Asbestos Injuries Compensation Fund Limited as Trustee for the Asbestos Injuries Compensation Fund

The case involved the Asbestos Injuries Compensation Fund Limited, as trustee for the Asbestos Injuries Compensation Fund, seeking advice from the court. The fund was considering whether it should pay the portion of a damages award that related to asbestos exposure outside of Australia. The matter was heard by the Supreme Court of New South Wales. The central legal issues were whether the Fund would be justified in not paying that part of the damages award that reflected exposure outside Australia and the interpretation of terms such as "payable liability" in the Trust Deed, the Final Funding Agreement, and the James Hardie Former Subsidiaries (Winding up and Administration) Act 2005.

The court examined the terms of the Trust Deed, the Final Funding Agreement, and the relevant Act. It considered whether the Fund's obligation to pay was limited to liabilities arising from exposure within Australia or if it extended to global liabilities. The court's analysis included the plain meaning of the terms used and the context in which they appeared. It concluded that the Fund's obligation to pay extended to all liabilities, including those arising from exposure outside Australia, as the language used in the documents did not restrict the Fund's liability to domestic exposure. The court's reasoning was based on the ordinary meaning of the terms and the overall purpose of the legislation, which aimed to provide compensation for all asbestos-related injuries, regardless of where the exposure occurred.

The Supreme Court of New South Wales advised that the Asbestos Injuries Compensation Fund Limited, as trustee, would not be justified in not paying the portion of the damages award that related to exposure outside Australia. The court found that the Fund's obligation to pay was not limited to domestic exposure and included global liabilities. This advice was given pursuant to section 55 of the James Hardie Former Subsidiaries (Winding up and Administration) Act 2005. The court's decision was based on the plain meaning of the terms in the Trust Deed, the Final Funding Agreement, and the Act, which indicated an intention to cover all asbestos-related injuries.