Tempo Services Ltd v State of NSW

Tempo Services Ltd (Tempo) and the State of New South Wales (NSW) were the parties involved in this appeal before the New South Wales Court of Appeal. The dispute concerned the interpretation of an indemnity clause within a contract for services. Specifically, the clause sought to indemnify NSW against claims "arising out of or in connection with or caused by" the performance of services by Tempo. The central issue was whether an injury sustained by a third party, a contractor's employee, fell within the scope of this indemnity, given the relationship between the performance of Tempo's services and the injury.

The Court of Appeal was required to determine the proper construction of the indemnity clause, particularly the meaning and breadth of the phrase "arising out of or in connection with or caused by." This involved assessing the causal link, if any, between Tempo's contractual obligations and the injury suffered by the contractor's employee. The court had to consider whether the injury was sufficiently connected to Tempo's performance of its services to trigger the indemnity in favour of NSW.

The Court of Appeal, comprising Meagher, Giles, and Hodgson JJA, ultimately dismissed Tempo's application for leave to appeal. The reasoning focused on the interpretation of the indemnity clause, finding that the language used was broad enough to encompass the circumstances of the injury. The court applied principles of contractual construction, emphasizing that the words "arising out of or in connection with" are generally interpreted widely. The connection between Tempo's performance of its services and the injury was found to be sufficient to engage the indemnity. Leave to appeal was dismissed with costs awarded to the State of New South Wales.