When roadworks go wrong, the legal and financial fallout can be significant. Especially if you’re not clear on who holds the liability.
One recent case involving Leeton Shire Council shows how a routine task could quickly turn into a serious claim. But thanks to protections under a Road Maintenance Council Contract (RMCC), Council wasn’t left footing the bill.
When routine turns risky
For Christopher McWhinnie, it was supposed to be a standard job. All he had to do was deliver and spread gravel for roadworks in Leeton.
So he brought his own truck and followed the system of work that Leeton Shire Council had laid out: stop at the marked spot, raise the tipper, ease into gear, and spread the gravel evenly across the road. All while listening for directions on the radio.
But while raising his truck’s tipper, it struck a high-voltage power line – which then collapsed onto the truck. And Christopher was trapped inside his vehicle for about 90 minutes before the electricity was safely disconnected.
Physically, Christopher emerged unharmed. But he later filed a claim against both his employer and Leeton Shire Council, alleging that the incident caused him serious psychological injury.
The cost of risk – and who pays for it
Christopher claimed that Council failed to identify the risk – because it neglected to:
- Warn him about the overhead powerlines
- Provide a visual spotter
- Adjust the work system to account for the hazard
At the time, the works were being carried out under an RMCC. In other words, Leeton Shire Council was delivering the project on behalf of Transport for NSW (TfNSW), not just for itself.
In the end, the case never made it to court as it was settled shortly before trial. But it did trigger a critical question for Council: If the work was part of an RMCC for TfNSW, could Council recover the cost of the settlement?
And the answer was: YES.
So after the settlement, Council lodged a claim with TfNSW under the terms of the RMCC. That claim was successful – and TfNSW, through its insurer, reimbursed the settlement costs in full.
A timely reminder of how RMCC works
This story is a good reminder of what’s at stake for your council – and how RMCC protections can make all the difference when something goes wrong.
A quick rundown about how RMCC works:
- These contracts include insurance protection that covers a council and its sub-contractors for personal injury, illness and property damage claims.
- TfNSW takes out the policy on behalf of all parties involved, but councils must comply with the RMCC terms to be covered.
- If an incident occurs, councils must notify both TfNSW and Statewide Mutual immediately.
Had those protections not been understood and applied, Leeton Shire Council may have been left to carry the full cost of the settlement.
This incident is a sobering example of why it’s critical to:
- Know the scope of your RMCCs
- Identify risks before work begins – including overhead and underground services
- Put clear systems and controls in place to protect workers and the public
- Keep TfNSW and Statewide in the loop if an incident occurs
Remember, the protections are there. But they only work if you understand and apply them.
For more info on your Roads Management or RMCC protections, Read our article about RMCCs and download a copy of our Roads Best Practice Manual – or get in touch with your Regional Risk Manager.