Ace-Semi Trailer Sales Pty Ltd v Zurich Australia Insurance Ltd

The dispute in *Ace-Semi Trailer Sales Pty Ltd v Zurich Australia Insurance Ltd* concerned costs orders arising from proceedings involving section 151Z of the *Workers Compensation Act 1987* (NSW). The primary proceedings involved a worker's claim against Ace-Semi Trailer Sales Pty Ltd (Ace-Semi), who in turn made a cross-claim against Zurich Australia Insurance Ltd (Zurich) for contribution as a joint tortfeasor. Zurich also brought separate proceedings against Ace-Semi seeking indemnity for workers' compensation payments. The appeal was heard in the Court of Appeal of New South Wales.

The Court of Appeal was required to determine whether Zurich, as a third party on the cross-claim, was entitled to costs of that cross-claim. Further, the court had to consider whether the employer, Ace-Semi, should contribute to the costs payable by Zurich to the worker. Finally, the court examined whether an offer of compromise made by Zurich entitled Ace-Semi to costs on an indemnity basis in the separate indemnity proceedings.

The Court of Appeal reasoned that the trial judge had erred in making certain costs orders. Specifically, the court set aside an order made by the trial judge concerning the costs of the cross-claim. The court's decision indicated that while leave to appeal was granted in relation to specific costs orders, the overall appeal was largely dismissed. The court ordered Ace-Semi to pay one-third of Zurich's costs in the Court of Appeal.