Comcare v Line

Case [2002] FCA 553


FEDERAL COURT OF AUSTRALIA
Comcare v Line [2002] FCA 553

WORKERS’ COMPENSATION – Commonwealth employees – weekly incapacity payments – calculation – amount able to be earned in “suitable employment” – construction of definition of “suitable employment” – employment terminated by Commonwealth after injury – Commonwealth did not offer re-employment – relevance of earnings from other employment.

Safety, Rehabilitation and Compensation Act 1988 (Cth), ss 4(1), 4(9), 14(1), 19

Wilson v Wilson’s Tile Works Pty Ltd (1960) 104 CLR 328 applied
Pulitano v Telstra Corporation Ltd (1998) 50 ALD 1015 considered
Comcare v Chenhall (1996) 69 FCR 201 followed in part
Telstra Corporation Ltd v Warner (1994) 20 AAR 259 referred to
Federal Commissioner of Taxation v Raptis (1989) 89 ATC 4994 referred to
Dornan v Riordan (1990) 24 FCR 564 referred to
Webb v Repatriation Commission (1998) 51 ALD 575 distinguished
Telstra Corporation Limited v Arden [1994] FCA 524 referred to
Re Minister for Immigration and Multicultural Affairs; Ex parte Durairajasingham (2000) 74 ALJR 405 followed

COMCARE v TRACY LEAH LINE
W 222 OF 2001  

CARR J
2 MAY 2002 
PERTH


IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRLIA DISTRICT REGISTRY

W222 OF 2001

BETWEEN:

COMCARE
APPLICANT

AND:

TRACY LEAH LINE
RESPONDENT

JUDGE:

CARR J

DATE OF ORDER:

2 MAY 2002

WHERE MADE:

PERTH

THE COURT ORDERS THAT:

1.Paragraph 1(b)(ii) of the decision of the Administrative Appeals Tribunal, made on 10 May 2001, be set aside.

2.The matter of the amount of compensation which the respondent is liable to pay, pursuant to s 19 of the Safety, Rehabilitation and Compensation Act 1988 (Cth), to the applicant for each week after the end of the period referred to in paragraph 1(b)(i) of the abovementioned decision until 20 June 1997 be remitted to the Tribunal for decision in accordance with the law.

3.The appeal otherwise be dismissed.

4.The applicant may, within 10 days, file and serve written submissions on the matter of costs.  If it does so, the respondent may, within 10 days of such service, file and serve written submissions in reply on that matter.  If the applicant does not file and serve any such submissions within 10 days, it must pay the respondent’s costs of the application.

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


IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRLIA DISTRICT REGISTRY

W222 OF 2001

BETWEEN:

COMCARE
Applicant

AND:

TRACY LEAH LINE
Respondent

JUDGE:

CARR J

DATE:

2 MAY 2002

PLACE:

PERTH

REASONS FOR JUDGMENT

INTRODUCTION

  1. This is an appeal from a decision of the Administrative Appeals Tribunal allowing the respondent’s claim for compensation under the Safety, Rehabilitation and Compensation Act 1988 (Cth) (“the Act”) and setting aside a decision of 9 July 1998 of a delegate of the applicant. The delegate had affirmed a decision, given on 18 June 1998, of another delegate of the applicant. The appeal involves, among other matters, the construction of certain provisions of the Act which govern the rate of weekly compensation…

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AGLC
Comcare v Line [2002] FCA 553
Case
[2002] FCA 553
Decision Date

CaseChat Overview and Summary

In the case of Comcare v Line, the respondent, who was previously employed in the Royal Australian Air Force, was appealing a decision of the Administrative Appeals Tribunal that allowed her claim for compensation under the Safety, Rehabilitation and Compensation Act 1988 (Cth). The appeal questioned the construction of certain provisions of the Act that determine the rate of weekly compensation payments and the definition of "suitable employment." The respondent enlisted in the RAAF in 1992 and developed stress fractures during recruit training, leading to her discharge on medical grounds in 1995. The respondent subsequently made efforts to find employment but did not secure any stable work after June 1997. Comcare, the appellant, accepted liability for the respondent's injuries and permanent impairment but contested the Tribunal's decision on the amount of compensation payable.

The legal issues at hand involved the interpretation of the Act’s provisions regarding the calculation of weekly compensation payments and the meaning of "suitable employment." Specifically, the court needed to determine the correct weekly compensation amount for the period after the initial lump sum payments and whether the Tribunal correctly assessed the respondent's earning capacity in suitable employment. The court had to consider the statutory language and relevant case law to resolve these questions.

