New South Wales v Mannall

The New South Wales Court of Appeal considered a claim by Ms Mannall against her employer, the State of New South Wales, for psychiatric injury allegedly suffered as a result of workplace bullying and harassment. Ms Mannall alleged that her appointment as Team Leader exposed her to victimisation, harassment, humiliation, and abuse by her co-workers, and that her supervisor's actions and inactions contributed to her injury. The State of New South Wales was therefore alleged to be vicariously liable for the harm suffered by Ms Mannall.

The central legal issues before the Court of Appeal were whether the employer breached its duty of care to Ms Mannall by failing to take reasonably practicable steps to prevent the foreseeable risk of psychiatric injury arising from the workplace environment, and whether such a breach caused Ms Mannall's injury. The Court also considered the admissibility of certain business records under section 69(3)(a) of the *Evidence Act 1995* (NSW) and the exercise of discretion under section 135 of that Act.

The Court of Appeal upheld the primary judge's findings, concluding that the risk of psychiatric injury to Ms Mannall was foreseeable and that the employer had failed to implement reasonably practicable preventative measures. The Court found that the evidence supported the conclusion that the employer's inaction, particularly in relation to the supervisor's conduct, contributed to the hostile work environment and the subsequent psychiatric injury. The reliability of Ms Mannall's testimony was accepted, and the admissibility of the business records was affirmed, with no grounds found to exercise discretion to exclude them.

The appeal was dismissed, and the State of New South Wales was ordered to pay Ms Mannall's costs.