ICI Australia Operations Pty Limited (now known as Orica Australia Pty Limited) & 1 Ors v The WorkCover Authority of New South Wales [2004] NSWCA 55

Reported Decision : 60 NSWLR 18

New South Wales Court of Appeal

CITATION : ICI Australia Operations Pty Limited (now known as Orica Australia Pty Limited) & 1 Ors v The WorkCover Authority of New South Wales [2004] NSWCA 55 revised - 12/03/2004 HEARING DATE(S) : 2 May 2003 JUDGMENT DATE : 11 March 2004

JUDGMENT OF : Mason P at 1; Meagher JA at 2; McColl JA at 4 DECISION : The Appeal 1. Appeal allowed. 2. Declare that the WorkCover Authority of New South Wales is liable to indemnify ICI Australia Operations Pty Limited (now known as Orica Australia Pty Limited) in respect of the damages and costs paid to George Roland Brazier in and arising out of proceedings in the Dust Diseases Tribunal of New South Wales numbered 169 of 1997 between George Roland Brazier and ICI Australia Operations Pty Limited (now known as Orica Australia Pty Limited). 3. Order the WorkCover Authority of New South Wales to pay the costs of and associated with the Appeal and in the Court below. The Cross-Appeal 1. Cross-Appeal dismissed. 2. Cross-appellant to pay the costs of the Cross-Appeal.

