J Blackwood & Son v Skilled Engineering

The dispute in *J Blackwood & Son v Skilled Engineering* concerned the extent of a third party's duty of care to a worker whose services were made available by a labour hire company, and the operation of indemnity provisions under the *Workers Compensation Act 1987* (NSW). The proceedings were heard in the Court of Appeal of New South Wales.

The primary legal issues before the court were: (1) whether Skilled Engineering, as the third party employer, owed a duty of care to the worker, J Blackwood & Son, and if so, the nature and scope of that duty; (2) whether the worker had been contributorily negligent; and (3) the application and interpretation of s 151Z of the *Workers Compensation Act 1987* concerning the employer's right to seek an indemnity from the third party for workers compensation payments made, particularly in light of amendments to the Act and the effect of contributory negligence on the quantum of damages.

The Court of Appeal considered the principles of negligence and the duty of care owed by a principal to a contractor's employee. It examined the practical opportunities available to the worker to take care for their own safety when assessing contributory negligence. Crucially, the court analysed the operation of s 151Z of the *Workers Compensation Act 1987*, including the impact of amendments introduced by the *Workers Compensation Legislation Further Amendment Act 2001* and the transitional provisions. The court determined whether the employer's right to indemnity had accrued before the commencement of the 2001 amendments and whether those amendments applied to the assessment of contribution. The court also considered the interplay between the employer's right of recovery under s 151Z and the *Limitation Act 1969* (NSW).

The appeal was dismissed, and the appellant was ordered to pay the costs of the appeal.