Wesfarmers v Linfox Australia Pty Ltd

Wesfarmers, as the self-insurer for Liquorland, brought an action against Linfox Australia Pty Ltd, seeking to recover compensation payments made to Ms Zealley for a workplace injury, following the findings in the contribution judgment in Zealley v Liquorland (Aust) Pty Ltd & Anor. The central legal issue was the extent of Linfox's liability for damages and whether the termination of Ms Zealley's employment and subsequent pseudo seizures broke the chain of causation between the accident and her injuries. The court had to determine whether Linfox's liability ended at the point of termination or if the causal chain remained unbroken.

The court found that Ms Zealley's psychological condition and pseudo seizures were causally related to the injuries sustained in the workplace accident, despite the intervening event of her employment termination. The court accepted that the chain of causation was not broken by the termination or the subsequent pseudo seizures. Applying the formula under s 138, the court assessed Factor X at 60 per cent and the amount of damages under Factor A at $1,307,590. The findings in the contribution judgment were binding and applicable, but additional matters specific to this proceeding had to be resolved.

The final orders of the court included a determination that Linfox remained liable for 60 per cent of the total damages assessed under Factor A, amounting to $784,554. This decision clarified the extent of Linfox's liability and affirmed that the causal chain between the accident and Ms Zealley's injuries remained unbroken despite the intervening events.