Hypothetical by Manny Wood published in the Coffs Coast Advocate on 2 May 2020.

Caitlin and her de facto partner, Tom, were employed as job recruiters by their family company. They worked from home and had two dependent children.

Unfortunately, Caitlin fell victim to paranoid delusions and was convinced that Tom was conspiring with another agency to take her clients and undermine her career. She also suspected him of spying on her and recording their conversations.

Driven by her paranoia, Caitlin sadly murdered Tom but was later found not guilty on grounds of insanity.

The dependent children’s guardian pursued a claim for death benefits under the Workers Compensation legislation arguing that their father’s death arose during the course of his employment.

The insurer of the family company denied liability.

The Workers Compensation Commission found that the death benefits claim should be accepted on the basis that Tom’s death arose out of, or during the course of, his employment and that his employment was a substantial contributing factor to his death.

The insurer appealed to the NSW Court of Appeal. The Court found that the fatal attack on Tom eventuated as a result of a hostile work environment created by Caitlin, who also happened to be his co-worker.

The Court held domestic violence between couples working from home in the same business would not ordinarily attract liability on the part of the employer, due to the violence having no connection with the work conditions of either party. However, this was not the case in this instance, as the facts demonstrated a direct connection between Caitlin’s delusions, Tom’s employment and his death.

The insurer’s appeal was ultimately dismissed and the insurer was ordered to pay the death benefit into trust for the children and to pay their guardian’s substantial legal costs.

If you would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.