Canute v Comcare

Case [2005] FCA 299


FEDERAL COURT OF AUSTRALIA

Canute v Comcare [2005] FCA 299

ADMINISTRATIVE LAW – workers compensation – claim for additional compensation following making of final award – worker found to suffer chronic adjustment disorder with 10 per cent impairment – whether degree of impairment to be calculated having regard to the Combined Values Chart in Table 14.1 – whether Tribunal erred in law by not finding whether the adjustment disorder was an injury – whether impairments arising from separate injuries to be aggregated using Table 14.1 to calculate whole person impairment. 

Safety, Rehabilitation and Compensation Act 1988 (Cth) s 4, ss 24(1), ss 24(4), ss 24(5), ss 24(7), s 28

Comcare v Mihajlovic (2000) 97 FCR 304 – discussed
Comcare v Roser (2003) 127 FCR 155 – discussed

KENNETH JOHN CANUTE V COMCARE

N 1101 OF 2004

HILL J
1 APRIL 2005
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N1101 OF 2004

BETWEEN:

KENNETH JOHN CANUTE
APPLICANT

AND:

COMCARE
RESPONDENT

JUDGE:

HILL J

DATE OF ORDER:

1 APRIL 2005

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:

  1. The decision of the Administrative Appeals Tribunal dated 21 June 2004 be set aside and the matter be remitted to the Tribunal for further hearing, with or without additional evidence being called.
  2. The respondent is to pay the applicant’s costs of the present application.

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

N1101 OF 2004

BETWEEN:

KENNETH JOHN CANUTE
APPLICANT

AND:

COMCARE
RESPONDENT

JUDGE:

HILL J

DATE:

1 APRIL 2005

PLACE:

SYDNEY

REASONS FOR JUDGMENT

  1. The applicant, Mr Canute, appeals from the decision of the Administrative Appeals Tribunal constituted by senior member, S M Bullock and Dr P D Lynch, member, affirming the decision of Comcare denying to him a further lump sum compensation payment additional to the award he received as a result of a decision of Comcare made on 9 February 2000. 

  2. The application is in the original jurisdiction of the Court, although termed an appeal.  It is an appeal “on”, that is to say, limited to, a question of law. 

  3. Mr Canute worked as a civilian employee with the Department of Defence.  He claimed that during the course of his employment he had suffered injury to his back on two occasions.  He received an award of lump sum compensation in respect of one of his back injuries, as a result of the decision made on 9 February 2000.  The other injury was not the subject of any award and has no relevance to the present appeal.

  4. Mr Canute subsequently claimed “whole person impairment” beyond the award which he had received.  He claimed that he suffered, not merely from the back injury, relating to the aggravation of the displacement of an intervertebral disc-lumbar, but also that arising out of the same incident, he suffered an adjustment disorder resulting in an increase in the degree of permanent impairment he…

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AGLC
Canute v Comcare [2005] FCA 299
Case
[2005] FCA 299
Decision Date

CaseChat Overview and Summary

The case of Canute v Comcare involved a dispute between Mr Canute and Comcare concerning the compensation for injuries sustained by Mr Canute, which were deemed to include both a physical back injury and a psychological condition, potentially chronic adjustment disorder. The matter was heard by the Administrative Appeals Tribunal and subsequently appealed to the Federal Court of Australia.

The central legal issue before the court was whether the Tribunal had appropriately assessed the psychological condition as a separate injury for the purposes of determining compensation under the applicable legislation. Comcare argued that the Tribunal had considered the psychological condition and either rejected it as a separate injury or proceeded to assess permanent impairment without proper consideration. The court was required to determine if the Tribunal had erred in its approach to the assessment of multiple injuries and impairments.

The Federal Court found that the Tribunal had not adequately considered whether Mr Canute's psychological condition constituted a separate injury. The court emphasised the legislative requirement that compensation is payable in respect of injuries, not merely the incidents causing them. The court held that each injury must be considered separately, and the appropriate tables in the relevant guide must be applied correctly to determine whole person impairment. The court noted that where there are multiple injuries, each should be assessed individually, and their impairments calculated separately, unless they arise from a single injury, in which case Table 14.1 would apply.

The court ordered that the decision of the Administrative Appeals Tribunal dated 21 June 2004 be set aside and the matter be remitted for further hearing, with or without additional evidence. The respondent, Comcare, was also ordered to pay the applicant's costs of the present application.

Orders

Orders of the court

1. The decision of the Administrative Appeals Tribunal dated 21 June 2004 be set aside and the matter be remitted to the Tribunal for further hearing, with or without additional evidence being called.

2. The respondent is to pay the applicant’s costs of the present application.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

HILL J
Counsel for Comcare submitted that the Tribunal had not failed to consider whether Mr Canute had suffered chronic adjustment disorder as a separate injury for the purposes of the legislation in addition to the back injury. Rather, it was submitted that the Tribunal had considered the question and either rejected the characterisation of the psychological condition as a separate injury or proceeded directly to making a finding of permanent impairment by applying Table 14.1.Conclusions As Burchett J pointed out in Brennan v Comcare (1994) 50 FCR 555 at 556, the Act provides for compensation to be paid “in respect of the injury”. In Roser, Spender J quotes Burchett J to have said in Brennan, that “for a liability to arise there must, in my view, be an injury and it must result in a permanent impairment. A clear cause and effect relationship between the injury and permanent impairment is posited and required.” While these precise words do not in fact appear in Vol 50 of the Federal Court Reports, what Burchett J is quoted as saying is, with respect, both correct and appropriate. The scheme of the Act is quite clear. Comcare, in reviewing the whole person impairment of an employee (or the Tribunal acting in its place on a review) must first determine whether there has been an injury suffered by that applicant. The inquiry where there has been an injury is not restricted to physical injury. If the Tribunal finds there to have been an injury, the next step is to determine what impairment or impairments, should there be more than one, result from the injury. These must then be calculated, and the percentage value whole person impairment determined by applying the relevant table in the Guide. Where there is more than one injury, each injury is to be considered separately. The percentage impairment or impairments for each injury will be added together to calculate the percentage of whole person impairment. Multiple impairments arising from a single injury, by contrast do not require the addition of percentages but rather, the percentage whole person impairment will be determined by applying Table 14.1. In the simple case, an employee may suffer a single compensable injury. Where that injury results in a single impairment there is no difficulty. However, it may not be so unusual for an employee to suffer a single injury with multiple impairments. An example would be the case where an employee injures his or her back and that injury affects both the ability of the employee to use the back as well as affecting his or her motor functions. Such a case is in fact suggested by the note to the Guide in Table 9.6. In such a case, the Guide requires the application of Table 14.1 to determine the whole person impairment. It does not provide for compensation to be payable resulting from the cause of an incident. It does not segregate injuries into those that are “sequelae” and those which are not. Compensation is payable in respect of injuries. Yet again, an employee may suffer from more than one injury and each injury may give rise to one or more impairments. An example is that suggested by Spender J in Roser. In that case, his honour refers to an exploding grenade which could result in multiple impairments; blindness and loss of use of the lower right arm, entitling the employee to compensation for each of the injuries in question. In such a case, the compensation for each injury will be assessed by reference to the degree of impairment to the whole body flowing from each separate injury. Table 14.1 has, in such a case, no operation.

Ratio Decidendi

Legal Principle Established

Established by: HILL J

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