MERCANTILE MUTUAL INSURANCE (AUSTRALIA) LIMITED v. QBE WORKERS COMPENSATION (NSW) LIMITED [2004] NSWCA 409

Reported Decision : 61 NSWLR 655 (2005) 13 ANZ Insurance Cases 61-636

New South Wales Court of Appeal

CITATION : MERCANTILE MUTUAL INSURANCE (AUSTRALIA) LIMITED v. QBE WORKERS COMPENSATION (NSW) LIMITED [2004] NSWCA 409 HEARING DATE(S) : 11/08/2004 JUDGMENT DATE : 26 November 2004

JUDGMENT OF : Handley JA at 1; Beazley JA at 23; Tobias JA at 24 DECISION : Appeal allowed with costs; Set aside the orders of Patten DCJ on 19 December 2003; In lieu thereof order that the respondent's notice of motion of 8 October 2003 be dismissed with costs.

CATCHWORDS : INSURANCE - Double insurance principle - Whole insurance burden borne by one insurer - Right to contribution from other insurer - Right to contribution only arises where each insurer is liable for same risk. - INSURANCE - Workers Compensation Act 1987 (NSW), s.151B(1)(b) - Operation - Discharge of statutory liability also discharges liability of employer to pay damages - Where employee receives workers compensation payment liability for damages does not arise - Therefore the workers compensation insurer has no right to contribution from motor vehicle third party insurer. - INSURANCE - Motor Accidents Act 1988 (NSW), s.9(a) - Operation - Exclusion of liability to pay compensation under the Workers Compensation Act. LEGISLATION CITED : Motor Accidents Act 1988 (NSW) Workers Compensation Act 1987 (NSW) Albion Insurance Co Ltd v Government Insurance Office (NSW) (1969) 121 CLR 342 CASES CITED : AMP Workers' Compensation Services (NSW) Ltd v QBE Insurance Ltd (2001) 53 NSWLR 35 Australian Iron & Steel Pty Ltd v Government Insurance Office of NSW [1978] 2 NSWLR 59 PARTIES : MERCANTILE MUTUAL INSURANCE (AUSTRALIA) LIMITED (Appellant) QBE WORKERS COMPENSATION (NSW) LIMITED (Respondent) FILE NUMBER(S) : CA 40082/04 COUNSEL : G.M. Watson SC/T. Ower (Appellant) S.G. Campbell SC/D. Ronzani (Respondent) SOLICITORS : Lee & Lyons (Appellant) Blake Dawson Waldron (Respondent)