Brooker v Allianz Australia Insurance Limited

The plaintiff, Brooker, brought an action against Allianz Australia Insurance Limited, the defendant, seeking compensation for psychiatric injury following a motor accident. The accident, which involved a tyre blowout causing Brooker to lose control of the vehicle, resulted in no physical injuries. However, Brooker alleged psychiatric harm stemming from the incident. The dispute was heard in the Federal Circuit Court of Australia.

The court was tasked with deciding whether the plaintiff could recover damages for psychiatric injury in the absence of physical injury. The central issue was whether the motor accident was caused by an act or omission of the driver, which would preclude recovery under the applicable legislation. Additionally, the court had to determine the applicability of Part 3 of the Civil Liability Act 2002 to the plaintiff's claim for psychiatric injury, specifically considering the distinctions between injuries arising from fear for one's own safety and injuries arising from fear for the safety of another person.

In dismissing the defendant's motion to strike out or dismiss the pleading, the court held that there was no evidence at the interlocutory stage that the accident was caused by an act or omission of the driver, thus preserving the plaintiff's right to claim. The court also clarified that the plaintiff's claim for psychiatric injury, based on fear for his own safety, was preserved by section 29 of the Civil Liability Act 2002. The court found that the plaintiff's claim, as a bystander case, was governed by section 30 of the same Act.

The court ordered the dismissal of the defendant's motion filed on 20 July 2018 and directed the defendant to pay the plaintiff's costs of the motion.