CATCHWORDS : WORKERS COMPENSATION - DUST DISEASES - INSURANCE - meaning of "employment to the nature of which the disease was due" in s 151AB of the Workers Compensation Act 1987 - whether the Court is required to have regard to the actual occupational disease suffered by the worker - standard of proof required - extent to which Judges of the Dust Diseases Tribunal are entitled to rely upon their knowledge as members of a specialised tribunal - insolvent insurers - whether s 232 of the Workers Compensation Act 1987 confers a discretion on the WorkCover Authority to make payments out of the Insurers' Guarantee Fund - capacity in which an insurer designated pursuant to s 151AC of the Workers Compensation Act 1987 makes a payment to or on behalf of an employer - whether the WorkCover Authority has power to reimburse an employer pursuant to s 232 where the employer's liability has been discharged by the designated insurer - effect of undertaking to the Dust Diseases Tribunal by the WorkCover Authority that it would reimburse employer - D Commonwealth Employees Compensation Act 1930-1956 s 10(1) Courts Legislation Amendment Act 1998 (NSW) Dust Diseases Tribunal Act 1989 (NSW) s 11A, s 32, s 32(1) Interpretation Act 1987 (NSW) s 5, s 9 WorkCover Legislation (Amendment) Act 1995 (NSW) Workers Compensation (Benefits) Amendment Act 1989 (NSW) Workers' Compensation Act 1912 (NSW) s 12 Workers' Compensation Act 1926 (NSW) s 6, s 7, s 7(4), s 7(5), s 18(1), s 18(6A), s 18(6B), Part IIIB, s 30Q(2) LEGISLATION CITED : Workers Compensation Act 1987 (NSW) s 3, s 34, s 93, s 124, Part 5 Division 5, s 151AB, s 151AB(1), s 151AB(1)(a), s 151AB(1)(b), s 151AB(2), s 151AB(6), s 151AC, s 151AC(1), s 151AC(2), s 151AC(5), s 151AC(5)(a), s 151AC(6), s 151AC(9), s 151AC(10), s 151AC(10)(a), s 159, s 159(2), s 159(3), s 159(5), Part 7 Division 3, Part 7 Division 6, s 218(2), s 221, s 221(2), s 221(4), s 221A, s 222, Part 7 Division 7, s 225, s 225(1), s 226, s 226(1), s 227, s 227(1), s 227(2), s 227(3), s 227(4), s 228, s 228(1), s 228(2), s 228(2A), s 228(2B), s 228(4), s 229, s 230, s 231, s 231(2), s 231(2)(b), s 231(3), s 231(4), s 231(7), s 232, s 232(1), s 232(2), s 232(3), s 232(4), s 233, s 233(1), s 233(2), s 233(3), s 233(4), s 234, s 234(1), s 234(1)(a), s 235, s 236, s 236(2), s 236(3), s 236(4) Workers Compensation (Amendment) Act 1985 (NSW) Schedule 5 Workers Compensation (Amendment) Act 1991 No 2 (NSW) Schedule 3 [9] Workers' Compensation (Dust Diseases) Act 1942 (NSW) s 3, Schedule 1 Workers' Compensation (Dust Diseases) Amendment Act 1967 (NSW) Workers Compensation Legislation Amendment Act 1998 (NSW) Schedule [163] Workers Compensation Legislation Amendment (Dust Diseases & Other Matters) Act 1998 (NSW) Workmen's Compensation Act 1906 (UK) s 8, s 8(1), s 8(1)(a), s 8(1)(c)(iii) Workmen's Compensation Act 1925 (UK) s 43 Workmen's Compensation Ordinance 1949 (NT) s 9(1)(a) Anderson Stuart v Treleaven (2000) 49 NSWLR 88 Austin v Zurich General Accident & Liability Insurance Company Limited [1945] KB 250 Azzopardi v Tasman UEB Industries (1985) 4 NSWLR 139 Blatchford v Staddon and Founds [1927] AC 461 Brazier v ICI Australia Operations Pty Ltd (2000) 19 NSWCCR 623 Bryer v Metropolitan Water Sewerage & Drainage Board (1939) 39 SR (NSW) 321 Bull v Attorney-General (NSW) (1913) 17 CLR 370 Castellain v Preston (1883) 11 QBD 380 Chubb Australia Limited v Mercantile Mutual Insurance (Workers Compensation) Limited [1999] NSW DDT 7; (1999) 17 NSWCCR 537 CIC Workers' Compensation (NSW) Limited v Alcan Australia Limited (1994) 35 NSWLR 169 CIC Workers' Compensation (NSW) Ltd v Kellogg (Australia) Pty Ltd (1996) 40 NSWLR 422 Commissioner of State Revenue (Victoria) v Royal Insurance Australia Limited (1994) 182 CLR 51 Connair Pty Ltd v Frederiksen (1979) 142 CLR 485 Di Cecco v Mercantile Mutual Insurance (Workers Compensation) Limited [2002] NSWDDT 1; (2002) 23 NSWCCR 143 Ellerbeck Collieries Limited v Cornhill Insurance Co [1932] 1 KB 401 Enterprise Colorvideo Productions Pty Limited v Corporate Affairs Commission (NSW) [1984] 1 NSWLR 223 Fisher v Hebburn Ltd (1960) 105 CLR 188 GIO General Ltd v ABB Installation & Service Pty Ltd [2000] NSWCA 118; (2000) 19 NSWCCR 720 Government Insurance Office of NSW v Colgate Palmolive Pty Ltd (2001) NSWCA 24; (2001) 50 NSWLR 729; (2001) NSWCCR 436 Hopwood v Textile Paper Tube Co Ltd [1946] 1 All ER 618 J & H Timbers Pty Limited v Nelson (1972) 126 CLR 625 Kealley v Jones [1979] 1 NSWLR 723 Kemp v Darling Island Stevedoring & Lighterage Co Limited (1959) 76 WN (NSW) 707 CASES CITED : King v Victoria Insurance [1896] AC 250 Malathounis v H & J Pappas t/as Pappas Excavations & Ors (1996) 13 NSWCCR 438 Manufacturers' Mutual Insurance Ltd v Goodyear Australia Ltd (1997) 15 NSWCCR 538 Orica Limited v CGU Insurance Ltd [2003] NSWCA 331 Pavey & Mathews Pty Limited v Paul (1987) 162 CLR 221 QBE Insurance Limited v Bull [1999] NSWCA 185; (1999) 18 NSWCCR 169 R v City of Westminster Assessment Committee [1941] 1 KB 53 R v Norfolk County Council (1891) 60 LJ QB 379 Roxborough v Rothmans of Pall Mall Australia Ltd (2001) 208 CLR 516 Samad v District Court of New South Wales (2002) 209 CLR 140 Seltsam Pty Ltd v McGuiness [2000] NSWCA 29; (2000) 49 NSWLR 262 Smith v Mann [1932] HCA 30; (1932) 47 CLR 426 State Mines Control Authority v GIO (NSW) (1964) 65 (SR) (NSW) 258 Sydney Turf Club v Crowley [1971] 1 NSWLR 724 Tame v Commonwealth Collieries Pty Limited (1947) 47 SR (NSW) 269 The Commonwealth v Bourne (1960) 104 CLR 32 The Commonwealth v Thompson (1960) 104 CLR 48 Thorby v Goldberg (1964) 112 CLR 597 Transport Accident Commission v C.M.T. Construction of Metropolitan Tunnels and Another (1988) 165 CLR 436 Wallaby Grip (BAE) Pty Limited (in liq) v Macleay Area Health Service (1998); 17 NSWCCR 355 Ward v Williams (1955) 92 CLR 496 Wellcome Australia Ltd v Australian Eagle Insurance Co Ltd (1993) 34 NSWLR 269 WorkCover Authority of NSW v Chubb Australia Ltd [2000] NSWCA 221; (2000) 20 NSWCCR 614 Workers Compensation Board of Queensland v WorkCover Authority of New South Wales (1995) 36 NSWLR 732 Wunderlich Ltd v Manufacturers' Mutual Insurance Ltd [1981] 2 NSWLR 678 ICI Operations Pty Limited (now known as Orica Australia Pty Limited) (First Appellant/First Cross-Claimant) CGU Insurance Limited (Second Appellant/Second Cross-Claimant) PARTIES : The WorkCover Authority of New South Wales (Respondent/Cross-Defendant) FAI Traders Insurance Company Ltd (Third Respondent/Cross-Appellant) FAI Workers Compensation (NSW) Ltd (Fourth Respondent/Cross-Appellant) FILE NUMBER(S) : CA 40628/02 Mr J D Hislop QC/Mr G P F Rundle (First/Second Appellants) & (First/Second Cross-Respondents) (ICI/CGU) COUNSEL : Mr G F Little SC/Mr G J Parker (First Respondent/Cross-Appellant) (Workcover) Mr C R R Hoeben SC/N E Chen (Third Respondent/Third Cross-Respondent) (FAI Traders) Mr G M Watson SC (Fourth Respondent/Fourth Cross-Respondent) (FAI Workers Compensation) Phillips Fox (First/Second Appellants) & (First/Second Cross-Respondents) (ICI/CGU) SOLICITORS : Turks Legal (First Respondent/Cross-Appellant) (WorkCover) Sparke Helmore (Third Respondent/Third Cross-Respondent) (FAI Traders) Moray & Agnew (Fourth Respondent/Fourth Cross-Respondent) (FAI Workers Compensation)