Tamerji v Rhee

The dispute in *Tamerji v Rhee* concerned the calculation of the amount a worker, who had received workers' compensation from their employer following a motor vehicle accident, was liable to repay to the employer out of damages subsequently recovered from the third party responsible for the injury. The matter came before the Court of Appeal of New South Wales.

The central legal issue before the court was the interpretation of section 151Z(1)(b) of the *Workers Compensation Act 1987* (NSW). Specifically, the court had to determine whether compensation paid to the worker by the employer was only repayable from damages awarded in connection with the same type of loss, or if all compensation paid was repayable from any damages recovered from the third party. The court also considered the effect of section 151Z(4) of the Act, the impact of contributory negligence on the repayment obligation, and the comparison between the conditions of entitlement and quantification of compensation under the *Workers Compensation Act* and the *Motor Accidents Compensation Act 1999* (NSW).

The Court of Appeal applied a literal and purposive construction to section 151Z(1)(b). It reasoned that the provision required the worker to repay to the employer the amount of compensation paid, to the extent that the damages recovered from the third party represented a recovery for the same loss or injury for which compensation had been paid. The court found that the wording of the section did not restrict the repayment to damages awarded for a specific type of loss, but rather focused on the recovery of damages for the injury itself. The court also considered the interplay with section 151Z(4) and the effect of contributory negligence, concluding that these did not alter the fundamental obligation to repay compensation from damages recovered for the injury.

Leave to appeal was granted, but the appeal was ultimately dismissed with costs.