Lederer Group Pty Ltd v Hodson

Case [2024] NSWCA 303


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Lederer Group Pty Ltd v Hodson [2024] NSWCA 303
Hearing dates: 17 October 2024
Date of orders: 18 December 2024
Decision date: 18 December 2024
Before: Ward P at [1]; Leeming JA at [280]; Basten AJA [286]
Decision:

1.   Appeal and cross-appeal each be allowed with costs.

Catchwords:

NEGLIGENCE – Duty of care – Mental harm – Where respondent exposed to traumatic incident in the course of employment – Whether respondent’s exposure to incident was causative of post-traumatic stress disorder and major depressive disorder – Whether respondent actually exposed to incident – Whether respondent’s employer breached duty of care in failing to direct respondent not to attend incident – Whether duty of care negatived by s 32 of the Civil Liability Act 2002 (NSW) – Appeal allowed

EVIDENCE – Expert evidence – Where assumptions made by experts called by respondent not proved on the facts – Where facts as proved dissimilar from expert assumptions – Where little to no weight can be attributed to expert evidence as to causation

Legislation Cited:

Civil Liability Act 2002 (NSW), ss 5B, 5C, 5D, 30, 32

Law Reform (Miscellaneous Provisions) Act 1946 (NSW), s 5(1)

Work Health and Safety Act 2011 (NSW), ss 17, 19, 20

Work Health and Safety Regulation 2011 (NSW), cll 34-39

Workers Compensation Act 1987 (NSW), s 151Z, Div 3 Pt 5

Cases Cited:

Benic v State of New South Wales [2010] NSWSC 1039

Bunnings Group Ltd v Guidice [2018] NSWCA 144

Capar v SPG Investments Pty Ltd t/as Lidcombe Power Centre [2020] NSWCA 354

Chappel v Hart (1998) 195 CLR 232; [1998] HCA 55

Collins v Insurance Australia Ltd (2022) 109 NSWLR 240; [2022] NSWCA 135

Culver v Sekulich (1959) 80 Wyoming 437

Dasreef Pty Ltd v Hawchar (2011) 243 CLR 588; [2011] HCA 21

Davidson v R [2022] NSWCCA 153

Eric Preston Pty Ltd v Euroz Securities Ltd (2011) 274 ALR 705; [2011] FCAFC 11

Karzi v Toll Pty Ltd [2024] NSWCA 120

Koehler v Cerebos (Australia) Limited (2005) 222 CLR 44; [2005] HCA 15

Kozarov v State of Victoria (2022) 273 CLR; [2022] HCA 12

Kubovic v HMS Management Pty Ltd [2015] NSWCA 315

Makita (Aust) Pty Ltd v Sprowles (2001) 52 NSWLR 705; [2001] NSWCA 305

Mount Isa Mines Pty Ltd v Pusey (1970) 125 CLR 383; [1970] HCA 60

Optus Administration Pty Ltd v Glen Wright by his tutor James Stuart Wright [2017] NSWCA 21

Palmer-Bruyn and Parker Pty Ltd v Parsons (2001) 208 CLR 388; [2001] HCA 69

Paric v John Holland Constructions Pty Ltd (1985) 62 ALR 85; [1985] HCA 58

Paric v John Holland Constructions Pty Ltd [1984] 2 NSWLR 505

Prouten v Chapman [2021] NSWCA 207

R v Ryan [2002] VSCA 176

Ramsay v Watson (1961) 108 CLR 642; [1961] HCA 65

Roads and Traffic Authority of NSW v Dederer (2007) 234 CLR 330; [2007] HCA 42

Robinson Helicopter Company…

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Details
AGLC
Lederer Group Pty Ltd v Hodson [2024] NSWCA 303
Case
[2024] NSWCA 303
Decision Date

CaseChat Overview and Summary

The Lederer Group Pty Ltd appealed to the Court of Appeal of New South Wales against a judgment that found it liable for negligence causing psychiatric injury to its employee, Mr. Hodson. Mr. Hodson had alleged that his exposure to a traumatic incident during the course of his employment led to him developing post-traumatic stress disorder and major depressive disorder. The central dispute concerned whether Mr. Hodson was actually exposed to the incident, whether such exposure caused his diagnosed conditions, and whether the Lederer Group breached its duty of care to him.

The Court of Appeal was required to determine several key legal issues. Firstly, it had to assess whether Mr. Hodson had proven, on the balance of probabilities, that he was exposed to the traumatic incident in a manner that could cause psychiatric harm. Secondly, the Court needed to consider whether the Lederer Group breached its duty of care to Mr. Hodson by failing to direct him not to attend the incident, or by failing to take other reasonable steps to prevent harm. Thirdly, the Court had to determine whether the provisions of section 32 of the *Civil Liability Act 2002* (NSW), which impose specific requirements for establishing liability for psychiatric injury, were satisfied. Finally, the Court had to evaluate the weight and reliability of the expert evidence presented by Mr. Hodson regarding causation.

The Court of Appeal found that the expert evidence relied upon by Mr. Hodson was of little to no weight in establishing causation. This was because the assumptions upon which the experts based their opinions were not proven on the facts, and the facts as proved were dissimilar from those assumptions. Consequently, the Court concluded that Mr. Hodson had failed to establish that his exposure to the incident, as it actually occurred, caused his psychiatric conditions. Furthermore, the Court found that the Lederer Group had not breached its duty of care.

Accordingly, the appeal and cross-appeal were each allowed with costs.

Orders

Orders of the court

1. Appeal and cross-appeal each be allowed with 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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