Value Constructions Pty Ltd v Badra

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.