Koljibabic v BHP Billiton Nickel West Pty Ltd

The High Court of Australia heard an appeal from the Supreme Court of Western Australia in a dispute between Mr Koljibabic and BHP Billiton Nickel West Pty Ltd. Mr Koljibabic had brought proceedings against BHP Billiton alleging that he had suffered a psychiatric injury as a result of his employment with the company. The primary judge found in favour of Mr Koljibabic, but this decision was overturned by the Full Court of the Supreme Court of Western Australia. The High Court was therefore asked to consider whether BHP Billiton owed Mr Koljibabic a duty of care in relation to the psychiatric injury he claimed to have suffered.

The central legal issue before the High Court was whether an employer owes a duty of care to take reasonable steps to prevent an employee from suffering a psychiatric injury arising from the employee's work, where the employer is aware that the employee is particularly vulnerable to such injury. This involved considering the scope of an employer's duty of care in negligence, particularly in circumstances where the employee's susceptibility to harm is known to the employer.

The High Court, by majority, held that an employer does owe a duty of care to take reasonable steps to prevent an employee from suffering a psychiatric injury if the employer knows, or ought to know, that the employee is at risk of such injury. This duty is engaged when the employer has knowledge of the employee's particular vulnerability or when the circumstances of the employment are such that a risk of psychiatric injury is foreseeable. The Court emphasised that the employer's knowledge, actual or constructive, of the risk is a crucial factor in establishing the existence and scope of the duty of care. The appeal was allowed, and the matter was remitted to the Supreme Court of Western Australia for further determination.