Farmer and Company Limited v Griffiths

The High Court of Australia considered an appeal from the Supreme Court of New South Wales concerning the interpretation of section 64 of the *Workers' Compensation Act 1926-1938* (NSW). The dispute arose when an infant worker, John Alexander Griffiths, who had received payments from his employer purporting to be workers' compensation for an injury, subsequently sued a third party, Farmer and Company Limited, for damages alleging negligence caused the same injury. The defendant argued that the worker's receipt of compensation barred his claim for damages under section 64.

The central legal issue before the High Court was whether an infant worker, who had received payments from their employer that were intended as workers' compensation, was precluded by section 64 of the Act from recovering damages from a negligent third party, particularly where it was not for the infant's benefit to receive compensation rather than damages. The court was required to determine if the common law principles regarding an infant's capacity to perform acts prejudicial to their interests applied to the receipt of compensation under the Act, thereby affecting the operation of section 64.

By majority, the High Court held that an infant worker is not automatically barred from recovering damages from a third party merely by receiving payments from their employer that are labelled as compensation. The court reasoned that, in accordance with general principles of law, an infant's actions that are prejudicial to their rights are generally not binding unless they are demonstrably for the infant's benefit. Therefore, for the receipt of compensation to bar a claim against a third party under section 64, it must be shown to have been for the infant's benefit. The court noted that the amount of compensation received by the infant could be taken into account in reduction of any damages awarded against the third party.

The appeal was dismissed, with the majority affirming the decision of the Supreme Court of New South Wales.