CSR Timber Products Pty Ltd v Weathertex Pty Ltd

CSR Timber Products Pty Ltd (CSR) sought indemnity from Weathertex Pty Ltd (Weathertex) under section 151Z(1)(d) of the *Workers Compensation Act 1987* (NSW). CSR had been found liable to pay compensation to a worker for a disease of gradual onset. CSR argued that Weathertex, as an earlier employer in whose employment the nature of the disease was due, should indemnify CSR. The dispute centred on whether Weathertex was a "person other than the worker's employer" for the purposes of section 151Z(1)(d), and whether an earlier decision by the Workers Compensation Commission created an issue estoppel preventing Weathertex from denying liability. The matter was heard in the Court of Appeal of New South Wales.

The Court of Appeal was required to determine two primary legal issues. Firstly, it had to consider the proper interpretation of "the worker's employer" in section 151Z(1) of the *Workers Compensation Act 1987* in the context of a disease of gradual onset. Secondly, the Court needed to decide whether the Workers Compensation Commission's previous finding, that the worker was entitled to compensation from the "last" employer in employment to the nature of which the disease was due, gave rise to an issue estoppel that prevented that employer from claiming indemnity from an earlier employer.

The Court of Appeal reasoned that in relation to a disease of gradual onset, the "worker's employer" referred to in section 151Z(1) is the employer liable to pay compensation under section 9(1) of the Act, which in this context is the "last" employer under section 15(1)(b). The Court found that the previous decision of the Workers Compensation Commission did not determine whether the disease was contracted during the period of employment with Weathertex, and therefore, no issue estoppel arose. Consequently, the appeal was dismissed.