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[2018] NSWCA 227
Court of Appeal (NSW)
2018-08-06
Beazley P, Sackar J
Original judgment source is linked above.
Introduction
The Act
The Trust Deed
The Agreement
Mr Talifero's Claim
The Procedure
The Appeal
Endnotes
"(1) A trustee may apply to the Court for an opinion advice or direction on any question respecting the management or administration of the trust property, or respecting the interpretation of the trust instrument. … (10) Any person who claims that the person's rights as beneficiary will be prejudiced by the conveyance or distribution may within such time as may be prescribed by rules of court, or as may be fixed by the Court, apply to the Court for such order or directions as the circumstances may require, and during such time and while the application is pending, the trustee shall abstain from making the conveyance or distribution." 53. See Digest 9.2.51.pr. 54. See Digest 9.2.2.pr 55. See Digest 9.2.11.2. 56. See Fairchild v Glenhaven Funeral Services Ltd [2002] 3 All ER 305 at [160].
Amendments 11 October 2018 - [151] "invisible" amended to read "indivisible" 25 October 2018 - Typographical amendments to: Headnote, holding (i), [73], [79], [90], [107], [124] DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 25 October 2018
Talifero
Asbestos Injuries Compensation Fund Limited as Trustee for the Asbestos Injuries Compensation Fund
257 CLR 1; [2015] HCA 33 Asbestos Injuries Compensation Fund Ltd [2011] NSWSC 97 Asbestos Injuries Compensation Fund Limited as Trustee for the Asbestos Injuries Compensation Fund [2018] NSWSC 589 Bolton Metropolitan Borough Council v Municipal Mutual Insurance Ltd [2006] 1 WLR 1492 Chamberlain v Deputy Commissioner of Taxation (1988) 164 CLR 502; [1988] HCA 21 Fairchild v Glenhaven Funeral Services Ltd [2002] 3 All ER 305 Fortress Credit Corporation (Australia) II Pty Ltd v Fletcher & Barnet (as liquidators of Octaviar Administration Pty Ltd (In Liq) & Ors (2015) 89 NSWLR 110; [2015] NSWCA 85 Harradine v Cockatoo Dockyard [2008] NSWDDT 8 Kelly v The Queen (2004) 218 CLR 216; [2004] HCA 12 Orica Ltd v CGU Insurance Ltd (2003) 59 NSWLR 14; [2003] NSWCA 331 Pilbara Infrastructure Pty Ltd v Australian Competition Tribunal (2012) 246 CLR 379; [2012] HCA 36 Ross v Meggitt Overseas Ltd (1999) 18 NSWCCR 324 Sienkiewicz v Greif (UK) Ltd [2011] 2 AC 229; [2011] UKSC 10 Stevenson v James Hardie & Co Pty Ltd (1997) 15 NSWCCR 568 Talifero v Amaca Pty Ltd [2017] NSWDDT 14 Tomlinson v Ramsay Food Processing Pty Ltd (2015) 256 CLR 507; [2015] HCA 28 Witness v Marsden (2000) 49 NSWLR 429; [2000] NSWCA 52 Texts Cited: Health and Safety Executive, Occupational, Domestic and Environmental Mesothelioma Risks in Britain (2009) M Aronson, M Groves and G Weeks, Judicial Review of Administrative Action and Government Liability (6th ed 2017, Lawbook Co) Report of the Special Commission of Inquiry into the Medical Research and Compensation Foundation (September 2004) Category: Principal judgment Parties: Anthony David Talifero (Appellant) Asbestos Injuries Compensation Fund Limited as Trustee for the Asbestos Injuries Compensation Fund (Respondent) Attorney-General for the State of New South Wales (Intervening) Representation: Counsel: Mr B Walker SC / Mr S Robertson (Appellant) Mr IM Jackman SC / Ms BA Ng (Respondent) Mr MG Sexton SC SG / Ms ES Jones (Attorney-General, NSW)
Solicitors: Segelov Taylor Lawyers (Appellant) Baker McKenzie (Respondent) NSW Crown Solicitor's Office (Attorney-General, NSW) File Number(s): 2018/172078 Decision under appeal Court or tribunal: Supreme Court of New South Wales Jurisdiction: Equity Citation: [2018] NSWSC 589 Date of Decision: 04 May 2018 Before: Sackar J File Number(s): 2018/30145
[This headnote is not to be read as part of the judgment] Mr Francis John Talifero brought proceedings against Amaca Pty Ltd (Amaca) in the Dust Diseases Tribunal of New South Wales (Tribunal) for damages in negligence as a result of contracting mesothelioma through exposure to James Hardie asbestos cement products (Talifero Proceeding). Mr Talifero died of mesothelioma on 16 October 2017. On 11 December 2017, his Estate was awarded damages to the sum of $560,482. Although Mr Talifero was also exposed to asbestos during his employment in the United Kingdom, including through his employment as a stoker in the British Navy, the Tribunal held that this exposure was irrelevant as mesothelioma is an "indivisible" disease. On 29 January 2018, the respondent, Asbestos Injuries Compensation Fund Limited, made an application for judicial advice pursuant to s 55(1) of the James Hardie Former Subsidiaries (Winding up and Administration) Act 2005 (NSW) (Winding Up Act). The respondent sought an order that it would be "justified in not paying so much of the damages award made in the Talifero Proceedings as reflects the extent to which Mr Talifero's exposure to asbestos or asbestos products occurred outside Australia". On 4 May 2018, the