McGrath v P.M. Electric Pty Ltd & Ors

In the case of McGrath v P.M. Electric Pty Ltd & Ors, the dispute involved a claim for workers' compensation benefits in relation to the death of a worker. The matter was heard in the Workers Compensation Court of New South Wales. The key issues before the court were whether the injury arose out of or in the course of employment, the extent to which the employment was a substantial contributing factor to the injury, and the appropriate method of apportionment of the compensation benefits. Additionally, the court needed to determine the rate and period for interest on any lump sum awarded.

The court began by noting that the first respondent had withdrawn its dispute regarding liability for the worker's death. This left the remaining issues of apportionment and interest to be resolved. The applicant, the second respondent, and the third respondent had already agreed on the apportionment of the compensation benefits. The court then turned to the matter of interest on the lump sum benefit of $810,050. Given that the liability had been undisputed from 6 March 2020 and that there was no dispute regarding dependency, the court awarded interest on the lump sum from that date until 31 May 2022 at a rate of 2.1% per annum.

In its reasoning, the court referred to several precedent cases, including Haidary v Wandella Pet Foods Pty Ltd, Pheeney v Doolan (No 2), Bennett v Jones, Kaur v Thales Underwater Systems Pty Ltd, Zhang v Universe Investments Pty Ltd t/as Kings Seafoods, Kratz as Executrix of the Estate of the Late Owen Beddall v Qantas Airways Limited, and Dynamix Pty Ltd and Burrangong Pet Foods Pty Ltd. These cases provided guidance on the appropriate calculation and application of interest in workers' compensation matters. The court also noted that the lump sum benefit and interest payable to the second and third respondents would be held in trust by the NSW Trustee and Guardian until the beneficiaries attained the age of 18 years, in accordance with section 85(1)(a) of the Workers Compensation Act 1987.