HLLE isn't contagious, but any fish that is in rough shape like this guy is very prone to any bacteria or parasites present. Did this fish go straight to your tank, or was it quarantined?
When you get a fish from someone, you get all the undesirable stuff in his tank as well. By the looks of this fish, I would guess all was not well in his previous home. I hope the fish didn't bring anything undesirable along with him.