The court found that the Tribunal had erred in its interpretation of the Act, particularly concerning the ongoing weekly compensation payments. The Tribunal had incorrectly applied the statutory formula for calculating the weekly compensation, leading to an underpayment. The court set aside part of the Tribunal's decision and remitted the matter of the weekly compensation amount to the Tribunal for re-evaluation. The court dismissed the appeal in all other respects and ordered that if Comcare did not submit written submissions on costs within ten days, it would be required to pay the respondent's costs of the appeal.

Orders

Orders of the court

1. Paragraph 1(b)(ii) of the decision of the Administrative Appeals Tribunal, made on 10 May 2001, be set aside.

2. The matter of the amount of compensation which the respondent is liable to pay, pursuant to s 19 of the Safety, Rehabilitation and Compensation Act 1988 (Cth), to the applicant for each week after the end of the period referred to in paragraph 1(b)(i) of the abovementioned decision until 20 June 1997 be remitted to the Tribunal for decision in accordance with the law.

3. The appeal otherwise be dismissed.

4. The applicant may, within 10 days, file and serve written submissions on the matter of costs. If it does so, the respondent may, within 10 days of such service, file and serve written submissions in reply on that matter. If the applicant does not file and serve any such submissions within 10 days, it must pay the respondent’s costs of the application.

Note:

Background

Background to the litigation

This is an appeal from a decision of the Administrative Appeals Tribunal allowing the respondent’s claim for compensation under the Safety, Rehabilitation and Compensation Act 1988 (Cth) (“the Act”) and setting aside a decision of 9 July 1998 of a delegate of the applicant. The delegate had affirmed a decision, given on 18 June 1998, of another delegate of the applicant. The appeal involves, among other matters, the construction of certain provisions of the Act which govern the rate of weekly compensation payments, and the definition of “suitable employment”. FACTUAL BACKGROUND The respondent was born on 27 August 1974. On 10 August 1992 she enlisted in the Royal Australian Air Force (“RAAF”). Her first duties were to take part in what is known as “recruit training”. This included marching, running and prolonged standing. After approximately seven weeks of recruit training the respondent development shin pain. She was diagnosed as suffering from stress fractures, a diagnosis which was confirmed by bone scans. She also began to experience severe headaches and dramatic mood swings. From and after the last week or two of recruit training the RAAF restricted the respondent’s duties so that they did not involve any marching, running, or prolonged standing. On 21 July 1993, right and left shin fasciotomies were performed on the respondent under general anaesthetic. The respondent’s symptoms persisted i.e. continuing pain in both legs, severe headaches and dramatic mood swings. She was referred to two psychologists and to a consultant neurologist. Her work in the RAAF was of a clerical nature in an accounts department. She had considerable difficulty managing that work. On 17 September 1995 the respondent was discharged from the RAAF on the ground that she was medically unfit for further service by reason of her physical and mental impairment which were described, respectively, as “bilateral fasciotomies” and “somatoform disorder”. The respondent made considerable efforts to obtain employment. In November 1995 she secured employment in a card shop for a few weeks. She worked as a clerk at Edith Cowan University near Perth from 9 April 1996 to 20 June 1997 when her contract came to an end. She does not appear to have worked since that date. On 6 July 1994 the respondent lodged a claim for compensation with the Department of Defence. The applicant accepted liability to pay compensation to her pursuant to the Act in respect of injuries described as “stress fracture left and right tibiae, left fibula and bilateral compartment syndrome and somatoform disorder”. Later the applicant also accepted liability to pay to the respondent lump sum compensation for permanent impairment and non-economic loss, pursuant to ss 24 and 27 of the Act, in respect of her “lower legs condition” on the basis that she had suffered a “whole person impairment” of 20% as a result of the compensable injury to her legs. On 18 June 1998 a delegate of the applicant made a determination assessing the amount of compensation payable to the respondent by way of incapacity (i.e. weekly) payments pursuant to s 19 of the Act. The delegate determined that the total amount of such compensation payable to the respondent for the period from 18 September 1995 to 24 June 1998 was $16,977.52 (gross) and that thereafter the amount of such compensation payable to the respondent per week was $19.80 (gross). This calculation was based on the delegate’s assessment that the amount which the respondent was then able to earn in “suitable employment” was $477.37 per week.

Evidence

Evidence Before The Court

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Decision

Reasons for decision

CARR J

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Ratio Decidendi

Legal Principle Established

Established by: CARR J

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