A south east Queensland council says it is outraged that a fund set up by James Hardie is suing to recover damages paid to a former council worker.

Asbestosis victim Anthony Harry Cannon worked for the Ipswich City Council in the 1970s.

This year he received almost $200,000 compensation from the Asbestos Injuries Compensation Fund set up by James Hardie.

The fund is now trying to recover the money from the council, claiming they failed to protect Mr Cannon.

Ipswich Mayor Paul Pisasale says it is unAustralian.

"How could a council back in the seventies or any builder know that there was dangerous products," he said.

Asbestos compensation lawyer Thady Blundell says the case is not unusual.

"Probably [it is] something we'll see much more often in Queensland given the rise of cases in Queensland in the last few years," he said.

"I'd expect defendants such as James Hardie to seek to shift or spread the liability to assist it in paying out claims."

The Asbestos Injuries Compensation Fund says it is not unusual for legal cross-claims to be made in asbestos damages cases.

The fund was set up by James Hardie and the New South Wales Government in 2007.

The council says their insurers will strongly defend the claim.