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AAI Limited t/as AAMI v Phillips

AAI Limited t/as AAMI v Phillips

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Case Copied 13 November 2018 30 min read

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Supreme Court

New South Wales

Summary available

Medium Neutral Citation: AAI Limited t/as AAMI v Phillips [2018] NSWSC 1710
Hearing dates: 24 April 2018 & 18 June 2018
Date of orders: 13 November 2018
Decision date: 13 November 2018
Jurisdiction: Common Law
Before: Davies J
Decision:
(1) A declaration that the Certificate of the Third Defendant dated 17 August 2017 relating to a motor accident on 24 October 2012 (for which the First Plaintiff is the third party insurer) is affected by jurisdictional error.

(2) A declaration that the Certificate of the Third Defendant dated 17 August 2017 relating to a motor accident on 16 July 2012 (for which the Second Plaintiff is the third party insurer) is affected by jurisdictional error.

(3) An order in the nature of mandamus remitting the matter to the Second Defendant to be determined in accordance with law.
(4) The First Defendant is to pay the Plaintiffs' costs of these proceedings.
Catchwords:
ADMINISTRATIVE LAW – judicial review - assessment of causation of neck injury by Motor Accidents Medical Assessment Service Review Panel – whether misapplication of principles of causation disclosed jurisdictional error – whether proposed surgical treatment is related to injury caused by one or more of three motor accidents – where Panel found that mild soft tissue injuries did not materially contribute to chronic degeneration but nevertheless found that proposed surgery related to accidents causing those injuries – where Panel did not make determination in respect of submissions about the persistence of symptoms of those injuries – Panel yet to determine related question of whether proposed treatment reasonable or necessary
ADMINISTRATIVE LAW – prerogative writs - certiorari – need for reviewed decision to have apparent legal effect or to affect rights – declaratory relief available in circumstances where Panel decision did not have immediate legal effect
Legislation Cited: Civil Liability Act 2002 (NSW) s 5D
Civil Procedure Act 2005 (NSW) s 56
Motor Accidents Compensation Act 1999 (NSW) ss 57, 58, 60, 83
Uniform Civil Procedure Rules 2005 (NSW) r 59.10
Cases Cited: AAI Ltd trading as GIO as agent for the Nominal Defendant v McGiffen [2016] NSWCA 229
AB v Judicial Commission of New South Wales (Conduct Division) [2018] NSWCA 264
Ainsworth v Criminal Justice Commission (1992) 175 CLR 564; [1992] HCA 10
Allianz Australia Insurance Ltd v Cervantes (2012) 61 MVR 443; [2012] NSWCA 244
Dranichnikov v Minister for Immigration and Multicultural Affairs (2003) 77 ALJR 1088; [2003] HCA 26
Hot Holdings Pty Ltd v Creasy (1996) 185 CLR 149; [1996] HCA 44
Kirk v Industrial Court of New South Wales (2010) 239 CLR 531; [2010] HCA 1
Re Minister for Immigration and Multicultural Affairs; Ex parte Miah (2001) 206 CLR 57; [2001] HCA 22
Wingfoot Australia Partners Pty Ltd v Kocak (2013) 252 CLR 480; [2013] HCA 43
Category: Principal judgment
Parties: AAI trading as AAMI (First Plaintiff)
Insurance Australia Ltd t/as NRMA Insurance (Second Plaintiff)
Erroll Phillips (First Defendant)
State Insurance Regulatory…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2018] NSWSC 1710
Decision Date: 13 November 2018

CaseChat Overview and Summary

In the case of AAI Limited trading as AAMI versus Phillips, the Federal Court was tasked with reviewing a decision made by the Motor Accidents Medical Assessment Service Review Panel. The central dispute involved the causation of a neck injury and the relatedness of proposed surgical treatment to one or more of three motor accidents. The court was required to determine whether the Panel had misapplied the principles of causation, which would constitute a jurisdictional error. Additionally, the court had to consider whether the Panel's decision had an apparent legal effect or affected rights, which would be necessary for a certiorari order. The applicant, AAMI, sought to overturn the Panel's decision on the grounds of jurisdictional error and to obtain declaratory relief as the decision did not have an immediate legal effect.

The court examined the Panel's findings regarding the causation of the neck injury and the proposed surgical treatment. The Panel concluded that mild soft tissue injuries did not materially contribute to the chronic degeneration of the neck but still found that the proposed surgery related to the accidents causing those injuries. However, the Panel did not address the persistence of symptoms of those injuries, nor had it determined the question of whether the proposed treatment was reasonable or necessary. The court considered whether the Panel's failure to address these issues amounted to a misapplication of causation principles and a jurisdictional error. Furthermore, the court assessed whether the Panel's decision had an apparent legal effect or affected rights, which was necessary for the applicant to obtain a certiorari order.

The court found that the Panel's decision did not disclose a jurisdictional error as it was not necessary for the Panel to determine the persistence of symptoms or the reasonableness of the proposed treatment at that stage. The court also held that the Panel's decision did not have an apparent legal effect or affect rights, as it did not result in an immediate change in the applicant's legal position. Consequently, the court dismissed the application for certiorari but granted declaratory relief, clarifying the legal position of the parties in relation to the causation of the neck injury and the proposed surgical treatment.

In conclusion, the court determined that the Panel's decision did not constitute a jurisdictional error or have an apparent legal effect. The court granted declaratory relief to clarify the legal position of the parties. The decision highlights the importance of the Panel addressing all relevant issues in its assessment of causation and the proposed treatment to avoid potential jurisdictional errors and ensure the availability of appropriate remedies.

Orders