The State of New South Wales (Government Cleaning Service) v Les Cooper

The State of New South Wales (Government Cleaning Service) appealed to the New South Wales Court of Appeal against a decision of the Workers Compensation Commission concerning a statutory right of indemnity and entitlement to statutory interest. The dispute arose from a workers compensation claim where the appellant sought to recover amounts paid to an injured worker, including interest.

The primary legal issue before the Court of Appeal was whether the appellant was entitled to statutory interest on the amount it had paid to the injured worker under its statutory right of indemnity. This involved determining the proper interpretation of the relevant provisions of the Workers' Compensation Act 1987 (NSW) concerning the calculation and award of interest in such indemnity claims.

The Court of Appeal reasoned that the statutory right of indemnity conferred on an employer who has paid compensation to an injured worker, and who is entitled to recover that amount from a third party, also carries with it an entitlement to statutory interest on that sum. The Court held that the interest was intended to compensate the indemnified employer for the delay in recovering the moneys paid out. The Court allowed the appeal, setting aside the order of the Commission regarding the quantum of interest. The matter was remitted to the trial judge to determine the award of interest according to law, with the appellant to pay the respondent's costs of the appeal, subject to a certificate under the Suitors' Fund Act 1951.