Common Law Claims A comparative analysis Presented by Tim Ainsworth and Anthony Hillary 13 October 2017
Contents Workers compensation and the common law Restrictions on obtaining common law damages and changes to common law principles Relationship between common law damages and Compensation Recoveries / liability of third parties
Common Law Claims against employers and the unholy trinity (and another one) Before workers compensation the right of a worker to sue an employer for negligence had existed since time immemorial It wasn’t easy to succeed in such a claim though: Contributory negligence a complete defence An employer was not liable for the negligence of a ‘fellow servant’ Freely contracting individuals were assumed to have accepted various risks There were also ‘right to die’ clauses in employment contracts
The State intervenes 1871 – Employer’s Liability Law (Prussia) 1880 – Employer’s Liability Act (England) 1884 – Workers Accident Insurance Law (Prussia) 1894 – Workers Compensation Act (England)
Statutory limitations on pursuing a common law claim Impairment thresholds (15% vs 30%) Treatment of psychological impairment Election Limitation period
Modifications of the common law re liability Unholy trinity exorcised (s79, s80 and s83) Nervous shock excluded (s84) (Non est) lex loci delicti (s87 and s91)
Modifications of the common law re damages Retirement age (s76) Mitigation of damages (s77) Payment of interest (s78)
Procedural effects Compulsory Mediation How this has played out in NSW
Common law damages and workers compensation Cannot retain both compensation and damages Balancing act re: alternatives How is the balance set (NSW v SA) What about costs? What are the non-common law entitlements? How generous is the scheme?
Modified Common law damages and the negligence of third parties Statutory pre-requisites Statutory intervention to true common law assessment Statutory curiosities Potential interaction with general insurance “The illusory recovery”
Questions “Judge a man by his questions rather than his answers” Voltaire
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