Value Constructions Pty Ltd v Badra

Case [2024] NSWCA 181


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Value Constructions Pty Ltd v Badra [2024] NSWCA 181
Hearing dates: 24 April 2024
Date of orders: 31 July 2024
Decision date: 31 July 2024
Before: Leeming JA at [1];
Kirk JA at [2];
Griffiths AJA at [79]
Decision:

(1) Appeal upheld in part.

(2) The orders made by Cavanagh J on 12 December 2023 are varied as follows:

(a) In order 1, the judgment sum is $839,869.04;

(b) In order 2, the judgment sum is $619,925.00;

(c) In order 3, the judgment sum is $309,562.50.

(3) If the parties do not agree on appropriate orders as to costs then:

(a) The appellant may file and serve written submissions of up to 3 pages on the issue, along with any evidence relied on, by 5pm on 7 August 2024.

(b) The respondents may file and serve written submissions of up to 3 pages on the issue, along with any evidence relied on, by 5pm on 13 August 2024.

(c) The appellant may file and serve any reply submissions, of no more than 2 pages, by 5pm on 16 August 2024.

Catchwords:

NEGLIGENCE — Workplace injury — Where worker fell in a stormwater drain on construction site — Whether accident occurred as alleged — Competing testimony of witnesses — Whether director of appellant knew or ought to have know that the drain was uncovered — Director knew the drain was uncovered

NEGLIGENCE — Duty of care — Duty of occupier to employee of subcontractor — Whether it was reasonable for occupier to assume that that a competent contractor would have addressed the risk — Occupier owes a duty to use reasonable care to avoid physical injury to individuals on site — Occupier was negligent

NEGLIGENCE — CLA s 5D — Whether the negligence was a necessary condition of the occurrence of the harm — Proximate cause irrelevant

WORKERS COMPENSATION — Common law remedies — Workers Compensation Act 1987 (NSW) ss 151A and 151Z — Damages payable by a non-employer — Proper operation of s 151Z(2) — Consensual adjustment of figures

Legislation Cited:

Civil Liability Act 2002 (NSW), s 5D

Workers Compensation Act 1987 (NSW) ss 151A, 151Z

Workers Compensation Regulation 2016 (NSW), Sch 7

Cases Cited:

A V Jennings Ltd v Thomas [2004] NSWCA 309

Amaca Pty Ltd v Booth [2011] HCA 53; (2011) 246 CLR 36

Archer v Hall [1967] 1 NSWR 107

Australian Safeway Stores Pty Ltd v Zaluzna [1987] HCA 7; (1987) 162 CLR 479

Badra v Value Constructions Pty Ltd [2023] NSWSC 1307

Badra v Value Constructions Pty Ltd (No 2) [2023] NSWSC 1655

Christmas v General Cleaning Contractors Ltd [1952] 1 KB 141

Felk Industries Pty Limited v Mallet [2005] NSWCA 111

General Cleaning Contractors Ltd v Christmas [1953] AC 180

Gould v Vaggelas [1984] HCA 68; (1984) 157 CLR 215

Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd [2013] HCA 10; (2013) 247 CLR 613

Leighton Contractors Pty…

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AGLC
Value Constructions Pty Ltd v Badra [2024] NSWCA 181
Case
[2024] NSWCA 181
Decision Date

CaseChat Overview and Summary

The appeal in *Value Constructions Pty Ltd v Badra* concerned a workplace injury sustained by a worker who fell into an uncovered stormwater drain on a construction site. The primary dispute revolved around whether the accident occurred as alleged and whether the director of the appellant, Value Constructions Pty Ltd, knew or ought to have known that the drain was uncovered. The case was heard in the Court of Appeal of New South Wales by Leeming and Kirk JJA and Griffiths AJA.

The court was required to determine several legal issues, including whether Value Constructions Pty Ltd owed a duty of care to the employee of a subcontractor, and if so, whether it breached that duty. Specifically, the court considered whether it was reasonable for the occupier to assume that a competent contractor would have addressed the risk of an uncovered drain. Furthermore, the court had to assess whether the negligence of Value Constructions Pty Ltd was a necessary condition of the occurrence of the harm, as contemplated by section 5D of the Civil Liability Act 2002 (NSW), and the proper operation of section 151Z(2) of the Workers Compensation Act 1987 (NSW) concerning damages payable by a non-employer.

The Court of Appeal found that the occupier owed a duty to use reasonable care to avoid physical injury to individuals on the site and that Value Constructions Pty Ltd was negligent in its duty of care. The court determined that the director knew the drain was uncovered, establishing the necessary causal link for liability under section 5D of the Civil Liability Act. The court also addressed the application of section 151Z(2) of the Workers Compensation Act, indicating that consensual adjustments of figures were permissible.

The appeal was upheld in part, and the orders made by Cavanagh J on 12 December 2023 were varied. The judgment sums were adjusted to $839,869.04, $619,925.00, and $309,562.50 for the respective orders. The court also set out a timetable for parties to file submissions regarding costs if they could not reach an agreement.

Orders

Orders of the court

(1) Appeal upheld in part.

(2) The orders made by Cavanagh J on 12 December 2023 are varied as follows:

(a) In order 1, the judgment sum is $839,869.04;

(b) In order 2, the judgment sum is $619,925.00;

(c) In order 3, the judgment sum is $309,562.50.

(3) If the parties do not agree on appropriate orders as to costs then:

(a) The appellant may file and serve written submissions of up to 3 pages on the issue, along with any evidence relied on, by 5pm on 7 August 2024.

(b) The respondents may file and serve written submissions of up to 3 pages on the issue, along with any evidence relied on, by 5pm on 13 August 2024.

(c) The appellant may file and serve any reply submissions, of no more than 2 pages, by 5pm on 16 August 2024.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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