State of New South Wales v Tempo Services Ltd

The appeal before the New South Wales Court of Appeal concerned the interpretation of an indemnity clause in a contract between the State of New South Wales and Tempo Services Ltd. The dispute arose from an injury sustained by an employee of Tempo Services Ltd while performing services for the State. Tempo Services Ltd sought to recover damages from the State, and the State sought an indemnity from Tempo Services Ltd under the contract.

The central legal issue before the Court of Appeal was the proper construction of the indemnity clause, specifically the phrase "arising out of or in connection with or caused by" in relation to the performance of services by Tempo Services Ltd and the injury sustained by its employee. The Court was required to determine whether the injury fell within the scope of this indemnity provision.

The Court of Appeal reasoned that the words "arising out of or in connection with or caused by" were broad and intended to cover a wide range of circumstances where the performance of the services was a contributing factor to the injury. Applying this broad construction, the Court found that the injury to the employee did indeed arise out of or in connection with the performance of the services contracted for by Tempo Services Ltd. Consequently, the Court allowed the appeal, set aside the judgment of the primary judge, and entered judgment for the appellant (the State of New South Wales) on its cross-claim for indemnity. The respondent (Tempo Services Ltd) was ordered to pay the appellant's costs.