Leighton Contractors Pty Ltd v Smith

Leighton Contractors Pty Ltd (Leighton) appealed to the Supreme Court of New South Wales, Court of Appeal, against the dismissal of its claim for indemnity against B&B Constructions Pty Ltd (B&B). The underlying dispute concerned a workplace injury sustained by Mr. Smith, an employee of B&B, who was working on a construction site managed by Leighton. Leighton had been found liable to Mr. Smith for damages arising from this injury.

The primary legal issues before the Court of Appeal were whether Leighton was entitled to an indemnity from B&B in respect of Leighton's liability to Mr. Smith, and whether the trial judge had erred in dismissing Leighton's claim for indemnity. The Court also considered various applications for leave to appeal and appeals by Mr. Smith and Leighton concerning the quantum of damages and the indemnity claim.

The Court of Appeal found that the trial judge had erred in dismissing Leighton's claim for indemnity. Applying principles of contractual indemnity and the implied duty of a sub-contractor to perform work with due care and skill, the Court determined that B&B, as the sub-contractor, owed a duty to Leighton to ensure that the work was carried out safely. Given that Mr. Smith's injury arose from a breach of this duty by B&B, Leighton was entitled to be indemnified by B&B for the damages it was liable to pay Mr. Smith.

Consequently, the Court of Appeal allowed Leighton's appeal against the dismissal of its indemnity claim, declaring that Leighton was entitled to indemnity from B&B. Leighton's other appeals and applications for leave to appeal were dismissed, as were Mr. Smith's applications for leave to appeal.