Anderson v Mercy Hospital Mount Lawley

In the matter of Anderson v Mercy Hospital Mount Lawley, the appellant, Ms Anderson, challenged the decision of the District Court of Western Australia which upheld the decision of an arbitrator. Ms Anderson’s claim for workers' compensation was based on her alleged psychiatric condition, which she claimed was significantly contributed to by her employment. The arbitrator, after hearing the evidence, made an adverse credibility finding and found that the history given to the psychiatrists was unreliable. Ms Anderson appealed to the District Court, which upheld the arbitrator's decision. Ms Anderson further appealed to the Supreme Court of Western Australia, contending that the arbitrator and the District Court erred in various respects.

The primary legal issue in this appeal was whether the arbitrator and the District Court erred in failing to consider and determine an argument not put to them by Ms Anderson. Specifically, Ms Anderson argued that the arbitrator should have considered a case based on the evidence of Dr Piirto, a psychiatrist who was not called by either party, even though such a case was not put to the arbitrator. The Court had to determine whether the arbitrator was obliged to consider and determine such an argument, which was not put to the arbitrator by any party, and whether this constituted an error that warranted the appeal to be allowed.

The Supreme Court of Western Australia held that the arbitrator did not err in failing to consider and determine a case not put by any party. The Court reasoned that section 188(2) of the Workers' Compensation and Rehabilitation Act 1981 (WA) was intended to provide greater freedom to arbitrators than is enjoyed by courts of law. However, this does not mean that an arbitrator is obliged to do something that a court would not be required to do. The Court held that the arbitrator was not required to determine a case on a basis not articulated by any party without affording the losing party an opportunity to respond to that case. The Court found that Ms Anderson did not submit to the primary judge, and therefore did not argue before the arbitrator, that the arbitrator erred in failing to consider whether, or find that, Dr Piirto's evidence established that Ms Anderson suffered from a psychiatric condition to which her employment significantly contributed. Therefore, the appeal was dismissed.

In summary, the Supreme Court of Western Australia dismissed the appeal and held that the arbitrator did not err in failing to consider a case not put by any party. The Court found that the arbitrator was not obliged to determine a case on a basis not articulated by any party without affording the losing party an opportunity to respond to that case. The appeal was dismissed with costs.