Section 151Z (1)(d) of the Workers Compensation Act
1987 (NSW) (WCA) provides an employer with a right to
indemnity from a third party. The indemnity allows the employer or
its insurer to recover compensation payments from a person liable
to pay damages for the same injury for which compensation was paid.
The last decade has seen an increase in the importance of recovery
claims as employers have become increasingly aware of the
entitlement to recovery and the potential effect of successful
recovery on their workers compensation insurance premiums.
Two 2012 decisions of the New South Wales (NSW) Court of Appeal,
United Airlines Inc v Sercel Australia Pty Ltd [2012]
NSWCA 24 (United Airlines) and Izzard v Dunbier Marine Products
Pty Limited [2012] NSWCA 132 (Dunbier Marine), are of
significance to recovery claims. The first has expanded the
potential of employers and workers compensation insurers to claim
recovery from airlines for injury to workers during flight.