Comcare v Chambers

Case [2017] FCA 1014


FEDERAL COURT OF AUSTRALIA

Comcare v Chambers [2017] FCA 1014

Appeal from: Chambers v Comcare [2016] AATA 615
File number: NSD 1564 of 2016
Judge: PERRAM J
Date of judgment: 31 August 2017
Catchwords: COMPENSATION – appeal from Administrative Appeals Tribunal – adjustment disorder with depression and anxiety – epileptic and non-epileptic seizures – whether employment contributed to epilepsy to significant degree – whether reasonable administrative action taken in reasonable manner
Legislation:

Administrative Appeals Tribunal Act 1975 (Cth) s 44

Safety, Rehabilitation and Compensation Act 1988 (Cth) ss 5A, 5A(1), 5A(2), 5B(1), 5B(1)(b), 5B(3)

Cases cited:

Amaca Pty Ltd v Booth [2011] HCA 53; (2011) 246 CLR 36

Amaca Pty Ltd v Ellis [2010] HCA 5; (2010) 240 CLR 111

Commonwealth Bank of Australia v Reeve [2012] FCAFC 21; (2012) 199 FCR 463

Minister for Aboriginal Affairs v Peko-Wallsend Ltd [1986] HCA 40; (1986) 162 CLR 24

Minister for Immigration v Li [2013] HCA 18; (2013) 249 CLR 332

Date of hearing: 9 February 2017
Date of last submissions: 1 March 2017
Registry: New South Wales
Division: General Division
National Practice Area: Employment and Industrial Relations
Category: Catchwords
Number of paragraphs: 38
Counsel for the Applicant: Mr M Snell
Solicitor for the Applicant: Lehmann Snell Lawyers
Counsel for the Respondent: Mr L Grey with Mr J Mrsic
Solicitor for the Respondent: Turner Freeman Lawyers

ORDERS

NSD 1564 of 2016
BETWEEN:

COMCARE

Applicant

AND:

JOHN CHAMBERS

Respondent

JUDGE:

PERRAM J

DATE OF ORDER:

31 AUGUST 2017

THE COURT ORDERS THAT:

1.The matter be stood over to Wednesday, 6 September 2017 at 9:30am for a further case management hearing.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

PERRAM J:

1.        Introduction

  1. This is a claim for workers compensation by a Commonwealth public servant under the Safety, Rehabilitation and Compensation Act 1988 (Cth) (‘the Act’). The claim was initially rejected by the Applicant (‘Comcare’). On review, however, it was upheld by the Administrative Appeals Tribunal (‘Tribunal’). From that adverse decision, Comcare now appeals to this Court under s 44 of the Administrative Appeals Tribunal Act 1975 (Cth) (‘the AAT Act’). Under s 44, Comcare is constrained by the need to identify a question, or questions, of law. Mr John Chambers, the Respondent, is an admitted legal practitioner who has had a long career as a lawyer in the Australian Public Service. During the course of that career he has twice been awarded a National Australia Day medal for his work, most recently on Australia Day in 2013. In mid-2014 he took a voluntary redundancy but until then he had been employed by the Australian Securities and Investments Commission (‘ASIC’) since August 1999 in a number of roles including, from 2007, as a senior manager in its Corporations and Corporate Governance, Enforcement branch. It was his team that managed the day-to-day aspects of ASIC’s litigation against the former James Hardie companies which, it is well-known, was hard…

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Details
AGLC
Comcare v Chambers [2017] FCA 1014
Case
[2017] FCA 1014
Decision Date

CaseChat Overview and Summary

Comcare appealed against a decision of the Administrative Appeals Tribunal which held that Mr Chambers' employment had significantly contributed to both his psychological condition and the aggravation of his epilepsy. The Tribunal found that Mr Chambers’ employment with ASIC had substantially contributed to his psychological condition, and that stress from his employment had contributed to the aggravation of his epilepsy. Comcare contended that the Tribunal had erred in finding that his employment had contributed to the aggravation of his epilepsy to a significant degree, and that ASIC had taken reasonable administrative action in a reasonable manner in respect of Mr Chambers’ employment.

