Watkins, Watkins & Watkins v Lee, Hervey Bay City Council

In the case of Watkins, Watkins & Watkins v Lee, Hervey Bay City Council, the plaintiffs sought a declaration concerning the scope of common law liability cover under a workers' compensation policy. The dispute involved whether the Workers' Compensation Board (the Board) or a private insurer, Municipal Mutual Insurance Ltd, was liable to indemnify the Council for an employee's death caused by its negligence. The court had to decide if the policy limited indemnity to cases where the employer's fault was related to the employment and whether the extension of cover to injuries sustained during a journey between home and work applied to both workers' compensation and common law liability. The court found that the policy's limitations were satisfied without requiring the employer's fault to be related to the employment, and the extension of cover applied to both workers' compensation and common law liability. Consequently, the Board was liable to indemnify the Council, while Municipal Mutual Insurance Ltd was not. The Workers' Compensation Board was ordered to pay the costs of the other parties to the application.