WESTERN SYDNEY REGIONAL ORGANISATION OF COUNCILS GROUP APPRENTICES vSTATRONA PTY LTD t/as RECYCLE AUTO ELECTRICAL; COMMERCIAL UNIONWORKERS COMPENSATION NSW LTD v HANNAFORD [1995] NSWCA 545

WESTERN SYDNEY REGIONAL ORGANISATION OF COUNCILS GROUP APPRENTICES vSTATRONA PTY LTD t/as RECYCLE AUTO ELECTRICAL; COMMERCIAL UNIONWORKERS COMPENSATION NSW LTD v HANNAFORD [1995] NSWCA 545

WSROC was contractually obliged to effect insurance to indemnify Statrona against liability for injuries to apprentices placed with Statrona under the group apprentices scheme. Statrona was not entitled to indemnity from its workers' compensation insurer because the injured apprentice was not in a contract of service or apprenticeship with Statrona. The exclusion clause in the Mercantile Mutual general insurance policy did not apply as the required employment relationship did not exist. Thus, judgment for Statrona against WSROC and Mercantile Mutual, and for Commercial Union against Statrona.

Parties
Appellant/respondent/first Defendant: Western Sydney Regional Organisation of Councils Group Apprentices (WSROC); Respondent/second Defendant/cross Appellant: Statrona Pty Ltd t/as Recycle Auto Electrical; Second Third Party/second Respondent/appellant: Commercial Union Workers' Compensation NSW Ltd; Third Third Party/fourth Respondent/cross Appellee: Mercantile Mutual Insurance (Australia) Pty Ltd; Plaintiff/injured Apprentice: Dean Richard Hannaford
Jurisdiction
Australia
Judgment Date
29 August 1995
Procedural Posture
Appeal / Court of Appeal Decision
Outcome
Appeal No 40745/91 dismissed with costs; Appeal No 40750/91 allowed; Cross Appeal allowed; substitutions and reversals of verdicts and costs orders as detailed in orders.
Legal Topics
Apprenticeship Scheme Liability, Indemnity and Insurance Obligations, Duty of Care to Loaned Workers, Exclusion Clauses in Policies
Workers Compensation Insurance Law Negligence Contract Law Apprenticeship Scheme Liability Indemnity and Insurance Obligations Duty of Care to Loaned Workers Exclusion Clauses in Policies

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Parties

Western Sydney Regional Organisation of Councils Group Apprentices (WSROC)

Appellant/respondent/first Defendant

Statrona Pty Ltd t/as Recycle Auto Electrical

Respondent/second Defendant/cross Appellant

Commercial Union Workers' Compensation NSW Ltd

Second Third Party/second Respondent/appellant

Mercantile Mutual Insurance (Australia) Pty Ltd

Third Third Party/fourth Respondent/cross Appellee

Dean Richard Hannaford

Plaintiff/injured Apprentice

Procedural Posture

Appeal / Court of Appeal Decision

Legal Issues

  1. 1 Whether WSROC was contractually obliged to indemnify Statrona for liability regarding injuries to apprentices under a group apprenticeship scheme
  2. 2 Whether Statrona was entitled to indemnity under its workers' compensation insurance policy for injuries to an apprentice not directly employed under a contract of service with Statrona
  3. 3 Whether the general insurance policy with Mercantile Mutual provided indemnity or was excluded by an employment-related exclusion clause

Ratio Decidendi

WSROC was contractually obliged to effect insurance to indemnify Statrona against liability for injuries to apprentices placed with Statrona under the group apprentices scheme. Statrona was not entitled to indemnity from its workers' compensation insurer because the injured apprentice was not in a contract of service or apprenticeship with Statrona. The exclusion clause in the Mercantile Mutual general insurance policy did not apply as the required employment relationship did not exist. Thus, judgment for Statrona against WSROC and Mercantile Mutual, and for Commercial Union against Statrona.

Court Disposition

Appeal No 40745/91 dismissed with costs; Appeal No 40750/91 allowed; Cross Appeal allowed; substitutions and reversals of verdicts and costs orders as detailed in orders.

Orders

  • Appeal No 40745/91: Appeal dismissed with costs.
  • Appeal No 40750/91: Appeal allowed.