The court considered whether the Tribunal had erred in finding that Mr Chambers’ employment had contributed to the aggravation of his epilepsy to a significant degree. The court noted that the definition of 'disease' in the relevant legislation includes an ailment and an aggravation of such an ailment. The court found that the Tribunal had not erred in finding that Mr Chambers’ employment had contributed to the aggravation of his epilepsy to a significant degree as it was sufficient to find for Mr Chambers on this issue. The court also considered whether ASIC had taken reasonable administrative action in a reasonable manner in respect of Mr Chambers’ employment. The court found that the Tribunal had not erred in finding that ASIC had taken reasonable administrative action in a reasonable manner in respect of Mr Chambers’ employment.

The appeal was dismissed, and the matter was stood over for a further case management hearing.

Orders

Orders of the court

1. The matter be stood over to Wednesday, 6 September 2017 at 9:30am for a further case management hearing.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

Beginning in around December 2012, Mr Chambers began to suffer a range of psychological issues which were subsequently diagnosed as being an adjustment disorder with anxiety and depressed mood which it will be convenient to refer to as his ‘psychological condition’. Before the Tribunal it was accepted by Comcare that Mr Chambers’ employment with ASIC had substantially contributed to his psychological condition. The medical evidence also suggested that his psychological condition had itself been exacerbated by the unfortunate onset in Mr Chambers of epilepsy which occurred towards the end of 2013. This was some time after he had been transferred, as it will be recalled, to the non-existent position of Senior Specialist. The existence of that epilepsy took some time to be diagnosed. In the six weeks or so leading up to November 2013, Mr Chambers found himself unable to recall how he came to be where he was or what he was doing. That same month, his wife found him in bed awake but unresponsive (Tribunal’s reasons at [49]). Following hospitalisation he was diagnosed with epilepsy. He returned briefly to work in December 2013 and January 2014 but then stopped working out of concern for his health. As I have already mentioned, he took a voluntary redundancy in June 2014. In 2015, the symptoms of the epilepsy appear to have abated (Tribunal’s reasons at [50]). 2. Mr Chambers’ case, Comcare’s Defence, the Tribunal’s Decision and the Issues on Appeal Mr Chambers’ case in the Tribunal was that his employment at ASIC had significantly contributed to both his psychological condition and his epilepsy. Comcare’s defence to this was twofold. First, it submitted that his employment had not significantly contributed to the onset of his epilepsy (although it was accepted that it had done so in the case of his psychological condition). Secondly, in the case of both conditions, Comcare submitted that ASIC had done no more than engage in ‘reasonable administrative action taken in a reasonable manner’. These various arguments picked up particular parts of the wording of ss 5A(1) and 5B(1) of the Act. So far as the epilepsy argument was concerned, it could not be a disease under s 5B(1) unless it ‘was contributed to, to a significant degree, by the employee’s employment by the Commonwealth…’. The term ‘significant degree’ is defined in the Act in s 5B(3) to mean ‘a degree that is substantially more than material’. So far as administrative action was concerned, assuming both conditions amounted to injuries to which s 5A(1) applied, the closing words of that provision excluded from the concept of an ‘injury’, ‘a disease, injury or aggravation suffered as a result of reasonable administrative action taken in a reasonable manner in respect of the employee’s employment’. The Tribunal concluded that Mr Chambers’ epilepsy had not been caused by his employment but it did accept the evidence of Dr O’Neill that stress can make epileptic seizures more likely to occur and it therefore reasoned that Mr Chambers’ employment had contributed, to a significant degree, to an aggravation of his epilepsy (as opposed to its initial causation). That was sufficient to find for Mr Chambers on this issue because whilst the definition in s 5B(1) of disease includes an ailment (such as epilepsy) it also includes, as here, ‘an aggravation of such an ailment’.

Ratio Decidendi

Legal Principle Established

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