WorkCover Queensland v Amaca Pty Ltd & Anor

The High Court of Australia considered an appeal by WorkCover Queensland against a decision of the Queensland Court of Appeal. The dispute concerned the extent of Amaca Pty Ltd's liability for workers' compensation payments to a former employee, Mr. Shane Michael Thompson, who had contracted an asbestos-related disease. WorkCover Queensland sought to recover from Amaca Pty Ltd, a former employer of Mr. Thompson, certain statutory benefits paid to him.

The central legal issue before the High Court was whether Amaca Pty Ltd was liable to indemnify WorkCover Queensland for the statutory benefits paid to Mr. Thompson, notwithstanding that Amaca Pty Ltd had previously entered into a settlement with Mr. Thompson in a common law claim. Specifically, the court had to determine the proper construction of section 175 of the *Workers' Compensation and Rehabilitation Act 2003* (Qld) and its interaction with the settlement agreement.

The High Court held that section 175 of the *Workers' Compensation and Rehabilitation Act 2003* (Qld) did not operate to preserve WorkCover Queensland's right of indemnity against Amaca Pty Ltd in the circumstances. The court reasoned that the settlement between Mr. Thompson and Amaca Pty Ltd extinguished Amaca Pty Ltd's liability to Mr. Thompson in respect of his injury, and therefore, there was no underlying liability for Amaca Pty Ltd to indemnify WorkCover Queensland against. The settlement was found to be a complete discharge of Amaca Pty Ltd's obligations to Mr. Thompson.

The appeal was dismissed.