In December 2001 Mr Hubbard suffered minor burns whilst working
for Mr Wells (a plumbing subcontractor) on a construction site in
Sydney. Mr Hubbard sought damages from Mr Wells who joined his
business liability insurer, Wesfarmers Federation Insurance
(Wesfarmers) to proceedings. The business
liability policy covered liability to independent contractors but
not employees. At first instance, the Court held that Mr Hubbard
was a subcontractor and Wesfarmers was liable under the policy and
consequently Wesfarmers was ordered to pay the judgment sum and Mr
Well's costs.
Wesfarmers appealed on the basis that Mr Hubbard was in fact an
employee and not a subcontractor and the costs clause in the policy
did not cover Mr Well's costs. The NSW Court of Appeal
unanimously agreed that Mr Hubbard was in fact an employee and the
judgment for Mr Hubbard was set aside.
