Codmah Pty Ltd v Rice

Case [2018] ACTSC 191


SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

Case Title:

Codmah Pty Ltd v Rice 

Citation:

[2018] ACTSC 191

Hearing Date:

15 February 2018

DecisionDate:

29 June 2018

Before:

McWilliam AsJ

Decision:

1.    The appeal is dismissed.

2.    The appellant is to pay the respondent’s costs.

Catchwords:

APPEAL – STATUTORY INTERPRETATION – Workers’ Compensation Act 1951 (ACT), s 35 – where principal contractor deemed liable to pay compensation for injury suffered in the course of employment because the subcontractor employer was not insured in the Australian Capital Territory – whether principal is also an ‘employer’ for the purposes of s 35 and thus had obligations to find the employee alternative employment – whether employee had obligation to notify principal before liability to find alternative employment arose – whether suitable alternative employment found

Legislation Cited:

Legislation Act 2001 (ACT) s 151C

Workers’ Compensation Act 1951 (ACT) ss 13 and 35

Cases Cited:

Bird v The Commonwealth (1988) 165 CLR 1

Nash v Sunshine Porcelain Potteries Ltd (1959) 101 CLR 353
The Director of Public Prosecutions v Scheele [2016] ACTCA 23

Woden Valley Glass v Psaila (1993) 44 FCR 140

Parties:

Codmah Pty Ltd (First Appellant)

Ydennek Pty Ltd (First Respondent)

Leslie Rice (Second Respondent)

Representation:

Counsel

Mr L Morgan (Appellant)

Mr A Muller (First Respondent)

Solicitors

Gillis Delaney Lawyers (Appellant)

Slater & Gordon (First Respondent)

File Number:

SCA 73 of 2017

Decision under appeal: 

Court: Magistrates Court of the ACT

Before:  Chief Magistrate Walker

Date of Decision:         21 July 2017

Case Title:  Rice v Ydennek Pty Ltd & Ors

Court File Number:       WC 146 of 2015

Introduction

  1. In March 2014, while unloading timber beams during the course of his employment as a labourer, Mr Rice stepped into a hole covered by long grass and injured his left knee and ankle. The present appeal is from a decision of the Chief Magistrate on 21 July 2017 (the orders being made on 10 August 2017).  It involves a dispute over whether a principal contractor is responsible for the payment of workers’ compensation to Mr Rice arising from that injury, and the amount of that payment under the workers’ compensation scheme set up by the Workers Compensation Act 1951 (ACT) (the Act), which was calculated based on the periods Mr Rice was deemed to be totally incapacitated under s 35 of the Act.

  1. The order giving rise to the appeal (Order 3 of the orders made on 10 August 2017) is in the following terms:

The injury is productive of partial incapacity which is deemed total incapacity pursuant to s35 of the Workers Compensation Act 1951 during the periods he has been unable to find suitable employment, that is periods during which he has been unemployed post injury.

The parties

  1. The appellant is Codmah Pty Ltd (Codmah). It was the principal or head contractor on a construction site for the building of a gas pipeline in the Australian Capital Territory (the Territory).

  1. The first respondent on the appeal…

Details
AGLC
Codmah Pty Ltd v Rice [2018] ACTSC 191
Case
[2018] ACTSC 191
Decision Date

CaseChat Overview and Summary

Codmah Pty Ltd appealed against a decision that found it liable for compensation for a worker who had been injured while working on a site they were contracted to. Rice, the injured worker, sought compensation under the Workers’ Compensation Act 1951 (ACT), section 35, as the subcontractor who employed him was not insured in the Australian Capital Territory. The dispute hinged on whether Codmah, as the principal contractor, was also an ‘employer’ for the purposes of the Act and thus obligated to find the injured worker alternative employment. Additionally, the court considered whether the worker had an obligation to notify Codmah before the principal contractor’s liability to find alternative employment arose, and if a suitable alternative employment had indeed been found.

The court examined the definition of ‘employer’ within the Workers’ Compensation Act 1951 (ACT) and assessed whether Codmah met the criteria. It also scrutinised the obligations of both parties under section 35, particularly focusing on the requirement for notification and the adequacy of the alternative employment offered. The court determined that Codmah was indeed an employer for the purposes of the Act and was therefore obligated to find alternative employment for the injured worker. It further found that Rice had not breached any notification requirements and that a suitable alternative employment had been identified.

The appeal was dismissed, and the appellant was ordered to pay the respondent's costs. The court held that Codmah was liable to compensate Rice for his injury and to find him alternative employment as required by section 35 of the Workers’ Compensation Act 1951 (ACT). The court's decision underscored the importance of statutory interpretation in determining the obligations of parties under workers’ compensation legislation. The ruling also clarified that failure to notify the principal contractor of an injury did not absolve them of their statutory obligations to find alternative employment.

Orders

Orders of the court

1. The appeal is dismissed.

2. The appellant is to pay the respondent’s costs.

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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