Brown v Comcare

Case [2003] FCA 261


FEDERAL COURT OF AUSTRALIA

Brown v Comcare [2003] FCA 261

WORKERS COMPENSATION – claim for compensation under Safety, Rehabilitation And Compensation Act 1988 (Cth) – applicant completed claim form as well as election form – common law action not sought by applicant – both forms submitted by mistake – assertion by respondent of election by applicant – nature of election – need for specificity and lack of ambiguity – inconsistent rights – applicant not aware of effect of election form – whether applicant made an election within the meaning of s 45(1) of the Act

Safety, Rehabilitation And Compensation Act 1988 (Cth) ss 24, 25, 27, 44, 45

Austral Pacific Group Ltd (in liq) v Airservices Australia (2000) 173 ALR 619 referred to

Commonwealth v Flaviano (1996) 40 NSWLR 199 referred to
WBK Pty Limited v Grogan (1997) 140 FLR 303 cited
Burnett v The Union SS Co of New Zealand Ltd (1936) 36 SR(NSW) 119 cited
Sargent v ASL Developments Ltd (1974) 131 CLR 634 applied
Robertson v Comcare [2002] AATA 96 discussed
Crowe v Comcare Australia (No 2) [2002] FMCA 147 discussed

LEONARD BROWN v COMCARE
N1415 OF 2002

TAMBERLIN J
SYDNEY
28 MARCH 2003

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N1415 OF 2002

BETWEEN:

LEONARD BROWN
APPLICANT

AND:

COMCARE
RESPONDENT

JUDGE:

TAMBERLIN J

DATE OF ORDER:

21 MARCH 2003

WHERE MADE:

SYDNEY

THE COURT DECLARES THAT:

The applicant has not made an election in writing to institute an action against the Commonwealth pursuant to s 45(1) of the Safety, Rehabilitation and Compensation Act 1988.

THE COURT ORDERS THAT:

The respondent pay the applicant’s costs on a solicitor-client basis.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N1415 OF 2002

BETWEEN:

LEONARD BROWN
APPLICANT

AND:

COMCARE
RESPONDENT

JUDGE:

TAMBERLIN J

DATE:

28 MARCH 2003

PLACE:

SYDNEY

REASONS FOR JUDGMENT

  1. On Friday 21 March 2003, I made orders in this matter and I now publish my reasons.

  2. The applicant seeks a declaration that he has not made an election to institute an action against the Commonwealth pursuant to s 45(1) of the Safety, Rehabilitation And Compensation Act 1988 (Cth) (“the Act”).

  3. That section provides:

    “45 Actions for damages – election by employees

    (1) Where:

    (a)compensation is payable under section 24, 25 or 27 in respect of an injury to an employee; and

    (b)the Commonwealth, … would, but for subsection 44(1), be liable for damages for any non-economic loss suffered by the employee as a result of the injury;

    the employee may, at any time before an amount of compensation is paid to the employee under section 24, 25 or 27 in respect of that injury, elect in writing to institute an action or proceeding against the Commonwealth … for damages for that non-economic loss.

    …
    (3) An election is irrevocable.

    (4) In any action … instituted as a result of an…

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AGLC
Brown v Comcare [2003] FCA 261
Case
[2003] FCA 261
Decision Date

CaseChat Overview and Summary

The applicant, Brown, commenced proceedings in the Federal Circuit Court against Comcare, the respondent, seeking compensation for injuries sustained in the course of his employment with the Department of Defence. The dispute centred on the interpretation and effect of an election form mistakenly completed by Brown, which led to a claim for damages being barred under the Safety, Rehabilitation and Compensation Act 1988 (Cth). The central legal issue was whether Brown had made an election within the meaning of s 45(1) of the Act, which would preclude his right to compensation under ss 24, 25 or 27.

