Rolls Royce Industrial Power (Pacific) Limited (Formerly John Thompson (Australia) Pty Limited) v James Hardie & Coy Pty Limited; James Hardie & Coy Pty Limited v The State of New South Wales; James Hardie & Coy Pty Limited v Rolls Royce Industrial Power (Pacific) Limited (Formerly John Thompson (Australia) Pty Limited) [2001] NSWCA 461

Reported Decision : 53 NSWLR 626

New South Wales Court of Appeal

CITATION : Rolls Royce Industrial Power (Pacific) Limited (Formerly John Thompson (Australia) Pty Limited) v James Hardie & Coy Pty Limited; James Hardie & Coy Pty Limited v The State of New South Wales; James Hardie & Coy Pty Limited v Rolls Royce Industrial Power (Pacific) Limited (Formerly John Thompson (Australia) Pty Limited) [2001] NSWCA 461 FILE NUMBER(S) : CA 40851/99; 40852/99; 40432/00 HEARING DATE(S) : 2 - 4 October 2001 JUDGMENT DATE : 12 December 2001

Rolls Royce Industrial Power (Pacific) Limited (Formerly John Thompson (Australia) Pty Limited) - Appellant/Respondent/Opponent PARTIES : James Hardie & Coy Pty Limited - Appellant/Respondent/Claimant The State of New South Wales - Respondent Electricity Commission of New South Wales - Respondent JUDGMENT OF : Stein JA at 1; Fitzgerald AJA at 153; Davies AJA at 189

LOWER COURT JURISDICTION : Dust Diseases Tribunal LOWER COURT DDT 34/94 FILE NUMBER(S) : LOWER COURT Curtis J JUDICIAL OFFICER :

P Hall QC/Ms D Stewart/R Dalgleish - Rolls Royce - Appellant/Respondent/Opponent COUNSEL : F M Douglas QC/G M Watson - James Hardie - Appellant/Respondent/Claimant J M Ireland QC/J Burn - The State of New South Wales - Respondent V Goldrid - Electricity Commission of NSW - Respondent Hunt & Hunt - Rolls Royce - Appellant/Respondent/Opponent SOLICITORS : Allens Arthur Robinson - James Hardie - Appellant/Respondent/Claimant Crown Solicitor - The State of New South Wales - Respondent CATCHWORDS : TORT - negligence - mesothelioma - contribution - s 5 Law Reform (Miscellaneous Provisions) Act 1946 - claim by employer for contribution by manufacturer and supplier - no warning of danger given - claim against State of New South Wales - premises inspected by State - whether inspectors subject to control by State - whether State had knowledge of danger and failed to adequately protect workers - TORT - negligence - indemnification - exemption from liability - s 5(2) Law Reform (Miscellaneous Provisions) Act 1946 - whether exemption power available where both tortfeasors independently at fault - whether discretion miscarried - TORT - liability - contribution - apportionment - comparison of culpability - whether trial judge's discretion miscarried - whether apportionment unreasonable - whether employer entitled to a complete indemnity - independent tortfeasors - whether manufacturer had an overriding duty - inherently dangerous product - COSTS - party successful on one aspect of case - whether issue raised reasonably - whether proper exercise of discretion - COSTS - Calderbank letter - change of circumstance - cross-claim filed after Calderbank letter - PROCEDURE - leave to amend cross-claim refused - when discretion exercised unreasonably - 'relevant period' extended - no relevant cross examination - no pre-trial inquiry and preparation - whether qualified as a point of law under s 32 Dust Diseases Tribunal Act - PROCEDURE - previous settlement of related action - whether settlement amounted to binding admission - whether Tribunal bound by apportionment figures - whether settlement can affect third party proceedings - D Dust Diseases Tribunal Act 1989 Law Reform (Married Women & Tortfeasors) Act 1935 Law Reform (Miscellaneous Provisions) Act 1946 LEGISLATION CITED : Limitation Act 1969 Limitation Act 1939 (UK) Sale of Goods Act 1923 Scaffolding and Lifts Act 1902 Ackbar v C F Green & Co Ltd [1975] 1 QB 582 British Fame (Owners) v MacGregor (Owners) [1943] AC 197 Burrows v Riordan [1899] 1 QB 816 Crimmins v SIFC (1999) 74 ALJR 1 Dedousis v The Water Board (1994) 181 CLR 171 Dunnet v Brennan [2000] NSWCA 211 Edwards v Joyce [1954] VLR 216 Fitzgerald v Dansey [2001] NSWCA 339 Fowdh v Fowdh (Unreported, NSWCA, 4 November 1993) Gaskins v British Aluminium Co Ltd [1976] 1 QB 524 Genders v GIO (1959) 102 CLR 363 GIO v Crittenden (1966) 117 CLR 412 Higgins v William Inglis & Son Pty Ltd [1978] 1 NSWLR 649 House v The King (1936) 55 CLR 499 Insurance Exchange of Australia v Dooley & Anor [2000 - 2001] 50 NSWLR 222 James Hardie v Roberts [1999] NSWCA 314 K v P (J Third Party) [1993] Ch 140 Knight v F P Special Assets Ltd (1992) 174 CLR 178 Liftronic Pty Limited v Unver [2001] HCA 24 Lister v Romford Ice and Cold Storage Co [1957] AC 555 McGrath v Fairfield Municipal Council (1985) 156 CLR 672 Maxfield v Llewellyn (1961) 1 WLR 1119 CASES CITED: Muller v Lalic [2000] NSWCA 50 Oxley City Council v MacDonald [1999] NSWCA 126 Pantalone v Alaouie (1989) 18 NSWLR 119 Patton v Buchanan Borehole Collieries Pty Ltd (1992 - 1993) 178 CLR 14 Permanent Trustee Australia Ltd v FAI General Insurance Co Ltd (Unreported, NSWSC, 3 June 1998) Podrebersek v AIS (1985) 59 ALJR 492 Preotta v Times Newspapers Ltd [1991] 4 All ER 46 Pyrenees Shire Council v Day (1998) 192 CLR 330 Putt v James Hardie & Co Pty Limited [1998] 43 NSWLR 554 Queensland v J L Holdings Pty Limited (1997) 189 CLR 146 Redken Laboratories (Australia) Pty Ltd v Docker [2000] NSWCA 100 Rheem Australia Ltd v Manufacturers Mutual Insurance Ltd (1984) 2 NSWLR 370 RTA v Fletcher [2001] NSWCA 63 Ryan v Fildes [1938] 3 All ER 517 Sherras v Van der Maat (1989) 1 Qd R 114 Sinclair v Willian Arnott Pty Limited (1963) 64 SR (NSW) 88 Spain v Metropolitan Meat Industry Board [1971] 1 NSWLR 91 SIFC v Gibson [2000] NSWCA 179 Unsworth v Commissioner for Railways (1958) 101 CLR 73 Van Doore v Mendez (Unreported, NSWSC, 30 June 1997) Ward Enterprises Pty Ltd v Ahern [2000] NSWCA 184 Wynbergen v Hoyts Corporation Ltd (1997) 72 ALJR 65 Yates v Costain Australia Ltd (1989) 18 NSWLR 312 DECISION : See paragraph 152 for orders