Climax Management v Scansash

Case [2002] NSWCA 167


CITATION: Climax Management v Scansash [2002] NSWCA 167
FILE NUMBER(S): CA 40695 of 2001
HEARING DATE(S): 31/05/02
JUDGMENT DATE:
21 June 2002

PARTIES :


Climax Management Pty Limited
v
Scansash Pty Limited
JUDGMENT OF: Meagher JA at 1; Ipp AJA at 16; Pearlman AJA at 17
LOWER COURT JURISDICTION : District Court
LOWER COURT
FILE NUMBER(S) :
DC 4250 of 2000
LOWER COURT
JUDICIAL OFFICER :
O'Reilly DCJ
COUNSEL: Appellant: Mr Harrison SC with Mr Ogborne
Respondent: Mr M Slattery QC with Mr M Grant
SOLICITORS: Appellant: Blake Dawson Waldron
Respondent: Connery & Partners
CATCHWORDS: Workers' Compensation Act 1987 - estoppel - whether appellant is estopped from bringing proceedings as a result of a determination under s 151Z(2) of the Workers' Compensation Act - appeal allowed.
LEGISLATION CITED: Workers' Compensation Act 1987
Law Reform (Miscellaneous Provisions) Act 1946
CASES CITED:
Oxley County Council v MacDonald [1999] NSWCA 126
Redken Laboratories (Aust) Pty Ltd v Docker [2000] NSWCA 100
DECISION: 1. Appeal allowed; 2. Respondent to pay the appellant's costs; 3. Further orders to be made in an agreed form of order signed by the parties and filed in Court.




                          CA 40695 of 2001
                          DC 4250 of 2000

                          MEAGHER JA
                          IPP AJA
                          PEARLMAN AJA

                          Friday, 21 June 2002
CLIMAX MANAGEMENT PTY LTD v SCANSASH PTY LIMITED

Facts

The second respondent, Mr C Negus, was an employee of the appellant, Climax Management Pty Ltd, which carried on the business of gold-mining. The first respondent, Scansash Pty Limited, was an independent contractor engaged by Climax to keep its tanks in good repair. Whilst checking certain tanks, the second respondent, fell and was severely injured, and successfully sued Climax Management Pty Ltd and Scansash Pty Limited in negligence. The trial judge awarded him $537,167.000 and determined the liability of the employer and contractor at 65% and 35% respectively.

On 23 August 1999, the appellant filed a claim (the fourth cross-claim) by which it asserted that the respondent, Scansash Pty Limited, had committed breaches of contractual obligations to comply with certain Acts and Regulations. At trial, his Honour ordered that the cross-claims between the defendants be stood over for separate hearing because Scansah, the present respondent, was “not in a position then to deal with the claim in contract”.

On appeal, the respondent, Scansash claimed that his Honour’s judgment disposed of all questions which arose on the cross-claim. The appellant contended the cross-claim was a separate claim made in contract between the two parties, and not a claim in tort against both of them.


The issues raised by the cross-claim were (a) whether there was an agreement as alleged in the cross-claim, (b) whether the present respondent committed breaches of that agreement and (c) whether the appellant suffered loss and damage as a result of those breaches. These issues were not decided by his Honour.

Per Meagher JA (Ipp AJA and Pearlman AJA agreeing)


(i) The trial judge was not required to determine any issue arising out of the contract between the appellant and the…

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Climax Management v Scansash [2002] NSWCA 167
Case
[2002] NSWCA 167
Decision Date

CaseChat Overview and Summary

Climax Management Pty Ltd (the appellant) appealed to the Court of Appeal of New South Wales against a decision of the Workers Compensation Commission. The dispute concerned whether the appellant was estopped from bringing proceedings by reason of a prior determination made under section 151Z(2) of the *Workers' Compensation Act 1987* (NSW).

The primary legal issue before the Court of Appeal was whether the determination made under section 151Z(2) of the *Workers' Compensation Act 1987* operated as an estoppel preventing the appellant from pursuing its claim. This required the court to consider the nature and effect of determinations made under that provision.

The Court of Appeal allowed the appeal. The court reasoned that the determination made under section 151Z(2) did not have the effect of creating an estoppel in the circumstances of this case. The court ordered that the respondent pay the appellant's costs, with further orders to be made in an agreed form.

Orders

Orders of the court

1. Appeal allowed; 2. Respondent to pay the appellant's costs; 3. Further orders to be made in an agreed form of order signed by the parties and filed in Court.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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