The court examined the nature of the election required by the Act and whether Brown's completion of the election form constituted a valid election. It considered the statutory requirement for specificity and the absence of ambiguity in the election form. The court also assessed whether Brown was aware of the effect of the election form when he completed it. Given the importance of the irrevocable nature of the election, the court determined that the form completed by Brown did not clearly and unequivocally demonstrate his intention to elect to sue for damages. The court found that Brown was not aware of the consequences of completing the election form and thus, no valid election had been made.

As a result of the court's reasoning, it held that Brown had not made an election within the meaning of s 45(1) of the Act. The court ordered that Comcare pay the applicant’s costs on a solicitor-client basis.

Orders

Orders of the court

The respondent pay the applicant’s costs on a solicitor-client basis.

Background

Background to the litigation

Section 44 of the Act is a general bar on damages claims by Commonwealth employees. It provides that subject to s 45, an action for damages does not lie against the Commonwealth in respect of an injury sustained by an employee in the course of employment, being an injury in respect of which the Commonwealth and several other entities would, but for that provision, be liable for damages. Section 45 is an exception to that general bar on proceedings for damages. It permits an employee to whom compensation is payable under ss 24, 25 or 27 of the Act to make an election. Those sections provide a statutory scheme of lump sum compensation for permanent impairment, not exceeding $80,000. Once an election is made, no compensation is payable after the date of the election and the election is irrevocable. An action to recover damages in accordance with s 45 may be commenced in any court of competent jurisdiction, with damages limited to $110,000. The election to sue for damages may be made before any determination is made by Comcare to the effect that compensation is payable under those sections. In making such a determination Comcare must have regard to the duration of the impairment, the likelihood of improvement, the rehabilitative treatment taken by the employee for the treatment and other relevant matters.FACTUAL BACKGROUND Although there is some dispute between the parties as to a conversation on 19 September 2001 and a draft letter, the relevant circumstances necessary to determine the election question are not in dispute. From 1997, the applicant was employed by the Department of Defence as a tyre fitter at Holsworthy. He did a lot of heavy repetitive work, changing heavy wheels and tyres on large army trucks. In late 1999, he began to experience pain in both arms, which led to incapacity. He made an application for compensation, which was accepted, and received weekly payments and payments for medical expenses. He later consulted an experienced solicitor, Mr Harrison of Carroll & O’Dea, in compensation matters on 20 April 2001 and was advised to make an application for a lump sum compensation payment under the statutory scheme. Mr Harrison wrote to Comcare on 4 July 2001 foreshadowing a claim for permanent impairment compensation. The letter was sent to the Claims Management Centre of Comcare stating that the applicant was seeking evidence to submit a claim for permanent impairment compensation benefits and requesting copies of medical reports from the Comcare file to avoid medico-legal duplication. Advice was also sought as to the current status of the claim. There was no request in the letter for an election form. On 13 July 2001, Marilyn Valdez, Senior Claims Manager with Comcare, replied by letter which relevantly read:“ ….If your client wish [sic] to make a claim for a permanent impairment payment, please complete Part B of the enclosed ‘Compensation Claim for Permanent Injury’ form and have your treating doctor complete Part C.…If your client’s doctor supports his claim for permanent impairment, Comcare may arranged [sic] a medical examination in order to assess the degree of impairment.An award for permanent impairment carries with it a separate entitlement for Non-Economic Loss. This covers pain and suffering and the loss of amenities of life.A Non-Economic Loss Questionnaire is also enclosed for completion and should be returned with the claim form. …Under section 45 of the Act, your client may elect to sue the Commonwealth, … If your client elects to sue, compensation will not be payable under section 24, 25 or 27 and the maximum amount of damages you can be awarded is $110,000. If your client wish [sic] to sue a copy of the attached Election Form must be returned to Comcare no later than 21 days after the determination of your entitlement under section 24, 25 or 27 of the Act.” (Emphasis added)

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

TAMBERLIN J

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Established by: TAMBERLIN J

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