Workers Compensation Nominal Insurer v FAW Industries Pty Ltd and Insurance Australia Ltd

The Workers Compensation Nominal Insurer (appellant) appealed to the Supreme Court of New South Wales (Court of Appeal) against a decision of Master Harper concerning indemnity liability. The dispute arose from damages paid for a workplace injury sustained by an employee in the Australian Capital Territory. The employer, FAW Industries Pty Ltd (first respondent), had entered into insurance policies in both New South Wales and the Australian Capital Territory with Insurance Australia Ltd (second respondent). The core of the appeal concerned whether the Master erred in determining the extent of indemnity liability under these policies, particularly in light of legislative limitations.

The Court of Appeal was required to determine whether the Master had erred in finding that the second respondent was liable to indemnify the first respondent in respect of the damages paid to the injured worker. This involved an interpretation of the insurance policies and the application of relevant legislative provisions, specifically section 155 of the *Workers Compensation Act 1987* (NSW), to the circumstances of the injury occurring in the Australian Capital Territory. The central question was the scope of the indemnity provided by the policies and whether it extended to the specific claim made.

The Court of Appeal allowed the appeal, finding that the Master had erred in his determination of indemnity liability. The Court amended the Master's orders, clarifying that indemnity was owed by the second third party (Insurance Australia Ltd) and omitting a further order. The Court's reasoning, though not detailed in the provided text, led to the conclusion that the Master's original orders did not accurately reflect the extent of the insurer's liability. The Court ordered that the second respondent pay the appellant's costs, unless parties sought to be heard on the matter within 21 days.