MEC&F Expert Engineers : Mining Giant Company Rio Tinto loses court appeal against asbestosis compensation ruling to dying worker Zorko Zabic

Wednesday, August 12, 2015

Mining Giant Company Rio Tinto loses court appeal against asbestosis compensation ruling to dying worker Zorko Zabic

Zorko Zabic Photo: Former Rio Tinto worker Zorko Zabic with wife Nannay. (Supplied)
 
Updated

The High Court has thrown out an appeal by mining giant Rio Tinto against an asbestos compensation claim, setting a precedent for the Northern Territory.
Zorko Zabic, 74, worked at the Gove alumina refinery in the 1970s cleaning asbestos from pipes, and was diagnosed with mesothelioma after suffering chest pains early last year.

In January, the Supreme Court had ruled Mr Zabic developed the malignant mesothelioma as a result of exposure to asbestos dust and negligence by the mine operators, Alcan Gove, which has since been bought by mining giant Rio Tinto.

But the court ruled against the claim because the symptoms emerged after the Workers Rehabilitation and Compensation Act, which prevents such compensation claims being made in the courts after 1987.

This was overturned by the NT Court of Appeal in March.
Our deepest sympathies remain with Mr Zabic and his family... we accept the decision of the High Court, and whilst disappointed with the outcome, are grateful that the matter has now been resolved for all involved.
Rio Tinto, from a statement issued after the High Court appeal rejection

"The appellant sustained an injury of the kind defined in the act during and following his inhalation of asbestos fibres," the Court of Appeal ruling said.
"That damage inevitably and inexorably led to the onset of malignant mesothelioma."

In rejecting Rio Tinto's latest challenge, the High Court has upheld the Court of Appeal decision.

High Court sets precedent

The arguments submitted to the High Court centred on whether the injuries suffered by Mr Zabic occurred before 1987, when the Workers Rehabilitation and Compensation Act started.

Rio Tinto argued the claim for damage should be covered by the statutory workers' compensation scheme, rather than through common law.
In submissions, Rio Tinto argued that mesothelioma was not contracted the moment the fibres entered the lungs.

"The decision of the NT Court of Appeal was made in error," Rio Tinto's submission said.

"As at 1 January 1987 [Mr Zabic] had suffered some cellular changes - but these were dormant and were likely to remain dormant."
"All that had accrued as at 1 January 1987 was a risk that Mr Zabic would contract mesothelioma."

Mesothelioma symptoms often emerge many years after asbestos fibres enter the lungs.

Irrespective of the High Court result, Rio Tinto was required to pay Mr Zabic $425,000 in compensation.

'Disappointed with the outcome': Rio Tinto

In a statement issued shortly after the court's decision, Rio Tinto said "our deepest sympathies remain with Mr Zabic and his family".

"We accept the decision of the High Court, and whilst disappointed with the outcome, are grateful that the matter has now been resolved for all involved. We will wait to review the detailed judgement of the High Court to understand the reasoning behind the decision," the statement reads.
"Our deepest sympathies remain with Mr Zabic and his family.


 
  Photo: Zorko Zabic, pictured working at the Gove alumina refinery, is now battling mesothelioma. (Supplied)
 

"This case was not about trying to deny Mr Zabic's ability to access compensation, as he has always been able to seek compensation through the Northern Territory workers compensation scheme.

"The reason we pursued this matter was simply to confirm what has been widely understood to be the correct application of the relevant Northern Territory legislation, that claims such as Mr Zabic's should be made under the statutory workers compensation scheme rather than the common law."

A 'victory for humanity'

Roger Singh from Shine Lawyers, who represented Mr Zabic, said the court decision would have widespread implications in the NT.

"Today's decision is a win for workers, a win for their families and a win for humanity," Mr Singh said.

"This decision will pave the way for the many asbestos victims in the Northern Territory who have previously been denied justice to come forward and seek redress for themselves and their families," he said.

He said workers in the NT injured prior to January 1987 would now be allowed to use common law to get fair and reasonable entitlements and compensation, without having to rely only on the existing workers' compensation scheme.