HEADNOTE
[This headnote is not to be read as part of the judgment]
Following a robbery at its premises at Anzac Parade, Kingsford, the South Sydney Junior Rugby League Club ("the Club") contracted with Sermacs Australia Pty Ltd ("Sermacs") to provide security on site. In order to fulfil its contract, in October 2005 Sermacs obtained the services of Mr Gazis from MPS Security Pty Ltd ("MPS") to work as a security guard licensed to carry a gun. Whilst working in the Club Mr Gazis was injured.
The Club had implemented security arrangements which involved stationing an armed guard on the first floor of the premises while money from poker machine takings was transported in boxes on large trolleys by Club employees through to the counting room. On 19 May 2006, when Mr Gazis sought to move one of these trolleys, he lost his grip on the trolley, fell backwards and injured his back.
In May 2009 Mr Gazis commenced proceedings in the District Court against Sermacs and the Club seeking damages in negligence, and later against MPS, his employer, for a workplace injury covered by the Workers Compensation Act 1987 (NSW). Proceedings were transferred to the Supreme Court 18 months later. The claim against Sermacs was settled on the first day of proceedings; however, the Club and MPS maintained their cross-claims against Sermacs for contribution. MPS had gone into liquidation and proceedings with respect to its liability were continued against the Workers Compensation Nominal Insurer. Sermacs had changed its name to Gual Pty Ltd which also subsequently went into liquidation, and proceedings were continued against its insurer HCC Underwriting Agency Pty Ltd ("HCC"). (Because any assessment of liability hinged on the actions of the original defendants, these parties continue to be referred to as MPS and Sermacs in the judgment.)
After trial, Rothman J entered judgment for Mr Gazis against the Club and his employer, apportioning liability between them as to the Club (75%) and the employer (25%), with Sermacs found not liable to contribute. Both the Club and MPS appealed the trial judge's findings with respect to their liability, and in the alternative, challenged the finding in favour of Sermacs, submitting that Sermacs should contribute to any liability they were found to have to Mr Gazis. Additionally, the Club appealed against the award of damages as it related to past and future domestic care and non-economic loss.
The Court (Basten JA, Macfarlan and Simpson JJA agreeing) upheld the appeals, and set aside the judgments in favour of Mr Gazis. Because it concluded that neither was liable to the plaintiff, the other issues did not need to be determined.
In relation to the Club, the Court held:
- The Club owed a duty of care to the plaintiff as the occupier of the premises at which he worked: [17], [73].
- Mr Gazis' employment duties did not extend to moving the trolleys: [44]. The Club supervisors did not know that Mr Gazis engaged in this activity: [71], [72], [112].
Nationwide News Pty Ltd v Naidu (2007) 71 NSWLR 471, considered.
- A duty of care in circumstances where the Club knew or ought to have known that the plaintiff moved trolleys could only have required a direction to desist. The risks attending moving an unladen trolley were sufficiently obvious and quite unlikely to eventuate and hence did not, in the exercise of reasonable care, require such a direction: [89], [102].
Phillis v Daly (1988) 15 NSWLR 65, referred to; Thompson v Woolworths (Qld) Pty Ltd (2005) 221 CLR 234, distinguished.
- The finding of negligence on the part of the Club was set aside: [114].
In relation to MPS:
- As Mr Gazis' employer, MPS owed a non-delegable duty of care to its employee to take reasonable care to avoid exposing him to unnecessary risks of injury. The scope of this duty depended on the nature of Mr Gazis' working environment which was not under the control of MPS. MPS was in breach of its duty of care as it had not taken reasonable steps to investigate the environment in which Mr Gazis worked. Nevertheless, this breach was not causative of the harm suffered by him because the risk would not have been identified on any reasonable inspection: [122]. MPS was found not liable and the judgment against the Workers Compensation Nominal Insurer was set aside: [123].
Czatyrko v Edith Cowan University [2005] HCA 14; 79 ALJR 839, applied.