Gerace v Art Coating [1999] NSWSC 837

Gerace v Art Coating [1999] NSWSC 837

The contract for commutation of compensation was not abandoned or voided by failure to obtain Workcover approval, as the statutory requirement for approval was removed before the contract was avoided, and the defendant was in default as to obtaining approval. Accordingly, the agreement should be specifically performed, subject to necessary application to the Compensation Court and the payment of the agreed sum if commuted.

Parties
Plaintiff: Maurizio Gerace; Defendant: Art Coating Pty Limited
Jurisdiction
Australia
Judgment Date
20 August 2020
Procedural Posture
Application for Specific Performance / Judgment in Equity Division – Hearing Before Master
Outcome
Specific performance granted
Legal Topics
Specific Performance, Commutation of Workers Compensation, Contractual Conditions Precedent and Subsequent, Effect of Legislative Amendment on Contract, Abandonment of Contract
Equity Contracts Workers Compensation Specific Performance Commutation of Workers Compensation Contractual Conditions Precedent and Subsequent Effect of Legislative Amendment on Contract Abandonment of Contract

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Parties

Maurizio Gerace

Plaintiff

Art Coating Pty Limited

Defendant

Procedural Posture

Application for Specific Performance / Judgment in Equity Division – Hearing Before Master

Legal Issues

  1. 1 Whether the agreement to commute compensation rights should be specifically performed
  2. 2 Whether failure to obtain approval of Workcover, given legislative change, voided or voided the contract
  3. 3 Whether the parties had abandoned the agreement

Ratio Decidendi

The contract for commutation of compensation was not abandoned or voided by failure to obtain Workcover approval, as the statutory requirement for approval was removed before the contract was avoided, and the defendant was in default as to obtaining approval. Accordingly, the agreement should be specifically performed, subject to necessary application to the Compensation Court and the payment of the agreed sum if commuted.

Court Disposition

Specific performance granted

Orders

  • Order that the agreement of 3 September 1997 be carried into execution.
  • The defendant do all that may be reasonably required to seek commutation to a lump sum of $130,000 by the Compensation Court.