primary judge made the order in the terms sought. The respondent's application for judicial advice did not join any other party, however, on 8 March 2018, the primary judge granted leave to Amaca and Allianz Australia Insurance Ltd to make submissions. The Attorney-General for New South Wales intervened in the proceedings pursuant to s 58 of the Winding Up Act. The appellant, the Executor of Mr Talifero's Estate, was not joined as a party to the application for judicial advice. The primary judge's decision depended on the construction of three inter-related instruments that comprised a scheme to compensate victims of asbestos-related diseases: the Winding Up Act, the Asbestos Injuries Compensation Fund Amended and Restated Deed dated 14 December 2006 (Trust Deed) and the Amended and Restated Final Funding Agreement dated 21 November 2006 (Final Funding Agreement). The issue on appeal was whether the primary judge erred in failing to find that the whole of the claim made in the Talifero Proceeding was a "Proven Claim" that the respondent was obliged to pay under the Final Funding Agreement and thus erred in giving the judicial advice proposed by the respondent. Leave to appeal was granted and the appeal was allowed. Sackville AJA (Beazley P agreeing) held: (i) A non-party requires leave to appeal from a judgment or order under s 101(1)(a) of the Supreme Court Act 1970 (NSW) and will have standing to seek leave if he or she is "aggrieved" or is "sufficiently interested" in the judgment or order: [19]. Fortress Credit Corporation (Australia) II Pty Ltd v Fletcher & Barnet (as liquidators of Octaviar Administration Pty Ltd (In Liq) & Ors [2015] NSWCA 85, Witness v Marsden [2000] NSWCA 52, referred to. Sackville AJA (Beazley P and Emmett AJA agreeing) held: (ii) The appellant was "aggrieved" by the orders made by the primary judge and, in any event, clearly had a sufficient interest in challenging them. It was therefore appropriate to permit the appellant to apply for leave to appeal: [20], [159]. Sackville AJA (Beazley P agreeing) held: (iii) A claim falls within the definition of "payable liability" in the Winding Up Act in so far as it is a claim founded on exposure to asbestos in Australia. Mr Talifero's "claim" was that propounded in the Talifero Proceeding, which was wholly founded on his exposure to asbestos in Australia. The provisions of the Winding Up Act therefore authorised the respondent to pay the whole of the judgment debt to the appellant: [105] - [113]. Ross v Meggitt Overseas Ltd (1999) 18 NSWCCR 324, referred to. (iv) Proviso (B) to the definition of "Personal Asbestos Claim" in the Final Funding Agreement (to which the definition of "Proven Claim" refers) is not to be construed as a direction to the court or Tribunal which determines the claim for damages. Such a claim must be determined in accordance with the common law and any legislation modifying the common law: [123]. Chamberlain v Deputy Commissioner of Taxation (1988) 164 CLR 502; [1988] HCA 21; Tomlinson v Ramsay Food Processing Pty Ltd (2015) 256 CLR 507; [2015] HCA 28, referred to. (v) The better construction of the proviso to the definition of "Personal Asbestos Claim", as applied to cl 4.2(d) of the Final Funding Agreement, is that each element refers to the claimant's exposure to asbestos alleged in his or her claim for personal injury damages and not to the claimant's actual exposure to asbestos: [124]. (vi) Accordingly, as Mr Talifero's claim in the Tribunal was a claim for damages arising solely from exposure to asbestos in Australia, it satisfied the definition of "Proven Claim" as set out in the Final Funding Agreement, notwithstanding his actual exposure to asbestos in the United Kingdom. The respondent was therefore obligated to pay the entire judgment debt pursuant to cl 4.2(d): [121] - [127]. Emmett AJA held: (vii) The provisions of the Trust Deed and Final Funding Agreement call for an inquiry by the respondent as to whether Mr Talifero inhaled the fibre that caused his mesothelioma in Australia or outside Australia. If Mr Talifero inhaled the fibre that caused his mesothelioma in Australia, he is entitled to the full amount of the award made by the Tribunal. On the other hand, if Mr Talifero inhaled the fibre that caused his mesothelioma before he came to Australia, he would not be entitled to any part of the award made by the Tribunal: [164] - [165]. (viii) The primary judge erred in concluding that the respondent would be justified in not paying so much of the damages award made by the Tribunal as reflects the extent to which Mr Talifero's exposure to asbestos or asbestos products occurred outside Australia, in so far as it would involve paying a proportion between nil and 100% of the Tribunal's award: [167].
[2012] HCA 36
(2015) 257 CLR 1
(1988) 164 CLR 502
(2015) 89 NSWLR 110
(2004) 218 CLR 216
(2003) 59 NSWLR 14
(2012) 246 CLR 379
(1999) 18 NSWCCR 324
(1997) 15 NSWCCR 568
(2015) 256 CLR 507
(2000) 49 NSWLR 429