Queanbeyan City Council v ACTEW Corporation Ltd & Anor [2011] HCATrans 83

In *Queanbeyan City Council v ACTEW Corporation Ltd & Anor* [2011] HCATrans 83, the High Court of Australia considered an appeal from a decision of the Supreme Court of New South Wales. The dispute concerned the interpretation of a statutory indemnity provision within the *Water Supply Authorities Act 1989* (NSW) and its application to claims brought by ACTEW Corporation Ltd and another party against Queanbeyan City Council.

The central legal issue before the High Court was whether the indemnity provision in section 116 of the *Water Supply Authorities Act 1989* (NSW) extended to cover liability arising from the Council's own negligence. Specifically, the Court had to determine the scope and effect of the indemnity granted to the Council by the Act in circumstances where the Council was alleged to have caused damage to ACTEW's infrastructure.

The High Court, comprising Hayne and Kiefel JJ, analysed the language of section 116 and relevant principles of statutory interpretation. Their Honours concluded that the indemnity provision was not intended to cover liability arising from the Council's own negligence. The Court reasoned that clear and unambiguous language would be required to establish such an indemnity, and the wording of section 116 did not meet this threshold. The statutory indemnity was found to apply only to liabilities incurred by the Council in the performance or exercise, or purported performance or exercise, of its functions under the Act, not to liabilities arising from its own wrongful acts or omissions.

The appeal was allowed, and the orders of the Supreme Court of New South Wales were set aside.