 1995 required payment of $303,077.88 consisting of deposit and adjustment premiums for the policy years and interest calculated to 30 November 1995 pursuant of s172 of the 1987 Act. The respondent paid the premiums but refused to pay the interest.

The first appellant sued to recover $135,497.33 being interest pursuant to s172 of the 1987 Act up to 31 October 1996. The respondent filed cross claims claiming interest at court rates on an overpayment of workers compensation premiums for policy years 1987-88, 1985-86 and 1986-87. The trial Judge entered a verdict for the respondent on the appellants claim, a verdict for the respondent of $244.24 on its first cross claim and a verdict for the respondent of $153,698.72 on its second cross claim.

Appeal The issue on the first appellants appeal was whether the first appellant was entitled to interest on the amounts of the premium the respondent had not paid until December 1995. The respondent cross appealed against the verdict of on the first cross claim as inadequate. The second appellant appealed against the verdict against it for $153,698.72.