Central West Group Apprentices Ltd v Coal Mines Insurance Ltd

Central West Group Apprentices Ltd (Central West) appealed to the New South Wales Court of Appeal against a decision concerning its liability for workers' compensation insurance. The dispute arose from Central West's provision of an apprentice to a coal mine, and whether this made it an "employer in the coal industry" for the purposes of the *Workers Compensation Act 1987* (NSW). Coal Mines Insurance Ltd (CMI) contended that it was the relevant insurer, and that a lump sum payment made by Central West in commutation and redemption of compensation payments was covered by its policy.

The Court of Appeal was required to determine whether Central West was an employer in the coal industry solely by virtue of having provided a worker to a coal mine, and consequently, whether CMI was the appropriate insurer. Further, the Court had to consider whether the lump sum payment made by Central West constituted a payment of compensation in pursuance of a liability to pay compensation, or a payment in redemption of such compensation, and whether this payment fell within the insuring clause of CMI's policy. The Court also had to assess whether the decision in *Gosper v Christopherson* (1986) 160 CLR 423 had been legislatively overridden by s 15 of the *Workers Compensation Act 1987* (NSW).

The Court of Appeal reasoned that Central West's business was to provide apprentices to various industries, and that the mere fact that one of its apprentices was placed with a coal mine did not render Central West an "employer in the coal industry" in the sense contemplated by the legislation. The Court found that Central West was not primarily engaged in the coal industry, and therefore CMI was not the relevant insurer. Regarding the lump sum payment, the Court held that it was a payment in redemption of compensation, and that the terms of the insuring clause did not extend to such a redemption payment. The Court concluded that the legislative amendment did not alter the effect of *Gosper v Christopherson* in a manner that would bring the redemption payment within the scope of the policy.

The appeal was dismissed, and Central West was ordered to pay CMI's costs.