BVFM and Military Rehabilitation and Compensation Commission (Compensation)

This matter concerned an application for compensation by BVFM against the Military Rehabilitation and Compensation Commission. The dispute centred on whether a medical condition, which led to an episode of self-harm, was a compensable condition under the relevant legislation. The Administrative Appeals Tribunal (AAT) was required to determine the applicant's entitlement to compensation.

The primary legal issues before the Tribunal were whether the applicant's medical condition and subsequent self-harm arose out of or in the course of her employment as a cadet at the Australian Defence Force Academy (ADFA), and whether her conduct, which allegedly led to the condition, precluded her from receiving compensation. The Tribunal also considered the credibility of the applicant's evidence and the reliability of medical notes in assessing the circumstances surrounding her condition.

The Tribunal found that the applicant had breached ADFA standing orders regarding fraternisation with staff, engaging in a series of relationships with more senior officers. While acknowledging that a person is not automatically precluded from compensation due to misconduct, the Tribunal reasoned that the applicant's conduct directly caused an increase in her underlying maladaptive personality structure, which in turn led to the self-harm episode. The Tribunal concluded that her employment did not cause the events to unfold, but rather provided the setting for them.

Consequently, the Tribunal affirmed the decision denying the applicant's claim for compensation.