The Workers Rehabilitation and Compensation Corporation (Appellant) v JR Engineering Services Pty Ltd, Western Mining Corporation (Olympic Dam Operations) and Jeffrey John Ball (Respondent 3) No. SCGRG 94/970...

This appeal by the Workers Rehabilitation and Compensation Corporation (the Corporation) against the decision of a District Court Judge, pronounced on 15 June 1994, concerns the enforceability of an indemnity agreement between JR Engineering Services Pty Ltd (JRE) and Western Mining Corporation (WMC) in respect of an injury sustained by an employee of JRE, Jeffrey John Ball. The Corporation contends that the indemnity agreement is void under section 119 of the Workers Rehabilitation and Compensation Act 1986, which states that any agreement that purports to exclude, modify or restrict the operation of the Act is void and of no effect. Additionally, the Corporation argues that section 54(4b) of the Act, which restricts the right of recovery by third parties, prevents JRE from recovering from the Corporation under section 105 of the Act. The appeal also questions whether the indemnity agreement is valid and whether JRE can recover from the Corporation an amount equal to the amount paid by it to indemnify WMC. The Court held that the indemnity agreement between JRE and WMC is valid and enforceable, as it does not exclude, modify or restrict the operation of the Act. The Court further held that section 54(4b) does not operate to prevent recovery under a contractual indemnity. The Court allowed the appeal in part, setting aside the orders that required the Corporation to indemnify JRE in respect of its liability to WMC.