Victorian Workcover Authority v Esso Australia Ltd

The Victorian WorkCover Authority (VWA) and FAI Workers' Compensation (Vic) Pty Ltd (FAI) appealed to the High Court of Australia against a decision of the Court of Appeal of the Supreme Court of Victoria. The dispute concerned whether VWA and FAI were entitled to recover damages in the nature of interest under section 60(1) of the *Supreme Court Act 1986* (Vic) on amounts they had paid, or were liable to pay, as statutory indemnity to Esso Australia Ltd. Esso Australia Ltd had been found negligent in circumstances that caused injury to an employee, Mr Kazimer Wsol, who was working on its oil platform.

The central legal issue before the High Court was whether a proceeding to establish an employer's or insurer's entitlement to indemnification under section 138 of the *Accident Compensation Act 1985* (Vic) constituted a "proceeding for the recovery of debt or damages" within the meaning of section 60(1) of the *Supreme Court Act 1986* (Vic). The Court of Appeal had held that such proceedings were for the recovery of a statutory indemnity, not for debt or damages, and therefore section 60(1) did not apply.

The High Court allowed the appeal, holding that the reasoning in English decisions concerning the construction of similar legislation was applicable. The Court concluded that section 60(1) should be construed broadly to encompass any proceeding in which a claim for money is made, as distinct from claims for purely declaratory or specific forms of equitable relief. The Court reasoned that the phrase "any proceeding for the recovery of debt or damages" should be understood as a composite expression covering claims for money, and the fact that additional relief, such as a declaration, was sought did not remove the money claim from the operation of section 60(1).

Consequently, the High Court set aside the order of the Court of Appeal and remitted the matter for consideration of any remaining grounds of appeal, consistent with the High Court's reasons. This outcome meant that VWA and FAI were entitled to pursue their claims for interest awarded at trial.