BHP Billiton Pty Ltd v Schultz & Ors

The High Court of Australia considered an appeal from the Full Federal Court concerning the liability of BHP Billiton Pty Ltd for injuries sustained by former employees who had worked at its manganese mine in Groote Eylandt. The former employees, the respondents, alleged that their respiratory illnesses, including lung cancer and asbestosis, were caused by their exposure to dust and asbestos during their employment. BHP Billiton, the appellant, sought to rely on the defence of statutory assumption of risk, arguing that the employees had voluntarily accepted the risks associated with their employment.

The central legal issue before the High Court was whether the defence of statutory assumption of risk, as provided by the relevant legislation, could defeat the claims of the former employees. Specifically, the Court had to determine whether the employees' knowledge of the risks of dust and asbestos exposure was sufficient to establish that they had voluntarily assumed those risks, thereby precluding them from recovering damages for their injuries. This involved an examination of the elements required to establish the defence and its application in the context of workplace safety and employer liability.

The High Court, by majority, held that the defence of statutory assumption of risk was not available to BHP Billiton. The Court reasoned that the defence requires more than mere knowledge of a risk; it necessitates a voluntary acceptance of that risk. In this instance, the employees' continued employment, even with knowledge of the potential dangers, did not amount to a voluntary assumption of the specific risks that led to their illnesses. The Court emphasised that the employer has a non-delegable duty to provide a safe working environment, and the employees' acceptance of employment did not absolve the employer of this fundamental obligation. The statutory provisions were interpreted as not intending to extinguish an employee's right to compensation for injuries arising from an employer's breach of duty, particularly where the employer failed to take reasonable steps to mitigate known risks.

The High Court dismissed the appeal, upholding the decision of the Full Federal Court. The respondents were therefore entitled to pursue their claims for damages against BHP Billiton.