Allianz Australia Insurance Limited v Mercer

In *Allianz Australia Insurance Limited v Mercer*, the Court of Appeal of the Supreme Court of New South Wales considered a dispute concerning the limitation period for a claim for damages for personal injuries. The appellant, Allianz Australia Insurance Limited, appealed a decision of Blow CJ in favour of the respondent, Mercer.

The central legal issue before the Court of Appeal was the interpretation of the "date of discoverability" for the purposes of the *Limitation Act 1969* (NSW) in the context of a claim for damages for personal injury against an employer. Specifically, the court had to determine when a cause of action accrues in such circumstances, and how that accrual date interacts with the discoverability principle, particularly concerning the requirement for a worker to elect to claim damages and the agreement or determination of the degree of permanent impairment.

The Court of Appeal reasoned that the *Workers Compensation Act 1987* (NSW) imposed a prerequisite for the accrual of a cause of action for damages for personal injury against an employer. This prerequisite is the agreement or determination of the degree of permanent impairment to a specified percentage of the whole person. The court held that the date of discoverability, as defined by the *Limitation Act 1969*, could not precede the date upon which the cause of action actually accrued. Therefore, the discoverability period could not commence until after the degree of permanent impairment had been agreed or determined.

The appeal was allowed, and the judgment of Blow CJ in favour of the respondent on 22 December 2014 was affirmed, with the Court of Appeal upholding the respondent's contention on the point of law.