South West Helicopters Pty Ltd v Stephenson

In *South West Helicopters Pty Ltd v Stephenson*, the New South Wales Court of Appeal considered appeals arising from a helicopter crash that resulted in the deaths of two employees of Essential Energy. The deceased's families, the Stephensons, brought claims against the helicopter operator, South West Helicopters, for nervous shock. South West Helicopters sought contribution from Essential Energy, the employer of the deceased, and Parkes Shire Council, which was also involved in the incident. The central dispute concerned the extent to which the *Civil Aviation (Carriers’ Liability) Act 1959* (Cth) and its state counterparts regulated claims for psychological injury suffered by non-passengers, and the interaction of these statutory schemes with general law claims for negligence and compensation to relatives.

The Court was required to determine several key legal issues. These included whether the statutory scheme imposed an exclusive liability on the carrier for the death of passengers, thereby barring claims for nervous shock by family members who were not passengers. The Court also had to consider the application of the two-year limitation period prescribed by the *Civil Aviation (Carriers’ Liability) Act 1959* to various claims, including claims for contribution between tortfeasors and claims for compensation to relatives. Furthermore, the Court examined the availability of claims under general law, such as the *Compensation to Relatives Act 1897* (NSW), when the *Civil Aviation (Carriers’ Liability) Act 1959* might otherwise apply, and the principles governing the apportionment of liability and contribution between joint tortfeasors, particularly in the context of workers' compensation recovery under s 151Z of the *Workers Compensation Act 1987* (NSW).

The Court of Appeal allowed the appeal in part, setting aside judgments obtained by the Stephensons against South West Helicopters. It found that the claims for nervous shock by the non-passenger family members were not barred by the *Civil Aviation (Carriers’ Liability) Act 1959* and that such claims could proceed under general law. However, the Court significantly reallocated liability, ordering Parkes Shire Council to pay substantial damages to the Stephenson families for both their compensation to relatives claims and their nervous shock claims. The Court also made orders regarding contribution between South West Helicopters and Parkes Shire Council, and dismissed appeals by Essential Energy.