Clout Industrial Pty Ltd (in Liquidation) v Baiada Poultry Pty Ltd

Clout Industrial Pty Ltd (in Liquidation) appealed to the New South Wales Court of Appeal against a decision concerning contribution between tortfeasors. The dispute arose from an injury sustained by an employee of Clout Industrial, who subsequently brought proceedings against Baiada Poultry Pty Ltd as a third party. Clout Industrial sought contribution from the employee's employer, despite amendments to the *Workers Compensation Act* that limited damages recoverable from an employer, and after the worker's cause of action against the employer had become statute barred.

The Court of Appeal was required to determine whether contribution was available under the *Law Reform (Miscellaneous Provisions) Act 1946* (NSW) in these circumstances. Specifically, the court had to consider the effect of amendments to the *Workers Compensation Act* which, if applicable, would mean no damages were recoverable from the employer. A further issue was whether section 151Z of the *Workers Compensation Act* operated to preclude such contribution.

The Court held that while section 151Z of the *Workers Compensation Act* did not preclude contribution in this instance, the amendments to the *Workers Compensation Act* effectively meant that no damages were recoverable from the employer. Consequently, the *Law Reform (Miscellaneous Provisions) Act 1946* could not operate to allow for contribution from an employer against whom no liability for damages existed. The appeal was dismissed with costs.